Access Fee Sales Training
NPC Secure Access Fee
Patrick Brophy
What is an Access Fee?
A percentage or flat rate fee charged over the regular amount of the transaction in exchange for providing the customer with the ability to make a payment using a credit card Also known as a convenience fee, but should not be called a surcharge Available only to specific merchant categories
2
Confidential
Why Use NPC Access Fee?
Merchants who are eligible for Access Fee processing
are part of what Visa and MasterCard have recognized as the Emerging Markets The Emerging Markets represent merchants that do not typically provide credit cards as a payment option to their customers As an incentive to accept credit cards, these merchants who accept a convenience fee are not responsible for interchange costs or vendor fees – those are paid for by the convenience fee that is paid by their customers
3
Confidential
How Does NPC Access Fee Work?
The cardholder presents a credit card to the merchant NPC Secure automatically calculates the Access Fee
amount based on what was entered at the time of boarding The transaction is processed in two pieces:
The primary amount (the merchant volume) is processed under the merchant’s main MID
This MID belongs to the merchant No interchange or other fees are deducted from this MID
The convenience fee is processed under the merchant’s Access Fee MID that was created at the time of boarding
This MID belongs to NPC All interchange and processing fees for both the primary and convenience fee transactions are taken from this MID
4
Confidential
Card Association Convenience Fee Rules
MasterCard (& Discover)
The convenience fee must be applied to all payment
types Swiped / Card Present transactions are permitted Percentage fees are permitted as well as flat rate fees
Visa
The fee may only be charged through an alternative
payment channel Swiped / Card Present transactions are not permitted
Except in the case of tax payments (MCC 9311)
Percentage fees are not permitted (only flat rates) Except in the case of tax payments (MCC 9311)
5
Confidential
Card Association Convenience Fee Rules
In summary, non-tax merchants who wish to accept MasterCard (Discover) AND Visa transactions with a convenience fee can only do so by accepting a flat fee in a Card Not Present environment
Note: American Express is not available for Access Fee merchants at this time 6
Confidential
Do’s & Don’ts Access Fees
% Convenience fee processing is only allowed
by MC, Discover (and Visa for Tax Payments only – registration required) Flat rate allowed by all card brands, but must be the same across all brands Visa does not allow a sliding scale for the flat rate convenience fee Face-to-face retail transactions permitted only by MC, Discover (and Visa for Tax Payments only – registration required) NPC requires amendment to be submitted with application
7
Confidential
Required Documentation
Merchant application
The requested Access Fee must be listed
If the merchant will be charging a percentage fee then this must be listed as the VS/MC discount rate
This percentage must be at least 2.95%
If the merchant will be charging a flat rate fee then this must be listed as the VS/MC inquiry fee
Flat rate fees require Finance’s approval
If both inquiry fee and discount rate are entered then the app will be pended as typical processing rates do not apply to Access Fee merchants - A new signed application may be required
8
Confidential
Required Documentation
Merchant application (cont.)
The type of application is irrelevant because the selection of the Access Fee product automatically puts the merchant in a non-bill associate and chain
The tiered application is preferred, however… The IC+ application will work, simply a matter of more clicks to key the app
The account will not be pended if the IC+ application is used
An email address must be listed for use in the NPC Secure setup 9
Confidential
Required Documentation
Access Fee Amendment
A signed Access Fee amendment must be included,
otherwise the account will be pended If the merchant will be accepting tax payments (MCC 9311) then a different amendment is required
Email from Finance or SPQ (required for flat rate fees) This only applies to merchants that are requesting a flat rate
convenience fee If an SPQ or email from Finance is not included that approves the amount listed in the VS/MC inquiry fee then the application will be pended
10
Confidential
Setting Up NPC Access Fee in MAG
Only certain MCCs are allowed to accept NPC Access Fee:
4812 - Telecommunication Equipment & Telephone Sales 4814 - Telecommunication Services 4899 - Cable & Other Pay TV Services 4900 - Utilities - Electric, Gas, Water, Sanitary 5960 - Direct Marketing Insurance Services 6300 - Insurance Sales, Underwriting & Premiums 6399 - Insurance Default 6513 - Real Estate Agents & Managers - Rentals 8211 - Elementary & Secondary Schools 8220 - Colleges, Universities, Professional Schools & Jr Colleges 8299 - Schools & Educational Services (Not Elsewhere Classified) 8398 - Organizations, Charitable & Social Service 8661 - Churches - Religious Organizations 9211 - Court Costs, Including Alimony & Child Support 9222 - Fines 9223 - Bail & Bond Payments 9311 - Tax Payments 9399 - Government Services (Not Elsewhere Classified) 9405 - U.S. Federal Government Agencies or Departments
If the merchant is not in one of these categories then the Access Fee product will not be available in MAG
11
Confidential
Setting Up NPC Access Fee in MAG
BOTH the NPC Secure AND the Access Fee product must be selected in MAG when submitting the application
If the Access Fee product is not selected then the
secondary Access Fee MID will not be generated – if this happens then the application MUST BE RESUBMITTED!!!
