Visa and PULSE Agree on EMV Common Debit Solution

EMV Debit Solution Helps Accelerate Chip Technology Adoption in the U.S.

Foster City, Calif. and Houston, Texas, March 21, 2014 – Visa Inc. (NYSE: V) and PULSE, a Discover Financial Services (NYSE: DFS) company, announced an agreement to enable financial institutions that issue EMV debit cards on both the Visa and PULSE networks to use Visa’s common debit solution. Visa’s common application identifier (AID) supports U.S. debit regulations requiring the ability to route transactions over multiple, unaffiliated networks. A common debit solution shared among all participants will help to accelerate EMV chip adoption in the United States and provide a uniform platform that will enable network innovation.

“It’s important for the industry to work together, especially when it comes to the adoption of EMV chip,” said Bill Sheedy, executive vice president of Corporate Strategy and Government Relations, Visa Inc. “Our common solution is an asset we are making available to the industry free of charge to provide issuers and merchants greater choice among debit networks, and enable a streamlined implementation for all parties. The addition of PULSE in Visa’s EMV common debit solution, which now has been adopted by 4 of the top 5 debit networks, provides a level of clarity that we hope will jump start mainstream adoption of EMV technology for debit in the U.S.”

“Our network has been EMV-capable since October 2013, which will enable us to support transactions using the Visa common AID with minimal updates to our existing specification,” said Judith McGuire, executive vice president, Product Management, PULSE. “With this agreement, merchants and acquirers can develop their systems to support the full range of debit routing options available through PULSE, including PIN, signature and PINless transactions.”

Patricia Hewitt, vice president and managing director of consulting services at Mercator Advisory Group, said, “This agreement addresses the uncertainty that has plagued the advancement of EMV for the U.S. debit market and signals that the industry is ready to move forward with the broad adoption of EMV technology among U.S. debit issuers and acquirers.”

PULSE will use functionality on Visa’s common AID to facilitate all types of point-of-sale debit transactions on its network. In addition, the agreement enables PULSE to facilitate domestic ATM transactions on its network and provides for issuer choice in the routing of ATM transactions.

About Visa Inc.

Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks – VisaNet – that is capable of handling more than 30,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit corporate.visa.com.

About PULSE

PULSE, a Discover Financial Services (NYSE: DFS) company, is a leading debit/ATM network, serving approximately 6,100 financial institutions across the United States. This includes more than 4,100 issuers with which PULSE has direct relationships and 2,000 additional issuers through agreements PULSE has with other debit networks. PULSE links cardholders with ATMs and POS terminals at retail locations nationwide. Through its global ATM network, PULSE provides worldwide cash access for Diners Club and Discover cardholders through 1.3 million ATM locations. The company also is a source of electronic payments research and is committed to providing its participants with education on emerging products, services and trends in the payments industry. For more information, visit www.pulsenetwork.com.

Discover joins EMVCO

EMVCo Membership Grows With Discover

3 September, 2013 – Discover Financial Services has become the latest payment network to join the growing membership of EMVCo, the EMV® standards body. Discover will work alongside EMVCo’s existing members to manage and evolve the contact and contactless EMV industry specifications to facilitate worldwide interoperability and acceptance of secure chip payment instruments.

Discover has acquired a one-sixth share of EMVCo from the respective holdings of its current member-owners American Express, JCB, MasterCard, UnionPay and Visa. It will therefore have an equal interest in the standards body, actively contributing to the management, technical work and operations of EMVCo.

“Discover becoming an equity member of EMVCo further underlines the importance of the EMV standard for the global payments industry,” explains Dave Meadon, current EMVCo Executive Committee Chair. “The existing members of EMVCo value the additional resources and contributions that new members provide as we address the broad and diverse needs of the international payments community. As an established end-user of the EMV Specifications, we welcome the industry knowledge and extensive chip card experience that Discover will bring to EMVCo’s work programme.”

A key area of interest for Discover is the rapid growth and expansion of new payment methods and how these are being supported by EMVCo. Beth Horowitz, Senior Vice President, Discover Network, adds: “Discover is committed to achieving a global, ubiquitous payments landscape that is based on universally defined industry specifications and standards. This is particularly important as innovative transaction solutions are introduced such as contactless and mobile chip-based payments. We look forward to adding our expertise to these discussions and contributing to the global specification development efforts of EMVCo.”

Discover is the second new member to join EMVCo in 2013. In May, the standards body announced that UnionPay had become its fifth owner-member. Christina Hulka, current EMVCo Board of Managers Chair, concludes: “EMVCo is keen to engage with the payments community to ensure the continued evolution of its standards as the payments industry advances, rapidly offering new and exciting innovations. As part of this drive, EMVCo has established an Associates Programme, which encourages all payment stakeholders – including payment card issuers, acquirers, merchants, processors, card and terminal vendors, networks and their representative associations – to provide input into the advancement of existing and new EMV Specifications. We advise all interested parties to get involved in this programme, join our technical discussions and shape the future of their payments landscape.”

Notes to Editors:

EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo.

About EMVCo:

EMVCo’s primary role is to manage, maintain and enhance the EMV Integrated Circuit Card Specifications to ensure interoperability and acceptance of payment system integrated circuit cards on a worldwide basis. EMVCo also maintains type approval processes for terminal compliance testing and Common Core Definitions (CCD) and Common Payment Application (CPA) card compliance testing. These testing processes ensure that a single terminal and card approval process is developed at a level that will allow cross payment system interoperability through compliance with the EMV Specifications. Additional information can be found at www.emvco.com.

