7   Indirect Acceptors

7.1   Indirect Acceptors

7.2   Indirect Acceptor Models

7.1     Indirect Acceptors

a.This Chapter 7, "Indirect Acceptors", states additional requirements applicable to Merchants approved and/or designated as Indirect Acceptors. All other provisions of the Agreement continue to apply to them as well.

b.To the extent possible, the provisions of this Chapter 7, "Indirect Acceptors", and the other provisions of the Merchant Regulations shall be interpreted to give each their full effect. However, if a conflict is deemed to exist between them, the provisions of this Chapter 7, "Indirect Acceptors", shall control.

c.Indirect Acceptors are considered Merchants and therefore subject to the Agreement and applicable provisions of the Merchant Regulations. We have the right, in our sole discretion, to approve and designate you as an Indirect Acceptor. If we designate you as an Indirect Acceptor, we may request that you provide to us additional information about your business. If we so approve and/or designate you, then:

i.you must comply with the requirements of this Chapter 7, "Indirect Acceptors", including the relevant policies applicable for each Transaction type.

ii.the prohibitions in the Agreement against acting on behalf of other parties will not apply to your acceptance of the Card, and

iii.in addition to our other rights and remedies, we, in our sole discretion, may require you to take such action and we may take such action as we deem necessary or appropriate to ensure compliance with policy, requirements, and Applicable Law. In the exercise of such discretion, we may consider the nature, willfulness, number, and frequency of occurrences, and possible consequences resulting from a failure to comply with policy and requirements and Applicable Law. We may also, in our sole discretion, provide notice and specify a timeframe by which an Indirect Acceptor must cure such non-compliance.

7.2     Indirect Acceptor Models

 

a.Indirect Acceptors may operate through one or more different models including, but not limited to, the following:

i.Digital Wallet Operator offering any of the following payment functionality to allow Cardmembers to make purchases or transfer funds through one or more methods:

a.Staged Back-to-Back Transaction

b.Peer to Peer (P2P) Transaction

c.Instalment Payment Transaction (sometimes called “Buy Now Pay Later” in our materials)

d.Stored Value Transaction (sometimes called “Top Up Wallet” in our materials)

ii.Bill Payment Provider

iii.Marketplaces

b.If we approve and/or designate you as an Indirect Acceptor, you are permitted to accept the Card to facilitate payments to eligible End Beneficiaries in accordance with the terms set forth in this Chapter 7, "Indirect Acceptors".

7.2.1      General Requirements for Indirect Acceptors

 

a.You must:

i.Accept the Card only to facilitate payments to eligible End Beneficiaries. You must not accept the Card to facilitate payments to any Entity other than an eligible End Beneficiary.

ii.Obtain from us a separate Merchant number for each Transaction type.

iii.Comply with all applicable provisions in the Merchant Regulations, in particular Chapter 2, "Transaction Processing", Chapter 3, "Authorisation",Chapter 4, "Submission", Chapter 5, "Chargebacks and Inquiries", and Chapter 6, "Special Regulations for Specific Industries".

iv.Comply with the requirements in Subsection 2.3.5, "      Merchant-Initiated Transactions", when processing non-Cardmember-Initiated-Transactions.

v.Obtain and maintain all required licenses and approvals necessary to conduct business, including Stored Value Transaction requirements to hold funds in reserve.

vi.Not accept the Card to facilitate payments to End Beneficiaries in prohibited or restricted industries. See Section 6.2, "Prohibited or Restricted Industries".

vii.Perform verification checks, credit checks, "know your customer," and anti-money laundering checks of End Beneficiaries in accordance with all Applicable Laws and otherwise as we may require, providing us, on request, copies of your policies governing these checks and otherwise responding to our request about your performance of these checks.

viii.Comply with the following, except for any Stored Value Transaction that you may offer:

a.Screen End Beneficiaries, applying reasonable measures to obtain and verify the customer identification information for each End Beneficiary in accordance with Applicable Law.

b.Complete anti-money laundering (AML) and anti-terrorist financing (ATF) Transaction monitoring that takes into consideration the End Beneficiary of the Transaction in accordance with Applicable Law.

c.Monitor End Beneficiaries for potentially suspicious or unusual activity, and ensure requisite reports are filed in accordance with Applicable Law.

ix.Provide us documentation that you comply with the requirements set out in this Chapter 7, "Indirect Acceptors", upon our request.

x.Provide to us the mandatory data elements as required in the Technical Specifications (see Section 1.3, "Compliance with our Specifications") with each Authorisation request and Submission. We may require you to provide us additional End Beneficiary data elements at any time at our sole discretion.

xi.Ensure that you submit accurate data and conduct periodic checks to ensure accuracy.

xii.Provide the MCC field in both the Authorisation request and Submission as follows:

Indirect Acceptor/Transaction Type

Merchant Category Code (MCC)

Bill Payment Provider

Must use the appropriate MCC for each End Beneficiary representing their business

DWO – Instalment Payment Transaction

Must use MCC 5999 - Miscellaneous and Specialty Retail

Marketplaces

Must use the appropriate MCC that most closely represents the majority of the Goods and Services throughout the Marketplace

DWO – Peer to Peer (P2P) Transaction

Must use MCC 6538 (P2P payment transfer of funds)

DWO – Staged Back-to-Back Transaction

Must use the MCC for each End Beneficiary representing their business

DWO – Stored Value Transaction

Must use MCC 6540 (Stored Value/Gift Card Purchase/Load)

xiii.Inform us promptly of any information related to any End Beneficiary that could reasonably be expected to lead to a Claim or demand against us by, or our liability to, a third party.

