FD GeneralGuidelines BestPractices HandlingRetrievals Chargebacks

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1 Retrieval & Chargeback Best Practices A Merchant User Guide to Help Manage Disputes Visa MasterCard Discover American Express April 2018 www.First D ata.com

2 Dispute Management Guide This guide is provided as a courtesy and is to be used for general information purposes only. First Data shall not be responsible for any inaccurate or incomplete information. The matters contained erein are subject to change. Individual circumstances may vary h and procedures may be amended or supplemented as appropriate. This is not intended to be a complete listing of all applicable guidelines and/or procedures. No information contractual obligations between First Data and its contained herein alters any existing clients. The purpose of this guide is to provide merchants and their back office staff with additional educational guidance as it relates to Visa, MasterCard, Discover, and American Express dispute proc essing. This manual contains information that relates to specific industry processing environments and includes best practices for doing business and avoiding loss as it relates to fraud and/or chargebacks. This guide does not take away from the terms or conditions outlined in your merchant processing agreement or replace current operation regulations. All chargebacks should be reviewed and presented as individual cases. Although the dy individual reason codes may be the same, supporting documentation required to reme chargeback scenarios may vary. First Data Corporation. All Rights Reserved. All trademarks, service marks and © 201 6 This trade names referenced in this material are the property of their respective owners. ns confidential and proprietary information of First Data Corporation. document contai Review or distribution by individuals other than the intended recipients is strictly prohibited. This document, and any information contained herein, may not be copied, reproduced or di stributed in any manner whatsoever without the express written consent of First Data Corporation. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 2 of 234

3 Dispute Management Guide s Summary of Change April 2018 Description Location Description Location Location Description First Data Payments Compliance Rev 04/17 Developed by: 3 of 234 Confidential & Proprietary to First Data

4 Dispute Management Guide Table of Contents Dispute Management Guide Authorization Overview ... ... ... ... 6 Transaction Overview ... ... ... ... 9 11 Retrieval Overview ... ... ... ... ... ... ... ... 11 Retrieval Request ... Retention Timeframe ... ... ... 13 Delivery ... ... ... ... 13 13 Fulfillment ... ... ... ... 14 ... ... ... Requirements for a valid fulfillment Retrieval Request Workflow ... 15 ... ... ... ... ... Chargeback Overview 16 ... Chargeback Workflow ... ... ... .. 17 Compelling Evidence ... ... ... ... 17 21 ... Fraud Disputes ... ... ... ... Non Receipt of Information ... - ... 62 ... Authorization Issues ... ... ... 65 Cancelled/Returned ... ... ... ... 88 96 Cardholder Disputes ... ... ... ... ... ... Processing Errors 136 ... ... 167 ... ... ... ... Dispute Compliance Credit Adjustments 173 ... ... ... ... Exceptions ... ... ... ... 174 Pre - Arbitration ... ... ... ... 174 ... Visa Pre Arbitration ... - ... 174 MasterCard Pre - Arbitration ... ... ... 175 Discover Pre Arbitration ... ... ... 175 - Pre - Complianc e ... ... ... ... 176 Visa and MasterCard Good Faith Collection ... ... 177 ... ... ... 177 Discover Good Faith Collection 178 ... Best Practices for Specific Merchant Industries ... 178 ... ... ... Mail/ Telephone Billing (MO/TO) ... ... ... ... 182 Ecommerce Billing Car Rental ... ... ... ... 185 Airlines ... ... ... ... 191 ... 195 Cruise Lines ... ... ... ... ... ... ... 198 Lodging Petroleum (Automated Fuel Dispenser - AFD) ... ... 205 Visa/MasterCard Pro grams & Services ... ... ... 207 220 Discover Programs & Services ... ... ... ... No Signature / No PIN Required ... 221 ... 222 ... ... ... Address Verification Service Security Code 222 ... ... ... ... First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 4 of 234

5 Dispute Management Guide ... ... ... ProtectBuy Secure Program 222 225 ... ... ... Keyed No Imprint Program No Signature Program 225 . ... ... ... ... 226 ... Safekey ... ... 227 Glossary ... ... ... ... First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 5 of 234

6 Dispute Management Guide Chapter Authorization Overview An authorization is a request for verification 1 that the ’ account is in good s cardholder standing with funds available at the time of the r equest . /funds on the An authorization approval code indicates the availability of credit account at the time the authorization is requested. It does the that warrant not cardholder person presenting the card is  Transaction is approved by – Approved the rightful cardholder, nor is it overns the payment card issuer/company that g a prom ise or guarantee the sale will not be subject to a -  Message indicating that the merchant Referral chargeback. The following are must call their authorization center and follow some examples of responses instructions provided received from the card issuers. - Transaction was not approved by Declined  issuer/company that governs the payment card. Failure to obtain an not be completed. The transaction should authorization approval Request another form of payment code for a sales transaction may result in Pick Up Card Card Issuer wants to recover the -  a chargeback not complete the transaction. Ask for card. Do another method of payment and if you feel comfortable recover the card from the cardholder Note : Follow your internal All Networks procedures for card recovery Discover Note: Authorizations are valid for 10 days except for Travel Service Merchants, which are valid for 30 days. American Express Note: Authorizations are Partial Authorization e valid for 7 days except for Travel Servic Partial authorizations may be Merchants, which are valid for duration of granted by an issuer when the service. unt is in good acco cardholders , however standing; does not for the full amount of the purchase. When partial have enough credit /available funds authorizations are received you may process the transaction for the amount that was ent for the difference. If the transaction is authorized and request another form of paym processed for the full amount, a chargeback may be received for the amount that was not authorized. Developed by: 7 Rev: 04/1 First Data Payments Compliance Confidential & Proprietary to Fir 234 of 6 st Data

7 Dispute Management Guide Visa and MasterCard Only Single Authorization for Multiple Transactions multiple transact permitting Visa is  - not - ions to be processed for a single card For example: the cardholder makes a purchase present authorization message. over the phone for multiple items and ships a portion that day, therefore the merchant will process a transaction for the merchandise th at is shipped first and using the same authorization code process a transaction for the merchandise that is shipped the next day.  MasterCard is permitting multiple transactions to be processed for a single authorization. Referral Response response is received the merchant should not When a referral attempt additional all the authorization center to The merchant should c authorizations on the same card. approval code to complete the receiv e a voice transaction . A voice authorization should only be request ed when a referral response is received. If Unfavorable responses , the merchant receives an unfavorable response include but are not limited to nother form of payment should be requested. a Up Card and - Declined, Pick Refer to Issuer. Estimated, Initial and Incremental Authorization Processing Visa is expanding merchants who are eligible to utilize estimated, initial and incremental . The expansion includes rental authorization processing; effective April 22, 2017 merchants when their business has unknown final purchase amounts and entertainment ew, innovative payment options merchants that can use incremental processing to offer n to their customers. The following merchant category codes are now eligible: 5812 Eating places and restaurants   5813 Drinking Places  4457 Boat rentals and leasing  7033 Trailer parks and campgrounds ture, and appliance rental and leasing 7394 Equipment, tool, furni   7519 Motor home and recreational vehicle rentals  7996 Amusement parks, circuses, carnivals, and fortune tellers  7999 Recreation services All other m single erchants should not attempt to obtain multiple authorizations for a transaction. If a sale is declined, do not pursue alternative measures with the same card to obtain approval. Instead, request another form of payment. Merchants accepting and Network , char gebacks with multiple authorizations are subject to processing transaction s fines and/or cancellation of their processing agreement. , Auth, or Undefined - Final, Pre Effective April 22, 2017 ; MasterCard is requiring merchants to identify each horizations will be auth or undefined. Final and undefined aut - authorization as a final, pre First Data Payments Compliance Developed by: Rev 04/17 7 Confidential & Proprietary to First Data of 234

8 Dispute Management Guide - otherwise a new authorization will need to be obtained. Pre days; valid for 7 authorizations are equivalent to incremental authorizations and will be valid for 30 days. 7 Rev: 04/1 First Data Payments Compliance Developed by: Confidential & Proprietary to Fir st Data 8 of 234

9 Dispute Management Guide Chapter Overview Transaction A transaction is an act between a cardh older and a merchant that results 2 in an exchange of funds for goods or . services The There are five main components that work together to process a single transaction. cardholder will present their card for payment for the goods or services. When the merchant accepts this payment and processes it though their Point of Sale (POS) device a request for authorization is transmitted to . or other authorization provider First Data ansmits the the Network submits the request to authorization provider n The who in turn tr request to the card issuer. The card issuer will approve An individual to whom a credit, debit, or  Cardholder – or decline the request and prepaid card type is issued, or who is otherwise authorized return the response back to use the card through the previous -  Card Issuer Financial institution that maintains channels; the merchant will cardholder relationships. Issues credit or other card types receive the reply and and contracts with its cardholder for billing and payment complete the transaction of transactions appropriately. – Merchant  A business entity that is authorized to accept electronic payments for the exchange of goods or services A member that signs an agreement with the - Acquirer  nable acceptance of card products merchant to e – Processor  A Company (i.e., First Data) that contracts with an Acquiring Bank to provide credit card processing services  Visa, MasterCard, Discover and American Express - he card An entity that provides card products, promotes t brand, and establishes rules and regulations governing member participation and card programs Rev 04/17 Developed by: First Data Payments Compliance 9 Confidential & Proprietary to First Data 234 of

10 Dispute Management Guide rd Network BIN Ranges Ca A BIN, or “bank identification number,” is a six digit number that identifies the card issuer. This number is part of what makes up the entire card number on a payment card, t of the payment card number, like a credit, debit, or gift card. The BIN is the first par usually sixteen digits representing the first 6 digits of a . The first four digits of number this number are often printed on the card for additional security, just underneath where the number is embossed. The very first digit is called the MII or “Major Industry Identifier.” Here is a list of what the MII numbers mean: Airlines (Diners Club enRoute) 2 - 1 .” MasterCard will introduce a new series that begins with a “2 Effective 07/2017 55” series BINs are today. - 1 These will be processed the same as the “5 3 bank issuers like AMEX, Diner’s Club, JCB, - Travel and entertainment from non and Carte Blanche 4 Banking and financial (Visa, Switch, and Electron) Banking and financial (MasterCard and BankCard) 5 6 (Discover, Laser, Solo, Switch, and China UnionPay) Merchandising and finance Petroleum 7 8 Telecommunications 9 National assignment First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 10 of 234

11 Dispute Management Guide Chapter Retrieval Overview A retrieval request for a is a request 3 of the transaction copy documentation Retrieval Request - however, if not fulfilled a Network eceived from financial ; A retrieval request r is non , could result in a chargeback. The issuer would submit a retrieval request to properly . Each retrieval an available chargeback right satisfy a consumer’s need, or support A ified with a request code explaining why the request was initiated. request is ident days to calendar within 20 First Data retrieval request fulfillment must be received by . Below is a list of the retrieval request back to the issuer ensure a timely fulfillment nd their definitions. codes a Visa Retrieval Reason Codes and Definitions HealthCare 27HC Request for copy bearing signature 28 Request due to Cardholder inquiry 30 33 Request for fraud analysis 3 4 Request for legal process MasterCard Retrieval Reason Codes and Definitions Cardholder does not agree with billed amount 05 Cardholder does not recognize transaction 21 Transaction Certificate (ICC 22 Transaction) saction Information Documentation needed Tran 23 by cardholders personal record expense reporting 41 Fraud Investigation 42 Potential Chargeback or Compliance Documentation 43HC HealthCare First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 11 of 234

12 Dispute Management Guide Discover Retrieval Reason Codes and Definitions Document Request Transaction 01 Transaction Document Request Cardholder Dispute 04 05 Transaction Document Request for Fraud Analysis Good Faith Investigation 06 American Express Retrieval Reason Codes and Definitions - Non 004 Receipt of Goods or Services 021 Cancelled Recurrin g Transaction 024 Cardholder Dispute Defective/Not as Descripted 059 Cardholder Dispute Defective/Not as Descripted Debit Posted as Credit 061 Credit Posted as Debit 062 063 Quality of Goods or Services 127 Cardholder Does Not Recognize No Cardholder 147 Authorization Cardholder Cancelled 154 Non Receipt of Merchandise 155 Request for Credit 158 Correct Transaction Currency Code Not Provided 169 Cardholder Cancelled 170 Duplicate Billing 173 175 Request for Credit 176 Cardholder Does Not Recognize No Cardholder Authorization 177 Fraud Investigation 193 Cardholder Does Not Agree with Amount Billed 680 Paid by Other Means 684 Request for Copy 691 No Cardholder Authorization 693 First Data Payments Compliance Developed by: Rev: 04/1 7 Confidential & Proprietary to Fir 12 of 234 st Data

13 Dispute Management Guide Retention Timeframe Visa and MasterCard require a business  If your 1 . retention timeframe month 3 processes you must retain your transaction transactions, HealthCare documentation for five years. has a 3 year retention timeframe  Discover American Express has a 2 year retention time  frame Delivery sed on how your account is set up (i.e., Electronic or mail). Retrievals are forwarded ba When retrieval is received you should provide all per tinent documentation that is available to support the transaction and the reason the retrieval was received by the due date listed on the request. This Electronic may include but not be limited Mail to; a copy of the sales draft, Fax – Visa, MasterCard and Discover Only folio, rental agreement or any other tran saction document that has been retained. Substitute sales drafts may be created by First Data and utilized to fulfill  American Express Retrievals. A substitute sales draft is a document created from required transaction elements received when the trans action is processed. Not all requests can be fulfilled using a substitute sales draft. If the request  cannot be fulfilled it will be forwarded to you to respond. Fulfillment When responding, please ensure you follow the directions on your Electronic retrieval notification. This would include: Mail Fax Provide clear and legible copies of all documents that  support the transaction Ensure each response includes the original notification as well as the retrieval  case number e being provided, ensure all If the same documentation or multiple pages ar  case numbers are written on each page All responses should be provided prior to the due date listed on the original  notification If multiple responses are received only the first response provided will be utilized  he request to fulfill t  Ensure you attach the correct transaction documentation to the corresponding retrieval First Data Payments Compliance Developed by: Rev 04/17 13 Confidential & Proprietary to First Data of 234

14 Dispute Management Guide Requirements for a valid fulfillment Information required on sales drafts vary based on the specific merchant industry. All hould be contained within one document. The main elements must be provided and s information s drafts are listed below; however, do vary by industry. requirements for sale Please ensure all sales drafts contain these minimum requirements: Account number   Expiration date  and location Merchant name Transaction amount   Transaction date  Description of merchandise or service  Ship to address (if applicable)  Authorization code ( if available)  Cardholder name (if available) Drafts which contain a cardholder signature will need to include the de tails of the transaction on the same document in order to link the transaction to the signature. This would apply to signature capture receipts as well. Note: Failure to respond timely & accurately to your retrieval request may result in a chargeback wit h no representment rights or a Compliance Violation. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 14 of 234

15 Dispute Management Guide Retrieval Request Workflow Receives Cardholder, Issuer or First Data Request/Fulfillment American Express Retrieval Request Transmitted through and E I nitiates Retrieval nriches with Request/ Receives Network Channels Transaction Data . lectronically E Fulfillment Auto Fulfillment Fulfillment ulfills First Data F equest R to Network Data otifies N First erchant of equest via M R Merchant F ulfills equest R ax F E lectronic D elivery, to First Data M or ail firmation that you have fulfilled TIP: Retain con the retrieval request (i.e. fax confirmation, electronic alert/acknowledgements or other documentation) Rev 04/17 First Data Payments Compliance Developed by: 234 of 15 Confidential & Proprietary to First Data

16 Dispute Management Guide Chapter Chargeback Overview that has transaction A Chargeback is a 4 and returned by the been disputed various cardholder/issuer for reasons . disputed and returned through the There are various reasons that a transaction can be the issuer must first confirm that a chargeback right , . However chargeback process Networks applies. hav e rules outlining the issuer rights and processing requirements The as well as requirements for you and your acquirer/processor. ssuer is responsible to The i ensure that the chargeback is submitted for the correct reason code, within the pre - su , ame determined timefr pply the required documentation, as well as meet all other regulatory conditions. Credit should not be issued upon receipt of a chargeback. When contesting a chargeback ensure you respond prior to the The issuer has applied a chargeback due date and provide a full explanation along with all conditional credit to the he chargeback may be pertinent supporting documentation. T cardholders account. reversed if the information is sufficient. Chargeback reversals Credits issued after a are conditional as the issuer may pursue the case further by chargeback has been received . case arbitration - processing a second chargeback or incoming pre may not be recoverable and you would be financially Please refer to the Exceptions section of t his guide for further responsible for the credit as explanation. well as the Chargeback. re a Chargeback’s based on the reason code for the categories nine into grouped chargeback. 1. Fraud Non - Receipt of Information (Visa and MasterCard) 2. 3. Authorization Issues 4. Cancellations & Returns (Visa and Discover) 5. Cardh older Disputes 6. Processing Errors 7. Violation of Operating Regulations (Discover) Retrieval/Miscellaneous (American Express) 8. 9. Chargeback Programs (American Express) Each individual chargeback reason code carries its own conditions and requirements de why the chargeback is being processed as well as what information can be which inclu provided to reverse the chargeback. Chapter 4 contains a full description of each reason code, how the chargeback can either be avoided or defended and case scenarios. First Data Payments Compliance Developed by: Rev: 04/1 7 Confidential & Proprietary to Fir 16 of 234 st Data

17 Dispute Management Guide Chargeback Workflow Cardholder, Issuer or First Data Receives Chargeback Transmitted Chargeback through Network Channels and Enriches with Transaction American Express Data/Supporting tiates ni Disputes I Chargeback Supporting Transaction Documentation Docu mentation via Network Channels Representment Representment First Data Represents Chargeback First Data Notifies Merchant of Chargeback M erchant Refutes First Data Reviews the Chargeback and P rovides Documentation Supplied Supporting by the Merchant and Documentation to First Reverses to Issuer or Data enies the Merchant D Request Merchant Accepts the Chargeback No Response Required Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data 17 of 234

18 Dispute Management Guide Compelling Evidence Compelling evidence is documentation provided by the merchant that, while not being a remedy to t the transaction was the chargeback, provides information that supports the merchant’s claim tha made by the cardholder. Visa allows for documentation to be used in support of a dispute for cardholder dispute and fraud related reason codes. Visa updated their oper ating regulations to clarify additional types of Compelling nce that can be used during the dispute resolution process for the following Evide chargeback reason codes: – Reason Code 30  Services Not Provided or merchandise Not Received  Reason Code 53 – Not as Described or Defective Merchandise  Reason Code 76 – Incorrect C urrency or Transaction Code Fraud Card – Reason Code 81  Present - -  Present - Not Fraud Card – Reason Code 83 Visa’s Compelling Evidence Table Chargeback Reason Code Allowable Compelling Evidence 76 30 53 81 83 X X X Evidence, such as photographs or emails, to pro ve a link X between the person receiving the merchandise or services and the Cardholder, or to prove that the Cardholder disputing the Transaction is in possession of the merchandise and/or is using the merchandise or services. X X X For a Card - Absent En vironment Transaction in which the merchandise is collected from the merchant location, any of the following:  Cardholder signature on the pick - up form  Copy of identification presented by the Cardholder  Details of identification presented by the Cardholder X Absent Environment Transaction in which the - For a Card X X merchandise is collected from the Merchant location, any of the following: Cardholder signature on the pick  up form -  Copy of identification presented by the Cardholder  n presented by the Cardholder Details of identificatio 7 Developed by: First Data Payments Compliance Rev: 04/1 Confidential & Proprietary to Fir st Data 18 of 234

19 Dispute Management Guide Chargeback Reason Code Allowable Compelling Evidence 81 83 30 53 76 X For an Electronic Commerce Transaction representing the X X sale of digital goods downloaded from a Merchant's website or application, description of the merchandise or services such merchandise or successfully downloaded, the date and time services were downloaded, and 2 or more of the following:  Purchaser's IP address and the device geographical location at the date and time of the Transaction Device ID number and name of device (if available)  Purchaser's name and email address linked to the customer profile held by the Merchant  Evidence that the profile set up by the purchaser on the Merchant's website or application was accessed by the purchaser and has been successfully verified by the Merchant before the Transaction D ate  Proof that the Merchant's website or application was accessed by the Cardholder for merchandise or services on or after the Transaction Date  Evidence that the same device and Card used in the disputed Transaction were used in any previous Transaction t hat was not disputed X For a Transaction in which merchandise was delivered to a X X business address, evidence that the merchandise was delivered and that, at the time of delivery, the Cardholder was working for the company at that address. A signature is not required as evidence of delivery. For a Mail/Phone Order Transaction, a signed order form X X X For a passenger transport Transaction, evidence that the services X X were provided and any of the following: at the Cardholder’s  Proof that the ticket was received billing address  Evidence that the ticket or boarding pass was scanned at the gate  Details of frequent flyer miles relating to the disputed  Transaction that were earned or redeemed, including a link to address and telephone number, that establish the Cardholder Evidence of any of the following additional  Transactions  related to the original Transaction: purchase of seat upgrades, payment for extra baggage, or purchases made on board the passenger transport ing Members in the Visa Europe For Transactions involv X X Territory, for an Airline Transaction, evidence showing that the name is included in the manifest for the departed flight and matches the name provided on the purchased itinerary. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 19 of 234

20 Dispute Management Guide Allowable Compelling Evidence Chargeback Reason Code 83 53 76 81 30 X the services were provided For a T&E Transaction, evidence that X X and either: Details of loyalty program rewards earned and/or  redeemed including address and telephone number that establish a link to the Cardholder Evidence that an additional Transaction or Transactions  Transaction, such as the purchase related to the original of T&E service upgrades or subsequent purchases made throughout the T&E service period, were not disputed Absent Environment Transaction, evidence that the For a Card - X X physical address, Transaction used an IP address, email address, and telephone number that had been used in a previous, undisputed Transaction X X Evidence that the Transaction was completed by a member of the Cardholder's household or family. X rchandise was Evidence that the person who signed for the me authorized to sign for the Cardholder or is known by the Cardholder. Evidence of one or more non X X disputed payments for the same - merchandise or service X X For a Recurring Transaction, all of the following: ding contract held between the Evidence of a legally bin  Merchant and the Cardholder Proof the Cardholder is using the merchandise or  services Evidence of a previous Transaction that was not  disputed X For a Dynamic Currency Conversion (DCC) Transaction not er or Acquirer in the Visa Europe Territory, involving an Issu both: Evidence that the Cardholder actively chose DCC, such  as a copy of the Transaction Receipt showing a checked "accept" box or evidence that the DCC solution requires nd choice could electronic selection by the Cardholder a not be made by the Merchant's representative  A statement from the Acquirer confirming that DCC choice was made by the Cardholder and not by the merchant First Data Payments Compliance 7 Rev: 04/1 Developed by: Confidential & Proprietary to Fir st Data 20 of 234

