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					Merchant’s
Operating
Guide
Important Merchant Information
Your Bank Identification Number:



Your Visa* Merchant Number:



Your Floor Limit:



Your Business Name:




IMPORTANT: Your Bank Identification Number must be kept confidential to
keep unauthorized persons from accessing your account.
If you should change your business name, address or bank affiliation, please
notify TD Merchant Services.
Please read this Merchant’s Operating Guide carefully for important procedures
regarding acceptance of Visa cards by your business. Please note that the provision
of merchant services to you is governed by your Merchant Services Agreement.

General Inquiries Telephone Number:
1-800-363-1163
Authorizations: 24 hours a day, seven days a week.
Printer/Stationery Supplies: Monday to Friday, 8 a.m. to 5 p.m. ET
Terminal Inquiries: 24 hours a day, seven days a week.
General Merchant Inquiries: Monday to Friday, 8 a.m. to 8 p.m. ET
Table of Contents
ABOUT THE VISA CARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
HOW CAN CARDHOLDERS BENEFIT FROM PAYING WITH A VISA CARD? . 2
ADVANTAGES OF BEING A VISA MERCHANT . . . . . . . . . . . . . . . . . . . . . . . . 3
VISA CARD DESIGN FEATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECURITY FEATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
THE INTERNATIONAL VISA NETWORK AND VISA ELECTRON . . . . . . . . . . . 6
POINT-OF-PURCHASE ADVERTISING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
HOW TO PROCESS VISA CARD TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . 7
    ELECTRONIC DRAFT CAPTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
    MANUAL SALES DRAFT PROCESSING (BACKUP PROCEDURES) . . . . . . . .7
           TD Credit Draft Capture, IVR Calling Instructions . . . . . . . . . . . . . . 7
           How to Manually Process Visa Card
           Transactions in Five Easy Steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
                  Step One: Completing the Sales Draft . . . . . . . . . . . . . . . . . . 10
                  Step Two: Accepting the Customer’s Visa Card . . . . . . . . . . . 11
                  Step Three: Obtaining an Imprint of the Card
                  and Customer Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
                  Step Four: Obtaining Authorization . . . . . . . . . . . . . . . . . . . . 12
                  Step Five: Finalizing the Sale . . . . . . . . . . . . . . . . . . . . . . . . . . 13
    How to Manually Process Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
    How to Manually Make a Visa Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . 15
    If Credit Vouchers Exceed Sales Drafts . . . . . . . . . . . . . . . . . . . . . . . . . . .16
ADMINISTRATION PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
    Plan Ahead for Month-end Settlement Adjustments . . . . . . . . . . . . . . 17
    Deposit Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
    Card Pickup Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
      Code 10 Authorization Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
      Returning a Forgotten Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
      Special Sale Circumstances: Mail, Telephone and Internet Orders . . 19
      Delayed Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
CHARGEBACKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
      What is a Chargeback? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
      Most Common Reasons for Chargebacks and Suggestions
      on How to Avoid Them . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
             Requested Copy Not Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
             Illegible Copies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
             Missing Imprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
             Unauthorized Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
             Duplicate Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
             Non-receipt of Merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
             Invalid “Valid From” Date or Expired Card . . . . . . . . . . . . . . . . . 23
             Missing Authorization Number (for Non-Electronic Transaction) . . . . . 23
      Sales Draft Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
      What to Do When You Receive a Sales Draft Request . . . . . . . . . . . . 24
STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
MERCHANT RESPONSIBILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
      Protect Cardholder Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
      Do Not Set Restrictions on Credit Card Transactions . . . . . . . . . . . . . . 26
      Split Ticketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
      Beware of Third-Party Draft Laundering Propositions . . . . . . . . . . . . 26
GLOSSARY OF COMMON TERMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
About The Visa Card
Visa cards are the most commonly used credit cards, with over one billion cards
issued worldwide.
The acceptance of Visa credit cards as payment is a transaction that involves
your business, your customer, TD Merchant Services and the customer’s
card-issuing financial institution.
Every Visa Cardholder is granted a credit limit on their Visa card. The limit
amount is determined by the card-issuing financial institution. Each card-issuing
financial institution is responsible for extending credit to the Cardholder to
whom the card has been issued.
Prior to accepting Visa card transactions, you must be approved as a merchant
and sign a Merchant Services Agreement with TD Merchant Services.
The following “settlement” process will occur when the Cardholder purchases
goods or services using their Visa card:
         Upon presentation of the Sales Draft to TD Merchant Services,
         either via your Point-of-Sale (POS) Terminal or with your bank
         deposit, the amount of the purchase will be settled/credited to
         your business account.
         The amount will be debited to the Cardholder’s Visa card account.
         This transfer of funds can occur within one or two Business Days,
         depending on the method of deposit.
Applicable transaction fees, merchant discount rates, equipment rental charges
and other costs associated with this process are automatically debited from your
business account monthly.

  Please Note:
  Your business account will be credited before the Cardholder receives their Visa
  statement. Because of occasional Cardholder billing inquiries, a copy of the Sales
  Draft may be requested by the card-issuing financial institution via TD Merchant Services.
  You must respond to any such Sales Draft Retrieval Request by the due date indicated
  to avoid a Chargeback for “Requested Copy not Received”. See page 24 for further
  details on Sales Draft requests.