7.2.1.1       Customer Service Information

a.You and each End Beneficiary must maintain customer service information that is readily available for review by Cardmembers that use the Card for Transactions with Indirect Acceptors. We recommend the customer service information should provide clear instructions on how to contact you or the End Beneficiary, including an active customer service email address and telephone number.

7.2.1.2       Chargebacks/Disputed Charges

a.We may exercise Chargeback on Disputed Charges arising in connection with your provision of payment solutions to End Beneficiaries. You are fully responsible and financially liable for all Transactions and all other issues involving End Beneficiaries.

b.In addition, we may place you in one of our Chargeback programs. See Section 5.11, "Fraud Full Recourse Programme".

7.2.2      Additional Requirements for Bill Payment Providers

 

a.Bill Payment Providers must comply with the following:

i.Do not aggregate Transactions. Each Transaction must be individually Authorised and Submitted.

ii.Do not make payments to individuals. Only pay End Beneficiaries who are registered businesses, with the exception of rental payments.

iii.Disclose to the Cardmember that you are facilitating a payment, the Transaction involves paying the End Beneficiary, and that you are not the seller of the goods and services.

iv.If accepting the Card to facilitate payments on behalf of consumers, only pay End Beneficiaries that are in the industries listed in the Permitted Industries for Bill Payment Providers Facilitating Consumer Payments table. We may modify these permitted industries at any time at our sole discretion and (without waiving or limiting our other rights and remedies) we may exercise Chargebacks, suspend acceptance of Cards, and/or terminate the Agreement if you breach this requirement.

v.If accepting the Card to facilitate payments on behalf of businesses, in addition to prohibited and restricted industries set forth in Section 6.2, "Prohibited or Restricted Industries", you must not pay End Beneficiaries that are listed in the Excluded Industries for Bill Payment Providers Facilitating Business Payments table. We may modify these excluded industries at any time at our sole discretion. If you accept the Card to facilitate payments to End Beneficiaries in an excluded industry, we may exercise Chargebacks, suspend acceptance of Cards by you, and/or terminate the Agreement.

vi.Facilitate payments only to End Beneficiaries that are located in the same country as you. Cross border payments are not permitted except for EEA Indirect Acceptors, which may make payments to End Beneficiaries that are located in other EEA countries.

Permitted Industries for Bill Payment Providers Facilitating Consumer Payments

MCC

Description

4814

Telecommunications Services, including Local and Long Distance Calls, Credit Card Calls, Calls Through Use of Magnetic-Stripe-Reading Telephones, and Fax Services

4899

Cable and Other Pay Television Services

4900

Utilities – Electric, Gas, Water, and Sanitary

6300

Insurance Sales, Underwriting, and Premiums

6513

Real Estate Agents and Managers – Rentals

7523

Parking Lots and Garages

7911

Dance Halls, Studios, and Schools

7997

Membership Clubs (Sports, Recreation, Athletic), Country Clubs, and Private Golf Courses

8011

Doctors and Physicians – Not Elsewhere Classified

8062

Hospitals

8099

Medical Services and Health Practitioners – Not Elsewhere Classified

8211

Elementary and Secondary Schools

8220

Colleges, Universities, Professional Schools, and Junior Colleges

8241

Correspondence Schools

8244

Business and Secretarial Schools

8249

Trade and Vocational Schools

8299

Schools and Educational Services – Not Elsewhere Classified

8351

Child Care Services

9211

Court Costs, including Alimony and Child Support

9222

Fines

9311

Tax Payments

9399

Government Services – Not Elsewhere Classified

Note: MCC 9311 (Tax Payments) is not allowed for Australia.

 

Excluded Industries for Bill Payment Providers Facilitating Business Payments

MCC

Description

3000-3302, 4511

Airline/Charter/Air Carrier

3351-3441, 7512

Car Rental Agencies

3501-3999, 7011

Lodging (Hotels, Motels, Resorts, Central Reservations)

4411

Cruise Lines (including onboard shops)

7.2.3      Additional Requirements for Instalment Payment Transactions

a.Instalment Payment Transactions must comply with the following:

i.Do not charge the Cardmember interest or finance charges, other than late payment fees.

ii.Disclose all material terms of the instalment agreement to the Cardmember including, but not limited to, the amount and frequency of the Instalment Payment Transactions, and any late payment fees.

