Merchant
Operating
Guide.
Card acceptance by business
MERCHANT BUSINESS SOLUTIONS
Postal Address
Merchant Business Solutions
GPO Box 18
Sydney NSW 2001
Westpac Merchant Business Solutions Help Desk:
Sales & Support
EFTPOS Technical Support
Stationery Orders
Telephone: 1800 029 749
Authorisations Centre:
Merchant Authorisations
Telephone: 132 415
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Merchant Operating Guide
Contents
4
1.0 Introduction
19
4.10 Split ticketing
4
1.1 Merchant details
19
4.11 Stationery
5
1.2 Honour cards with these symbols
20 4.12 Ownership of stationery and
6
1.3 Look for the hologram
7
2.0 Information for the use of
7
imprinters/terminals
21
5.0 Mail order and telephone order
2.1 Terminal information
21
5.1 Special notice
7
2.2 Processing transactions
21
5.2 Points to remember for mail and
8
2.3 Refund password
8
2.4 Security of your terminal
22
5.3 Mail order advertisements
8
2.5 Terminal faults and problems
22
5.4 Telephone order customer details
9
3.0 Information for the use
23
5.5 Completing a sale where a
electronic terminals
(moto) merchants
telephone order merchants
of manual imprinters
card is not present for mail/
10
3.1 Sales procedures
11
3.2 Your floor limit
23
5.6 Refunds
11
3.3 Merchant summary
24
6.0 Internet merchants
13
3.4 Banking of a credit envelope
24
6.1 Points to remember
13
3.5 Vouchers - returns and corrections
26
6.2 Correct operation of an
13
3.6 Security of imprinters
13
3.7 Damaged imprinter
27
6.3 Internet gambling
14
4.0 General merchant information
28
7.0 Additional instructions for
telephone orders
internet site
14
4.1 Merchant statements
hotels/motels and motor
14
4.2 Merchant copies of all vouchers
vehicle rental agencies
15
4.3 Returned goods and exchanges
28
7.1 Authorisation of transactions
15
4.4 Authorisation
29
7.2 Delayed or amended charges
17
4.5 Hours of authorisation
29
7.3 Additional instructions for
17
4.6 Chargebacks
delayed or amended charges
18
4.7 Cards left on premises
by car rental agencies
18
4.8 Card faults
18
4.9 Damaged cards
Merchant Operating Guide
30 8.0 Fighting fraud
3
1.0Introduction
Your Merchant Operating Guide for the acceptance of MasterCard, Visa and debit
card transactions
This booklet is designed to help you and your staff become familiar with the day-to-day use of your
merchant facility.
This booklet forms part of your Card Acceptance by Business Terms and Conditions.
Please read this booklet thoroughly and keep it close as a handy reference guide. If you have an
electronic solution, you may also be provided with a Terminal User Guide and a Quick Reference
Guide for transaction processing and other important information.
For all statement, transaction and general enquiries please call Merchant Business Solutions on
1800 029 749, 24 hours a day, 7 days a week. If you are using a terminal supplied by us you may
also phone this number for terminal malfunctions and difficulties. If you are using a terminal(s) not
supplied by us, contact your help desk or terminal provider.
1.1
Merchant details
Please complete the details below for your merchant facility.
Trading name:
Merchant number:
Floor limit:
For face to face transactions: $
If your terminal is enabled for Electronic Fallback (EFB) transactions your floor limit is:
$ for credit card transactions
$ for debit card transactions
For mail/telephone order, instalment/recurring
Transactions (for merchants where approved): $0
All Internet transactions: $0
The manual or electronic facility may not be taken outside of Australia at any time.
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Merchant Operating Guide
1.2
Honour cards with these symbols
Your Merchant Facility enables you to accept any valid credit cards showing the symbols below,
whether the card is issued in Australia or overseas.
Credit/Debit card transactions:
Debit card transactions:
You may process debit card transactions only where you have been supplied with an electronic
terminal with a PINpad and you have been approved to accept debit card transactions.
Note: The symbol may appear on the face or the reverse side of the presented cards. If you are in
doubt please call us at Merchant Business Solutions on 1800 029 749.
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5
1.3
Look for the hologram
All valid credit cards must have a hologram.
MasterCard hologram
Visa hologram
IMPORTANT:
DO NOT ACCEPT CREDIT CARDS WITHOUT HOLOGRAMS.
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Merchant Operating Guide
2.0Information for the use of
Electronic Terminals
2.1
Terminal information
We offer a number of terminal types to suit individual business needs. These include:
• fixed location terminals for credit card transactions only;
• fixed location terminals for credit card transactions and debit card transactions;
• mobile terminals for credit card transactions and debit card transactions.
In addition, merchants who obtain Westpac approved terminals from other card accepting vendors/
suppliers may use these terminals to process credit card transactions and, where required, debit
card transactions. Terminals that support debit card transactions incorporate a PINpad which allows
the cardholder to select their type of account (Cheque/Savings/Credit) and, where appropriate,
input their personal identification number (PIN). You or your staff must never ask a cardholder to
reveal their PIN.