                                              1
How Can Cardholders Benefit
from Paying with a Visa Card?
1   Using a Visa card is a convenient way to shop. Visa cards are accepted by
    more than 20 million participating outlets in more than 150 countries and
    territories around the world. In Canada, there are more than 600,000
    participating merchants.
2   There is no need to carry large sums of cash or worry about writing
    cheques. Visa cards can be used to purchase almost any product or service.
3   For vacationers and business travellers, a Visa card offers the widest
    acceptance of any card system in the world.
4   Carrying a Visa card is much safer than carrying cash.
5   Visa statements help Cardholders keep track of expenses. They receive one
    monthly itemized statement from their card-issuing financial institution.
6   Visa bills may be paid at TD Canada Trust branches, using Automatic
    Banking Machines (ABMs), telephone banking, Internet banking or at
    any Visa-issuing financial institution in the Cardholder’s home country.
    Cardholders may simply write one cheque each month to cover Visa
    card purchases.




                                       2
Advantages of Being a Visa Merchant
By accepting Visa cards you can benefit in several ways:
 1   You will receive a “starter kit” containing:
        imprinter plate(s)
        telephone stickers
        a Merchant Deposit Card
        Visa Sales Drafts and Credit Vouchers
        Merchant Deposit Summaries and envelopes
        Visa display materials
 2   You will receive credit for Sales Drafts deposited subject to the terms of
     your Merchant Services Agreement.
 3   Sales volume may increase because of the large base of
     Visa Cardholders.
 4   By following the procedures outlined in your Merchant Services
     Agreement, you may reduce the risk of losses due to bad debt.
 5   Accepting Visa cards is less expensive than operating an internal credit
     system, and eliminates complicated bookkeeping, billing and collection
     services. However, TD Merchant Services can also be used in conjunction
     with an internal credit system.

Visa Card Design Features
The traditional blue, white and gold Visa trade-mark appears on all Visa cards.
The specific design and colours of Visa cards are selected by the card-issuing
financial institution and Visa Canada.




                                        3
Security Features
Embossing
1   The Visa account number must be a 16-digit number, beginning with
    a “4”. The first four digits of the account number are also printed above
    or below the embossed account number on the front of the Visa card.
    These four digits are the issuing Bank’s Identification Number (BIN).
2   Check to see that the account number and name embossed on the card
    are even in size and spacing, and that there have been no alterations
    or re-embossing.
3   Verify the validity dates and ensure that they do not appear altered. Do not
    accept a credit card that is being used prior to the “valid from” date and do
    not accept an expired card.
    Look for the unique slanted embossed “V” symbol or any of the “CV”,
    “BV” or “PV” symbols.

Signature panel
4   The signature panel on the back of all Visa cards is repeatedly printed with
    the word “Visa” in colour, in some cases on a patterned background.
    Compare the signature on the back of the Visa card with the signature
    on the sales draft for correct spelling and similar handwriting. If they
    are different, do not hesitate to ask for identification. Do not accept an
    unsigned Visa card.
    Check for any signs of tampering on the signature panel, such as
    discoloration, glue or eraser marks. If, for any reason, you are suspicious,
    call for a CODE 10 authorization.

Hologram
5   The Visa Dove Design hologram is a three-dimensional foil image of a dove
    in flight. The Dove Design hologram is in the centre of the card on the right
    side. As you tilt the card, the image should reflect light, and change.
6   Ensure that the gold or silver foil material has not been tampered with or
    touched up with paint or felt markers.

                                       4
Microprinting
7   The border of the Visa logo consists of a repeated microprint code.

Magnetic stripe
8   The magnetic stripe is encoded with account and other information.
    Ensure that the black magnetic stripe is a permanent portion of the card
    back and that it does not show any signs of tampering.
    If you have an electronic terminal, each time you swipe the card, the
    magnetic stripe is read and displayed on your terminal screen. Take the
    time to ensure that the number appearing on the screen matches the account
    number embossed on the front of the card. If the numbers do not match,
    call for a CODE 10 authorization.




                                                        5


                  1   2                        6




                                               7
                      3




        8

                      4




                                      5
The International Visa Network
and Visa Electron
When Cardholders from other countries come to Canada, as either tourists or
business travellers, they will see Visa decals welcoming them to your business.
As a merchant welcoming international visitors, you will occasionally be
presented with various types of Visa cards, including Visa Electron cards.
Visa Electron is a Visa acceptance mark that provides Cardholders with
global POS and ABM access to their credit or debit accounts at all electronic
Visa terminals. Visa Electron cards are processed via POS Terminals and settled
in exactly the same way as Visa credit card transactions. Sales clerks use the
same terminals and the same Visa sales and settlement procedures as they do
for regular Visa card transactions. The process is as follows:
 1   Swipe Visa Electron card through your electronic POS Terminal.
 2   Follow regular Visa fraud procedures (check signature, hologram, etc.).
 3   Obtain Authorization.
 4   Obtain customer signature.

  Please Note:
  Merchants must use electronic POS Terminals to accept Visa Electron cards. Electron cards
  are automatically settled together with other Visa transactions.


