Merchant Processing Application and Agreement Form (MPA) Agent Training First Data Learning Organization

Merchant Processing Application and Agreement Form (MPA) Agent Training First Data Learning Organization Copyright 2010, First Data Corporation. All Rights Reserved. Developer: 26/CD Rev: 5/17/2010

Objectives This presentation will prepare you to: Recognize the fields within the Merchant Processing Application and Agreement (MPA) form. Identify the importance of many sections within the MPA Complete all fields on the MPA appropriately. Identify the cause and effect if fields are not completed correctly. Copyright 2009 First Data Corporation. All Rights Reserved. 2

General Binding Contract Information It is important to have industry knowledge and recognize that once a contract is signed by the merchant the pricing disclosed is legally binding. The information populated in each field of the MPA by a sales representative is keyed exactly as is in the MAE+ boarding account entry tool. Completion of the form is essential to ensure delays of the approving process of the account is minimal. Copyright 2009 First Data Corporation. All Rights Reserved. 3

General Binding Contract Information General information regarding merchant paperwork: Item Merchant Processing Agreement Contractual forms Additional Credit Information / Site Survey Program Guide Confirmation Page Voided Check / Letter on Bank Letterhead Action All corresponding MPA s must be completed and contain legible information, disclose all rates and fees, and be signed by legal owner or officer of the company. The additional credit information may not be necessary for all types of merchants. The site survey allows all appropriate entities to determine whether the merchant has the proper facilities, equipment, inventory and license or permit, necessary for the merchant to conduct business. The Program Guide describes the terms and conditions under which we will provide merchant processing services. The last page of the Program Guide must be completed and signed by the merchant. A voided check is required to ensure the integrity of the merchant s banking information where funds are to be remitted. Starter checks are acceptable if the DDA and ABA are imprinted on the check. If a voided check is unavailable, a letter on bank letterhead signed by an officer of the bank is acceptable (must have DBA name, DDA, ABA). The DDA must be a business checking account and must accept both credits and debits. Copyright 2009 First Data Corporation. All Rights Reserved. 4

Sales Office Information The top portion of the Merchant Processing Application and Agreement form is client specific. Sales Office Merchant Number World Payment Services (no abbreviations). Omaha merchant number (540924....), this number is assigned upon approval and will be added to the MPA by World Payment Services Corporate office. Print Sales Rep Name Sales Rep. Signature Sales ID# The name of the Sales Rep completing the MPA. The signature of the Sales Rep who completed the contract. The assigned Sales Rep ID # (for residual purposes) Phone # Enter World Payment Services Corporate number: 866-783-8380 Copyright 2009 First Data Corporation. All Rights Reserved. 5

Section 1 Business Information The Business Information section of the MPA encompasses the Doing Business As and the Client s Corporate (Legal Name) information. Copyright 2009 First Data Corporation. All Rights Reserved. 6

Section 1 Business Information, cont d Client s Business Name Business Address, City, State, Zip Location Phone # / Location Fax # Client s Corporation / Legal Name Name of the business location - (Doing Business As). Address of the business location. Location s phone number / Location s fax number. Name of the Corporate office (Business Legal name). Billing Address, City, State, Zip Address of the Corporate location. Contact Name Business E-mail or Website Address Customer Service Phone # Contact Phone # Contact Fax # / E-mail Address Send Retrieval Request to Send Merchant Monthly Statement to How the business is recognized Name of the contact at the Corporate location. E-mail and/or URL of where business is transacted. The customer service number will be placed on the cardholder s statement. If merchant does not have a dedicated CS # use their location phone number. Contact s direct line. Contact s fax and email address. *Email address is required Select Business or Corp/Legal location where retrieval will be sent. Select Business or Corp/Legal location where statement will be sent. Select one of the choices describes the type of business. Copyright 2009 First Data Corporation. All Rights Reserved. 7

Section 1 Business Information, cont d Name Federal Tax ID# I certify that I am a foreign entity / nonresident alien. SIC/MCC Detailed Explanation of IRS Filing Name name that merchant files taxes under. Sole Proprietor - Owners Name. Corporation - Legal Name. If unsure, ask for former tax filings. Federal Tax ID or Social Security Number for the business; must be correct number. If IRS filing name is owners name, tax ID is owners Social Security #. Certain LLCs follow sole proprietor path others follow the company path. Company use EIN. Foreign Entity Indicator. Check this if merchant is not located in United States. If checked, need to provide W-8 form. 4 digit code referring to the merchant s business. You can find a PDF version of all Universal MCC/SIC code in My Sales Office (path: My Sales Office > Help > Training > MCC Guide). Type of Merchandise, Products or Services Sold. Copyright 2009 First Data Corporation. All Rights Reserved. 8

