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System Changes Update August 2007 – Important information


Following the system upgrade that took place on the 1st of August, we have received further communication from the acquiring banks who have clarified their rules regarding the processing of transactions. Please read the information below for a summary of the rules that apply to your merchant bank. Please note that for more detail or further information, it is advisable to speak directly to your merchant bank.



Maestro Transactions and 3D Secure


You may have recently received a letter from your merchant bank outlining the changes taking place to Switch and Maestro transactions, requesting that you activate MasterCard SecureCode (also known as 3D Secure) if you wish to continue to accept Maestro transactions.


All the banks we work with have slightly different rules regarding the processing of Maestro transactions. Our understanding of their rules is described below. Please contact your bank for further information.


NatWest Streamline: You must have 3D Secure active on your account to accept Maestro transactions, unless you have completed an exemption form with Streamline. If you would like to apply for an exemption, please go to: http://www.streamline.com/maestro/. Please contact Streamline for further details.


Barclays Merchant Services: You can continue to process Maestro transactions without 3D Secure for the time being. Their advice is to set up 3D Secure as soon as you are able to. You may be contacted by BMS and asked to activate 3D Secure on your account.


HSBC: You can continue to process Maestro transactions without 3D Secure for the time being. Their advice is to set up 3D Secure as soon as you are able to. You may be contacted by HSBC and asked to activate 3D Secure on your account.


Bank of Scotland: You can continue to process Maestro transactions without 3D Secure for the time being. Their advice is to set up 3D Secure as soon as you are able to. You may be contacted by BMS and asked to activate 3D Secure on your account.


Lloyds TSB Cardnet: You can continue to process Maestro transactions without 3D Secure for the time being. Their advice is to set up 3D Secure as soon as you are able to. You may be contacted by Lloyds TSB Cardnet and asked to activate 3D Secure on your account.


Protx strongly advise that you set up MasterCard SecureCode (3D Secure) on your Protx account. Click here for information on how to activate 3D Secure on your Protx account.


Read more about the benefits of 3D Secure




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Mail Order and Telephone Order (MOTO) Transactions


All the banks we work with have slightly different rules regarding the processing of Mail Order Telephone Order (MOTO) transactions. Our understanding of their rules is described below. Please contact your bank for further information.


NatWest Streamline: Streamline merchants can continue to process MOTO transactions on their e-commerce merchant number for the time being. VSP Terminal has been enabled on all Protx accounts to allow you to process MOTO payments. In due course, Streamline will be in touch with you to discuss setting up an additional MOTO merchant account.


Barclays Merchant Services: Barclays do not require merchants to have an additional merchant number to process MOTO transactions as the new Protx system is able to ‘flag’ the transactions differently at a transaction level. VSP Terminal has been enabled on all Protx accounts to allow you to process MOTO payments.


HSBC: HSBC do not require merchants to have an additional merchant number to process MOTO transactions as the new Protx system is able to ‘flag’ the transactions differently at a transaction level. VSP Terminal has been enabled on all Protx accounts to allow you to process MOTO payments.


Bank of Scotland: Bank of Scotland merchants can continue to process MOTO transactions on their e-commerce merchant number for the time being. VSP Terminal has been enabled on all Protx accounts to allow you to process MOTO payments. In due course, Bank of Scotland will be in touch with you to discuss setting up an additional MOTO merchant account.


Lloyds TSB Cardnet: Lloyds TSB Cardnet merchants can continue to process MOTO transactions on their e-commerce merchant number for the time being. VSP Terminal has been enabled on all Protx accounts to allow you to process MOTO payments. Lloyds TSB Cardnet request that all merchants who have not yet contacted Cardnet to set up a separate MOTO merchant account do so as soon as possible by calling 01268 567100.


Euroconex: Euroconex merchants are not permitted to process MOTO transactions on an e-commerce merchant number and this facility has been disabled. Please contact Euroconex to set up a separate merchant number if you would like to accept MOTO payments.




