The information in this packet includes summaries of certain requirements imposed by FIS, the Card

Associations and applicable law relating to merchant acceptance and processing of credit and debit card

transactions.

This packet is not meant to be a detailed description or a complete listing of all these requirements or of

your obligations. We urge you to read your Merchant Agreement, the rules and regulations of the Card

Associations and applicable law in order to understand fully all of your obligations as a merchant

accepting card transactions and, if appropriate, consult with your own legal advisor. We also note that

these requirements may change over time, and that you will be responsible for complying with any such

changes as they come into effect.

Fidelity Information Services, LLC is a registered ISO of Wells Fargo Bank, N.A., Concord, CA

Fidelity Information Services, LLC is a registered ISO of ICBA Bancard, Washington, DC

FIS Merchant Processing Solutions .......................................................................................................... 1

What is Covered in this Guide? ....................................................................................................... 1

Terminals and Technical Support ............................................................................................................. 1

Help Desk Support ........................................................................................................................... 1

Getting Started: Clients Purchasing Terminals ................................................................................. 1

Getting Started: Clients with Existing Terminals ............................................................................... 1

Merchant Account Support........................................................................................................................... 1

Types of Assistance Provided by Merchant Support ........................................................................ 1

Your Merchant Intelligence Center (MIC) ......................................................................................... 2

Changes that Must be Communicated to Merchant Support ........................................................... 2

Card Acceptance Policies .......................................................................................................................... 2

Dollar Minimums and Maximums ..................................................................................................... 2

Surcharging ...................................................................................................................................... 2

No Split Sales ................................................................................................................................... 3

Include Taxes ................................................................................................................................... 3

Delivery of Goods and Services ....................................................................................................... 3

No Laundering .................................................................................................................................. 3

No Cash Refunds ............................................................................................................................. 3

No Transactions on Merchant’s Own Card ...................................................................................... 3

Zero-percent Tip Authorizations ....................................................................................................... 3

Asking for Identification .................................................................................................................... 4

Authorization Overview .............................................................................................................................. 4

Authorization Responses ................................................................................................................. 4

Approved Card ....................................................................................................................... 4

Declined or Card Not Accepted .............................................................................................. 4

Call, Call Center or Referral ................................................................................................... 4

No Match ................................................................................................................................ 4

Pick Up Card .......................................................................................................................... 4

Voice Authorization Center ............................................................................................................... 4

Loss Prevention: Managing Risk and Avoiding Chargebacks ............................................................... 5

Suspicious Circumstances - When to Ask for Identification ............................................................. 5

Do not accept the card if... ............................................................................................................... 5

Things to Remember ........................................................................................................................ 5

EMV/Chip Card Overview ............................................................................................................................. 6

EMV – How does it work? ................................................................................................................ 6

How to Read Your Merchant Statement .................................................................................................... 7

Statement Header ............................................................................................................................ 8

Summary .......................................................................................................................................... 8

Contact ............................................................................................................................................. 8

Statement Messages ........................................................................................................................ 8

Card Summary ................................................................................................................................. 8

Deposits Funded by Batch ............................................................................................................... 9

Adjustments ..................................................................................................................................... 9

Charges .......................................................................................................................................... 10

Penalties & Fines ........................................................................................................................... 10

Understanding Billing and Minimizing Processing Costs .................................................................... 11

What are non-qualified transactions? ............................................................................................ 11

Why is a surcharge assessed on non-qualified transactions? ....................................................... 11

What can I do to reduce the number of non-qualified transactions I have and minimize my transaction costs? .......................................................................................................................... 11

Best Practices ................................................................................................................................ 11

What is Covered in this Guide?

This guide contains information and materials to help you get started. Please review the information and

keep it nearby for easy reference. This guide can also be used for training new employees about

accepting cards.

Look to FIS for a full range of merchant solutions; including, electronic check conversion, check

verification, check warranty services, gift card and loyalty programs. For further details, please ask your

Relationship Manager to put you in contact with your sales professional.