21 Dispute Management Guide Fraud Disputes related – Fraud ardholder or authorized user ransactions that the c reason codes are used on t claim are unauthorized; the account number is no longer in use or is fictitious, or the . merchant was identified as “High Risk” s and Description and Description Reason Code Reason Codes Fraudulent Multiple Transactions – 57 No Cardholder Authorization – 37 – 40 – 62 Fraudulent Processing of Counterfeit Transaction Transactions Fraudulent Transaction – 81 – - Card Present 49 – Questionable Merchant Activity Environment 63 – Cardholder Does Not Recognize – Potential Fraud – Card - Not 83 Fraudulent Transaction Present Environment Chip Liability Shift 70 – 93 Merchant Fraud Performance – Chip/PIN Liability Shift 71 – Program Developed by: Rev 04/17 First Data Payments Compliance of Confidential & Proprietary to First Data 234 21

22 Dispute Management Guide * Dispute Group/ Fraudulent Disputes tions Fraudulent Multiple Transac Visa 57 Multi ple transactions from a single card occurred at the same merchant location without the (card present transactions only) . cardholder ’ s permission Note: The cardholder admits that one transaction was valid and their cards were in their posses sion of the 120 calendar days from the central processing date Time Limit – transaction Possible Cause Merchant processed m  ultiple transactions which were not voided , or  Transactions were fraudulently processed at merchant location How to Avoid Ensure er rors at point of sale (POS) are voided prior to batch out processing  Do not batch out transactions multiple times  swipe - magnetic obtain being completed ensure you are s If multiple transaction  for each transaction and obtain the cardholder’s signature on ea ch transaction receipt fraud Educate staff on procedures to eliminate  POS How to Defend by providing both  Evidence that fraudulent multiple transactions did not occur transaction documents and written rebuttal explaining the multiple transactions such as; two different clerks, times of (Point ou t differences between transaction s transactions, checkout lanes, different merchandise purchased, etc)  Provide evidence that transactions were EMV Chip PIN transactions Follow all instructions provided on the chargeb ack notification and respond by  the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 57. The cardholder contacted their bank to notify them of fraudulent transactions posting to their account. The cardholder participated in one transaction with a local retailer ; , they have been billed three additional times. The issuer retrieved all however receipts; however, they appeared to be duplicated. How would this chargeback be resolve d ? would need to provide proof that all transactions were You Answer: different and that the cardholder participated in each . This proof would transaction receipts read tripe as well as a consist of signed and magnetic s . written rebuttal addressing the transactions First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 22 of 234

23 Dispute Management Guide Scenario #2 A chargeback was received from the issuer for reason code 57. The cardholder contacted their bank to notify them of fraudulent transactions posting to their account. The cardholder participated in one transaction with a local retailer; wever, they have been billed two additional times. A prior retrieval request ho a fulfillment was not ; however the issuer for this transaction was received from supplied by your establishment . A rebuttal has been received from you containing documentation s upporting three different transactions. How would this chargeback be resolved? The chargeback would remain debited to your account. Chargeback Answer: representment rights no longer exist when the initial retrieval request was not fulfilled. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 23 of 234

24 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Counterfeit Transactions Visa 62 nor anyone authorized by engaged in the disputed The cardholder states neither they them transaction and that the cardholder or a person authorized by him or her was in ll cards on the transaction date. The transaction is determined to be a result possession of a of counterfeit magnetic stripe fraud, and the entire unaltered contents of the magnetic tripe (card present was not transmitted and approved by the issuer or its agent s transact An EMV Chip Card was used at a Non EMV Chip capable terminal. ions only). Manual Cash Transaction exceeding $5000.00 will be permitted as a chargeback. optional for is The requirement for a financial institution to validate a cardholder’s ID disbursements that are PIN authenticated chip transactions and $500 USD - manual cash (or local equivalent) or less  If a PIN - authenticated disbursement is over $500 USD (or local equivalent) the validation of the cardholder’s ID must still be completed longer y Payment Services) available to merchants in Canada for is no VEPS (Visa Eas e transaction. contact chip or magnetic strip VEPS will only be available for Proximity Payments in Canada and will remain at  $100 CAN threshold Time Limit of the central processing date 120 calendar days from the – transaction Possible Cause Authorization was received without reading entire magnetic stripe information, or   Manual Cash Disbursement or Quasi Cash: First four digit of embossed account number were not compared to the pre - printed digits below the embossed number for a card present transaction, or read magnetic stripe data to  and unable or otherwise faulty POS device is dirty How to Avoid  Obtain a full magnetic swipe for all card present 2 data 1 and track including track or ansactions, tr and Obtain an imprint for all key entered transactions,  working POS device is in Ensure  order , free of dirt and debris How to Defend  Supply a magnetic swipe/imprinted signed transaction receipt  Provide proof that the transaction occurred wi th a non - Chip card at a Chip capable terminal Provide proof that the Chip card was processed at a Chip - Reading device and was  a Fallback transaction  - Provide proof that the Chip card was processed at a Chip Reading device the chargeback notification and respond by Follow all instructions provided on  the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 24 of 234

25 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code account 62. The be resolved? chargeback was closed prior to the transaction. How would this You nswer: would have to prove that the transaction was processed A magnetic swipe complete and unaltered according to the regulations, a reading of the card . or a manually imprinted transaction receipt First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 234 of 25

26 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Card Transaction - Present Environment - Visa 81 Fraudulent nvironment present e - t processed a transaction in a card Merchan which the cardholder or cardholder signature is missing on the claims is unauthorized and a card imprint and/ transaction receipt . – Time Limit of the transaction date dar days from central processing 120 calen s : Note  Visa will consider a dispute invalid for reason code 81 if the transaction was electronically captured at the point of sale (i.e. magnetically swiped, chip, or contactless). Issuers will ma intain chargeback rights if the transaction was key - This note is not applicable to entered or a result of an unattended transaction. transactions involving Visa Europe (Issuer or Merchant in Europe) s raudulent chip - liable for all online transactions authorized f Visa will hold issuer  - that (ATM’s excluded) s (contact and contactless) made at unattended terminal supports the processing of transaction without a Cardholder Verification Method s (CVM). Possible Cause The credit card was not swiped through the magne tic stripe reader,  or entered -  A manual imprint was not obtained when account information was key Cardholder signature was n  transaction receipt ot obtained on the ecommerce Failed to identify card not present transaction as MO/TO or  (for key entered or Failure to respond prope rly to a prior retrieval request  unattended terminal transactions) How to Avoid legible lways obtain a a If unable to swipe the card,  transaction signed imprinted , verify infor receipt mation matches rd when necessary Use proper imprinter for imprint of ca – Do not perform pencil rubbings of imprint – Do not imprint on the back of the receipt or imprint on blank transaction – receipt Swipe card for each transaction and obtain signature Magnetic  - cedures for suspicious  Implement internal fraud prevention policies and pro activity  Ensure proper and timely response to all retrieval requests  Participation in the CVV2 Validation Program for key entered transactions in place of an imprint Note: rvices” for additional Seven “Visa/MasterCard Programs & Se Please refer to Chapter details First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 26 of 234

27 Dispute Management Guide Defend How to , or  Supply sales draft with a legible imprint , signature or PIN Key entered transaction  with CVV2 Validation Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional Note: details  Provide documentation the transaction was processed using a Chip PIN compliant PIN preferring card - terminal, and the card was a non Provide documentation that the transaction was processed using a Chip PIN  compliant terminal, and a Chip PIN card was used F  ollow all instructions provided on the chargeback notification and respond by the due date provided For an airline transaction, evidence that the cardholder Excluding Visa Europe  name included in the flight manifest for the departed flight matches the name provided on the purchased itinerary Excluding Visa Europe  For a merchant using Merchant Category Codes (MCCs) Digital Goods: Media, Books, Movies, Music, 5816 — Digital Goods: — 5815 — — Games, 5817 Digital Digital Goods: Applications (Excludes Games) and 5818 G oods: Large Digital Goods Merchant, all of the following: Evidence that the merchant is the owner of the operating system for the – subject electronic device – Evidence that the merchant has been successfully registered into and h continues to participate in t e Visa Digital Commerce Program – Evidence that the account set up on the merchant’s website or application was accessed by the cardholder and successfully verified by the merchant before or on the transaction date ed the same device and card as Evidence that the disputed transaction us – any previous, undisputed transactions – Proof that the device ID number, IP address and geographic location and name of device (if available) are linked to the cardholder profile on record with the merchant – goods or services and the date and time they were Description of the ed and successfully downloaded. purchas Customer name linked to the customer profile on record at the merchant – entered on the merchant’s - Evidence that the customer password was re – the time of purchase website or application at Evidence that the merchant validated the card when the cardholder first – linked the card to the customer profile on record at the merchant First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 27 of 234

28 Dispute Management Guide Chargeback Scenarios Scenario #1 81. T A chargeback was received from the issuer for reason code he cardholder face transaction and gave account you his - to - states that they engaged in the face number for verification purposes only ; however, the account was billed. How would this be remedied? chargeback hat the cardholder authorized You would need to provide proof t Answer: the transaction on their credit card, by supplying proof that the card was electronically captured (Swiped, Chip, Contactless) or imprinted , cardholder s ’ transaction reflecting the signature. receipt 2 Scenario # A chargeback issuer for reason code 81. The from a European was received that s cardholder states that their card was stolen and provided a list of transaction chargeback they did not authorize. ? What would remedy this saction receipt with the Answer: A magnetic stripe read or imprinted tran mentation to prove the supporting docu or s signature ’ cardholder transaction was processed using a Chip Pin compliant terminal, and the card was a non - PIN preferring card, or Provide documentation that the transaction was processed using a Chip PIN compliant terminal, and a Chip PIN card was used. Scenario # 3 chargeback from the issuer for reason code to - face A face merchant received a - 81. The cardholder states the transaction was not done by them. What would remedy this chargebac k? Answer: Proof that the transaction was electronically captured (Swiped, Chip, Contactless ) and a copy of the sales draft; o r supporting documentation to prove participation in the CVV2 Validation Program and the sales draft. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 28 of 234

29 Dispute Management Guide Dispute Group/ Fraudulent Disputes * Card - Absent Environnent Visa 83 - absent environment without cardholder Merchant processed a transaction in a card permission or with a fictitious account number, or processed an electronic commerce transaction that meets specified requirements rd not present transactions) . (ca 120 calendar days from central processing date – of the transaction Time Limit : Visa will consider a dispute invalid for reason code 83 if the transaction was Note electronically captured at the point of sale (i.e. magnetic ally swiped, chip, or contactless). Issuers will maintain chargeback rights if the transaction was key - entered or a result of an unattended transaction. This note is not applicable to transactions involving Visa Europe (Issuer or Merchant in Europe) Possi ble Cause A transaction was made fraudulently by an unauthorized person, and/or   An authorization was not obtained for the transaction, or  Cardholder does not recognize the transaction because their statement reflects a different merchant name How to Avoid Verified by Visa Participation in the  transactions ecommerce Program for Note: Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional details merchandise the confirmed to address only (bill to  Obtain positive AVS and s hip and ship to address should match), and Obtain authorization for all transactions, and   Implement internal fraud prevention policies and procedures for suspicious activity Ensure merchant descriptor matches the name of the business and is displayed  correctly on the cardholder statement  Respond to all retrieval requests within the required timeframe with all appropriate transaction documentation to recover funds from previous Note: Credit cards are not to be used occurred financial loss re a or any other incident we , bad check chargeback ’ s s How to Defend  Provide proof that merchandise was shipped to a positive AVS confirmed address Domestic only, and proof of delivery was obtained (response of “X” or “Y”) - in resolving the signed proof of delivery may be required to further assist or chargeback Proof that CVV2 was utilized and an unsupported (response code of “U”)  or response was received, Proof that an unsupported AVS (response code of “U”) was received - Domestic  or only, First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 29 of 234

30 Dispute Management Guide fied by Visa was utilized proof Veri - Electronic commerce transaction  For Guaranteed No Show provide transaction documentation that includes -  cardholder account number, cardholder name, phone number, check - in date and confirmation number Provide Compelling Evidence that the cardholder participated in the transaction.  Follow all instructions provided on the chargeback notification and respond by  the due date provided For an airline transaction, evidence that the cardholder Excluding Visa Europe  name included in the flight manifest for the departed flig ht matches the name provided on the purchased itinerary For a merchant using Merchant Category Codes (MCCs)  Excluding Visa Europe — 5815 Digital Goods: — Digital Goods: Media, Books, Movies, Music, 5816 and 5818 Digital Goods: Applications (Excludes Games) — Games, 5817 — Digital Goods: Large Digital Goods Merchant, all of the following: Evidence that the merchant is the owner of the operating system for the – subject electronic device – Evidence that the merchant has been successfully registered into and continues to participate in th e Visa Digital Commerce Program – Evidence that the account set up on the merchant’s website or application was accessed by the cardholder and successfully verified by the merchant before or on the transaction date – Evidence that the disp uted transaction used the same device and card as any previous, undisputed transactions – Proof that the device ID number, IP address and geographic location and name of device (if available) are linked to the cardholder profile on record with the merchant Description of the goods or services and the date and time they were – ed and successfully downloaded. purchas – Customer name linked to the customer profile on record at the merchant entered on the merchant’s - Evidence that the customer password was re – e or application at the time of purchase websit Evidence that the merchant validated the card when the cardholder first – linked the card to the customer profile on record at the merchant First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 30 of 234

31 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the is 83. They supplied a suer for reason code cardholder letter stating he did not make nor authorize the mail order transaction. - You supply a signed delivery receipt and proof that the AVS response was U chargeback ? (service unavailable). What is the resolution of this Answer: The issuer failed to support AVS therefore the issuer is liable chargeback . Participating in the Address Verification Service can for the you protect against fraud cases. Scenario # 2 ason code 83. A cardholder A chargeback was received from the issuer for re he did not make nor authorize the reflecting letter was supplied ecommerce chargeback be transaction which appeared on his statement. How would this remedied? Answer: Verified by Visa is the only chargeback protection for ecom merce transactions. When you participate in Verified by Visa ou are authentication of the cardholder is verified though a password. Y when protected from chargebacks for reason code 75 and 83 nticate authentication is confirmed or when you have attempted to authe the cardholder’s identity through the Verified by Visa service. Scenario # 3 A chargeback was received from the issuer for reason code 83. The cardholder claims . A prior retrieval he did not make nor authorize the transaction in dispute request was submitted by the issuer to obtain a copy of the transaction receipt, however it was not fulfilled. Your rebuttal was received with documentation reflecting that the cardholder filled out an order for merchandise and requested it residence. Is there any recourse for this chargeback? to be shipped to their Yes Answer: First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 31 of 234

32 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Visa Fraud Monitoring Program 93 Transaction appeared on the Merchant Fraud Performance Program and the issuer had not or another reason. Effective 4/22/17 charged back the transaction f the Fraud Monitoring , Program has been expanded to include Automated Fuel Dispensers (AFD) . 120 - Time Limit from the date of identification by the Merchant calendar days F raud Performance Program Possible Cause ase in volume of reported fraud at a merchant location  Incre Visa will identify merchant locations with excessive fraud as part of the Note: “Merchant Fraud Performance Program” How to A void Implement point sale fraud prevention and internal fraud prevention - of -  policies to ensure your merchant location maintains acceptable fraud standards How to Defend  Provide a written rebuttal if you were not notified that you were identified in the Merchant Fraud Performance Program rgeback notification and respond by Follow all instructions provided on the cha  the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 32 of 2 34

33 Dispute Management Guide *Dispute G roup/Fraudulent Disputes No Cardholder Authorization MasterCard 37 Merchant processed a transaction in a card - present environment which the cardholder card imprint and/or cardholder signature is missing on the claims is unauthorized and a m or transaction receipt absent environment - erchant processed a transaction in a card without the cardholder ’ s permission central processing date the of the Time Limit – 120 calendar days from t ransaction Note : MasterCard will consider a dispute invalid for reason code 37 if the transaction was electronically captured at the point of sale (i.e. magnetically swiped, chip, or contactless). Issuers will maintain chargeback rights if the - tion was key transac entered or a result of an unattended transaction. Purchases of digital goods determined to be a result of “True Fraud” are permitted 37. as a chargeback under reason code Possible Cause Cardholder  se their statement reflects a does not recognize the transaction becau or different merchant name,  A transaction was made fraudulently by an unauthorized person and or The credit card was not swiped through the magnetic stripe reader,   A manual imprint was not obtained on the transaction receipt  F irst Installment Billing Payment that the cardholder claims is fraudulent, additional installments will be charged back under MasterCard 50  True Fraud related digital good purchase. The mobile device was stolen and unauthorized digital goods transactions were completed How to Avoid  legible transaction signed imprinted lways obtain a a If unable to swipe the card, receipt, verify information matches – Use proper imprinter for imprint of card when necessary Do not perform pencil rubbings of imprint – nt on the back of the receipt or imprint on blank transaction Do not impri – receipt a signature of the (if applicable) card and obtain  Obtain a m agnetic - s wipe Obtain authorization for all transactions   Obtain positive AVS response and ship merchandise to the confirmed a ddress for and all card not present transactions, Ensure merchant descriptor matches the name of the business and is displayed  correctly on the cardholder statement First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 33 of 234

34 Dispute Management Guide policies and procedures for suspicious Implement internal fraud prevention  activity  Ensure proper and timely response to all retrieval requests ecommerce  transactions Participation in the MasterCard Secure Code Program for Participation in the CVC2 Validation Program for key entered transactions in  place of an imprint Program will become a U.S. domestic only – MasterCard CVC2 Validation program Note: Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional details adequate controls are in place when the cardholder made the transaction Ensure  – disable all digital good purchases as a default Cardholder had the option to setting – The time period for digital good purchase did not exceed 15 minutes from the time the cardholder entered their account authentication credentials n the option to Cardholder was advised of the purchase and was give – confirm or cancel the purchase at the time of the transaction How to Defend a Supply  only when the authorization receipt and signed sales imprinted manually ce - and settlement records properly and consistently identified the transaction as fa - to face or , Key entered transaction with CVC2 Validation  – a U.S. domestic only program MasterCard CVC2 Validation Program is Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional Note: details nic Commerce transactions provide proof AVS For Mail Telephone and Electro  response of X or Y was received, with proof of delivery if available or other documentation showing the merchandise was shipped to the positive AVS confirmed address Note ed cardholder letter has been and an updat If this is a 2nd chargeback : received there is no further recourse Electronic Commerce transactions provide proof MasterCard Secure Code  or response was received, Supply explanation and transaction documentation when transaction dates,  merchant name and/o r location differ, or For Guaranteed No Show provide transaction documentation that includes  cardholder account number, cardholder name and confirmation number , or  Provide documentation to support the transaction was a Chip PIN Provide documentation suppo rting the transaction was made using a Chip  terminal, but was processed on a non - Chip card  Provide documentation supporting the transaction was processed using a Chip PIN preferring terminal on a Non - PIN preferring card  the chargeback notification and respond by Follow all instructions provided on the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 34 of 234

35 Dispute Management Guide adequate controls are in place when the cardholder made the Provide proof  transaction Cardholder had the option to disable all digital good purchases as a default – setting – or digital good purchase did not exceed 15 minutes from The time period f the time the cardholder entered their account authentication credentials Cardholder was advised of the purchase and was given the option to – on confirm or cancel the purchase at the time of the transacti The merchant may also provide “Compelling Evidence” to – Compelling Evidence support the cardholder participated in the transaction such as: A receipt, work order, or other document signed by the cardholder, substantiating  the goods or services. that the cardholder received Cardholder confirmation of registration to receive electronic delivery of goods or  services; or mails, faxes, or other written correspondence exchanged between the -  Letters, e merchant and cardholder. Transaction History for  ed online users for example, device type, IP register address, o r the time and date of purchase – This compelling evidence right does not extend to transaction completed by a cardholder visiting a merchant's online website as a guest or unregistered user Scenarios Chargeback Scenario #1 A The 37. card present chargeback was received from the issuer for reason code cardholder claims that a transaction was processed to their account which was not lve this authorized by them or any authorized user of the card. How do we reso chargeback ? roof that the transaction was electronically can supply You p Answer: or captured (Swiped, Chip, Contactless) and a copy of the sales draft. supporting documentation to prove participation in the CVC2 Validation Program and the sales d raft. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 35 of 234

36 Dispute Management Guide * Dispute Group/ Fraudulent Disputes MasterCard 40 Fraudulent Processing of Transactions Multiple transactions from a single card occurred at the same merchant location without the cardholder’s permission (card present transactions only) Note : The c ardholder admits that one transaction was valid and their cards were in their possession. central processing date of the transaction Time Limit - 120 calendar days from the Possible Cause were  Merchant processed m ultiple transactions and they or not voided ,  Transactions were fraudulently processed at merchant location How to Avoid  Ensure errors at point of sale (POS) are voided prior to batch out processing  Do not batch out transactions multiple times  for wipe s - magnetic obtain u being completed ensure yo are s If multiple transaction on each transaction receipt each transaction and obtain the cardholder’s signature  Educate staff on procedures to eliminate POS fraud How to Defend Evidence that fraudulent multiple transactions did not occur by providing both  t ransaction documents and a written rebuttal explaining the multiple transactions (Point out differences between transaction s such as; two different clerks, times of transactions, checkout lanes, different merchandise purchased, etc) Provide documentation s  howing the transaction was processed with a Chip PIN Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 The cardholder A chargeback was received from the issuer for reason code 40. d claims that they participated in one face - to - face transaction but they were charge two more times and their card you resolve still in their possession. How would is this case? Answer: By supplying documentation to show that the cardholder ; pa the rticipated in the transactions and approved all three sales chargeback can be represented. This does not guarantee that the chargeback will not be received a second time. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 36 of 234

