New processing requirements from MasterCard and Discover?

[VinceS]

We just got an email from AuthNet about new processing requirements from MasterCard and Discover. Will ShopSite be supporting these new requirements, and if so when?

The new requirements are below:

MasterCard and Discover are modifying their rules concerning the processing of debit, prepaid and gift cards. 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.

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.

What are the requirements?
MasterCard and Discover are requiring that all merchants support the following:
* Balance response transactions — 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.
* Partial authorization transactions — 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.
* Authorization reversals — 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.

Thanks!
Vince at AhoyCaptain.com

[Jim]

Some time before "June 30, 2011" Which is over a year away.

[m2]

I got the impression from the Authnet announcement that merchants who only process online transactions aren't affected by the new regulations; it's a requirement for card-present transactions.

Did anybody else interpret it that way?

(I'm not saying that ShopSite merchants aren't affected by the new regs; just wondering if my take-away was correct.)

thanks,
m2

[Jim]

Based on this "displayed on the Web page" I would assume that it affects online stores as well since brick and mortar stores don't have a "Web page" that he shopper sees.

[Jim]

We have created a knowledge base solution about Authorize.net's email dealing with the new MasterCard and Discover requirements. http://support.shopsite.com/KBase/questions/2524.

Merchants should also follow Authorize.net's website for details on the transition. http://www.authorize.net/support/pafaqs/

Until Authorize.net has finalized their solution ShopSite can't implement it, but when it is available ShopSite will add the features required.