Chargeback Reason Code 4837 – prevent and win

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What is Mastercard chargeback reason code 4837, no cardholder authorization, and how can you win it? Don’t waste time defending chargebacks, make your company more profitable by preventing them. Combine card acceptance rules compliance with the latest technology to shift fraud liability is the number one method to prevent chargebacks.

What is Mastercard chargeback reason code 4837, no cardholder authorization?

The cardholder did not authorize the transaction.

What are some reasons why this happens when there is an existing relationship with the customer?

  • The card issuer can initiate a chargeback for invalid authorization; for example, a card present authorization was not settled within 24 hours
  • The merchant has a stored card on file, but did not follow proper protocols for storing and using stored cards.

Key Examples To Shifting Fraud Liability

  • Card present, support EMV chip and pin debit
  • Ecommerce, use cardholder authentication with 3D Secure which shifts liability for this type of situation back to the issuer.
  • Phone orders- comply with card not present authorization rules, including settlement time frames

While the steps above may seem simple, most developers, consultants and merchants are unaware of the nuances for authorization compliance. The assumption is that the payment gateway supports all merchant needs, but that is not the case. As rules complexities continue to increase, many payment gateways, regardless of size, have failed to keep up. This creates new risk for merchants who are unaware, and nobody is informing them otherwise.

Want a 3DSecure v2.2.0 compliant payment gateway for your business? Call Christine Speedy, 954-942-0483, 9-5 ET.

Visa to Launch New Certification Program to Support Payment Industry Professional Development

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Company will make 500 scholarships available to qualified applicants

Visa Inc. (NYSE: V) today announced plans to launch a new certification program and fund up to 500 scholarships, available to qualified applicants, that can be used toward obtaining this new professional certification. Visa’s new certification program is designed to train individuals as dispute resolution professionals, a role that is currently in high demand across the payments ecosystem.

With 75 percent of HR professionals in the U.S. reporting1 a shortage of skills in candidates for job openings, there is an increased need to better align training to the types of positions that are currently available. Certificate programs offer an alternative to a traditional degree, giving candidates the opportunity to develop the skills and experiences needed for a particular job in a shorter period of time and for less cost. A Georgetown University study2 found that those who hold certificates receive a 20% wage premium over those who do not.

“Private industry has an important role to play in helping equip the workforce with the skills needed for in-demand jobs. We need employers to actively assess workforce needs, promote skills-based recruitment and hiring and commit to workers’ lifelong skills development, which is critical to economic development,” said Visa Chairman and CEO Al Kelly, who serves on the White House American Workforce Policy Advisory Board to advise on ways the public sector, private industry and educational institutions can partner to tackle the ongoing skills crisis. “At Visa, we are working to help strengthen the pipeline of qualified workers. We want to help candidates adapt to a constantly changing environment.”

This certification program builds on Visa’s longstanding commitment to cultivating a ready and able workforce. Visa is one of more than 350 companies and organizations that signed the White House Pledge to America’s workers.

—a promise to expand programs that are designed to educate, train and reskill more than 14.3 million students and workers. Specifically, over the next five years, Visa has pledged to help create enhanced career opportunities for 14,500 individuals, including through increased apprenticeships and work-based learning programs, continuing education, on-the-job training and reskilling.

Visa’s new dispute resolution professional certification program will include multiple days of training and several professional-level certification exams. Dispute resolution professionals manage payment card disputes, and they generally work for financial institutions, such as the bank that issues your credit card, or payment processors.

Training and certification programs of this type can typically cost thousands of dollars, and participants in a program of this nature are often sponsored by an employer. Visa’s scholarship program for dispute resolution professional certification is meant to help support those who may not have the means through their employer. Details for how to apply for the scholarship are anticipated to be made available in early 2020.

“We are proud to offer this new certificate and provide a pathway to employment in the payments industry,” said Karie Willyerd, Visa’s Chief Learning Officer. “This is yet another demonstration of Visa’s commitment to provide today’s workforce with 21st century skills.”

About Visa Inc.

Visa Inc. (NYSE: V) is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network – enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit About Visa, visa.com/blog and @VisaNews.