37 Dispute Management Guide * Dispute Group/ Fraudulent Disputes MasterCard 49 Questionable Merchant Activ ity Transaction appeared on the MasterCard Global Security Bulletin and the issuer had not charged back the transaction for another reason. MasterCard has expanded this reason code to included confirmed coerced transaction authorized on or after October 14, 2016. Global Security Bulletin publication date the Time Limit - 120 calendar days from the central processing date of the transaction or 120 Days from - 30 calendar days from the date of the noncompliance letter Possible Cause Increase in volume of r eported fraud at a merchant location  Note s : – MasterCard will identify merchant locations with excessive fraud as part of the “Global Security Bulletin” MasterCard will consider a claim of coercion valid if the cardholder (or the cardholder’s – amily member) is coerced to complete a transaction because of threat of physical immediate f harm or the unlawful taking of properly if the cardholder refuses to complete the transaction How to A void of - Implement point  to ion policies sale fraud prevention and internal fraud prevent - ensure your merchant location maintains acceptable fraud standards  Participation in MasterCard Secure Code Program Seven “Visa/MasterCard Programs & Services” for additional Note: Please refer to Chapter details How to Defend were identified in the  Provide wr itten rebuttal if you were not notified that you or asterCard Global Security Bulletin, M  ommerce transactions, provide proof MasterCard Secure Code For electronic c response was received terCard Programs & Services” for additional Seven “Visa/Mas Note: Please refer to Chapter details  Provide proof the transaction was processed with a Chip PIN Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 49. A transaction was A char geback was received from the issuer for reason code processed to the cardholder s account which was listed on the ’ Global Security . How is this remedied? Bulletin chargeback Answer: are not you must supply documentation stating You on the ommerce transactions ulletin. Merchants processing electronic c security b First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 37 of 234

38 Dispute Management Guide should participate in MasterCard Secure Code and Address Verification Service. Note: Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional detai ls Developed by: 7 Rev: 04/1 First Data Payments Compliance Confidential & Proprietary to Fir of 38 st Data 234

39 Dispute Management Guide Fraudulent Disputes Dispute Group/ * MasterCard 63 Cardholder Does Not Recognize - Potential Fraud The cardholder claims that he or she does not recognize the transaction appearing on the transaction identify the faith effort to - ssuer made a good cardholder statement, and the i . for the cardholder (card not present transactions only) . The issuer submit a subsequent chargeback for the same reason code The issuer is able is then required to supply information to show why they have continued to chargeback the transaction, for example the cardholder claims that the transaction is fraudulent. - the central processing date 120 calendar days from of the transaction Time Limit Possible Cause  appears on that Cardholder does not recognize the merchant name and/or location their statement How to Avoid the most recognizable merchant name is presented to the customer, Ensure  , and including correct address and contact information The merchant descriptor matches the name of the business and is displayed  correctly on t he cardholder statement  For transaction that are processed via mail/telephone or the internet: or URL address to be and/ – Provide a valid customer service number transmitted with the transaction  - ransactions present t not - Participation in MasterCard Secure Code for card Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional details Note: Defend How to /information to assist cardholder ument copy of the transaction doc legible Supply  transaction, or in recognizing the commerce transactions, provide proof a valid MasterCard Secure For electronic  Code response was received Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional Note: details nd respond by  Follow all instructions provided on the chargeback notification a the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 39 of 234

40 Dispute Management Guide Chargeback Scenarios Scenario #1 The cardholder A chargeback was received from the issuer for reason code 63. has contacted their bank claiming that they do not recognize a transaction which ssuer assisted the cardholder in trying to remember nt. The i posted to their accou the transaction; however, the cardholder still does not recognize it. How is this resolved? chargeback Answer: You can supply transaction documentation for the cardholder to min review to deter his does not guarantee T e if they recognize the sale. that a second chargeback will not be received. 2 Scenario # as a issuer maintains the chargeback The above situation has occurred. The and supplies documentation to reflect that the cardholder is second chargeback claiming fraud. For Mail Telephone and Electronic Commerce transactions Answer: provide proof AVS response of X or Y was received, with proof of delivery if available or other documentation showing the merchandise was proof e AVS confirmed address the positiv shipped to provides or only) ( . ecommerce MasterCard Secure Code response was received Please refer to reason code 37 for additional information on Note: avoidance and defense recommendations. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 40 of 234

41 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Card Master Chip Liability Shift 70 Th is reason code is used when the cardholder states they did not participate in the transaction and both the issuer and acquirer are located in a country or region that has adopted a domestic or international Chip Liability Sh ift Program. This reason code can also be used if a fraudulent transaction resulted from the use of a counterfeit card at a non - Chip capable terminal, and the validly - issued card, was an EMV Chip Card. - Time Limit the sing date of the transaction central proces 120 calendar days from Possible Cause A transaction was made fraudulently by an unauthorized person  How to Avoid Implement internal fraud prevention policies and procedures for suspicious  activity Obtain authorization for all transactions   roper and timely response to all retrieval requests Ensure p  Invest into the chip technology Defend How to  or , Provide proof that your terminal is Chip capable Provide documentation supporting the transaction was on a Chip card and was  authorized online cumentation supporting this was not a Chip transaction and the  Provide do transaction was authorized online Provide documentation supporting the issuer authorized the transaction as a result  of a technical fallback pport; if a partial credit  If credit was processed, provide documentation to su issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 41 of 234

42 Dispute Management Guide Fraudulent Disputes Dispute Group/ * MasterCard Chip/PIN Liability Shift 71 Th icipate in the is reason code is used when the cardholder states they did not part transaction and the card is no longer or has never been, in the possession of the cardholder. This reason code may also be used if a fraudulent transaction resulted from - reading - preferring card at a magnetic stripe ly terminal, or at a the use of a hybrid PIN on - - capable terminal not equipped with a PIN pad capable of checking the PIN offline. Chip This reason code may also be used if both the issuer and the acquirer are located in a l Chip/PIN liability shift country or region that has adopted a domestic or intraregiona program. of the transaction - Time Limit central processing date the 120 calendar days from Possible Cause  A transaction was made fraudulently by an unauthorized person How to Avoid nd procedures for suspicious  Implement internal fraud prevention policies a activity Obtain authorization for all transactions   Ensure proper and timely response to all retrieval requests  Invest into the chip/PIN technology How to Defend  roof that your terminal is Chip/PIN or capable, Provide p Provide d ocumentation supporting the transaction was a Chip card and was  authorized online and proof the transaction was completed with a Chip and PIN.  Provide documentation supporting the transaction was a Chip transaction and authorized online and proof the trans action was completed with Chip while the card was not PIN preferring. Provide documentation supporting the transaction was a Chip transaction and  authorized online and was the result of a CVM (Cardholder Verification Method) fallback.  Provide documentation supporting this was not a Chip transaction and the transaction was authorized online Provide documentation supporting the issuer authorized the transaction as a result  of a technical fallback partial credit  If credit was processed, provide documentation to support; if a issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 42 of 234

43 Dispute Management Guide Frequently Asked Questions My business is mainly completed over the internet. Is there anything that can protect me against fraud? Answer: sitive AVS response and ensuring merchandise is Obtaining a po shipped to the same address will deter potential fraud; however the best solution is to enroll in the Verified by Visa program to be protected Card. against fraud committed on a Visa card and Secure Code for Master Sometimes the cardholder will present their credit card for payment and it will not swipe through our terminal. How can I protect myself if the magnetic swipe on the card is bad? Imprint the front of the credit card on the bottom of the Answer: ansaction receipt tr that the cardholder signs. This can be completed with a manual imprinter. Avoid pencil/crayon rubbings as these will not be The CVV2, for Visa, and CVC2, for considered a valid imprint. al imprint when the MasterCard, programs are a replacement for a manu card number is manually entered for face to face transactions. Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional details. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 43 of 234

44 Dispute Management Guide Reason Codes and Description 4752 AA Does Not Recognize 7010 UA01 Fraud Card Present Transaction Fraud Card Not Present Transaction 7030 UA02 4866 UA05 Fraud Chip Card Counterfeit Transaction 4867 UA06 Fraud Chip and PIN Transaction First Data Payments Compliance Developed by: 7 Rev: 04/1 44 st Data Confidential & Proprietary to Fir of 234

45 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Discover 4752 AA Does Not Recognize – The cardholder claims that he or she does not recognize the transaction appearing on the cardholder statement, and the issuer made a good faith effort to identify the transaction for the cardholder. om the processing date of the transaction. Time Limit 120 calendar days fr – Note : This reason code cannot be reversed if the merchant failed to respond to a ticket retrieval request. Possible Cause The cardholder does not recognize a charge or credit (other than ATM  transaction) How t o Avoid Ensure the most recognizable merchant name is presented to the customer,  and including correct address and contact information, Ensure the merchant descriptor matches the name of the business and is displayed  correctly on the cardholder statement  For transactions that are processed via mail/telephone or the internet: – Provide a valid customer service number and/or URL address to be transmitted with the transaction Respond to all retrieval requests within the required timeframe with all  ransaction documentation appropriate t  Supply clear and legible copies of the proper transaction receipt for all retrieval requests How to Defend Supply legible copy of the transaction receipt/information to assist the cardholder  in recognizing the transaction – Informat ion should include a description of the merchandise or services Sales draft signed by cardholder including a cash advance or cash over  Evidence cardholder received cash in a cash advance or cash over transaction in  the amount billed to the account ence that a credit was issued to the account to correct an error  Evid Transaction documentation including evidence of an imprint of the card and/or  signature or PIN entry First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 45 of 234

46 Dispute Management Guide Chargeback Scenarios Scenario #1 invoice showing the You fulfilled a Ticket Retrieval request with a signed cardholder ordered merchandise to be delivered to their home. A chargeback was received from the Issuer for reason code AA stating the cardholder does not recognize the transaction. The invoice you supplied has no details of the merchandise ordered. You submit the same documentation that was submitted at the time of the retrieval request. How would this case be resolved? nswer A The reversal would be denied. You would need to supply : detailed information showing exactly wha t merchandise the cardholder ordered. You should also supply signed proof of delivery showing that the merchandise was received by the cardholder. Scenario #2 You did not fulfill a Ticket Retrieval request with a sales draft. A chargeback was ved from the Issuer for reason code AA stating the cardholder does not recei recognize the transaction. You submit the sales draft with the details of the How would this case be resolved? transaction. Answer d not respond : The reversal would be denied since you di request appealable chargeback. - to the initial ticket retrieval request. This is a non First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 46 of 234

47 Dispute Management Guide Fraudulent Disputes Dispute Group/ * - Fraud Card Present Transaction Discover 7010 UA01 dholder Merchant processed a transaction in a card - present environment which the car cardholder signature is missing on the card imprint and/or claims is unauthorized and a Effective 4/22/17 transaction receipt. 120 calendar days from the processing date of the transaction. Time Limit – t provide documentation in response to Note: If an Acquirer or Merchant does no - appealable a Ticket Retrieval Request, an Issuer may initiate a final and non Chargeback. Possible Cause  The credit card was not swiped through the magnetic stripe reader, or entered - ccount information was key  A manual imprint was not obtained when a Cardholder signature was not obtained on the transaction receipt  Failed to identify card not present transaction as MO/TO or ecommerce  Failure to respond properly to a prior retrieval request   participate in a Card Present Card Transaction Cardholder did not approve or How to Avoid  If unable to swipe the card, always obtain a legible signed imprinted transaction receipt, verify information matches – Use proper imprinter for imprint of card when necessary – Do not perform pencil rubbings of imprint – Do not imprint on the back of the receipt or imprint on blank transaction receipt Magnetic Swipe card for each transaction and obtain signature -   Implement internal fraud prevention policies and procedures for suspicious activity Ensure  proper and timely response to all retrieval requests How to Defend  Supply a signed, magnetic swiped or imprinted transaction receipt  Provide a valid, legible Transaction Receipt for a keyed Card Transaction that hat Merchant was not required by the includes a valid signature and indication t Operating Regulations to obtain a Card imprint because Merchant submitted CID with the Authorization Request  Compelling evidence including any of the following regarding the dispute: – Letters, e - mails, photographs, faxes , or other written correspondence exchanged between the merchant and the cardholder – Receipts, work orders, or other documents signed by the cardholder, substantiating that the cardholder received the goods or services store” Card Not Present Trans actions – “Site to cardholder signature on - - – - the pick up form or copy of cardholder identification First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 47 of 234

48 Dispute Management Guide Proof of delivery or evidence that the goods or services were delivered as – directed by the cardholder Follow all instructions provided on the chargeback notification an d respond by  the due date provided f the Issuer uses the UA01 Reason Code to initiate a Chargeback for Note: I failure to respond to a Ticket Retrieval Request the Merchant does not have the - right to respond to the Chargeback Request and such Chargeback is final and non appealable. Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code UA01. The - cardholder states that they engaged in the face face transaction and gave you - to his account number for verification purp oses only; however, the account was billed. How would this chargeback be remedied? Answer: You would need to provide proof that the cardholder authorized or imprinted the transaction on their credit card, by supplying a swiped ecting the cardholder’s signature. refl transaction receipt Scenario # 2 A chargeback was received from the issuer for reason code UA01. The cardholder states that their card was stolen and provided a list of transactions that argeback? they did not authorize. What would remedy this ch or imprinted magnetic stripe read transaction receipt with the A Answer: cardholder’s signature. Scenario #3 You did not fulfill a Ticket Retrieval request with a sales draft. A chargeback was received from the Issuer for reason code UA01 stating the cardholder did not participate in the transaction. You submit the sales draft with the details of the transaction. How would this case be resolved? : be denied since you did not respond The reversal request would Answer appealable chargeback. - et retrieval request. This is a non to the initial tick First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 48 of 234

49 Dispute Management Guide Fraudulent Disputes * Dispute Group/ UA02 - Fraud Card - Not - Present Transaction Discover 7030 - absent environment without cardholder Merchant processed a transaction in a card permission or with a fict itious account number. Time Limit – 120 calendar days from processing date of the transaction. Note: If an Acquirer or Merchant does not provid a  e documentation in response to - ate a final and non e Ticket Retrieval Request, an Issuer may initi appealabl Chargeback. New representment opportunity for chargebacks received on transactions  processed with a Mobile Payment Device Possible Cause A transaction was made fraudulently by an unauthorized person   The Issuer determines that the Merchant did not verify the numeric portion of the Cardholder’s billing address and ZIP code using AVS for a Card Present Card Sale or a Card Not Present Card Sale with a Card issued in the U.S. and a Card CID and/or not T ransaction conducted in the U.S o btain was an AVS match the Authorization included with Request How to Avoid  Electronic Commerce transactions provide proof cardholder participates in , ProtectBuy Secure Program response was received or  (bill to Obtain positive AVS and ship merchandise to the confirmed address only and ship to address should match), and and Obtain authorization for all transactions,  Implement internal fraud prevention policies and procedures for suspicious  activity Ensure merchant descriptor matches the name of the business and is displayed  correctly on the cardholder statement Respond to all retrieval requests within the required timeframe with all  appropriate transaction documentation Submit the CID with the authorization request  Defend How to Provide valid Proof of Delivery  nsmitted with the authorization request and a positive AVS Provide CID tra  response was received  Provide valid, legible documentation that includes a valid authorization code and brief description of the goods or services including the quantity purchased First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 49 of 234

50 Dispute Management Guide ce including any of the following regarding the dispute: Compelling eviden  mails, photographs, faxes, or other written correspondence - Letters, e – exchanged between the merchant and the cardholder Receipts, work orders, or other documents signed by the cardholder, – substantiat ing that the cardholder received the goods or services “Site cardholder signature on – - to - store” Card Not Present Transactions – - the pick up form or copy of cardholder identification Proof of delivery or evidence that the goods or services were delivered as – directed by the cardholder – Any of the following:  Cardholder confirmation of registration to receive electronic delivery of goods or services - Cardholder’s e  mail or IP address, date and time of download, e receipt of description of goods downloaded or log documenting th downloaded material on or after the transaction date. Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code UA02. They supplied information stating the cardholder did not make nor authorize the mail - o rder transaction. You supply a signed delivery receipt and proof that a positive AVS response was obtained. What is the resolution of this chargeback? Answer: The from you would be a valid information supplied representment; however, this does not gu arantee that a subsequent pre - arbitration case would not be received. Scenario #2 You did not fulfill a Ticket Retrieval request with a sales draft. A chargeback was received from the Issuer for reason code UA02 stating the cardholder did not icipate in the transaction. You submit the sales draft with the details of the part transaction. How would this case be resolved? Answer: The reversal would request be denied since you did not respond ppealable chargeback. to the initial ticket retrieval request. This is a non - a First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 50 of 234

51 Dispute Management Guide Fraudulent Disputes Dispute Group/ * Discover 4866 - UA05 Fraud Chip Card Counterfeit Transaction Th is reason code is used when the cardholder states they did not participate in the transaction and both the issuer and acquirer are located in a country or region that has adopted a domestic or international Chip Liability Shift Program. This reason code can also be used if a fraudulent transaction resulted from the use of a counterfeit card at a non - Chip capable terminal, and the vali dly - issued card, was an EMV Chip Card. date of the transaction. calendar days from processing 120 – Time Limit UA01 is fatal when the Acquirer or Merchant fails to respond to a retrieval Note: the Cardholder Transaction Documentation Request due to - request code 03 - Transaction Document Request for Fraud Analysis for Potential Dispute or 04 Fraud. Possible Cause A transaction was made fraudulently by an unauthorized person  How to Avoid Implement internal fraud prevention policies and procedures for  suspicious activity  Obtain authorization for all transactions Ensure proper and timely response to all retrieval requests  Invest in the chip technology  Defend How to  Provide proof that your terminal is Chip capable, or  Provide documentation supporting the transaction was on a Chip card and was authorized online Provide documentation supporting this was not a Chip transaction and the  transaction was authorized online Provide documentation supporting the issuer authorized the transaction as a result  nical fallback of a tech If credit was processed, provide documentation to support; if a partial credit  issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 51 of 234

52 Dispute Management Guide Fraud Chip and PIN Transaction UA06 - 4867 Discover Th is reason code is used when the cardholder states they did not participate in the transaction and the card is no longer or has never been, in the possession of the cardholder. This reason code may also be used if a fraudulent transaction resulted from - ferring card at a magnetic stripe pre the use of a hybrid PIN only terminal, or at a - - reading capable terminal not equipped with a PIN pad capable of checking the PIN offline. Chip - This reason code may also be used if both the issuer and the acquirer are located in a country or region that has adopted a domestic or intraregional Chip/PIN liability shift program. - Time Limit 120 calendar days from of the transaction central processing date the Note: UA01 is fatal when the Acquirer or Merchant fails to respond to a retrieval Transaction Documentation Request due to the Cardholder code 03 - request Transaction Document Request for Fraud Analysis for Potential - Dispute or 04 Fraud. Possible Cause A transaction was made fraudulently by an unauthorized person  How to Avoid Implement inter  nal fraud prevention policies and procedures for suspicious activity  Obtain authorization for all transactions  Ensure proper and timely response to all retrieval requests Invest into the chip/PIN technology  Defend How to  or Chip/PIN capable, Provide proof that your terminal is Provide documentation supporting the transaction was a Chip card and was  authorized online and proof the transaction was completed with a Chip and PIN.  Provide documentation supporting the transaction was a Chip transaction and author ized online and proof the transaction was completed with Chip while the card was not PIN preferring. Provide documentation supporting the transaction was a Chip transaction and  authorized online and was the result of a fallback.  Provide documentation suppo rting this was not a Chip transaction and the transaction was authorized online Provide documentation supporting the issuer authorized the transaction as a result  of a technical fallback  al credit If credit was processed, provide documentation to support; if a parti issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 52 of 234

53 Dispute Management Guide Reason Codes and Description Missing Imprint F10 – Multiple ROC’s F24 effective 4/22/17 F29 Card Not Present EMV Counterfeit F30 EMV Lost/Stolen/Non Received F31 First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 53 of 234

54 Dispute Management Guide Dispute Group/Fraud * Missing AMEX F10 Imprint Cardholder claims that they did not participate in the charge and the merchant has not a copy of an imprint of the card. provided from the processing date of the transaction. calendar days 20 – Time limit 1 : Notes Not applicable to Card Not Present transactions  Qualified Keyed No Imprint Program transactions are excluded  Wallet Payments Not applicable to Digital  Possible Cause  or The credit card was not swiped through the magnetic stripe reader,  entered - A manual imprint was not obtained when account information was key  Failed to identify Card Not Present transaction as MO/TO or eCommerce  Failure to respond properly to a Retrieval Request How to Avoid  transaction signed imprinted legible lways obtain a a If unable to swipe the card, receipt, verify information matches Use proper imprinter for imprint of card when necessary – – Do not perform pencil ru bbings of imprint Do not imprint on the back of the receipt or imprint on blank transaction – receipt  - Swipe card for each transaction and obtain signature Magnetic Implement internal fraud prevention policies and procedures for suspicious  activity  Ensure pro per and timely response to all Retrieval Requests How to Defend  Supply sales draft with a legible imprint, signature or PIN, or Follow all instructions provided on the chargeback notification and respond by  the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 54 of 234

55 Dispute Management Guide Chargeback Scenarios Sc enario #1 A chargeback was received from AMEX for reason code F10. The cardholder face transaction and gave you his account states that they engaged in a face to - - number for verification purposes only; however, the account was billed. How would this charg eback be remedied? You would need to provide proof that the Answer: authorized cardholder the transaction on their credit card, by supplying proof that the card was electronically captured (Swiped, Chip, and Contactless) or manually imprinted receipt ion transact , reflecting the ’s signature. cardholder 2 Scenario # face merchant received a chargeback from AMEX for reason code F10. to - - A face The cardholder states the transaction was not done by them. What would remedy this chargeback? Proof Answer: that the transaction was electronically captured (Swiped, Chip, Contactless) and a copy of the sales draft. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 55 of 234