For further information on the changes to your Protx account please click on the relevant link below:



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3D Secure and accepting Maestro transactions


As you should now be aware, there are a number of changes that have taken place regarding Verified by Visa and MasterCard SecureCode (collectively known as 3D Secure). Switch has also now become UK Maestro, and you are no longer able to display the Switch logo on your website.


What is 3D Secure?



3D Secure uses a more secure method for authenticating the cardholder at the time of the transaction. The scheme is set up as an online equivalent to Chip and PIN, where the customer is required to enter a password at their card issuer’s site, before the transaction process can be completed.



What are the benefits of 3D Secure?




How will 3D Secure affect my customers?



In a 3D Secure transaction, your customer must register for Verified by Visa (VbV) or MasterCard SecureCode (MSC) with their issuing bank if they have not already done so. When they place their order, they will be asked to register their card before continuing with the transaction. The transaction process is as follows:

  1. The customer will complete their order and add products to their shopping cart as usual.
  2. At the checkout stage, if the customer selects to pay by Visa, Visa Delta and Visa Debit, Maestro or MasterCard, they will be redirected to their issuing bank where they will need to enter their password.
  3. The bank will verify the password and the transaction will continue as normal.

Once the customer has been verified, you will not be liable for a chargeback if the customer later denies the transaction.



What do I need to do?



It is essential that the Switch logo has been removed from your website. If you have not already done so, please remove this logo.


The Switch logo should be removed wherever it appears on your website, including the shopping cart, customer receipt and payment pages. If you are using VSP Form or VSP Server, we have already removed the Switch logo from your payment pages for you. If you are using VSP Direct (where the payment pages are held on your own website) then you will need to make sure that you remove the Switch logo yourself.


If your merchant account is with Barclays Merchant Services, please contact Barclays directly and ask them to set up 3D Secure on your account.


If your merchant account is with Lloyds TSB Cardnet, Bank of Scotland or NatWest Streamline, we may have already set up 3D Secure on your account for you. All you will need to do is enable this feature on your Protx account by following these simple instructions:



You can choose to enable this facility in VSP Admin whenever you wish, and can also deactivate it if you wish to do so.


For VSP Direct users, there will be some additional development work required. This is because the customer never leaves your site, so Protx is unable to redirect them to their issuing bank to complete the 3D Authentication. Full details of this can be found in the VSP Direct protocol: http://www.protx.com/downloads/docs/VSPDirectProtocolandIntegrationGuideline.pdf


To make full use of 3D Secure, your website must be sending messages to Protx using our latest VSP Protocols (version 2.22).


If you are not using the latest VSP protocols in your integrations with Protx, you will need to do so as soon as possible. Please visit our support website to download the latest protocols and integration documents: http://techsupport.protx.com/downloads.asp


If you are using a shopping cart that does not support protocol 2.22 you can still process a 3D Secure transaction if you have this facility switched on. However, the 3D Secure results will not be displayed back in your cart.


Your Test Server and VSP Simulator accounts will still be available to you to work with during your testing. Contact the technical support team at support@protx.com if you need any help with the upgrade.



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Delayed payments and replacements for Pre-Auth


Protx is no longer able to offer Pre-Auth to new or existing merchants due to changing bank and card scheme requirements. If you currently use the Pre-Auth payment method, you will no longer be able to do so after 1st September 2007.


There are two alternative payment types available to merchants to replace Pre-Auth: Deferred Payment or Authenticate and Authorise. Both of these systems allow you to accept an order, but not take payment until you are ready to ship the goods. Both of these systems provide significant benefits over the old system. These payment options are explained in more detail below.


As a rule, if you know the exact value of the transaction at the time of order placement and you are able to settle that payment within 6 days of placing the order, Deferred Payment is the best system for you to use.


If you wish to delay the payment for longer than 6 days or if you do not know the exact price at the time the order is placed, Authenticate and Authorise is the best option for you.



