What is Auth Code 51, declined?

A credit card processing response of Auth Code 51, is a decline for insufficient funds, the credit limit has been exceeded. What happens when the customer says, “there’s nothing wrong my Visa card, put it through again”? If put through again without a voice authorization, the merchant is at risk for chargeback of funds for invalid authorization.

Visa Product and Service Rules, 8.4.1.3 Original Credit Transactions – Prohibition against Clearing a Declined Transaction

An Originating Member must not send an Original Credit Clearing Transaction if it received a Decline Response to the corresponding Authorization Request.

Further information at page PSR-564, 11.1.16 Chargeback Reason Code 71 – Declined Authorization. NEW. Effective for Transactions completed on or after 15 April 2016,
A Transaction for which Authorization was obtained after a Decline Response
was received for the same purchase. This does not include an Authorization
Request that received a Pickup Response 04, 07, 41, or 43 or was submitted
more than 12 hours after the submission of the first Authorization Request.

This period is known as the black hole or dark period. For the first 12 hours after a decline, merchants should not attempt to process the same retail transaction. The reality is a consumer could simply walk away and go back to another cashier and try again. Some cloud based payment gateways will enable merchants to choose to prohibit multiple attempts in the black hole period.

Disclaimer: The rules of card acceptance are very complex. Merchants should read the manual for complete details regarding card acceptance for your business type.

Distributor EMV Credit Card Terminals – Profit busters, profit boosters

Distributors have special needs for retail credit card processing to maximize profits and mitigate risk. Here we identify credit card terminals that are certain fall short on delivering in an EMV environment. The two most critical retail needs are requiring customers to comply with the highest security supported, and supporting level III processing. Additionally, P2PE, encrypting at the terminal head, is important for a security and compliance.

Only cloud payment solutions have the potential to meet the primary distributor retail processing needs.  This precludes all First Data terminals, one of the most popular brands distributed, and similar devices. DISCLAIMER: comments are specifically regarding business to business needs, not all retail industry needs, and are not in any way intended to imply anything negative about the terminals.

The terminals below DO NOT meet the two most critical distributor needs to maximize profits.

verifone vx520 emv terminal

Verifone vx520

Clover Mini by First Data

Clover Mini by First Data

First Data FD35 EMV pin pad terminal

First Data FD35 EMV PinPad, attaches to a variety of FD terminals.

Ingenico iCT250 emv capable countertop terminal.

Ingenico iCT250 emv capable countertop terminal.

magtek mini card swiper

Magtek mini card swiper.

The terminals below have the POTENTIAL meet the two most critical distributor needs to maximize profits. Special certifications and payment gateway logic is required.

ingenico isc250 signature capture terminal

Ingenico isc250 EMV

 

verifone MX915 EMV terminal

Verifone MX915 EMV chip terminal

Fraud liability review for MasterCard, American Express, and Discover (credit and debit)

  • If the card is chip & sign, and the terminal is EMV only, the card issuer is liable
  • If the card is chip & pin, and the terminal is EMV without pin, or pin debit without EMV, the merchant is liable
  • If the card is chip & pin, and the terminal is EMV with pin, the issuer is liable
  • If the terminal supports EMV & pin, but the customer uses chip & sign, the merchant is liable. Acquirers generally support chip and pin bypass to chip and signature. Merchants should only use solutions that require the highest security on every transaction, including prohibiting customer bypass.
  • If the terminal supports EMV & pin, but the customer does chip & sign, the merchant is liable.

Merchants should only use solutions that require the highest security on every transaction, including prohibiting customer bypass.

If you want to enhance your customer experience, make a change that also maximizes profits too.

Christine Speedy, CenPOS global sales and integrated solutions reseller, 954-942-0483. CenPOS is a merchant-centric, end-to-end payments engine that drives enterprise-class solutions for businesses, saving them time and money, while improving their customer engagement. CenPOS? secure, cloud-based solution optimizes acceptance for all payment types across multiple channels without disrupting merchant banking relationships. Keep your processor, upgrade your technology! Quick and easy to implement with no long term contract.

Updated Card Absent Chargeback Rule – 540 days

Business to business, automotive  and parts dealers, are especially stung by chargebacks for disputes relating to the quality of merchandise or services received. Effective for transactions processed on or after April 18, 2015, is a new clause that can increase the chargeback period from 120 days to 540 days for US and Canada.

Both Visa and MasterCard have implemented the new rule. I didn’t find a similar rule in a quick research of Discover and American Express, but my research was not exhaustive.  The rules are not identical and readers are advised to read the rules thoroughly, as this article does not include the full context for when the rule applies.

Visa Core Rules and MasterCard Chargeback Guide October 30, 2014:

  • Visa Chargeback Reason Code 53 – Not as Described or Defective Merchandise
  • MasterCard Reason Code 4853—Cardholder Dispute—Defective/Not as Described

One goal of the MasterCard rule appears to be providing customer recourse for ongoing interrupted services. The customer paid for something, they complained and worked it out within 120 days, but then there were recurring quality issues.

