Review of New MerchantE Application

We recently distributed the most up to date versions of both the card-present and card-not present ME application. Since we’ve had questions from a few partners and we’ve recently experienced some missing information on the new application we thought it would be a good idea to review and explain the new items in more detail.  It’s important that the apps you submit are complete and accurate in order for the underwriting process to go smoothly and quickly.  

Page 1, Section 1. Business Information

Two new specific email addresses have been added to the contact section for the direct PCI and chargeback contacts.  If these are completed, communication on issues related to those topics will be sent to the right person whenever they arise.

MCC/SIC code must be entered.  Since most ME applications are ARM related, the MCC will be either 8931, if the merchant’s portfolio is general collections, or 8099, if the merchant’s portfolio is majority medical and they would like to accept HSA and FSA cards. This was added to ensure that accounts are set up correctly to accept the desired card types.  If you are unsure or have questions about other MCC codes, please ask your RM before having the app signed and submitting it.

Page 1, Section 2. Merchant History

Two questions regarding MATCH have been added to accurately reflect merchant history.

Page 2, Section 3. Merchant Bank Account

Bank information has been expanded to include all possible bank accounts to be used with clear separation for deposits, chargebacks and merchant fees.  This section replaces the Checking Account Set Up form, which is no longer required. 

Page 4, Section 5. Payment Options

No changes, but please remember that AMEX is no longer an option for third party collection agencies through ME.

Page 4, Section 7. Product Selection

Some new options are listed that Payscout does not typically offer and the layout has changed.  For a typical boarding scenario, Other Solution would be checked and the name of the intended gateway entered.

Page 5, Section 9. Fee Schedule

BET Table has been added so that pricing is accurate and it follows the new Payscout guidelines.  Please make sure you are using one of the BET tables listed in the pricing email that was sent to you in June.  You can review that message and reference the updated BET tables here.  Please contact your Relationship Manager for this chart if needed.

If you use a Flat Pricing Structure, use BET 4436 and only one rate needs to be entered.  This pricing includes the interchange rates charged by the card brands and so needs to be quoted appropriately to cover those costs.

If you use a Tiered Pricing Structure, use one of the BETs listed in the 46XX series to achieve the mid-qual & non-qual downgrades that you have quoted.  Only the Credit Qualified and Debit Qualified (if that is quoted separately) rates need to be filled in.  The chosen BET table will handle the rest.  Additional rates can be filled in if your merchant wants to see them, but it isn’t required.

If you use a Pass-Through Pricing Structure (IC plus), remember that the rate listed will be added to the interchange pricing that the card brands charge.

The PIN Debit section has been relocated to the bottom of column 1.

Page 6, Section 12. Terms and Conditions

This is a new section that requires separate initials from the “Authorized Signer”.  This section has been added since the Terms and Conditions are no longer attached to the application form and it is important to point out that they are readily available and to have that acknowledged.

Helpful Tip: Expedite Your Approvals with Complete Application Packages

The best way to ensure a fast and efficient approval-time for all your merchant applications is to ensure everything in the application documents is filled in correctly, ensure all signatures have been executed (especially the Personal Guarantor), and provide all supporting documentation. Submitting a correctly completed application the first time saves countless hours for you and your merchants!

Updated Additional Location Form

Lastly, there is a new Additional Location Form, which you can access here. Please use this form for adding Additional Locations to your ME accounts going forward.

 

Please contact your dedicated Relationship Manager directly or at rm@payscout.com for any questions you may have about the application process.  We are here to help!

October 2020 Card Association Updates

In October 2020, a series of updates from Visa and Discover will take place. In this article, we will take a look at some of the key upcoming changes.

Visa

Authorization Response Messages

From October 16 2020, the Field 44.1 (Response Source/ Reason Code) of authorization response messages will be replaced from the current value of a space to the value of “V”. The “V” will be used to indicate that the item was authorized online, either by an issuer or by Visa on behalf of an issuer.

