Transcription
October 2015table of contentsAmerican ExpressMerchant Reference Guide U.S.
table of contentsCopyright 2008-2015 American Express Travel Related Services Company, Inc. All rights reserved.
introduction. 71.1about American Express .81.2about the reference guide.81.3organization of the reference guide.81.4publishing schedule .81.5becoming an American Express merchant.8doing business with American Express . 9introduction .102.2the American Express merchant number .102.3merchant information.102.4use of third parties .102.5compliance with the technical specifications .112.6call monitoring .112.7list of merchants .112.8cardmember offers .112.9marketing programs .11Card acceptance . 133.1accepting the Card .143.2treatment of the American Express brand .143.3prohibited uses of the Card.163.4treatment of American Express Cardmember information.17This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.October 2015table of contents2.13
transaction processing.19table of contentscontentstable44.1the many types of transactions .204.2transaction cycle.204.3completing a transaction at point of sale.214.4processing an in-person charge.224.5customer activated terminals .224.6processing a Card not present charge.234.7processing a credit.234.8return and cancellation policies .234.9corporate purchasing Card charges.234.10advance payment charges .234.11aggregated charges .234.12delayed delivery charges .244.13recurring billing charges .244.14processing prepaid Cards .244.15processing travelers/gift cheques n cycle.265.3the purpose of authorization.275.4authorization process.275.5possible authorization responses .275.6obtaining an electronic authorization.275.7obtaining a voice authorization .285.8Card identification (CID) number .285.9authorization reversal .285.10authorization time limit.285.11floor limit.28October 2015This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.
submission . 296.1introduction .306.2transaction cycle .306.3purpose of submission .306.4submission process .316.5submission requirements – electronic.316.6submission requirements – paper .316.7how to submit .317.1transaction cycle .347.2settlement amount .347.3discount/discount rate .357.4method of payment .357.5speed of payment.357.6payment options.357.7reconciliation options.357.8payment errors or omissions.36protecting Cardmember information . 378.1data security operating policy.388.2standards for protection of Cardmember information.388.3data incident management obligations .388.4indemnity obligations for a data incident .388.5periodic validation of merchant systems .39table of contentssettlement. 33fraud prevention . 419.1introduction .429.2transaction cycle .429.3strategies for deterring fraud.439.4Card acceptance policies .439.5Card security features .439.6recognizing suspicious activity .449.7fraud mitigation tools.449.8verification services .44This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.October 20155
risk evaluation .4510.1introduction.4610.2prohibited merchants.4610.3monitoring.4610.4consumer protection monitoring program .46chargebacks and inquiries .47table of ction cycle.4811.3disputed charge process.4911.4requesting a chargeback reversal.4911.5resubmission of disputed charge.4911.6substitute charge records .4911.7deadline for responding.4911.8Cardmember re-disputes .4911.9chargeback and inquiry monitoring .5011.10how we chargeback.5011.11chargeback programs.5011.12ways to receive chargebacks and inquiries.5011.13response methods.50merchant fees.5112.1introduction.5212.2types of fees .5212.2.1 Card acceptance discount fees .5212.2.2 authorization fees.5312.2.3 submission and settlement fees .5412.2.4 data security fees.5512.2.5 data pass violation fee.5512.2.6 excessive Chargeback fee.5612.2.7 American Express Merchant Regulations fee.56glossary .576October 2015This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.
Merchant Reference Guide - U.S.introductionChapter ?11.1about American Express1.4publishing schedule1.2about the reference guide1.5becoming an American Express merchant1.3organization of thereference guideintroductioncontents
Merchant Reference Guide - U.S.introduction1.1about AmericanExpressAmerican Express was established more than 150 years ago and has undergoneremarkable changes over the years. One characteristic has remained constant, however:our commitment to the core values of our founders. American Express is guided by avalue system that is steadfastly focused on doing business in more than 130 countriesaround the globe with trust and integrity, delivering quality products and services to ourvalued customers.As a world-recognized brand leader, we take our commitment to Merchants seriously.This guide is designed to provide information about American Express and howaccepting the American Express Card can benefit Merchants.1.2about the referenceguideWe are pleased to provide the American Express Merchant Reference Guide – U.S.which describes in general American Express’ standard policies and procedures for Cardacceptance.This is a general review of information already distributed to Merchants in theirAgreements with American Express governing acceptance of the Card; it does notchange the terms and conditions of a particular Merchant’s Card acceptanceAgreement. Some Merchants may have different or additional, or reformatted terms andconditions. In the event of any conflict between the Agreement and any Applicable Law,the requirements of the law govern.81.3organization of thereference guideThe American Express Merchant Reference Guide is designed to follow the flow of theTransaction cycle - from Card acceptance, to Authorization, to Submission, toSettlement, to Disputed Charges, to Chargebacks.1.4publishing scheduleThe American Express Merchant Reference Guide will change periodically. We reservethe right to make changes at any time, and it is possible that this information will not beaccurate or current at all times or in all respects.1.5becoming anAmerican ExpressmerchantIf interested in becoming an American Express Merchant, call 800-829-7302, or visitwww.americanexpress.com/merchant.October 2015This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.