iii.Provide Transaction details to Cardmembers via mobile application or website about each instalment Transaction, including:

a.Description of each individual purchase, including the name of the End Beneficiary

b.Date and amount of each individual purchase

c.Date and amount of each instalment charge for that individual purchase

d.Number of instalments paid by the Cardmember and number of instalments remaining in the series (e.g., "1 of 4")

iv.In addition to prohibited and restricted industries set forth in Section 6.2, "Prohibited or Restricted Industries", do not accept the Card to facilitate payments for End Beneficiaries in industries listed in the Excluded Industries for Instalment Payment Transactions table. We may modify these excluded industries at any time at our sole discretion and (without waiving or limiting our other rights and remedies) we may exercise Chargebacks, suspend acceptance of Cards and/or terminate the Agreement if you breach this requirement.

v.You must have a direct contract with the End Beneficiary except in the limited circumstance where a third-party acts as your agent to facilitate payments to your End Beneficiaries in which circumstance the following requirements apply.

a.You must have a direct contract with your third-party agent.

b.You or the third-party agent acting on your behalf must provide End Beneficiary data elements in accordance the Technical Specifications. You remain responsible and otherwise liable for your third-party agent's compliance with this requirement and any omission or failure to perform does not relieve you of your obligations to comply with the requirements in this section.

c.Notwithstanding the foregoing we reserve the right to revoke this exception at any time at our sole discretion.

vi.Submit an Authorisation request for each individual Instalment Payment Transaction at the time the instalment is due, for the amount of the instalment, not the full purchase amount.

vii.If there is a Chargeback or Disputed Charge in connection to an Instalment Payment Transaction you must not submit an Authorisation request nor submit any further related Instalment Payment Transactions for payment until the Chargeback or Disputed Charge is resolved in your favour.

viii.Facilitate payments only to End Beneficiaries that are located in the same country as you. Cross border payments are not permitted except for EEA Indirect Acceptors, which may make payments to End Beneficiaries that are located in other EEA countries.

Note: Instalment Payment Transactions are not Recurring Billing Transactions or Delayed Delivery Charges.

Excluded Industries for Instalment Payment Transactions

MCC

Description

3000-3302, 4511

Airline and Air Carriers

3501-3999, 7011

Lodging Hotels, Motels, and Resorts

3351-3441, 7512

Car Rental Agencies

4411

Cruise Lines (including onboard shops)

8099

Medical Services and Health Practitioners – Not Elsewhere Classified

7280, 8062

Hospitals and Private Hospitals

5976

Orthopedic Goods and Prosthetic Devices

8050

Nursing and Personal Care Facilities

4119

Ambulance Services

0742

Veterinary Services

8071

Medical Dental Laboratories

5122

Drugs, Drug Proprietaries, and Druggists' Sundries

4722

Travel Agencies and Tour Operators

7997

Lifetime Memberships

5968

Long-term Subscriptions

4814

Telecommunications Services

4900

Utilities

6513

Real Estate Agents and Managers – Rentals

5813

Nightclubs

6300, 6381, 6399

Insurance

6010, 6011

Cash-like transactions

6538

P2P Payments

9222

Fines

9311

Tax Payments

7.2.4      Additional Requirements for Marketplaces

a.Marketplaces must comply with the following:

i.Have a legally enforceable agreement with the End Beneficiary binding the End Beneficiary to the Marketplace’s terms of service for participating in the Marketplace platform

ii.Display your name or brand more prominently than the End Beneficiaries on your website or mobile application

iii.Provide Transaction details to Cardmembers for each purchase, including:

a.A description of each individual purchase, including the name of the End Beneficiary

b.Date and amount of each individual purchase

iv.In addition to prohibited and restricted industries set forth in Section 6.2, "Prohibited or Restricted Industries", do not accept the Card to facilitate payments for End Beneficiaries in industries listed in the Excluded Industries for Marketplace Payments table. We may modify these excluded industries at any time at our sole discretion and (without waiving or limiting our other rights and remedies) we may exercise Chargebacks, suspend acceptance of Cards and/or terminate the Agreement if you breach this requirement.

Excluded Industries for Marketplace Payments

MCC

Description

3000-3302, 4511

Airline/Charter/Air Carrier

3351-3441, 7512

Car Rental Agencies

3501-3999, 7011

Lodging (Hotels, Motels, Resorts, Central Reservations)

4411

Cruise Lines (including onboard shops)

 

7.2.5      Additional Requirements for Staged Back-to-Back Transactions

a.Staged Back-to-Back Transactions must comply with the following:

i.In addition to prohibited and restricted industries set forth in Section 6.2, "Prohibited or Restricted Industries", do not accept the Card to facilitate payments for End Beneficiaries in industries listed in the Excluded Industries for Staged Back-to-Back Transactions table. We may modify these excluded industries at any time at our sole discretion and (without waiving or limiting our other rights and remedies) we may exercise Chargebacks, suspend acceptance of Cards, and/or terminate the Agreement if you breach this requirement.

Excluded Industries for Staged Back-to-Back Transactions

MCC

Description

3000-3300, 4511

Airline/Charter/Air Carrier

3351-3441, 7512

Car Rental Agencies

3501-3999, 7011

Lodging (Hotels, Motels, Resorts, Central Reservations)

4411

Cruise Lines (including onboard shops)