Crediting Your Bank Account And Understanding Your Invoice
23. Messages – we will use this section to keep you updated with any important changes, for example, advising you when there are changes to your Terms of Service
Card Abbreviations
Note: Any card abbreviation followed by the wording ‘Merchandise Rtn’ refers to a refund.
Card Abbr Description Card Abbr Description
AMEX American Express MDMA MasterCard International Maestro
DNRS Diners Club MDMP MasterCard Prepaid Maestro
JCB Japanese Credit Bureau MDPD MasterCard Premium Debit
MBWE MasterCard World Elite Business MDSB MasterCard Maestro Small Business
MC MasterCard Credit Card MDUK MasterCard UK Maestro
MCBS MasterCard Business Card MWEL MasterCard World Elite Card
MCBW MasterCard World Business SCHEME FEES - UK UK Card Assessment Fees MCCP MasterCard Corporate SCHEME FEES – EUR European Card Assessment Fees MCCW MasterCard World Corporate SCHEME FEES – INT’L International Card Assessment Fees
MCEC MasterCard Enhanced Consumer VDBT Visa Debit Card
MCFL MasterCard Fleet VDCD Visa Commercial Debit
MCGD MasterCard Gold VIBS Visa Business Card
MCHV MasterCard High Value VICP Visa Corporate
MCNW MasterCard New World VIEL Visa Electron
MCPC MasterCard Prepaid Commercial VIFL Visa Fleet
MCPL MasterCard Platinum VIGD Visa Gold
MCPP MasterCard Prepaid Consumer VINF Visa Infinite Card
MCPU MasterCard Purchasing VIPL Visa Platinum Card
MCWC MasterCard World Card VIPP Visa Prepaid Card
MCWE MasterCard World Elite Corporate VIPU Visa Purchasing
MCWS MasterCard World Signia VISA Visa Credit Card
MDBT MasterCard Debit Card VISG Visa Signature Card
MDCD MasterCard Commercial Debit VISP Visa Signature Preferred MDMC MasterCard Prepaid Maestro Commercial VIVP Visa VPAY
HSBC Merchant Services
THIS INVOICE DETAILS CHARGES FOR YOUR CARD PROCESSING AND TRANSACTIONS RECEIVED BY US FOR THE PERIOD OF 28 JANUARY 2011 TO 27 FEBRUARY 2011.
YOUR CHOSEN BANK ACCOUNT(S) WILL BE DEBITED ON OR AFTER 14 DAYS OF THIS NOTICE.
THANK YOU FOR USING HSBC MERCHANT SERVICES FOR YOUR CARD PROCESSING.
SUMMARY OF CHARGES GBP CHARGES
COMBINED TRANSACTION CHARGE GBP 708.52 DR
INTERCHANGE GBP 120.04 DR
NET CHARGE (VAT RATED) 96.00
NET CHARGE (ZERO RATED/EXEMPT) 839.50
TOTAL NET CHARGE 935.50
VAT 19.20
TOTAL GBP CHARGES GBP 954.70 DR
VAT NO: 927271515
VAT IS APPLIED AT 20% TO SOME CHARGES SHOWN ABOVE. ALL OTHER CHARGES ARE VAT EXEMPT AND NO INPUT TAX MAY BE RECLAIMED.
