Online Banking

MERCHANT SERVICES GENERAL PROGRAM GUIDE - Second Quarter 2008

It is important for you to understand and abide by the following rules and regulations set forth by Visa and MasterCard:

• Honor all Visa and MasterCard cards.  Check the expiration date to be sure it is a valid card.  Compare the signature on the sales slip with the signature on the back of the credit card.
• A merchant must inspect the card for alterations or signs of counterfeiting.
• If fraud is suspected, the merchant must place a Code 10 call.
• A merchant may not give out cash advances.  Per your merchant agreement, the merchant must only sell merchandise or services.
• A merchant must process sales slips from their business only.  Merchants may not process slips from another business as a favor or for a percentage of their sales.  This is called laundering, or factoring, and it is illegal.
• Visa and MasterCard regulations prohibit merchants from setting minimum and maximum purchase amounts. If a merchant accepts credit cards for payment, they must accept them for all sales amounts.
• A merchant may not charge the account holder an additional surcharge in order to accept Visa or MasterCard sales.
• When a merchant enters into a merchant agreement, they assume the expense of the discount rate.  The merchant cannot pass this charge on to their account holders in the form o an extra fee.
• A merchant must include all applicable sales taxes in the total transaction amount.  Taxes cannot be collected separately using an alternate form of payment.
• A merchant must prepare one sales receipt per transaction, using the full transaction amount, when a single cardholder account is presented.  A merchant is prohibited from splitting the cost of a single sale between multiple sales receipts.
• A merchant cannot discriminate against or discourage the use of MasterCard or Visa in favor of any other competing card brand they also accept.
• A merchant is prohibited from providing cash refunds for returned merchandise origially purchased with a Visa or MasterCard card.  In this situation, a credit to the Visa or MasterCard card must be processed.
• If a merchant restricts refund privileges, they must write the policy on each sales slip approximately 1/4 inch above or below the account holder's signature.
• A merchant must deposit their Visa and MasterCard transaction receipts within five calendar days of the transaction date to help avoid possible chargebacks.
• If a merchant accepts a bad check, they cannot collect those funds through the use of a Visa or MasterCard card.
• A merchant cannot sell, purchase or exchange an account holder's name, account number or personal information to anyone other than the merchant's agents for the purpose of processing that sale.  Account holder information must be kept confidential.
• A merchant cannot request additional account holder identification to write on a sales slip.
• If an account holder presents an unsigned card to the merchant, the merchant must: (1.) Review positive identification, for example, a drivers license or passport; (2.) Require the accout holder to sign their card immediately
• For restraurant transactions, a merchant must only authorize the Visa or MasterCard for the known amount of the transaction, not the known amount, plus an estimated tip.
• A merchant must deliver the purchased goods and/or services at the time of the transaction unless other delivery arrangements have been made.
• In a delayed delivery scenario, a merchnt must obtain two authoriztions: one for the initial deposit amount and one for the balance amount due upon delivery.

PAYMENT CARD INDUSTRY DATA SECURITY STANDARD/VISA CARDHOLDE INFORMTION SECURITY PROGARM - First Quarter 2008

High profile security breaches are making National Headlines on an almost daily basis and consumers are placing increased pressure on businesses to ensure the security of their personal data. Visa and MasterCard have issued an approach to safeguarding sensitive data for all card brands: namely the Payment Card Industry Data Security Standard (PCI DSS). 

The Visa Cardholder Information Security Pogram (CISP) requires Mifflinburg Bank & Trust Company to ensure that our merchants maintain compliance with the PCI DSS.  As part of the CISP, Visa has established risk-prioritzed merchant validaion requirements based on the volume of transactions and several other factors that introduce potential risk into the payment system.  In order to comply with CISP, Mifflinburg Bank's Merchant Card Services Department will ask our merchants that have been identified as medium-low risk to high risk to complete a brief questionnaire.  

More information regarding PCI DSS, CISP, and other educational information can be viewed on the following websites: www.visa/cisp and http://www.pcisecuitystandards.org/