If your terminal becomes inoperable, please call the Help Desk at the number provided on your

Terminal Sticker or Quick Reference Guide (QRG).

Help Desk Support

Need terminal or transaction assistance? Technical support for your card and check authorization

equipment is just a phone call away. The Help Desk is available 24/7, and the contact number is printed

on a sticker that has been affixed to your terminal, and is also provided on your Quick Reference Guide

(QRG). Call the toll-free number any time you need technical assistance.

Getting Started: Clients Purchasing Terminals

Now that you have received your terminal, you can begin processing transactions. In most cases, your

terminal is ready to process transactions right out of the box. Please take a little time to ensure that all of

the necessary devices (terminal, PIN pad or check readers), power units and cords have been included in

your package. If anything appears to be missing or if the terminal is not the one you expected to receive,

contact Merchant Support.

Getting Started: Clients with Existing Terminals

By the time you are reviewing this kit, you may already be processing with FIS; if so, welcome. However, if

you have not received your terminal programming to

start processing transactions with FIS, you may call the Help Desk to obtain your new download.

Types of Assistance Provided by Merchant Support

Merchant Support is available to assist you with a variety of needs for your account, including:

– Researching transactions and deposits

– Answering funding questions

– Performing address changes and account updates

– Ordering supplies and free signage

– Assisting with terminal operation or error messages, as well as printer malfunctions

Your Merchant Intelligence Center (MIC)

The Merchant Intelligence Center (www.merchantintel.com/MIC) is available to you 24/7 and is your

number one resource for most of your account needs, including;

– Accessing your statements

– Viewing transaction history, as well as deposit and batch history

– Completing your PCI Compliance requirements and avoiding non-compliance fees

– Managing your contact information, including your preferred email address to ensure you’re

receiving alerts regarding your account/program

Contact Merchant Support if you need MIC assistance.

Changes that Must be Communicated to Merchant Support

From time to time, your business may experience change. Some changes require updates to your

merchant relationship, such as:

Changes to your bank account number or “Operating Account”

NOTE One of the following will also be required to support this request:

• A voided check from the new/updated Business Checking Account OR

• A letter from your bank, on bank letterhead, confirming the new Account Number and

business name.

– Changes in ownership or ownership structure

– Updates or corrections to your Federal Tax Identification Number (TIN)

– Changes to your processing method

– Changes to the type or kind of business

– When you employ a third-party provider(s), begin operating a website or add payment acceptance

to an existing account

– Changes to your DBA name, address or telephone/fax number

– When you enter into an agreement with a third party offering a cash advance loan program, in

which you pledge future credit card receivables as collateral

– When you begin a gift card program

Dollar Minimums and Maximums

Imposing minimum or maximum purchase amounts on credit card transactions is a violation. Always

honor valid Visa®, Mastercard®, American Express® or Discover® Network cards in your acceptance

category, as applicable to your program - regardless of the dollar amount of the purchase. Merchants are,

however, allowed to impose a $10.00 minimum amount on debit card transactions.

Surcharging

Surcharging rules vary by State. Please contact Merchant Support for specific information. You may offer

a discount for cash transactions, provided that the offer is clearly disclosed to customers and the cash

price is presented as a discount from the standard price charged for all other forms of payment.

No Split Sales

Prepare one sales receipt per transaction, using the full transaction amount. Merchants are not allowed to

split the cost of a single transaction for a single cardholder account between two or more sales receipts in

order to avoid authorization limits.

Include Taxes

Include required taxes in the total transaction amount. Do not collect taxes separately in cash. This policy

reflects the needs of the many Visa, Mastercard American Express and Discover Network cardholders

who must have written records of the taxes they pay for goods and services.

Delivery of Goods and Services

Deliver the merchandise or services to the cardholder at the time of the transaction. Cardholders expect

immediate delivery of goods and services unless other delivery arrangements have been made. For card-

not-present transactions, cardholders should be informed of delivery method and tentative delivery date.