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HSBC Merchant Services
Page 3/5 CARD SUMMARY
DATE MASTERCARD VISA UK MAESTRO/SOLO AMEX DINERS OTHERS
31-Jan 150.23 1,078.56 0.00 75.00 0.00 57.20
01-Feb 530.00 465.66 0.00 0.00 87.42 158.98
02-Feb 2,550.86 5,324.70 200.00 0.00 233.77 0.00
03-Feb 3,801.48 3,094.53 100.00 80.00 40.00 253.20
04-Feb 571.20 808.30 0.00 240.00 835.26 42.38
07-Feb 1,446.55 387.47 0.00 0.00 0.00 0.00
08-Feb 1,485.94 2,147.16 290.00 0.00 40.00 140.00
09-Feb 0.00 1,582.30 0.00 0.00 0.00 0.00
10-Feb 470.85 1,324.43 0.00 0.00 0.00 0.00
11-Feb 240.28 1,099.32 0.00 1,326.40 0.00 63.56
14-Feb 92.46 662.46 0.00 0.00 140.00 150.00
15-Feb 730.78 1,217.89 0.00 141.25 13.82 0.00
16-Feb 9,802.40 5,306.42 498.00 0.00 48.74 473.48
17-Feb 1,689.76 3,188.39 0.00 514.45 0.00 50.00
18-Feb 2,561.12 2,784.44 80.00 0.00 0.00 0.00
21-Feb 1,109.43 1,098.14 0.00 0.00 0.00 351.18
22-Feb 431.01 243.19 0.00 0.00 0.00 0.00
23-Feb 182.94 968.79 0.00 0.00 0.00 181.60
CARD TOTAL 27,847.29 32,782.15 1,168.00 2,377.10 1,439.01 1,921.58
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HSBC Merchant Services
HSBC Merchant Services
Page 5/5 OTHER FEES
VAT APPLICABLE FEES
CARD CHARGE DESCRIPTION NUMBER RATE AMOUNT CURRENCY 5XXX Tally Rolls 16 1.25 20.00 GBP
4571 Sagem Portable 2 23.00 46.00 GBP 4XXX GA@ USER 3 10.00 30.00 GBP
TOTAL 96.00 GBP
VAT 20% 19.20 GBP
SUB TOTAL 115.20 GBP
INC VAT
NON VAT APPLICABLE FEES
CARD CHARGE DESCRIPTION NUMBER RATE AMOUNT CURRENCY VISA 2419 UK BASE24 155 0.0195 3.02 GBP
MC 2419 UK BASE24 150 0.0195 2.92 GBP
RFI 6930 PER ITEM 1 5.00 5.00 GBP
SUB TOTAL 10.95 GBP
TOTAL 126.15 GBP
MESSAGES [Free Format Text Section]
The figures quoted are for illustrative purposes only. VAT rate is charged at current rate and will be varied with any change in the rate.
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Chargebacks
Introduction
A chargeback is a transaction that has been disputed by the cardholder or card issuer and returned to us. A chargeback is also known as a ‘dispute.’
Each chargeback has specific rules, regulations and time limits within which HSBC Merchant Services must operate. These are set by MasterCard and Visa and influence the actions we are able to take when dealing with chargebacks. We will do everything possible within the rules to defend the chargeback on your behalf.
There are a number of different reasons why a transaction can be charged back, but they mainly fall into two categories:
g the cardholder or the card issuer is disputing the transaction, for example the card and cardholder were not present at the point of sale and fraud may have taken place
gthe cardholder disputes the underlying transaction, for example, in the case of late delivery of goods or services, or the wrong goods have been delivered.
We will always advise you by letter of the chargeback prior to the debit or credit being applied to your account. Whether we can defend the chargeback depends on whether the transaction has complied fully with the rules set by MasterCard or Visa. Where possible, for example, where a transaction has been authenticated by chip and PIN and you are not liable, we will automatically defend the chargeback on your behalf. In the event additional information/documentation is required from you, you will receive notification in writing and the disputed amount will be debited to your account.
If we write to you, it is crucial that you return the requested information, in a clear format, to us within the timescale stipulated in our letter. Failure to do so may prevent us from taking any further action in defending the chargeback within the time allowed.
Requests for such documentation can be received up to 180 days after the transaction has been debited to the cardholder’s account or the service received. However, in some circumstances, for example when fraud is involved, documents can be requested up to three years after the transaction date. It is therefore essential that you are able to retrieve such documents easily.
Remember, card data must be stored securely (see page 55).
Please contact us (see page 66 for contact details) if you need to discuss a chargeback letter or if you are unsure what documentation is required.
What Is A Retrieval Request?
We raise a retrieval request when a cardholder queries a credit or debit card transaction. This is often because the cardholder cannot remember undertaking the transaction.
A retrieval request is not a chargeback. This means we do not debit any money from your
account. However, a retrieval request can turn into a chargeback if the information the card issuer receives from us is illegible or insufficient to satisfy the cardholder’s enquiry.
It is important that you reply to a retrieval request immediately because if you fail to do so, under the rules set by MasterCard and Visa, we may lose the right to defend any subsequent chargebacks.
How To Prevent Chargebacks
Card Present (CP) Transactions
Chip and PIN cards and terminals have made substantial advances in preventing card fraud and are now the norm.
Card Schemes require all CP transactions to be performed using a chip and PIN terminal when presented with a chip and PIN card. Fallback from chip to magnetic stripe is allowed if, after inserting the chip, your terminal prompts you to follow this process.