For terminals with PINpads, the PINpad must be located where customers can use the PINpad
without the risk of other people seeing them key in their PIN. All EFTPOS terminals require current
Bank Certification and must comply with all industry and regulatory requirements.
2.2
Processing transactions
Processing instructions are provided in Quick Reference Guides and/or Terminal User Guides
provided to you separately with your terminal. Please keep it where it is easily accessible. If you have
not received your Quick Reference Guide, please telephone our Merchant Help Desk on
1800 029 749.
Although the terminal provides authorisation for most transactions, there are a number of points
that you still need to observe when processing transactions.
• a cardholder should not sign the terminal sales slip or enter their PIN until the transaction amount
is displayed on the PINpad screen and, where appropriate, printed on the terminal sales slip;
• for credit cards, compare the embossed card number on the face of the card with the number
printed on the signature panel. Note that the number on the signature panel may be abbreviated
to show only the last four digits of the card number, plus the CCV number. If these numbers do
not match, retain the card and telephone the Authorisation Centre on 132 415, Extension 500
(Option 1)
• for credit cards, compare the embossed card number on the face of the card with the available
card number printed on the terminal sales slip. If these numbers do not match, retain the card and
telephone the Authorisation Centre on 132 415, Extension 500 (Option 1);
• for credit cards, compare the first 4 digits of the embossed card number with the 4 digits printed
on the card, just below the embossed card number. Where they do not match, retain the card and
telephone the Authorisation Centre on 132 415, Extension 500 (Option 1);
• where a cardholder displays suspicious behaviour when making a transaction, you should always
call the Authorisation Centre on 132 415, Extension 500 (Option 1);
Merchant Operating Guide
7
• when one of our operators asks you to retain a card, please always ensure your personal safety
first. Do not comply with the request if you or anyone else is placed at risk.
Under no circumstances should you request that the cardholder provide you with their card and/or
pin number for you to retain. You should only retain the customer’s card if our operator asks you to
do so.
2.3 Refund password
To process refunds you must enter your password prior to each transaction. You are responsible for
protecting this password against unauthorised use. Do not key in your password in a manner that
enables customers or unauthorised staff to observe the number.
Ensure that your password is changed regularly to prevent unauthorised use.
2.4
Security of your terminal
Your terminal copies of printed receipts must be handled with extreme care. Only you, and your
authorised staff, at your discretion, should have access to these items. Please ensure your terminal
is kept on or near to your counter where you can supervise its use at all times.
Terminals must not be relocated without prior authorisation.
2.5
Terminal faults and problems
If your terminal cannot be used due to a systems fault or terminal problem, please refer to your
Quick Reference Guide. Where your terminal displays a response code not listed on your guide,
and you use an electronic terminal supplied by us, you should phone us on 1800 029 749 for
clarification.
If your terminal is enabled for Electronic Fallback (EFB), transactions may be processed under
certain conditions when you are unable to complete an online authority. For example:
• Credit card transactions which do not exceed your credit card floor limit may be processed.
However, you must obtain an authorisation for transactions exceeding this amount.
• Debit card transactions which do not exceed your debit card floor limited may be processed.
However you must ask your customer to provide an alternate means of payment for transactions
exceeding this amount.
In need, you should revert to your manual imprinter where one has been provided to you and
appropriate merchant stationery to process credit card transactions. You will need to seek
authorisation for all sales amounts over your credit card floor limit.
Please refer to section 3.1 for processing instructions for manual imprinters.
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Merchant Operating Guide
3.0Information for the use of
Manual Imprinters
Completing a sales transaction – flow chart
Care: Retain card until transaction is complete
Invalid card
Check card for valid dates
No hologram
Check for hologram
Imprint voucher
Remove and destroy cover sheet
Unable to imprint
due to damaged
card or imprinter –
handwrite details
Tick MasterCard/Visa
box and complete voucher
Signatures differ
Ask cardholder to sign
voucher and compare signature
on voucher to signature on card
Check that embossed card
number agrees with number
on signature panel
Numbers do
not agree
Check sale amount to your
floor limit
Sale over floor limit
Return card and cardholder’s
copy of the voucher to customer
Dial Authorisation Centre
Extn. 500 (Option 1)
Dial Authorisation Centre
Extn. (Option 2)
Remember, if you have any doubts about the person presenting the card or
the card itself call the Authorisation Centre.
Retain the card, however please always ensure your personal safety first.
Rewards are paid for lost and stolen cards recovered.
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9
3.1
Sales procedures
(See flow chart on previous page)
Sales
1. Ask your customer for his/her card.
2. Check validity dates and tick box. The card is valid from the first day of the month through to the
last day of the month indicated on the card. Do not accept a card prior to its validity date. Please
note that some cards may not have a ‘valid from’ date. If validity dates are not current, retain the
card and call the Authorisation Centre on 132 415 Extension 500 (Option 1).
3. Check that the card has a hologram on the right-hand side of the card midway between the top
and bottom edges. If not, retain the card, call the Authorisation Centre on 132 415, Extension
500 (Option 1).