No Laundering

Deposit transactions only for your own business. Depositing transactions for a business that does not

have a valid merchant agreement is called laundering or factoring. Laundering is not allowed; it is a form

of fraud associated with high chargeback rates and the potential for forcing merchants out of business.

No Cash Refunds

Complete a credit receipt for merchandise returns or adjustments. Do not provide cash refunds for

returned merchandise originally purchased with a card. The Card Networks do not permit cash refunds for

any credit or debit card transaction.

By issuing credits, you protect your customers from individuals who might fraudulently make a purchase

on their account and then return the merchandise for cash.

No Transactions on Merchant’s Own Card

Merchants should not use their own card, or one to which they have access, to process a transaction for

the purpose of obtaining credit for their own benefit.

Zero-percent Tip Authorizations

Transaction amounts should not be estimated. For restaurant merchants, in particular, this means debit or

credit card transactions should be authorized only for the known amount of the check. Estimated tip

amounts should not be added. Cardholders today can check their account balances almost instantly via

the Internet or ATMs. An authorization that includes an estimated tip can reduce their available cash or

credit balance by an unrecognizable amount.

Example: A cardholder’s restaurant bill is $100, but the staff adds on a 20 percent tip that is $20 for

authorization purposes. If the cardholder only adds on a $15 tip, or leaves the tip in cash, the

authorization “hold” on the larger amount may make it appear he or she was overcharged. And that, in

turn, might result

in angry phone calls from unhappy customers and the potential for reduced business.

To ensure zero-percent tip authorization for all transactions, merchants should:

Instruct staff to authorize only for the sale amount. Your staff training and materials should

emphasize the importance of authorizing only for the known amount of the sale, excluding any

estimated tip.

Ensure your authorization system is set up for zero-percent tip authorization.

Asking for Identification

Although Payment Network rules do not stop merchants from asking for cardholder ID, merchants cannot

make an ID a requirement. Therefore, merchants cannot refuse a purchase transaction because a

cardholder refuses to provide ID. Laws in several states also make it illegal for merchants to write a

cardholder’s personal information, such as an address or phone number, on a sales receipt.

You may ask for ID if the card is not signed. You must have the cardholder sign it and check the signature

against two other pieces of identification, including one government-issued ID.

The authorization process allows the card issuer to approve or decline a transaction. In most cases,

authorizations are processed electronically in a matter of moments. To protect against fraud, the card

issuer may request additional information about the transaction. If properly done, authorizing a

transaction is quick and easy, and protects merchants against fraud and chargebacks. An authorization

should be viewed as an indication that funds are available at the time of authorization and a card has not

been reported as lost or stolen. It is not proof that the true cardholder or a valid card is involved in a

transaction. It is highly recommended to settle all authorized transactions daily or within 24 hours of the

time of the authorization. Settling in this manner may prevent chargebacks and will prevent additional

expense fees.

Authorization Responses

Approved Card. Issuer approves the transaction. This is the most common response, as 95 percent of

all authorization requests are approved.

Declined or Card Not Accepted. Issuer does not approve the transaction. The transaction should not

be completed. Return the card and instruct the cardholder to call the card issuer for more information on

the status of the account.

Call, Call Center or Referral. Issuer needs more information before approving the sale. Most of these

transactions are approved, but you should call your Voice Authorization Center (phone number is on your

Terminal Sticker) and follow the instructions you are given. In most cases, an Authorization Agent will ask

to speak directly with the cardholder or will instruct you to check the cardholder’s identification.

No Match. The embossed account number on the front of the card does not match the account number

encoded on the magnetic stripe. Swipe the card again and rekey the last four digits at the prompt. If a “No

Match” response appears again, it means the card is counterfeit. If it can be done safely, keep the card in

your possession and make a Code 10 call. A Code 10 is a voice authorization request that alerts the

issuer of suspicious activity without alerting the customer.