The Access Fee product must be added before the application is submitted, otherwise the MID will not be generated, even if the product is added during validation
If the NPC Secure product is not added then this will delay the boarding of the account because the appropriate SRs and fees will not be generated
The Access Fee product, much like NPC Secure, is
only available for the TSYS front-end American Express should not be requested in MAG
12
Confidential
Scenario: Non-Tax with Flat Rate
Most common Access Fee setup as this allows a
non-tax merchant to accept Visa payments Requirements
Eligible MCC (other than 9311) Flat fee listed as the VS/MC inquiry fee
Finance must approve this fee (via email or SPQ) This approval must be uploaded into MAG
Merchant is Card Not Present Signed Access Fee amendment Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
13
Confidential
Scenario: Non-Tax with Percentage Fee
Least common setup as this does not allow a
convenience fee merchant to accept Visa payments Requirements
Eligible MCC (other than 9311) Percentage fee listed as the VS/MC discount rate
This fee must be at least 2.95% The Download Team will disable Visa in NPC Secure during setup
Signed Access Fee amendment Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 14
Confidential
Scenario: Tax with Percentage Fee
The preferred setup for Access Fee merchants
accepting tax payments as most of Visa’s restrictions regarding convenience fee processing do not apply Requirements
MCC 9311 Percentage fee listed as the VS/MC discount rate This fee must be at least 2.95%
Signed Access Fee amendment for tax merchants Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 15
Confidential
Scenario: Tax with Flat Fee
Rarely done because this does not take
advantage of the primary benefits for processing convenience fees that Visa allows in the other tax payment scenario Requirements
MCC 9311 Flat fee listed as the VS/MC inquiry fee
Finance must approve this fee (via email or SPQ) This approval must be uploaded into MAG
Signed Access Fee amendment for tax merchants Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 16
Confidential
Confidential
Patrick Brophy
What is an Access Fee?
A percentage or flat rate fee charged over the regular amount of the transaction in exchange for providing the customer with the ability to make a payment using a credit card Also known as a convenience fee, but should not be called a surcharge Available only to specific merchant categories
2
Confidential
Why Use NPC Access Fee?
Merchants who are eligible for Access Fee processing
are part of what Visa and MasterCard have recognized as the Emerging Markets The Emerging Markets represent merchants that do not typically provide credit cards as a payment option to their customers As an incentive to accept credit cards, these merchants who accept a convenience fee are not responsible for interchange costs or vendor fees – those are paid for by the convenience fee that is paid by their customers
3
Confidential
How Does NPC Access Fee Work?
The cardholder presents a credit card to the merchant NPC Secure automatically calculates the Access Fee
amount based on what was entered at the time of boarding The transaction is processed in two pieces:
The primary amount (the merchant volume) is processed under the merchant’s main MID
This MID belongs to the merchant No interchange or other fees are deducted from this MID
The convenience fee is processed under the merchant’s Access Fee MID that was created at the time of boarding
This MID belongs to NPC All interchange and processing fees for both the primary and convenience fee transactions are taken from this MID
4
Confidential
Card Association Convenience Fee Rules
MasterCard (& Discover)
The convenience fee must be applied to all payment
types Swiped / Card Present transactions are permitted Percentage fees are permitted as well as flat rate fees
Visa
The fee may only be charged through an alternative
payment channel Swiped / Card Present transactions are not permitted
Except in the case of tax payments (MCC 9311)
Percentage fees are not permitted (only flat rates) Except in the case of tax payments (MCC 9311)
5
Confidential
Card Association Convenience Fee Rules
In summary, non-tax merchants who wish to accept MasterCard (Discover) AND Visa transactions with a convenience fee can only do so by accepting a flat fee in a Card Not Present environment
Note: American Express is not available for Access Fee merchants at this time 6
Confidential
Do’s & Don’ts Access Fees
% Convenience fee processing is only allowed
by MC, Discover (and Visa for Tax Payments only – registration required) Flat rate allowed by all card brands, but must be the same across all brands Visa does not allow a sliding scale for the flat rate convenience fee Face-to-face retail transactions permitted only by MC, Discover (and Visa for Tax Payments only – registration required) NPC requires amendment to be submitted with application
7
Confidential
Required Documentation
Merchant application
The requested Access Fee must be listed
If the merchant will be charging a percentage fee then this must be listed as the VS/MC discount rate
This percentage must be at least 2.95%
If the merchant will be charging a flat rate fee then this must be listed as the VS/MC inquiry fee
Flat rate fees require Finance’s approval
If both inquiry fee and discount rate are entered then the app will be pended as typical processing rates do not apply to Access Fee merchants - A new signed application may be required
8
Confidential
Required Documentation
Merchant application (cont.)
