IMR-Future-Changes

Notification of Future Changes

Important updates are described in and after the following table.

Effective Date	Current Language			New Language
October 2022	2.8.1 (b) American Express SafeKey Fraud Liability Shift			2.8.1 (b) American Express SafeKey Fraud Liability Shift
	b.To qualify for the SafeKey Fraud Liability Shift, in addition to the requirements in paragraph 2.8 (d) above, you must comply with the additional requirements below: i.The SafeKey Charge was SafeKey Authenticated and received Electronic Commerce Indicator (ECI) 5, or SafeKey Attempted and received an ECI 6; ii.Maintain a Fraud to Sales Ratio within the parameters contained in the relevant SafeKey Implementation Guide, which may be updated from time to time and is available at www.americanexpress.com/merchantspecs. If at any time you exceed the Fraud to Sales Ratio you must work with us to reduce the number of Disputed Charges at your Establishment; iii.If your Establishment is located outside of Japan, the SafeKey Electronic Commerce Indicator was provided in both the Authorisation request and the Charge submission; and iv.For Establishments located within Japan, the SafeKey Electronic Commerce Indicator was provided in the Authorisation request.			b.To qualify for the SafeKey Fraud Liability Shift, in addition to the requirements in paragraph 2.8 (d) above, you must comply with the additional requirements below: i.The SafeKey Charge was SafeKey Authenticated and received Electronic Commerce Indicator (ECI) 5, or SafeKey Attempted and received an ECI 6; ii.Do not exceed a fraud ratio of 0.9% and fraud Charges of USD $25,000, or local currency equivalent, calculated monthly, based on all Charges as determined by American Express. Maintain a Fraud to Sales Ratio within the parameters contained in the relevant SafeKey Implementation Guide, which may be updated from time to time and is available at www.americanexpress.com/merchantspecs. If at any time you exceed the Fraud to Sales Ratio you must work with us to reduce the number of Disputed Charges at your Establishment; iii.If your Establishment is located outside of Japan, the SafeKey Electronic Commerce Indicator was provided in both the Authorisation request and the Charge submission; and iv.For Establishments located within Japan, the SafeKey Electronic Commerce Indicator was provided in the Authorisation request.
October 2022	N/A			Indirect Acceptors – See below
October 2022	Chapter 7, "Country Specific Policies"			Chapter 7, "Country Specific Policies"
	Country	POS Capability	EMV FLS	Country	POS Capability	EMV FLS
	Taiwan (Province of China)	Non-Chip Country	N/A	Taiwan (Province of China)	Chip Only Country	Counterfeit
	Thailand	Non-Chip Country	N/A	Thailand	Chip Only Country	Counterfeit

Indirect Acceptors

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",

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 different business models including, but not limited to, the following:

i.Bill Payment Provider

ii.Instalment Payment Provider (also known as Buy Now Pay Later)

iii.Staged Digital Wallet

iv.Top Up Wallet or Stored Value Digital Facility (SVDF)

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 that:

i.do not fall within any of the prohibited categories or restrictions set forth in Section 6.2, "Prohibited or Restricted Industries".

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.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".

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

iv.Obtain and maintain all required licenses and approvals necessary to conduct business, including SVDF requirements to hold funds in reserve.

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

vi.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.

vii.Comply with the following, except for any SVDF 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.

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

ix.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.

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

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

a.Bill Payment Providers must use the appropriate MCC for each End Beneficiary representing their business.

b.SVDF must use MCC 6540 (Stored Value/Gift Card Purchase/Load).

c.Instalment Payment Providers must use MCC 5999 (Miscellaneous and Specialty Retail).

xii.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/Disputes 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 Table

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

Excluded Industries for Bill Payment Providers Facilitating Business Payments Table

MCC	Description
4511	Airline/Charter/Air Carrier
7512	Car Rental Agencies
7011	Lodging (Hotels, Motels, Resorts, Central Reservations)
4411	Cruise Lines (including onboard shops)

7.2.3 Additional Requirements for Instalment Payment Providers

a.Instalment Payment Providers 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, 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 Providers 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 consistent with Sponsored Merchant Data required under 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 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 Transaction you must not submit an Authorisation request nor submit any further related instalment 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: Instalments charged by Instalment Payment Providers are not Recurring Billing Transactions.