About Discover:

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America’s cash rewards pioneer, and offers home loans, private student loans, personal loans, home equity loans, checking and savings accounts, certificates of deposit and money market accounts through its direct banking business. It operates the Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation’s leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discover.com/company

Discover adds a new Network Authorization Fee effective October 18, 2013

Following Visa and MasterCard network fees for merchants, Discover is implementing a new Network Authorization Fee effective October 18, 2013. Each authorization request sent to the Discover Network will be assessed a fee of $0.0025. As part of their merchant agreement terms and conditions, most merchants will pay this fee as a separate line item on their merchant statements. Exceptions might be merchants that have some type of bundled pricing, in which case the overall bundled pricing may increase.

discover network

 

 

Highlights of April 2013 Merchant Rules Updates

Below are highlights of a few credit card processing 2013 rules changes applicable to many 3D merchant blog readers. Please note, the information contained herein is limited and does not contain all the applicable details. Refer to the card brand rules for specific details or contact your merchant services provider.

CARDS ISSUED OUTSIDE US: Effective April 19, 2013, American Express increases Fee from 0% to 0.40% for Prepaid Cards. Effective April 1, 2013, MasterCard increased the Acquirer Program Support Fee from 0.55% to a new amount of 0.85%.
DISPUTES: Effective April 20, 2013, Visa will update International Operating Regulations with modified and new compelling evidence rules for the dispute resolution process.
Visa New Representment Right for Compelling Evidence
Related dispute reason codes: 30 – Services Not Provided or Merchandise Not Received; 53 – Not as Described or Defective Merchandise; 81 – Fraud Card Present; 83 – Fraud Card Not Present.
EXAMPLES:

  • For a Mail/Phone Order transaction, a signed order form.
  • For a card-not-present transaction, evidence that the transaction uses data, such as IP address, email address, physical address, and telephone number, that had been used in a previous, undisputed transaction. Evidence that the transaction was completed by a member of the cardholder’s household.
  • For a transaction in which merchandise was delivered to a business address, evidence that the merchandise was delivered and that, at the time of delivery, the cardholder was an employee of the company at that address (e.g. confirmation that the cardholder was listed in the company directory or had an email address with the company’s domain name). A signature is not required as evidence of delivery.
  • For a card-not-present transaction in which the merchandise is picked up at the merchant location, any of the following:Cardholder signature on the pick-up form. Copy of identification presented by the cardholder. Details of identification presented by the cardholder.

Effective October 19, 2013 Change to MasterCard return policy for reason code 60 – Credit Not Processed. If a merchant doesn’t accept buyer’s remorse returns and cancellations, special terms must be disclosed them at the time of the sale. Cardholders must be informed of the Refund Policy prior to completion of the sale at the point of interaction. Failure to disclose will result in the merchant requirement to accept the goods for return and issue a credit to the cardholders account.
Note: Special Terms would include but not be limited to; restocking fees or in-store credits.

Please refer to official documents for further information. Here’s a list of links to card brands.

Mastercard Dues and Assessments and Cross Border Fees update

Merchant statements for April 2012 may include a bulletin about fees. This is a bulletin from an actual statement.

EFFECTIVE WITH MAY 1, 2012, YOU WILL BE CHARGED DUES AND ASSESSMENT FEES WHICH SHALL BE CALCULATED AS FOLLOWS: 0.110% (MASTERCARD) APPLIED TO ALL SETTLED MASTERCARD CONSUMER AND COMMERCIAL CARD SALES BELOW $1,000 AS WELL AS PREPAID AND SIGNATURE DEBIT CARD SALES REGARDLESS OF THE TRANSACTION AMOUNT, 0.13% (MASTERCARD) APPLIED TO CONSUMER CREDIT AND COMMERCIAL CARD TRANSACTIONS EQUAL TO OR GREATER THAN $1,000, 0.110% (VISA) AND 0.105% (DISCOVER) MULTIPLIED BY YOUR GROSS SALES VOLUME. CONTINUING YOUR MERCHANT ACCOUNT WITH US OR USE OF YOUR MERCHANT ACCOUNT AFTER 30 DAYS WILL REPRESENT YOUR ACCEPTANCE TO THESE TERMS.

EFFECTIVE JUNE 1, 2012, YOUR MASTERCARD “US CROSS BORDER FEE” WILL BE INCREASED TO .40%.

EFFECTIVE JUNE 1, 2012, A .80% MASTERCARD “US CROSS BORDER FEE” WILL BE ADDED TO YOUR ACCOUNT. THIS FEE WILL BE APPLIED TO TRANSACTIONS IN WHICH THE CARD PRESENTED WAS ISSUED IN A COUNTRY OTHER THAN THE UNITED STATES.

All of the fees above are mandatory and non-negotiable. Merchants see these fees on their statements if they are on PASS THROUGH or INTERCHANGE PLUS pricing. We call this ‘wholesale’ pricing. This is the best price plan for merchants because costs are transparent. If the merchant does not have these fees itemized, then they are on a bundled price plan. The downside is that higher profits can be hidden in bundled pricing.

Note, cross border fees are fairly new, yet they are climbing rapidly. Some merchants are under the misconception that these fees do not apply to them with their particular merchant processor, however, if you read the fine print, you’ll find them everywhere. For example, Paypal charges a 1% cross border fee. Why the difference? Because it’s Paypal cross border, not card association specific ie Discover, Visa, MasterCard which each have their own rates. Paypal is a bundled price program. They can charge whatever they want.