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Helpful POS Information

Merchant POS Violation Process Overview

Merchants must follow MasterCard and Visa rules and regulations when accepting these cards for payment. If the card brand receives a cardholder complaint which violates their rules, the card brand will present a POS Violation Notification to the Processor/Acquirer outlining the specific violation with the expectation the merchant corrects the issue.

Below are examples of POS Violations (but not limited to) that will need to be addressed if a Point of Sale Violation is received:

• Charges to Cardholders (Surcharging)
Surcharging cannot be assessed in face-to-face environments

• Requiring Supplement/Personal Identification or Information
Merchants cannot require information as condition of sale; however, if the card is not signed, identification is needed and the card is to be signed in the presence of the merchant

• Honor all Properly Presented Cards
Merchants must accept any valid card in its category of acceptance that a cardholder properly presents for payment

• Discounts at the Point-of- Sale (Cash vs Credit)
Merchants must clearly disclose a discount from the standard price

• Improper Card Acceptance Procedures for Manual Cash Advances
Effective January 1, 2011, the minimum amount for manual cash disbursements is eliminated
A maximum of not less the $5,000 may be established
All valid cards embossed or not, must be honored
Financial institutions are obligated to provide manual cash disbursements even if the cardholder does not have an existing banking relationship with the financial institution

• Not Obtaining an Authorization for a Transaction
Authorization must be obtained before a transaction is processed

• Cardholder Number not Truncating on Sales Receipt
All but the last 4-digits of a cardholder must be truncated
The cardholder receipt must be truncated. Card Brands strongly suggest that the merchant copy be truncated but it is not mandated. The merchants should abide by their state laws.

• Refinancing Existing Debt
A merchant must not accept a card to collect or refinance an existing debt

• Minimum/Maximum Transaction Amounts
Per the Dodd-Frank Wall Street Reform and Consumer Protection Act, merchants can set a transaction amount up to and including a $10 minimum on credit cards only
Maximums are still prohibited except for U.S. Government owned or controlled agencies or merchants with the following merchant category codes
8220 - College, Universities
8244 - School Business and Secretarial
8249 - School Trade and Vocational

Learn More About POS Rules & Regulations

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