Commonwealth Bank of Australia

EMV (Europay MasterCard Visa) is a global electronic transaction standard named after the three organisations that established it. The new EMV standard enables EFTPOS terminals worldwide to process chip-based debit and credit cards.

The Commonwealth Bank is currently planning the upgrade process for its EFTPOS terminals to meet the EMV standards. This upgrade will allow chip cards to be processed using the chip instead of the magnetic stripe.

For further information on EMV please see the Chip Cards and EMV section of the Security & Fraud Resources Centre

e-Notice [061103]:

Preparing for the Christmas - New Year Rush

Christmas is the busiest time for a lot of retail Businesses in Australia, so it is important that your card payment solutions are operating well. We suggest that you:

1. have enough stationary for your EFTPOS terminals and Paper facilities. To order Stationery please use the Stationery Guide available on the Merchant Information Centre.

2. outline any possible delays in delivery of goods ordered on your website, phone or mail order centre due to busy postal services or low amounts of stock (to minimise the risk of chargeback)

3. if closing during the holiday period ensure all EFTPOS terminals are secured or stored in a secure place.

4. be on the look out for fraudulent purchases, as criminals will try to take advantage of this busy period. Visit the Security & Fraud Resources Centre for more information about 'Reducing exposure to Fraud and Chargebacks'.

The Merchant Services Team at the Commonwealth Bank of Australia wishes you a very Merry and Prosperous Festive Season!

e-Notice [061102]:

New Payment Card Industry Data Security Standard

Please note that the PCI-DSS standard has been updated. To download the latest copy of the standard or to find out more about PCI-DSS please visit the Merchant Data Protection Program section of the Security & Fraud Resources Centre.

Note all merchants that need to demonstrate compliance to this standard have already been contacted by our representatives.

e-Notice [061101]:

Bankcard Closure Checklist

HOW IT EFFECTS YOUR BUSINESS AND WHAT YOU NEED TO DO

As you may have read in various communications so far (see e-Notice [060602]), the Bankcard card scheme will be closing on 31 December 2006. The following is a checklist of things you need to do at your business to prepare for this closure.

1. REMOVE ALL REFERENCES TO BANKCARD AT YOUR POINTS OF SALE

This includes websites, shop fronts, order forms, letters and advertising collateral

(look out for your new decals in the November 2006 Statement).

2. CONTACT AND OBTAIN ALTERNATIVE PAYMENT DETAILS FROM CLIENTS

PAYING BY DIRECT DEBIT WITH A BANKCARD.

This includes periodic subscriptions, memberships, instalments or accounts.

3. ZERO FLOOR LIMIT: ALL BANKCARD TRANSACTIONS MUST BE AUTHORISED.

See e-Notice [060701] for further detail.

Note authorisation is automatically obtained when a payment is accepted via an EFTPOS terminal.

If using a Manual Paper, VirtualPOS DirectClear or VirtualPOS BatClear facility you must call the KeyAuth service and obtain an Authorisation code for each transaction prior to accepting payment by any Bankcard.

4. STAFF TRAINING:

Ensure your staff are aware that they can no longer accept Bankcard for payment after 31 December 2006 and that they must obtain Authorisation for all Bankcard transactions now.

This includes staff at Retail Outlets, Cashiers, Call Centres, Finance and Accounts,

and Payment Processing Centres.

e-Notice [060701]:

Zero floor limit on all Bankcard transactions

As part of the preparation of the Bankcard scheme closure, Bankcard has suspended all merchant floor limits as from 1 August 2006. This means the floor limit applicable to all Bankcard transactions will be zero from that date.

The introduction of the zero floor limit is designed to eliminate the processing of recurring transactions without authorisation first being obtained and therefore the number of disputed transactions approaching Bankcard closure.

This Bankcard rule change follows the zero floor limit for card not present transactions introduced by MasterCard and Visa on the 8th April 2006 (see e-Notice 060303).

For further details you can visit Bankcard website.

e-Notice [060504]:

Changes to Merchant Agreement

Please note that, as part of a general update, the Merchant Agreement is being changed effective from 3 July 2006. From that date, the Merchant Agreement is amended as set out below. You should read this notice together with the Merchant Agreement so that you understand the agreement you have with us.

Obtaining authorisation on all transactions where the card is not present – a new clause 2.8 is added as follows: ‘for [these] card not present transactions, you must obtain authorisation on all occasions (the floor limit is zero dollars)’. The remaining clauses in section 2 are renumbered.

Transaction security ensuring no record is kept of a cardholder’s PIN – a new clause 4.1(g) is added as follows: ‘[To protect card information you must] not for any reason ask for or retain any record of a cardholder’s PIN (Personal

Identification Number).’

No illegal or prohibited transactions – a new definition of ‘prohibited transaction’ is added to Section 10 as follows: ‘Prohibited transaction means a transaction of a type we have told you must not be processed (eg, due to Visa or MasterCard rules), including sales involving:

• adult content

• MOTO sales of prescription pharmaceuticals and tobacco products

• gambling

• counterfeit goods.