Point-of-Purchase Advertising
Visa Canada creates public awareness of its benefits and markets its plan
through extensive advertising and merchandising. However, you the merchant
can also help reinforce the public’s behaviour toward using Visa cards and
benefit from increased sales. Here’s how:
         Prominently display your Visa decals to inform Cardholders that
         Visa cards are welcomed by your business.
         Be sure your salespeople understand the benefits of accepting
         Visa cards and how to process transactions.
         Make full use of Visa promotional material, including point-of-purchase
         aids for display and logos for advertising.
                                             6
How to Process Visa Card Transactions
TD Merchant Services offers a wide selection of POS Terminals that enable
automatic Authorization and electronic deposit of the following card types:

  ELECTRONIC DRAFT CAPTURE
        Interac Direct Payment®1              JCB®
        Visa                                  American Express®2
        MasterCard®3                          Diners Club/enRoute®
        Sears®4                               Discover®
Some terminals also facilitate cheque verification services provided by
TeleCheck and Veri-Cheque.
These terminals provide a simple and prompt way of processing card
Authorizations. By using these terminals, you can reduce Chargebacks resulting
from fraud and minimize manual processing and balancing errors. The automated
settlement feature allows you to balance and deposit your daily sales transactions
directly into your business account.
Detailed transaction processing procedures are documented in a separate Terminal
Operating Guide, provided to you at the time of POS Terminal installation.
For further information regarding our electronic POS Terminals, please call
TD Merchant Services at 1-800-363-1163.

  MANUAL SALES DRAFT PROCESSING (BACKUP PROCEDURES)
Merchants who use any POS Terminals need to know how to manually
process a Visa card transaction as a backup procedure in the event of terminal
malfunction, power outage or any other circumstance when your terminal is not
available for processing.
TD Credit Draft Capture, IVR Calling Instructions
 1   Imprint customer’s credit card on sales draft.
 2   Call TD Merchant Services Toll-Free 1-800-363-1163 and enter 1,1,5.



                                        7
3    Listen for greeting. Press 1 to bypass prompts, press 2 for
     transaction prompts.
4    Enter six-digit Bank Identification Number. Press #.
5    Listen for prompt. Enter Merchant Number. (Maximum 15 digits.)
     Press #.
6    Listen for prompt. Enter code for type of transaction. Press #.

       1    Sale                               6 Void Return
       2    Return                             7 Void Ticket Only (Void Force Post)
       3    Ticket Only (Force Post)                Deposit from
                                               9 previous business day
       4    Authorization Only

       5    Void Sale                          0 Close batch

7    Listen for prompt. Enter Cardholder Number. Press #. If merchant
     incorrectly enters a number in the credit card account number, press #.
     The IVR will instruct that this is an invalid number and prompt to re-enter.
8    Listen for prompt. Enter Expiration Date (MMYY). Press #. If merchant
     incorrectly enters the credit card expiry date, the IVR will advise that the
     expiry date is invalid and prompt merchant to re-enter and press #.
9    Listen for prompt. Enter Sale Amount (without decimal). Press #.
10   Listen for prompt. Press # to confirm Amount entered. If Amount
     entered is incorrect, Press * to correct Amount entered incorrectly.
11   Listen for Authorization Response Code. Press * to repeat.
12   Write response code on sales draft.
13   If entering multiple transactions, press # and return to Step 4.
14   To end the call, hang up.
15   Ask customer to sign sales draft. Compare signature on card to sales draft.
16   Remove customer’s copy of sales draft and provide to customer.

                                         8
17   File bank and merchant copies of sales draft by date and store them in
     a secure place with access available to authorized staff. Retain copies
     for 18 months.
Failure to provide a copy of a receipt when requested or to follow other
procedures required by your Merchant Services Agreement(s) could result
in a chargeback to your account.

Helpful Hints
Merchants can review the previous day’s transaction totals by calling the same
number and following same sign-in procedures and then pressing 9 in Step 6.
Transactions processed through the IVR will generally be deposited into
the merchant’s account within two business days.
When using the IVR, it is your responsibility to enter all information,
such as the credit card number, accurately.
Make sure you follow all other procedures required by your
Merchant Services Agreement(s).

IVR Menu Options
Transaction Type          Description          Rules (where applicable)
                          Purchase –
 1    Sale                Authorization and    Not applicable
                          draft capture
                          To Perform a         Can be full or partial amount of
 2 Return                 Sales Return         original transaction.
                                               This would be used to enter a
                                               transaction into the merchant’s batch
      Ticket Only         Forces an            to be settled. This would be used if the
 3 (Force Post)           Authorization        original sale transaction was directed
                                               to an agent due to an error or a referral
                                               response and then was approved.
                                               This will obtain an authorization
                          Non-captured
 4 Authorization Only     transaction
                                               for a transaction but not capture it
                                               in the current (open) batch.

                                          9
 Transaction Type                   Description                Rules (where applicable)
                                                               This will void an Authorization (a sale)
  5 Void Sale                       To void a purchase
                                                               that is in the current (open) batch.
                                    To void a Return           This will void a Return transaction that
  6 Void Return                     transaction                is in the current (open) batch.
                                    To void a Ticket Only      This will void a Ticket Only transaction
        Void Ticket Only (Void
  7 Force Post)                     (Force Post)               (a force) that is in the current (open)
                                    transaction                batch.
                                                               This transaction finds the total dollar
                                    Requests totals
        Total Deposit From                                     amounts for all of the batches
  9 Previous Day                    for previous
                                                               captured for the previous day and
                                    day’s activity
                                                               totals them for the merchant.
                                                               This settles all of the transactions in
                                    Merchant-elected
                                                               the current (open) batch. The response
                                    option whereby
                                                               message will tell the merchant the
  0 Close Current Batch             merchant initiates
                                                               total dollar amount in the batch. (This
                                    closure of current
                                                               option must be pre-selected by the
                                    transaction batch.
                                                               merchant at the time of set-up.)