What do I need to do?



If you currently use Pre-Auth, you can continue to do so until the end of August. However, you will need to switch to either Deferred Payment or Authenticate and Authorise by 1st September 2007.


To add Deferred Payment to your account, please email support@protx.com including your vendor name. You will need to make sure that you are following the Protocol guidelines correctly so that you submit the right transaction type to us.


If you wish to switch to the new Authenticate and Authorise payment method, the Authenticate and Authorise/Cancel descriptions and protocols are now available for download on the technical support website. These protocols can be tested against the VSP Simulator and on the Test Server. Please download these documents before August so that all development work can be completed.



How does Deferred Payment work?



The Deferred payment method should be used by merchants who are able to fulfil their customer orders within 6 days of the order being placed.


Deferred transactions gain an authorisation against the customer’s card at the moment the order is placed. A shadow is placed on the customer’s card, but the funds are not transferred into the merchant’s account until the merchant performs a Release of that transaction (either through VSP Admin, or by sending a Release request from your web server). The Release can only be for the full amount of the initial Deferred transaction.


Deferred transactions can be fully 3D Secured, and because the authorisation is gained during purchase, the CV2 value will have been validated at the time the order is placed. This ensures that you are protected against chargebacks from fraudulent card use.



How does Authenticate and Authorise work?



An Authenticate and Authorise transaction works differently depending on whether the transaction is 3D Secure authenticated or not.


If 3D Secure is available for the transaction, when a customer goes to the payment pages to enter their card details, they will be re-directed to their issuing bank to enter their password so that the transaction can be authenticated under the 3D Secure scheme. This is the 'Authenticate' part of the transaction. At this point no funds have been taken from your customer’s card. Protx will store the transaction details securely on our system.


Next, when you are ready to ship the goods, you can send the transaction for authorisation through VSP Admin (or from your web server). This is the 'Authorise' part of the transaction. This authorisation will be fully 3D Secured using the information obtained during the Authenticate stage.


Overnight, Protx will send the transaction for settlement.


If 3D Secure is not available for the transaction, when a customer goes to your payment pages to enter their card details, Protx will store the transaction details securely on our system. In this case, we will send you a response called ‘Register’ so that you know the customer’s details are registered with Protx. At this point no funds have been taken from your customer’s card.


Next, once you are ready to ship the goods, you can send the transaction for authorisation through VSP Admin (or from your web server). This is the 'Authorise' part of the transaction. Whilst “Registered” transactions are not fully 3D Secured, so long as 3D Secure is active on your account, these transactions will be marked with a flag to indicate the Authentication was attempted, and the liability shift should still occur.


Overnight, Protx will send the transaction for settlement.


Because Authenticate and Authorise works differently depending on whether a transaction is part of the 3D Secure scheme or not it can still be used to process MOTO transactions where 3D Secure is not available, or to process other card types such as American Express, Diners, JCB or Solo.



Benefits of Authenticate and Authorise:





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Changes to Custom Templates


Protx have also made changes to the custom templates that are currently in use on VSP Form and VSP Server payment pages (where your customer is taken to the Protx payment pages to enter their card details).


If you wish to have custom templates on your Protx account, you will now need to redesign them in our new format.


The new customisations still need to be validated by the Protx support team and uploaded by Protx, but the design will be made simpler because the new screens are generated using XML/XSLT and CSS files only. Protx has provided example XML, XSLT and CSS files for you to work with to generate your own custom templates on our technical support website.



How has the payment screen presentation process been improved?




Because the new system is not compatible with the old WC@ templates, we are not able to import any of your old templates from before the new system launch. If you wish to use custom templates you will need to redesign them now that the new system is live. Please visit our technical support website to receive the new custom templates kit.



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Repeat Payments and Recurring Billing


There are two different ways of making another payment on the same card:


Repeat payments apply to merchants who occasionally repeat transactions, for example when a customer places another order, or decides to extend an existing order.