Xtime, CenPOS Bring Better Streamlined Service Check-Out to Auto Dealerships

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Consumers save time by making online and in-lane payments directly through Xtime

REDWOOD CITY, Calif., Oct. 17, 2019  — Dealers using Xtime can now leverage the payment processing capabilities of CenPOS, which is now part of Elavon, to customers creating an enhanced vehicle ownership experience through quicker online and in-lane payment options.

The CenPOS payment solution integrates into Xtime’s Spectrum Platform, which makes it easier to capture and report customer payments efficiently either in the service lane from a tablet device or any service department workstation. All U.S. and Canada-based franchise dealership customers can immediately use the CenPOS payment functionality, creating more convenient, reliable payment options without requiring a significant investment or process change.

“Giving our service advisors the ability to own the experience from start to finish on one platform is pivotal in the way we intend to do business in the future,” said Chance Wiseman, fixed operations trainer at Del Grande Dealer Group in San Jose, Calif. “This one key change in technology will drastically streamline the active redelivery process. Another opportunity Xtime is providing us to exceed our customers’ expectations.”

CenPOS provides dealership customers with more control over their experience. With the choice to make payments remotely thorough their computer and smartphone, or onsite at the dealership with the new and improved Xtime Engage Tablet Reception application, customers can pay as they choose.

“Dealers should look at the service experience they are offering their customers in order to drive greater customer loyalty and retention,” said Tracy Fred, vice president and general manager of Xtime. “The powerful combination of CenPOS and Xtime’s single platform gives both service management and advisors a more streamlined and easy-to-use solution that meets consumers’ demands and saves them time and energy throughout the entire service experience, from write-up to payment.”

An efficient check-out process is also critical to keeping consumers happy and coming back. Consumers who are most satisfied spend 2.5 hours or less at the dealership for service.1 As a result of this new integration, dealers interested in using Xtime’s Engage payment solution will soon have their choice of multiple merchant processing providers.

“With extensive expertise in providing payments for the auto industry, together with Xtime, we can offer rich, secure solutions that are specific to the needs of this industry,” said Joey Orozco, director of business development, CenPOS. “By streamlining service check-out, dealerships can increase customer satisfaction and save their customers valuable time.”

For more information, click here.

1 2019 Cox Automotive Service Industry Study

About CenPOS:
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.

About Xtime
Xtime increases customer retention for automotive dealer service departments by using technology to transform the ownership experience. Improving customer satisfaction and retention drives dealer revenue and profitability. Xtime is committed to delivering the experience consumers demand – an experience which emphasizes value, convenience and trust.

Xtime books 52 million service appointments and processes 120 million repair orders annually. Twenty-nine global OEMs have chosen Xtime to drive that same type of success for their businesses, converting more than $13 billion in service revenue annually for more than 7,500 dealerships.

About Cox Automotive
Cox Automotive Inc. makes buying, selling, owning and using cars easier for everyone. The global company’s 34,000-plus team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with revenues exceeding $20 billion.www.coxautoinc.com

PSD2 compliant payment gateway

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Need a payment gateway that supports Strong Customer Authentication (SCA) requirements for the EU Payment Services Directive (PSD2)? The EU requirements went into effect September 14, 2019 and like many new regulatory and card acceptance rules changes, some payment gateways are ready, some are not, and some may never get updated. This article addresses online payments and ecommerce transactions only.

Do US companies with a US merchant accounts need to comply with PSD2?

It depends. This is hard to decipher when researching, but the key is, yes must comply if a transaction even ‘passes through’ the EU.

  • One leg out (OLO) transactions in any currency (where one of the Payment Service Providers (PSPs) is located inside the EEA and the other PSP is located outside the EEA). For example, a transaction involving US merchant account and an EU card issuer is one leg out and exempt from SCA.

How does PSD2 Strong Cardholder Authentication impact US merchants?

  • It’s not required for Ecommerce transactions from EU cardholders to US merchants with US merchant accounts.
  • US merchants may experience increased issuer declines if not using SCA.
  • US merchants will likely experience increased fraud as the pool of web sites shrinks where criminals can commit fraud and get away with it.
  • GDPR regulations for ecommerce transactions from EU cardholders to US merchants with US merchant accounts does apply; choose payment gateways that support both GDPR and 3DS v2.2.0 for maximum compliance and protection.

Which online payments are exempt from PSD2?