Section 2 Additional Credit / Site Survey Information The Additional Credit / Site Survey Information section encompasses the Site Survey and Mail/Telephone Order/Business to Business Information Copyright 2009 First Data Corporation. All Rights Reserved. 9

Section 2 Additional Credit / Site Survey Information, cont d Are you using a vendor Question 1-13 Advertising Method Question 15 and 16 Mail / Telephone Order / Business to Business Information Select Yes or No if a outside vendor completes the site visit. Note, questions 1 10 complete the site survey. Select the appropriate information. Marketing Materials required for Mail Order, B to B, Internet over $1Million in annual volume. Attach Web Page for Internet Merchant. Name of previous processor and reason for leaving. Complete for all merchant types. Copyright 2009 First Data Corporation. All Rights Reserved. 10

Section 3 Company History The Company History section information encompasses the merchants trade references. DBA Name Merchant # Date Business Started Doing Business As Name and full merchant number. These two fields are usually completed by the person who enters the information into the boarding system. The date the business opened. (MM/YYYY) Prior Bankruptcies? Select Yes / No and Business and/or Personal. Trade Reference 1 Trade Reference 2 Note The vendor s information used by the merchant. The vendor s information used by the merchant. All High Risk*,(Internet and MOTO merchants require 2 Trade References. Trade Reference are also required for Regular Risk* merchant who process over $2 million in Bankcard transaction a year. Copyright 2009 First Data Corporation. All Rights Reserved. 11

Section 4 Owners / Partners / Officers The Owners / Partners / Officers section information encompasses the individuals who financial records are researched by FD risk and/or underwriting department. DBA Name and Merchant # Doing Business As Name and full merchant number. Name / Title / Home Address / Telephone Full name, full title, full home address. Ownership Social Security # D.O.B / DL # / State No threshold per ownership 1% to 100%. Full Social Security Number is REQUIRED. SSN s are required. Having said that if a signer does not want to provide SSN, then either of the following is required: 1. Copy of a Valid Passport or; 2. Copy of a Valid Driver s License and Birth Certificate. For your information, SSN s are required in all applications, except for the following: 1. Publicly-traded companies; 2. Nationally known charities such as the Red Cross, United Way et al; 3. MPA s submitted from bank partners, in which case, the signer has already been OFAC screened 4. Government entities. If the merchant does not fit any of the above categories, SSN s are required. Date of Birth, Full driver license number and state issued. Copyright 2009 First Data Corporation. All Rights Reserved. 12

Section 5 Settlement Information The Settlement Information section encompasses where the funding for the merchant needs to be delivered. Deposit Bank Transit / ABA # Bank Contact Deposit Account # ACH Detail Flag Full name of merchant s bank. Full transit routing number (ABA number). Ensure the number matches the number on the voided check or the number on bank s letterhead. If unknown, enter branch manager or customer service. Full deposit account number. Ensure the number matches the number on the voided check or the number on bank s letterhead. Choose Individual, Combined or Separate this is how settlement information will be sent to the merchant s acquiring bank. Combined reports net deposit into one line on merchant s DDA. Individual a separate outgoing ACH for EACH batch deposit, a separate outgoing ACH for EACH batch discount, and a separate outgoing ACH for EACH adjustment record. Separate one outgoing ACH for all deposits, a separate outgoing ACH for all discounts, and a separate outgoing ACH for all adjustments. Copyright 2009 First Data Corporation. All Rights Reserved. 13

Section 6 Equipment/ Third Party Information The Settlement Information section encompasses equipment and Third Party Information. Network (Front End) Top portion Lease Company Select the appropriate frontend that this merchant will process. Frontend / Niche: Omaha / Terminals North / Softwares & VARS No Where Else Certified and Purchase Level III Nashville / Internet Gateways & Softwares BuyPass / Petroleum & Multi-lane Supermarkets Provide information regarding the merchant s equipment. If you are using the First Data Global Leasing program this section is the legally binding contract with the merchant. Copyright 2009 First Data Corporation. All Rights Reserved. 14

Section 7 Grid Information The Grid Information section encompasses all grid IDs associated with the merchant account. Typically completed by the back-office personnel. Merchant Pricing Grid (MPG) for MC, VS, DISC Tiered Grid ID (TDG) for MC, VS, DISC Are required to bill Worldcard or Reward Discount and / or a transaction fee based on where the ticket qualifies (qual, mid or non-qualified). Are used to determine where the different Interchange Programs qualify. 3 Tiered TDG s FACSRTL, FACSHTL, FACSMOTO, FACSREST, FACSPETR, FACSB2B Expanded (MasterCard Worldcard & Visa Rewards) Tiered TDG s EXPRTL, EXPHTL, EXPMOTO, EXPREST, EXPPETR, EXPB2B Authorizations Grid ID# Are used to bill a merchant their authorization & capture fees. The fees disclosed in section 9 of the fees on the grid must match exactly. User Defined Grid ID# Are used to bill a merchant s flat monthly fees. Copyright 2009 First Data Corporation. All Rights Reserved. 15