You do not need to make any changes to your Protx account if you already use this method of Repeat payments.


If you would like to add Repeat payments to your Protx account, please email support@protx.com including your vendor name.


Recurring billing applies to merchants who process recurring, regular or subscription payments. If you wish to set up recurring billing with Protx, you will need to set up a Continuous Authority merchant number from Lloyds TSB Cardnet, Bank of Scotland or Barclays Merchant Services.


Recurring billing can be added to your existing Protx account and is available through all of our VSP Systems.


If you wish to add recurring billing to your account, please e-mail your continuous authority merchant number to support@protx.com



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Frequently Asked Questions (FAQs)



Accepting Maestro after June 2007:



What is 3D Secure?


3D Secure is the technology behind Verified by Visa (VbV) and MasterCard SecureCode (MSC), the latest fraud prevention initiatives launched by the card schemes as a more secure method for authenticating the cardholder at the time of the transaction. The scheme is set up as an online alternative to Chip and PIN, where the customer is required to enter a unique password chosen by the shopper before the transaction process can be completed.


Which cards does the scheme apply to?


If you have 3D Secure enabled on your account, this will affect the transaction process for all customers that are paying with any Visa, Visa Delta, Visa Electron, MasterCard, Maestro or UK Maestro cards. The scheme does not apply to American Express, Diners and JCB Cards.


Why should I enable 3D Secure on my account?


The card schemes have set a rule that makes it mandatory for 3D Secure to be applied to all International Maestro cards. Protx recommends that all vendors register for the scheme as there are clear benefits to both vendors and their customers once registered.


How does 3D Secure affect American Express, Diners Club and JCB merchants?


Currently, American Express, Diners and JCB cards are not covered by the scheme, and therefore any transactions processed through these cards cannot be 3D Secure authenticated.


How much does it cost?


There is no cost involved for Protx vendors whose acquiring bank is Bank of Scotland, Euroconex, HSBC, Lloyds TSB Cardnet or NatWest Streamline. Please note that merchants using Barclaycard Merchant Services may be issued with a set up fee from Barclays. For further details, please refer to your acquiring bank or the support website.


How do I set it up?


Protx have already done most of the work for you with our Express Set Up. This means that the benefits are just a few clicks away. All you need to do is switch 3D Secure on in your VSP Admin area. If you are using VSP Direct, we advise you to visit our support website or contact your web developer, as some further integration work is required.


Will my web developer have to redevelop my website?


For VSP Direct users, there will be some additional development work required. This is because the customer never leaves your site, so Protx is unable to redirect them to their issuing bank to complete the 3D Authentication. Full details of this can be found in the VSP Direct protocol: http://www.protx.com/downloads/docs/VSPDirectProtocolandIntegrationGuideline.pdf and on our support website: http://techsupport.protx.com/threedsecure.asp



Features and Benefits of 3D Secure:



How does the scheme benefit me as an online trader?


3D Secure gives you enhanced fraud protection resulting in a lower fraud rate, as well as a liability shift in the case of charge backs. In addition, by reducing the risks associated with online trading, you may be able to re-negotiate the rates offered to you by your bank. 3D Secure transactions have a very low fraud rate as the cardholder is required to register and authenticate themselves.


How will this affect trading on my website?


Visa and MasterCard have collected numerous statistics to show that there is actually no increased loss in sales as a result of the additional screens. On the contrary, your customer may feel that their transaction is more secure, and the average value of orders placed on 3D Secure sites is considerably higher than those on non-secured sites.


Will I be able to see the 3D Secure results in VSP Admin?


The 3D Secure results will be displayed in VSP Admin alongside the rest of your transaction information. You can also apply a rule base to your account to control the 3D Secure transactions you wish to accept. Please visit our technical support website for further information: http://techsupport.protx.com/threedsecure.asp#threedsrulebase


What if a customer does not want to use 3D Secure?