How to Manually Process A Visa Card Transaction
in Five Easy Steps°
As you’ll see below, most Visa sales are straightforward. For information on
how to deal with exceptions and unusual circumstances, refer to Step Four:
Obtaining Authorization on page 12.
° For electronic processing, refer to your Terminal Operating Guide.


    STEP ONE                 Completing the Sales Draft

The standard manual Sales Draft (illustrated) contains either three or four
copies. There is also a special version used mostly by restaurants, hotels, and
motels. Only one type should be used by any one merchant.




                                                     10
To complete the Sales Draft:
 1    Insert the date (month, day, year).
 2    Itemize the merchandise or service.
 3    Insert the price of the item, tax
      where applicable, and the total price.
 4    Take an imprint of the Visa card
      (see Step Three, below).

  Note:
  Visa Canada does not require the Cardholder’s telephone number to be shown on a
  Sales Draft. You should not request the Cardholder’s telephone number as this information
  is considered confidential.


     STEP TWO           Accepting the Customer’s Visa Card

When the customer hands you his/her Visa card, check to see if it has expired.
A Visa card is valid up to and including the last day of the month indicated on
the Visa card. The Visa card should bear all the security features described under
Security Features on page 4.

 STEP THREE             Obtaining an Imprint of the Card and Customer Signature

ALWAYS TAKE AN IMPRINT OF THE VISA CARD.
To process a Sales Draft through the imprinter:
 1    If your imprinter is equipped with date and amount wheels, ensure that the
      correct date and amount have been set.
 2    Place the customer’s Visa card face up between the plastic guides.
 3    Slip the left edge of the Sales Draft under the metal tongue or guides at
      centre left. The Sales Draft should then lie face up completely covering the
      bottom half of the customer’s card.
 4    Slide the imprinter handle across the imprinter base which imprints Visa
      credit cards. After imprinting, return handle to the start position.
                                            11
 5    Check that all details embossed on the customer’s card and on your
      merchant plate are clearly legible on the Sales Draft, particularly on
      the processing copy. If the imprint is not legible, do not attempt to
      write over the numbers; rather, destroy the Sales Draft and start over.
      If your imprinter is printing illegible Sales Drafts, and is rented from
      TD Merchant Services, call 1-800-363-1163.
 6    Keep the Visa card in hand as you have the customer sign the Sales Draft and
      compare the signature on the Sales Draft with that on the back of the Visa card.


  STEP FOUR             Obtaining Authorization

For your convenience, TD Merchant Services is available 24 hours a day,
365 days a year by calling: 1-800-363-1163.
Call TD Merchant Services if:
         the total amount of the transaction (including tax) equals or exceeds
         your assigned Floor Limit;
         you are an approved merchant for mail, telephone and/or Internet Sales
         dealing with a telephone order, mail order, or Internet order; or
         you are suspicious of a Cardholder or a transaction.

  Note:
  Please proceed to Step Five if the above conditions do not apply to you.

Give the Authorization operator or the Voice Response Unit the following:
         the customer’s Visa account number;
         your 8-digit merchant number;
         the total amount of the transaction (tax included); and
         the expiration date as shown on the Visa card.
When the transaction is authorized, the Authorization operator will give you an
Authorization number. It must be written on the Sales Draft in the space
provided. To be sure this Authorization number has been recorded correctly,
read it back to the Authorization operator. Receipt of an Authorization number
is not a guarantee of payment. An Authorization number indicates the
                                             12
availability of credit on the Cardholder’s account. It is an important step
in completing a credit card Sales Draft. Authorized transactions may still
be subject to Chargebacks.
In the event TD Merchant Services is unable to provide an Authorization
number, you will be referred to the card-issuing financial institution.
Proceed as follows:
 1    Call the card-issuing financial institution at the number provided
      (call collect if necessary).
 2    Identify yourself as a “T” or TD Merchant Services customer calling
      on a referral and provide the reasons or circumstances of the call.

  Note:
  Authorization may not be granted on Visa transactions where the Cardholder does not present
  a Visa card. Authorization can only be granted for the exact amount of the transaction and must
  be obtained before the sale is completed and while the Cardholder is present. With the exception
  of mail, telephone or Internet order sales by an approved merchant for mail, telephone and/or
  Internet sales, no sale will be authorized if the customer has not presented his/her Visa card.


If Authorization is declined you may request another form of payment. If the
Cardholder has any questions concerning the decline, direct them to the card-issuing
financial institution. TD Merchant Services does not have access to the reason for
which Authorization has been declined. If the Authorization operator advises you
that the card has been reported stolen and that they will attempt to arrest the
customer, stall the person by telling them Visa’s Authorization system is down.
Do not try to physically keep the person in the store. Make note of the person’s
physical appearance to the best of your ability in case they leave the store.


     STEP FIVE           Finalizing the Sale

If the customer’s card has been authorized:
 1    Give the customer the “Customer” copy of the Sales Draft and return the card.
 2    Keep the “Merchant” copy on file for 12 MONTHS.
 3    Deposit the “Processing” copy at your TD Canada Trust branch within
      THREE Business Days of the transaction date.
                                               13
How to Manually Process Returns
When a customer returns merchandise, complete a Credit Voucher for the
specified amount of the transaction.
Proceed as follows:
 1    Note the type of transaction (exchange or refund).
 2    Insert the date of the original Sales Draft.
 3    State the reason for the return of the merchandise.
 4    Show the item price, sales tax where applicable and the total amount of
      the return.
 5    Date the Credit Voucher.
 6    Process the voucher through the imprinter. If the customer’s card is not
      available, his/her name and account number may be hand-written (for
      returns and exchanges only).
 7    The customer does not have to sign the Credit Voucher, but it must be
      signed by the merchant.
 8    Distribute the copies as follows: the “Merchant” copy must be kept on
      file for 12 MONTHS, the “Customer” copy must be given to the customer
      and the “Processing” copy must be included in your deposit to your
      TD Canada Trust branch.