Section 7 Grid Information, cont d Copyright 2009 First Data Corporation. All Rights Reserved. 16

Section 8 Transaction Information The Transaction Information section encompasses the merchants financial data and where the sale is transaction occurs. Copyright 2009 First Data Corporation. All Rights Reserved. 17

Section 8 Transaction Information, cont d Gross Yearly Sales Volume Average Yearly MC/Visa Volume Average Yearly Discover Network Volume Average Yearly American Express OnePoint Volume Seasonal? High Volume Month s Open Avg. MC / Visa / Discover Network Ticket (Estimate If Never Processed In Past) Avg. American Express One point Ticket (Estimate If Never Processed In Past) Highest Ticket Amount Includes cash, credit, debit and checks estimate high. Includes Visa and MasterCard estimate high. Discover Full Acquiring estimate high. American Express OnePoint estimate high. Select Yes or No. Yes indicates is the merchant is seasonal. Months of high peak season. Includes Visa, MasterCard and Discover Full Acquiring estimate high. American Express OnePoint estimate high. Highest dollar amount the merchant can process estimate high. Where is sale transaction Ensure total equals 100%. Merchant Initials Have the merchant initial the information completed on page 2 is valid and accurate. Copyright 2009 First Data Corporation. All Rights Reserved. 18

Section 9 Service Fee Schedule The Service Fee Schedule has many sections starting at the bottom of page two and continuing throughout page three. This presentation will break the section up, one section per slide. The Service Fee Schedule sections encompass all communication pricing (Authorization Income Grid), miscellaneous pricing/monthly recurring pricing (User Defined Grid) and pricing methods (Tiered, ERR, and I/C). Copyright 2009 First Data Corporation. All Rights Reserved. 19

Section 9 Service Fee Schedule Authorization & Capture Transaction Fees The Authorization and Capture Transaction Fees section encompass all communication pricing (Authorization Income Grid). MasterCard and Visa Authorization & Capture Fee (per item) Discover Network Authorization & Capture Fee (per item) Price disclosed to merchant for VS /MC authorization and batch settlement fee. Price disclosed to merchant for DISC Full Acquiring authorization and batch settlement fee. American Express OnePoint / Full Service (EDC) OR American Express ESA / Pass Through American Express Authorization Check if yes they will process for these programs. Price disclosed to merchant for Amex OnePoint / non-amex OnePoint (ESA) authorization. JCB Authorization Price disclosed to merchant for JCB authorization. Amex ESA / Pass Through SE# JCB SE# TransArmor Auth Fee, Voice Authorization, Electronic AVS Fee, Voice AVS Fee, ARU Fee AmEx service establishment number. If merchant does not have one, write NEW in field. JCB service establishment number. s defined in detailed on the next slide. Copyright 2009 First Data Corporation. All Rights Reserved. 20

Section 9 Service Fee Schedule Authorization & Capture Transaction Fees TransArmor Auth Fee, Voice Authorization, Electronic AVS Fee, Voice AVS Fee, ARU Fee Communication pricing associated with authorization income grid. TransArmor Auth Fee: Do not use, reserved for future use. Voice Authorization: Fee charged for calling 800-228-1122 for a voice approval from an authorization representative. Electronic AVS Fee: Fee charged for Address Verification Service (AVS) through the merchant s point-of-sale (POS) device. Voice AVS Fee: Fee charged for AVS via 800-228-1111 / 800-228-1122, completed by an authorization representative. ARU Fee : Fee charged for 800-228-1111 and processing transactions over the automated response unit via touch-tone. Copyright 2009 First Data Corporation. All Rights Reserved. 21

Section 9 Service Fee Schedule Miscellaneous Fees The fields within the Miscellaneous Fees section will be explained on the next few slides. Copyright 2009 First Data Corporation. All Rights Reserved. 22

