American Express Merchant Reference Guide - U.S. April 2019 Copyright © 2008-2019 American Express Travel Related Services Company, Inc. All rights reserved. introduction..............................................................................................................8 1.1 about American Express .....................................................................................................9 1.2 about the reference guide ..................................................................................................9 1.3 organization of the reference guide ...................................................................................9 1.4 publishing schedule ............................................................................................................9 1.5 becoming an American Express merchant .........................................................................9 doing business with American Express...........................................................10 2.1 introduction.......................................................................................................................11 2.2 the American Express merchant number..........................................................................11 ta 2.3 merchant information.......................................................................................................11 b 2.4 use of third parties............................................................................................................11 l 2.5 compliance with the technical specifications ..................................................................12 e 2.6 call monitoring..................................................................................................................12 o 2.7 permitted uses..................................................................................................................12 f 2.8 Cardmember offers...........................................................................................................12 c 2.9 marketing programs..........................................................................................................12 o Card acceptance...................................................................................................13 n 3.1 accepting the Card............................................................................................................14 te 3.2 treatment of the American Express brand........................................................................14 n 3.3 prohibited uses of the Card ..............................................................................................16 ts 3.4 treatment of American Express Cardmember information...............................................17 This document shall not be reproduced in any form without the express prior April 2019 3 written consent of American Express Travel Related Services Company, Inc. transaction processing........................................................................................18 4.1 the many types of transactions ........................................................................................19 4.2 transaction cycle...............................................................................................................19 4.3 completing a transaction at point of sale.........................................................................20 4.4 processing an in-person charge........................................................................................21 4.5 customer activated terminals...........................................................................................21 4.6 processing a Card not present charge..............................................................................22 4.7 processing a credit............................................................................................................22 4.8 digital wallet payment......................................................................................................22 ta 4.9 return and cancellation policies .......................................................................................22 b 4.10 corporate purchasing Card charges..................................................................................22 l 4.11 advance payment charges ................................................................................................22 e 4.12 aggregated charges ..........................................................................................................23 o 4.13 delayed delivery charges ..................................................................................................23 f 4.14 recurring billing charges ...................................................................................................23 c 4.15 processing prepaid Cards .................................................................................................24 o 4.16 processing travelers/gift cheques ....................................................................................24 n authorization..........................................................................................................25 te 5.1 introduction......................................................................................................................26 5.2 transaction cycle...............................................................................................................26 n 5.3 the purpose of authorization.............................................................................................27 ts 5.4 authorization process........................................................................................................27 5.5 possible authorization responses .....................................................................................27 5.6 obtaining an electronic authorization...............................................................................27 5.7 obtaining a voice authorization ........................................................................................28 5.8 Card identification (CID) number ......................................................................................28 5.9 authorization reversal.......................................................................................................28 5.10 authorization time limit.....................................................................................................28 5.11 floor limit...........................................................................................................................28 This document shall not be reproduced in any form without the express prior April 2019 4 written consent of American Express Travel Related Services Company, Inc. submission .............................................................................................................29 6.1 introduction.......................................................................................................................30 6.2 transaction cycle...............................................................................................................30 6.3 purpose of submission......................................................................................................30 6.4 submission process...........................................................................................................31 6.5 submission requirements – electronic .............................................................................31 6.6 submission requirements – paper ....................................................................................31 6.7 how to submit...................................................................................................................31 settlement...............................................................................................................32 ta 7.1 transaction cycle...............................................................................................................33 b 7.2 settlement amount............................................................................................................33 l 7.3 discount/discount rate......................................................................................................34 e 7.4 method of payment...........................................................................................................34 o 7.5 speed of payment.............................................................................................................34 f 7.6 payment options...............................................................................................................34 c 7.7 reconciliation options.......................................................................................................34 o 7.8 payment errors or omissions ............................................................................................34 n protecting Cardmember information.................................................................35 te 8.1 data security operating policy ..........................................................................................36 n 8.2 standards for protection of Cardmember information......................................................36 ts 8.3 data incident management obligations............................................................................36 8.4 indemnity