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New VISA/Mastercard Rules...How will they hurt USHOP Owners

Knowledge Base Lobby : uShop Support Conference : General Questions
Nov-21-17 02:30 PM EST
Original Message
New VISA/Mastercard Rules...How will they hurt USHOP Owners
Author Paul Abernathy on 09-23-2000 at 15:15 (EST)
Here is a copy of what was sent to me from a Visa company stating what is going to take place starting in Jan 2001. I am asking Bill and Edmonds to comment on this because the fines can be as much as $25,000 if you do not comply. Can you give us fell USHOP users a clear answer to this new policy. Posted below is the message I got:

NEW VISA/MASTERCARD RULES AFFECT EVERYONE

What is a Virtual Terminal? This is a secure online real time
gateway service that is more commonly known as a Real Time
Processor.

Beginning October 2000, Visa will expect its merchants to begin
processing online eCommerce transactions using a Virtual Terminal
or Real Time Processing, or be subject to some very stiff fines
if they don't comply by January 2001.

Due to the high rate of internet fraud and disputed transactions,
the credit card companies are basically forcing merchants to use
Virtual Terminals and Real Time Processing.

Why? Simple. It guarantees the credit card info will be entered on
a secure system where the credit card info will never leave the
secure system. Mallpark has been providing responsible merchants
systems like these for a long time, at bargain prices. But so
many merchants have cut corners and not voluntarily used these
systems that now, it is going to be the law of the land if you
want to do business online.

Mastercard is planning to charge $1,000 per month and Visa $5,000
per month by the third month or $25,000 per month after that for
merchants who aren't in compliance.

An online eCommerce transaction is one where a shopper goes to a
web site, orders something and inputs their credit card information
for that order.

However you get the electronic credit card info now, and hopefully
it isn't being emailed to you because that is the problem, you'll
have only 2 choices to process. A Virtual Terminal or Real Time
Online. You will NOT be able to use software, a terminal, keypad,
phone etc., as has been permitted up until now. Or you'll be
heavily fined.

Real Time processing comes with a Virtual Terminal. The web site
can securely pass orders into the terminal or you can access the
Virtual Terminal from any browser and manually input info.

Every Real Time System provides this Virtual Terminal to manually
enter charges, credits, check on approvals, transactions, etc.

What qualifies as an electronic eCommerce transaction? Simple.
If a cardholder inputs info onto a form, or via an email to place
an order and includes their card info, that's it. If you already
have a cardholder's credit card info on record and they simply
send you an order without the credit card info, via a form or
email, that is NOT included. If they FAX you the info, that is
a mail order/ telephone order and NOT included.

You can still use your software, keypads, terminals, etc., to
process recurring billing and mail/fax/phone orders. Just NOT
eCommerce transactions.

While everyone is quoting $700 - $1000 for Virtual Terminal and
Real Time Processing systems, Mallpark has been setting them up
for a fraction of that price.

Now, is this true and what can us USHOP owners do to protect against this using the USHOP program.

Paul W. Abernathy,CEO
RadioPet.Com
E-MAIL AUTHOR | TABLE OF CONTENTS

Table Of Contents
  RE: New VISA/Mastercard Rules...How will they hurt USHOP Owners Bill Weiner, 2000-09-25 10:43:45 (1)
            Seems like more of a pain to me...and they will still need verisign Paul Abernathy, 2000-09-28 20:36:40 (2)
            Updates on the VISA/Mastercard Scare!!! Paul Abernathy, 2000-10-19 22:15:32 (3)
  MC/Visa Eric J. White, 2000-11-05 00:18:08 (4)
            New Visa/MC requirements Michael, 2000-11-25 08:11:44 (5)
                 RE: New Visa/MC requirements Bill Weiner, 2000-11-27 07:07:37 (6)
            How MC/Visa Knows you are Mail Order or not.. Paul W. Abernathy, 2000-12-03 20:23:39 (7)

Messages In This Discussion
         1. RE: New VISA/Mastercard Rules...How will they hurt USHOP Owners
        Author Bill Weiner on 09-25-2000 at 10:43 (EST)
It sounds like they are just going to be making all merchants who do business on the web use one of the (ever-growing list) of online payment processing systems to process e-commerce orders....which probably is a good idea. (Bad news for Verisign and Thawte ... who issue Secure Certificates ... no one will need them anymore!)