B2B Virtual Payments Program 

The Visa B2B Virtual Payments Program provides online travel agencies/service providers/payment providers with the ability to use virtual accounts. This program currently has a single interchange fee program- the Global B2B Virtual Payments Fee Program. Effective October 1 , Visa will be introducing a new interchange fee program and variable rates, both of which will be dependent on agreements between issuers and program participants. The B2B Virtual Payments Program will also be expanded to include deferred debit* and prepaid card products, and both existing and new interchange fee programs will be eligible for these new card products.

*only issued in Europe.

Consumer Credit Merchant Segment Incentive 

Visa’s Retail 2 Program will be eliminated, and new interchange rates for Insurance, Services, Education, Healthcare, Real Estate, and Advertising will be introduced. In addition, the Services interchange rates will feature a minimum ticket size qualification, meaning that the incentive interchange rate is only available for transactions of $100 or greater. The ticket size qualification for Education, Healthcare, and Real Estate transactions will be for transactions of $500 or greater.

The new ticket size qualifications that are being introduced are designed to benefit higher ticket transactions from these sectors. As a provider specialized in the Education, Healthcare, and Retail sectors, Payscout can help you take advantage of these upcoming interchange rate changes.

Consumer CNP Interchange

The interchange rate name for CPS-qualified card-not-present transactions will also be modified to “Product 1”. Additionally, card-not-present interchange rates will be increased, meaning that transactions made online or over the phone will incur greater fees.

For those in the Accounts Receivable Management (ARM) sector who take payments online or over the phone, these upcoming fee increases mean that now is the best time to implement a convenience fee model, in order to avoid increased costs to your business. As the only fully-compliant solution in the ARM industry, Payscout’s convenience fee model can help businesses offset these fees while ensuring full compliance.

Discover 

PSL- E-Commerce U.S. Consumer Interchange Fee Program

A tolerance level validation test will be introduced to the program and will require the transaction amount at authorization compared to the transaction amount at clearing/settlement to be within the tolerance levels set by Discover. The tolerance levels will be dependent on MCC (Merchant Category Code), and have been outlined in the table below. Note: CNP and e-Commerce partial shipment transactions are exempt from the validation tests.

MCC

Tolerance Level

4121 Taxi Cabs/Limousines

7230 Beauty/Barber Shops

+/- 20%

3000-3350, 4111, 4112, 4131, 4411, 4511 Passenger Transport
3351-3441, 7512,7513, 7519 Car Rentals
3501-3999,7011, 7012 Hotels
5541 Service Stations

5542 Automated Fuel Dispensers

5812 Eating Places/Restaurants

5813 Drinking Places (Alcoholic Beverages)

5814 Fast Food Restaurants

5815-5818 Digital Goods

Exempt

All other MCC’s

+/- 10%

To learn more about how to better prepare your business to take advantage of these upcoming changes, contact sales@payscout.com.

Merchant Best Practices During a Pandemic: Communication is Key

Payscout is proactively monitoring merchant activity during the COVID-19 Pandemic, and is increasing communication with merchants as trends emerge. Here is a high-level overview of the Best Practices associated with merchant activity during this time of crisis. 

 

Communication is Key

In these uncertain times, it’s crucial for merchants to communicate clearly and often with their customers. As an example, if a business has been affected in a way that results in delivery delays outside the normal time frame, the merchant should proactively communicate these delays with their customers, and offer refunds when applicable. At a minimum, increasing communication with your customers — with signage, alerts, or mass emails — is critical. The more open communication merchants can maintain with their customers, the better the outcomes will be.

Review Your Refund Policy

This is an important time to review your refund policy. In particular, one thing to avoid is issuing refunds on cards that were not used for the original transaction. Merchants should never do this. The consumer can still chargeback that transaction, and the likelihood of winning a dispute in this context is very low. On top of having to refund the transactions, merchants can be saddled with arbitration fees — and these issues can ultimately delay the settlement of funds at a time when cash-flow considerations are of the utmost importance. Be proactive: Review and update your refund policy to avoid these issues.

