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american expressmerchant regulations u.s.april 2011

Copyright 2008-2011 American Express Travel Related Services Company, Inc. All rights reserved. Thisdocument contains sensitive, confidential, and trade secret information, and no part of it shall be disclosed tothird parties or reproduced in any form or by any electronic or mechanical means, including without limitationinformation storage and retrieval systems, without the express prior written consent of American ExpressTravel Related Services Company, Inc.

Change bars are vertical lines in the left margin that identify revised,added, or removed text. All changes in the Merchant Regulations areindicated with a change bar as shown here:summary ofchanges tableImportant updates are listed in the table below and are also indicatedin the Merchant Regulations with a change bar.chaptersection / subsectiondescriptionchapter 2, “doingbusiness withamerican express”2.8 establishment closingClause modified to clarify requirementsif no refunds or exchanges will beprovided.chapter 4,“transactionprocessing”4.6.1 keyed no imprint programClause removed, with simplifiedcontent moved to tip box.4.7.1 no signature programClause removed, with simplifiedcontent moved to tip box.4.7.2 customer activatedterminalsClause revised to clarify that Chargesoriginating at Customer ActivatedTerminals must comply with theTechnical Specifications.4.8.1 processing a Card notpresent charge (internet)Clause regarding sharing of Card Dataor Transmission Data is removed, ascontent is covered in section 4.4.4.10 corporate purchasing CardchargesDescription of Transaction descriptor issimplified for clarity.4.16 processing a creditEffective July 1, 2011, if youissue a Credit, we will refund theDiscount (but not any other fees orassessments) previously applied on theportion of the corresponding Chargethat has been credited if you electto increase your Discount Rate by 40basis points (0.40%).4.16.2 return and cancellationpoliciesMoved to section 4.17 and subsequentsections renumbered accordingly.4.17 processing prepaid CardsMoved to section 4.18. Clause revisedfor clarity.summary of changeschange bars

summary ofchanges table(continued)chaptersection / subsectiondescriptionsummary of changes4.17.1 distribution of stored value/ Section renamed “return policy forprepaid cardsprepaid products.”Section revised for clarity.chapter 5,“authorizations”4.18 processing prepaid CardsClause removed for clarity.5.3 the purpose of authorizationClause eliminated for clarity.Clause modified to clarify that anAuthorization Approval does notconstitute a guarantee.5.8 verification servicesClause modified to clarify that ourverification services do not constitutea guarantee.5.14 additional authorizationrequirementsAdditional Authorization requirementsfor Prepaid Cards are removed.Recurring Billing and Split Tenderadditional Authorization requirementssimplified for clarity.chapter 7,“settlement”chapter 9, “fraudprevention”chapter 10, “riskevaluation”7.2 settlement amountClauses revised for clarity.7.6.2 gross payClause revised for clarity.9.3 strategies for deterring fraudClause modified to clarify that ourrecommended strategies and toolsfor deterring fraud do not constitute aguarantee.9.7 prepaid Card securityfeaturesPrepaid Card security featuresupdated.9.10 fraud mitigation toolsClause modified to clarify that ourfraud mitigation tools do not constitutea guarantee.9.11 verification servicesClause modified to clarify that ourverification services do not constitutea guarantee.10.2 prohibited merchantsMedical marijuana dispensaries addedas a prohibited business type.10.3 monitoringClauses revised for clarity.

summary ofchanges table(continued)chapterdescription10.3.1 high risk merchantsReference to government servicesremoved.Clause added to clarify that ourdescription of high risk criteria is notexhaustive and may be changed at ourdiscretion.10.3.2 fraudulent, deceptive, orClauses revised for clarity.unfair business practices, illegalactivities, or prohibited uses ofthe Cardchapter 11, “inquiriesand chargebacks”11.3 disputed charge processClause added to clarify that resolutionof Disputed Charges is at our solediscretion.11.7 inquiry typesMultiple repeated clauses simplifiedfor clarity.11.9 resubmission of disputedchargeMoved to section 11.15. Subsequentsections renumbered accordingly.11.9.2 unauthorized chargeClause revised for clarity.11.9.3 billing errorClause revised for clarity.11.9.5 cancel recurring billingClauses revised for clarity.11.10.3 billing errorMoved to subsection 11.9.3. Clauserevised for clarity.11.12 how we chargebackMoved to section 11.11. Clauserevised to clarify that a Chargebackmay involve reversal of a Charge forwhich we have not paid you.11.13 chargeback reasonsMoved to section 11.12. Entire sectionrevised for clarity.11.14 chargeback programsMoved to subsection 11.12.1.Clause revised to clarify that we mayplace Merchants in the ImmediateChargeback Program or PartialImmediate Chargeback Program ifthe industries to which they belonghave historically high occurrences ofDisputed Charges.summary of changessection / subsection