  Note:
  Never refund a Visa sale by cash or cheque. Only refund a Visa sale by crediting back the
  Cardholder. Always credit back to the card number that was used in the original Visa
  transaction. If the card number is not available, use the original receipt to retrieve the Visa
  account number, Cardholder name and expiration date. Be sure to post any special return
  or refund policies on the sales receipt and inside your business premises, in an area clearly
  visible to customers.




                                               14
How to Manually Make a Visa Deposit
You need:
         Sales Drafts and Credit Vouchers to be deposited;
         Merchant Deposit Card;
         Visa Deposit Summary; and
         Visa Deposit Envelope.

 1   Use your Merchant Deposit Card to imprint your name and merchant
     number on your Visa Deposit Summary. This information should not
     be handwritten.
 2   Complete the Visa Deposit Summary by providing the following:
     A. total number of Sales Drafts;
     B. total dollar amount of Sales Drafts (including sales tax);
     C. total number of Credit Vouchers; and
     D. total dollar amount of Credit Vouchers.
Subtract the total dollar amount of Credit Vouchers from the Sales Draft total
and enter the result as the “Net Total”.

  Note:
  Always ensure that the Merchant “Net Total” equals the sum of all Sales Drafts less the
  sum of all Credit Vouchers that you are enclosing in the Deposit Envelope.


 3   Enter the deposit date on the Visa Deposit Summary.
 4   Separate the copies of the Visa Deposit Summary.
     A. Place the bank copy of the Visa Deposit Summary in front of the
          processing copies of Sales Drafts and Credit Vouchers, and insert
          them in the Deposit Envelope together with an adding machine tape
          summary of Drafts and Credit Vouchers. The number of Drafts and
          Vouchers should not exceed 25 items. Ensure that the Visa Deposit
          Summary can be read through the window envelope.



                                             15
     B. Seal the envelope and complete a regular deposit slip, inserting the net
          amount (sales less returns) on the Visa Deposit Summary as one item
          on the deposit slip (under Visa Receipts).
     C. Keep the top copy along with your copies of Sales Drafts and Credit
          Vouchers for 12 MONTHS.

  Note:
  Deposit only the copy marked “Processing Copy”. Flimsy copies marked “Customer Copy”
  and “Merchant Copy” will not be accepted for processing and will result in a debit to
  your account.

For your convenience, additional Visa stationery is available by calling
1-800-363-1163.
For further information regarding our electronic POS Terminals, please contact
your local TD Canada Trust branch representative or call the number above.

If Credit Vouchers Exceed Sales Drafts…
If the total dollar value of Credit Vouchers exceeds that of Sales Drafts,
follow these steps:
 1   Circle the deposit total on the Visa Deposit Summary and mark it
     “Credit” in large letters.
 2   Complete your deposit as usual and seal it in the Deposit Envelope.
 3   Pay the credit amount by issuing a cheque to TD (Merchant Services)
     drawn on your business account.

  Note:
  Sales Drafts and/or Credit Vouchers must be deposited within three Business Days after
  the date of the transaction. Daily deposits are recommended. You will receive immediate
  credit for your deposits subject to the terms of your Merchant Services Agreement.
  Please do not fold or staple any of these forms.




                                            16
Administration Procedures
Plan Ahead for Month-end Settlement Adjustments
Be sure to maintain sufficient funds in your business account to cover
TD Merchant Services service fees (e.g. applicable equipment rental fees,
transaction fees and monthly discount fees) which are automatically debited
from your business account monthly. It is also advisable to maintain 1.5 times
your average monthly discount fee and two times your average sale amount in
your business account at all times to cover possible Chargebacks.

Deposit Adjustments
Adjustments will be made to your business account if there is a discrepancy
between your Deposit Summary and the corresponding Sales Drafts submitted
to TD Canada Trust. We will provide you with an adjustment notice once these
adjustments have been made. Adjustments may be made for the following reasons:
        The amount shown on the Visa Deposit Summary and the actual total
        of the Sales Drafts do not balance.
        The Cardholder account number is invalid or illegible. To receive credit
        you will need to correct the number and resubmit the draft with a new
        Visa Deposit Summary.
        Your business account was mistakenly credited and has been debited
        to show the reversal of the credit.
        You have included Sales Drafts in a manual deposit that are non-Visa
        transactions, e.g. another credit card.
        Any other reason as provided in your Merchant Services Agreement.

Card Pickup Procedures
A reward may be paid for the recovery of a lost or stolen card. If the TD Merchant
Services operator instructs you to retain a card, follow the procedures below in
conjunction with any instructions given by the operator.
 1   Note the card number in your records for future follow-up.




