First Data level 3 processing solutions

Need a solution for level 3 processing with your First Data merchant account? A payment gateway that supports level 3 processing is required, but that’s not enough. Payment gateway selection and implementation impact whether a transaction actually qualifies for level 3 rates.

The main requirements to qualify for level III interchange rates are:

  1. Submit required extra order detail. This varies by card brand; for example Ship to/from ZIP code, Destination country code,VA/ tax amount, invoice number, order reference number, Discount amount, Freight/shipping amount, Duty amount, Order date, unit of measure and more.
  2. Valid authorization. For example, the authorization and settlement amount must be the same.
  3. Interchange Rate Special Requirements, which may vary by card, industry etc. For example, here are requirements to qualify for MasterCard Data Rate III
    1. U.S. Merchant
    2. Applicable Electronic Authorization Data must be included and match Settlement Data
    3. Valid Banknet Reference Number and Banknet Date in valid date format MMDD
    4. Settlement within 2 days of transaction
    5. Level II & Level III Corporate Card data (Level II Data includes the entry of customer code, card acceptor type, tax ID and sales tax. Level III Data includes Level II data, line item detail, item description, item quantity, item unit of measure, extended item amount, product code, and debit or credit indicator.)
    6. Non-T&E MCC
    7. Card Acceptor Type and Tax ID must be provided

Visa Stored Credential Framework Impacts Authorization Validity

For business, corporate and purchasing card transactions to qualify for Level 3 interchange rates, a valid authorization is required. New rules change requirements for card not present transactions using stored cards. US businesses must comply with Visa Stored Credential Transaction framework effective October 14, 2017. Without getting into too much detail, payment gateways must update to comply, and merchants will also need to make some changes going forward.

Merchant requirements include:

  • When capturing a stored credential for the first time, complete special requirements, including cardholder authentication as applicable (Managed by payment gateway or integrated solution.)
  • Send correct transaction type on subsequent transactions: Installment Payments, Recurring Payments, or Unscheduled Credential On File. (Managed by payment gateway or integrated solution.)
  • Authorization and settlement amount must match. (Managed by payment gateway or integrated solution.)
  • Obtain cardholder consent and disclosure agreement. (Most likely managed by payment gateway or merchant.)

For years, authorization and settlement amount mismatch has been a common problem for merchants to qualify for level III rates. Even if a gateway solves this problem, an integration may limit the capability. This is easily identified by EIRF, STD/ standard, level I and level II rates present in the “pending interchange” section on merchant statements.

To solve all of the above problems, merchants can use a third party payment gateway with their merchant account, that manages authorization validity and continual changes within the gateway, including integrated solutions. Below image shows before and after interchange rates from actual merchant statements; same merchant account, just changed the payment gateway.level 3 gatewayContact Christine for a level 3 payment gateway that works with your First Data Merchant Account, as well as other acquirers.

Christine Speedy, CenPOS authorized reseller, 954-942-0483 is based out of South Florida and NY. 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 the merchant’s banking relationships.

US EMV Verifone MX 915 for BB&T TSYS

Yes, we provide US EMV with chip and pin for BB&T customers wanting to use Verifone MX 915 terminals. BB&T merchants are on the First Data platform. One unique benefit of our solution on First Data is we can process retail, MOTO (mail order/telephone order), and ecommerce, including electronic bill presentment and payment (EBPP), all in a single merchant account, with proper representment to mitigate chargeback risk and maximize profits.

The transaction process is different for EMV than magnetic swipe transaction, in order to support the different flow for processing chip cards.

To use CenPOS as shown in the video, merchants need high speed internet, web browser, Verifone MX 915, and CenPOS account. No other software is needed. CenPOS can be used standalone or integrated. Integrated solutions include Infor, SAP, Dynamics AX, Quickbooks etc. In all cases, CenPOS segregates payments from the application to reduce PCI Compliance scope and improve security.

TIP:  Having an EMV capable terminal does not mean a merchant is ready to accept chip cards. In the CenPOS environment, if a merchant installed a future proof, EMV capable terminal to get ready for EMV, the next step is to convert to EMV enabled. This always requires turning on EMV at the merchant account level, in addition to other steps.

If you do not own a Verifone terminal, do not purchase one on your own via EBAY or some other source. For PCI Compliance, and overall security, the purchasing and installation process must be tightly controlled.

