VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

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1 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

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5 Table of Contents Make Payment Processing Faster While Increasing Sales Visa Easy Payment Service How Visa Easy Payment Service Works Merchant Benefits Merchant Best Practices Frequently Asked Questions Country Transaction Amount Limits VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES i

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7 Make Payment Processing Faster While Increasing Sales More consumers are using their cards for everyday, low value purchases because it s quicker, easier, and more convenient than cash. For merchants, there is no better time to begin accepting card payments for low value transactions and take advantage of this change in consumer preference. How Can You Benefit from Card Acceptance? Visa Can Help With Low Value Transactions Merchants who accept card payments for low value transactions enjoy a number of benefits: Enhanced Customer Service. By accepting cards for low value transactions, merchants provide their customers with a better, faster, and more secure way to pay for their goods and services, which can lead to happier customers and increased customer loyalty. Higher Average Tickets. Industry studies show that customers who use cards to pay for low value purchases tend to spend more compared to those who use cash. Point-of-Sale (POS) Efficiencies. Card acceptance can help accelerate payment processing at the register by eliminating the hassle of cash management procedures. Even the smallest improved efficiencies in a single transaction can add up to faster checkout, shorter lines, and greater sales volume potential. SUCCESS STORY: QUICK SERVICE RESTAURANTS In recent years, Quick Service Restaurants (QSRs) have reaped tangible benefits from small ticket card acceptance: Visa card usage in the QSR segment has far outpaced growth in any other merchant segment. Recent statistics show that card acceptance at QSR locations can increase efficiency when serving customers because it reduces the time it takes for customers to complete a transaction. Visa offers a program that can help make everyday, low value purchases even faster and easier for merchants and their customers. Visa Easy Payment Service removes the need for a cardholder signature or PIN and eliminates receipt requirements on qualified transactions. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 1

8 Visa Easy Payment Service Visa Easy Payment Service (VEPS) is a global program that allows qualifying low value transactions at specific merchants to take place without cardholder signature or PIN and without a receipt, unless a receipt is requested by the cardholder. No Signature or PIN To participate in VEPS, merchants must belong to one of the eligible Merchant Category Codes (MCCs). Over 98% of all MCCs are eligible; the 21 MCCs excluded from participating in VEPS are outlined in the following table. MCC DESCRIPTION 4829 Wire Transfer Money Orders 5542 Automated Fuel Dispensers 5960 Direct Marketing Insurance Services 5962 Direct Marketing Travel Related Arrangement Services 5964 Direct Marketing Catalog Merchants 5965 Direct Marketing Combination Catalog and Retail Merchants 5966 Direct Marketing Outbound Telemarketing Merchants 5967 Direct Marketing Inbound Telemarketing Merchants 5968 Direct Marketing Continuity/Subscription Merchants 5969 Direct Marketing/Direct Marketers (Not elsewhere classified) 6010 Financial Institutions Manual Cash Disbursements 6011 Financial Institutions Automated Cash Disbursements 6012 Financial Institutions Merchandise and Services 7995 Betting, including Lottery Tickets, Casino Gaming Chips, Off Track Betting, and Wagers at Race Track 9405 Intra-Government Purchases (Government only) 9700 International Automated Referral Service (Visa use only) 9701 Visa Credential Server (Visa use only) 9702 GCAS Emergency Services (Visa use only) 9751 UK Supermarkets Electronic Hot File (Region use only) 9752 UK Petrol Stations Electronic Hot File (Region use only) 9950 Intra-Company Purchases 2 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