summary ofchanges table(continued)summary of changeschaptersection / subsectiondescriptionchapter 12, “specificindustries”12.7 insuranceClause modified to update termsregarding your indemnification of us.New requirements added regardingpurchase of fixed rate cash valuelife insurance policies or fixed rateannuities on the Card.chapter 13, “paymentservice provider”12.9.3 oil fraud protectionprogramNew subsection added to introducethe Oil Fraud Protection Program.12.11 restaurantsClause removed for clarity.12.14.2.3 CARDeposit ProgramClauses revised for clarity.13.1 introductionClause added prohibiting PaymentService Providers from combiningpurchases or refunds (or both) frommultiple Sponsored Merchants whensubmitting an Aggregated Charge.chapter 14, “merchant 14.2.1 Card acceptance discount Monthly Flat Fee: description revisedfees”feesfor clarity.14.2.2 authorization feesNon-swiped Transaction fee:description revised for clarity.

summary ofchanges table(continued)section / subsectiondescriptionGlossaryChargebackDefinition revised for clarity.Charge RecordDefinition revised for clarity.InquiryDefinition simplified for clarity.Oil Fraud Protection ProgramDefined term added.Split TenderDefinition revised for clarity.summary of changeschapter

contact information Merchant Services1-800-528-5200Authorization Department1-800-528-2121Travelers Cheque / Gift Cheque Customer Service1-800-221-7282Travelers Cheque / Authorizations and Fraud1-800-525-7641American Express Terminal Assistance1-800-851-5948General Charge/Credit Forms1-877-867-3409Charge Verification Group1-800-876-9786(general customer service for Merchants)(If a vendor other than American Express provided your terminal,contact that vendor directly.)(Vendor supplying paper Charge and Credit forms.) Paper SubmissionsAmerican ExpressInitial ProcessingPO Box 2878Omaha, NE 68103-2878Rush Paper SubmissionsAJD Data Services, Inc.DHL Omaha StationAttn: Ryan Drees1505 Hartman CourtOmaha, NE 68110Customer Service DisputesAmerican Express Credit Card AccountCustomer Service DepartmentPO Box 981532El Paso, TX 79998Fax: 623-444-3000Fraud DisputesAmerican Express Credit Card AccountCustomer Service DepartmentPO Box 981541El Paso, TX 79998Fax: 623-444-3003Overnight/Signature RequiredAmerican Express Datamark, Inc.43 Butterfield CircleEl Paso, TX 79906-5202 American Express Merchant homepageOnline Merchant Services (OMS)Point of Sale MaterialsMerchant Fraud Prevention www.americanexpress.com/fraudinfo

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Contentsintroduction.11.1about American Express.21.2about the merchant regulations.21.3organization of the merchant regulations.31.4changes in merchant regulations .31.51.4.1scheduled changes.41.4.2unscheduled changes . .4contacting American Express.4doing business with American Express.5introduction.62.2benefits of accepting the American Express Card.62.3the American Express merchant number.72.4merchant information.82.5use of third parties.102.6configuring communications.112.7compliance with the technical specifications.112.8establishment closing.122.9verification and disclosure of information.13table of contents2.12.10 call monitoring.14Card acceptance. 153.1accepting the Card.163.2treatment of the American Express brand.163.3prohibited uses of the Card .183.4prohibited merchants . .193.5treatment of American Express Cardmember information.19transaction processing.214.1the many types of transactions.224.2transaction cycle.234.3American Express payment options.244.4completing a transaction at point of sale .254.5electronic transactions.264.6key‑entered transactions.264.6.14.74.8processing an in-person charge.284.7.1no signature program.304.7.2customer activated terminals.32processing a Card not present charge (general).334.8.14.9keyed no imprint program.27processing a Card not present charge (internet).35charge records.36This document contains sensitive, confidential, and trade secret information, and must not be disclosed to thirdparties without the express prior written consent of American Express Travel Related Services Company, Inc.april 2011i

4.10 corporate purchasing Card charges.374.11 delayed delivery charges.384.12 aggregated charges.394.13 advance payment charges.404.14 recurring billing charges.424.15 processing transactions for specific industries.444.16 processing a credit.444.16.1 credit records.46table of contents4.17 return and cancellation policies.474.17.1 return policy for prepaid products.484.18 processing prepaid Cards.484.19 processing travelers / gift cheques.494.19.1 acceptance transaction cycle.525.3the purpose of authorization.535.4authorization process.535.5possible authorization responses.545.6obtaining an electronic authorization.555.7obtaining a voice authorization.565.8verification services.575.9Card identification (CID) number.585.10 authorization reversal.585.11 authorization time limit.595.12 floor limit.595.13 pre-authorization.605.14 additional authorization ransaction cycle.626.3purpose of submission.636.4submission process.636.5submission requirements – electronic.646.6submission requirements – paper.656.7 how to submit.66iiapril 2011This document contains sensitive, confidential, and trade secret information, and must not be disclosed to thirdparties without the express prior written consent of American Express Travel Related Services Company, Inc.