56 Dispute Management Guide roup/Fraud G *Dispute Effective 4/22/17 AMEX F24 Multiple ROC’s aving Cardmember claims that not all transactions are valid. Cardholder acknowledges h transacted business with the Program Merchant either in the past or during the same time frame as when the suspect transactions were created. Cardmember further denies knowledge of the suspect transactions themselves. calendar da 120 – Time limit from the processing date of the transaction. ys Possible Cause  Cardholder does not recognize the transaction because their statement reflects a different merchant name, or and A transaction was made fraudulently by an unauthorized person  Multiple transact ions were processed  How to Avoid  lways obtain a legible signed imprinted transaction a If unable to swipe the card, receipt, verify information matches Use proper imprinter for imprint of card when necessary – Do not perform pencil rubbings of imprint – imprint on the back of the receipt or imprint on blank transaction Do not – receipt - swipe of the card and obtain a signature (if applicable)  Obtain a magnetic Obtain authorization for all transactions   Ensure merchant descriptor matches the name of the business and is displayed correctly on the cardholder statement  Implement internal fraud prevention policies and procedures for suspicious activity  Ensure proper and timely response to all Retrieval Requests How to Defend or  Supply imprinted transaction receipt, Suppl y explanation and transaction documentation when transaction dates,  merchant name and/or location differ, or  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 A card pr esent chargeback was received from AMEX for reason code F2 4. The ; ere w processed to their account cardholder claims that multiple transaction s however at least one was not authorized by them or any authorized user of the geback? card. How do we resolve this char transaction roof that all p You can supply Answer: are valid. s First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 56 of 234

57 Dispute Management Guide * Dispute Group/ Fraud Card Present AMEX F29 Not cardholder The t interne denies participating in a mail order, telephone order, or transaction – from 120 the processing date of the transaction. Time limit calendar days Notes:  - Not applicable to Digital Wallet Application initiated Transactions Possible Cause A transaction was made fraudulently by an unauthorized person, and/or  or on, An authorization was not obtained for the transacti  Cardholder does not recognize the transaction because their statement reflects a  different merchant name How to Avoid Obtain authorization for all transactions,  and Implement internal fraud prevention policies and procedures for suspicious  activity  Ensure merchant descriptor matches the name of the business and is displayed correctly on the cardholder statement Respond to all Retrieval Requests within the required timeframe with all  appropriate transaction documentation Credit cards are not t o be used to recover funds from previous Note: chargeback’s, bad checks or any other incident where a financial loss occurred How to Defend Proof that the cardholder participated in the charge (e.g. billing authorization,  usage details, contract), Card Member’s billing address, proof of delivery to the or and the merchant did not the CID ate Proof that the merchant attempted to valid  receive a response or the merchant received an “unchecked” response and shipped Proof that the merchant validated the address via Authorization  goods to the validated address  Proof that a Credit which directly offsets the Disputed Charge has already been processed  Proof that the transaction contains a shipping address that matches a previously transaction used shipping address from an undisputed Follow all instructions provided on the chargeback notification and respond by  the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 57 of 234

58 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from AMEX for reason code F29. The cardholder ize the transaction in dispute. Your rebuttal claims he did not make nor author was received with documentation reflecting that the cardholder filled out an order for merchandise and requested it to be shipped to their residence. Is there any recourse for this chargeback? the information will be supplied to AMEX for review. Yes, Answer: First Data Payments Compliance Rev: 04/1 7 Developed by: of 58 st Data Confidential & Proprietary to Fir 234

59 Dispute Management Guide EMV Fraud Shift AMEX F30 Th is reason code is used when the cardholder states they did not participate in the transaction and both the issuer and acquirer are located in a country or region that h as adopted a domestic or international Chip Liability Shift Program. This reason code can also be used if a fraudulent transaction resulted from the use of a counterfeit card at a non - Chip capable terminal, and the validly - issued card, was an EMV Chip Card . from the processing date of the transaction. calendar days – Time limit 120 Notes: initiated Transactions - Not applicable to contactless and Digital Wallet Contactless  Possible Cause A transaction was made fraudulently by an unauthorized person  to Avoid How  Implement internal fraud prevention policies and procedures for suspicious activity  Obtain authorization for all transactions  Ensure proper and timely response to all retrieval requests Invest in the chip technology  How to Defend  Provide proof th at your terminal is Chip capable, or  Provide documentation supporting the transaction was on a Chip card and was authorized online Provide documentation supporting this was not a Chip transaction and the  transaction was authorized online  Provide documentat ion supporting the issuer authorized the transaction as a result of a technical fallback  If credit was processed, provide documentation to support; if a partial credit issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 59 of 234

60 Dispute Management Guide - Lost Stolen/Non AMEX EMV Fraud Liability Shift F31 – Received is reason code is used when the cardholder states they did not participate in the Th transaction and the card is no longer or has never been, in the possession of the y also be used if a fraudulent transaction resulted from cardholder. This reason code ma - preferring card at a magnetic stripe - the use of a hybrid PIN reading - only terminal, or at a - capable terminal not equipped with a PIN pad capable of checking the PIN offline. Chip This reason code may also be used if both the issuer and the acquirer are located in a country or region that has adopted a domestic or intraregional Chip/PIN liability shift program. calendar days Time limit – from the processing date of the transaction. 120 Notes: - applicable to contactless and Digital Wallet Contactless Not  initiated Transactions, and charges that qualify under the No Signature/No PIN Program Possible Cause  A transaction was made fraudulently by an unauthorized person How to Avoid  raud prevention policies and procedures for suspicious Implement internal f activity  Obtain authorization for all transactions  Ensure proper and timely response to all retrieval requests Invest into the chip/PIN technology  How to Defend Provide proof that your terminal is Chip or  /PIN capable, Provide documentation supporting the transaction was a Chip card and was  authorized online and proof the transaction was completed with a Chip and PIN. Provide documentation supporting the transaction was a Chip transaction and  authorized online and proof the transaction was completed with Chip while the card was not PIN preferring.  Provide documentation supporting the transaction was a Chip transaction and authorized online and was the result of a fallback. this was not a Chip transaction and the Provide documentation supporting  transaction was authorized online Provide documentation supporting the issuer authorized the transaction as a result  of a technical fallback edit  If credit was processed, provide documentation to support; if a partial cr issued, provide documentation to support why only a partial credit was processed First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 60 of 234

61 Dispute Management Guide American Express Oil Protection Program Fraud The Oil Fraud Protection Program addresses counterfeit fraud Chargebacks at fuel pump Customer Activated Terminals (CA Ts). Under this program, American Express will not exercise Chargeback for the amount of the Charge up to $100 provided that both the Establishment and each Charge meet the following criteria:  The Authorization request meets the data requirements listed i n Section 4.3, “Customer Activated Terminals”  The Authorization request must include the correct Merchant Category Code (MCC) for “automated fuel dispensers” (5542), The Issuer determines that the Card used to initiate the Charge was counterfeit,  and The E stablishment qualified for Chargeback protection under the program at the  time of the Charge, as follows: For an Establishment to qualify under the Oil Fraud Protection Program –  Must authorize and submit Transactions under the unique ID) assigned to the Establishment, and Merchant Number (Seller  Must have, in a given month, a counterfeit fraud to Charge volume ratio below 1%. An Establishment whose counterfeit fraud to Charge volume ratio rises to or exceeds 1% in a given month will l Fraud Protection Program until the ratio not qualify under the Oi falls below 1% for three (3) consecutive months. Notwithstanding the foregoing, the Oil Fraud Protection Program  does not apply to Merchants that submit less than one Merchant ges from multiple Number (Seller ID) consolidated Char Establishments (i.e., central submitters) or to the Establishments that those Merchants submit on behalf of. American Express offers a variety of fraud prevention tools which may enable Merchants etain eligibility for the program. to reduce fraud in order to qualify and r First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 61 of 234

62 Dispute Management Guide - Non Receipt of Information Reason Codes and Description Cardholder Does Not Recognize – 75 7 Rev: 04/1 Developed by: First Data Payments Compliance 62 234 of st Data Confidential & Proprietary to Fir

63 Dispute Management Guide Receipt of Information - Non Dispute Group/ * 75 Visa Not Recognize Transaction Cardholder Does the The cardholder claims that he or she does not recognize transaction appearing on the cardholder statement, and the issuer made a good faith effort to identify the transaction for the cardholder. Time limit the 120 calendar days from - of the transaction central processing date : s Note Visa will consider a dis  pute invalid for reason code 75 if the transaction was electronically captured at the point of sale (i.e. magnetically swiped, chip, or - contactless). Issuers will maintain chargeback rights if the transaction was key entered or a result of an unattended tr This note is not applicable to ansaction. transactions involving Visa Europe (Issuer or Merchant in Europe) Visa Europe . will be included in considering a dispute invalid if the transaction was electronically captured at the point of sale. Possible Cause that appears on Cardholder does not recognize the merchant name and/or location  their statement How to Avoid Ensure the most recognizable merchant name is presented to the customer,  including correct address and contact information, and ptor matches the name of the business and is displayed  The merchant descri correctly on the cardholder statement  For transactions that are processed via mail/telephone or the internet: P to be and/or URL address rovide a valid customer service number – transmitted with the trans action  transactions ecommerce for Participation in the Verified by Visa program Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional Note: details How to Defend  Supply a copy of the transaction receipt or a detailed descript ion of the goods or services purchased by the cardholder, and if applicable, additional information or transaction data that was not required in the clearing record, or response was received Proof that a valid ecommerce V  erified by Visa for transactions. ote: Please refer to Chapter Seven “Visa/MasterCard Programs & Services” for additional N details  Follow all instructions provided on the chargeback notification and respond by the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 63 of 234

64 Dispute Management Guide Scenarios Chargeback Scenario #1 A chargeback was re The cardholder 75. ceived from the issuer for reason code ssuer transaction. The i has contacted their bank claiming they do not recognize a has made an effort to identify the transaction, but the cardholder still did not recognize it. How do you resolve this chargeback ? the details of the Supplying documentation to show Answer: transaction is a valid remedy. Be aware that this remedy does not guarantee that another chargeback will not be received for a different reason. Scenario #2 ted a retrieval request to assist the cardholder in recognizing the The issuer initia transaction prior to submitting a chargeback on a European issued card . The retrieval request was not fulfilled and the cardholder continues to claim that they do not recognize the transa ction. A chargeback was received from the issuer for reason code 75. Your rebuttal was received with a signed and imprinted transaction receipt including the merchandise which was purchased. Can this chargeback be remedied? Yes Answer: First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 64 of 234

65 Dispute Management Guide Authorization Issues Proper authorization procedures were not followed and valid authorization was not . obtained MasterCard determined that there is no need to distinguish among three separate authorization MasterCard odes 07, 08 and 12. related chargebacks, specifically reason c – strongly recommends relying on message reason code 08 as the primary reason code to address all authorization related disputes. Until MasterCard decides to remove the inue to document each code separation between the three codes, this guide will cont separately. Reason Codes and Description Reason Codes and Description ount Number on Exception File Acc – 70 – Warning Bulletin File 07 Declined Authorization – 71 - Authorization 08 Related Dispute – – 72 No Authorization Account Number Not on File – 12 Expired Card – 73 MasterCard condensed reason  codes 07 and 12 into 08; however - Matching Account Number 77 – Non MasterCard will continue to allow 78 – Service Code Violation the issuer to use the three separate codes Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data 234 65 of

66 Dispute Management Guide Authorization Errors Dispute Group/ * 70 Visa International Only Account Number on Exception File Merchant did not check the card recovery bulletin or exception file for a transac tion with an amount that was below the floor limit Note: Excludes U.S. Domestic Transactions. . Visa will implement changes to support revised floor limits in all Visa International/Europe countries, except Hong Kong, Japan, Nigeria and Taiwan. from 75 calendar days – Time limit of the transaction central processing date the Possible Cause  Transaction was processed without electronic authorization, voice approval, or account verification or exception file was not checked, ed a declined response swiped, receiv Card was magnetic  and the transaction was processed instead of asking for another form of payment How to Avoid Ensure all transactions are magnetically swipe read and authorized,  or If magnetic stripe reader is down, call voice center for authorizatio  obtain an n and the transaction receipt imprint of credit card on How to Defend receipt Provide a signed, magnetic swiped or imprinted and authorized transaction  Provide documentation supporting the transaction was processed using a Chip  roperly authorized terminal and was p  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 70 due to the fact that A chargeback was received from the issuer for reason code the transaction wa did not receive an authorization. you s above the floor limit and How would this chargeback be resolved? The only resolution for this situation would be to provide proof Answer: that an authorization was granted for the transaction that was above the flo or limit . First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 66 of 234

67 Dispute Management Guide * Dispute Group/ Authorization Errors Visa 7 1 Declined Authorization Merchant completed a transaction after receiving a “decline” response . from 75 calendar days – Time limit of the transaction central processing date the Possible Cause  was received; however, the transaction was still cline authorization response De processed How to Avoid  If a decline response is received do not attempt to swipe the card again, obtain another form of payment  prior to processing all transactions, and was received valid authorization Confirm Ensure all staff members are aware of your authorization processing procedures  including voice authorization requirements Do Not:  equest subsequent authorization on same day after a “Decline”, “Pickup” or R or ot received. (you may attempt for a lesser - approval response “Referral” her non amount , if the terms of the transaction change )  Force sale a transaction after a “Decline” response is received  Split transaction amount into separate smaller transaction amounts to obtain uthorizations after a “Decline” response is received a Split tender is only permitted for multiple different payment methods Note:  “Key Enter” or call to obtain a “Voice Authorization” after a “Decline” response is received  Contact the c to obtain an authorization ssuer directly ard i  “Fish” for authorization by lowering the amount or altering any of the transaction elements How to Defend  alid authorizati on was obtained on the transaction date for Provide proof that a v or card present transactions, wit hin seve n calendar days prior to the transaction ecommerce date for transaction s MO/TO or  Provide documentation to support the transaction was completed via Chip with offline authorization. : Not applicable to the U.S. region. Note  For LAC region: H&C Merchant ensu re approval is received upon patient’s in date. - check  Follow all instructions provided on the chargeback notification and respond by the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 67 of 234

68 Dispute Management Guide Chargeback Scenarios Scenario #1 71; cl the aiming that A chargeback was received from the issuer for reason code transaction was declined. This would be a valid debit if a decline response was received Answer: and the transaction was subsequently processed . When a declined response is received do not process the transaction and ask for another m of payment. for First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 68 of 234

69 Dispute Management Guide * Dispute Group/ Authorization Errors Visa 72 No Authorization Merchant did not obtain proper a uthorization for a transaction. 75 calendar days tion of the transac central processing date the from Time limit – Possible Cause or code  Transaction was processed without obtaining a valid authorization , reversed, however the Valid authorization was granted and subsequently  or transaction was processed without receiving additional authorization,  Automated Fuel D ispenser transaction received the $1.00 status check approval; exceeded the , or maximum threshold amount the transaction however,  Merchant in the tipping industry received an authorization; however, the final ent allowed amount that was processed exceeded the tip perc If the merchant obtains authorization using invalid or incorrect transaction data  How to Avoid Obtain a valid authorization prior to processing the transaction   Automated Fuel Dispenser Merchants – sure that the transaction Obtain the status check approval for $1.00 and en maximum threshold amount does not exceed the Amounts for Automated Fuel Dispenser Threshold Visa Domestic/MCC 5542 Self Service Terminal -  $150.00 Visa Fleet Cards  All other cards $75.00  All other cards $100.00 Visa International/MC C 5542 - Self Service Terminal  All card types $ 75 .00 Notes: – If a decline is received do not attempt to swipe the card again, obtain another form of payment If a merchant receives a partial authorization, only the amount exceeding the partial – mitted to be charged back amount is per Call voice center for authorization and make an imprint of credit card on – transaction document with the cardholders signature if magnetic swipe reader is down or if a referral response is received – Tipping industry - If final amount exceeds amount authorized by more than the percentage allowed, you must authorize the additional amount  Restaurants, Taxicabs, Limousines, Bars, Taverns, Beauty, Barber Shops, Health Spas and Beauty Spas authorization amount plus 20%  Travel and Entertainm ent authorization amount plus 15%  $75 USD 15% or – Car Rental only whichever is greater First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 69 of 234

70 Dispute Management Guide How to Defend on was obtained on the transaction date for alid authorizati Provide proof that a v  within seven calendar days prior to the or card present transactions, transaction date for MO/TO or ecommerce transactions Provide documentation supporting the transaction was Chip or Chip PIN and was  a fallback to magnetic swipe or key entered and authorization was obtained.  For LAC Region: H&C Merchant ensure an approval is received upon patient’s check - in date Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 72 because an ization was not requested or received for a transaction. author ived to Without valid proof that an approval code was rece Answer: process the transaction, account. your this would be a valid chargeback to - Scenario #2 Automated Fuel Dispenser A chargeback was 72 received from the issuer for reason code on a Visa Domestic card type Consumer . The original transaction was $80.00 and the merchant obtained a status check approval for $1.00. The chargeback is valid for the difference of $5.00 since the Answer: . maximum threshold amount of $75.00 saction exceeded the tran The chargeback is the Issuers liability Restaurant - Scenario #3 A chargeback was received from the issuer for reason code 72 because the posted transaction amount exceeded the authorized amount. Th e merchant obtained an authorization for $20.00 and posted the transaction in the amount of $22.50, which included the tip left by the cardholder. Answer: The chargeback is invalid due to the fact that the tip amount did allowed for restaurants. variance not exceed the 20 percent Present Transaction - Not - 4 Card Scenario # - A chargeback was received from the issuer for reason code 72 claiming that a valid authorization was not obtained to support the transaction . The merchant obtained an authorization for $ 150.00; processed one transaction for $75.00 and two days later posted a second transaction using the same authorization code for . $75.00 not The chargeback is invalid due to the fact that the card - - Answer: t present ransactions; which did not authorization was utilized for multiple exceed the full amount of the original authorization. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 70 of 234

71 Dispute Management Guide * Dispute Group/ Authorization Errors 73 Expired Visa Card A merchant completed a expired prior to the transaction date ard that c ransaction with a t and the merchant did not obtain an authorization. 75 calendar days central processing date from of the transaction Time lim i t - the Possible Cause the Expiration date on card was not valid at the time of the transaction  How to Avoid  ons, Obtain a valid authorization for all transacti and and utilize the expiration transaction receipt If key entered, imprint the card on the  date on the card, and Validate card is not expired by checking the expiration date on the card presented  for the transaction  For card not present transactions, the expiration date given by the cardholder is considered correct How to Defend  Provide proof that the card was not expired on the transaction date, and or Ensure a valid authorization was obtained,   initiated and authorized off - hip C If the transaction was line, provide proof Provide documentation supporting the transaction was a Chip transaction  Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 73 due to the fact that rom the issuer for reason code A chargeback was received f . How authorization was not obtained the i ssuer claims the card was expired and be resolved? chargeback would this Answer: n authorization granted by the i Without a ssuer there is no . chargeback his recourse for t First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 71 of 234

72 Dispute Management Guide Dispute Group/ * Processing Error 77 Visa Non Matching Account Number - A transaction which did not receive an authorization approval was processed using an account number not on the issuer’s master files. - from the central processing date of the transaction 75 calendar days Time Limit Possible Cause , ccount number was entered incorrectly A  or  or , incorrectly recorded for a MO/TO order may have been ccount number A Transaction was processed when a decline or other non approved authorizat ion  - response was received How to Avoid  Ensure all transactions received a valid authorization code prior to processing the and transaction, imprinted transaction receipt that is signed or Obtain a legible magnetic swipe  Magnetic swipe transaction, compare – the account number on the front if they do not – of the card to the account number on the terminal call your voice authorization center and follow your internal match – authorization procedures rectly MO/TO transaction, ensure the account number was recorded cor  How to Defend  Provide transaction documentation proving the account number was correctly transmitted, or C Proof transaction was  hip initiated and authorized offline Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 77. The issuer is claiming that the account number was not on their master file and that the ow could this chargeback be transaction did not receive a valid approval. H remedied? Answer: A signed transaction receipt with a valid authorization code can written account number - be supplied reflecting the magnetic swipe or hand as well as cardholder signature. While this will remedy the charge back, it is not a guarantee that a chargeback for a different reason code will not be received. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 72 of 234

73 Dispute Management Guide Authorization Errors Dispute Group/ * Service Code Violations 78 - International only Visa The service code on the magnetic strip or chip indicated that the card was invalid for the transaction type and the mercha nt did not obtain authorization . 75 calendar days - of the transaction central processing date the from Time Limit Possible Cause Transaction was processed without obtaining proper authorization  to Avoid How  Obtain a valid authorization for all transactions How to Defend Provide proof that a valid authorization was obtained, or  If the transaction was chip initiated and authorized offline; supply proof  k notification and respond by Follow all instructions provided on the chargebac  the due date provided Chargeback Scenarios Scenario #1 78 because the card A chargeback was received from the issuer for reason code type utilized requires all transactions to receive full authorization. Answer: you chargeback medy this To re will need to prove that a valid authorization was granted. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 73 of 234

74 Dispute Management Guide Authorization Errors Dispute Group/ * 07 MasterCard Warning Bulletin A transaction was not previously authorized with an approval response and the account number is liste d in the MasterCard Electronic Warning Bulletin . Time Limit 45 calendar days - from central processing date the of the transaction Possible Cause Merchant failed to obtain authorization for transaction and account number was  ectronic Warning Bulletin listed on the MasterCard El How to Avoid Obtain a valid authorization prior to processing all transactions  Defend How to was obtained for the transaction Provide proof a valid uthorization  a Chip  Provide documentation supporting the transaction was processed as a transaction  Chip: Transaction was less than your floor limit and occurred at a hybrid terminal, - EMV Chip card and was initiated with a non Chip: Transaction was greater than the floor limit and occurred at a hybrid  terminal, and was initiated with a n on Chip card - Visa will implement changes to support revised floor limits in all Visa  International/Europe countries, except Hong Kong, Japan, Nigeria and Taiwan.  Follow all instructions provided on the chargeback notification and respond by the due date pr ovided Chargeback Scenarios Scenario #1 A transaction A chargeback was received from the issuer for reason code 07. posted to an account that was listed on the warning bulletin and did not receive an authorization. What would resolve this chargebac k ? Answer: You will need to supply p roof that a valid was authorization . received First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 74 of 234