Merchant Reference Guide - U.S.2contents2.1introduction2.6call monitoring2.2the American Express merchant number2.7list of merchants2.3merchant information2.8cardmember offers2.4use of third parties2.9marketing programs2.5compliance with the technical specificationsdoing business with American Expressdoing business with American ExpressChapter ?
Merchant Reference Guide - U.S.doing business with American Express2.1introductionAt American Express, we feel privileged to do business with Merchants and want tohelp make the process of accepting our Cards as simple as possible. This chapteroutlines some general concepts that relate to doing business with American Express.2.2the AmericanExpress merchantnumberAmerican Express Merchant Numbers are provided to Merchants shortly after theapplication process to accept the Card is completed.merchantinformationSeamless communication is a critical component of our ability to provide superiorservice to our Merchants. Merchants must notify American Express of any changes intheir Merchant information (e.g., changes in methods of doing business).2.3Merchants must use their Merchant Numbers to identify their businesses any time theycontact us. The Merchant is responsible for safeguarding the Merchant Number.Additionally, we require that Merchants provide us accurate information to identifyeach person or Entity applying to accept the Card and open a Merchant Account.2.4use of third partiesSome Merchants choose to deal directly with American Express for all aspects of theTransaction process; others enlist the assistance of various third parties to provide themwith services. These third parties include: service providers/Processors, Terminal Providers, vendors, and Covered Parties and other agents contracted to operate on the Merchant’s behalf.Merchants may retain, at their expense, such third parties; however, Merchants remainfinancially and otherwise liable for all obligations (including confidentiality obligationsand compliance with the Technical Specifications), services, and functions they performunder the Agreement for Merchants, such as the technical requirements of authorizingand submitting Transactions to American Express, as if Merchants performed suchobligations, services, and functions. Merchants must notify us if they intend for thesethird parties to deal directly with us and notify us promptly in writing if they changesuch third parties.10October 2015This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.
Merchant Reference Guide - U.S.doing business with American Express2.5compliance with thetechnicalspecificationsEach day, billions of Transactions traverse and are processed by the American ExpressNetwork. Merchants, Processors, Terminal Providers, and others must conform to theTechnical Specifications in order to connect to and transact on the Network.Merchants must ensure that they and any third parties they enlist to facilitateTransaction processing with us comply with the Technical Specifications. Valid andaccurate data must be provided for all data elements in accordance with the TechnicalSpecifications. Failure to comply with the Technical Specifications may impact aMerchant’s ability to successfully process Transactions, and may result innon-compliance fees (see subsection 12.2.3, “submission and settlement fees”).2.6call monitoringWe will monitor or record (or both) and analyze telephone calls with Merchants toimprove our services, prevent fraud, or for other business purposes.2.7list of merchantsFor the purpose of communicating Merchants’ acceptance of the Card, we may includeMerchant’s name, address (including Merchant’s website addresses or URLs), customerservice telephone numbers, and/or industry classification in lists of Merchants thataccept the Card based on information Merchants have provided to us or that isotherwise publicly available. We may publish or publicly disclose that information fromtime to time.2.8cardmember offersAmerican Express wants to help encourage Cardmembers to seek out and shop at oursmall Merchants. From time to time, American Express may include small Merchants inCardmember offers from American Express. For more information, visitwww.americanexpress.com/ShopSmallFAQs and click on the Cardmember Offers tab.2.9marketing programsAs a Merchant, you may be eligible to participate in American Express marketingprograms that we conduct from time to time. We have the right, in our sole discretion,whether or not to approve you as an eligible Merchant for a marketing program. If wedetermine that you are eligible for a marketing program, you have the right, in your solediscretion, to decide whether you will elect to participate in such a marketing program.If you do elect to participate in such marketing program, you must complete and sign theappropriate documentation and the provisions of the marketing sections will governyour participation in such programs.This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.October 201511
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Merchant Reference Guide - U.S.Card acceptanceCard acceptance33.1accepting the Card3.3prohibited uses of the Card3.2treatment of the AmericanExpress brand3.4treatment of American ExpressCardmember informationCard acceptancecontents
Merchant Reference Guide - U.S.Card acceptance3.1accepting the CardMerchants must accept the Card as payment for goods and services (other than thosegoods and services prohibited under section 3.3, “prohibited uses of the Card”) sold, or(if applicable) for charitable contributions made at all Establishments, except asexpressly permitted by applicable state statute.Merchants are jointly and severally liable for the obligations of their Establishmentsunder the Agreement.3.2treatment of theAmerican Expressbrand“Non-Credit Payment Forms” are anyforms of payment other than a (i)general purpose credit or charge card;or (ii) payment card brand name thatrefers to both general purpose creditor charge cards and debit cards, suchas “Visa” or “MasterCard”.American Express has built a brand that is synonymous with trust, integrity, security,quality, and customer service. We work diligently to uphold our reputation and restrictMerchants from engaging in activities that would harm our business or brand.Except as expressly permitted by Applicable Law, or as permitted elsewhere in thissection 3.2, “treatment of the American Express brand”, Merchants must not: indicate or imply that they prefer, directly or indirectly, any Non-Credit PaymentForms, mischaracterize the Card or any of our services or programs, try to persuade or prompt Cardmembers to use any Non-Credit Payment Forms, impose any fees when the Card is accepted that are not imposed equally on allOther Payment Products, except for electronic funds transfer, cash, and checks, suggest or require Cardmembers to waive their right to dispute a Transaction, engage in activities that harm our business or the American Express Brand (orboth), promote more actively than our Card any Non-Credit Payment Forms (except theMerchant’s own private label card that they issue for use solely at theirEstablishments), convert the currency of the original sales Transaction to another currency whenrequesting Authorization or submitting Transactions (or both), or try to persuade, prompt, or otherwise encourage Cardmembers to pay for goodsor services using one American Express Card rather than another AmericanExpress Card based on the identity of the Issuer.14October 2015This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.