4. Place the card in the imprinter, followed by a sales voucher. Make an imprint by sliding the handle
completely across the sales voucher and returning it to its original position.
5. Remove and destroy the sales voucher cover sheet. Make sure all details are clearly imprinted on
all copies of the sales voucher. If details are not clear, please refer to Section 3.7 or 4.9.
6. Tick appropriate card-type box (MasterCard or Visa).
7. Complete sales voucher with date and amount of the sale (including GST if applicable). Write
a brief but specific description of the goods and/or services supplied (if more than one item is
supplied, the amount of each item and total amount is listed). Initial the voucher in the
box provided.
8. Ask the cardholder to sign the sales voucher. Do not return the card to the cardholder at
this stage.
9. Compare the signature on the voucher with the signature on the card. If the card is unsigned or
the signature differs, telephone the Authorisation Centre on 132 415, Extension 500 (Option 1).
10.For credit cards, compare the embossed card number on the face of the card with the number
printed on the signature panel. Note that the number on the signature panel may be abbreviated
to show only the last four digits of the card number, plus the CCV number. If these numbers do
not match, retain the card and telephone the Authorisation Centre on 132 415, Extension 500
(Option 1).
11.If the sale is over your floor limit, telephone the Authorisation Centre on 132 415, and select
option 2 for approval. If approved, record the authorisation number in the appropriate box on the
sales voucher.
12.Please note: do not attempt to avoid authorisation by completing two or more sales vouchers on
the same card, as the transactions will be considered invalid and charged back to your Account
(refer Section 4.10).
13.When the above checks have been completed, you may then return the card and yellow copy of
the sales voucher to the cardholder.
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Merchant Operating Guide
14.Under no circumstances should you request that the cardholder provide you with their card and/
or pin number for you to retain. You should only retain the customer’s card if our operator asks
you to do so.
3.2
Your floor limit
Please record your approved floor limit in the merchant detail section at the beginning of this guide
for your reference.
For all sales amounts over your merchant floor limit you are required to carry out all necessary
checks (please refer to points 9, 10 and 11 in Section 3.1). Obtain authorisation for the transaction
as detailed above, and record the authorisation number in the appropriate box on the sales voucher.
Only you and your designated staff members should know your floor limit.
Please do not divulge your floor limit to any other person under any circumstances!
3.3
Merchant summary
All Westpac Merchants must lodge merchant vouchers with a Westpac branch only. The Bank offers
card processing facilities for MasterCard and Visa and schemes. You are required to lodge bank
copies of sales and credit vouchers with a merchant summary (brown) within three bank business
days of the transaction date. A maximum of 99 vouchers and one merchant summary per envelope
is allowable.
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11
1. Separate credit vouchers from sales vouchers.
2. Place your Merchant Summary Card (Banking Plastic) in the imprinter and imprint the merchant
summary details.
3. Write the net total in the space provided on the merchant summary (brown) and where possible
provide an adding machine listing of the sales and credit vouchers.
4. Complete the merchant summary using the spaces provided:
•
•
•
•
•
•
date
total number of sales
total value of sales vouchers
total number of credits
total value of credits
net total (sales less credits if any) – if value of credits exceeds sales, place a cross in the box
provided – refer to section 3.4
• your signature
5. Place the following items into a blue merchant summary envelope.
•
•
•
•
•
bank copy of merchant summary
adding machine listing (if available)
bank copies of sales vouchers
bank copies of credit vouchers
supply order form for additional stationery if required.
Remember not to use pins or staples
6. Place the bank copy of the merchant summary into the merchant summary envelope so
that your merchant details and the summary amount can be read through the windows of
the envelope.
7. Seal the envelope and record the merchant summary total on your normal bank deposit slip.
8. Your Account will be credited with the value of the sales shown on your merchant summary.
Standard clearance days will apply.
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Merchant Operating Guide
3.4
Banking of a credit envelope
If the value of credits exceeds the value of your banking, hand the envelope to the teller with a
cheque to the value of the net credit amount. Cheques are not to be placed inside the summary
envelope. Hand the envelope and attached cheque to the teller at your local Westpac branch
for processing.
3.5
Vouchers – returns and corrections
Vouchers which cannot be processed will be debited to your Account and returned to you for
correction with an explanation as to why they cannot be processed. Please correct the problem and
re-present the voucher for processing. If you require any assistance please telephone Merchant
Business Solutions on 1800 029 749.
3.6
Security of imprinters
Your imprinter and merchant identification card must be handled with extreme care, as well as
stationery and copies of completed transactions. They should be kept out of public reach during
normal business hours and locked away after trading hours. Only you and your authorised staff, at
your discretion, should have access to these items.
3.7
Damaged imprinter
If your imprinter is damaged in any way please report it to Merchant Business Solutions immediately
on 1800 029 749. If your imprinter is faulty, the cardholder’s name, card number and validity dates,
as well as the details from your merchant plate will need to be written on the sales voucher after
removal of the front page. The sale is to be then completed in the normal manner. (Please refer to
section 4.6 for information on chargeback liability).
