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[color=black>I]

Marcus - Hopefully this isn't the first you have heard about these requirements. Can we get some information as to how these will be addressed in BVC 5 and 6?[/color]

<SPAN style="COLOR: #123d59; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">

<SPAN style="COLOR: #123d59; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">

<SPAN style="COLOR: #123d59; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">New MasterCard and Discover Processing Requirements<SPAN style="mso-fareast-font-family: 'Times New Roman'"><o:p></o:p>
[/td][/tr][/table]<SPAN style="DISPLAY: none; mso-fareast-font-family: 'Times New Roman'; mso-hide: all"><o:p>[color=#000000><FONT] <o:p></o:p>[/color]
</TD>
[td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 0in; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent"]Your Payment Gateway ID is: &lt;removed&gt;
Dear Authorize.Net Merchant:

[color=#000000>This e-mail includes important information about the new requirements and the timelines regarding Authorize.Net's support of the requirements, so please read it thoroughly. </B>[/color]</FONT>

MasterCard's rule changes go into effect May 1, 2010, and Discover's rule changes go into effect April 16, 2010. However, Authorize.Net, MasterCard and Discover have worked together to extend these dates for all merchants using Authorize.Net solutions. Our merchants will now have until June 30, 2011, to implement support for the requirements within their systems.

[color=#000000>What are the requirements?</B>
MasterCard and Discover are requiring that all merchants support the following: [/color]</FONT>

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[tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes"]<TD style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 0in; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top>
<SPAN style="FONT-SIZE: 10.5pt; COLOR: #c2bd49; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">+<o:p></o:p>
[/td][td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 3.75pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 1.5pt; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top][color=#000000><SPAN]Balance response transactions <SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">— For prepaid and gift cards, once the card has been used, the remaining account balance will be transmitted along with the authorization response. The remaining balance must be printed on the customer receipt, displayed on the Web page or point-of-sale terminal, or both. <o:p></o:p>[/color]
[/td][/tr][tr style="mso-yfti-irow: 1"][td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 0in; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top]<SPAN style="FONT-SIZE: 10.5pt; COLOR: #c2bd49; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">+<o:p></o:p>
[/td][td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 3.75pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 1.5pt; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top][color=#000000><SPAN]Partial authorization transactions <SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">— When a customer's transaction amount exceeds the balance available on their debit, prepaid or gift card, instead of declining the transaction, a partial authorization for the amount available to the customer will be returned. This will allow the customer to pay for the remaining amount with another form of payment. This is called a split-tender transaction.<o:p></o:p>[/color]
[/td][/tr][tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes"][td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 0in; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top]<SPAN style="FONT-SIZE: 10.5pt; COLOR: #c2bd49; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">+<o:p></o:p>
[/td][td style="BORDER-RIGHT: #d4d0c8; PADDING-RIGHT: 0in; BORDER-TOP: #d4d0c8; PADDING-LEFT: 3.75pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #d4d0c8; PADDING-TOP: 1.5pt; BORDER-BOTTOM: #d4d0c8; BACKGROUND-COLOR: transparent" vAlign=top][color=#000000><SPAN]Authorization reversals <SPAN style="FONT-SIZE: 9pt; FONT-FAMILY: 'Arial','sans-serif'; mso-fareast-font-family: 'Times New Roman'">— An authorization reversal is a real-time transaction initiated when the customer decides that they do not want to proceed with the transaction, or if the merchant cannot complete the transaction for any reason. Authorization reversals free up the customer's available balance on their debit, prepaid or gift card. <o:p></o:p>[/color]
[/td][/tr][/table][color=#000000>What steps is Authorize.Net taking to support these requirements?
Authorize.Net will be updating our systems over the coming months to support the requirements, but will be dependent on each processor's readiness. For a table of when we anticipate we will support the requirements with each processor, please visit [/color]</FONT>http://www.authorize.net/support/pafaqs/#when.

[color=#000000>What do I need to do to support the requirements?
The steps that you will need to take to support the requirements depend on how you connect to the payment gateway. For example, if you connect using a shopping cart, point-of-sale device, or other solution, you will need to contact your solution provider to confirm that they will be supporting the requirements. If you connect using a direct integration, you should contact your Web developer for assistance. Please direct your Web developer to [/color]</FONT>http://www.authorize.net/support/pafaqs/#do for information on the changes they will need to make.

[color=#000000>Do I have to support the requirements?</B>
MasterCard and Discover are requiring all merchants to support the requirements with the exception of merchants that exclusively process transactions via batch uploads, mail order/telephone order (MOTO), or recurring payment transactions. Your Merchant Service Provider (MSP) is ultimately responsible for determining if the requirements apply to your business, so please contact them for assistance in determining if your company is exempt. [/color]</FONT>

Once again, these requirements will not be enforced for Authorize.Net merchants until June 30, 2011. However, we wanted to bring them to your attention now so that you have plenty of time to plan for their implementation.

For more information on the requirements, including how they affect our value-adding services, please visit our FAQ page at http://www.authorize.net/support/pafaqs/.

Thank you for your attention to these important changes and for being an Authorize.Net merchant.

Sincerely,
Authorize.Net
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I love it. MC and Discover want to force merchants to allow multiple payment methods on a order. There are tons of carts out there that have no ability to handle split-tender transactions. Doesn't matter to them... just make it happen. Just like PCI-DSS compliance.

And they want to force us to show the remaining balance on a gift card. Funny, I didn't see my remaining balance on the POS receipt I got the other day from McDonald's. I'm sure we will soon. :)

Thanks Marcus.

Personally, I am torn on this issue. I used to work in the payment card industry, and had to go through the whole PCI thing long before any merchants were required to. We had to jump through a lot of hoops to try to keep up with the policy changes, it wasn't easy and the fact that the company didn't have many formalized policies in place (or formalized job descriptions in many cases) made the task monumental.

However, as painful as the process is, in the end we end up with better software and better practices. All of the shopping carts that don't offer split-tender transactions will be a thing of the past (including the custom one I am maintaining). And shopping cart workflows will no doubt be redesigned to allow for easier implementation of additional changes down the road.

So, if you like the additional payment methods more, will we see eBillMe and BillMeLater as checkout options in the future? :)