Section 9 Service Fee Schedule Miscellaneous Fees, cont d Dues and Assessments Chargeback Fee Retrieval Fee (12B Letter) Return Trans. Fee Sales Transaction Fee Batch Fee Early Termination Fee Whether you want to pass Dues and Assessments to the merchant. Chargeback fee to the merchant. Retrieval fee to the merchant. Return Transaction fee to the merchant. Fee assessed on all bankcard settled transactions. If you place a price here AND in the auth & capture fee you will be billing the merchant twice for transaction fees. If you place a price here AND in the auth & capture fee you will be billing the merchant twice for settlement. Early termination fee to the merchant. EBT-Food Stamps / EBT-Cash Benefits Other Annual Fee $ Sales transaction fee to merchant for accepting EBT transactions. The merchant has to have an SE# provided by the government to be able to accept EBT transactions. Client define fee - ensure you note monthly or yearly (i.e., Club fee 25.00/mth). Annual fee. You can assess once a year or 1/12 of the annual fee each month. Copyright 2009 First Data Corporation. All Rights Reserved. 23

Section 9 Service Fee Schedule Miscellaneous Fees, cont d MC Other Item Rate Visa Other Item Rate Discover Network Other Item Rate Amex OnePoint Other Item Rate Amex OnePoint Other Volume % JCB Other Item Rate Minimum Monthly Fee Monthly Statement Fee Pass Visa ACQ ISA Fee Pass Visa Acquirer Processing Fee Pass Visa Misuse of Authorization Fee MasterCard transaction fee assessed on settled items (sales and returns). Visa transaction fee assessed on settled items (sales and returns). Discover (non full acquiring / full acquiring) transaction fee assessed on settled items (sales and returns). Amex OnePoint transaction fee assessed on settled items (sales and returns). Percentage (basis points) assessed on net volume of Amex One Point transactions. This rate should be used to recuperate your FD contract base discount cost. JCB transaction fee assessed on settled items (sales and returns). Minimum monthly fee - only ACH if minimum is not met. Typically an area to recoup Account on File fee. Yes Pass the fee / No Do Not pass the fee. Visa ISA fee of 0.40% is assessed against the volume of the transaction when the transaction involves a U.S. merchant & a foreign issuer. Yes Pass the fee / No Do Not pass the fee. Visa Acquirer Processing fee is currently $0.0195 per Visa branded authorizations acquired in the U.S. regardless of where the issuer/cardholder is located. Yes Pass the fee / No Do Not pass the fee. Visa Misuse Authorization System fee is assessment of $0.045 fee for each authorization that does not have a subsequent clearing record or authorization record. Copyright 2009 First Data Corporation. All Rights Reserved. 24

Section 9 Service Fee Schedule Miscellaneous Fees, cont d Pass Visa Zero Floor Limit Fee Pass Visa International Acquirer Fee Pass MC Acquirer Support Fee Pass MC Cross Border Fee Pass MC Network Access & Brand Usage (NABU) Fee Pass Discover Int l Processing Fee Yes Pass the fee / No Do Not pass the fee. Visa Zero Floor Limit fee is an assessment of $0.10 fee for each transaction that does not have an approved authorization. Yes Pass the fee / No Do Not pass the fee. Visa International Acquirer fee is 0.45% of the sale transaction on all international transactions with the exception of high risk merchants. The current rate for merchants with an MCC of 5962, 5966 and/or 5967 (high risk) is 0.90%. Yes Pass the fee / No Do Not pass the fee. MC Acquirer Support fee of 0.55% is assessed on transactions qualifying for the following interchange programs: 025 International Standard 026 International Electronic 037 Domestic Acquired International Business Card 038 Domestic Acquired International Purchase Card 090 Domestic Acquiring UCAF 091 Domestic Full UCAF 153 MC Electronic Consumer International Acquired in the U.S. Credit 154 MC Electronic Commercial International Acquired in the U.S. Credit The Acquirer Support Fee is also assessed to Cirrus & Maestro transactions. Yes Pass the fee / No Do Not pass the fee. MC Cross Border fee is assessed with transactions that involve a U.S. merchant & a foreign issuer. The fee is 0.40% of the transaction amount when in U.S. dollars; 0.40% when in non-u.s. dollars. Yes Pass the fee / No Do Not pass the fee. MC Network Access Brand Usage fee of $0.0185 applies to all transactions. Yes Pass the fee / No Do Not pass the fee. A fee (0.30%) charged for card sales (including cash over) & cash advances conducted at merchant in a country other than the country of domicile of the Issuer of the card used in the card sale or cash advance, provided that such a fee is not applicable to card sales or cash advances with JCB or China Unionpay cards. Copyright 2009 First Data Corporation. All Rights Reserved. 25

Section 9 Service Fee Schedule Monthly Fees Monthly Fees Recurring monthly fees. Note, fees within this section required a User Defined Income grid to bill to the merchant. Wireless Fee emerchantview Access Fee Customer Service Fee Debit Access Fee Supplies Other (5 lines to bill a customized monthly fee(s) to the merchant) Copyright 2009 First Data Corporation. All Rights Reserved. 26

