Payscout’s Paywire Gateway: Features, Updates, & Enhancements

This article will be continually updated whenever any updates are made to the Paywire Gateway, to ensure that you have the most up-to-date information at all times. 

Payscout’s Paywire Gateway is an ecosystem of payment solutions designed to increase conversions, enhance compliance, and lower processing costs.

Conversions

From multi-channel processing options including API, Virtual-Point-of-Sale (VPOS), Off Site Buy Page (OSBP), OCX Desktop, Software Integration, and more — to standard and alternative payment methods from Visa, Mastercard, and American Express to Boleto Bancário, UnionPay*, Check 21, ACH, remote check capture, and many more — the Paywire Gateway is designed to help merchants process more payments in more channels with more methods. 

See below for updates on Conversion Solutions including Recurring Payments, Customer Vault, UnionPay, and Brazilian Credit Cards and Boleto Payments.

Compliance

Paywire is a Level 1 PCI DSS-compliant payment platform that is designed to reduce the scope of our partners’ PCI compliance. From PCI-validated point-to-point encryption (P2PE) to  360° Fee-Free solutions which comply with Federal Law, State Law, and Card-Brand rules — we are always adding new features and enhancements to the Paywire Gateway, but compliance is the foundation that underpins our solution, and every new channel or method we add is a new protected part of the Paywire ecosystem. 

Costs

Our 360° Fee-Free Payments was designed with compliance in mind, and in addition to providing significant reduction to a merchant’s payment processing  costs, it eliminates worry about lawsuits, fines, or merchant cancellation. Our solution includes support for Credit Card, Debit Card, and ACH Processing. We’re now rolling out a Cash-Discount beta product which was again designed explicitly to comply with Federal, State, and Card-Brand guidelines. The Paywire Ecosystem was designed to provide fully-compliant solutions that help merchants cut processing costs securely and without compromising the business. 

We’re always working on adding new features and enhancements to the Paywire Gateway. To ensure that you’re aware of these updates, we have compiled an overview of the key highlights below.

*Payscout is a Principal Member and Global Acquirer for UnionPay International.

General Enhancements:

  • Brazilian Credit Cards and Boleto Payments
    • Users now have the ability to process Brazilian credit cards and Boleto payments on the Paywire Gateway.
    • Celer credit card integration is implemented via API, OSBP and VPOS. The integration supports the following functions: Sale, Refund and Void, Recurring, Tokenization, and Customer Vault.
  • UnionPay Integration
    • Paywire’s UnionPay integration is implemented via API, OSBP, and VPOS. This integration supports complex OSBP scenarios such as one-time sale, token, multi-currency, and multi-language.
    • The UnionPay integration supports both UnionPay SecurePlus, as well as standard processing without an SMS code.
    • Recurring payments are possible without an SMS code. This is handled by conducting the initial payment using SecurePlus to create a token, and then conducting the subsequent transaction with non-SecurePlus.
  • ACH Rejected Transactions
    • Rejected transactions have now been added to the ACH returns report. Previously, users could only access these transactions via API or transaction search.
  • Cash Discount (Beta)
    • Custom reports for Cash Discount have been created for customer reconciliation.
    • Special statements specific to Cash Discounts are also available now for CD customers.
       
  • Remote Check Capture
    • Remote Check Capture (RCC) functionality has been added to the Paywire Gateway.
    • RCC is a new transaction type, which is affected by sending an ACH transaction with a different SEC code. This in turn is converted into a Check 21 transaction, which is subject to more business-friendly rules as compared to ACH.
    • The RCC functionality is applicable to both API and OSBP.
  • Recurring Payments
    • There are now 3 options for setting up recurring payments (previously only option 1 was available): 
      1. Process a $1 transaction and void it prior to setting up the recurring payment, in order to verify card validity.
      2. Send a card verification request to the card brands to verify card validity.
      3. Validate the card number at the gateway level only, according to the standard card number verification algorithm.  
    • All 3 of these options are configurable in the MID configuration in the Paywire gateway. 

VPOS Enhancements:

  • Customer Vault
    • The ability to assign a customer’s name to the payment record has been added to the customer vault, to help enhance reporting.

Additional detail is available through your relationship managers. If you would like further information or have any questions, please contact rm@payscout.com and we will be happy to assist you.

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.