Clause 5.1(a) is amended so that a transaction is invalid when it is illegal or prohibited. A new clause 6.5(g) is added as follows: ‘[You must compensate us for any loss or liability we incur because you or any of your employees process an illegal or prohibited transaction.’ Clause 8.2(b) is amended so that we can end the merchant agreement with or without notice to you if you process a transaction that is illegal or prohibited.

Commissions – a new clause 7.14 is added as follows: ‘We may pay a fee or commission to a third party who introduces you to us.’

Merchant Agreement (PDF Size 1 MB)

e-Notice [060503]:

Expiry date by-passing available for recurring transactions

You can now process Visa and MasterCard card details without a valid expiry date for your recurring transactions on CommWeb and VirtualPOS.

Recurring payments are regular payments permitted by the cardholder. These direct debit transactions commonly include payments such as memberships, subscriptions, premiums and standing order payments (time between payments can not exceed 12 months). They do not include payment by instalment arrangements.

We recommend you read the one page Quick Reference Technical Guide attached below, or contact the VirtualPOS Help Desk on 1300 132 054, or CommWeb Help Desk on 1800 882 888.

Quick Reference Technical Guide for VirtualPOS (PDF Size 73 KB)

e-Notice [060502]:

Australian issued Bankcards will soon become obsolete

As announced earlier this year, Bankcard cards will be withdrawn from use by 31 December 2006.

If you have clients that provide you direct debit payments with a Bankcard, you will need to contact these clients to obtain alternative card details or payment methods. Note that your VirtualPOS BatAuth service will continue to accept Visa, MasterCard and American Express cards.

For any further information please contact the Commonwealth Bank Merchant Enquiries Helpdesk on 1800 230 177 or go to the Bankcard site www.bankcard.com.au.

e-Notice [060501]:

VirtualPOS BatAuth now accepts American Express (AMEX)

Process American Express card details through your VirtualPOS BatAuth facility.

To assist you to arrange for this feature to be activated, please contact the Merchant Enquiries Help desk on 1800 230 177, between 9am and 5pm (local time) Monday to Friday with your CBA and AMEX merchant numbers ready.

If you do not have an AMEX merchant number, please call American Express on 1300 363 614 (option 4).

e-Notice [060303]:

Introduction of zero floor limit

Scheme regulations have been amended and will require all card not present (CNP)¹ transactions to have a zero floor limit.

This regulation will be introduced on 8 April 2006. A zero floor limit on a transaction means that the transaction must be authorised.

What does this mean?

If you use VirtualPOS BatClear or Paper: All transactions are not authorised.

You can use the Commonwealth Bank’s KeyAuth (PDF Size 33 KB) service to obtain Authorisation at a cost of $0.66 per transaction or you can consider using VirtualPOS BatAuth. VirtualPOS BatAuth will be made available on your existing VirtualPOS BatClear facility before the end of March, 2006. For instruction on how to use VirtualPOS BatAuth, please contact the VirtualPOS helpdesk on virtualpos@cba.com.au or call 1300 132 054.

If you use EFTPOS Plus, EFTPOS Lite, VirtualPOS BatAuth or CommWeb: All transactions are authorised.

If you submit all of your card payments via these services you will comply with these changes in regulations².

1: Card Not Present (CNP) transactions include orders received by mail, telephone, Internet and recurring orders.

2: If you use manual vouchers submitted at the branch for any of your CNP transactions these will not be Authorised. We recommend you submit these transactions via a VirtualPOS BatAuth facility or use the KeyAuth service to obtain Authorisation. You can call the KeyAuth service on 13 26 36 and the Merchant Enquiries Help Desk on 1800 230 177.

e-Notice [060302]:

New Zealand issued Bankcards are now obsolete

Please note that all Bankcards issued in New Zealand have become obsolete and can no longer be accepted for payment.

If your clients provide you with Bankcard details, you must ensure that the card is issued by an Australian bank (by asking your client). If the card is not issued by an Australian Bank or your client is unsure, you must seek an alternative means of payment from your client.

All attempts to use a New Zealand issued Bankcard on a VirtualPOS BatClear facility will result in a $27.50 chargeback fee in addition to a refund of the amount of the transaction.

Note that Bankcards issued in Australia can still be accepted throughout 2006.

For further information please contact the Commonwealth Bank Merchant Enquiries Helpdesk on 1800 230 177.

e-Notice [060301]:

Introducing e-Notices

An e-Notice is a new feature which provides you with important information about your Commonwealth Bank merchant services.

Be sure to visit this page regularly. Generally we will provide you reminders via your Merchant Statement messages, Merchant Values, as well as the VirtualPOS and Commweb Administration log in pages.

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should before acting on this advice, consider its appropriateness to your circumstances. If you have a complaint, the Bank's dispute resolution process can be accessed on 13 2221.