If you’re not a current CenPOS customer, contact Christine Speedy for sales and integrations at 954-942-0483. Don’t just get ready, get EMV Compliant.

Batch processing accounts receivable and donations- Caging services solutions

Replacing ICVerify or other legacy software for batch credit card processing? Whether you’re in the cloud, or headed there, methods of payment processing have changed to meet current and future requirements for PCI Compliance and fraud prevention. For service providers, including non-profit mail processing, payment gateway selection impacts efficiency, merchant fees, and even client PCI Compliance burden.

The first way efficiency can be increased is the batch upload process. It’s basically the same for credit card processing and check processing. Here’s comparisons for payment gateway methodology for batch upload service:

CenPOS Batch Processing File Upload

  1. Save file to configurable directory (listening folder)

CenPOS Batch Processing Response File Retrieval

  1. Retrieve one or multiple files from configurable directory (response folder)

Authorize.net, Payeezy (First Data) and similar Batch Processing File Upload

  1. Log in to your Merchant Interface at https://account.authorize.net or other
  2. Click Upload Transactions.
  3. Click Upload New Transaction File.
  4. Click Browse.
  5. Locate from your system the file that you want to upload.
  6. Click Upload File.

Authorize.net, Payeezy (First Data)and similar Batch Processing Response File Retrieval

  1. Log into the Merchant Interface at https://account.authorize.net or other
  2. Click Tools from the main toolbar.
  3. Click Upload Transactions.
  4. Click View Status of Uploaded Transaction Files.
  5. Select the desired uploaded transaction file from the Select Upload File drop-down list.
  6. Click Submit.

CenPOS increases efficiency to upload and retrieve responses, reduces friction with no login required, and also supports multi-merchant login, enabling users to toggle between accounts, creating efficiency for both the service provider and the merchant.

More BATCH UPLOAD differences authorize.net CenPOS
Custom fields (share across channels) No Yes
Reporting 2 years Indefinite
Telephone support no yes 24/7

Merchant fees are impacted when a transaction does not qualify at the lowest interchange rate possible. For example, business to business companies must submit level III data to qualify for related rates, which are often 90 basis points (0.90%) lower than without. The payment gateway must be certified for level III to each acquirer supported. Only a few payment gateways are level III certified, and even fewer of those offer an acceptable batch upload solution.

PCI Compliance burden is reduced with tokenization, outsourced payment processing, reduced vendors and reporting. The latter is critically important for forensic audits, as well as financial. The average gateway only saves data for two years, and has limited data retrieval capabilities. CenPOS audit reports cover every touch to the platform- who, what, when, and more, with records available for a minimum of 7 years to match IRS requirements, reducing the cost of on-site and remote audits.

To learn more about batch credit card processing, replacing ICVerify, and cloud payment differentiators, Contact Christine Speedy for a free consultation for all your omnichannel global payment needs.

EMV chip and pin liability shift hidden merchant risk

EMV terminal and EMV technology selection can impact merchant liability depending on chip and pin capabilities and management of them. Use this information to ask key questions before selecting an EMV solution.

Liability shift for stolen cards for MasterCard, American Express, and Discover

  • 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 only, the merchant is liable
  • If the card is chip & pin, and the terminal is EMV with pin, the issuer is liable

What if the terminal supports EMV & pin, but the customer does chip & sign? The merchant is liable.  Acquirers generally support chip and pin bypass to chip and signature. The only way to effectively manage liability is to steer customers to the action protecting the merchant.

emv fraud liabilityTerminals may be able to be programmed to disable pin bypass; First Data ships terminals with PIN bypass disabled.

  • Integrated payment gateways and and standalone virtual terminals can also drive terminals; because the terminals have no programming, the payment technology must have the capability to dynamically determine the best way to process, and prompt the consumer to the actions allowed. This is a tall order for most gateways, as they do not have that type of dynamic capability, and or, the gateway may not have the needed EMV certification. CenPOS disables the consumers ability to select signature over pin at the POS.

The entire EMV transaction process is certified. If an EMV certified terminal, including integrated or non-integrated payment gateway with terminal, doesn’t support the option to require chip and pin when the card issuer supports it, merchants need to weigh the associated financial risks.