They both make it clear that a customer does not have to return goods and services in order to dispute at a later date. This is a change from the old rule.

How can merchants protect themselves in a dispute for these reasons?

  • Written return policy and proof of acknowledgement
  • All guarantees in writing acknowledged
  • Signed sales orders; include specific deliverables and policies at the time of agreement
  • All written communications, including emails, prior to and after the sale as part of the dispute process.
  • Save a log of phone calls with who, what, when, to submit as evidence.
  • For online payments, require check box to acceptance of your terms of sale

Note: the 540 day rule has been in existence, however, the rules have been updated with more specificity, certainly for Visa.

How to reduce 75-CH Does Not Recognize Trans chargebacks for business to business

CenPOS merchants use the Electronic Bill Presentment and Payment service as a tool to avoid future disputes. EBPP sends electronic invoices via text or email in seconds with no integration required.  For business to business merchants, it’s common for the cardholder to be different from the person purchasing.

Avoid these issues:

  • Buyer wasn’t authorized for the purchase amount
  • Buyer bought something the boss wasn’t aware of or didn’t approve
  • Exposing personal card information to other people so they can make a purchase
  • Losses from fees related to disputes won or lost
  • Unauthorized buyer ships product to a different address

3 Ways CenPOS solves these problems:

  1. Cardholder can choose to store their payment methods directly with the merchant, never exposing their data to internal employees or the merchant employees.
  2. Cardholder can personally manage all payment methods via secure hosted payment site
  3. Cardholder is automatically notified when the card is charged
  4. Cardholder can inspect invoices remotely from anywhere, even if a purchasing agent has been designated to get the invoice.

In addition to the above, CenPOS has robust fraud tools for merchants to manage.

Example with traditional processing: A commercial repair shop employee calls a dealer for a part. He gives the parts manager his bosses credit card info over the phone and then picks up the part.

Example with CenPOS EBPP: A commercial repair shop employee calls a dealer for a part. The parts manager confirms the part is in stock,  selects the invoice template from the secure web page, adds an amount to charge and presses send via email or text message for the boss to pay. The boss opens the message, views the prefilled payment object on  a secure web page, selects his stored payment method, and presses submit.

EBPP Electronic Bill Presentment & Payment

Both the seller and buyer save time by eliminating the conversation about card numbers, PCI Compliance issues with recorded phone conversations, or poorly designed fax forms that don’t protect the merchant. Additionally, the payment receipt is delivered electronically to the owner. This e-billing solution is an effective tool to prevent future disputes with greater purchasing transparency.

Global Sales: Christine Speedy (954) 942-048

What is a Visa compliant credit card authorization form?

Do you accept fax order forms from your customers? Are you a business to business company needing to store credit card data on file for recurring billing of variable amounts? The typical fax authorization form does not meet Visa requirements.

Card Acceptance Guidelines for Visa Merchants link to Visa downloads.

You won’t find a “fax authorization form” in the guidelines, however, there is much information about receipt requirements.

2012 publication Transaction Receipt Requirements are referenced on page 495 and Recurring Transactions starts on pg 585. The guidelines vary depending on whether your recurring billing order is from an ecommerce or other method.

Sample of a receipt for a sale from a stored card transaction:

recurring sale receipt compliant

A fax order form for a one time purchase should comply with the  standard receipt requirements. The invoice detail is generally accepted on  a separate page for B2B; the invoice number should be on the receipt.

A recurring billing order form should comply with the recurring rules and standard receipt requirements.

Chargeback prevention tips for business to business, card not present:

  • Deliver a receipt via email to the cardholder immediately upon charging the card. If there is going to be a dispute, resolve the issue quickly.
  • Send an invoice detail.
  • Use EBPP.  If you send an electronic invoice to the cardholder and they click and pay, it’s pretty hard to dispute someone else ordered the items.
  • Bill to and ship to addresses should match unless you have something in writing from the cardholder that they authorize shipping to another address.
  • Get a signed recurring billing authorization form if you’re storing card data.
  • Make sure your receipts have ‘recurring’ or ‘repeat sale’ for recurring billing.
Sample of stored card data authorization to pay form, replacing a fax form.

Fax authorization form compliant

There are too many variables to address all the options for a compliant fax authorization form in this article. For PCI DSS compliance, we recommend you replace all traditional forms with exposed credit card or check data with one that references tokens, an alpha numeric string that replaces the card data and is useless outside your payment processing system, even if stolen.

CenPOS is a universal payment processing platform that provides efficiencies for merchants and their customers, reduces PCI DSS compliance burden, and many other benefits.

WHERE TO BUY

Contact Christine Speedy, 3D Merchant Services for all questions. Click here to become a CenPOS referral partner.  Click here to become a customer or call the hotline at the top of this web page.