CenPOS update leverages new CVV rule for magnetic stripe failures

CenPOS, a fast-growing payment processing technology, released a new feature for merchants to enable the automatic collection of CVV at the point of sale for key entered transactions including a failed magnetic stripe read.  The update supports the new Visa rule for card present transactions.

Effective October 15, 2011, merchants that prompt for and validate the Card Verification Value 2 (CVV) on any Visa CPS Key entry transaction (not to be confused with CPS Card-not-present) will no longer be required to take an imprint of the card to prove that the consumer was present at the time of the transaction. More importantly, merchants that implement this new procedure will no longer be liable for charge-back reason code 81 (Fraud Card-Present Environment).

 

cvv prompt for key entered face to faceThe CenPOS privilege in the Virtual terminal can be dynamically enabled or disabled by the merchant administrator. When enabled, the Virtual Terminal will automatically prompt for the CVV on any and ALL manually entered transactions. If in a retail environment with an attached signature capture terminal, the customer will still be prompted for their signature as usual.

cvv prompt for key entered face to face

To enable, click on the Administrator tab >merchant icon> processing data tab> click on “CVV Manual Entry”

About CenPOS
“Creating efficiencies through payment innovation”

Founded in 2009, Miami-based CenPOS is a payment technology provider. CenPOS is committed to providing its customers and partners with innovative solutions for today’s rapidly evolving consumer payment choices.

CenPOS is an intelligent payment-processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems. The network reflects the core values that drive the experienced and innovative CenPOS team: Simplicity, Scalability, Security and a holistic approach to payment processing strategies.

CenPOS provides solutions to a range of organizations including but not limited to retail, card not present merchants, automotive dealers, professional services and academic institutions; special programs are also available for non-profits.

Christine Speedy direct (954) 942-0483

American Express merchant rates

Did you think you had a flat rate fee for your American Express merchant account? I did too. But, there are circumstances where they can charge you more. Key entering a transaction at the point of sale is probably the most common.

Per the American Express April 2010 merchant guidelines PDF, “there are instances when Merchants will need to key-enter an In-Person Transaction. This occurs most often when the POS System cannot read the Magnetic Stripe. There may be a fee assessed for Charges that are key-entered. See subsection 12.2.2, authorization fees.
Transaction fee – A fee applied to any Charge for which we did not receive the full Magnetic Stripe from the Card and the indicator as to whether the Card was swiped.
0.30% of the face amount of the Charge.

This should not come as a surprise. Visa and MasterCard have long had a different rate for key entered transactions on a RETAIL or swipe merchant account.

” One of the requirements of a key-entered Transaction is to validate the Card’s presence. Failure to validate the Card’s presence can render the Merchant liable for Chargebacks if the Cardmember disputes the Charge. This doesn’t change for any type of card and we’ve reported on this before.