merchant processing application and agreement form · pdf file ·...

Merchant Processing Application and Agreement Form (MPA)

Agent Training

First Data Learning Organization

Copyright 2010, First Data Corporation. All Rights Reserved. Developer: 26/CD Rev: 5/17/2010

Copyright 2009 First Data Corporation. All Rights Reserved. 2

ObjectivesThis presentation will prepare you to:

• Recognize the fields within the Merchant Processing Application and Agreement (MPA) form.

• Identify the importance of many sections within the MPA

• Complete all fields on the MPA appropriately.

• Identify the cause and effect if fields are not completed correctly.


General Binding Contract InformationIt is important to have industry knowledge and recognize that once a contract is signed by the merchant the pricing disclosed is legally binding.

The information populated in each field of the MPA by a sales representative is keyed exactly as is in the MAE+ boarding account entry tool. Completion of the form is essential to ensure delays of the approving process of the account is minimal.


General Binding Contract InformationGeneral information regarding merchant paperwork:

Item ActionMerchant Processing

Agreement Contractual forms

All corresponding MPA’s must be completed and contain legible information, disclose all rates and fees, and be signed by legal owner or officer of the company.

Additional Credit Information / Site

Survey

The additional credit information may not be necessary for all types of merchants.

The site survey allows all appropriate entities to determine whether the merchant has the proper facilities, equipment, inventory and license or permit, necessary for the merchant to conduct business.

Program Guide Confirmation Page

The Program Guide describes the terms and conditions under which we will provide merchant processing services. The last page of the Program Guide must be completed and signed by the merchant.

Voided Check / Letter on Bank Letterhead

A voided check is required to ensure the integrity of the merchant’s banking information where funds are to be remitted. Starter checks are acceptable if the DDA and ABA are imprinted on the check.

If a voided check is unavailable, a letter on bank letterhead signed by an officer of the bank is acceptable (must have DBA name, DDA, ABA). The DDA must be a business checking account and must accept both credits and debits.


Sales Office InformationThe top portion of the Merchant Processing Application and Agreement form is client specific.

Field Description

Sales Office World Payment Services (no abbreviations).

Merchant Number Omaha merchant number (540924. . . .), this number is assigned upon approval and will be added to the MPA by World Payment Services Corporate office.

Print Sales Rep Name The name of the Sales Rep completing the MPA.

Sales Rep. Signature The signature of the Sales Rep who completed the contract.

Sales ID# The assigned Sales Rep ID # (for residual purposes)

Phone # Enter World Payment Services Corporate number: 866-783-8380


Section 1 – Business InformationThe Business Information section of the MPA encompasses the Doing Business As and the Client’s Corporate (Legal Name) information.


Section 1 – Business Information, cont’dField Description

Client’s Business Name Name of the business location - (Doing Business As).

Business Address, City, State, Zip Address of the business location.

Location Phone # / Location Fax # Location’s phone number / Location’s fax number.

Client’s Corporation / Legal Name Name of the Corporate office (Business Legal name).

Billing Address, City, State, Zip Address of the Corporate location .

Contact Name Name of the contact at the Corporate location.

Business E-mail or Website Address

E-mail and/or URL of where business is transacted.

Customer Service Phone # The customer service number – will be placed on the cardholder’s statement. If merchant does not have a dedicated CS # use their location phone number.

Contact Phone # Contact’s direct line.

Contact Fax # / E-mail Address Contact’s fax and email address. *Email address is required

Send Retrieval Request to Select Business or Corp/Legal location – where retrieval will be sent.

Send Merchant Monthly Statement to

Select Business or Corp/Legal location – where statement will be sent.

How the business is recognized Select one of the choices – describes the type of business.


Section 1 – Business Information, cont’dField Description

Name IRS Filing Name – name that merchant files taxes under.

• Sole Proprietor - Owners Name.

• Corporation - Legal Name.

• If unsure, ask for former tax filings.

Federal Tax ID# Federal Tax ID or Social Security Number for the business; must be correct number.

• If IRS filing name is owners name, tax ID is owners Social Security #.

• Certain LLCs follow sole proprietor path others follow the company path.

• Company use EIN.

I certify that I am a foreign entity / nonresident alien.

Foreign Entity Indicator.

• Check this if merchant is not located in United States.

• If checked, need to provide W-8 form.

