MC partial auth, auth reversal, May 1st change?

[nickc]

Anyone else getting this from their bank? Able - are you aware of this requirement? Will there be support for these additional transaction types over existing gateways?

IMPORTANT: Contact your POS software provider to prepare for the May 1, 2010 deadline for
MasterCard debit and prepaid card authorization requirements

Dear Customer,
MasterCard has announced mandatory changes to its debit and prepaid card authorization procedures that
require an update to your Point of Sale (POS) system. Beginning May 1, 2010 MasterCard will require
merchants to perform partial authorizations and real-time authorization reversals for debit and prepaid
card transactions. In addition, merchants will be required to support available balance responses for
prepaid card transactions. New data elements will need to be passed between MasterCard and your POS
system which will require you to make programming enhancements.

[nickc]

Really? No-one? This looks to impact every retailer in the US and failure to comply will raise your transaction rates.

Here's the best additional info I've been able to dig up so far:
- http://www.firstdata.com/downloads/part ... upport.pdf
- http://blog.vantagecard.com/post/Master ... ponse.aspx

Considering that this is a "mandate", info (especially on MasterCard's own sites) is pretty hard to come by.

Again; AbleCommerce - what work is being done to support the new partial authorization and real-time authorization reversal transaction types?

[Shopping Cart Admin]

Hello Nick,

We've not heard anything from ANY of our payment gateways about this change in requirements, I just spent 1/2 hour reading/searching and there is a lack of data on this topic, but what I do see appears to be POS related. First data which primarily does POS, is the only 'gateway' I can find in any google searches mentioning this.

I'm not saying it doesn't affect us, I'm just unable to locate anything which suggests this does affect us. You'd think with all the mail lists we're on with various processors, we'd of heard of something by now.

[nickc]

Hey Mike,

Thanks for having a look. I was kind of hoping the same thing, until I read:

This requirement applies to all merchants in the following categories, including those submitting e-commerce and other card-not-present transactions:

I'll update this post when I have more to comment about. Mastercard Online (mol.mastercard.net) requires approval to read the referenced bulletins, and I haven't heard back from them yet.

[DBounlom]

Hey guys. We also received this letter, and I am wondering if we need to do any updating on our AC 7.0.3 site. We are using authorize.net for MC transactions.

[Shopping Cart Admin]

Hello All,

Do you also have a POS terminal?

I'd done more research since my last post..my thoughts haven't changed. This is directed at POS terminals, ecommerce is routinely handled via POS terminals, so that's 'misleading'.

We've not received ANYTHING from any of the payment gateways: Most (all) would require substantial changes to their system to accomplish this.

[DBounlom]

Hi Mike,

Sorry for being so ignorant, but I am a little confused for what POS (Point of Sale) terminals mean. When we first received this letter, I assumed it was for Ablecommerce and how it interacts with authorize.net. Now, I am getting the impression that this letter only affects the "virtual terminal" when I log on to www.authorize.net. Is that what you are trying to imply? Thanks.

[afm]

POS terminals are physical devices used to swipe cards. For example,

http://www.merchantexpress.com/Hypercom_T7Plus.htm

They often support keying in the credit card number (such as the one pictured). Many ecommerce merchants choose to collect credit card numbers from online sales, but process the charges by manually typing the card number into their POS terminal.

Mike is suggesting that the letter only applies to those ecommerce merchants, not to merchants that process charges using a real-time payment processing service.

[DBounlom]

Thanks for clearing up the confusion.

[Shopping Cart Admin]

Hello All,

Authorize.net JUST sent us an announcement on this which clarifies that it will be required. The deadline for authorize.net is June 30th, 2011. I'm guessing given the soft roll out of this 'requirement' that the other processors will also be given extended deadlines.

http://www.authorize.net/support/pafaqs/

[mfreeze]

Here is the content of the letter my Authorize.net customers received. the line in red addresses shopping cart support. Is there any ETA on these changes being made in various releases of AC?


Dear Authorize.Net Merchant:
MasterCard and Discover are modifying their rules concerning the processing of debit, prepaid and gift cards. This e-mail includes important information about the new requirements and the timelines regarding Authorize.Net's support of the requirements, so please read it thoroughly.
MasterCard's rule changes go into effect May 1, 2010, and Discover's rule changes go into effect April 16, 2010. However, Authorize.Net, MasterCard and Discover have worked together to extend these dates for all merchants using Authorize.Net solutions. Our merchants will now have until June 30, 2011, to implement support for the requirements within their systems.
What are the requirements?
MasterCard and Discover are requiring that all merchants support the following:
+ Balance response transactions — For prepaid and gift cards, once the card has been used, the remaining account balance will be transmitted along with the authorization response. The remaining balance must be printed on the customer receipt, displayed on the Web page or point-of-sale terminal, or both.
+ Partial authorization transactions — When a customer's transaction amount exceeds the balance available on their debit, prepaid or gift card, instead of declining the transaction, a partial authorization for the amount available to the customer will be returned. This will allow the customer to pay for the remaining amount with another form of payment. This is called a split-tender transaction.
+ Authorization reversals — An authorization reversal is a real-time transaction initiated when the customer decides that they do not want to proceed with the transaction, or if the merchant cannot complete the transaction for any reason. Authorization reversals free up the customer's available balance on their debit, prepaid or gift card.
What steps is Authorize.Net taking to support these requirements?
Authorize.Net will be updating our systems over the coming months to support the requirements, but will be dependent on each processor's readiness. For a table of when we anticipate we will support the requirements with each processor, please visit http://www.authorize.net/support/pafaqs/#when.
What do I need to do to support the requirements?
The steps that you will need to take to support the requirements depend on how you connect to the payment gateway. For example, if you connect using a shopping cart, point-of-sale device, or other solution, you will need to contact your solution provider to confirm that they will be supporting the requirements. If you connect using a direct integration, you should contact your Web developer for assistance. Please direct your Web developer to http://www.authorize.net/support/pafaqs/#do for information on the changes they will need to make.
Do I have to support the requirements?
MasterCard and Discover are requiring all merchants to support the requirements with the exception of merchants that exclusively process transactions via batch uploads, mail order/telephone order (MOTO), or recurring payment transactions. Your Merchant Service Provider (MSP) is ultimately responsible for determining if the requirements apply to your business, so please contact them for assistance in determining if your company is exempt.
Once again, these requirements will not be enforced for Authorize.Net merchants until June 30, 2011. However, we wanted to bring them to your attention now so that you have plenty of time to plan for their implementation.
For more information on the requirements, including how they affect our value-adding services, please visit our FAQ page at http://www.authorize.net/support/pafaqs/.
Thank you for your attention to these important changes and for being an Authorize.Net merchant.
Sincerely,
Authorize.Net

[Shopping Cart Admin]

Hello Mary,

None of the processors even support it yet, so it's pretty much impossible to give an ETA. We'll certainly meet the June 30 2011 deadline

[heinscott]

Will updates be available for all versions?
Thanks,

Scott

[Shopping Cart Admin]

Hello Scott,

I'm guessing this will be to big of change to 'patch' older versions.

[dlb]

Given that it is almost June 2011, is there any update on AbleCommerce's ability to handle Split Tender transactions?