In addition, there are still many legitimate cards in circulation where you will have to use the cardholder’s signature to verify transactions. Many of these cards have been issued overseas or to cardholders unable to use a PIN.
The best way to minimise the risk of CP chargebacks is to carefully follow the prompts provided by your terminal. If the terminal authorises a payment and prompts the cardholder to sign, then this should be allowed, subject to the normal checks associated with a signature-verified transaction (see page 8).
Please note that all non-chip transactions are subject to authorisation. Your terminal will prompt for this. However, if you are using fallback paper vouchers due to a terminal fault, power failure etc, you must obtain a telephone authorisation for each transaction. Please see page 66 for our authorisation centre number.
Card Not Present (CNP) Transactions
In a CNP environment, it is important to remember that you are liable for chargebacks. If you follow the points listed below together with the important information listed in the
‘How To Reduce Fraud’ section on page 58, your risk will be minimised:
g if a customer asks to collect the goods, perform the transaction at the time of collection as a cardholder present transaction through your point of sale equipment
g always send goods by recorded or special delivery or by a reputable security carrier. Insist on a signed (preferably by the cardholder) and dated delivery note. Tell the courier not to make the delivery if the premises appear to be vacant. Please note that proof of delivery alone is not sufficient evidence to defend a chargeback
g do not release goods to third parties such as taxi drivers and messengers
g be cautious of transactions where the billing address is different to the requested delivery address. Avoid delivering to addresses other than the cardholder’s, such as hotels, internet
cafes and ‘care of’ addresses
g be wary of requests for next-day delivery, requests to alter the delivery address at short notice, or telephone calls on the day of delivery requesting a specific delivery time
g be cautious of customers who give mobile phone numbers as their only form of contact g be wary of an order emanating from an e-mail account where the customer’s name is not
reflected in the e-mail account address
g be suspicious with transactions that have an unusually high value or volume for your type of business or the sale is ‘too easy’. In our experience these are the more likely ones to be fraudulent
g when performing a refund, always refund to the same card used for the original transaction g keep a database of chargeback history to help identify patterns of fraudulent transactions. If
a sale seems too good to be true then it probably is. Do not be afraid to contact the cardholder to ask further questions or request additional identification. A genuine customer should be pleased you are security minded and trying to protect them from fraud
g where possible, perform Address Verification Service (AVS) and Card Security Code (CSC) checks (see page 60). Refer to your terminal manual or terminal supplier for assistance on using this security feature. May we remind you though that you are not allowed to store the CSC data
g for e-commerce transactions, an additional layer of security can be incorporated into websites.
MasterCard SecureCode and Verified by Visa (VbV) have been developed by the Card Schemes to allow customers to authenticate themselves as the genuine cardholder (see page 61). To accept Maestro cards over the internet, you must support MasterCard SecureCode
gif you proceed with a transaction that you are unsure of, you are doing so at your own risk. If the transaction has been completed, but the goods have not been despatched, you are still in a position to carry out a refund.
The majority of chargebacks result from transactions being undertaken fraudulently. If you proceed with a transaction that appears suspicious, then you are doing so at your own risk.
Obtaining A Successful Authorisation
Please see the ‘Authorisation’ section on page 13 for information on card authorisations.
A credit or debit card authorisation is a way of verifying the card has not been reported lost/stolen and the cardholder has sufficient funds at the time of the call. It does not, however, guarantee the transaction.
When contacting our authorisation centre please select the appropriate option, or your chargeback risk may increase.
g‘Code 10’ Referral – See ‘Code 10 Call’ on page 16
gAuthorisation – This option is for a new authorisation request. In other words, you have not previously sought authorisation. Do not use this option if your point of sale equipment has requested you to contact us for a referral. See the next bullet point
g Referral/request to call the Authorisation Centre – This option must be used when the electronic point of sale equipment has requested that a call is made to the authorisation
centre. This enables the operator to recall the original authorisation request. In addition, you are also required to complete a manual imprinted voucher of the card, which the customer should sign. Following the process above will ensure that your chargeback risk is minimised gCancel a previously issued authorisation code – This option should be used when a
decision has been made not to proceed with a transaction for which authorisation has already been granted, for example, the cardholder decides not to proceed with the purchase before it is completed but after an authorisation has been granted. However please note that this will only cancel the authorisation code and not the transaction. If the sale has proceeded and you wish to cancel the transaction, you should contact our HSBC Merchant Services Card Processing Helpdesk (see page 66 for contact details).