SIC/MCC 4 digit code referring to the merchant’s business. You can find a PDF version of all Universal MCC/SIC code in My Sales Office (path: My Sales Office > Help > Training > MCC Guide).

Detailed Explanation of Type of Merchandise, Products or Services Sold.


Section 2 – Additional Credit / Site Survey InformationThe Additional Credit / Site Survey Information section encompasses the Site Survey and Mail/Telephone Order/Business to Business Information


Section 2 – Additional Credit / Site Survey Information, cont’d

Field Description

Are you using a vendor Select Yes or No if a outside vendor completes the site visit. Note, questions 1 – 10 complete the site survey.

Question 1 - 13 Select the appropriate information.

Advertising Method Marketing Materials required for Mail Order, B to B, Internet over $1Million in annual volume. Attach Web Page for Internet Merchant.

Question 15 and 16 Name of previous processor and reason for leaving.

Mail / Telephone Order / Business to Business Information

Complete for all merchant types.


Section 3 – Company HistoryThe Company History section information encompasses the merchants trade references.

Field Description

DBA NameMerchant #

Doing Business As Name and full merchant number. These two fields are usually completed by the person who enters the information into the boarding system.

Date Business Started

The date the business opened. (MM/YYYY)

Prior Bankruptcies? Select Yes / No and Business and/or Personal.

Trade Reference 1Trade Reference 2

The vendor’s information used by the merchant.The vendor’s information used by the merchant.

Note All High Risk*,(Internet and MOTO merchants require 2 Trade References. Trade Reference are also required for Regular Risk* merchant who process over $2 million in Bankcard transaction a year.


Section 4 – Owners / Partners / OfficersThe Owners / Partners / Officers section information encompasses the individuals who financial records are researched by FD risk and/or underwriting department.

Field Description

DBA Name and Merchant #Doing Business As Name and full merchant number.

Name / Title / Home Address / Telephone Full name, full title, full home address.

OwnershipNo threshold per ownership – 1% to 100%.

Social Security #Full Social Security Number is REQUIRED.

SSN’s are required. Having said that if a signer does not want to provide SSN, then either of the following is required:1. Copy of a Valid Passport or;2. Copy of a Valid Driver’s License and Birth Certificate.For your information, SSN’s are required in all applications, except for the following:1. Publicly-traded companies;2. Nationally known charities such as the Red Cross, United Way et al;3. MPA’s submitted from bank partners, in which case, the signer has already been OFAC screened4. Government entities.If the merchant does not fit any of the above categories, SSN’s are required.

D.O.B / DL # / StateDate of Birth, Full driver license number and state issued.


Section 5 – Settlement InformationThe Settlement Information section encompasses where the funding for the merchant needs to be delivered.

Field Description

Deposit Bank Full name of merchant’s bank.

Transit / ABA # Full transit routing number (ABA number). Ensure the number matches the number on the voided check or the number on bank’s letterhead.

Bank Contact If unknown, enter branch manager or customer service.

Deposit Account # Full deposit account number. Ensure the number matches the number on the voided check or the number on bank’s letterhead.

ACH Detail Flag Choose Individual, Combined or Separate – this is how settlement information will be sent to the merchant’s acquiring bank.

Combined – reports net deposit into one line on merchant’s DDA.Individual – a separate outgoing ACH for EACH batch deposit, a separate outgoing ACH for EACH batch discount, and a separate outgoing ACH for EACH adjustment record.Separate – one outgoing ACH for all deposits, a separate outgoing ACH for all discounts, and a separate outgoing ACH for all adjustments.


Section 6 – Equipment/ Third Party InformationThe Settlement Information section encompasses equipment and Third Party Information.

Field Description

Network (Front End) Select the appropriate frontend that this merchant will process.

Frontend / Niche:

Omaha / Terminals

North / Softwares & VARS No Where Else Certified and Purchase Level III

Nashville / Internet Gateways & Softwares

BuyPass / Petroleum & Multi-lane Supermarkets

Top portion Provide information regarding the merchant’s equipment.

Lease Company If you are using the First Data Global Leasing program – this section is the legally binding contract with the merchant.


Section 7 – Grid InformationThe Grid Information section encompasses all grid IDs associated with the merchant account. Typically completed by the back-office personnel.

Field Description

Merchant Pricing Grid (MPG) for MC, VS, DISC

Are required to bill Worldcard or Reward Discount and / or a transaction fee based on where

the ticket qualifies (qual, mid or non-qualified).

