Heartland Payment Systems Hospitality Solutions Group Sherry Cronin Sr. Consultant for Restaurants Sherry.Cronin@e-hps.com

Agenda Review the basics of Chargeback Management Understanding chargeback notifications and response requirements Best practices How the chip card/EMV liability shift affects chargebacks What is required to protect your business

Guilty until proven innocent. Basics of Chargeback Management Retrieval vs. Chargeback The Issuer’s request for a copy of a transaction receipt. A response is required to address the dispute. If the cardholder wins the dispute, it becomes a chargeback and the funds of the transaction will debit at that time. A dispute initiated by the cardholder or issuer and a recall of funds (debit). Depending on the reason for the dispute and rules associated, merchants have re-presentment rights and the opportunity to attempt to remedy the dispute for many chargebacks although not all. Innocent Guilty until proven innocent. until proven guilty

Notification and Response Card Brand Chargeback Response Times (no exceptions) Card Brand Retrieval Response Times Visa/MC/Disc 30 DAYS AMEX 20 DAYS Notifications vary by processor. Could be electronic (email or online access), fax, or letter. Merchants should diligently follow card brand rules to minimize their risk of dispute losses.

Best Practices Always process Chip Cards as Chip Transactions Non-Chip Cards — Swipe the card through the terminal Declines — Ask for another form of payment, do not re- swipe Match the last four numbers on the slip Request/Check the signature Keyed/Manual entry transactions Check the expiration date Make an imprint Face-to-face deliveries require imprint and signature

Liability Shift – Chip Cards and Chargebacks New Rule: Process Chip Cards as Chip Transactions Merchants that do not have a terminal or POS system capable of reading EMV cards will be responsible for chargebacks and fraudulent card acceptance beginning October 2015. This applies only when an EMV card is presented at the POS; otherwise, the current liability responsibility remains in place. Best practices: In order to protect your business from chargebacks on chip cards, you need to be at least Chip enabled When processing a chip card, follow the instructions on the terminal You are not protected if a chip card is swiped or keyed

Chip Card Chargebacks Are On the Rise Volumes are increasing as more chip cards are issued. Large Metro Cities, Large issuing banks. Restaurants Ecommerce (Gift Cards) Micro Payments – Vending If your restaurant POS system has not deployed an integrated or semi-integrated EMV solution, consider going to a non-integrated solution for the time being (ex: standalone credit card terminal). Consider your environment and the amount of dollar threshold you are willing to risk.

More to come…. Stay informed Please join us for an in depth follow up webinar on EMV & Chargebacks Updates Trends Best Practices Date: January 14, 2016 Time: 2:00 PM Eastern Registration: http://bit.ly/restaurantchargeback Heartland Payment Systems Hospitality Solutions Group Sherry Cronin Sr. Consultant for Restaurants Sherry.Cronin@e-hps.com