75 Dispute Management Guide Dispute Group/ Authorization Errors * 08 Authorization - Related Chargeback MasterCard or merchant d Merchant completed a transaction after receiving a ‘declined’ response, id not obtain proper a uthorization for a transaction, or the card has expired. from calendar days of the transaction central processing date Time Limit - 90 the The issuer is permitted to batch multiple CAT 3 transactions into a single Reason Code 08 chargeback. Each transaction must be less than or equal to US 25 or local currency equivalent   Total amount of the transactions in the batch must not exceed US 250 or local currency equivalent Merchant name must be the same  Possible Cause or authorization code,  Transaction was pr ocessed without obtaining a valid tatus check approval; Automated Fuel Dispenser transaction received the $1.00 s  or , maximum threshold amount exceeded the however, the transaction ; however, the final ation ustry received an authoriz Merchant in the tipping ind  amount that was processed exceeded the tip percent allowed How to Avoid  Obtain valid authorization prior to processing all transactions  Automated Fuel Dispenser Merchants – the transaction does Obtain the status check approval for $1.00 and ensure that not exceed the maximum threshold amount Threshold Amounts for Automated Fuel Dispenser Self Service Terminal MasterCard/MCC 5542 -  rd $150.00 Corporate and Commercial Ca  All other cards $100.00 Notes: If a decline is received do not attempt to swipe the card again, obtain another form of payment – Call voice center for authorization and make an imprint of credit card on transaction – document with the cardholders signature if magnetic swipe reader is down or if a referral eived response is rec Tipping industry If final amount exceeds amount authorized by more than the percentage - – allowed, you must authorize the additional amount -  Any industry that allows a gratuity to be added to the transaction authorization amount plus 20% excluding not 5/16, - - present or contactless  Effective 10/1 card transaction in the US Region; Asia/Pacific, Canada, Europe, Latin America and the Caribbean, or Middle East/Africa Region excluding Effective 10/15/10, Chip/PIN transaction in the Asia/Pacific,  , Latin America and the Caribbean, or Middle Canada, Europe East/Africa region  If a merchant receives a partial approval, the merchant may only submit the transaction for the approved amount First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 75 of 234

76 Dispute Management Guide Defend How to  Provide proof that a v alid authorizati on was obtained on the tran saction date for or supply proof of authorization with date authorization card present transactions, was obtained  Provide documentation that supports the transaction was processed as a Chip transaction ification and respond by Follow all instructions provided on the chargeback not  the due date provided  Not Present transaction was declined by - - Multiple Authorization Requests, Card Code - In processing or X - the issuer and subsequently approved through Stand with an approval response, excluding: ecline response with a value of 02, Cannot approve at Issuer generated d – this time, try again later Issuer generated approval response after previously declining the – authorization Chargeback Scenarios Scenario #1 The i ssuer A chargeback was received from the issuer for reason code 08. receives that did not have a valid authorization to process. How are a transaction chargebacks these remedied? authorization You will need to supply proof that a valid Answer: was received for the transaction. - Automated Fuel Dispenser Scenario #2 A chargeback was received from the issuer for reason code 08 for a commercial maximum threshold of the because the transaction amount has exceeded the , card for . The original transaction r automated fuel dispense was processed d 80.00 an 1 $ the merchant obtained a status check approval for $1.00. The chargeback is valid for the difference of $ .00 since the 30 Answer: . maximum threshold amount transaction exceeded the Scenario #3 - Restaurant because the A chargeback was received from the issuer for reason code 08 transaction amount exceeded the authorized amount. The merchant posted obtained an a uthorization for a card present transaction in the amount of $20.00 p left by which included the ti and posted the transaction in the amount of $22.50, the cardholder. Answer: The chargeback is invalid due to the fact that the tip amount did not exceed the 20 percent that is allowed for restaurants. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 76 of 234

77 Dispute Management Guide Dispute Group/ Authorization Errors * 12 Account Number not on File MasterCard The issuer may pursue this chargeback if the transaction was posted to an account number that does not match any account number on file . - of the transaction central processing date the Time Limit 45 calendar days from Possible Cause ing an incorrect account number Transaction was processed utiliz  How to Avoid  and , valid authorization prior to processing all transactions a Obtain  Swipe or imprint all card present transactions - Magnetic Defend How to stripe read was received for magnetic uthorization Provide proof that a valid a  or , s transaction transaction receipt for card present transactions; that were Supply an imprinted  or not magnetic stripe read; to prove the acc ount number processed was valid, Supply proof of authorization for card not present transactions  Prov  ide documentation supporting the transaction was processed as a Chip transaction Chip: Provide documentation the transaction was processed by a Chip terminal on  - a non Chip card Follow all instructions provided on the chargeback notification and respond by  the due date provided - Effective October 17, 2014, For Multiple Authorization Requests, Card - Not  Present transaction was declined by the issuer and subsequently approved through Stand Code with an approval response, excluding: - In processing or X - – rated decline response with a value of 02, Cannot approve Issuer gene at this time, try again later – Issuer generated approval response after previously declining the authorization Chargeback Scenarios Scenario #1 A transaction was A chargeback was received from the issuer for reason code 12. processed to an account that does not exist on the issuer’s files. How is this resolved? chargeback Answer: Proof of valid authorization is the only remedy for transactions that were magnetic swiped or keyed entered; key entered transactions must of the complete imprint account number. contain a First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 77 of 234

78 Dispute Management Guide Frequently Asked Questions Is authorization required on all transactions? Yes. The only way to ensure that the card is valid, not expired or statused is to o btain auth orization. I’ve received a decline response on a transaction. If I receive an approval ten minutes later can I still process this transaction? No. When you receive a decline response, the best practice would be to ent. request a different form of paym we have received 11 ; however , The expiration date on the credit card reflects 10/ . What is the difference? 11 cards that reflect an expiration date of 10/15/ 10/ 11 is reflecting the card is valid until the last day of October 20 11 , st is stating the card is November 1 the card will be expired; while 10/15/ 11 th the card will be , October 16, 11 of October 20 20 until the 15 valid 11 expired. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 78 of 234

79 Dispute Management Guide Reason Codes and Description Authorization Non Compliance 4863 AT 4753 IN Invalid Card Nu mber Rev 04/17 Developed by: First Data Payments Compliance 234 of 79 Confidential & Proprietary to First Data

80 Dispute Management Guide Dispute Group/ Authorization Errors * uthorization Non Compliance – Discover 4863 AT A The transaction was not processed with a positive authorization response and/or transaction contains an authorization response after the expiration date on the card. 120 Time limit of the transaction. – calendar days from the processing date Possible Cause  Transaction was processed without electronic authorization, voice approval, account verification, or  Card was magnetic swiped, received a declined response and the transaction was processed instead of asking for another form of payment How to Avoid  Do not process a transaction when a declined authorization has been received.  Do not process a transaction for more than the allowed tolerance level above the authorization amount for the applicable MCC’s: – Terminal: $1 authorization is good for transactions Cardholder Activated up to $100 : Clarification was received the $1 USD authorization does protect Note $100 USD variance allowed between the authorized amount – : 15% Lodging Merchant than 15%, the and the amount processed. If variance is g reater full amount including the variance must be authorized – : 15 Car Rental % variance allowed. If the final amount of sale is less than the amount authorized, merchant must issue a cancellation of the authorization response equal to the amou nt exceeded Mail Order/Telephone Order: 15% variance allowed for tax or shipping – costs Authorization is valid for the actual amount approved if the sale is – approved for an amount other than $1 – The below MCC’s are allowed a 20% variance between the authoriz ed amount and the amount processed:  4121 Taxis/Limousines  5812 Restaurants and Eating Places  5813 Drinking Places 5814 Fast Food  7230 Barber/Beauty Shops  7298 Health and Beauty Spas  How to Defend  Evidence a positive authorization response was obtained  ence the transaction occurred prior to the expiration date on the card Evid First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 80 of 234

81 Dispute Management Guide Scenarios Chargeback Scenario #1 A chargeback was received from the issuer for reason code AT because an authorization was not requested or received for a transaction. Answer: ived to thout valid proof that an approval code was rece Wi this would be a valid chargeback to your account. process the transaction, Automated Fuel Dispenser - Scenario #2 . The original A chargeback was received from the issuer for reason code AT .00 and the merchant obtained a status check approval for 120 ction was $ transa $1.00. .00 since the Answer: The chargeback is valid for the difference of $ 20 .00. 100 transaction exceeded the maximum threshold amount of $ First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 81 of 234

82 Dispute Management Guide Dispute Group / Authorization Errors * Discover 4753 IN Invalid Card Number – The card number submitted in the transaction is not assigned to any valid cardholder or the card number submitted by the merchant is not assigned to the cardholder. 120 days calendar – Time limit from the processing date of the transaction. Possible Cause  The card number submitted in the transaction is not assigned to any valid cardholder or the card number submitted by the merchant is not assigned to the cardholder How to Avoid  Ensure the t ransaction is processed correctly. If the terminal cannot read a magnetic stripe, obtain a manual imprint and have the cardholder sign the imprinted sales draft. When manually keying a manually printed sales draft you must verify that that imprinted accoun t number and the terminal printed account number are the same. If they are different, do not honor the sale Be cognizant of key errors/transpositions when manually keying an account  number for authorization approval How to Defend  on records (if applicable) or, We will review authorizati  Provide us with a legible copy of the completed, signed and imprinted/swiped sales draft for possible Representment, or  If the account number on the sales draft was processed incorrectly, accept the chargeback and process the transaction using the correct account number  Provide a Transaction Documentation showing a as Receipt evidence that the Card Number legible Transaction accurate correctly is processed was listed on the Negative File at the not was and time that the Mercha nt used Downtime Authorization Services to obtain an Authorization Response for the Card Transaction; billed is Transaction Card the that evidence the the valid Card Number and to valid Card Number. Note : The posting of the correct account number may be subject to a late presentment chargeback. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 82 of 234

83 Dispute Management Guide Reason Codes and Description Charge Amount Exceeds Authorization Amount A01 No Valid Authorization A02 Authorization Approval Expired A08 Developed by: First Data Payments Compliance Rev 04/17 Confidential & Proprietary to First Data 234 of 83

84 Dispute Management Guide Authorization Errors Dispute Group/ * Charge Amount Exceeds Authorization Amount AMEX A01 – The amount of the authorization approval was less than the amount of the transaction. 120 – limit from the processing date of the transaction. calendar days Time Possible Cause  Transaction was processed without sufficient electronic authorization, voice approval, account verification How to Avoid  thorization has been received Do not process a transaction when a declined au Do not process a transaction for more than the allowed tolerance level  o Restaurants are allowed a 20% variance between the authorized amount and the amount processed Cruise line, lodging and vehicle rental industries are allow ed a 15% o v ariance between the authorized amount and the amount processed How to Defend Evidence authorization was granted for the full amount of the transaction  Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code A because the 01 authorization was not for the full amount of the transaction. Without valid proof that an approval code was rece Answer: ived for the full amount of the transaction, this would be a valid chargeback to your account. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 84 of 234

85 Dispute Management Guide Authorization Errors pute Group/ Dis * No Valid Authorization – AMEX A02 The transaction submitted did not receive a valid authorization approval; it was declined or the card was expired. 20 1 – from the processing date of the transac Time limit calendar days tion. Possible Cause Transaction was processed without electronic authorization, voice approval,  or account verification,  Card was magnetic swiped, received a declined response and the transaction was nt processed instead of asking for another form of payme How to Avoid Do not process a transaction when a declined authorization has been received   Do not process a transaction for more than the allowed tolerance level o Restaurants are allowed a 20% variance between the authorized amount d and the amount processe Cruise line, lodging and vehicle rental industries are allowed a 15% o variance between the authorized amount and the amount processed  Ensure the transaction is processed correctly. If the terminal cannot read a d have the cardholder sign the magnetic stripe, obtain a manual imprint an imprinted sales draft. When keying a manually imprinted sales draft, you must verify that that imprinted account number and the terminal printed account number are the same. If they are different, do not honor the sale  Be min dful of keying errors and transpositions when manually keying an account number for authorization approval  and Obtain a valid authorization for all transactions, If key entered, imprint the card on the transaction receipt and utilize the expiration  the card, date on and  Validate card is not expired by checking the expiration date on the card presented for the transaction First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 85 of 234

86 Dispute Management Guide How to Defend  We will review authorization records (if applicable) , or  inted/swiped Provide us with a legible copy of the completed, signed and impr sales draft for possible representment, or  If the account number on the sales draft was processed incorrectly, accept the chargeback and process the transaction using the correct account number ible transaction receipt as Provide a transaction documentation showing a leg  evidence that the account number was processed correctly, accurate and was not listed on the Negative File at the time that the merchant used Downtime Authorization Services to obtain an authorization response for the card action; the valid account number and evidence that the card transaction is trans billed to the valid account number.  Provide proof that the card was not expired on the transaction date, and or Ensure a valid authorization was obtained,  Proof that the charge was incurred prior to the card expiration date or within the  valid dates Follow all instructions provided on the chargeback notification and respond by  the due date provided Note : The posting of the correct account number may be subject to a late t chargeback. presentmen First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 86 of 234

87 Dispute Management Guide Authorization Errors Dispute Group/ * Expired – Authorization Approval AMEX A08 The charge was submitted after the authorization approval expired Time limit calendar days 20 1 from the processing date of the transaction. – Possible Cau se Transaction was processed more than 7 days from the date the authorization was  granted (excluding cruise line, lodging and vehicle rental industries) How to Avoid  Do not process a transaction more than 7 days after the authorization was received process a transaction when a declined authorization has been received Do not  Do not process a transaction for more than the allowed tolerance level  – Restaurants are allowed a 20% variance between the authorized amount and the amount processed – Cruise line, lodging and vehicle rental industries are allowed a 15% variance between the authorized amount and the amount processed  Ensure the transaction is processed correctly. If the terminal cannot read a magnetic stripe, obtain a manual imprint and have the cardholder s ign the imprinted sales draft. When manually keying a manually printed sales draft you must verify that that imprinted account number and the terminal printed account number are the same. If they are different, do not honor the sale  Be mindful of keying er rors and transpositions when manually keying an account number for authorization approval How to Defend  We will review the authorization records (if applicable) or Provide us with a legible copy of the completed, signed and imprinted/swiped  sales draft wit h unexpired authorization First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 87 of 234

88 Dispute Management Guide Cancelled/Returned Cardholder cancels or requests a refund for a transaction, however a credit is not on their account. Reason Codes and Description – 41 Cancelled Recurring Transaction 85 – Credit Not Processed Rev: 04/1 First Data Payments Compliance Developed by: 7 88 st Data Confidential & Proprietary to Fir of 234

89 Dispute Management Guide Cancelled/Returned * Dispute Group/ 41 Cancelled Recurring Transaction Visa m A erchant continues to charge a Cardholder for a Recurring or Preauthorized Health Care Transaction despite cancellation notification or the Transaction amount was not . For Latin America & Caribbean region Easy Payment within the preauthorized range tions: the transaction amount was not within the range of amounts previously transac approved by the cardholder. ays 120 calendar d of the transaction central processing date the Time Limit - from Possible Cause: Cardholder canceled  a recurring transaction ; howev er, they continued to be billed after cancellation, or authorized - Transaction amount charged exceeds the amount the cardholder pre  How to Avoid notifi cation is received from the customer, ancel the recurring billing as soon as  C and in a timely manner to the cardholder Issue a credit as needed   to ardholder and receive authorization to increase transaction amount Notify c continue billing  Ensure billing and cancellation terms are clear in the contract he transaction date and For LAC Easy Pay, notify the cardholder within 5 days of t  do not exceed the preauthorized range  Do not continue to bill the cardholders account after a chargeback has been received How to Defend  Provide evidence the cardholder did not attempt to cancel the services , or Proof the cardholder cancelled the transaction on a different date, or  , If the cardholder did cancel the service  provide proof a credit was issued prior to , or the chargeback  not Provide proof the transaction was an installment billing or a recurring transaction, or or , increased transaction amount the Provide p ardholder authorized roof c   If cardholder was billed in arrears, proof cardholder cancelled in the middle of or at the end of the billing cycl e, or and  An invoice or POD showing merchandise was shipped prior to cancellation merchandise was not returned Proof cancellation happened within the same month as the billing and partial  services were rendered Follow all instructions provided on the chargeback notification and respond by  the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 89 of 234

90 Dispute Management Guide rios Chargeback Scena Scenario #1 The cardholder reason code 41. A chargeback was received from the issuer for cancelled a recurring transaction. You responded with documentation claims they reflecting that the transaction was multiple installment payments. Does this ? ation remedy the chargeback inform Answer: Yes. This reason code is for recurring transaction not for installment conditions. Scenario # 2 A chargeback was received from the issuer for reason code 41. The cardholder claims they cancelled a recu rring transaction. You agree that the recurring billing has been cancelled however your business bills at the beginning of the month for services used the previous month. How do you remedy this chargeback? Supply a rebuttal and documentation Answer: to show that this billing is for services provided the previous month. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 90 of 234

91 Dispute Management Guide Cancelled/Returned Dispute Group/ * 85 Credit Not Processed Visa receipt or provided a refund acknowledgment, but A m erchant issued a credit transaction a credit t ransaction was not processed; cardholder returned merchandise or cancelled or merchandise or services and the merchant did not issue a credit transaction receipt/refund . acknowledgment transactions with Reason code 85 will be invalid for all Visa automated fuel dispensers MCC 5542 (these chargeback reason codes will still be valid for AFD MCC 5542 transactions involving Visa Europe) : Time Limit - One of the following or more calendar days from one of the following: 120 ca lendar days, if 15 t or refund acknowledgement date action receip  Credit Trans or refund acknowledgment  Undated Credit Transaction Receipt date of ssuer lder letter or notification to i Except for a T&E Transaction, if no ( Cardho written refund acknowledgment, date cardholder returned the m erchandise or ) cancelled the merchandise or services e 120 calendar days from the cancellation date or Central Processing date of th transaction receipt For a properly cancelled Visa Reservation Service Transaction   , either: For a T&E Advance Deposit Transaction Cancellation date – scheduled date of arrival or vehicle rental – Cardholders  For an Advance Payment Service Transaction Possible Cause policy was not properly disclosed to the cardholder,  The return /cancellation or or , ocessed timely Credit was not processed or not pr   Cardholder properly cancelled a Visa Reservation Service transaction and was billed for a “No Show”  Credit was not issued for the full amount How to Avoid cancelled merchandise, or the refund policy for returned/  P roper disclosure of at the time transaction of must be provided to the cardholder vices ser Card present, transaction receipt the – cardholder sign ed containing disclosure within close proximity to the signature , Ecommerce provide disclosure on website on same page as check out – ion wing cardholder must click to accept prior to complet sho Issue credit to the cardholder on t he same account as the purchase in a timely  manner or services ordered to the cardholder Ensure delivery of the merchandise  on or before expected delivery date First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 91 of 234

92 Dispute Management Guide Merchants must process a credit within five calendar days of issuing a credit e: Not receipt. Issuer’s must also post a credit within three calendar days from receiving the credit. How to Defend Show credit  proper proof of disclosure was accepted by the not due by providing cardholder at the time of the transaction transaction receipt containing disclosure ard present, provide signed C – – Ecommerce, provide disclosure on website on same page as the check out plete the in order to com showing cardholder must click to accept transaction  or returned merchandise was not Provide explanation of why credit is not due received Provide rebuttal for T&E transaction disputing the validity of the cancellation  for a Visa Reservation Service transaction code  ons provided on the chargeback notification and respond by the Follow all instructi due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 85. The issuer supplied turned; however, a cardholder letter stating that the merchandise was re no documentation to show that the merchandise received was returned . to you states response Your that there is no record that the merchandise that the chargeback be cardholder claims to have returned was received. How would this reme died? The case would be represented back to the issuer with the Answer: rebuttal you supplied ; however, this does not guarantee that the will be resolved. When the merchant states that the goods chargeback were not received evidence of such must be p rovided before the issuer submits a subsequent chargeback . The cardholder may provide proof of e proof of delivery supplied. I delivery. You will need to address th s it signed by one of your employees or was it sent to the correct address? Scenario 2 # A chargeback was received from the issuer for reason code 85. The issuer ocumentation from the cardholder stating that they returned the supplied d states that merchandise and received an in Your rebuttal store credit voucher. - indicates there is a sign poste the cardholder will receive d next to the register that for all returns - an in . Would this rebuttal remedy this store credit voucher chargeback ? No. The return policy was not properly disclosed to the Answer: cardholder at the time of trans action and the merchandise is in your possession. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 92 of 234

93 Dispute Management Guide Reason Code s and Description 4541 AP Recurring Payments Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data of 93 234

94 Dispute Management Guide Cancelled/Returned Dispute Group/ * 541 AP Recurring Payments – 4 Discover The transaction was processed after the expiration of the Recurring Payments Plan or after the cardholder notified the mer chant to cancel, or the cardholder withdrew permission to charge the account. Time Limit from the central processing date of the transaction. ays 120 calendar d - Issuer must wait 15 days after the date of cancellation before initiating a chargeback dis pute. : The cardholder must first attempt to resolve the claim directly with the Note merchant. Possible Cause: Cardholder canceled a recurring transaction; however, they continued to be billed  after cancellation How to Avoid recurring billing notifi as soon as ancel the C is received from the customer, cation  and  in a timely manner Issue a credit as needed to the cardholder Notify c to ardholder and receive authorization to increase transaction amount  continue billing Ensure billing and cancellation terms a re clear in the contract   Do not continue to bill the cardholders account after a chargeback has been received How to Defend or Proof the cardholder cancelled the transaction on a different date,   Proof cancellation happened within the same month as the bil ling and partial services were rendered  Follow all instructions provided on the chargeback notification and respond by the due date provided  Evidence that the Cardholder did not cancel the Recurring Payments Plan in accordance with the Merchant’s policy. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 94 of 234

95 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code AP. The issuer supplied information stating that the transaction was cancelled by the cardholder prior to the date of the transaction being chargeback. Your response states that there is no record that the cardholder cancelled. How would this chargeback be remedied? Answer: The case would be represented back to the issuer with the ; however, this does not guarantee that the rebuttal you supplied will be resolved. k chargebac Scenario # 2 the issuer for reason code AP The issuer A chargeback was received from was supplied information from the cardholder stating that the transaction cancellation date that was after the date of the tra nsaction cancelled but gave a being charged back. How would this case be resolved? Answer: The case would be resolved to the Issuer as the cardholder’s cancellation date is after the date of the transaction being chargeback. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 95 of 234