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13
4.0 General Merchant Information
4.1
Merchant statements
The Bank issues two types of statements to merchant customers:
• Merchant Business Solutions Merchant Statement Credit Card Transactions
• Merchant Business Solutions EFTPOS/Debit Card Transactions
If required by law we will forward monthly statements to you. Statements will take the form of
Tax Invoices.
The statement will include:
•
•
•
•
deposit details;
merchant fees charged;
Goods and Services Tax;
any fees, errors or adjustments processed during the month. Adjustments and errors may include
returns and corrections made to your merchant summaries.
In cases where more than one merchant outlet is owned by the one business, a separate statement
summarising the month’s trading for all outlets is available on request. These are called Chain and
Headquarter statements.
If you have received approval for Dynamic Currency Conversion (DCC) facility, you may also receive
a separate statement for these transactions. Dynamic Currency Conversion (DCC) is a currency
conversion service that enables international customers to elect to pay in selected home currencies
(eg. US Dollars) or in Australian dollars. Where the cardholder’s home currency is available for
selection, the amount they agree to at the point of sale is the same amount that will appear on their
credit card statement.
Merchants must not offer DCC as the default payment option.
4.2 Merchant copies of all vouchers
Merchant copies (green) of vouchers and/or the electronic print out (“Merchant Copy”) are for your
records. These copies are invaluable in case of a query arising regarding a transaction. You must
retain copies for at least 12 months, however government legislation may require you to keep them
for much longer periods (please check with relevant authorities).
Failure to comply with this requirement may result in chargebacks being debited
to your Account where you are unable to provide information to confirm details
of a transaction.
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Merchant Operating Guide
4.3
Returned goods and exchanges
If a customer returns goods bought on a credit card, a refund or exchange may be arranged by you
or by your staff if you have authorised them to do so. Refunds may only be processed where there
was an initial valid transaction on the same card.
Merchants using electronic terminals should refer to the Quick Reference Guide (QRG) or User
Guide for instructions on how to process a refund or exchange for their specific product type.
For transactions using a manual imprinter, where the exchange of goods is for a greater or lesser
value, the refund transaction should be completed for the full amount and a new sales transaction
should be completed for the new purchase.
Merchants using a manual imprinter should complete a credit voucher as outlined below.
• Complete credit voucher (red) for full amount of return including any GST;
• Credit voucher is completed in the same manner as the sales voucher, except you are required to
complete reason for refund, date of original sale and sign in the space provided; and
• Use the same card number to complete the credit voucher as was used on the original
sales voucher.
Remember not to refund cash in any instance!
4.4Authorisation
An authorisation only confirms the cardholder has funds available to cover the purchase, and the
card has not been reported lost or stolen. It does not protect you from the possibility of subsequent
chargebacks. Please refer to Section 4.6. All other checks are your responsibility (please refer to
points 9, 10 & 11 in section 3.1). For authorisation of mail/telephone/internet transactions, please
refer to Section 5.2.
When to obtain authorisation
You will need to call the Authorisation Centre on 132 415 and select option 2 if:
• you are using a manual imprinter and the sale amount exceeds your floor limit;
• terminal is processing a CREDIT card transaction in electronic fallback mode and the amount
exceeds your approved floor limit
• the imprint on the sales voucher is unclear due to the card being damaged or your imprinter
being faulty;
• a credit card does not work in your terminal e.g. a card swipe does not work, terminal does
not read magnetic strip, your terminal is unable to complete an online transaction and the sale
amount exceeds your floor limit, validity dates are not current;
Merchant Operating Guide
15
• embossed card number on the face of the card does not match the number printed on the
signature panel on the back of the card (note that the number on the signature panel may be
abbreviated to show only the last four digits of the card number, plus the CCV number);
• signatures do not match; or
• person presenting the card behaves in a suspicious manner.
How to obtain authorisation
• Once your customer has handed over his or her card, remember to retain the card while you
seek authorisation. Please make sure the cardholder can see their card while it is in your or your
employees’ care. If you are asked to retain a card for any reason, a reward will be paid to you
provided you carry out the instructions given by the operator. Remember that you should always
ensure your personal safety and not place yourself or anyone else at risk.
• Phone the Authorisation Centre on 132 415 (option 2) and provide the details requested.
• If approval is granted, the operator will give you an authorisation number which you must write in
the appropriate box on the sales voucher.
• If declined, inform the cardholder to contact his/her financial institution for further clarification.
• Return the card to the cardholder unless our operator asks you to retain it.
Cancelling or changing amounts already authorised (manual
processing only)
Occasionally a customer may not proceed with a purchase after you have obtained authorisation or
you may have to amend the sale amount already authorised.
In both instances it is important that you telephone the Authorisation Centre on 132 415 and
selection option 3 to cancel the authorisation(s) and to obtain a new authorisation for any
amended amount(s).
Note: If an amount is altered without the cardholder’s signed authority the authorisation will be
invalid, and the transaction may result in a chargeback.