Pick Up Card. Issuer wants to recover the card. Do not complete the transaction. Inform the customer

that you have been instructed to keep the card, and ask for an alternative form of payment. If you feel

uncomfortable, simply return the card to the cardholder.

Voice Authorization Center

Voice authorization response unit (VRU) and referrals for Code 10 operator can be reached by calling the

number listed on your terminal sticker.

Transactions charged back to you are a costly part of accepting credit cards. Merchants can minimize

chargebacks at the time of sale by making sure customers are satisfied and transactions are accurate.

Suspicious Circumstances - When to Ask for Identification

Card shows signs of tampering (account number or name on front of card looks uneven or

misaligned, or signature panel shows signs of erasure).

Customer is making multiple purchases of high-value items such as TVs, jewelry, etc. and insists

on taking everything, including large items immediately.

Customer acts nervous or appears to be buying without regard to price, color, size, etc.

Do not accept the card if...

The account number on the face of the card and the number displayed on the terminal do not

match, even if an authorization is received.

The hologram does not appear on the card, or if it appears in poor quality. Look for holograms on

Mastercard (world globes), Visa (flying doves) JCB (logo) and Discover (sphere). Some American

Express cards have a hologram of the American Express image embedded into the magnetic

stripe.

The transaction is occurring prior to the valid date or after the expiration date on the card. Ask for

another form of payment.

The card is unsigned. Ask for identification and have the customer sign the card in your presence.

If the customer refuses, do not accept the card.

NOTE: See the Asking for Identification section discussed previously in this guide for additional

information on this topic.

Things to Remember

Follow proper authorization procedures. If you need authorization assistance, or if you receive a

Call Referral response, call the Voice Authorization Center number listed on your Terminal Sticker.

Read the account number embedded in the chip or magnetic stripe by inserting or swiping the

card through a terminal.

Always issue a credit to the card account used in the original sale.

Ask for another form of payment if a decline is received. Do not use other sources to try to obtain

an authorization and never use an Authorization Code provided by the cardholder.

EMV is the worldwide standard for chip-based payment transactions. It stands for “Europay, Mastercard,

and Visa,” the three companies that originally developed the specifications for the technology. Today, it’s

supported by several other companies; including Discover, American Express, and UnionPay ‒ through

an organization called EMVCo.

EMV – How does it work?

Chip card usage and acceptance at the point-of-sale seeks to prevent the use of counterfeit, lost or stolen

cards at card-present acceptance locations.

The data on magnetic stripes is static, which means that it is the same for every transaction - making it

relatively easy for fraudsters to hack the terminal or the network and steal card information. To make it

harder for hackers to capture the card data, chip card technology (EMV) was developed. An EMV card has

a microprocessor chip that is virtually impossible to duplicate.

EMV validation occurs during the interaction between the card and the POS hardware. Together, they

enable the validation that the card presented at the POS is “the original, Issuer-produced card”. Further

validation of the cardholder can also be accomplished via PIN entry.

The result, according to most of the major players in the payments industry, is better protection against

counterfeit fraud.

For more information about EMV, refer to your PCI Compliance and EMV Payments guide.

Important: Merchants should review monthly statements and report questions or missing transactions

within 30 days of receipt of statement. It is also important to review your monthly statement for messages

regarding your merchant program.

Statement Header

Address of FIS Merchant Solutions

Statement Date The timeframe applicable for the statement’s data

Merchant Number The unique identification number assigned to your company. If you have statement

inquiries, please be prepared to provide your merchant number

Monthly Fees Account Bank account number used for transmitting funds for your business

The Doing Business As (DBA) name and Address currently on file for mailing purposes

Summary

Total Net Deposits Dollar amount representing the sum of deposits for the statement’s timeframe

Adjustments Sum of adjustments for the statement’s timeframe

Charges Sum of charges and fees for the statement’s timeframe

Penalties & Fines Sum of penalties and fines for the statement’s timeframe

Total Charges Sum of Charges, Penalties and Fines

Total Collected Sum of the amounts collected daily from the Deposits Funded by Batch section