96 Dispute Management Guide Cardholder Disputes older has not received the merchandise or services for the transaction. The The cardh merchandise or services provided is being disputed by the cardholder due to inferior quality or was not what was agreed to during the purchase. Reason Codes and Description Reason Codes and Description Cancelled Recurring and Digital Goods 30 – 41 Services Not Provided or Merchandise – Transaction Not Received 50 – Installment Billing Dispute Not as Described or Defective – 53 (Participating Countries Only) Merchandise – 90 Receipt of Cash or Load - Non 53 – Cardholder Dispute ad Transaction Value at ATM or Lo Device – Not Elsewhere Dispute Cardholder – 54 Classified (U.S. Region Only) - Non – 55 Receipt of Merchandise/Services - – 59 Show or Addendum No – Credit Not Processed 60  MasterCard condensed the reason codes 41, 55, 59, and 60 into 53; however MasterCard will continue to allow the issuer to use the separate codes 7 Developed by: Rev: 04/1 First Data Payments Compliance Confidential & Proprietary to Fir 234 st Data 96 of

97 Dispute Management Guide Dis pute Group/ Cardholder Disputes * Visa 30 Service Not Rendered or Merchandise Not Received Cardholder or person authorized by cardholder did not receive, due to merchant being nable to provide: unwilling or u  Merchandise delivered at the agreed upon location or by the date agreed upon, Services purchased,  , not received by the agreed upon date Shipped merchandise  via Mail/Phone Order or Electroni  Airline or passenger rail ticket ordered c Commerce - Show transactions  No automated fuel dispensers transactions  Reason code 30 will be invalid for all Visa with MCC 5542 (these chargeback reason codes will still be valid for AFD MCC 5542 transactions involving Visa Europe) C Time Limit entral processing - 120 Calendar Days from one of the following n date of the transactio Expected receipt date, as specified by the cardholder, if merchant agreed to  , not to exceed 540 days provide service after the central processing date  Expected receipt date, as specified by the cardholder, if merchant agreed to provide merchandise after the central processing date Return and/or limited return policies, although properly disclosed, are not a : Note . receipt of services or merchandise - remedy to chargeback involving quality or non The issuer is required to supply a detailed descriptio n of the goods or services Note: purchased by the cardholder within the chargeback documentation unless it is prohibited by law. Possible Causes ,  Services not provided or m erchandise was not received or or m  The c ardholder was charged prior to merchandise being shipp ed erchandise was not received by agreed upon delivery date or location , or Prepaid merchandise was not available for pickup  ticket Airline/passenger rail  received as a result of MO/TO or ecommerce not How to Avoid Provide Services/Merchandise as agree d upon to the cardholder   Contact the cardholder in writing if the merchandise or service cannot be provided or is delayed, and  Offer the cardholder the option to cancel if your internal policies allow , Clearly indicate the expected delivery date on the tran saction receipt or invoice  and  Deliver the merchandise to the specified location by the expected delivery date If unable to deliver merchandise or provide services, issue credit to the cardholder  cardholder Ensure airline/railway tickets are  timely to the delivered elivery for shipped merchandise d Obtain signed proof of   Do not charge the cardholder until the merchandise is shipped First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 97 of 234

98 Dispute Management Guide : Return and/or limited return policies, although properly disclosed, are not a Note pt of merchandise or services recei - remedy to a chargeback involving non How to Defend  Provide a signed Proof of Delivery (POD) for shipped merchandise , or be and able to that merchandise/services were available roof P  and the d provide or , cardholder refused  lder that allows packages to be left at Release form/waiver signed by the cardho the cardholder’s residence without requiring a signature and provide an unsigned proof of delivery (POD) I f cardholder states merchandise was returned ;  and was not received by merchant ardholder provide a rebuttal addressing c or , s claims ’  Proof that services were rendered, or Merchandise was received by cardholder   For an airline transaction, evidence that the name included in the flight manifest for the departed flight matches the name provided on the purchase itinera ry Follow all instructions provided on the chargeback notification and respond by the  due date provided Chargeback Scenarios Scenario #1 30 supplying A chargeback was received from the issuer for reason code information from the cardholder stating the me rchandise ordered was not on October 15, 2008 to advise they still received. The cardholder contacted you have not received the merchandise that was supposed to be received by September 8 29, 200 he Your customer service agent informed the cardholder that t . merchandise would be re - shipped . After a month of waiting for the merchandise to arrive, the cardholder initiated their dispute . In response to the chargeback you , first contact and proof s ’ cardholder provided proof of delivery dated prior to the ositive AVS. How would this case be resolved? of p . The supplied does not remedy the chargeback The rebuttal Answer: th . cardholder claims they did not receive the merchandise as of October 15 th ow that could supply proof of delivery dated after October 15 You to sh the cardholder has received the merchandise; however, this would not chargeback guarantee that the would not be received a second time. Scenario # 2 A chargeback was received from the issuer for reason code 30 . The cardholder nd You had a concert which was to be held on August 2 purchased tickets to . th . How would cancelled the concert and rescheduled the event for September 10 this case be resolved? chargeback Answer: There is no remedy for this . Reason code 30 is used when the merchant is unwil ling or unable to provide the purchased services. Providing an alternate date for an event does not protect you from this reason code if cardholder refuses to attend. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 98 of 234

99 Dispute Management Guide Cardholder Disputes Dispute Group/ * 53 Visa Not as Described or Defective Merchandise Services or Goods received were not as described on the Transaction Receipt or other umentation presented to the c purchase or, for a ardholder at the time of the doc or verbal description, merchants , not the same as the Mail/Telephone Order Transaction the merchandise was received damaged, defective or otherwise unsuitable for the purpose This reason code may also be used for Quality of Goods o r Services for Canada . sold Domestic and Intraregional transactions between Canada and the U.S. This reason code may also be used if the cardholder claims the terms of the sale were misrepresented by laims to have been sold the merchant. This reason code may be used if the cardholder c his reason code for disputes related to the quality of goods or is T counterfeit goods. services received to all regions Time Limit from one of the following: 120 calendar days : Central processing date of the transaction  dholder received or expected to receive the merchandise or services Date car  Date when the cardholder was first made aware the merchandise/service  would not be provided, up to the maximum of 540 calendar days from the date of the original transaction sing date of the balance portion of the transaction for delayed  Central proces delivery Or, 60 calendar days from receipt date of the first cardholder notification to the  if there is evidence of ongoing negotiations with the merchant issuer : otes N  Collaborating informa tion may be re quired to support the chargeback  Return and or limited return policies although properly disclosed are not a remedy to chargeback involving quality or non - receipt of services or merchandise Chargebacks for Misrepresented:  reason code address additional Deceptive Marketing Practices such as l wil This Business Opportunity and Funds Recovery including Computer Software. Visa Europe interregional transaction will be permitted to be disputed by the  Issuer for the following transaction types:  Char gebacks are restricted to transactions with specific categories: – Timeshare resellers, timeshare reseller advertisers, or merchants that recover timeshare reseller fees Merchants may or may not be assigned MCC 7012  – Timeshares that originated the initial sale of a  Does not apply to a merchant timeshare property or to entities that own the resort or building in which the timeshare is located First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 99 of 234

100 Dispute Management Guide  Merchants that are excluded from this chargeback right normally are or 3000 series assigned a unique MCC for travel and entertainment  Merchants that sell services such as debt consolidation, credit repair, or counseling, mortgage repair, modification or counseling, foreclosure relief, and/or credit card interest rate reduction – ove may or may not be Merchants that support the services listed ab assigned an MCC code of 7277 Counseling Services: Debt, Marriage, – Personal Merchants that provide family or personal counseling services (e.g. drug – counseling, marriage counseling, etc.) are excluded from this chargeback right  virus security software products in a card not - ants that sell computer anti Merch present environment using one or both of the following deceptive marketing practices to promote their offerings: – Inaccurate online advertisements Malicious software downloaded onto a consumer’s personal computer (or – similar electronic device) – Merchants assigned MCC code 5962 – Related - Direct Marketing; Travel Arrangements Services Direct Marketing; Outbound – Merchants assigned MCC code 5966 – Telemarketing Merchants Additional Notes: Chargebacks for Misrepresented: Do not apply to disputes related specifically to quality of the product or service   Issuers are not required to close the cardholder account  Evidence of the sales contract signed or acknowledged by the cardholder will not, n its own, be considered a defense o First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 100 of 234

101 Dispute Management Guide Chargebacks for Counterfeit Goods: Issuers can initiate chargebacks under this reason code if the cardholder claims to have been sold counterfeit goods. This would include products that are not produced by a legitimate o wner or authorized manufacturer, or goods that violate the intellectual property rights of another entity. Additional Notes: Issuers are required to provide information confirming the cardholder was notified  that the goods were counterfeit  s not required to return the counterfeit goods or attempt to resolve The cardholder i with the merchant. However, they are required to identify the current location of the counterfeit goods. Possible Cause that was defective damaged or unsui ted for the Cardholder received merchandise  purpose sold, or  Merchandise/services did not match the description on the transaction documentation presented at the time of purchase, or  - face to face Merchandise/services did not match the verbal description for non he time of purchase transaction presented at t Merchant does not have the confirmed room available for the cardholder . The  hotel arranged for similar accommodations at another hotel but still billed the cardholder. How to Avoid  at the merchandise was After inspection, obtain the cardholder’s signature th received in good condition In the event that the cardholder received defective merchandise or the  merchandise received was not as described; r esolve the issue with the cardholder at first contact escribed to the cardholder Provide merchandise or services as d  Make sure accom ardholder as reserved  modations are available to the c Note: • Merchandise must be retrieved in the same manner as it was shipped Acceptance of disclosure regarding terms/conditions or return/cancellation policy • s irrelevant, unless the dispute is regarding the actual terms disclosed i How to Defend s concerns and copies ’ Provide a written rebuttal addressing all of the cardholder  , or , order forms, invoices, or contracts if applicable receipts of all transaction  ence cardholder was aware that the merchandise was purchased in "as is" vid E condition (signed disclosure, screen print for ecommerce or cardholder admits in letter the or y purchased merchandise “as is”), or of of delivery, pro roof replacement merchandise was shipped along with P  If replacement merchandise is in the process of being shipped provide a shipping  date or , If the cardholder states they returned merchandise that was defective or not as  described, and the merchant has no record of receiving the merchand ise, the or merchant can claim that on their rebuttal, First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 101 of 234

102 Dispute Management Guide Provide a rebuttal stating returned merchandise was not received. For U.S./Canada  region, cardholder only has to attempt to return the merchandise  – l regions the attempt to return requirement for al modified Visa the issuer may submit a chargeback under this reason code if the cardholder has attempted to return the merchandise  Provide documentation to support the cardholder did not properly cancel their reservation  services were provided to the cardholder Provide documentation to support that  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 53 regarding the vehicle. The cardholder stated q uality of repairs performed on the cardholder’s that . The cardholder also provided chargeback unwilling to resolve the you were an invoice from a second merchant indicating the work was faulty, and was not ? chargeback ctly. What is the remedy for this performed corre A rebuttal from Answer: addressing the concerns raised by the you cardholder and the validity of the second opinion would be a valid a subsequent representment; however, this does not guarantee that charg would not be received again. eback First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 102 of 234

103 Dispute Management Guide * Dispute Group/ Cardholder Disputes ATM or Visa Travel/Money Visa 90 Services not rendered - Program Transactions Cardholder acknowledges participation in an ATM or Visa Travel/Money Program Transaction and no funds or only a portion of requested funds were received . 120 calendar days - Time Limit of the transaction central processing date the from Possible Cause ATM was not functioning properly and only a portion or no funds were received  by the cardholder How to A void Insure all dispensing machines are operating properly  How to Defend Provide proof the cardholder received the total amount of funds that were  requested  Follow all instructions provided on the chargeback notification and respond by the d due date provide First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 103 of 234

104 Dispute Management Guide Dispute Group/Cardholder Disputes * Installment Billing Dispute (Participating MasterCard 50 Countries Only) The total number of installments or the installment amount being billed is not in accordance with the arrangement agreed with the mer chant. The installment was billed prematurely, accelerated or was billed after the total amount has been collected. Note: In instances where the cardholder is claiming fraud, the original transaction will be charged back under MasterCard 37, subsequent installments processed will utilize MasterCard 50. Time Limit: 120 calendar days from the central processing date of the transaction Possible Cause  Cardholder claims the total number of installments or the installment amount being billed is not in acc ordance with the installment agreement  Installment was billed early  Installment was billed after the agreement was met  The number of installments in the Financial Detail Addendum field differs from the number of installments authorized Transaction is not a n installment billing transaction   Installments were not billed in the agree upon timeframe (billed too soon) How to Avoid  Ensure correct number or installments are billed for the correct amount and according to the payment schedule llation terms are clear in the contract  Ensure billing and cance How to Defend roof  Provide p that the installment agreement has not been met according to the original contract, or  Information proving the ch arge is for installment billing  Follow all instructions provided on the ch argeback notification and respond by the due date provided Note: Proof services were provided and or used by cardholder after cancellation may not remedy the chargeback First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 104 of 234

105 Dispute Management Guide Chargeback Scenarios Scenario #1 claiming the A chargeback was received from the issuer for rea son code 50 installment agreement was met the previous month s their . The cardholder claim agreement was for six months; however they have been billed seven times . How chargeback remedied? is this Answer: stallment agreement was for a in You may supply proof that the . different timeframe or support that this is not the seventh billing First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 105 of 234

106 Dispute Management Guide Cardholder Disputes Dispute Group/ * Cardholder Dispute 53 MasterCard eceipt or 1. oods receive d were not as de scribed on the transaction r Services or g other doc umentation presented to the c ardholder at the time of the purchase or, for , not the same as the merchants ransaction a mail/telephone order t verbal ve or otherwise the merchandise was received damaged, defecti description, or This code may also be used to address disputes for the purpose sold. unsuitable (Formerly received as involving intellectual property rights (counterfeit goods). RC 53) charge a cardholder for a aft er A merchant 2. recurring transaction continues to RC 41) Formerly received as ( notification of cancellation. C 3. \ her authorized representative did not receive the shipped ardholder or his merchandise or services were not rendered, or airline flight was not provided. ( Formerly received as RC 55) Show transaction billed to their account, or the 4. The ca rdholder is disputing a No - cardholder is disputing any subsequent transaction representing an addendum ( charge to any valid transaction from the same merchant. Formerly received as RC 59) 5. A merchant issued a credit transaction receipt or provided a refund the merchant acknowledgment, but a credit transaction was not processed; or posted a credit and reduced the amount of the credit due without proper disclosure; or cardholder returned merchandise or cancelled merchandise or service and the merchant did not issue a credit transaction receipt/refund account has been inaccurately posted with he t acknowledgement, or, cardholder’s This reason code allows the issuer to double the a debit instead of a credit. transac tion amount. Formerly received as ( RC 60) Note: MasterCard is consolidating the following reason codes under Reason Code 53. Reason Code 53 has been renamed “Cardholder Dispute” 41 Cancelled Recurring and Digital Goods Transaction  Provided 55 Goods or Services Not   No Show or Addendum - 59 60 Credit Not Processed  may continue to be used. Reason Codes 41, 55, 59 and 60 The ATM dispute portion of Reason Code 59 has been moved to Reason Code 34, Point of Interaction Error. Time Limit 120 calendar days : from one of the following: (or addendum transaction) Central processing date of the transaction   Delayed delivery/service, or date cardholder last received or expected to receive the merchandise or services  transaction for Central processing date of the balance portion of the delayed delivery First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 106 of 234

107 Dispute Management Guide Interrupted Services: Date the cardholder becomes aware that the service  ceased  Date on the credit slip, date goods were returned, or the date services were cancelled Notes: Collaborating information may be required to support the chargeback   General terms and conditions cannot be used to enroll a cardholder into a recurring payment transaction. Recurring transaction enrollment terms and nditions. conditions must be clear and differentiated from general terms and co MasterCard has chargeback rights for Digital Goods. These transactions can  be batched into one chargeback as long as each transaction is under USD 25 and the total of the chargeback does not exceed USD 250. olicy or special terms at the time of A merchant must disclose their refund p  the sale if they are unwilling to accept a return or cancellation for buyer’s remorse. Failure to properly disclose the refund policy or special terms prior to esult in the merchant’s completion of the transaction at the point of sale could r requirement to accept the return or cancellation and issue a credit. - For e  commerce transactions, the merchant will be able to utilize a cardholder’s electronic acceptance of the terms and conditions to prove that of the refund policy was accepted and agreed to by the proper disclosure cardholder. Examples of a cardholder’s electronic acceptance can include but is not limited to the cardholder checking a box or clicking a submit button indicating their acceptance.  MasterCard is allow ing the cardholder to cancel any timeshare contract or similar provisions within 14 calendar days from the date the contract was signed. Defective/Not As Described Possible Cause the that was defective damaged or unsuited for Cardholder received merchandise  purpose sold, or Merchandise/services did not match the description on the transaction  documentation presented at the time of purchase, or - Merchandise/services did not match the verbal description for non  face to face of purchase transaction presented at the time How to Avoid  Have cardholder sign for the merchandise after inspectio n that it was in good condition Resolve the issue with cardholder at first contact  Provide merchandise or services as described to the cardholder  d Merchandise must be retrieved – in the same manner as it was shippe Acceptance of disclosure regarding terms/conditions or return/cancellation – ding the actual terms dispute is regar the policy is irrelevant, unless disclosed First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 107 of 234

108 Dispute Management Guide How to Defend  the cardholder Provide a written rebuttal addressing all of s concerns and copies ’ , or of all transaction documents, order forms, invoices, or contracts if applicable  vidence cardholder was aware that the merchandise was purchased in "as is" E condition (signed disclosure, screen print for e r cardholder admits in commerce o - letter the or y purchased merchandise “as is”), Proof that the merchandise is genuine and not counterfeit goods, or  or  proof of delivery roof replacement merchandise was shipped along with , P s of being shipped provide a shipping  If replacement merchandise is in the proces date  notification and respond by the Follow all instructions provided on the chargeback due date provided Cancelled Recurring and Digital Goods Transactions Possible Cause  Cardholder canceled a recurring transaction; however, they continued to be billed after cancellation Digital Good transaction is in dispute  How to Avoid C cation  notifi is received from the customer, ancel the recurring billing as soon as and  er in a timely mann Issue a credit as needed to the cardholder  Ensure billing and cancellation terms are clear in the contract Do not continue to bill the cardholder’s account after a chargeback has been  received  Ensure adequate controls are in place when the cardholder made the transaction on to disable all digital good purchases as a default Cardholder had the opti – setting – The time period for digital good purchase did not exceed 15 minutes from the time the cardholder entered their account authentication credentials given the option to confirm Cardholder was advised of the purchase and was – or cancel the purchase at the time of the transaction How to Defend If the cardholder used the service after cancellation, provide usage logs to support,  e cardholder as this is not a remedy it can be used to request a representment for th or to address, roof Provide p prior to the cancellation date or that the transaction date occurred  or the same day as the transaction, cancellation happened on that  Information proving the charge is for installment billing and not a recurring , harge c or First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 108 of 234

109 Dispute Management Guide A signed contract which states the cardholder needed to cancel according to  specific terms (i.e. in writing) and the cardholder did not provide proof that they d according to the agreed terms, or cancelle iddle or at the end of the billing cycle Rebuttal stating cardholder cancelled in m  and merchant bills in arrear or s (after services are rendered), Proof cancellation happened within the same month as the billing and partial  or , services were rendered invoice or POD showing merchandise was shipp ed prior to cancellation and An  has not been returned  Follow all instructions provided on the chargeback notification and respond by the due date provided Provide proof adequate controls are in place when the cardholder made the digital  good transaction Proof services were provided and or used by cardholder after cancellation Note : may not remedy the chargeback Merchandise Not Received Possible Causes Merchandise or services were not received by the cardholder, or   Cardholder charged prior to merchandise be or ing shipped, Merchandise was not received by the agreed upon delivery date or location, or  An e  commerce transaction was never completed, however the cardholders - account has been debited How to Avoid  Obtain signed Proof of Delivery for shipped merchand ise, and  Ship all merchandise according to agreed upon terms, and Do not charge the cardholder until the merchandise has been shipped  Note: Return and or limited return policies, although properly disclosed, are not a remedy to chargeback involving quali ty or non - receipt of services or merchandise How to Defend  Provide p roof of delivery signed by the cardholder or person designated by the cardhol or der to receive the merchandise, Release form/waiver signed by the cardholder that allows packages to be left  at the cardholder’s residence without requiring a signature and provide an u nsigned proof of delivery (POD), or transaction receipt A showing goods were not to be shipped or a n invoice or  rebuttal stating that the cardholder received the merchandise at th e time of the sale or cardho lder was to pick up merchandise, or supply documents to prove if  I f cardholder refuses delivery of merchandise , , or available elivery date differs from date given by Documentation indicating promised d  or lapsed, and it has not e cardholder ownload was completed In the event that a d  , supply documentation to support First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 109 of 234

110 Dispute Management Guide If cardholder states merchandise was returned and was not received by the  merchant; provide rebuttal addressing cardholder’s claims Follow all instructions provided on t  he chargeback notification and respond by the due date provided Services Not Provided Definition: . Merchant is unwilling or unable to render services Possible Causes  Purchased services were not received by the cardholder How to Avoid to the cardholder as agreed, ervice Provide requested s or   If unable to provide services, issue credit to cardholder Note: Return and/or limited return policies although properly disclosed are not a - remedy to chargeback involving quality or non ndise. receipt of services or mercha How to Defend proof  Provide a written rebuttal addressing all of the cardholders concerns and services were: R – endered – vailable but were refused by the cardholder A – P rovided and acknowledged by the cardholder dholder Available but were not utilized by the car –  Follow all instructions provided on the chargeback notification and respond by the due date provided Airline Flight Not Provided Definition: The cardholder did not receive airline services. Possible Causes  Airline has filed bankruptcy and is no longer providing service, or Flight was cancelled due to inclement weather, or other general  cancellations/delays How to Avoid to the cardholder Ensure requested airline services are provided   erchant Issue refunds as applicable when services are cancelled by the m How to Defend Provide proof of any of the following: A irline services were provided to the cardholder, or   Cardholder is still in possession of the paper tickets and the tickets can still be utilized, or  Documentation proving cardholder boarded spe cified flight, or ervices were available but were refused S   Follow all instructions provided on the chargeback notification and respond by the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 110 of 234