Consider Alternative Payment Channels

Everyone, from your customers and clients, to your employees and vendors, is understandably concerned about their health and exposure to germs or contaminants. The channels through which you’re accepting payments should also be a part of your health and safety considerations. A near-field communication (NFC) or contactless card-reader is an excellent place to start for card-present transactions, and there are many viable alternatives to processing transactions remotely. These range from customer-centric options such as hosted payment pages or online portals, to internal-employee options like virtual terminals for processing phone (MOTO) transactions. 

Safety Applies to People and Payments

Adding these channels is quick and easy with Payscout — and the second-most important consideration after your customer and employee health and safety is the security of data/information in these payment channels — and we’ve got you covered there, as well. Our secure payment solutions are all PCI-compliant, and we have integration options that can significantly reduce the scope of your compliance requirements or take you out of scope for PCI-compliance altogether. This is our expertise, and we’re here to make it easy for you.

If you have any questions about ensuring your business preparedness during COVID-19, contact us at any time at 888-689-6088.

Mastercard Chargeback Monitoring Program Updates

Mastercard has recently updated its Chargeback Monitoring Program. The new updates involve 2 different programs: the Excessive Fraud Merchant (EFM) Compliance Program and the Excessive Chargeback Program (ECP).

The EFM Compliance Program is intended to mitigate fraud on e-commerce transactions, while ECP is targeted at monitoring and reducing excessive chargebacks. Both programs have thresholds for fraud or chargebacks, and merchants are required to remain below these thresholds. When merchants exceed the threshold, they will be entered into a category and will receive a  fine ranging from USD $500 to $200,000, based on how long the merchant is in the program for,and the number of chargebacks received. 

Below are the thresholds for EFM and ECP:

EFM (Excessive Fraud Merchant Compliance Program)

  • The total dollar amount (or local currency equivalent) of fraud-related chargebacks in a given month exceeds USD 50,000.
  • The total number of fraud chargeback basis points (bps) is greater than 50.
  • The percentage of monthly clearing volume processed using 3DS (including Data Only transactions) is less than 10% in nonregulated countries or 50% in regulated countries.

*The EFM Program does not apply to merchants in Germany, Liechtenstein, St. Helena, and Switzerland. 

ECP (Excessive Chargebacks Program)

There are 2 levels in Mastercards’ Excessive Chargeback Program: Excessive Chargeback Merchant (ECM) and High Excessive Chargeback Merchant (HECM). In both cases, merchants are entered into the category when the two conditions listed for each program are met.

ECM

  • The total number of chargebacks is greater than 100.
  • The total number of chargeback basis points is greater than 150. 

High ECM

  • The total number of chargebacks is greater than 300.
  • The total number of chargeback basis points is greater than 300.

What do these changes mean for me? 

To ensure compliance with Mastercard’s Chargeback Monitoring Programs, it is critical that merchants select a payment processing provider that is experienced in monitoring chargebacks and fraud. To learn more, contact sales@payscout.com today.

Interchange Rates are Changing: Now is the Time to Consider a Convenience Fee Solution

As a function of Visa’s forthcoming changes, card-not-present interchange rates will be increased, meaning that transactions made online or over the phone will incur greater fees. For those in the Accounts Receivable Management (ARM) sector who take payments online or over the phone, these upcoming fee increases mean now is the best time to implement a convenience fee model, in order to avoid increased costs to your business. As the only fully-compliant solution in the ARM industry, Payscout’s convenience fee model can help businesses offset these fees while ensuring full compliance. To learn more about how to better prepare your business to take advantage of these upcoming changes, contact sales@payscout.com.

Debit and Credit cards

July 2020 Interchange Updates (Previously April 2020)

Visa has recently announced upcoming changes to their U.S. interchange rates, aimed at better reflecting the value and usage of its products. These changes were previously scheduled for April 2020, but have since been modified to come into effect in July 2020 as a result of the COVID-19 pandemic.