                                        17
 2   Cut the card lengthwise, below the card number, keeping the magnetic
     stripe intact.
Record the following information: TD Visa Merchant number, your business
address, contact name and name of individual responsible for recovery of lost
or stolen card. Send this information along with the recovered card to your
TD Canada Trust Visa Centre. Visa cards are to be returned to:
Attention: Security                Attention: Security
Central Visa Centre                Regional Visa Centre
PO Box 300, Station A              500 St. Jacques (11th Floor)
Toronto, Ontario                   Montreal, Quebec
M5K 1K6                            H2Y 1S1

Code 10 Authorization Procedures
“Code 10 Authorization” is a procedure designed to alert the operator at
TD Merchant Services that you suspect that a transaction may be fraudulent
without alarming the individual who is presenting the card.
If you become suspicious of a transaction or a Cardholder, take the completed
Sales Draft and customer’s Visa card to the phone and call TD Merchant Services
at 1-800-363-1163.
You must call for a “Code 10 Authorization” if:
        the card is discoloured, or has uneven or rough edges;
        the signature panel does not appear to be smooth;
        the account number and name embossing do not appear to be even
        in size and spacing, suggesting that they many have been re-embossed;
        if you suspect that the “valid” dates have been altered in order to
        “add time” to an expired card; or
        if you otherwise suspect that the card has been altered or there are missing
        card design features.




                                        18
Returning A Forgotten Card
If a customer leaves their Visa card behind:
 1   Keep the card in a secure place.
 2   If the customer returns for the card while you still have it, be sure to ask
     for identification before returning the card.
 3   If the customer doesn’t return for the card within 24 hours, cut the card in
     half and put the two pieces in your regular Deposit Envelope.
 4   If the customer returns after you have sent the card to TD Canada Trust,
     refer the Cardholder to their card-issuing financial institution.

Special Sale Circumstances: Mail, Telephone and Internet Orders
You must be approved by TD Merchant Services to be a telephone and/or mail
order and/or Internet order merchant. Upon obtaining approval to accept telephone,
mail or Internet orders you must follow the procedures below:

For mail or telephone orders:
 1   If using an electronic POS terminal, key enter the transaction.
 2   Take an imprint of your merchant plate (if manually processing).
 3   Clearly write the customer’s Visa account number, Cardholder name and
     expiry date on the specified areas of the Visa Sales Draft as if it were
     imprinted (if manually processing).
 4   Write MAIL ORDER or TELEPHONE ORDER, as appropriate, on the
     signature line.
 5   Obtain Authorization on all mail and telephone orders. Your Floor Limit is
     zero when the customer’s card is not available for imprinting.
 6   Although you must obtain the customer’s address and telephone number
     for delivery of goods, to protect the customer from credit card fraud, do
     not write personal information on the Sales Draft.




                                         19
For Internet orders:
Merchants must contact TD Merchant Services and be approved before processing
transactions over the Internet.
You must make sure, and TD Merchant Services must be satisfied that,
you and your Internet service provider fulfill the following:
 1   Credit card information is sent to the merchant’s website using a Secure
     Socket Layer (SSL) secured link which uses 40-bit encryption (minimum).
 2   Credit card numbers must not be stored in a server that is directly connected
     to the Internet.
 3   You and your website must comply with all Visa regulations that apply to
     selling on the Internet. Please contact TD Merchant Services for particulars.

Pre-authorized orders and recurring payments
Be sure to keep on file a signed written agreement made between you and the
Cardholder for all pre-authorized orders and recurring payments. This agreement
must contain all pertinent information needed to complete a Sales Draft: card
number, card expiry date, Cardholder’s name, the amount to be charged to the
Cardholder’s account, the charge frequency and how long the charge will continue.

  Note:
  Pre-authorized agreements must be made available to TD Merchant Services upon
  request. Authorized transactions may still be subject to Chargebacks. You and your
  website must comply with all Visa regulations that apply to selling on the Internet.


Delayed Sales
If the customer requires billing to be delayed until merchandise is delivered, the
Sales Draft should not be dated. Instead, you should hold the Sales Draft until the
day of delivery; then insert the current date, obtain Authorization if required and
distribute the copies. The customer’s copy should go with the delivery. The original
copy stays with the merchant.
You may take a partial payment or deposit if delivery of the merchandise is to be
delayed. A Sales Draft for a deposit or partial payment on delayed-delivery goods

                                             20
and services is completed in the normal way and processed immediately. In this
case, Authorization must also be obtained at the time of delivery if the balance
owing on the merchandise exceeds your Floor Limit.
If the goods are to be prepaid, process the Sales Draft immediately and advise
the customer that the charge may appear on their statement before the merchandise
is delivered.

Chargebacks
What is a Chargeback?
A Chargeback is the reversal of a disputed sales transaction. When a Chargeback
occurs, the amount of the Chargeback is debited from your business account.
You can reduce the incidence of Chargebacks by following the proper
Authorization and processing procedures set out in this guide. If you process
transactions electronically, make sure all employees are familiar with the
procedures they should follow in the event of a terminal failure or if a card is
de-magnetized and therefore cannot be read by the terminal. If you process
paper drafts, we recommend you post your merchant number, Floor Limit, and
TD Merchant Services’ telephone number where all employees who process
transactions can see and use them.