Amount Due Total Charges plus Total Penalties and Fines, minus the Total Collected

Total Amount Funded Dollar amount representing the sum of deposits, adjustments, charges and fees,

which has been applied to your merchant account

Contact

Contact information relevant to your Merchant program

Statement Messages

Important information provided each month regarding your account and merchant program

Card Summary

Plan Code Identifies the type of card used. See the list of codes at the bottom of the statement

Number of Sales Total number of sales or cash advances for current statement period

Amount of Sales Total dollar amount of sales or cash advances for current statement period

Number of Credits Total number of credits for this statement period

Amount of Credits Total dollar amount of credits for this statement period

Net Sales Total dollar amount of sales or cash advances less total dollar amount of credits

Average Ticket Average dollar value of sales transactions

Deposits Funded by Batch

Date Submitted Day of month that batch was submitted

ACH Reference Code Reference number assigned to the batch for tracking purposes

Number of Sales Total number of sales or cash advances for the batch

Amount of Sales Total dollar amount of sales or cash advances for the batch

Amount of Credits Total dollar amount of credits for the batch

Net Deposit Total dollar amount of sales or cash advances, less total dollar amount of credits and paid

discount. Deposit, adjustment chargeback totals appear under each respective section.

Daily Collected Amount Sum of fees calculated into the batch’s daily funded amount, if applicable

Funded Amount Dollar amount transmitted in batch

Total The total amounts for each column

Adjustments

Date Day of the month the adjustment was submitted

Description Brief detail of the item billed

Amount Total dollar amount to be billed

Total The total dollar amount of adjustments to be applied

Charges

Transaction Type Brief description of the charge/fee

Quantity Total number of items billed

Amount Total dollar amount used to calculate the amount billed (This may not be used for all items.)

Description Brief detail of the item billed

Rate The dollar amount charged per item

Per Item Individual item fees

Total Total dollar amount to be billed

Total Charges Sum of all charges, fees, penalties and fines billed on this statement

Penalties & Fines

Transaction Type Brief description of the charge/fee

Quantity Total number of items billed

Amount Total dollar amount used to calculate the amount billed (This may not be used for all items.)

Description Brief detail of the item billed

Rate Dollar amount charged per item

Per Item Individual item fees

Total Total dollar amount to be billed

Total Non Compliance Total amount of charges designated as Non Compliance

Total Penalties & Fines Total amount of penalties and fines

What are non-qualified transactions?

The Card Brands establish expense fees based on data submitted and the risk associated with the

particular transaction. Your merchant account and the agreed-upon rates and fees are based on an

expense level that is established according to your processing method and business type. A non-qualified

transaction is a transaction that does not qualify at the expected level because it does not meet the Card

Brands’ network requirements for that level. Your account will be billed the difference in cost between the

expected expense rate and the level at which the transaction actually qualified, plus a surcharge.

Example: The expense level for an account may require that the card be present and swiped/inserted as

part of the transaction. The rate is lower because more chip or magnetic stripe content data is submitted,

and since the card is present, there is lower associated risk. If the card is not present, the transaction will

not meet the requirements for the expense level - it will be considered non-qualified and will cost more to

process.

Why is a surcharge assessed on non-qualified transactions?

Merchant-acquiring institutions assess a surcharge to cover the additional handling costs associated with

non-qualified transactions, such as increased processing and operational expenses.

What can I do to reduce the number of non-qualified transactions I have and minimize my transaction costs?

To minimize processing costs and ensure that your transactions are clearing at the best possible expense

rate, you should observe the best practices referenced below as indicated for your processing method

and business type.

For additional advice on reducing transaction processing costs, please contact Merchant Support.

Best Practices

Make sure your card processing equipment is functioning properly.

Do not bypass any terminal or software prompts for specific data; doing so will affect transaction

costs, your ability to prevent fraud and chargebacks, and your compliance with Payment Network

rules.

If you are a merchant using third-party software, ensure the settings established in your software

are the most appropriate for the processing nature of your business.