9 How Visa Easy Payment Service Works Transaction Qualification Criteria No Signature or PIN VEPS is available on all Visa card types as long as the following transaction criteria are met: Transaction is a Visa or Visa Electron transaction. Transaction amount is equal to or below the VEPS country transaction amount limit. 1 Transaction takes place at a qualified merchant. Transaction occurs in a face-to-face environment. 2 The full, unaltered content of the magnetic stripe, or unaltered chip data, is read and transmitted in the message. Transaction is authorized. When a transaction qualifies for VEPS, most merchants do not need to obtain cardholder verification (signature or PIN) on the transaction. 3 TRANSACTION RESTRICTIONS The following transactions do not qualify for VEPS: Account funding Cashback Chip fallback Dynamic Currency Conversion Manual cash Prepaid load Quasi-cash On qualifying transactions, a receipt is not required unless requested by the cardholder. If a receipt is requested, it only needs to contain the following data. 4 Receipts are Optional Merchant name Total transaction amount Transaction date Confirmation that the customer paid using Visa or the truncated Visa account number The transaction receipt may be in the form of a cash register receipt provided it contains the minimum data listed above. Additionally, merchants are not required to retain receipts on qualified transactions. Merchants can either follow their existing receipt procedures or make changes to the acceptance environment to eliminate or streamline receipts (receipts continue to be required on transactions that do not meet VEPS transaction criteria). 1 Many countries have a VEPS limit defined in their local currency. Where a local currency limit does not exist, the default value is US$25. See Country Transaction Amount Limits on back page for details. 2 U.S. domestic transactions at unattended acceptance terminals that are US$15 or under as well as AP intra-regional proximity payment transactions at unattended acceptance terminals also qualify for VEPS. 3 For transactions in Visa Canada and Visa Central Europe, Middle East, and Africa (CEMEA), there are no changes to EMV PIN liability shift requirements. Merchants in EMV PIN-preferring regions will be liable for fraud chargebacks if there is no PIN verification when an EMV PIN-preferring chip card is used. 4 Reduced receipt data does not apply in the U.S. In the U.S., a receipt is only required if requested by the cardholder but the receipt must comply with the normal minimum receipt data requirements as outlined in the Visa International Operating Regulations. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 3

10 Merchants Benefits Faster transactions. VEPS can make Visa payment processing faster and easier for both merchants and customers. This is especially beneficial to high-volume merchants such as QSRs and supermarkets since it allows merchants to serve more customers and reduces customer time spent in line. Reduced receipt-associated costs. Merchants do not need to provide a transaction receipt, unless requested by the cardholder, and, in some markets, the receipt may contain significantly less data, helping reduce merchant paper costs. Eliminated retrieval requests. Merchants do not need to retain transaction receipt copies or respond to issuer retrieval requests, helping reduce their back-office costs. Greater chargeback protection. Merchants are protected against specific chargeback reason codes on qualifying transactions, which can result in reduced dispute handling costs. No new equipment. Although some POS systems may need to be modified, VEPS does not require any new equipment, making it easy for merchants to begin a VEPS program. 4 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

11 Merchant Best Practices Make Purchasing Faster and Easier at the POS Training Train your staff on the following: VEPS description and benefits. When staff members are comfortable with the program, they will be more effective in confidently answering cardholder questions. VEPS transaction processing. Your staff should have a firm understanding of proper VEPS transaction procedures and requirements. Training should include, but not be limited to: If a Visa card transaction amount is equal to or below the VEPS transaction amount limit (refer to Country Transaction Amount Limits on back page for details), merchant staff does not need to collect a signature or obtain a PIN. If a customer asks why a signature or PIN is not needed, sales staff can explain that Visa does not require a signature or PIN on transactions equal to or below the country s transaction amount limit (refer to Country Transaction Amount Limits on back page for details). Merchant staff can also explain that this policy provides faster processing and a better customer experience. Merchant staff is not required to provide a customer receipt unless the customer requests one. Receipts must contain all required data. For transactions in Visa Canada and Visa Central Europe, Middle East, and Africa (CEMEA), there are no changes to EMV PIN liability shift requirements. Merchants in EMV PIN-preferring regions will be liable for fraud chargebacks if there is no PIN verification when an EMV PIN-preferring chip card is used. As long as the transaction meets all other VEPS criteria, the merchant can enjoy the other benefits of the program such as eliminating the need to provide the cardholder with a receipt unless requested. Ensure that your staff understands and can explain the VEPS program benefits. During training, emphasize the program s benefits using clear and concise statements, such as: This program offers speed and convenience at check out for low value transactions. Find out if your merchant bank or processor is able to assist with training. Ask them if training materials are available. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 5