The type of application is irrelevant because the selection of the Access Fee product automatically puts the merchant in a non-bill associate and chain
The tiered application is preferred, however… The IC+ application will work, simply a matter of more clicks to key the app
The account will not be pended if the IC+ application is used
An email address must be listed for use in the NPC Secure setup 9
Confidential
Required Documentation
Access Fee Amendment
A signed Access Fee amendment must be included,
otherwise the account will be pended If the merchant will be accepting tax payments (MCC 9311) then a different amendment is required
Email from Finance or SPQ (required for flat rate fees) This only applies to merchants that are requesting a flat rate
convenience fee If an SPQ or email from Finance is not included that approves the amount listed in the VS/MC inquiry fee then the application will be pended
10
Confidential
Setting Up NPC Access Fee in MAG
Only certain MCCs are allowed to accept NPC Access Fee:
4812 - Telecommunication Equipment & Telephone Sales 4814 - Telecommunication Services 4899 - Cable & Other Pay TV Services 4900 - Utilities - Electric, Gas, Water, Sanitary 5960 - Direct Marketing Insurance Services 6300 - Insurance Sales, Underwriting & Premiums 6399 - Insurance Default 6513 - Real Estate Agents & Managers - Rentals 8211 - Elementary & Secondary Schools 8220 - Colleges, Universities, Professional Schools & Jr Colleges 8299 - Schools & Educational Services (Not Elsewhere Classified) 8398 - Organizations, Charitable & Social Service 8661 - Churches - Religious Organizations 9211 - Court Costs, Including Alimony & Child Support 9222 - Fines 9223 - Bail & Bond Payments 9311 - Tax Payments 9399 - Government Services (Not Elsewhere Classified) 9405 - U.S. Federal Government Agencies or Departments
If the merchant is not in one of these categories then the Access Fee product will not be available in MAG
11
Confidential
Setting Up NPC Access Fee in MAG
BOTH the NPC Secure AND the Access Fee product must be selected in MAG when submitting the application
If the Access Fee product is not selected then the
secondary Access Fee MID will not be generated – if this happens then the application MUST BE RESUBMITTED!!!
The Access Fee product must be added before the application is submitted, otherwise the MID will not be generated, even if the product is added during validation
If the NPC Secure product is not added then this will delay the boarding of the account because the appropriate SRs and fees will not be generated
The Access Fee product, much like NPC Secure, is
only available for the TSYS front-end American Express should not be requested in MAG
12
Confidential
Scenario: Non-Tax with Flat Rate
Most common Access Fee setup as this allows a
non-tax merchant to accept Visa payments Requirements
Eligible MCC (other than 9311) Flat fee listed as the VS/MC inquiry fee
Finance must approve this fee (via email or SPQ) This approval must be uploaded into MAG
Merchant is Card Not Present Signed Access Fee amendment Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
13
Confidential
Scenario: Non-Tax with Percentage Fee
Least common setup as this does not allow a
convenience fee merchant to accept Visa payments Requirements
Eligible MCC (other than 9311) Percentage fee listed as the VS/MC discount rate
This fee must be at least 2.95% The Download Team will disable Visa in NPC Secure during setup
Signed Access Fee amendment Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 14
Confidential
Scenario: Tax with Percentage Fee
The preferred setup for Access Fee merchants
accepting tax payments as most of Visa’s restrictions regarding convenience fee processing do not apply Requirements
MCC 9311 Percentage fee listed as the VS/MC discount rate This fee must be at least 2.95%
Signed Access Fee amendment for tax merchants Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 15
Confidential
Scenario: Tax with Flat Fee
Rarely done because this does not take
advantage of the primary benefits for processing convenience fees that Visa allows in the other tax payment scenario Requirements
MCC 9311 Flat fee listed as the VS/MC inquiry fee
Finance must approve this fee (via email or SPQ) This approval must be uploaded into MAG
Signed Access Fee amendment for tax merchants Access Fee product AND NPC Secure product selected in MAG BEFORE application is submitted
Merchant can be Card Present or Card Not Present 16
Confidential
Confidential