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Merchant Operating Guide
4.5
Hours of authorisation
The Authorisation Centre is available 24 hours a day, seven days a week.
Please telephone 132 415.
4.6Chargebacks
A chargeback is a debit entry to your Account processed by us, and is the reversal of a transaction
previously made to your Account.
Chargebacks occur when you are in breach of the terms of our contract, when a cardholder disputes
a transaction, or where the transaction is invalid.
The most common reasons for chargebacks are:
• a cardholder claims that the transaction is invalid or disputes liability for any reason;
• you or a staff member alter the amount of the sale, without the cardholder’s authority;
• processing a sale amount over your floor limit without authorisation (manual transactions and
transactions in excess of your floor limit when your terminal is unable to complete an
online transaction);
• failure to process a credit voucher for returned goods;
• splitting a sale using more than one voucher or printed receipt to avoid having to seek
authorisation (a chargeback will occur for each transaction);
• accepting a card prior to its validity date;
• processing a sale using an expired card or invalid card; and
• processing a recurring transaction after receiving advice of cancellation
Transactions which are invalid or which the cardholder claims are invalid or disputes for any reason
will be charged back to your Account. You will need to resolve the matter directly with
your customer.
If you receive notification of a chargeback or a retrieval request, you should reply promptly within
the timesframes we have specified in that request. A brief letter providing details of the transaction
should be sent, together with:
•
•
•
•
signed sales receipt
order form or other sales record
signed delivery receipt or other confirmation of delivery
any other supporting documentation
Where the chargeback notification was for a mail, telephone or internet transaction, you should
provide as much information as possible relating to the transaction in question.
Merchant Operating Guide
17
Should you receive a chargeback notification and you have already issued a credit for that
transaction, you should fax or post copies of the credit refund documentation to us.
Note: It is important that you reply to a notification of chargeback within the specified time. Should
you fail to reply or are late in responding, the amount of the relevant “disputed” transaction may be
debited to your account.
4.7
Cards left on premises
If a customer leaves a card at your premises which is not claimed within a reasonable
period, cut it in half horizontally through the card number and hand it in at your nearest
Westpac Branch.
If the card is claimed within that time, do not return the card until you have established the
cardholder’s identity. If you are unsure for any reason do not return the card and dispose of it as
suggested above.
4.8 Card Faults
Credit Cards
If you are presented with a faulty credit card which does not register through your terminal, advise
the cardholder to contact their Issuer and seek an alternate means of payment. Should an alternate
means of payment not be available you may choose to process the transaction using a manual
voucher and imprinter (where one has been provided to you) as set out in section 3.1.
Manual keying in of credit card information into your terminal is also available at your discretion (for
approved merchants), however you may be liable for transactions that are formally disputed
by cardholders.
Debit Cards
If you are presented with a faulty debit card which does not register through your terminal, that debit
card customer must be asked to present another card or use another form of payment.
4.9
Damaged cards
If you are unable to capture card details either electronically or via a manual imprinter, you must
seek an alternative means of payment.
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Merchant Operating Guide
4.10 Split ticketing
If you ‘split’ a sale by completing two or more transactions to avoid having to obtain an authorisation,
this action will result in the transactions being charged back to your Account.
It is important you follow the correct procedures to avoid unnecessary losses to your business.
For debit card transactions where you have a terminal which is EFB enabled and is in EFB mode, you
must not split a sale where the total amount of that sale is in excess of your debit card floor limit.
If you have any questions or require any further information, please contact Merchant Business
Solutions on 1800 029 749.
4.11Stationery
All new merchants with either manual or electronic facilities are supplied with initial stocks of
appropriate stationery.
Please remember to re-order stationery by phone at least one month prior to it being needed.
Stationery will normally be delivered within ten business days of us receiving your request. It is a
good idea to carry six weeks requirements as a safety net. To order new stationery, please telephone
Merchant Business Solutions on 1800 029 749.
Selected stationery items may also be ordered electronically in some instances where this is a
feature of your electronic terminal.
It is the Merchant’s responsibility to ensure that all transaction records are legible. Thermal paper
should be stored in a non-light sensitive area.
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19
4.12 Ownership of stationery and imprinters/terminals
Imprinters, unused stationery and promotional material remain the property of the Bank.
If you have an electronic terminal and your merchant facility is cancelled for any reason,
arrangements will be made to collect your electronic terminal from your premises. We (or our
representatives) will also collect your manual imprinter at the same time.
If you have a manual merchant facility only and your facility is cancelled, you do not need to arrange
pick up of your manual imprinter. Please follow the steps below to dispose of your manual imprinter:
• contact Merchant Business Solutions (MBS) on 1800 029 749 to ensure your manual merchant
facility is closed;
• remove the embossed metal plate from the imprinter (using standard Philip’s head screwdriver);
• cut the embossed metal plate (if possible) or bend in half and discard securely (in the rubbish bin);
• cut the plastic merchant summary cards in 3 pieces and discard securely (in a different rubbish
bin or separate rubbish removal day);
• discard the imprinter (in a different rubbish bin or separate rubbish removal day);
Any unused stationery and promotional material must be returned to us immediately at the
following address:
Merchant Business Solutions
GPO Box 18
Sydney NSW 2001
You must not sell, assign or in any way encumber any of these items, or give them to a third party, or
allow access to a third party. You are responsible for your equipment. If equipment is damaged, lost
or stolen, you will be charged for its replacement.