Most Common Reasons for Chargebacks
and Suggestions on How to Avoid Them:
 1   Requested Copy Not Received – In the case of a customer inquiry or
     transaction dispute, we may request a copy of the Sales Draft from you.
     If a CLEAR copy is not received by the due date, the transaction will be
     charged back and the amount of the original transaction will be debited
     from your business account.
     What you can do… – Keeping Sales Drafts filed by date and Sales
     Draft invoice number will enable you to respond quickly to a Sales Draft
     Request. Sales Drafts must be kept for a minimum of 12 months. When
     you receive a Sales Draft Request you must respond by the due date
     specified on the Sales Draft Request form so that we may forward a copy
     of the draft to the card issuer and support the transaction on your behalf.
     If your response is late and results in a Chargeback, this Chargeback
     cannot be reversed.
                                        21
2   Illegible Copies – If any relevant information on the Sales Draft, such as
    the Cardholder account number, the date, amount, signature, or merchant
    name is not legible, the amount of the transaction can be charged back.
    What you can do… – Provide TD Canada Trust with the clearest copy
    available. Ensure you keep a copy for your records. For electronic
    processing, ensure printer ribbons and cartridges are changed regularly.
    If you are using manual Visa Sales Drafts, ensure that the information
    printed is legible on all copies of the drafts. Do not write or circle over any
    portion of the printed/imprinted Sales Draft.
3   Missing Imprint – A clear, legible card imprint is crucial for processing
    a transaction. If you process electronically, swiping the card is critical.
    The card swipe is considered the electronic equivalent of a manual
    imprint. Where applicable, provide both the manual imprint and the
    terminal receipt with your copy request.
    What you can do… – Get a good, legible imprint of your customer’s
    credit card. Check all draft copies to ensure the imprint shows up clearly
    on each one. If you process transactions electronically and the card
    cannot be read by your terminal, key in the card number and take a
    manual imprint of the credit card. This will prove the card was present
    during the transaction. Remember to have the Cardholder sign the draft.
4   Unauthorized Purchase – If you process a transaction that was not
    authorized by the Cardholder, the sale is subject to a Chargeback.
    What you can do… – Never process a transaction that has not been
    agreed to by the authorized Cardholder. A Visa card may be presented
    to you under conditions which seem irregular. For example: frequent
    purchases beyond normal needs; purchase of an unusual number of the
    same article; a disregard of size, style or quality; excessive tipping.
    These and other signs may indicate misuse of Visa credit privileges or the
    attempted use of a lost or stolen Visa card. Verify your customer’s identity
    by checking the signature on the draft against the signed card. If it does
    not match or you suspect the signature on the back of the card has been
    altered, call TD Merchant Services regardless of the amount of the
    sale and request a “CODE 10 Authorization”. Similarly, if the card
    is unsigned, please call and inform TD Merchant Services. Remember,

                                       22
    if you are suspicious, it is important to keep the customer’s card in your
    possession if possible.
5   Duplicate Processing – Your customer claims they have been billed twice
    for a single purchase. This could be charged back to you if the customer is
    proven correct.
    What you can do… – If you process sales electronically, DO NOT also
    deposit paper drafts at your TD Canada Trust Branch. Remember
    to balance your terminal daily and if there are any discrepancies,
    call TD Merchant Services at 1-800-363-1163 for assistance.
6   Non-receipt of Merchandise – If your customer insists the merchandise
    purchased from you was never received, the transaction could be charged
    back to you.
    What you can do… – Keep complete records of all credit card
    transactions (i.e. signed Sales Drafts), and be sure to keep any
    documentation that will verify shipment AND receipt of merchandise.
7   Invalid “Valid From” Date or Expired Card – If you accept a card
    before the “valid from” date or after the “expiry date”, the transaction
    is subject to a Chargeback.
    What you can do… – Check all dates embossed on the front of the
    card before completing any transaction. Do not process a sale before the
    “valid from” date or after the expiration date embossed on the card.
8   Missing Authorization Number (FOR NON-ELECTRONIC
    TRANSACTIONS) – Processing a transaction above your specified
    Floor Limit without obtaining an Authorization can result in a Chargeback.
    What you can do… – Whenever a purchase equals or exceeds your
    Floor Limit, simply call TD Merchant Services for approval. In the
    space provided on your Sales Draft, write the Authorization number given
    by the operator before completing the sale. Never give the Cardholder the
    merchandise on a declined transaction in hopes that it will be approved
    later, as the full amount of the sale can be charged back to you.




                                      23
Sales Draft Requests
If, upon receipt of their statement, the Cardholder disputes a transaction, you
may be asked to provide us with a copy of the Sales Draft pertaining to the
transaction. If the Cardholder has been charged incorrectly or if you fail to
respond to such a “Sales Draft Request” by the due date specified, you will be
subject to a Chargeback. The amount of the disputed sales transaction will be
debited from your business account.

What to do When You Receive a Sales Draft Request
Follow these simple steps:
 1    Locate the Sales Draft. To facilitate locating the Sales Draft, we suggest you
      file all Visa Sales Drafts in date order for 12 months from the transaction date.
 2    Ensure the Sales Draft copy you are submitting is legible. Send a copy of
      the Sales Draft Request form along with the requested copy. This helps us
      to identify where the draft is coming from in case we need to contact you
      for further information.
 3    Make and keep copies of any original Sales Drafts forwarded in response to
      a Sales Draft Request. Do not send your only copy.
 4    Mail the Sales Draft in the return envelope provided. If you are faxing
      your copy of the transaction, please ensure that the Cardholder account
      number, transaction amount, signature, and date are legible. To increase
      the clarity of faxed copies, it helps to enlarge and darken your photocopy
      of the Sales Draft.
 5    If you receive a Sales Draft Request for an item on which you have already
      made an adjustment, proceed to fulfill the request by submitting the
      requested copy along with an explanation of the action already taken.

  Note:
  Businesses such as hotels, car rental agencies, and airlines may be asked to supply a
  guest folio, signed registration card, or rental agreement in addition to the Sales Draft.
  This documentation is as important as the Sales Draft and failure to supply it may
  result in a Chargeback.