Interchange fees are the fees that are charged whenever a debit or credit card transaction is made, and typics made, wo components: a percentage fee based on the transaction volume (e.g. 1.65%), as well as a flat fee per transaction (e.g. $0.30). These rates vary depending on multiple factors such as the payment method, transaction amount, and business sector. 

Below are the upcoming changes that will come into effect in July 2020.

Downgrade Interchange

Electronic downgrade interchange rates for transactions that fail to qualify for Custom Payment Service (CPS) rates will be eliminated. CPS is a Visa program with requirements for credit and debit transactions, which if met, can result in interchange rates being lowered to the best available rates in the system. 

Currently, transactions which do not qualify for CPS rates are downgraded to Electronic or Standard interchange rates. Under the new changes, the interchange name for downgrade transactions will be renamed to “Non-Qualified”. The interchange rate for Non-Qualified transactions will be increased to 3.15% + $0.10 for consumer credit transactions and 3.15% + $0.20 for small business credit transactions.

Consumer Credit Merchant Segment Incentive Interchange

The Business-to-Business interchange rate on Small Business products will be eliminated as of July 2020. Several other changes will be implemented in October 2020 (to be confirmed), which are detailed later on in this article.

Supermarket Credit

A new Performance Threshold (“Supermarket Performance Threshold 0”) will be added to the top of the existing tiered Supermarket Credit criteria. This new threshold will have a transaction minimum of 350 million transactions, and a volume minimum of $17.5 billion. Additionally, the Supermarket Credit performance thresholds will be extended to Visa Signature and Signature Preferred transactions, and the existing performance threshold interchange rates will be modified. 

Commercial Level 2 Fuel Interchange

Commercial Level 2 Fuel Interchange rates will be increased from 2.05% + $0.10 to 2.20% + $0.10. This interchange rate will apply to all purchasing and corporate cards, and the following Merchant Category Codes (MCC’s): 

  • 4468 (Marinas, Marine Service and Supplies)
  • 5499 (Miscellaneous Food Stores- Convenience Stores and Specialty Markets)
  • 5541 (Service Stations (with or without Ancillary Services)
  • 5542 (Automated Fuel Dispensers)
  • 5983 (Fuel Dealers- Fuel Oil, Wood, Coal and Liquefied Petroleum)

Small Business Tier 5 Spend Qualification

A new spend qualification tier (“Tier 5”) for Small Business Products will be introduced. The new Tier 5 interchange rates will require an annual spending of $250,000 or greater. 

Small Business Interchange

Interchange rates and category names from the Small Business Platform will be modified. The interchange category for Travel Service MCCs will be renamed from Business Electronic to “Business Travel”. Additionally, card-not-present programs will be renamed as “Product 1”, and card present programs will be renamed as “Product 2”. For example, the Business Card-Not-Present program will be renamed as Business Product 1, and Business Retail will be renamed as Business Product 2.

October 2020 Interchange Changes

Furthermore, Visa has an additional series of upcoming changes coming into effect on 17 October 2020. Below are the key changes that will be taking place. 

Consumer Credit Merchant Segment Incentive 

Effective 17 October 2020, the Retail 2 Program will be eliminated, and new interchange rates for Insurance, Services, Education, Healthcare, Real Estate, and Advertising will be introduced. In addition, the Services interchange rates will feature a minimum ticket size qualification, meaning that the incentive interchange rate is only available for transactions of $100 or greater. The ticket size qualification for Education, Healthcare, and Real Estate transactions will be for transactions of $500 or greater

The new ticket size qualifications that are being introduced are designed to benefit higher ticket transactions from these sectors. As a provider specialized in the Education, Healthcare, and Retail sectors, Payscout can help you take advantage of these upcoming interchange rate changes. 

Consumer CNP Interchange

The interchange rate name for CPS-qualified card-not-present transactions will also be modified to “Product 1”. Additionally, card-not-present interchange rates will be increased, meaning that transactions made online or over the phone will incur greater fees. 