111 Dispute Management Guide Guaranteed No - Show: : The cardholder is disputing a “no - show” hotel charge from a card acceptor Definition that participates in the MasterCard Guaranteed Reservations Service Cardholder Can Provide Cancellation Number Possible Causes  Reservation was not properly canceled by merchant when cardholder cancelled How to Avoid of reservation by the cardholder, llation cance upon Issue credit  or  Obtain magnetic swip e or imprint and signed folio reflecting cardholders stay , and Ensure cardholder is aware of cancellation policy at the time of the reservation  How to Defend lidit  A rebuttal addressing the va y of the cancellation code (i.e. , a n explanation if f it is not, exampl an e the cancellation code prov ided by the cardholder is valid; i of a proper cancellation code. . While this is not a remedy, the issuer will need to ) older and obtain an additional rebuttal, or review the document with the cardh A signed, imprinted or magnetic stripe read folio/transaction document proving  the transaction was not processed due to a No or , Show -  roof the cancellation policy was properly disclosed to the cardholder at the time P of the reservation Follow all instructions provided on the chargeback notification and respond by the  due date provided Cardholder Can Not Provide a Cancellation Number Possible Causes  Cardholder cancelled the reservation and was not provided a can cellation number, or  Failed to retain the cancellation number given by the merchant, or  Reservation was not cancelled properly by the merchant and the cardholder was billed for a “No Show” How to Avoid upon or ardholder, of reservation by the c cancellation Issue credit  stay Obtain magnetic swip e or imprint and signed folio reflecting cardholders  and  Provide cancellation number for all cancellations ,  Ensure cardholder is aware of cancellation policy at the time of the reservation How to Defend A rebuttal sta  ting that the merchant has a formal Guaranteed Reservation Program and that there is no record of the cardho lder cancellation, or A signed, imprinted or magnetic stripe read folio/transaction proving the receipt  transaction was Sh - not processed due to a No ow, or P  roof the cancellation policy was properly disclosed to the cardholder at the time or , of the reservation First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 111 of 234

112 Dispute Management Guide Documentation proving the cardholder cancelled the reservation after 6:00 pm on  the scheduled day of arrival n the chargeback notification and respond by the Follow all instructions provided o  due date provided Alternate Accommodations Possible Causes the confirmed room available for the cardholder Merchant does not have  . The illed the hotel arranged for similar accommodations at another hotel but still b cardholder. How to Avoid ardholder as reserved  Make sure accom modations are available to the c Merchant should ensure the c ardholder has been billed  if alternate only once accommodations are provided How to Defend  Provide a rebuttal and documen tation proving the cardholder received alternate or accommodations and the cardholder was not billed for both transactions, tion document proving  A signed, imprinted or magnetic stripe read folio/transac the c ns ceive alternate accommodatio ardholder did not re Follow all instructions provided on the chargeback notification and respond by the  due date provided No Show Rate Higher Than Cardholder Quoted Possible Causes Merchant billed cardholder a No Show charge that was different than the quoted  rate Avoid How to  Ensure the No Show rate billed to the cardholder is the rate that was originally quoted How to Defend - Proof that the No  Show rate that the cardholder was billed was the same as the initial rate that they were quoted or , read netic stripe ed or mag A copy of the signed imprint  to transaction document prove that the transaction did not take plac - Show transaction, or e due to a No  If a different rate is billed, provide proof the Cardholder was aware and authorized the rate difference - ised of No Show Fee Cardholder Not Adv Possible Causes Cardholder was billed for a No Show transaction without their knowledge  How to Avoid Ensure Cardholders are made aware of the No Show policies at the time the  - reservation is made First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 112 of 234

113 Dispute Management Guide How to Defend  Proof that the cardholder was advised that they would be charged a No - show fee , or netic stripe A copy of the signed, imprinted or mag  to transaction document read e due to a No prove that the transaction did not take plac Show transaction -  rgeback notification and respond by the Follow all instructions provided on the cha due date provided Addendum Dispute The cardholder is disputing any subsequent transaction representing an Definition: addendum to any valid transaction from the same merchant Possible Cause  Merchant processed a tr ansaction that was not part of the original transaction or document, Merchant was not aware of the additional charge at the time of the original  transaction How to Avoid Notify cardholder of any additional charges prior to processing  ess authorized by the r for loss, theft or damages unl ardholde Do not bill c  and cardholder,  Ensure the original charge was processed correctly How to Defend Documentation to prove the addendum charge is the  cardholders responsibility ocumentation proving cardhold Example : D s er was responsible for a parking ticket, the rental agreement showing dates o f rental and parking violation Proof services were provided and acknowledged by the cardholder  Follow all instructions provided on the chargeback notification and respond by the  d ue date provided Credit Not Processed Possible Cause  Merchant accepted return/cancellation and did not issue a credit , or not processed timely or  Credit was not issued for the full amount or  The return/cancellation policy was not properly disclosed to th e cardholder  The merchant intended to issue credit; however, the transaction was processed as a sale How to Avoid cancelled merchandise, or the refund policy for returned/ P roper disclosure of  services action trans of at the time must be provided to the cardholder First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 113 of 234

114 Dispute Management Guide cardholder sign containing transaction receipt ed – Card present, the disclosure – provide disclosure on website on same page as check out Ecommerce, ion showing cardholder must click to accept prior to complet on t Issue credit to the cardholder  he same a ccount as the purchase and for the correct amount in a timely manner eliver or services ordered to the cardholder on or Ensure d  the merchandise y of before expected delivery date Process all transactions using the proper transaction code  Defend How to disclosure was accepted by the proper proof of not due by providing  credit Show cardholder at the time of the transaction transaction receipt ard present, provide signed C – containing disclosure o – Ecommerce, ut provide disclosure on website on same page as the check - showing cardholder must click to accept completion or  returned merchandise was not Provide explanation of why credit is not due received Follow all instructions provided on the chargeback notification and respond by the  due date provided Provide a copy of the transaction documentation to prove it was processed under the appropriate transaction code Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 60. The cardholder merchandise for the transaction was has supplied a letter claiming that the returned; however, a credit was not issued. Your rebuttal states that a credit slip was never provided or promised and the merchandise was not received. How would this chargeback be resolved? chargeback would be represented to the issuer. This Answer: Scenario # 2 A chargeback was received from the issuer for reason code 60. The cardholder - returned merchandise that was purchased on their credit card. You supplied an in requested credit to their credit card store credit slip. The cardholder refused and which was denied. How would this chargeback be resolved? Answer: You would need to supply proper disclosure that an in - store credit slip would be given for all returns. This disclosure must be signed chargeback and a cknowled ged by the cardholder. With this proof the would be represented. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 114 of 234

115 Dispute Management Guide Scenario #3 A chargeback was received from the issuer for reason code 60, for double the amount of the transaction. The cardholder has contacted their bank claiming that . What is the re issued a credit slip which was they we processed as a sale ? chargeback resolution of this Answer: The issuer’s chargeback is for the correct amount due to the fact receipt that the cardholder was to receive a credit for the credit ; however, the y were actually charged again. Therefore the cardholder is due a credit for the billing and a credit as a result of the credit receipt . The only recourse would be to supply proof that the cardholder was not due a credit and the second billing was a valid charge. Scenario #4 A chargeback was received from the issuer for reason code 53. The cardholder made a purchase via mail for a red sweater. Upon receipt of the package; a blue sweater was received. The cardholder contacted you to make an attempt to obtain a red sweater and ultimately requested to return the merchandise. You were not able to supply a red sweater and will not accept return of the merchandise. How would this chargeback be resolved? did not receive The cardholder purchased a red sweater; they Answer: what was ordered. They attempted to resolve the situation; however, they were unable to do so. The chargeback is valid due to the fact that cardholder did not receive what was ordered. If you cannot supply the ordered merchandise and the cardholder does not want the replacement item, you should accept the merchandise for return and issue a credit. 5 Scenario # A chargeback was received from the issuer for reason code 53. The cardholder received a table and four chairs, one of which was b roken. They contacted you to replace a broken chair and you agreed to replace the chair at no cost. The cardholder initiated a dispute with the issuer because they did not receive the replacement chair. How would this chargeback be resolved? Answer: u supplied documentation to show that the cardholder Yo accepted delivery of the replacement chair. This information can be representment to the issuer for review. This does not guarantee that the chargeback will not be continued. Scenario #6 geback was received from the issuer for reason code A char 41 for a transaction in 10 May. The cardholder claims they cancelled their internet service on 4/4/ ; First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 115 of 234

116 Dispute Management Guide however, they are being bill for the service in May, June and July. How is this remedied? chargeback You may supply proof that the cardholder did not cancel the Answer: 10 services on 4/4/ as well a rebuttal addressing if the services were used. Scenario #7 A chargeback was received from the issuer for reason code 55 . The cardholder claims they were to receive a shipment on 11/5/10. On 11/20/10 the cardholder contacted you claiming that the merchandise was not received. How is this chargeback remedied? Answer: A proof of delivery signed by the cardholder dated after 11/20/0 . This does chargeback sent the 8 can be provided to repre . not guarantee that a subsequent chargeback would not be received Scenario #8 The cardholder A chargeback was received from the issuer for reason code 55. . The was to receive a download to their computer for a software purchase cardholder previously contacted you stating that the download would not complete. They contacted the issuer and requested to dispute the transaction. How is this chargeback remedied? Proof that the software that the cardholder purchased wa Answer: s successfully downloaded will need to be provided. Scenario #9 A chargeback was received from the issuer for reason code 55. The cardholder nd . The concert purchased tickets to a concert which was to be held on August 2 th . How would this case be r September 10 was cancelled and rescheduled fo resolved? There is no remedy for this . Reason code Answer: chargeback 55 is used when the merchant is unwilling or unable to provide the purchased services. Providing an alternate date for an event does not prote ct you from this reason code if cardholder refuses to attend. Scenario #10 A chargeback was received from the issuer for reason code 59. The cardholder claims they cancelled their hotel stay and provided a cancellation number hargeback be remedied? CLN486. How would this c Answer: You would need to provide a rebuttal addressing that the room was not cancelled and that the number supplied is not a valid cancellation number for your establishment as well as provide an example of a valid code. #1 Scenario 1 A chargeback was received from the issuer for reason code 59. The cardholder rented a vehicle from a local rental company. The cardholder was billed two weeks after the First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 116 of 234

117 Dispute Management Guide authorize return of the car for a parking ticket. The dispute is that the cardholder did not the parking ticket to be applied to their credit card. How would this chargeback be resolved? Answer: Provide the rental agreement to show the dates that the cardholder had possession of the vehicle and a copy of the parking ticket to prove th at the ticket was received while the vehicle was in their This documentation can be utilized to represent the possession. You are correct in charging the cardholder for traffic chargeback. violations received when the car was in their possession. ntly Asked Questions Freque The cardholder did return their purchase; however, I just realized that their credit was not processed. Can I process the credit now? If a chargeback has not been received, yes, you may process the credit. If a chargeback has bee n received, no, do not process the credit. The cardholder will have been issued a credit by the issuer as a result of the chargeback. We have been working with the cardholder to rectify a dispute that the cardholder has their home. Our crew went to the home and rebuilt the with a deck that was installed at deck and received a final document signed by the cardholder stating that the deck is proper and payment is due. However, we received a chargeback, do we have any recourse? cument from the cardholder that the payment is Yes. Supply the signed do due. Please ensure that the document is dated. If the date is after the dispute was initiated the cardholders bank will need to have the cardholder that the chargeback address the documentation. This will not guarantee will not be received a second time. The cardholder is claiming that they have not received the merchandise that we shipped to her two months ago. They have an agreement with the delivery company to leave all their packages at the chargeback? door. Do I have any recourse for this Yes. Obtain a copy of the agreement that the cardholder signed with the delivery company showing that all deliveries are to be left at the door and supply the proof of delivery showing that the pac kage was left at the door. The issuer will have the cardholder review the documentation. This does not guarantee that the chargeback will not be received for a second time. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 117 of 234

118 Dispute Management Guide Cardholder Disputes Dispute Group/ * 54 Cardholder Dispute Not El MasterCard sewhere Classified The issuer may initiate this chargeback when the cardholder has made an unsuccessful good faith effort to resolve the dispute with the merchant that involves goods or services, nst issuers or creditors and the dispute reflects a claim or defense authorized agai - . according to federal, state or local truth - in lending laws central processing date or 60 days after the from 120 calendar days Time Limit: learning of the dispute from the cardholder ote : is re qui red to support the chargeback N Collaborating information Possible Cause  Cardholder received merchandise that was defective damaged or unsuited for the or purpose sold, Merchandise/services did not match the description on the transaction  documentation presented at the time of purcha se, or  face to face - Merchandise/services did not match the verbal description for non transaction presented at the time of purchase Note: Must meet federal, state or local truth in lending laws How to Avoid r goods as originally describe Provide services o d to the cardholder  Resolve  with the cardholder at first contact, disputes and Ensure all federal, state and local laws are followed  Notes: – Merchandise must be returned or attempted to be returned by the same means as it was originally received Acceptance – of disclosure regarding terms/conditions or return/cancellation ding the actual terms disclosed policy is irrelevant, unless dispute is regar How to Defend  ’ s concerns and copies Provide a written rebuttal addressing all of the cardholder or ces, or contracts if applicable, documents, order forms, invoi of all transaction If cardholder has agreed to purchase merchandise in “AS IS” condition; supply  , or documentation to show the cardholder has accepted these terms or d by the cardholder roof that replacement merchandise was receive P  , or roof the cardholder signed for th  e merchandise in good condition, P ’  P s roof that the original transaction did not occur within 100 miles of cardholder residence espond by the  Follow all instructions provided on the chargeback notification and r due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 118 of 234

119 Dispute Management Guide Chargeback Scenarios Scenario #1 . The cardholder A chargeback was received from the issuer for reason code 54 has supplied a letter claiming that they were to have their boat refurbished inside and painted on the out side. The cardholder was notified that the work was complete, however upon inspection the cardholder found that the bathroom was not touched. The cardholder contacted another contractor to confirm that the tain an explanation as to why the work was not complete and contacted you to ob work was not finished as contracted. You set up time with your employees to complete the job and obtain the cardholders signature on the final invoice reflecting that the work has been satisfaction. However the Cardholder has contacted completed to the cardholders How is this their credit card company and their bank initiated a chargeback. remedied? chargeback Answer: You will need to supply a written rebuttal addressing the fact that the bathroom was not fin ished, however the work has since been completed. Supply the written rebuttal and the invoice signed by the cardholder expressing that the work has been completed to the cardholder’s satisfaction. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 119 of 234

120 Dispute Management Guide Reason Codes and Description 4755 RG - Non Receipt of Goods or Services 4553 RM Cardholder Disputes Quality of Goods or Services Developed by: Rev: 04/1 7 First Data Payments Compliance of st Data Confidential & Proprietary to Fir 234 120

121 Dispute Management Guide Dispute Group/ Cardholder Di sputes * - Discover 4755 RG – Non Receipt of Goods or Services The cardholder claims they were charged for a card sale but never received the goods or services (except an ATM Transaction) Time Limit - Issuers may initiate RG Disputes up to 120 calendar days after the scheduled delivery date agreed upon between the Cardholder and the Merchant, but not more than 540 calendar days from the Processing Date. If a delivery date was not provided or agreed upon, then the Issuer may initiate an RG Dispute from to 120 calendar days from the Processing Date. The issuer must wait 15 15 calendar days from the date of cancellation before initiating the dispute. Note : The cardholder must attempt to resolve the dispute with the merchant prior to initiating the charg eback. : The amount of an RG Dispute is limited to the port ion of the Card Sale for Note goods or services not received by the Cardholder. Possible Causes not received or ,  Services not provided or m erchandise was merchandise being shipped charged prior to was ardholder The c  erchandise or m not received by agreed upon delivery date or location was How to Avoid to the cardholder  Provide Services/Merchandise as agreed upon Contact the cardholder in writing if the merchandise or service cannot be provide  d or is delayed, and  Offer the cardholder the option to cancel if your internal policies allow transaction receipt or invoice , Clearly indicate the expected delivery date on the  nd a  Deliver the merchandise to the specified location by the expected date delivery  If unable to deliver merchandise or provide services, issue credit to the cardholder Obtain signed proof of delivery for shipped merchandise   Do not charge the cardholder until the merchandise is shipped How to Defend Provide a signed Proof of Deliver  , or y (POD) for shipped merchandise or Proof that services were rendered,   Any of the following for a Card Not Present Transaction Confirmation of registration to receive electronic delivery of goods or – services me of download, description Cardholder’s email or IP address, date and ti – of goods downloaded or log documenting the receipt of download material on or after the transaction date - store”, Merchant may provide the cardholder’s signature on the – to - “Site up form or copy of Cardholder Identification - pick F  ollow all instructions provided on the chargeback notification and respond by the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 121 of 234

122 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code RG supplying andise ordered was not information from the cardholder stating the merch received. The cardholder contacted you on October 15, 2011 to advise they still have not received the merchandise that was supposed to be received by September 29, 2011. In response to the chargeback, you provided signed proof of delivery dated prior to September 29, 2011 and proof of positive AVS. How would this case be resolved? Answer: The information supplied would be represented to the issuer. However, this would not guarantee that a pre - arbitration case would not b e received. First Data Payments Compliance Rev: 04/1 7 Developed by: st Data Confidential & Proprietary to Fir 234 of 122

123 Dispute Management Guide Reason Codes and Description C02 Credit not Processed Goods/Services Returned or Refused C04 C05 Goods/Service s Cancelled C08 Goods/Services Not Received or Only Partially Received C14 Paid by Other Means “No Show” or CARDeposit Cancelled C18 Cancelled Recurring Billing C20 C31 Goods/Services Not As Described Good/Services Damaged or Defective C32 icle Rental M10 Veh – Capital Damage Theft or Loss of Use – Vehicle Rental M49 First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 123 of 234

124 Dispute Management Guide * Dispute Group/Cardholder Disputes Credit Not Processed AMEX C02 American Express has not received the credit or partial credit that was to be applied to the card. or transaction cessing date of the from the pro calendar days 120 – Time limit from the date on the written acknowledgment from the merchant that credit is due. Retrieval Required : No Possible Cause Merchant accepted return/cancellation and did not issue a credit , or not processed  or timely  Credit was not issued for the full amount How to Avoid the refund policy for returned/ cancelled merchandise, or  P roper disclosure of services must be provided to the cardholder at the time of transaction – containing Card present: cardholder signed the transaction receipt disclosure – Ecommerce: provide disclosure on website on same page as check out click to accept showing cardholder must ” prior to completion “  he same account as the purchase and for the on t cardholder Issue credit to the manner correct amount in a timely Ensure d  or services ordered to the cardholder on or eliver y of the merchandise before expected delivery date Process all transactions using the proper transaction code  Defend How to ccepted by the Show credit not due by providing proper proof of disclosure was a  cardholder at the time of the transaction Card present: cardholder signed the transaction receipt containing – disclosure – Ecommerce: provide disclosure on website on same page as check out prior to com ” click to accept “ showing cardholder must pletion  Provide explanation of why credit is not due or returned merchandise was not received Follow all instructions provided on the chargeback notification and respond by  . the due date provided Provide a copy of the transaction documentation to prove i  t was processed under the appropriate transaction code First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 124 of 234

125 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code C02. The cardholder has supplied a letter claiming that the merchandise for the transaction was returned ; however, a credit was not issued. Your rebuttal states that a credit slip was never provided or promised and the merchandise was not received. How would this chargeback be resolved? would be r chargeback This Answer: . eturned to AMEX to review 2 rio # Scena A chargeback was received from the issuer for reason code C02. The cardholder - returned merchandise that was purchased on their credit card. You supplied an in store credit slip. The cardholder refused and requested credit to their credit card ch was denied. How would this chargeback be resolved? whi store - You would need to supply proper disclosure that an in Answer: credit slip would be given for all returns. This disclosure must be signed . With this proof chargeback and acknowledged by the , the cardholder . returned to AMEX to review would be First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 125 of 234

126 Dispute Management Guide Dispute Group/Cardholder Disputes * AMEX C04 Returned or Refused Goods/Services The goods or services were returned or refused but the cardholder did not receive credit. cessing date of the transaction or 120 Time limit – calend from the pro ar days from the date goods or Services were cancelled, refused, or returned by the Cardmember Possible Cause was not issued, or not processed Merchandise was returned or refused and credit  timely id How to Avo cancelled merchandise, or  roper disclosure of the refund policy for returned/ P services must be provided to the cardholder at the time of transaction Card present: cardholder signed the transaction receipt containing – disclosure ure on website on same page as check out Ecommerce: provide disclos – showing cardholder must prior to completion ” click to accept “  Issue credit to the cardholder on t he same account as the purchase and for the correct amount in a timely manner or se rvices ordered to the cardholder on or the merchandise y of eliver Ensure d  before expected delivery date Defend How to Show credit not due by providing proper proof of disclosure was accepted by the  cardholder at the time of the transaction – Card present: cardholder signed the transaction rec eipt containing disclosure Ecommerce: provide disclosure on website on same page as check out – ” click to accept “ showing cardholder must prior to completion  Provide explanation of why credit is not due or returned merchandise was not received Follow all ins tructions provided on the chargeback notification and respond by  the due date provided . Provide a copy of the transaction documentation to prove it was processed under the appropriate transaction code First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 126 of 234