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Merchant Operating Guide
5.0Mail Order and Telephone Order
(MOTO) Merchant
5.1
Special notice
You must not commence processing mail/telephone order (MOTO) transactions without
gaining prior approval in writing from us. Mail order/telephone order transactions may only
be processed for credit cards.
Please note that transactions processed without prior approval may not be accepted.
5.2
Points to remember for mail and telephone order
merchants
1. A sale must not be processed before the goods or services are provided; and
2. Authorisation of a transaction only establishes that funds are available and that the card has not
been reported lost or stolen. Authorisation does not guarantee the purchase is being made by
the person whose name appears on the card. Fraudulent transactions will be charged back to
your Account.
As the cardholder is not present for mail and telephone order transactions, special care must be
taken to establish the cardholder’s identity.
Customer identification is your responsibility
• transactions formally disputed by a cardholder for any reasons may be charged back to your
Account (e.g. for non-receipt of goods, incorrect order supplied, transaction not made by the
cardholder, cardholder disputes liability; goods/services provided do not match the description of
what was advertised). It will then be up to you to resolve the matter directly with the purchaser of
the goods or services; and
• for mail order transactions, you must retain a signed copy of the cardholder’s authority for a
minimum of twelve months.
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21
5.3
Mail order advertisements
Only approved MasterCard and Visa logos should be used in your advertisements. To ensure you use
the correct card logos, please call Merchant Business Solutions for logo specification guides.
You must include the following information on the customer order form (and authority):
•
•
•
•
•
types of cards accepted (MasterCard and Visa) card account number (16 digits);
full name of cardholder, exactly as it appears on the card;
card valid from (where applicable) and expiry date;
address of cardholder and phone number(s);
details of goods/services being purchased inclusive of GST where applicable (including any
additional charges);
• cost of goods/services being purchased, including any additional charges;
• signed statement from the cardholder, authorising the merchant to charge the purchase, or
service, to the cardholder’s Account.
You must also include your business name and address.
5.4
Telephone order customer details
When accepting a credit card for payment of a telephone order, please make a written record of the
following details:
• type of card (MasterCard or Visa );
• card account number (16 digits);
• for merchants transmitting CVV values, the CVV may be captured for transmission.
N.B. Under no circumstances should the CVV be stored after transmission;
•
•
•
•
•
•
•
full name of cardholder, exactly as it appears on the card;
card valid from (where applicable) and expiry date;
address of cardholder;
telephone number;
details of goods/services ordered;
cost of goods/services (including GST, if applicable);
delivery instructions (to minimise the possibility of fraud, goods should be delivered to a home
address not to a post office box or a business address); and
• date of transaction.
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5.5
Completing a sale where a card is not present for
mail/telephone orders
For manual imprinter merchants:
You will be supplied with standard credit card sales vouchers. The vouchers are in triplicate:
customer copy, merchant copy and bank copy. The vouchers are to be completed as follows:
1. Place a credit card sales voucher in the imprinter and slide the handle across and return the
handle to its original position;
2. Print the following information onto the sales voucher:
• card details (cardholder number, cardholder name, card valid from [where applicable] and
card expiry date) to be printed at the top left hand side of the voucher
• details and amount of purchase to be recorded in the space provided on the voucher
3. Tick the appropriate card-type box (MasterCard or Visa);
4. Print the words ‘mail order’ or ‘telephone order’ where the cardholder’s signature would
normally appear on the sales voucher;
5. Obtain authorisation for the transaction. Record the authorisation number on the sales voucher.
If you have any doubts regarding the transaction please telephone the Authorisation Centre on
132 415, Extension 500 (Option 1); and
6. Where goods are to be sent to the customer, the cardholder copy of the sales voucher is to be
forwarded with the goods.
For electronic merchants:
Please complete the sale through your terminal and refer to your Quick Reference Guide for further
processing information. A successful transaction provides authorisation for the sale to proceed.
IMPORTANT: Please remember that authorisation will not confirm the identity of the
cardholder. It is your responsibility to establish a cardholder’s identity. Authorisation will
not guarantee payment to you if the transaction is not made by the rightful cardholder.
Authorisation will also not protect you from chargebacks.
5.6Refunds
Please refer to Section 4.3 for manual sales merchants. Electronic merchants should refer to their
Quick Reference Guide.