The customer may opt not to register for 3D Secure even when prompted by their card issuer. You can apply a rule base to your account that either accepts or rejects a transaction on this basis. Please note, if you accept a transaction that has not been 3D Secure authenticated, the liability for chargebacks will still rest with you. The banks are liable for chargebacks only on those transactions which have been 3D Secure authenticated, or where an attempt at 3D Secure authentication has occurred (where the merchant is 3D Secure but the card issuer is not, or if the card issuer is unable to provide validation facilities for the customer).


What happens if I do not set up 3D Secure?


From June 2007 onwards, you will not be able to accept International Maestro cards unless you have 3D Secure enabled on your account. You will not be able to accept domestic Maestro cards either unless a 3D Secure authentication has been attempted. Signing up now will mean that not only are you ahead of the game you will also be reaping the benefits of increased protection from fraud.


What are rule bases and how do I set them up?


Rule bases allow you to tailor the way you respond to fraud screening and accept transactions by automating the selection process. Our technical support page has further details on rule bases and how to apply them through VSP Admin: http://techsupport.protx.com/threedsecure.asp#threedsrulebase


What am I covered for?


If 3D Secure has been activated on your Protx account, you will not be liable for chargebacks on fraudulent card use for any transaction that has been authenticated by 3D Secure, or any transaction where 3D Secure authentication has been attempted i.e. the merchant is 3D Secure but the card issuer is not, or if the card issuer is unable to provide validation facilities for the customer. In these circumstances the banks will be liable. However, this does not apply to disputes over order delivery, and we advise that you still follow good practice in ensuring that the goods are delivered on time and in good condition. Please follow this link for further information: http://www.protx.com/information/fraud_toptips_further.asp


Will I still use the other fraud screening features available in VSP Admin?


Yes, these details will still be visible in VSP Admin, and we recommend that you rely on these results as before especially for transactions where the card issuer is not part of the scheme or the cardholder has not registered.



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Changes to Mail Order/Telephone Order Payments:



What is a MOTO merchant number?


A MOTO merchant number is a merchant number set up specifically for Mail Order/Telephone Order payments. If you wish to take payments using the VSP Virtual Terminal, you must talk to your acquiring bank to see if they require you to set up a MOTO merchant number in order to do so.


What is the VSP Terminal?


VSP Terminal is a virtual terminal located in your VSP Admin area. It is recommended to merchants who wish to accept orders via the telephone, fax or mail order and do not have their own call centre software.



Changes to Continuous Authority Accounts



What are the changes being made to my Protx account?


As of 1st August 2007, Protx merchants with a CA (Continuous Authority) merchant number will be able to add this merchant number to their existing Protx ecommerce account. This means that merchants who wish to take recurring or subscription payments will be able to do so through one Protx account and will not need to store the card details if they do not wish to do so.


What is a CA merchant number?


A CA merchant number is a Continuous Authority merchant number set up for recurring payments. If you wish to take recurring or subscription payments through your Protx account, you will need a CA merchant number in order to do so. This must be set up with Lloyds TSB Cardnet, Barclays Merchant Services or Bank of Scotland. If you only occasionally repeat transactions then you can continue to use the Repeat payment facility as normal. You will not need any additional merchant numbers to process this type of transaction and you will not need to make any changes to your Protx account.


I only make the odd repeat payment through VSP Admin. Do I need to make any changes to my account?


No, if you are only processing one-off repeat payments you will still be able to use the Repeat function within VSP Admin for the foreseeable future.


Do I need to store the card details if I wish to make repeat payments?


From August 2007, Continuous Authority merchant numbers can be added to your existing Protx account, so that you can have one Protx account for all types of transaction. This means that you do not need to store the card details yourself if you wish to make recurring or repeat payments because the transaction information is held by Protx.



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Authenticate and Authorise:



What is Authenticate and Authorise?


