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.