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6.0 Internet Merchants
6.1
Points to remember
To ensure customers to your site are provided with information they require to make transactions,
your Internet site must satisfy all of the following criteria:
• the trading name and the URL must not have any substantial differences in wording. This will
maintain consistency and reduce any potential cardholder confusion;
• a clear and complete description of the goods and services offered for sale;
• contact information – trading name, Australian Business Number (where required), address,
telephone number and fax number where available;
• a clear explanation of shipping practices (including overseas policy, if applicable) and delivery
policy/timeframe;
• transaction currency: Westpac merchants can process and settle in AUD amounts only;
• total cost of the goods or services purchased, inclusive of all shipping charges plus GST
where applicable;
•
•
•
•
card scheme brand marks are displayed wherever payment options are presented;
•
•
•
•
•
•
security capabilities and policy for transmission of payment card details;
export restrictions (if any) – countries to which the merchant does not ship;
a clear refund/return policy;
consumer data privacy policy – advises what you plan to do with information collected from
your customers;
transmission policy;
all transactions must be processed through 128 bit (or higher) SSL encryption;
each merchant domain name must utilise separate payment pages;
all information must be accurate in all respects; and
you must use digital certificates to establish a secure browser session between you and
your customer.
• Your website must not:
• contain anything that constitutes or encourages a violation of any applicable law or regulation,
including but not limited to the sale of illegal goods or the violation of export controls, obscenity
laws or gambling laws;
• contain any adult or pornographic content;
• offer for sale goods or services, or use to display materials, that may be considered by a
reasonable person to be obscene, vulgar, offensive, dangerous, or are otherwise inappropriate;
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Merchant Operating Guide
• utilise unaccredited payment pages. Payment pages must be accredited by Westpac or
an accredited service provider (of Westpac’s choosing) and must adhere to our security
requirements; and
• you should not change the types of goods or services sold through your merchant facility without
first providing Westpac with written notice, and then receiving written consent from Westpac
confirming the change has been approved.
The internet poses specific risks to Merchants. Whilst the cardholder’s details may be encrypted and
online authorisation received, the authorisation does not ensure chargeback relief.
It is essential that you understand the term ‘authorisation’– what it means, and what it does
not mean.
What authorisation DOES mean:
• the account number is valid;
• the card has not been reported lost or stolen (although it may in fact be lost or stolen); and
• there are sufficient funds available to cover the transaction.
What authorisation DOES NOT mean:
• an authorisation does NOT confirm that the person providing the card number is the
legitimate cardholder.
Although it is important to obtain an authorisation for each transaction, it does not protect you from
the risk of fraud or chargeback. Significant risk of fraud remains even though authorisation has
been obtained.
Online Authentication – 3D Secure
Visa and MasterCard have jointly attempted to reduce this risk placed on Internet merchants by
developing an online cardholder authentication service known as ‘Verified by Visa’ and ‘MasterCard
SecureCode’. A term called ‘3D Secure’ refers to the technology platform through which this service
is offered.
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Verified by Visa and MasterCard SecureCode work as follows:
•
•
•
•
a cardholder registers with their bank;
the cardholder creates a password;
cardholder browses merchant website and selects goods/services to purchase;
when a cardholder attempts to make a purchase, a window pops up on screen requesting the
cardholder to enter the password they previously created when registering with their bank. The
3D Secure software can detect if a card is enrolled or needs to be enrolled. For cards that are not
able to support this service, the standard authorisation process is followed;
• upon the cardholder entering the password, the information is routed to the cardholder’s bank for
verification. The result of the password verification check is then sent to the merchant, advising
whether the purchaser entered the correct password. If the wrong password is entered, it is likely
that the purchaser is not the rightful cardholder; hence, the merchant should not proceed with the
transaction as liability then shifts back to the merchant.
The primary benefit to merchants of these verification processes is the chargeback liability shift that
occurs. Subject to a few exceptions, if a merchant attempts to authenticate a purchaser using 3D
Secure, both the cardholder and their bank may lose the right to make a chargeback claiming the
cardholder did not authorise the transaction. This is irrespective of whether the cardholder or their
bank subscribe to 3D Secure – all that matters is the merchant has implemented 3D Secure, and
attempted to verify the cardholder’s password.
If the password verification check fails (the purchaser entered the wrong password), you should not
proceed with the transaction. If you proceed with the transaction after a cardholder has failed the
verification check, you will incur the liability should a chargeback result.
While 3D Secure is available, there are still localised regions that do not support the liability shift.
This allows global merchants to remain at some risk, as some transactions would not be covered by
the use of this solution. Until such time as technology is widely available to certify use by the true
owner, we strongly recommend that internet merchants make personal contact with the cardholder
by telephone to confirm the transaction, especially for large sales.
6.2
Correct operation of an internet site
Transactions conducted by cardholders via your internet site are processed automatically through
connections between your site and us. We do not warrant that the provision of the services will be
continuous, uninterrupted or without errors.
