Hi - I received the following email from Authorize.net today about upcoming rule changes to credit card processing. This looks like some changes will be needed to the core Authorize.net module so just wanted to post here to flag it up to the team. Have also attached the Authorize.net AIM API Update doc detailing the changes needed.

cheers

Jason

New MasterCard and Discover Processing Requirements

Dear Authorize.Net Merchant:
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.

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 http://www.authorize.net/support/pafaqs/#when.

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 http://www.authorize.net/support/pafaqs/#do for information on the changes they will need to make.

Do I have to support the requirements?
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.
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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jtbayly’s picture

jtbayly commented

I got this, also. Subscribe.

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vega commented

Also need this. Subscribing

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rfay’s picture

rfay
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Title: MasterCard & Discover - new rules and regs » MasterCard & Discover/Authorize.net - new rules and regs as of June 30, 2011

Note that for Authorize.net users these changes do not take effect until June 30, 2011.

Also see related conversation on the ubercart.org site.

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joshuautley commented

I have multiple clients who will need an Ubercart upgrade once an update is available. subscribe.

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deggertsen commented

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kwinters commented

This isn't just an authorize.net issue. It potentially affects ALL MC / Discover transactions placed through any e-com software, and I'm pretty sure it's going to require changes to the core Ubercart modules as well (order, cart, credit, etc.).

Authorize.net got an extension, so it may be a more immediate problem for other processors.

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kwinters commented
Title: MasterCard & Discover/Authorize.net - new rules and regs as of June 30, 2011 » MasterCard & Discover - new rules and regs

@rfay in #6

I don't actually think that PCI compliance forum issue is directly related, just in the same vein. This new thing is new mandatory features, while the other involves PCI compliance (security). Moved that to this issue instead: #790958: Visa PCI Compliance Requirements, July 1 2010

Changing title back to original, since this is affecting other gateways as well (only the date is different for A.N): https://www.x.com/docs/DOC-2021

For cross-referencing, here's the task to implement it in uc_payflowpro (in the other module's queue, not a duplicate but dependent on this one): #790944: New MasterCard and Discover Rules

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longwave
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Status: Active » Closed (won't fix)

UPDATE: E-commerce merchants are now only required to provide support for authorization reversals. Though no longer required, partial authorizations and balance responses are considered best practices, and Authorize.Net still highly recommends that e-commerce merchants provide support for all three requirements.

So, it looks like we don't actually have to do anything here now the rules have changed.