Tiered Grid ID (TDG) for MC, VS, DISC

Are used to determine where the different Interchange Programs qualify.

3 Tiered TDG’s FACSRTL, FACSHTL, FACSMOTO, FACSREST, FACSPETR, FACSB2B Expanded (MasterCard Worldcard & Visa Rewards) Tiered TDG’sEXPRTL, EXPHTL, EXPMOTO, EXPREST, EXPPETR, EXPB2B

Authorizations Grid ID# Are used to bill a merchant their authorization & capture fees. The fees disclosed in section 9

of the fees on the grid must match exactly.

User Defined Grid ID# Are used to bill a merchant’s flat monthly fees.


Section 7 – Grid Information, cont’d


Section 8 – Transaction InformationThe Transaction Information section encompasses the merchants financial data and where the sale is transaction occurs.


Section 8 – Transaction Information, cont’d

Field Description

Gross Yearly Sales Volume Includes cash, credit, debit and checks – estimate high.

Average Yearly MC/Visa Volume Includes Visa and MasterCard– estimate high.

Average Yearly Discover Network Volume

Discover Full Acquiring – estimate high.

Average Yearly American Express OnePoint Volume

American Express OnePoint– estimate high.

Seasonal?High Volume Month’s Open

Select Yes or No. Yes indicates is the merchant is seasonal.

Months of high peak season.

Avg. MC / Visa / Discover Network Ticket (Estimate If Never Processed In Past)

Includes Visa, MasterCard and Discover Full Acquiring– estimate high.

Avg. American Express One point Ticket (Estimate If Never Processed In Past)

American Express OnePoint– estimate high.

Highest Ticket Amount Highest dollar amount the merchant can process – estimate high.

Where is sale transaction Ensure total equals 100%.

Merchant Initials Have the merchant initial the information completed on page 2 is valid and accurate.


Section 9 – Service Fee ScheduleThe Service Fee Schedule has many sections starting at the bottom of page two and continuing throughout page three. This presentation will break the section up, one section per slide.

The Service Fee Schedule sections encompass all communication pricing (Authorization Income Grid), miscellaneous pricing/monthly recurring pricing (User Defined Grid) and pricing methods (Tiered, ERR, and I/C).


Section 9 – Service Fee ScheduleAuthorization & Capture Transaction FeesThe Authorization and Capture Transaction Fees section encompass all communication pricing (Authorization Income Grid).

Field Description

MasterCard and Visa Authorization & Capture Fee (per item)

Price disclosed to merchant for VS /MC authorization and batch settlement fee.

Discover Network Authorization & Capture Fee (per item) Price disclosed to merchant for DISC Full Acquiring authorization and batch settlement fee.

American Express OnePoint / Full Service (EDC) OR American Express ESA / Pass Through

Check if yes they will process for these programs.

American Express Authorization Price disclosed to merchant for Amex OnePoint / non-Amex OnePoint (ESA) authorization.

JCB Authorization Price disclosed to merchant for JCB authorization .

Amex ESA / Pass Through SE# AmEx service establishment number. If merchant does not have one, write NEW in field.

JCB SE# JCB service establishment number.

TransArmor Auth Fee, Voice Authorization, Electronic AVS Fee, Voice AVS Fee, ARU Fee

Fields defined in detailed on the next slide.


Field Description

TransArmor Auth Fee, Voice Authorization, Electronic AVS Fee, Voice AVS Fee, ARU Fee

Communication pricing – associated with authorization income grid.

• TransArmor Auth Fee: Do not use, reserved for future use.

• Voice Authorization: Fee charged for calling 800-228-1122 for a voice approval from an authorization representative.

• Electronic AVS Fee: Fee charged for Address Verification Service (AVS) through the merchant’s point-of-sale (POS) device.

• Voice AVS Fee: Fee charged for AVS via 800-228-1111 / 800-228-1122, completed by an authorization representative.

• ARU Fee : Fee charged for 800-228-1111 and processing transactions over the automated response unit via touch-tone.

Section 9 – Service Fee ScheduleAuthorization & Capture Transaction Fees


Section 9 – Service Fee ScheduleMiscellaneous FeesThe fields within the Miscellaneous Fees section will be explained on the next few slides.


Section 9 – Service Fee ScheduleMiscellaneous Fees, cont’d

Field Description

Dues and Assessments Whether you want to pass Dues and Assessments to the merchant.