Section 9 Service Fee Schedule Network Acceptance & Discount Accept all MasterCard, Visa and Discover Network Transactions (presumed, unless any selection below are checked) Accept All MC, V, Disc: It will be presumed that the merchant will accept and process MC, VS, DSCVR network credit and non-pin debit; unless specified here. Discount Collected: A merchant s discount can be collected daily or monthly. Note: Since First Data owns the risk on the merchant s account, FD has the right to change the merchant from monthly to daily in order to increase our chances of collecting discount from the merchant. Copyright 2009 First Data Corporation. All Rights Reserved. 27

Section 9 Service Fee Schedule Pricing Methods Complete the appropriate section(s) based on the pricing option applicable to the merchant. Following slides provide information for Tiered, ERR, Interchange Pass Through. Copyright 2009 First Data Corporation. All Rights Reserved. 28

Section 9 Service Fee Schedule Pricing Methods, cont d Complete the appropriate section(s) based on the pricing option applicable to the merchant. Following slides provide information for Pass Through PIN Debit Network Fees, American Express OnePoint, TeleCheck and Fleet. Merchant Initials Have the merchant initial the information completed on page 3 is valid and accurate & they agree to the fees and rates disclosed. Copyright 2009 First Data Corporation. All Rights Reserved. 29

Section 9 Service Fee Schedule Pricing Methods Tiered Discount = Rates assessed on qual, mid-qual & non-qual qualified transactions (these rates go in the Discount Rate, Mid Qual Rate & Non Qual Rate fields in MAE+). Discount = Rates assessed on MC WorldCard qual, mid-qual and non-qual, VS Rewards 1 & 2 qualified transactions as well as Discover Network (these rates would be built in an MPG and the name of the MPG would go in the Pricing Grid ID field in MAE+). Copyright 2009 First Data Corporation. All Rights Reserved. 30

Section 9 Service Fee Schedule Pricing Methods ERR Discount = Flat rate assessed on all transactions regardless of qualifications (this rate will go in the Discount Rate field in MAE+). Non-Qual Fees = Surcharge on non-qualifying transactions (this rate will go in the Enhanced Recover % field in MAE+). Copyright 2009 First Data Corporation. All Rights Reserved. 31

Section 9 Service Fee Schedule Pricing Methods Pass Through Interchange and Pass Through Debit Network Fees Pass Through Interchange Includes Dues and Assessments > Box needs to be checked. Other Volume Percent > X.XX % = Basis points assessed on net volume. Discount (MC Qual Credit/MC Qual Debit/Visa Qual Credit/Visa Qual Debit/Discover Network Qual Credit/Discover Network Qual Debit) > X.XX% = Basis points assessed on gross volume. Pass Through PIN Debit Network Fees Box needs to be checked. Other Item Rate: transaction fee assessed on settled items. (Note: PIN debit CT s are not included within an Authorization Income Grid) Other Volume Percent: Percentage assessed against the volume of the transaction. Copyright 2009 First Data Corporation. All Rights Reserved. 32

Section 9 Service Fee Schedule Amex OnePoint American Express OnePoint: Use only this Pricing set by American Express. Copyright 2009 First Data Corporation. All Rights Reserved. 33

Section 9 Service Fee Schedule Fleet and TeleCheck TeleCheck: This section of the MPA is used as the legal binding contract with a merchant who accepts TeleCheck. You are allowed to price the inquiry rate and per TXN fee as you want. The monthly minimum fee can be $20 or $25. All other fees are set by TeleCheck and cannot be changed. Fleet: Wright Express Other item: transaction fee assessed against settled WEX transactions. Voyager Qual: percentage rate (basis points) assessed against the volume of the transaction (gross volume). Voyager Other Item: transaction fee assessed against settled Voyage transactions. Merchant Initials Have the merchant initial the information completed on page 3 is valid and accurate & they agree to the fees and rates disclosed. Copyright 2009 First Data Corporation. All Rights Reserved. 34

Section 10 Signature(s) Obtain a signature for all owners / partners / officers listed in section 4 of MPA. Personal Guarantee always recommended in your Standard portfolio, but is required in your Tier II portfolio. Copyright 2009 First Data Corporation. All Rights Reserved. 35

Questions? First Data Learning Organization Copyright 2010, First Data Corporation. All Rights Reserved.

Merchant Processing Application and Agreement Form (MPA) First Data Learning Organization Thank You! Copyright 2010, First Data Corporation. All Rights Reserved.