| October 2010 |
Dear [contact name],
We are happy to publish the October 2010 issue of the Wells Fargo Merchant News Express. It is designed to provide relevant, up-to-date information on the payment processing needs of our merchant customers like you. The content of this bulletin is accurate as of the time of publication.
The table below lists this month’s contents. In addition to these brief descriptions, you can find more detailed information by clicking the link for each update.
| Update | Merchants affected | Date effective |
| 1. MasterCard Canada implements Canadian Code of Conduct | Merchants that accept MasterCard Canada and Maestro transactions | Immediate |
2. MasterCard CVC2 Validation Program identification requirement |
Merchants that participate in the MasterCard CVC2 Validation Program | October 2010 |
| 3. Visa International operating regulations reduce dispute resolution timeframes | Merchants in the U.S. and Canadian regions that accept Visa cards | October 2010 |
| 4. Accel debit network fee change | Merchants participating in the Accel Advantage program | November 2010 |
Sincerely,
[RM name]
[RM title]
Wells Fargo Merchant Services
1. MasterCard Canada implements Canadian Code of Conduct
Impacts merchants that accept MasterCard Canada and Maestro transactions
Date effective: Immediate
The Canadian Minister of Finance has developed a Code of Conduct for the credit and debit card industry. This Code, which was incorporated into MasterCard Canada’s governing rules and regulations in August 2010, contains several requirements relating to interchange disclosure, including, but not limited to:
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Specific merchant level changes: |
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Merchants must maintain a policy that does not discriminate among customers seeking to make purchases with any MasterCard credit or debit card. |
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General Acquirer Policy Changes: |
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Networks are required to make interchange rates (including rates applicable to international cards used at merchant locations in Canada) easily available on their websites and must also post upcoming changes to these fees. | |
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Acquirers’ statements to merchants are also required to disclose the interchange rates established by the networks. | |
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Network rules must ensure that merchants will receive a minimum of 90 days notice of any fee increases or the introduction of a new fee related to any credit or debit card transactions. | |
2. CVC2 Validation Program identification requirement
Impacts merchants that participate in the MasterCard CVC2 Validation Program
Date effective: October 2010
In 2009, MasterCard introduced a CVC2 Validation Program to merchants in the U.S. region. The program eliminates the need for a merchant to obtain an imprint of a card when the card’s magnetic stripe cannot be read, minimizing the number of merchant chargebacks for transactions deemed “fraudulent” or indicated as having “no cardholder authorization.”
Effective October 15, 2010, MasterCard is enhancing its settlement system to identify merchants participating in the CVC2 Validation Program by reviewing the merchant’s MasterCard ID (MCID) and assigning a transaction level flag. MasterCard will not be able to validate registration, nor will the transaction qualify under the program, when the MCID is not present in a transaction.
Some merchants have already been assigned a MCID for other purposes. When these merchants register for the CVC2 Validation Program, MasterCard will update their MCIDs to indicate program participation. Registered merchants that do not have an existing MCID will be assigned one by MasterCard.
Merchant participation in the CVC2 Validation Program is considered by MasterCard on a case-by-case basis. The factors for consideration include:
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Merchants must be located in the U.S. region |
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Merchants must comply with the Payment Card Industry (PCI) Data Security Standards (DSS) and CVC2 Validation Program requirements |
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Merchants must not have been identified as an “Excessive Chargeback Merchant,” as defined by MasterCard Standards, for the last six months |
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Merchants must have POS terminals that are capable of sending the CVC2 value and receiving the CVC2 response code |
3. Visa International operating regulations reduce dispute resolution timeframes
Impacts merchants in the U.S. and Canadian regions that accept Visa cards
Date effective: October 2010
As of October 16, 2010, procedural changes made to Visa International operating regulations will affect chargeback, re-presentment, arbitration, and compliance disputes. Revisions that will affect merchants include:
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Credit Time Reduction — Merchants must process a credit within five (5) calendar days of issuing a credit receipt to a cardholder. |
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Credit Posting Time Frame — Issuers must post a credit to the cardholder account within five (5) calendar days of receiving a credit receipt from the merchant. |
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Credit Transaction Waiting Period Reduction — Chargebacks in some categories will be accelerated, as the timeframe that an issuer must wait before processing a chargeback is being reduced from 30 to 15 calendar days for specific code categories: |
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Reason Code 30 — Services Not Provided or Merchandise Not Received; | |
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Reason Code 53 — Not as Described or Defective Merchandise; | |
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Reason Code 85 — Credit Not Processed (for all returned merchandise disputes). | |
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Substitute Transaction Receipt Alignment — Transaction receipt requirements will be revised to state that substitute transaction receipts are invalid, except for card-absent transactions. |
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Alignment of Required Fields for Substitute Transaction Receipt — The cardholder's name and card expiration date will no longer be required data elements on copies of receipts. |
4. Accel debit network fee change
Impacts merchants that participate in the Accel Advantage program
Date effective: November 2010
Effective November 1, 2010, the Accel Network’s new POS program, Accel Advantage, will roll out with the interchange rates listed below. In all cases, the 2010 switch fee for these transactions will be $0.0300. For further information, merchants should contact their Wells Fargo Merchant Services Relationship Manager.
| Category | November 2010 interchange rate |
| Tier 1 Non-Supermarket | 55 bps of gross transaction amount + $0.145, capped @ $0.60 |
| Tier 1 Supermarket (MCC 5300, 5411) | $0.240 |
| Tier 1 Petroleum (MCC 5541, 5542) | 75 bps of gross transaction amount + $0.175, capped @ $0.90 |
| Tier 2 Non-Supermarket | 70 bps of gross transaction amount + $0.175, capped @ $0.80 |
| Tier 2 Supermarket (MCC 5300, 5411) | $0.28 |
| Tier 2 Petroleum (MCC 5541, 5542) | 80 bps of gross transaction amount + $0.165, capped @ $0.95 |
| Tier 3 Non-Supermarket | 80 bps of gross transaction amount + $0.225, NO CAP |
| Tier 3 Supermarket (MCC 5300, 5411) | $0.32 |
| Tier 3 Petroleum (MCC 5541, 5542) | 85 bps of gross transaction amount + $0.17, capped @ $0.95 |
| Tier 4 Non-Supermarket | 90 bps of gross transaction amount + $0.225, NO CAP |
| Tier 4 Supermarket (MCC 5300, 5411) | $0.355 |
| Tier 4 Petroleum (MCC 5541, 5542) | 85 bps of gross transaction amount + $0.175, NO CAP |
| QSR (MCC 5814) | 120 bps of gross transaction amount + $0.185, NO CAP |
| PINless - utility | $0.66 |
| PINless - non-utility | 80 bps of gross transaction amount + $0.25, capped @ $1.70 |
Note: There will be no changes to the Accel Debit Network POS interchange rates and/or switch fee.
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