Chargeback Fee Chargeback fee to the merchant.

Retrieval Fee (12B Letter) Retrieval fee to the merchant.

Return Trans. Fee Return Transaction fee to the merchant.

Sales Transaction Fee Fee assessed on all bankcard settled transactions. If you place a price here AND in the auth & capture fee you will be billing the merchant twice for transaction fees.

Batch Fee If you place a price here AND in the auth & capture fee you will be billing the merchant twice for settlement.

Early Termination Fee Early termination fee to the merchant.

EBT-Food Stamps /EBT-Cash Benefits

Sales transaction fee to merchant for accepting EBT transactions. The merchant has to have an SE# provided by the government to be able to accept EBT transactions.

Other Client define fee - ensure you note monthly or yearly (i.e., Club fee 25.00/mth).

Annual Fee $ Annual fee. You can assess once a year or 1/12 of the annual fee each month.



Field Description

MC Other Item Rate MasterCard transaction fee assessed on settled items (sales and returns).

Visa Other Item Rate Visa transaction fee assessed on settled items (sales and returns).

Discover Network Other Item Rate

Discover (non full acquiring / full acquiring) transaction fee assessed on settled items (sales and returns).

Amex OnePoint Other Item Rate Amex OnePoint transaction fee assessed on settled items (sales and returns).

Amex OnePoint Other Volume % Percentage (basis points) assessed on net volume of Amex One Point transactions. This rate should be used to recuperate your FD contract base discount cost.

JCB Other Item Rate JCB transaction fee assessed on settled items (sales and returns).

Minimum Monthly Fee Minimum monthly fee - only ACH if minimum is not met.

Monthly Statement Fee Typically an area to recoup Account on File fee.

Pass Visa ACQ ISA Fee Yes – Pass the fee / No – Do Not pass the fee. Visa ISA fee of 0.40% is assessed against the volume of the transaction when the transaction involves a U.S. merchant & a foreign issuer.

Pass Visa Acquirer Processing Fee

Yes – Pass the fee / No – Do Not pass the fee. Visa Acquirer Processing fee is currently $0.0195 per Visa branded authorizations acquired in the U.S. regardless of where the issuer/cardholder is located.

Pass Visa Misuse of Authorization Fee

Yes – Pass the fee / No – Do Not pass the fee. Visa Misuse Authorization System fee is assessment of $0.045 fee for each authorization that does not have a subsequent clearing record or authorization record.



Field Description

Pass Visa Zero Floor Limit Fee Yes – Pass the fee / No – Do Not pass the fee. Visa Zero Floor Limit fee is an assessment of $0.10 fee for each transaction that does not have an approved authorization.

Pass Visa International Acquirer Fee Yes – Pass the fee / No – Do Not pass the fee. Visa International Acquirer fee is 0.45% of the sale transaction on all international transactions with the exception of high risk merchants. The current rate for merchants with an MCC of 5962, 5966 and/or 5967 (high risk) is 0.90%.

Pass MC Acquirer Support Fee Yes – Pass the fee / No – Do Not pass the fee. MC Acquirer Support fee of 0.55% is assessed on transactions qualifying for the following interchange programs:

• 025 – International Standard

• 026 – International Electronic

• 037 – Domestic Acquired International Business Card

• 038 – Domestic Acquired International Purchase Card

• 090 – Domestic Acquiring UCAF

• 091 – Domestic Full UCAF

• 153 – MC Electronic Consumer International Acquired in the U.S. – Credit

• 154 – MC Electronic Commercial International Acquired in the U.S. – Credit

• The Acquirer Support Fee is also assessed to Cirrus & Maestro transactions.

Pass MC Cross Border Fee Yes – Pass the fee / No – Do Not pass the fee. MC Cross Border fee is assessed with transactions that involve a U.S. merchant & a foreign issuer. The fee is 0.40% of the transaction amount when in U.S. dollars; 0.40% when in non-U.S. dollars.

Pass MC Network Access & Brand Usage (NABU) Fee

Yes – Pass the fee / No – Do Not pass the fee. MC Network Access Brand Usage fee of $0.0185 applies to all transactions.

Pass Discover Int’l Processing Fee Yes – Pass the fee / No – Do Not pass the fee. A fee (0.30%) charged for card sales (including cash over) & cash advances conducted at merchant in a country other than the country of domicile of the Issuer of the card used in the card sale or cash advance, provided that such a fee is not applicable to card sales or cash advances with JCB or China Unionpay cards.