For those in the Accounts Receivable Management (ARM) sector who take payments online or over the phone, these upcoming fee increases mean that now is the best time to implement a convenience fee model, in order to avoid increased costs to your business. As the only fully-compliant solution in the ARM industry, Payscout’s convenience fee model can help businesses offset these fees while ensuring full compliance.

To learn more about how to better prepare your business to take advantage of these upcoming changes, contact sales@payscout.com.

October 2019 Operating Regulation Changes

In October 2019, a series of operating regulatory changes from Discover® , Visa®, and Mastercard® will be made. This article describes the upcoming changes and when these changes will come into effect.

Discover®

UnionPay IIN Range:
Effective October 18 2019, a new IIN range for UnionPay issuance will be available. The IIN (Issuer Identification Number) refers to the first eight digits of the card number, and is used to identify the type of card used. The new IIN range for the UnionPay network is 62292600 – 62379699.

Chargeback Disputes:
Effective October 18 2019, Discover will make changes to two Chargeback dispute time frames:

Payscout-Summary-of-October-Chargeback-Changes

  • The time frame to initiate a Representment request will be reduced from 45 to 30 days after the Chargeback Dispute notice date. 
  • The time frame to initiate an Arbitration request will be reduced from 30 to 10 days from the Pre-Arbitration Inquiry decision notice date.

These changes will come into effect for disputes with an initial dispute notice issue date on or after October 18, 2019. For a more detailed explanation of the chargeback dispute process, see the infographic below.

Payscout-Chargeback-Process-Summary

Visa®

Private Label Pricing: 
Effective October 18 2019, changes to the Private Label Specialized Fee Program will be made. Internal transfer pricing for Private Label Specialized product purchase and credit voucher transactions will be lowered from 25.0% to 10.0%. 

Estimated, Initial, and Incremental Authorization Processing: 
Effective October 18 2019, 3 new merchant types will be eligible to send estimated, initial, and incremental authorizations when the final amount is unknown by the merchant. The 3 new merchant types are: 

  • Grocery stores and supermarkets- CNP only (5411);
  •  Electric vehicle charging (5552); and
  • Parking logs, parking meters, and garages (7523). 

Estimated/initial authorizations are used when the merchant does not know the final amount of a transaction (e.g. when checking into a hotel). Incremental authorizations are used when the estimate/initial authorization amount is insufficient or needs to be revised. 

Credit Voucher and Merchandise Return Authorization Messages: 
Under Visa’s updated acceptance rules, businesses are allowed to send authorization messages on credit voucher and merchandise return transactions, and effective October 19 2019, all merchants in the USA, Canada or Latin America will be required to send authorization messages on credit voucher and purchase returns. These authorization messages will be represented in the Processing Code Field by a value of 20.  

The authorization messages will enable the card issuer to validate the cardholder account and decline potentially fraudulent cards. It will also improve the cardholder experience by enabling cardholders to view the credit or return on their online banking statement right away, minimizing return inquiries. 

Mastercard®

Safety Net Acquirer Fee: 
Effective October 18 2019, a new rate for the Safety Net Acquirer Fee will be implemented. Safety Net is a service mandated by Mastercard which identifies fraud and notifies acquirers so that they can work with merchants to take action to mitigate the fraud and prevent further fraudulent activity. The new fee rate for this service is $0.0007 and will be billed per authorization.

Interchange Compliance Downgrade Program Fee:
Effective October 18 2019, a new rate for the Mastercard Interchange Compliance Downgrade program will be implemented. A new Interchange Compliance Downgrade Fee of $0.15 will be charged per downgraded transaction, with the goal of promoting more accurate interchange qualification behavior.

U.S. Assurance Framework:
Effective October 18, 2019, a new U.S. Assurance Framework to increase cardholder security will be implemented, part of which includes an increase in UCAF (Universal Cardholder Authentication Field) rates (see table below). 