12 Signage Point-of-Sale Setup Customer Empowerment Consider developing No Signature or PIN Required signage reminders. Post double-sided signage at the POS so that it faces both your customers and your staff. If you need help developing the correct signage, contact your merchant bank, processor, or Visa representative. Work with your merchant bank to ensure that your business has been properly identified and set up. To avoid downstream transaction data processing problems, verify that your assigned Merchant Category Code accurately reflects your line of business. Make sure that your POS system is in good working condition and is properly programmed for VEPS processing. Check with your merchant bank or POS provider to confirm that your system has been properly programmed to accommodate VEPS transactions. Consult your acquirer to determine if it is beneficial to make any changes to your acceptance environment to support VEPS. Putting the appropriate technological solutions in place at the POS will be influenced by your current hardware and software environments. Example: If the device automatically prints a signature line on the receipt, modifications may be needed to eliminate this or to print that a signature is not required in the signature line. When in doubt, test it out. To integrate VEPS in multiple locations, first test integration at one or two locations. Testing can minimize possible customer service issues and help your staff understand what processes and procedures work best for your business. Contact your acquirer or Visa sales representative for help. Ask them for recommendations on handling unique transactions that are specific to your industry. Example: Supermarket and grocery stores should consider assigning dedicated staff members who are knowledgeable about VEPS to work their express lanes (which typically have more low value transactions). If possible, use customer-facing terminals. These terminals allow customers to initiate the payment transaction, which increases transaction speed and provides customers with greater convenience and an extra sense of security. 6 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

13 Frequently Asked Questions Q: What is Visa Easy Payment Service? A: Visa Easy Payment Service is a program that allows merchants to eliminate cardholder verification and receipts on qualifying low value transactions. It helps make the payment process faster, easier and more convenient for both cardholders and merchants. Q: Which merchants qualify to participate in VEPS? A: Merchants must belong to one of the eligible Merchant Category Codes (MCCs) to participate (98% of MCCs are eligible). For MCCs excluded from participating, refer to the table in the beginning of this document. Q: How does a transaction qualify for VEPS? A: A transaction qualifies for VEPS as follows: Transaction must be a Visa or Visa Electron transaction Transaction must take place at a qualified merchant Transaction must be low value. Transaction must be equal to or below the VEPS limit (limits are tailored to suit each country but where limits do not exist the default limit of US $25 (or local equivalent) applies. Refer to the Country Transaction Amount Limits chart in the back of this document for details Transaction must take place in a face-to-face environment 5 Transaction must be authorized Data must be transmitted in the message Q: Are there any transaction restrictions? A: Transactions that are restricted from participating in VEPS include: Account funding Cashback Chip fallback Dynamic Currency Conversion Manual cash Prepaid load Quasi-cash 5 U.S. domestic transactions at unattended acceptance terminals that are US$15 or under as well as AP intra-regional proximity payment transactions at unattended acceptance terminal also qualify for VEPS. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 7

14 Q: What are the VEPS receipt requirements? A: On qualifying transactions, merchants only need to provide a receipt when requested. If a receipt is requested, it only needs to contain a minimum set of data 6 as follows: merchant name, total transaction amount, transaction date, and confirmation that the customer paid using Visa or the truncated Visa account number. The transaction receipt may be in the form of a cash register receipt provided it contains the minimum data listed above. With these minimum data requirements, the merchant has the option to include all of the required data on a cash register receipt rather providing a separate receipt to the cardholder, thus eliminating the costs and additional steps associated with the secondary receipt. Q: Do merchants need to sign up with Visa to participate? A: No. Merchants do not need to sign up with Visa to participate in the VEPS program. Q: If a merchant already accepts card payments, do they need to make changes to their device to support VEPS? A: Changes to the device are not mandatory, but may be beneficial to streamline acceptance procedures. Merchants should work with their acquirer to determine if device changes are needed. Q: What chargeback protection is available on VEPS? A: On transactions that meet VEPS criteria, acquirers are protected against the following chargeback reason codes: Illegible Fulfillment (60), Transaction Not Recognized (75), and Fraud Card-Present Environment (81). If an acquirer receives a chargeback on a qualifying transaction with one of these reason codes, the acquirer has the right to represent the transaction. In addition, issuers cannot submit retrieval requests on qualifying transactions. Acquirers also need to be prepared to receive chargebacks associated with Fraudulent Multiple Transactions (Reason Code 57) without first fulfilling a retrieval request. Q: What should merchants do if they receive a chargeback for one of these reason codes or a retrieval request on qualified transactions? A: Merchants can reject the chargeback and reject or ignore the issuer retrieval request. 6 Reduced receipt data does not apply in the U.S. In the U.S., a receipt is only required if requested by the cardholder but the receipt must comply with the normal minimum receipt data requirements as outlined in the VisaInternational Operating Regulations. 8 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

