The EMV standard was developed by Europay, Mastercard and Visa to ensure global interoperability for chip-based payment transactions. The key element of EMV involves including dynamic digital data in every transaction. This makes these types of transactions extremely secure and reduces the risk of fraud. Merchants are taking the necessary steps to be ready for the EMV liability shift which will be instituted in the U.S. starting October 1, 2015.
The Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports the gross amount of reportable transactions for the calendar year to the IRS. If you receive a Form 1099-K, you should retain it for your records and may use it to assist you in completing your tax returns. Government entities are subject to rules that require income tax withholding of 28% from certain payments if the payee is not exempt from backup withholding and fails to furnish correct taxpayer identification number (TIN).
Visa added a new monthly Fixed Acquirer Network Fee which may vary each month and is based on the number of merchant locations, Merchant Category Code(MCC), Card Present/Card Not Present Identified and Total Gross Sales Volume per Taxpayer ID, per month.
Address Verification Service (AVS) verifies the credit card billing address of the customer who is paying with a Credit card. The merchant includes an AVS request with the transaction authorization and receives a result code (separate from the authorization response code) that indicates whether the address given by the cardholder matches the address in the issuer’s file. A partial or no-match response may indicate an elevated fraud risk.
First, you need to know the card balance. Ask the customer for the exact balance on the prepaid card before processing the transaction. If the customer doesn’t know the balance and you do not have balance inquiry capabilities, proceed with the transaction. If the balance is sufficient, the transaction should be approved. If the transaction is declined, advise the customer to check the balance by calling the toll-free customer service number or by visiting the website shown on the back of the card. If the purchase amount is greater than the balance on the card, the customer will need to use a second form of payment-cash, check or a credit or debit card- to cover the difference. Lastly, ask the customer to push “credit” on the keypad and sign the receipt. Although it says “debit” on the front of the card, prepaid cards do not come with a PIN, and the purchase will be declined if the customer pushes “debit” and attempts to enter a PIN.
Accepting an EBT card at the point of sale is similar to accepting other electronic payment card types. EBT transactions are PIN-based, just like debit cards. An EBT card is a magnetic-striped plastic card that electronically delivers federal and state-funded food stamps and cash benefits to qualified recipients.
If you’re suspicious of a card or cardholder at anytime during a transaction authorization process, you will need to make a code 10 authorization request. The code 10 authorization request alerts the card issuer to the suspicious activity-without alerting the customer. During code 10 call, you will speak to the card issuer’s special operator, who will provide instructions on any necessary action.
① Keep the card in hand to quickly respond to questions. ② Call your voice authorization center and say "I have a Code 10 Authorization Request." The call will first be received by your merchant bank who may need to ask you for some merchant and/or transaction details. You will then be transferred to the card Issuer and immediately connected to a special operator. A series of yes/no questions will be asked to determine whether you are suspicious of the card or cardholder information. ③ When connected to the special operator, answer all questions calmly and in a normal tone of voice. ④ Follow all operator instructions. (*It will take one or two more business days to verify the card if a foreign card.)
Used to enter a sale transaction after the fact. In most cases, the customer has already left the store. A force transaction is usually done because the merchant couldn’t complete the original authorization: either a referral message response was received from the original transaction or there was a temporary interruption of service and the merchant had to obtain a voice authorization. Following a voice approval, the merchant uses the force to enter the transaction information so it can be settled as part of the settlement batch. Force sale is used only when you have a 6 digit alpha/numeric ‘Valid Authorization’ you have obtained directly from ‘Voice Auth Center’ of the Card Processing Company or your POS device. At any circumstances do not allow customer to operate your POS device.