UCAF Interchange Program Existing Rate (Merchant/Full) New Rate
Core Credit (Merchant/Full) 1.68% + $0.10 1.89% + $0.10
1.78% + $0.10
Enhanced (Merchant/Full) 1.83% + $0.10 2.04% + $0.10
1.93% + $0.10
World (Merchant/Full) 1.87% + $0.10 2.05% + $0.10
1.97% + $0.10
World High Value (Merchant/Full)
World Elite (Merchant/Full) 
2.30% + $0.10 2.50% + $0.10
2.40% + $0.10
Unregulated Consumer Debit (Merchant/Full) 1.15% + $0.15 1.65% + $0.15
1.25% + $0.15
Unregulated Consumer Prepaid (Merchant/Full) 1.15% + $0.15 1.76% + $0.20
1.25% + $0.15


Additionally, as part of the framework, a new compliance program called Excessive Fraud Merchant (EFM) will be implemented to help measure compliance at the merchant level. Merchants in the U.S. who meet all of the following conditions will be identified for the program: 

  • Minimum of 1,000 Mastercard e-commerce transactions 
  • Monthly net fraud greater than $50,000 USD
  • Monthly net fraud greater than 50 basis points 
  • Mastercard 3DS payment percent less than 10% of total Mastercard payment. 

Refunds/ Return Transaction Rates: 
Effective October 18, 2019, the Consumer Interregional Purchase Return/Refund rate will be set at 1.00%, and the Commercial Interregional Purchase return/Refund rate will be set at 1.80%. 

The infographic below provides a summary of the upcoming regulatory changes mentioned in this article.

Payscout-Summary-Card-Brand-Changes

Brazil: A World of Opportunity

As one of the top ten richest countries in the world, with one of the fastest-growing eCommerce markets, Brazil represents a great opportunity for businesses in the United States to access a rapidly expanding market.

Why Brazil?

With over 209 million consumers and a GDP of 1.87 trillion USD, Brazil is the ninth richest country in the world, and one of the fastest-growing eCommerce markets worldwide. Currently, Brazil has 66.4 million consumers who shop online, drawing in a revenue of 21 billion USD from eCommerce purchases. Between 2018 and 2022, online sales are expected to grow by almost 11 percent annually, with revenue from eCommerce consumers expected to exceed 31 billion USD by 2022, representing a tremendous opportunity for merchants and ISOs in the United States.  

Barriers to Entry

If you are an enterprise-level business conducting international eCommerce, Brazil is a viable and profitable market to tap, however, significant barriers to entry are frequently encountered. Some of the most common barriers faced by businesses trying to expand into the Brazilian market include understanding local laws, regulations and tax requirements, lacking a physical presence, cultural barriers, and finding the right partner(s) to gain access.

Benefits of a Brazilian presence

In Brazil, 69% of online payments are made by credit card, however, the vast majority of these transactions are via local credit cards, with only 20% of Brazilian consumers possessing international credit cards. With the majority of the Brazilian market not having access to international credit cards, providing payment acceptance for domestic payment methods is crucial. By having a legal and physical presence in Brazil, this facilitates your business’s ability to offer solutions for domestic payment methods, enabling your business to make the most of this burgeoning consumer class. 

A local presence can also assist your business in attaining an in-depth understanding of compliance with local laws and regulations, ensuring secure and reliable processing and settlements. Similarly, knowledge of tax requirements in Brazil can help simplify the complexities of the taxation system, allowing your business to price your products and services competitively. Lastly, local knowledge of the culture and economy can also help facilitate cultural assimilation and eliminate cultural barriers, optimizing your business’s presence in the Brazilian market. 

Payscout Brazil

Payscout Brazil is a licensed Payment Service Provider (PSP) established in São Paulo in 2013. Our physical presence in Brazil affords your business access to a full range of domestic and international payment methods, including domestic credit and debit cards, Visa, Mastercard, Boleto Bancário, Bradesco Comércio Eletrônico, Banco do Brasil Comércio Eletrônico, Banrisul, and Banricompras. Payscout Brazil provides both POS and eCommerce solutions, along with its best-in-class fraud solution, Gumshoe, which offers the risk mitigation and stability essential for cross-border and eCommerce international payments. 