15 Q: How does VEPS apply to the various acceptance technologies such as magnetic stripe, chip, and contactless? A: Magnetic stripe, chip, and contactless merchants can all benefit from VEPS. All VEPS qualifying transaction, regardless of the underlying technology used to accept the card, follow their normal acceptance procedures (i.e., magnetic stripe cards are swiped, chip cards are inserted, and Visa paywave cards are held up to the device). The important change related to POS procedures is that cardholder verification is not performed and a receipt is not provided to the cardholder unless requested. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 9

16 Country Transaction Amount Limits VEPS country transaction amount limits are outlined in the table below. The transaction amount must be equal to or below the amount listed in the table to qualify for the program. Where applicable, higher limits for domestic proximity payment transactions are also provided. REGION/COUNTRY LOCAL THRESHOLD ASIA-PACIFIC Australia AUD 35 AUD 100 (Domestic Proximity Payment Only) Hong Kong HKD200 (Effective through 12 October 2012) HKD 300 (Effective 13 October 2012) HKD 500 (Domestic Proximity Payment Only) India INR 250 (Effective through 12 October 2012) INR 1000 (Effective 13 October 2012) Indonesia IDR 100,000 IDR 200,000 (Domestic Proximity Payment Only) Japan JPY 3,000 JPY 10,000 (Domestic Proximity Payment Only) Macau MOP 200 (Effective through 12 October 2012) MOP 300 (Effective 13 October 2012) Malaysia MYR 50 MYR 150 (Domestic Proximity Payment Only) New Zealand NZD 35 NZD 80 (Domestic Proximity Payment Only) People s Republic of China CNY 120 CNY 500 (Domestic Proximity Payment Only) Philippines PHP 500 (Effective through 12 October 2012) PHP 750 (Effective 13 October 2012) PHP 2,000 (Domestic Proximity Payment Only) Singapore SGD 35 (Effective through 12 October 2012) SGD 45 (Effective 13 October 2012) SGD 100 (Domestic Proximity Payment Only) 1 0 VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES

17 REGION/COUNTRY LOCAL THRESHOLD ASIA-PACIFIC South Korea KRW 30,000 KRW 50,000 (Domestic Proximity Payment Only) Sri Lanka LKR 300 Taiwan TWD 800 TWD 3,000 (Domestic Proximity Payment Only) Thailand THB 700 THB 1,500 (Domestic Proximity Payment Only) Vietnam VND 100,000 (Effective through 12 October 2012) VND 300,000 (Effective 13 October 2012) All Other Countries US $25* CANADA Canada CAD 25 (Magnetic Stripe and EMV Chip) CAD 50 (Domestic Proximity Payment Only) CENTRAL EUROPE, MIDDLE EAST, AND AFRICA Georgia GEL 45 Pakistan PKR 1000 Russia RUB 1000 United Arab Emirates (UAE) AED 100 Ukraine UAH 200 All Other Countries US $25* LATIN-AMERICA AND CARIBBEAN All Countries US $25* UNITED STATES United States US $25 *Or local currency equivalent. VISA EASY PAYMENT SERVICE MERCHANT BEST PRACTICES 1 1

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