US Bankcard Services Industry Blog

Monday, May 9, 2011

Preventing Hacking, Hijacking, Phishing, SPAM and Fraud: Part 4 of 4 : Visa & MC: Rules for Credit Card Transacting

There has been recent news coverage of some abuses occurring with credit card processing. We would like to make our merchants and partners aware of the governing rules for recent abuses highlighted in the news. We want all of our merchants to stay happy, profitable and compliant. Visa International Operation Regulations: Card Acceptance Prohibitions General Prohibitions Refinance Existing Debt 5.1.C A Merchant must not accept a Card to collect or refinance an existing debt unless either:
  1. The Transaction results from conversion of a Merchant's existing card program to the Visa or Visa Electron Program
  2. The Merchant is a government agency and the Transaction represents a loan payment. In this case, the Transaction amount must not equal the loan balance unless it is the final payment. At the option of a Visa Region, a Merchant may accept a Visa Card or Visa Electron Card as payment for an existing debt, provided the debt is not considered uncollectable (e.g., payments to a collection agency or an attempt to recover funds for a dishonored check).
  3. The Transaction must not represent collection of a dishonored check.
  4. A Merchant must not accept Cardholder payments for previous Card charges.

MasterCard Rules: 5.11.5 Prohibited Transactions A Merchant must not submit for payment into interchange, and a Member must not accept from a Merchant for submission into interchange, any Transaction that:
  1. Represents the refinancing or transfer of an existing Cardholder obligation that is deemed to be uncollectible , or
  2. Arises from the dishonor of a Cardholder’s personal check, or
  3. Arises from the acceptance of a Card at a terminal that dispenses scrip.

If you wish to have more information on the subject or if you wish to contact one of our friendly representatives, please contact us at 888-888-8872 or at info@usbsi.com or just come on by.