To learn how you can access this booming market of over 200 million consumers, visit payscout.com/brazil.

Data Breaches and the Importance of PCI Compliance

cybercrime, hacking and technology- hands of hacker
An Integration to Payscout’s Paywire Gateway Can Significantly Reduce Your Risk of PCI Non-Compliance

American Medical Collection Agency (AMCA), a 3rd-party healthcare debt collection firm servicing 7.7 million consumers, recently experienced a massive data breach, exposing consumers’ personal data and payment information. AMCA subsequently filed for bankruptcy, as a result of fall out from the data breach. This event is a stark reminder of how crucial it is to abide by PCI compliance requirements and to understand if your software partners and providers are compliant. 

Payscout is a PCI Level 1 and PA-DSS certified Service Provider, and we have recently been reviewing our new and existing technology partnerships to ensure that our mutual customers are fully protected. We have integration solutions that, as our partner, can reduce your PCI scope, regardless of whether you offer an online application (PCI DSS requirement) or a distributed application (PA DSS requirement). 

Definition of PCI Scope

PCI Scope is established by the presence of a credit card number (PAN). If the PAN is ever transmitted, processed, or stored by your software, then it is a payment industry requirement to comply with PCI DSS and complete a rigorous compliance validation facilitated by an authorized QSA (Qualified Security Assessor) Company. Organizations that do not comply with PCI DSS face potentially serious consequences, which can include the following:

  • Increased transaction fees
  • Fines from the acquiring bank and/or card brands
  • Responsibility for fraud loss in the event of a breach or other security incident
  • Loss of ability to accept credit cards as a form of tender
  • Reputational damage in the event of a breach
  • Inability to claim safe harbor should a serious security incident impact cardholder data security

The Costs to be PCI Compliant

For a Software Company to become a PCI Compliant Service Provider, in addition to rigorous and time consuming annual audits, typical costs for QSA audits are as follows:

  • PCI DSS $25k+ Annually
  • PA DSS $30k+ every 3 Years + PCI DSS Annual Cost

In the event of a breach, the cost to resolve a security incident is $7 – $15 per credit card number. These costs could rise to $70k – $150k for 10,000 credit card numbers. Many software vendors and merchants have the potential to impact the security of many more than 10,000 card numbers, and so fraud loss could be astronomical. Following AMCA’s data breach, AMCA’s largest clients immediately terminated their relationships, further impacting AMCA’s ability to bear these expenses and consequently rendering them bankrupt. These consequences not only affect the software company, but additionally put all customers using the software at risk. 

We can work with you to identify the best solution for your situation, based on your type of application and how it is distributed. In addition, we work with a QSA who can attest to your out of scope status and provide a letter certifying that status for your customer’s compliance audits.

 Does Your Business Fall Within the Scope of PCI Compliance Requirements?

There are many layers to PCI Compliance requirements. If you facilitate electronic payments within your software application, how you capture card details (card number, expiration date, and CVV) could put you in the scope of PCI Compliance. 

According to current PCI Requirements, here’s how it works: 

  • If you capture payment card information directly within input fields in your application for transmission to a payment gateway via an API, you are in PCI Scope
  • If you capture payment card information using a payment gateway’s hosted payment page, presented in either an iFrame or Modal window (Popup, Lightbox, etc), you are out of PCI Scope
  • If you capture payment card information as a full redirect to a payment gateway’s hosted payment page, you are out of PCI Scope
  • If you capture payment card information via some other method, requirements will vary. 

How is your Product/ Software deployed?

  • If your Product/ Software is deployed online as a Web Application, you are required to comply with PCI DSS requirements
  • If your Product/ Software is distributed within a Client’s network (via either Desktop or Web Applications), you are required to comply with both PCI DSS and PA DSS requirements 

Interested in learning more? Payscout’s Fran Fisher will be discussing PCI Compliance Scope in further detail at Ontario Systems’ 2019 PowerUp Conference.