Excluded Industries for Instalment Payment Providers Table

MCC	Description
4511	Airline and Air Carriers
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

5.6 Chargeback Reasons

Goods/services not received or only partially received (ISO 4554 / C08)
Description	The Cardmember claims to have not received (or only partially received) the goods/services.
Information provided with the Chargeback	Charge Data, and Written description of the goods/services the Cardmember purchased, or Documentation showing return, or attempt to return, the partially received goods (e.g., pickup/delivery confirmation)
Support required to request a Chargeback Reversal	Proof that the goods or services were received in their entirety by the Cardmember or the Cardmember's authorised representative, or Proof that the goods or services were delivered to the address specified by the Cardmember, or Completion of work order approved in writing by the Cardmember showing the Cardmember received the services and dates that the services were used/provided, or Proof refuting Cardmember's claim that services were cancelled or that the goods were returned to the Merchant, or Proof that a Credit which directly offsets the Disputed Charge has already been processed, or For Instalment Payment Provider Transactions and Bill Payment Provider Transactions, provide a copy of your terms and conditions agreed to by the Cardmember and details explaining how the Cardmember did not comply with the terms and conditions, or Compelling Evidence as defined in Subsection 5.7.1, " Compelling Evidence for goods/services not received or only partially received (ISO 4554/C08)".

Goods/services not as described (ISO 4553 / C31)
Description	The Cardmember claims to have received goods/services that are different than the written description provided at the time of the Charge.
Information provided with the Chargeback	Charge Data, and A description of the Cardmember's claim that the goods/services received differ from your written description provided at the time of Charge, and In the case of goods: written description of the Cardmember's attempt to return the goods
Support required to request a Chargeback Reversal	Proof refuting the Cardmember's claim that the written description differs from the goods/services received, or Proof that the Cardmember agreed to accept the goods/services as provided, or Proof that a Credit which directly offsets the Disputed Charge has already been processed, or Proof that goods and services matched what was described at time of purchase (e.g., photographs, e-mails), or For Instalment Payment Provider Transactions and Bill Payment Provider Transactions, provide a copy of your terms and conditions agreed to by the Cardmember and details explaining how the Cardmember did not comply with the terms and conditions. For goods or services purchased by the Cardmember that were received in a damaged or defective state, the Merchant must provide one (1) or more of the following items: Show that an attempt was made by the Merchant to repair or replace damaged or defective goods or to provide replacement services If returned, state how the Cardmember did not comply with the Merchant's clearly documented cancellation, return policy or applicable law and regulations Show that the Cardmember agreed to accept the goods or services "as is"

Goods/services damaged or defective (ISO 4553 / C32)
Description	The Cardmember claims to have received damaged or defective goods/services.
Information provided with the Chargeback	Charge Data, and Description of the damage or defective goods/services, date of receipt of the goods/services, extent of the damage to the goods or how the service was defective, and Details of how you were notified or how the Cardmember attempted to notify you of the issue, and If returned: Details of how the Cardmember returned, or attempted to return, the goods to you
Support required to request a Chargeback Reversal	Proof refuting the Cardmember's claim that the goods/services were damaged or defective (provided that, in the case of goods, they were not returned to you), or Proof that an attempt was made to repair or replace damaged or defective goods or to provide replacement services, or Proof that the Cardmember did not comply with your clearly documented cancellation and return policies or Applicable Law (provided that, in the case of goods, they were returned to you), or Proof that the Cardmember agreed to accept the goods as delivered, or Proof that the goods/services were not returned to you, or Proof that a Credit which directly offsets the Disputed Charge has already been processed, or For Instalment Payment Provider Transactions and Bill Payment Provider Transactions, provide a copy of your terms and conditions agreed to by the Cardmember and details explaining how the Cardmember did not comply with the terms and conditions.

Glossary

Bill Payment Provider

A Merchant that is engaged by Cardmembers to pay a bill on their behalf. Bill Pay Providers (BPPs) charge the Cardmembers' Account and pay eligible End Beneficiaries identified on the bill using another method, such as bank transfer, check/cheque, or wire.

End Beneficiary

A third-party entity that receives payments from an Indirect Acceptor. The End Beneficiary does not receive Card information from the Indirect Acceptor. An End Beneficiary may also separately be a Merchant that directly accepts the Card.

Indirect Acceptor

A payment intermediary that contracts with American Express to facilitate payments to multiple, eligible third-party End Beneficiaries. The Indirect Acceptor accepts the Card, but does not send Card information to the End Beneficiary and pays eligible End Beneficiaries using another method, such as bank transfer, check/cheque, or wire.

Instalment Payment Provider

A Merchant offering Cardmembers the ability to pay for purchases made at an End Beneficiary in instalments over a fixed period.

Payment Aggregator

An entity whose business model provides that it accepts the Card on behalf of third parties (Sponsored Merchants). Formerly referred to as "Payment Service Provider" or "PSP" and sometimes called an "aggregator" or "master merchant" in our materials.

Staged Digital Wallet

A Merchant with a payment platform that allows Cardmembers to use a Card to fund a purchase in real time to an End Beneficiary for purchases.

Stored Value Digital Facility (SVDF)

A Merchant offered feature that allows funds to be loaded into a digital wallet for subsequent payments. This includes purchases of Goods and Services at single or multiple payment acceptors.