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Merchant Operating Guide
6.3 Internet gambling
An online gambling merchant is a merchant that provides any form of gambling services over the
internet or other networks. Gambling services include, but are not limited to:
•
•
•
•
•
betting
lotteries
casino-style games
funding an account established by the merchant on behalf of the cardholder
purchase of value for proprietary payment mechanisms, such as electronic gaming chips
If you are an online gambling merchant, your internet site must contain all of the
following information:
• Internet gambling may be illegal in the jurisdiction in which you are located; if so, customers are
not authorised to use their payment card to complete this transaction;
• a statement of the cardholder’s responsibility to know the laws concerning online gambling in the
cardholder’s country of domicile;
• a statement prohibiting the participation of minors;
• a statement promoting responsible gambling and awareness of gambling support associations
(such as Gamblers Anonymous);
• a complete description of all of the following:
– rules of play;
– cancellation policies;
– pay-out policies
– refund policies (even if your policy is not to refund, it must still be advised to your Cardholding
customers);
• a statement recommending that a cardholder retain a copy of all transaction records and
merchant policies and rules;
• you must not use the refund function to disburse winnings to cardholders.
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7.0Additional instructions for
Hotels/Motels and Motor
Vehicle Rental Agencies
This section only applies where your business provides hotel/motel accommodation or hires out
motor vehicles.
7.1
Authorisation of transactions
Although we allow pre-authorisations to be made to attempt to ensure customers have funds to
cover all expected expenses, you must obtain prior approval from your customer before any preauthorisation is made. You must also advise the customer of the pre-authorisation amount.
For hotels/motels: the pre-authorisation amount can be based on the customer’s intended length of
stay at check-in time, and the room rate, including applicable tax(es).
For motor vehicle rental agencies: the pre-authorisation can be based on the cardholder’s
intended car rental period, the rental rate, distance rates and any applicable tax(es). The estimated
transaction amount should not include charges that cover potential vehicle damages or the
insurance deductible amount.
If you have an electronic terminal, you can obtain a pre-authorisation using your terminal. Where you
are required to use manual sales vouchers you must obtain authorisation. You may obtain additional
authorisations for additional amounts above any amount already authorised after the check-in or
rental pick-up date and prior to checkout or rental return date. You must obtain prior approval from
your customers before any authorisation is made.
If you have an electronic terminal, you must process the final sale through the electronic terminal
as a ‘checkout’ transaction using the authorisation(s) previously obtained. Where you use manual
sales vouchers, you must obtain a final or additional authorisation, if the actual transaction amount
exceeds 10% more or less than the total of your authorised amounts. You must request that the
original authorisation request be cancelled.
Please note: Authorisations only affect cardholder’s credit limit for a few days. The number of days
varies by financial institution.
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Merchant Operating Guide
7.2
Delayed or amended charges
You may process delayed or amended charges appropriate to your business if the cardholder has
agreed to cover these delayed or amended charges. These services may include accommodation,
food or beverage charges, taxes, insurance, rental fees, parking tickets and other traffic
infringement notices/violations.
For any delayed or amended charges, manual imprinter merchants must create a manual sales
voucher that includes the words “Signature on File” where the cardholder would normally sign and
send a copy to the cardholder at the address shown in your records together with a copy of the
supporting documentation.
Electronic merchants should process a mail/telephone order transaction and forward
documentation to the cardholder.
Where a delayed or amended charge is disputed by the cardholder, you must provide us with all of
the required supporting documentation outlined above within 14 days of our request.
7.3
Additional instructions for delayed or amended
charges by car rental agencies
If the charge is for parking ticket or traffic violation, please process the transaction to the
cardholder’s account within 80 days of the violation or 3 business days after your payment of the
penalty, whichever is the earlier. You need to hold a copy of the documentation from the appropriate
civil authority, including the registration number of the rental vehicle, time and location of the
violation, statute violated, and the amount of the penalty.
If the transaction is for rental vehicle damage, you must process the transaction to the cardholder’s
account within 80 days of when the damage occurred, or 3 business days after your payment of
repairs, whichever is the earlier. You need to hold all of the following:
•
•
•
•
•
•
copy of the rental agreement;
estimated cost of the damages from an organisation that can legally provide repairs;
police accident report, where applicable;
documentation showing the cardholder’s consent to pay for damages with his card;
any other pertinent documentation available to demonstrate cardholder’s liability;
copy of your insurance policy if you require the cardholder to pay an insurance deductible in case
of damages.
Transactions may be successfully disputed if a signed and imprinted voucher, specific to the
damage, is not obtained.
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8.0 Fighting fraud
At Westpac, we take fraud seriously, and you should too.
Fraud can cost your business significant amounts of money, and certain types of merchants – based
on the type of goods sold – are more prone to fraudulent transactions than others.
We believe it is essential for you to have a sound understanding of credit card fraud, how it can be
detected and how it can be prevented.
And because we do consider that credit card fraud is a very serious issue, we have developed a
brochure to assist you in fighting fraud.
This brochure is entitled “Protecting business against credit card fraud”. We strongly urge you to
read this brochure carefully, and to keep it close as a handy reference guide. If you do not have a
copy of this brochure, please telephone our Merchant Help Desk on 1800 029 749 to obtain one.
ADDITIONAL FRAUD PREVENTION INFORMATION IS AVAILABLE
ON THE WESTPAC WEBSITE AT:
www.westpac.com.au
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Notes
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MBG001 (02/12) 265507
© 2012 Westpac Banking Corporation ABN 33 007 457 141. AFSL and Australian credit licence 233714.