Section 9 – Service Fee ScheduleMonthly Fees

Field Description

Monthly Fees Recurring monthly fees. Note, fees within this section required a User Defined Income grid to bill to the merchant.• Wireless Fee• eMerchantView Access Fee• Customer Service Fee• Debit Access Fee• Supplies • Other (5 lines to bill a customized monthly fee(s) to the merchant)


Section 9 – Service Fee ScheduleNetwork Acceptance & Discount

Field Description

Accept all MasterCard, Visa and Discover Network Transactions (presumed, unless any selection below are checked)

Accept All MC, V, Disc: It will be presumed that the merchant will accept and process MC, VS, DSCVR network credit and non-PIN debit; unless specified here.

Discount Collected: A merchant’s discount can be collected daily or monthly.

Note: Since First Data owns the risk on the merchant’s account, FD has the right to change the merchant from monthly to daily in order to increase our chances of collecting discount from the merchant.


Complete the appropriate section(s) based on the pricing option applicable to the merchant. Following slides provide information for Tiered, ERR, Interchange Pass Through.

Section 9 – Service Fee SchedulePricing Methods


Complete the appropriate section(s) based on the pricing option applicable to the merchant. Following slides provide information for Pass Through PIN Debit Network Fees, American Express OnePoint, TeleCheck and Fleet.

Section 9 – Service Fee SchedulePricing Methods, cont’d

Field Description

Merchant Initials Have the merchant initial the information completed on page 3 is valid and accurate & they agree to the fees and rates disclosed.


• Discount = Rates assessed on qual, mid-qual & non-qual qualified transactions (these rates go in the Discount Rate, Mid Qual Rate & Non Qual Rate fields in MAE+).

• Discount = Rates assessed on MC WorldCard qual, mid-qual and non-qual, VS Rewards 1 & 2 qualified transactions as well as Discover Network (these rates would be built in an MPG and the name of the MPG would go in the Pricing Grid ID field in MAE+).

Section 9 – Service Fee SchedulePricing Methods – Tiered


• Discount = Flat rate assessed on all transactions regardless of qualifications (this rate will go in the Discount Rate field in MAE+).

• Non-Qual Fees = Surcharge on non-qualifying transactions (this rate will go in the Enhanced Recover % field in MAE+).

Section 9 – Service Fee SchedulePricing Methods – ERR


• Pass Through PIN Debit Network Fees – Box needs to be checked.• Other Item Rate: transaction fee assessed on settled items.

(Note: PIN debit CT’s are not included within an Authorization Income Grid)• Other Volume Percent: Percentage assessed against the volume of the transaction.

• Pass Through Interchange – Includes Dues and Assessments > Box needs to be checked.

• Other Volume Percent > X.XX % = Basis points assessed on net volume.• Discount (MC Qual Credit/MC Qual Debit/Visa Qual Credit/Visa Qual

Debit/Discover Network Qual Credit/Discover Network Qual Debit) > X.XX% = Basis points assessed on gross volume.

Section 9 – Service Fee Schedule Pricing Methods – Pass Through Interchange and Pass Through Debit Network Fees


Section 9 – Service Fee ScheduleAmex OnePoint

American Express OnePoint:

• Use only this Pricing set by American Express.


TeleCheck:

This section of the MPA is used as the legal binding contract with a merchant who accepts TeleCheck. You are allowed to price the inquiry rate and per TXN fee as you want. The monthly minimum fee can be $20 or $25. All other fees are set by TeleCheck and cannot be changed.

Fleet:

• Wright Express Other item: transaction fee assessed against settled WEX transactions.

• Voyager Qual: percentage rate (basis points) assessed against the volume of the transaction (gross volume).

• Voyager Other Item: transaction fee assessed against settled Voyage transactions.

Section 9 – Service Fee ScheduleFleet and TeleCheck

Field Description

MerchantInitials

Have the merchant initial the information completed on page 3 is valid and accurate & they agree to the fees and rates disclosed.


Section 10 – Signature(s) Obtain a signature for all owners / partners / officers listed in section 4 of MPA.

Personal Guarantee always recommended in your Standard portfolio, but is required in your Tier II portfolio.

merchant processing application and agreement form · pdf file ·...

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