As for uShop, uShop 3.0 currently has built-in interfaces to the following payment processing systems:

LinkPoint
Authorize.Net
Planet Payment

... And we have a long list of additional payment processing systems that we are currently working on.
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                 2. Seems like more of a pain to me...and they will still need verisign
                Author Paul Abernathy on 09-28-2000 at 20:36 (EST)
Bill,

It seems like a pain to me...as many will still need verisign to operate but a good example is I have had only 1 chargeback in 3 years and we sell over $500,000 a year in products...not all should suffer from VISA and MASTERCARDS crying and moaning...the merchant looses on the chargeback anyway..I love how they say they are the ones being hurt...its our wallet( The Merchant) that suffers when they automatically take it out of our account...to be its just another way to have to pay someone like Authorize.net to do something that is working fine already.

Paul W. Abernathy
RadioPet.Com
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                 3. Updates on the VISA/Mastercard Scare!!!
                Author Paul Abernathy on 10-19-2000 at 22:15 (EST)
Bill,

I have found out throught Nova Services which is the 3rd largest Visa/Mastercard processing company in the world that the letter I received is a scare tactic used by MallParks to get people to use there merchant service. Visa has personally said they will contact MallParks as this is misleading to do what they have done. They did say however they they put alot more restrictions on Processing agents like NOVA Services to force merchants to batch sales daily which most already do..but at this time they said the rumors are false and no one should worry at this time.

Paul W. Abernathy,CEO
RadioPet.Com
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         4. MC/Visa
        Author Eric J. White on 11-05-2000 at 00:18 (EST)
Ok, I give up.
How does MC/Visa KNOW that I'm making an internet transaction?
I've manually entered transactions on my terminal for 15 years now. How does MC?visa know that it's not mail order? Or telphone order?
I think this sounds more like a scare tactic from some bank somewhere. Anyone that knows how the Credit card system works in America would know better.
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                 5. New Visa/MC requirements
                Author Michael on 11-25-2000 at 08:11 (EST)
Just few quotes from my bank's letter of 2 August 2000. St. George Bank, South Australia

"...All merchants that are Internet transaction processors must ensure they are compliant by the 1st November 2000 or the following penalities will be imposed by Visa:...."

"...Card Verification number must be entered (which is the last threee digits printed on the signature strip located on the back of the card). This applies to Internet and Mail/Telephone transactions manually completed on the Summary of Mail Order / Telephone Order Transactions form."

Does the Order Form on Ushop3.0 provide a field for this Card Verification Number?

Thanks
Michael Terry
www.australiagift.com
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                         6. RE: New Visa/MC requirements
                        Author Bill Weiner on 11-27-2000 at 07:07 (EST)
In regard to you question about collecting the "Card Verfication Number" that you mentioned, I would recommend just modifying the "creditcard_template.html" file in uShop 3.0 and add "cc_issue" text field to the credit card entry form. You can use any text you want for the label that is displayed next to that field.... such as "Card Verfication Number"... but just be sure to make the "NAME" of the new text field equal to the keyword "cc_issue".

On a side note, we do have an experimental payment processing system interface that is available for interfacing to the National Australia Bank via N-SIPS. Submit a support request if you are interested using that.
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                 7. How MC/Visa Knows you are Mail Order or not..
                Author Paul W. Abernathy on 12-03-2000 at 20:23 (EST)
Basically it depends on how you set up your account. If you have a standard merchant account they probably have no idea you are taking internet orders which can be a problem if the company ever questions a purchase..we have a MOTO account which is clearly physical or internet sales related but to make it short they know based on the location of the card holder and the fact you did not swipe the card...if there is ever a chargeback issue you can rest assured the merchant will be the one that ends up loosing on the deal..I know..I have been their a few times. The question was do we all comply to the new VISA/MC rules and I think you will find that as long as you are within the top 10 credit card processing companies in the world that you are fine but you have to make sure your current system is following the new laws set up by Visa/Mastercard and refering to my original message send a copy to your provider and find out...I have been told by Visa and Mastercard that most major processors are now doing this for you...but not all of them which they made clear..I use NOVA and they are.

Paul W. Abernathy,CEO
RadioPet.Com
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