Wondering if your Business falls within PCI Scope? Contact sales@payscout.com so we can help you find out.

Everything You Need to Know about UnionPay

With over 7.5 billion UnionPay cards issued globally – more than Visa and Mastercard combined- UnionPay has grown to be the largest supplier of payment cards in the world.

UnionPay (formerly known as China UnionPay, or CUP) is China’s sole bankcard association. It was established in 2002 in Shanghai, under the approval of China’s central bank. With over 7.5 billion UnionPay cards issued globally – more than Visa and Mastercard combined- UnionPay has grown to be the largest supplier of payment cards in the world. 

Why UnionPay?

UnionPay allows Chinese customers to pay with a trusted and familiar card brand, no matter where they are. As of March 2019, UnionPay cards are accepted in 174 countries and regions, and by 52 million merchants worldwide. In particular, in the US, over 80% of merchants accept UnionPay cards, greater than the US merchant acceptance for American Express cards. Additionally, almost all ATMs in the US accept UnionPay cards, as part of the 2.6 million ATMs worldwide accepting UnionPay.

If you’re already accepting UnionPay cards, you can increase conversions by 30-90% by switching to Payscout’s SecurePlus connection, which combines credit and debit card acceptance in one solution. 

UnionPay cardholders also receive exclusive privileges when traveling, including no foreign transaction fees, no purchasing limits, worldwide customer support, as well as discounts at various attractions and retailers around the world. In 2017, there were more than 131 million Chinese tourists worldwide, who spent approximately $115 billion overseas. In the United States alone, 3.5 million Chinese tourists are expected during 2019, with this figure increasing to 4.5 million annual visits by 2022. 

The number of UnionPay transactions totaled 17.69 trillion in 2018, up 28% from 2017. With the increased global acceptance of UnionPay and growing number of Chinese tourists worldwide, this figure is only expected to continue rising at a rapid rate. 

UnionPay Products/Services

UnionPay supplies both debit and credit cards, although credit cards make up the majority of UnionPay cards issued. There are almost 900 million UnionPay credit card accounts, over 5 times greater than American Express. UnionPay also offers online and mobile payments, with their mobile payment app QuickPass hitting 150 million users in April 2019. As part of their online payment processing, UnionPay offers an e-commerce solution, UnionPay Online Payments (UPOP), which allows for cards to be accepted over the Internet with real-time transaction authorization.

UnionPay as a preferred payment method

According to the 2018 World Tourism Cities Federation report, mobile payments and UnionPay cards are the preferred methods of payments for Chinese tourists, ahead of Visa/Mastercard and cash. However, while there is a huge demand for UnionPay as a method of payment, many Chinese tourists are worried about the acceptance of UnionPay overseas. Therefore, once you set up UnionPay, it is highly recommended to display the UnionPay Logo on your website or store-front, ensuring that Chinese customers are aware that you accept this preferred payment method.

Payscout provides instant onboarding for updated UnionPay API connectivity, enabling debit and credit card acceptance with branded logo placement and SMS authentication. 

How can I accept UnionPay?

As a Principal Member and Global Acquirer of UnionPay International, Payscout can help you add this preferred method of payment to your e-commerce sites. Settling with Payscout not only saves you time, taking only 2 days versus the typical 5 days, but also saves you money on UnionPay processing with costs at 2.5%. 

In addition to offering both debit and credit processing, Payscout offers tokenization and full integration with UnionPay SecurePlus. Tokenization improves issues with card security, while SecurePlus allows companies to accept both credit and debit cards without a redirect to a UnionPay Hosted Payment Page, thereby improving the customer experience and increasing conversions at the same time. SecurePlus also improves security, as all debit transactions receive an SMS authentication code, therefore reducing fraud risks and severely reducing chargebacks too.

 We can help you get access to the world’s largest card network in the world. Visit acceptunionpay.com to get started with UnionPay today.  

Visit payscout.com/china to learn more.