Proof Of Receipt
Please see ‘Card Not Present (CNP) Transactions’ on page 50 for information on the delivery of goods and the importance of obtaining proof of delivery. Please note that proof of delivery alone is not sufficient evidence to defend a chargeback.
If you complete a sale for goods or services away from your business premises, we recommend using a mobile terminal to validate the transaction. If you do not have this facility we strongly recommend that you take an imprint of the card and request the customer to sign the voucher.
This will minimise your risk of financial loss. Make a note of the card details and then input them on your terminal when you return to your business premises. If the transaction is later charged back, we will require evidence that the card and cardholder were present at the time of the transaction.
Deposit Taken - Goods Ordered, But Not Immediately Delivered
This is also sometimes known as a ‘delayed delivery’ and is typically used for transactions where it is not possible to immediately supply the purchased goods, for example, a large piece of furniture that has to be made to order. In these instances you may require the cardholder to make the purchase as two separate transactions, the first for the deposit and the second for the outstanding balance.
When completing a sale using this method, it is important that the two transactions are processed separately and the second receipt is not processed before the goods have been despatched. If you do process the receipt for the balance earlier than the date that the goods have been despatched, a cardholder may view this as ‘goods not received’ and request their card issuer to chargeback the transaction.
Under Card Scheme Rules, the transaction receipt for the deposit may be submitted for processing before the delivery of the goods or services. However, the transaction receipt for the balance must not be submitted until after the goods have been despatched. If the difference between the goods being ordered and despatched is less than 30 days, this rule does not apply.
In all instances, to help identify the order, the word ‘deposit’ or ‘balance’ must also be written on the appropriate transaction receipts.
Non-receipt Of Goods Or Services Not Rendered
g Do not process a card transaction until the goods have been sent or the services have been provided
g do not process any credit or debit card transactions where the cardholder has already paid for the goods or services using an alternative method of payment
g obtain the cardholder’s signature on your delivery notes or service sheet following the completion of the service
g if you are unable to deliver all good or services in full, keep the cardholder informed of your actions at all times
g if you have debited a cardholder for goods that cannot be despatched, only process a partial transaction. Obtain an authorisation for the value of the goods that you are able to send. The original authorisation code for the full amount should be cancelled through our authorisation centre (see page 66 for contact details) and a second call made for the full value of the goods that are then available to be sent. Keep detailed records.
Goods Not As Described
g You must ensure that the goods ordered by a cardholder are delivered or provided exactly as described in your brochure or advertisement. If you are unable to provide the exact specification including colour, size, quality and quantity, then you must notify the cardholder of the change and seek their approval to accept the revised option
g the goods should be delivered in a timely manner and be suitable for the purpose for which they were ordered, for example theatre tickets that arrive after the date of the performance are not acceptable
g if goods are received by a cardholder and are damaged, broken or otherwise unsuitable for the purpose for which they are required, then the cardholder will have the right to chargeback the transaction
gif the cardholder returns the goods to you then you are required to reimburse the cardholder with the total value of the returned goods immediately.
Recurring Transactions – Additional Procedures
Please see ‘Recurring Transactions’ on page 31 for general information of recurring transactions.
When we request evidence of a recurring transaction, we must receive the following information within 14 days of the date of the letter:
g copy of cardholder’s written authority g transaction date
g transaction amount
g authorisation code, if applicable g your business name and address g type of goods or service provided
g delivery address, if different from the cardholder’s statement address.
A recurring transaction will automatically be charged back to you if:
g the cardholder has closed their account, irrespective of whether they have notified you g the cardholder disputes the transaction for any reason
g you are advised that the cardholder is deceased, in which case you must cancel the authority immediately.
Other Chargeback Reasons
Some other common reasons for chargebacks are listed below. This is not meant to be an exhaustive list and providing you follow the guidelines provided in these Merchant Operating Instructions, chargebacks should be avoidable.
g Duplication – transactions have been submitted multiple times
g incorrect refunds – a refund has not been processed or has not been credited to the same cardholder account that was originally debited (see page 18)
g fraud – the transaction was completed for an illegal or fraudulent purpose and you were or should have been aware of such illegality or fraud (see page 58)
g third party transactions – you process and submit to us a transaction on behalf of a third party (see page 7)
g breach of Agreement – you have departed from the terms of your Agreement with us.