MERCHANT STRONGHOLD Merchant Stronghold have its Head quartered in Clearwater, Florida. It provides credit card processing services for businesses of all sizes. We help businesses to accept their payments from anywhere, as you are getting POS Machine services, Virtual Terminal, Online Settings to integrate that in your website so that customers can pay on there on. Our all-in-one merchant accounts include everything that a high risk or offshore merchant’s needs to process successfully.
MASTERCARD RULES FOR MERCHANTS & PROCESSORS EFFECTIVE OCTOBER 14, 2016 MASTERCARD WILL ENFORCE NEW AUTHORIZATIONSTANDARDS. PLEASE ENSURE PROPER SUPPORT OF THIS MANDATE TO AVOID POTENTIAL FINES /FEES ASSOCIATED WITH FAILURE TO COMPLY.
“Currently MasterCard allows for a 15%-20% tolerance between authorization and clearing amounts in many scenarios, non-T&E merchants are unable to process multiple authorizations for a single transaction, and issuers have no way of knowing whether an authorization is a pre authorization, undefined authorization, or final authorization“ , says PCI Compliance Solutions .
They further added that all three of those are going to change, and the following six rules will explain. Rule #2—Merchant must inform cardholder of authorization amount when authorization is an estimated amount. OFTEN TIMES CARDHOLDERS ARE NOT INFORMED OF THE PREAUTHORIZATION AMOUNT, AND GET CONFUSED BY PENDING AUTHORIZATIONS ON THEIR ACCOUNT. IT WILL ALSO HELP CARDHOLDERS IN TAKING NECESSARY STEPS TO AVOID NEGATIVE CONSEQUENCES, SUCH AS OVERDRAFT FEES.
Rule #1—Reverse authorizations within 24 hours of cancellation or finalization of sale with lower amount. THIS WILL PREVENT THE UNUSED AUTHORIZATION AMOUNT FROM REMAINING ON THE CARDHOLDER’S ACCOUNT, AND FREE THOSE FUNDS FOR USE.
Rule #3— 15% – 20% extra payment guarantee eliminated (except for signature based gratuity). ISSUERS ARE LIABLE FOR THE EXTRA 15% – 20% EXTRA PAYMENT GUARANTEE, EVEN WHEN IT IS NOT NEEDED. THIS CAN RESULT IN THE CARDHOLDER’S OPEN-TOBUY BEING BLOCKED BY AN UNNECESSARILY HIGH AMOUNT, AND PREVENTS THEM FROM USING THOSE FUNDS.
Rule #4—Authorization chargeback protection redefined to 30 days for reauthorizations and seven days for all other authorizations (Does not apply to PayPass or transit aggregated transactions).
THIS GIVES ISSUERS AN UNAMBIGUOUS TIMELINE IN WHICH THEY ARE TO HOLD AND RELEASE FUNDS, WITHOUT EXPOSING THEMSELVES TO CHARGEBACK LIABILITY.
Rule #5—Authorizations must be clearly identified as either pre authorization, undefined authorization, or final authorization.
Rule #6—Multiple authorizations extended to all merchant types.
WITHOUT THE CODING OF THE AUTHORIZATION, ISSUERS ARE UNABLE TO DISTINGUISH PREAUTHORIZATION FROM ALL OTHER TYPES OF AUTHORIZATIONS. SO THEY TREAT EVERY AUTHORIZATION THE SAME IN ORDER TO REDUCE THEIR LIABILITY.
FOR NON-T&E MERCHANTS, THEY MUST PROCESS A SEPARATE CLEARING TRANSACTION FOR EVERY AUTHORIZATION RELATED TO A SINGLE CARDHOLDER EVENT. THIS WILL ENABLE THOSE MERCHANTS TO ENVELOP MULTIPLE AUTHORIZATIONS INTO ONE CLEARING TRANSACTION.
Beginning in November 2016, failure to meet these requirements will result in a processing integrity fee. After these new standards are implemented, a layered approach will be applied to reduce the number of authorizations coded as undefined. By June 2017 less than 50% of authorizations should be coded as undefined. Then, by June 2018 less than 20% should be coded as undefined.
Contact us Address - 10300 49th Street N Suite 427 Clearwater, Florida 33762 Contact - +1 (888)-622-6875 Email ID - info@merchantstronghold.com Website - https://www.merchantstronghold.com/
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