                                              24
In order to make the retrieval process easier for Merchants, Sales Draft Requests
are mailed out in mauve-coloured (purple) envelopes. Watch for these envelopes and
respond to them on a priority basis. Here is an example of a Sales Draft Request:




Statements
TD Merchant Services will mail you a monthly statement summarizing your Visa
card transactions and fees. Should you have any questions about your statement,
please call TD Merchant Services at 1-800-363-1163.

Merchant Responsibilities
Protect Cardholder Privacy
Remember you have a responsibility to protect your customers from possible credit
card fraud by maintaining the confidentiality of their personal information. In order
to protect Cardholder privacy and reduce the likelihood of exposure to credit card
fraud, personal information such as the customer’s phone number, address, social
insurance number or driver’s licence is not required by Visa Canada and must not
be written on the credit card Sales Draft. If this information is deemed necessary in
circumstances where you must deliver an item to the Cardholder, be sure to write it
on a separate piece of paper.
Visa requires that merchants protect Cardholders’ account and transaction
information including Cardholder names, account numbers and other information
embossed, encoded or appearing on Visa cards (“Information”) in accordance with
the Visa Account Information Security Standards. You may not use Information
for any purpose except to complete transactions authorized by the Cardholder.
Information must be stored in a secure area and only authorized staff should be given
access to the Information. Information must be destroyed and rendered unreadable

                                         25
before it is discarded. If you make arrangements with any third party for the purpose
of collecting, processing or storing Information you must have a written contract
with the third party which requires compliance with the Visa Account Information
Security Standards. If you are approved as an Internet merchant, an Internet service
provider is an example of a third party that must comply with these standards.
You must also allow us or Visa to inspect your premises and ensure that we can
inspect premises of any third party to verify that Information is securely stored
and processed. For further information please contact TD Merchant Services.

Do Not Set Restrictions on Credit Card Transactions
Visa regulations prohibit establishing a minimum or maximum purchase amount,
and charging customers an extra fee for using their Visa card.
Because of the available line of credit and the purchasing freedom that credit cards
offer, customers who use credit cards to pay for purchases usually bring in more
business than those who pay with cash. Therefore, you should encourage their
business and not penalize them by charging additional credit card usage fees.
Such a policy would violate your Merchant Services Agreement.

Split Ticketing
A merchant must repeat Authorization prior to completing a transaction if the
amount equals or exceeds the Floor Limit. A merchant should never offer or agree
to reduce or disguise the amount of a transaction to avoid an Authorization, nor
should the transaction amount be split.

Beware of Third Party Draft Laundering Propositions
For your own protection, beware of Sales Draft laundering. This is a scheme where,
in return for processing a third party’s Sales Drafts through their business account, a
merchant is paid a commission or fee. Such transactions should be questioned and
may be fraudulent. Furthermore, they are in violation of your Merchant Services
Agreement and could result in the termination of your Visa card acceptance
privileges. If the drafts processed under such circumstances are found to be
fraudulent and result in Chargebacks, the transactions will be reversed from your
business account.
Please educate your staff not to be tempted to process drafts belonging to another
business. It’s not worth the risk. Please immediately report third party draft
laundering propositions to TD Merchant Services at 1-800-363-1163.
                                          26
Glossary of Common Terms
Authorization: The process of verifying the validity of a credit card and of
reserving a portion of the Cardholder’s available credit equal to the amount
of the transaction.
Business Day: Any day, other than Saturday, Sunday or a statutory holiday
observed in the province of Ontario.
Cardholder: An individual to whom a Visa credit card is issued or who is
authorized to use the Visa credit card.
Chargeback: The reversal of a disputed sales transaction resulting in the amount
of the transaction being debited from the merchant’s business account.
Credit Voucher: A form deposited by the merchant to TD Canada Trust for the
purpose of refunding the Cardholder for a purchase by crediting the Cardholder’s
Visa account used for the purchase.
Floor Limit: The maximum amount that can be charged in a single transaction
without obtaining Authorization from TD Merchant Services.
Merchant Deposit Card: A plastic card issued by TD Merchant Services to
Visa merchants that is embossed with their merchant number.
POS Terminal: Point-of-Sale Terminal. An electronic terminal which automates
the process of obtaining Authorizations and electronically captures transactions
for deposit to the merchant’s business account (in most cases).
Sales Draft Request: A request for a copy of the Sales Draft relating to a Visa
transaction, presented by the acquiring financial institution to the merchant on
behalf of the card-issuing financial institution. The request must be fulfilled by the
merchant or a Chargeback can result. (Also referred to as a Retrieval Request.)
Sales Draft: The bank-approved standard form or electronic receipt which
provides details of a Visa card transaction.
Visa Canada: An Association of member financial institutions working
collectively to promote the growth of the overall Visa systems and products
through advertising and sales promotions.
Visa Deposit Summary: A form used for listing a summary of the merchant’s
Visa deposits. The Deposit Summary should be imprinted with your Merchant
Deposit Card (for manual processing only).
                                          27
*  Visa International Service Association/TD Canada Trust licensed user of Mark.
®1 Trade-Mark of Interac Inc., TD Canada Trust authorized user of the Trade-Mark.
®2 Trade-mark of American Express Company.
®3 Registered trade-mark of MasterCard International Incorporated.
®4 Registered trademark of Sears Canada.
® All other brand and product names are or may be trademarks of, and are used to identify products or services of their respective owners.



     Printed on recycled paper                                                                                               581496(1104)

				
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