  • Commercial cards where there is no cardholder name, and thus no way to authenticate an individual.
  • Recurring transactions for the same amount- PSD 2 applies for the initial transaction. If the amount changes, PSD 2 applies. PSD 2 applies for Unscheduled Credential On File for each transaction unless cardholder whitelists as per next item.
  • White-lists of trusted beneficiaries- cardholders can notify their issuer to allow payments to go through without SCA after initial transaction.
  • Transactions under $30.

How can merchants get compliant with PSD2?

Merchants should use a payment gateway that supports 3DS v2.2.0, which supports Strong Customer Authentication or SCA. Visa specifically states in their rules (Table 5-17: Acquirer Support of Visa Secure by Region/Country – Requirements) that acquirers in the EU must process transactions using Visa Secure, which is their version of 3D Secure, a global protocol for securing card not present transactions. Only 3D Secure 2.x, not 1.0, meets the PSD2 requirements, with v2.2.0 being the most current as of this writing. This will get merchants compliant with PSD2.

Which payment gateways support 3DS v2.2.0?

Because the payment gateway may be one of multiple components in the checkout process it may not be on a certification list. One popular payment gateway apparently is not being updated- Authorize.net; users are advised to upgrade to Cybersource per the Cybersource link in resources below.

Historically, Europe rolls out tougher rules first and then the US. Merchants can expect SCA to be a US requirement in the future.

Want a GDPR and 3DS v2.2.0 compliant payment gateway for your business? Contact us for solutions.

Resources:

DISCLAIMER: condensed and incomplete information! Information may be quickly outdated.

Want a GDPR and 3DS v2.2.0 compliant payment gateway for your business? Call Christine Speedy, 954-942-0483, 9-5 ET.

EMVCo launches EMV® 3-D Secure 2.2.0 Testing Programme

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EMVCo has announced the publication of the EMV 3-D Secure Protocol and Core Functions Specification v2.2.0.

14 December 2018 – EMVCo today announces the publication of the EMV® 3-D Secure Protocol and Core Functions Specification v2.2.0. The updated specification includes enhancements to promote an optimised consumer experience while supporting new authentication channels when making e-commerce transactions.

EMV 3DS is a messaging protocol that promotes frictionless consumer authentication and enables consumers to authenticate themselves with their card issuer when making card-not-present (CNP) ecommerce purchases. The additional security layer helps prevent unauthorised CNP transactions and protect the merchant from exposure to CNP fraud.

Version 2.2.0 builds upon the current specification version 2.1.0 which is available on the EMV 3DS Test Platform, enabling 3DS product providers to confirm that their solutions will perform in accordance with the specification. Support of v2.1.0 is required in order to implement v2.2.0. Key updates within version 2.2.0 include:

  • Improved communication between merchants and issuers, enabling Europe’s Second Payment Services Directive (PSD2) exemptions for Strong Consumer Authentication to be applied.
  • Two new features to enable authentication for various payment scenarios including mail order and telephone order transactions: 3DS Requestor Initiated (3RI) payments and decoupled authentication – allowing cardholder authentication to occur even if the cardholder is offline.
  • Expansion of existing data elements to promote communication of pre-checkout authentication events and associated data as part of the EMV 3DS transaction from systems such as those supporting the FIDO Alliance standards.

These enhancements are available if all 3DS components involved in the transaction have updated their software to support v2.2.0.

“EMV 3DS exists to promote secure, consistent consumer authentication for e-commerce transactions across all channels and connected devices, while optimising the cardholder’s experience,” comments Stephanie Ericksen, Chair of the EMVCo Executive Committee. “Our work in this area continues to evolve to ensure we respond to new marketplace requirements. EMVCo continues to encourage the payments community to get involved and provide feedback on the EMV 3DS activity.”

Earlier this year EMVCo announced the availability of the full EMV 3DS Test Platform, which enables the functional testing of EMV 3DS solutions. Letters of Approval are currently being issued for those 3DS products that have successfully tested against version 2.1.0. A list of approved products can be found on the EMVCo website. Products submitted for EMV 3DS v2.2.0 compliance testing will also be tested against EMV 3DS v2.1.0 to receive an EMV 3DS v2.2.0 Letter of Approval. Testing support for version 2.2.0 is expected to be available mid-2019. Progress updates will be posted on the EMVCo website.
To stay informed of the latest EMVCo developments and receive advanced access to EMV Specifications and related documents, join the EMVCo Associates Programme or become a Subscriber.