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New MasterCard and Discover Processing Requirements


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Not sure what effects this will take on WHMCS, but thought I would pass it on in case you guys need the time to fix anything. I do have a few customers that pay with a Mastercard prepaid card.

 

New MasterCard and Discover Processing Requirements

 

Dear Authorize.Net Merchant:

 

MasterCard and Discover are modifying their rules concerning the processing of debit, prepaid and gift cards. This e-mail includes important information about the new requirements and the timelines regarding Authorize.Net's support of the requirements, so please read it thoroughly.

 

MasterCard's rule changes go into effect May 1, 2010, and Discover's rule changes go into effect April 16, 2010. However, Authorize.Net, MasterCard and Discover have worked together to extend these dates for all merchants using Authorize.Net solutions. Our merchants will now have until June 30, 2011, to implement support for the requirements within their systems.

 

What are the requirements?

MasterCard and Discover are requiring that all merchants support the following:

+ Balance response transactions — For prepaid and gift cards, once the card has been used, the remaining account balance will be transmitted along with the authorization response. The remaining balance must be printed on the customer receipt, displayed on the Web page or point-of-sale terminal, or both.

+ Partial authorization transactions — When a customer's transaction amount exceeds the balance available on their debit, prepaid or gift card, instead of declining the transaction, a partial authorization for the amount available to the customer will be returned. This will allow the customer to pay for the remaining amount with another form of payment. This is called a split-tender transaction.

+ Authorization reversals — An authorization reversal is a real-time transaction initiated when the customer decides that they do not want to proceed with the transaction, or if the merchant cannot complete the transaction for any reason. Authorization reversals free up the customer's available balance on their debit, prepaid or gift card.

 

What steps is Authorize.Net taking to support these requirements?

Authorize.Net will be updating our systems over the coming months to support the requirements, but will be dependent on each processor's readiness. For a table of when we anticipate we will support the requirements with each processor, please visit http://www.authorize.net/support/pafaqs/#when.

 

What do I need to do to support the requirements?

The steps that you will need to take to support the requirements depend on how you connect to the payment gateway. For example, if you connect using a shopping cart, point-of-sale device, or other solution, you will need to contact your solution provider to confirm that they will be supporting the requirements. If you connect using a direct integration, you should contact your Web developer for assistance. Please direct your Web developer to http://www.authorize.net/support/pafaqs/#do for information on the changes they will need to make.

 

Do I have to support the requirements?

MasterCard and Discover are requiring all merchants to support the requirements with the exception of merchants that exclusively process transactions via batch uploads, mail order/telephone order (MOTO), or recurring payment transactions. Your Merchant Service Provider (MSP) is ultimately responsible for determining if the requirements apply to your business, so please contact them for assistance in determining if your company is exempt.

 

Once again, these requirements will not be enforced for Authorize.Net merchants until June 30, 2011. However, we wanted to bring them to your attention now so that you have plenty of time to plan for their implementation.

 

For more information on the requirements, including how they affect our value-adding services, please visit our FAQ page at http://www.authorize.net/support/pafaqs/.

 

Thank you for your attention to these important changes and for being an Authorize.Net merchant.

 

Sincerely,

Authorize.Net

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Well, if you happen to be using Authorize.net as your Gateway, you have over a year to meet this requirement.

 

Wonder what others are going to do if you are not using Autherize.net as you payment gateway? One only has days before the requirement becomes mandatory.

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This is only for prepaid cards from the looks of it..

 

Yes prepaid AND Debit Cards as well. I do not think Discover Card has a Debt Card option, in that case it would be for any one that uses a MasterCard Debit Card. I personally have a MasterCard Debit card so I guess the saga continues.

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  • 1 month later...
  • 1 month later...

Might I ask what WHMCS is doing to make this feature available? In the case of Authorize.net, those merchants have extra time, and I would imagine that if worse comes to worse, then a merchant could manually do the reversal (the only requirement for an e-commerce merchant) manually through the Authorize website.

 

As for WHMCS, are plans being made to integrate the new Mastercard/Discover requirements into the software?

Edited by thenspdude
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Last i got from Authnet the other day was that the requirement to show remaining balance on stored balance cards was a best practice but not required here is what I got from then verbatim

Dear Valued Affiliate Reseller:

In late March, we sent an e-mail regarding MasterCard and Discover's modifications to the rules concerning the processing of debit, pre-paid and gift cards for merchants located in the United States.

Recently MasterCard and Discover relaxed the requirements for e-commerce merchants so that support for partial authorizations and balance responses are no longer required, but recommended best practices. All retail and mobile merchants, however, must still support the requirements.

Additionally, all merchants are still required to support authorization reversals for any non-settled authorizations. The deadline for all Authorize.Net merchants to support the requirements is still June 30, 2011.

IMPORTANT: Although no longer a requirement for e-commerce merchants, Authorize.Net intends to support partial authorizations and balance responses for all merchants. We highly recommend that your merchants provide support for these features as they can help decrease declined transactions and potentially increase sales.

You can review the timeline of when we expect support for each processor in our Partial Authorization FAQs at http://www.authorize.net/support/pafaqs#when.

We have also updated our FAQs to reflect the latest changes. If your merchants have questions, please refer them to the FAQs at http://www.authorize.net/support/pafaqs/ for additional information, including integration updates, value-adding services and more.

Thank you for being a valued Authorize.Net Affiliate Reseller.

Sincerely,

Authorize.Net

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Right, but e-commerce merchants must still be able to support reverse transactions in real-time, so long as the transaction hasn't settled. Now, I assume that if Authorize will support this, it'll be a matter of logging into the interface and doing it manually. The question is: will WHMCS support this in an upcoming upgrade, and if so, when?

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  • 4 months later...
Right, but e-commerce merchants must still be able to support reverse transactions in real-time, so long as the transaction hasn't settled. Now, I assume that if Authorize will support this, it'll be a matter of logging into the interface and doing it manually. The question is: will WHMCS support this in an upcoming upgrade, and if so, when?

 

Has there been any new news on this? Will WHMCS be supporting real-time reversals, and the other requirements in an upcoming upgrade?

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