Merchant Reference Guide - U.S.Card acceptance3.2treatment of theAmerican Expressbrand (continued)Merchants may offer discounts from their regular or sale prices or in-kind incentives orotherwise to encourage payments by other general purpose credit or charge cards, or bypayment card brand names that refer to both general purpose credit or charge cards anddebit cards (such as “Visa” or “MasterCard”). Efforts to influence the general purposecredit or charge card that a customer uses in compliance with the terms of thisparagraph will not constitute a violation of the provisions set forth above in thissection 3.2, “treatment of the American Express brand”.Merchants may also offer discounts from their regular prices or in-kind incentives forpayments in cash, ACH funds transfer, check, or debit card, provided that (to the extentrequired by Applicable Law): (i) they clearly and conspicuously disclose the terms of thediscount or in-kind incentive to their customers, (ii) the discount or in-kind incentive isoffered to all of their prospective customers, and (iii) the discount or in-kind incentivedoes not differentiate on the basis of the Issuer or debit card network or, except asexpressly permitted by applicable state statute, payment card network.Merchants must not make untrue statements about American Express or about theircost of accepting the Card. If Merchants choose to compare their reasonably estimatedcost of accepting the Card to their reasonably estimated cost of accepting other creditor charge cards, they must exclude the costs of accepting debit cards from theircalculation of their costs to accept other credit or charge cards.When customers ask what payments are accepted, Merchants must indicate theiracceptance of the Card. If Merchants choose to attempt to influence a customer’schoice of credit or charge card, they must reasonably indicate that they accept the Cardby posting signage either at the point of sale (including online or on mobile services) orstore entry, or by communicating orally that they accept the Card prior to the request forAuthorization of the transaction. For example, Merchants may satisfy this requirementby displaying a sticker at the point of sale or at the store entrance indicating all brandsthey accept that includes the American Express logo. If Merchants display our Marks,they must do so according to our guidelines.The Merchant must not use our Marks in any way that injures or diminishes thegoodwill associated with the Mark, nor in any other way (without our prior writtenconsent) indicate that we endorse the Merchant’s goods or services. The Merchantshall only use our Marks as permitted by the Agreement and shall cease using ourMarks upon termination of the Agreement.This document shall not be reproduced in any form without the express priorwritten consent of American Express Travel Related Services Company, Inc.October 201515
Merchant Reference Guide - U.S.Card acceptance3.3prohibited uses ofthe CardMerchants must not accept the Card for any of the following: adult digital content sold via Internet Electronic Delivery, amounts that do not represent bona fide sales of goods or services (or, ifapplicable, amounts that do not represent bona fide charitable contributionsmade) at the Merchant’s Establishments, amounts that do not represent bona fide, direct sales by the Merchant’sEstablishments to Cardmembers made in the ordinary course of their business, amounts that represent repayment of a cash advance including, but not limitedto, payday loans, pawn loans or payday advances, cash or cash equivalent; for example, purchases of gold, silver, platinum andpalladium bullion and/or bars (collectible coins and jewelry are not prohibited), orvirtual currencies that can be exchanged for real currency (loyalty programcurrencies are not prohibited), Charges that the Cardmember has not specifically approved, costs or fees over the normal price of goods/services (plus applicable taxes) thatthe Cardmember has not specifically approved, damages, losses, penalties, or fines of any kind, gambling services (including online gambling), gambling chips, or gamblingcredits; or lottery tickets, unlawful/illegal activities, fraudulent business transactions, or when providingthe goods or services is unlawful/illegal (e.g. unlawful/illegal online internetsales of prescription medications or controlled substances; sales of any goodsthat infringe the rights of a Rights-holder under laws applicable to us, you, or theCardmember), overdue amounts, or amounts covering returned, previously dishonored, orstop-p
contact us. The Merchant is responsible for safeguarding the Merchant Number. 2.3 merchant information Seamless communication is a critical component of our ability to provide superior service to our Merchants. Merchants must notify American Express of any changes in their Merchant information (e.g., changes in methods of doing business).