Authenticate and Authorise is a new payment method that will replace the Pre-Auth payment method from September 2007. It is suitable for merchants who are unable to fulfil orders within 6 days, who do not have terms and conditions in place with their customers to allow payment to be taken ahead of order fulfilment, or who do not know the exact price that they need to charge their customer at the time the order is placed.


Who can use Authenticate and Authorise?


The Authenticate and Authorise payment system is available to all merchants from September 2007 and works differently depending on whether the transaction is 3D Secure authenticated or not. This means that it can also be used to delay settlement on cards which cannot be 3D Secured i.e. American Express, Diners and JCB cards (in these cases the card details are registered and stored by Protx until authorisation is requested).


How does Authenticate and Authorise work?


The transaction type AUTHENTICATE is passed along with the full amount for the transaction. This is validated alongside the other parameters as normal. The customer is then redirected to the Protx payment screens to key in their card details (or to the merchant’s payment screen if using VSP Direct). Protx validates these details and checks them against the 3D Secure directories to ensure that the card used is part of the scheme. If the card is part of the scheme, the customer is redirected to their issuing bank to obtain a 3D Secure authentication (VSP Direct merchants will have to complete this stage themselves). Protx stores the authentication along with the full card details and the Authentication step is over. We DO NOT attempt to obtain an authorisation at this stage. The Authentication is valid for 90 days (or for up to 30 days with International Maestro cards), which is the amount of time you have to fulfil the order. When you are ready to ship the order, you then send an AUTHORISE request, either from your web servers, or through VSP Admin. If you are a VSP Terminal user, or if you process American Express, Diners or JCB cards, the transaction details cannot be authenticated but will be registered and stored by Protx until authorisation is requested.


Can I continue to use Pre-Auth?


No you cannot. From September 2007, the Pre-Auth payment method will no longer be available to existing Protx customers. You must use the Deferred payment method or the new Authenticate and Authorise payment method instead.


What is the Deferred payment method?


The Deferred payment method should be used by merchants who are able to fulfil their customer orders within 6 days of the order being placed. It is now a far more sensible payment option for the vast majority of online merchants. Deferred transactions gain an authorisation against the customer’s card at the moment the order is placed. A shadow is taken on the customer’s card, but the funds are not transferred into the merchant’s account until the merchant performs a Release of that transaction (either through VSP Admin, or by sending a Release request from your web server).


Do I need to be 3D Secure enabled to use Authenticate and Authorise?


An Authenticate and Authorise transaction works differently depending on whether the transaction is 3D Secure authenticated or not. If 3D Secure is not available for the transaction Protx will store the transaction details securely on our system. In this case, we will send you a response called ‘Register.’ You will then have 90 days in which to ‘Authorise’ the transaction (or 30 days in the case of International Maestro cards).


The new payment method is provided by Protx free of charge. You will only be charged for each authorised transaction that is sent for settlement in the normal way.


How long do I have to release payments using Authenticate and Authorise?


You have up to 90 days to authorise a pre-authenticated payment in your VSP Admin screens or through your web server, and up to 30 days to authorise payments made by International Maestro cards.


Do I have to authorise for the same transaction amount?


You can authorise a pre-authenticated transaction for any amount up to 115% of the value of the authentication, with no lower limit. However, if you are processing an International Maestro card payment, the authorisation can be no higher than the authenticated amount.



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Changes to custom templates:



Do I have to change my existing custom templates?


Yes, if you were using custom templates on our old payment system you will now need to redesign them in our new format.


How will the new process differ from the existing process?


From August 2007 Protx is offering a new and improved payment screen presentation process, allowing a simpler and more complete customisation process. Customisations still need to be validated by the Protx support team and uploaded by Protx, but the design will be made simpler because the new screens are generated using XML/XSLT and CSS files only. Example XML, XSLT and CSS files for you to work with to generate your own custom templates can be downloaded from the Protx support website.

 

 

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