127 Dispute Management Guide Dispute Group/Cardholder Disputes * AMEX C05 /Services Cancelled ds Goo The goods or services ordered were cancelled. from the processing date of the transaction or calendar days Time limit – 120 from the date goods or Services were cancelled, refused, or returned by the Cardmember Possible Cause  was not issued, or not d credit rchandise or services were cancelled an Me processed timely How to Avoid the refund policy for returned/  cancelled merchandise, or P roper disclosure of transaction of at the time must be provided to the cardholder services – present: cardholder signed the transaction receipt containing Card disclosure – Ecommerce: provide disclosure on website on same page as check out prior to completion ” showing cardholder must “ click to accept Issue credit to the  the purchase and for the he same account as on t cardholder correct amount in a timely manner Ensure d  or services ordered to the cardholder on or eliver the merchandise y of before expected delivery date Defend How to y the Show credit not due by providing proper proof of disclosure was accepted b  cardholder at the time of the transaction – Card present: cardholder signed the transaction receipt containing disclosure Ecommerce: provide disclosure on website on same page as check out – click to accept “ prior to completion ” showing cardholder must P  rovide explanation of why credit is not due or returned merchandise was not received  Follow all instructions provided on the chargeback notification and respond by Provide a copy of the transaction documentation to prove . the due date provided essed under the appropriate transaction code it was proc First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 127 of 234

128 Dispute Management Guide * Dispute Group/Cardholder Disputes AMEX C08 Goods /Services Not Received or Only Partially Received The cardholder claims to have not received or only partially received the goods/services. 120 – t Time limi from the processing date of the transaction. calendar days Possible Causes , not received was erchandise Services not provided or m or  erchandise was The cardholder charged prior to merchandise being shipped or m  not received by agreed upon deli very date or location was How to Avoid  Provide Services/Merchandise as agreed upon to the cardholder Contact the cardholder in writing if the merchandise or service cannot be provided  or is delayed, and  l policies allow the option to cancel if your interna cardholder Offer the transaction receipt Clearly indicate the expected delivery date on the or invoice  , and  Deliver the merchandise to the specified location by the expected delivery date ardholder If unable to deliver merchandise or provide services please notify the c  in writing and issue credit  Obtain signed proof of delivery for shipped merchandise  Do not charge the cardholder until the merchandise is shipped How to Defend  Provide a signed Proof of Delivery (POD) including delivery date and full shipping add or , for shipped merchandise ress or Proof that services were rendered including the dates,  ro Evidence to p  ve that there is a direct connection between the person who received the goods and services and the Card Memb er (e.g., photographs, emails). net Transactions representing the sale of Internet Electronic Delivery For Inter Charge, one (1) of the following must be provided: Proof that the Card Member’s IP address at the time of purchase matches – the IP address where the digital goods were downloaded; or Pro – of the Card Member’s email address provided at the time of purchase matches the email address used to deliver the digital goods; or – Proof that the Program Merchant’s website was accessed by the Card Member for services after the Transaction Date  : following for a Card Not Present Transaction Any of the Confirmation of registration to receive electronic delivery of goods or – services First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 128 of 234

129 Dispute Management Guide – Cardholder’s email or IP address, date and time of download, description of goods downloaded, or log documenting the receipt of download material on or after the transaction date – - to - “Site provide the cardholder’s signature on the hant must store”, Merc pick - up form or copy of Cardholder Identification Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 supplying A chargeback was received from the issuer for reason code C08 information from the stating the merchandise ordered was not cardholder cardholder to advise they still 4 1 contacted you on October 15, 20 received. The have not received the merchandise that was supposed to be received by September 4 29, 201 . In response to the chargeback, you provided signed proof of delivery . How would this case be resolved? 4 dated prior to September 29, 201 : Answer The information supplied would be provided to AMEX. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 129 of 234

130 Dispute Management Guide Dispute Group/Cardholder Disputes * AMEX C14 Means Paid by Other The cardholder has provided AMEX with proof of payment by another method. – Time limit calendar days from the process ing date of the transaction. 120 Possible Cause Cardholder paid the merchant for a purchase of goods or services using another  method of payment and amounts should not be billed to the account How to Avoid  Accept only one form of payment per transaction , and  is only billed once per transaction the cardholder Ensure In the event that two or more forms of payment are accepted for one transaction,  document each form of payment on one transaction receipt confirming that the total of the purchase total of all payments do not exceed the How to Defend  Provide documentation showing that the cardholders other form of payment was not related to the disputed charge, or  Provide proof the cardholder provided consent to use the card as a valid form of d charge payment for the dispute  Documentation to prove they are separate transaction and an explanation of the transactions First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 130 of 234

131 Dispute Management Guide * Dispute Group/Cardholder Disputes ” or CARDeposit Cancelled “No Show AMEX C18 The cardholder claims to have cancelled a lodging reservation or a credi t for a CARDeposit charge was not received by the cardholder. Time limit – 120 calendar days from the processing date of the transaction or from the date goods or Services were cancelled, refused, or returned by the Cardmember Possible Cause cancelled a lodging reservation, however has not received a credit  Cardholder How to Avoid cancellation upon Issue credit  or of reservation by the cardholder, Obtain magnetic swip  e or imprint and signed folio reflecting cardholders stay or all cancellations Provide cancellation number f and ,   is aware of cancellation policy at the time of the reservation cardholder Ensure Defend How to Provide documentation that supports the validity of the “no show” reservation or  CARDeposit charge, or proving the  A signed, imprinted or magnetic stripe read folio/transaction receipt - or not processed due to a No Show, transaction was cardholder roof the cancellation policy was properly disclosed to the P  at the time of the reservation First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 131 of 234

132 Dispute Management Guide Dispute Group/Cardholder Disputes * AMEX C28 ed Recurring Billing Cancell The cardholder claims to have cancelled or attempted to cancel Recurring Billing Charges for goods or services. Please discontinue all future billing for this Recurring Billing Charge. – Time limit essing date of the transaction from the proc calendar days 120 Possible Cause Cardholder canceled a recurring transaction; however, they continued to be billed  after cancellation How to Avoid cation notifi recurring billing as soon as ancel the C  is received from the customer, and  Issue a credit as needed to the cardholder in a timely manner Notify cardholder and receive authorization to increase transaction amount to  continue billing Ensure billing and cancellation terms are clear in the contract   Do not continue to bill the cardholders a ccount after a chargeback has been received Defend How to  Evidence that the Cardholder did not cancel the Recurring Payments Plan in accordance with the Merchant’s policy  Provide a copy of the cancellation policy, an explanation of the procedures for osing it to the cardholder, and details explaining how the cardholder did not discl follow the cancellation policy Proof that the cardholder has not cancelled and continues to use the services or  receive the goods Follow all instructions provided on the chargeba  ck notification and respond by the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 132 of 234

133 Dispute Management Guide Dispute Group/Cardholder Disputes * AMEX C31 /Services Not As Described Goods The cardholder claims to have received goods/services that are different than the written description provided at the time of the charge calendar days from the processing date of the transaction. 120 Time limit – Possible Cause Merchandise/services did not match the description on the transaction  or documentation presented at the time of purchase, face to face - not match the verbal description for non Merchandise/services did  transaction presented at the time of purchase  Cardholder claims that goods or services were not as represented by the Merchant How to Avoid issue with the the esolve cardholder at first contact  R merchandise or services as described to the cardholder  Provide Defend How to  that goods and services matched what was described at the time of purchase Proof , (e.g. photographs, emails) or  For goods and services purchased by the cardholder that were received in a damaged or defective state, provide one (1) or more of the following: – Proof an attempt was made to repair or replace goods or provide replacement services If returned, state how cardholder did not comply with the clearly – olicy, or Applicable Law documented cancellation, return p – Proof that the cardholder agreed to accept the goods/services as provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 133 of 234

134 Dispute Management Guide * Dispute Group/Cardholder Disputes AMEX C32 Goods /Services Damaged or Defective The cardholder claims to have received damaged or defective goods/servic es 120 – Time limit from the processing date of the transaction. calendar days Possible Cause Cardholder  that was defective damaged or unsuited for the received merchandise or purpose sold, e, and the  Cardholder claims that goods received were damaged or defectiv cardholder returned the goods to the Merchant How to Avoid After inspection, obtain the cardholder’s signature that the merchandise was  received in good condition  In the event that the cardholder received merchandise that was not as described, cardholder issue with the the esolve r at first contact Provide merchandise or services as described to the cardholder  Defend How to  Proof refuting the cardholders claim that the good/services were damaged or defective provided that, in the case of goods, they were not returned to the or merchant), Proof that the cardholder agreed to accept the goods/services as delivered, or   Proof the cardholder was aware that the merchandise was purchased in "as is" condition (signed disclosure, screen print for ecommerce or cardholder admits in or letter they purchased merchandise “as is”), Proof that replacement merchandise was shipped along with proof of delivery, or   If replacement merchandise is in the process of being shipped provide a shipping or date, goods/services were not returned to the merchant Proof that the , or  Proof that an attempt was made to repair or replace damaged or defective goods or  or provide replacement services ,  If returned, state how cardholder did not comply with the clearly documented cancellat ion, return policy, or Applicable Law First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 134 of 234

135 Dispute Management Guide Dispute Group/Cardholder Disputes * M10 AMEX Capital Damages – Vehicle Rental OptBlue process. American Express This reason code is not applicable for Dispute Group/Cardholder Disputes * Theft or Loss of Use Ve M49 AMEX hicle Rental – This reason code is not applicable for American Express OptBlue process. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 135 of 234

136 Dispute Management Guide Processing Errors . Merchant or Acquirer processed a transaction incorrectly Reason Codes and Description Reason Codes and Description – 74 - 31 Late Presentment Transaction Amount Differs 76 34 – Incorrect Currency or Domestic Point of Interaction – Transaction Processing Violation 42 - Late Presentment 80 – Incorrect Transaction Amount or 46 - Correct Transaction Currency Code Account Number Not Provided Duplicate Processing – 82 d the above MasterCard condense  Paid by Other Means – 86 reason codes into 34; however MasterCard will continue to allow the issuer to use the separate codes MasterCard condensed the above  reason codes into 53; however MasterCard will continue to allow the issuer to use the separate codes First Data Payments Compliance 7 Rev: 04/1 Developed by: 136 Confidential & Proprietary to Fir st Data of 234

137 Dispute Management Guide Dispute Group/ Processin g Error * Visa 74 L ate Presentment ed transaction was not process The within the required processing timeframe. of the transaction central processing date the from 120 calendar days - Time limit Possible Cause -  Currently n on ssed Electron and Prepaid Load servic e transactions were not proce days within 20 not processed within calendar days Electron c ard transactions 5   Prepaid Load s ervice transactions not processed within 2 calendar days the original  All other transactions that are not processed within 8 calendar days o f (for domestic transaction date; no exceptions for multiple merchant outlets 5 calendar days) eturns and credits in the U.S., the timeframe is merchandise r How to Avoid timeframes specified by Visa  Process all transactions with in the required F  or LAC region, H&C transactions must be processed within 10 days from the out date check - How to Defend transaction was deposited and processed within the required Provide proof the  time limit and respond by Follow all instructions provided on the chargeback notification  the due date provided Chargeback Scenarios Scenario #1 processed a You A chargeback was received from the issuer for reason code 74. th ; however the manual transaction receipt from an offsite location on April 10 , leted in February. The issuer attempted to post the transaction was comp ; however chargeback transaction be How would this , the account was closed. resolved? since the issuer was not chargeback There is no remedy for this Answer: dholder ’ able to post the transaction to the car s account . All transactions the required timeframe that is specified by Visa. must be processed within First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 137 of 234

138 Dispute Management Guide Processing Errors Dispute Group/ * Incorrect Currency or Transaction Code or 76 Visa Domestic Transaction Processing Violation T his reason code is for incorrect transaction code, incorrect currency code or transaction receipt not deposited in the country where the transaction occurred, the cardholder was not advised that Dynamic Currency Conversion would occur or refused the choice of paying in the merchant’s local currency, or the merchant processed a credit refund and did not process a reversal or adjustment within 30 days for a transaction receipt processed in error. central processing date 120 calendar days from of the transaction - Time limit the Possible Cause  transaction was processed as a ; however, the Merchant intended to issue a credit sale Transaction was to be processed in a currency other than the currency used to  settle the transaction How to Avoid rocess with proper transaction code accurately ed ns are p Ensure all transactio   A merchant must process a reversal or an adjustment within 30 calendar days if it processed a transaction receipt in error  The debit in error must be reversed using a reversal transaction code or an adjustment message Process all transactions in the proper currency as stated on the transaction receipt  Ensure that credit transaction receipts are processed as credits and sale transaction  receipts are processed as sales Transaction receipt must in dicate the applicable currency Note: How to Defend  Provide a copy of transaction receipt or other documentation to prove processed under appropriate transaction code Documentation to prove the transaction was processed utilizing the appropriate  transaction code currency code or Follow all instructions provided on the chargeback notification and respond by  the due date provided First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 138 of 234

139 Dispute Management Guide Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 76 , for double the The cardholder has contacted their bank claiming that . ion amount of the transact which was not processed. receipt they were issued a credit What is the resolution of this chargeback ? The issuer’s due to the fact amount chargeback is for the correct Answer: receipt however , ; dholder was to receive a credit for the credit that the car they were actually charged again. Therefore the cardholder is due a credit receipt . The only for the billing and a credit as a result of the credit the cardholder was not due a credit recourse would be to supply proof that and the second billing was a valid charge. 2 Scenario # A chargeback was received from the issuer for reason code 76 claiming the ’ s cardholder the transaction was to be processed in Canadian dollars ; however , chargeback saction was processed in US dollars. How can this tran be resolved? Answer: Documentation can be supplied to show that the ’ s cardholder eflects US dollars and that the sale receipt r was processed properly in US dollars. 3 Scenario # ack was received from the issuer for reason code 76, for double the A chargeb The cardholder has contacted their bank claiming that they amount. transaction were issued a credit slip which was not processed. What is the resolution of this ? chargeback Answer: amount The issuer’s chargeback is for the correct due to the fact , that the cardholder was to receive a credit for the credit slip; however they were actually charged again. Therefore the cardholder is due a credit for ecourse would be to esult of the credit slip. the billing and a credit as a r R supply proof that the cardholder was not due a credit and the second billing was a valid charge. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 139 of 234

140 Dispute Management Guide * Dispute Group/ Processing Errors Incorrect Transaction Amount or Account Number Visa 80 ccount The transaction w as processed using an incorrect a or transaction amount n umber . of the transaction central processing date the 120 calendar days from - Time Limit Possible Cause The account number or transaction  amount was incorrectly entered How to Avoid are correct prior to Confirm  that the transaction amount and account number rocess ing p  Do not alter transaction documentation or make any adjustments unless the of the transaction cardholder has been contacted and agrees to any modifications amount avoid hand writing the a imprint ccount number on the Do not  the and alter transaction receipt Obtain a manual imprint when the card is unable to be read electronically  ing the account number key enter When – compare the account number entered to the imprint of the card pr ior to processing the sale How to Defend , Provide  transaction documentation showing the account number billed and cardholder agreed to the altered  If the amount was altered provide proof th at the amount ct and authorization was the account number is corre , proof ransaction t MO/TO  obtained  supply proof of valid amended charges , T&E transactions For Chip & Chip PIN: Provide documentation supporting the transaction was  processed with a Chip or Chip PIN Follow all instructions provided on the chargeback notific ation and respond by  the due date provided Chargeback Scenarios Scenario #1 has The cardholder A chargeback was received from the issuer for reason code 80. transaction. contacted their bank stating that they were overcharged by $24.00 on a chargeback we remedy this How do ? Answer: reflecting the full unaltered amount will A transaction receipt need to be provided. If a change was made after the cardholder agreed to the sale, documentation will need to be provided that reflects that ca rdholder agreed to the change. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 140 of 234

141 Dispute Management Guide 2 Scenario # A chargeback was received from the issuer for reason code 80, claiming the You have supplied a transaction was processed on an incorrect account number. t receip and a transaction receipt copy of an imprinted from the POS terminal. The imprint differs from the account number billed. How do we remedy this ? chargeback Answer: reflects the account number billed transaction receipt If the The along with a valid authorization code; the chargeback is remedied. correct account was billed. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 141 of 234

142 Dispute Management Guide Dispute Group/ Processing Errors * Visa Duplicate Processing 82 once n A single transaction was processed more tha to the cardholders account. 120 calendar days from - the Time Limit central processing date of th e transaction Possible Cause  A single transaction was processed more than once to the cardholder ’ s account The bank copy and the merchant copy of the transaction receipt was sent to be  processed If you submit paper POS device was batched out twice  dr afts for processing How to Avoid ensure only bank  Ensure trans actions are not processed multiple times copies or one copy of the sales draft is – more than once processed was In the event that a transaction submitted. mmediately issue voids, transaction reversals or ; i in error cred its How to Defend  Provide valid legible copies of all transaction documentation which cou ld include: T – and/or , transaction receipts wo – T wo invoices , and flecting different transactions temization re I –  Provide documentation to support transactions were processed as Chip transactions (e.g. application counters are different) Follow all instructions  provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code 82. Two different you; however, by receipts reflecting the same amount were previously supplied chargeback did the receipts not reflect different items were purchased. Has this been resolved? they have but supplied two separate transaction receipts you No, Answer: not proven that two separate transactions occurred. First Data Payments Compliance Developed by: Rev: 04/1 7 Confidential & Proprietary to Fir 142 of 234 st Data

143 Dispute Management Guide oup/ Dispute Gr * Processing Errors V isa Paid By Other Means 86 A transaction was paid by an alternate means and also posted to the card payment cardholder ’ s account 120 calendar days from Time Limit - the central processing date or 120 days from dated credit slip Possible Caus e ;  Cardholder initially presented card as payment for the transaction however , n alternate m of payment cardholder decided to use a for How to Avoid and Accept ,  one form of payment per transaction only per transaction cardholder is only billed once the Ensure  In the event that two or more forms of payment are accepted for one transaction,  document each form of payment on one transaction receipt confirming that the total of all payments do not exceed the total of the purchase are not to be used to recover funds from previous Credit cards Note: ere a financial loss occurred chargebacks, bad checks or any other incident w h How to Defend Provide proof  was not paid for by an alternate means the transaction  re Documentation to prove the nsaction and an explanation of the are separate tra transactions  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 The ca A chargeback was received from the issuer for reason code 86. rdholder in; however, th e - checked into a hotel and provided their credit card upo n check ir final bill was paid by cash. The cardholder receives the credit card bi ll which yment for the hotel stay. The i reflects a pa ssuer has provided documentation tha t cardholder chargeback s be ’ copy of the cash receipt. How would this includes the remedied? you would be able to request this case to be represented if You Answer: can provide proof that the bill on the credit card is not for the same stay as the bi ll that was paid via cash. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 143 of 234

144 Dispute Management Guide Dispute Group/Processing Errors * MasterCard Point of Interaction Error 34 The transaction was processed for an incorrect transaction amount, or the cardholder is card payment also posted to stating that the transaction was paid by alternate means and the cardholder’s account. A transaction posted more than 7 calendar days for electronic or more than 14 calendar days for paper after the transaction date and the account is closed. t currency code for the currency in which A transaction was processed using an incorrec in the transaction was completed. A single transaction was processed more than once . ATM Dispute : error to the cardholders account The cardholder received no funds or only a part of an ATM cash disbursement . MasterCard is consolidating the following reason codes under Reason Code 34. Not e: Reason Code 34 has been renamed “Point of Interaction Error” Transaction Amount Differs  31  34 Duplicate Processing Late Presentment 42  t Provided Correct Transaction Currency Code No 46  Reason Codes 31, 34, 42, 46 may continue to be used. central processing date the from 120 calendar days - Time Limit of the transaction Possible Causes  The transaction amount was incorrectly entered  cardholder’s credit card was also Payment was made by alternate means and the billed  Transaction was not deposited within 7 calendar days for electronic transactions  Transaction was not deposited within 30 calendar days for paper transactions  the currency used to Transaction was to be processed in a currency other than settle the transaction  A single transaction was processed more than once to the cardholder’s account The bank copy and the merchant copy of the transaction receipt  If you submit paper was sent to be processed drafts for processing ensure only bank  POS device was batched out twice copies or one copy of  ATM not fu and only a portion of the funds or nctioning properly the sales draft is no funds were received by the cardholder, or submitted.  Cardholder failed to receive cash disbursement How to Avoid Confirm that the transaction amount is correct prior to processing  nt per transaction Accept only one form of payme   Do not alter transaction documentation or make any adjustments unless the cardholder has been contacted and agrees to any modifications of the transaction amount Developed by: First Data Payments Compliance Rev: 04/1 7 144 234 of st Data Confidential & Proprietary to Fir

145 Dispute Management Guide the cardholder is only billed once per transaction  Ensure – In the event that a transaction was processed more than once; immediately issue voids, transaction reversals or credits – In the event that two or more form of payment are accepted for one transaction, document each form of payment on one transaction receipt confirming that the total of all payments do not exceed the total of the purchase  Ensure all dispensing machines are operating properly Process all transactions within the required timeframe  Process all transactions in the proper currency as stated on the transaction  rec eipt  Credit cards are not to be used to recover funds from previous chargebacks, Note: bad checks or any other incident where a financial loss occurred. How to Defend  Provide valid legible copies of all transaction documentation which could include: , ansaction receipts tr Two – and/or , and Two invoices – – Itemization reflecting different transactions – Proof the cardholder agreed to an altered amount (For T&E transactions supply proof of valid amended charges) – Reflection of utilizing the appropriate currency code P rovide proof the cardholder received the total amount of funds that were  requested Provide proof the transaction was deposited and processed within the required  timeframe Follow all instructions provided on the chargeback notification and respond by  e date provided the du Frequently Asked Questions We received a chargeback due to the fact that the cardholder was billed incorrectly. This error has been confirmed. Do I issue a credit now? No. The issuer has given a credit to the cardholder as a result of the chargeback. Unless the chargeback is for the incorrect amount; no further action is required. – Incorrect Transaction A chargeback has been received for Visa Reason Code 76 y is Code. The cardholder claims that they did not receive a credit for $50.00, wh the chargeback in the amount of $100.00. A valid use of this code is that the cardholder was billed an original sale. They are entitled to a refund; however, the refund was not processed as a credit it was processed as a sale. Therefore the cardhold er is now due First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 145 of 234

146 Dispute Management Guide credit for the original refund and the second sale that was posted to their account. When a T&E transaction is being charged back because it was presented late (Reason Codes 74 for Visa and 42 for MasterCard); how is the transaction date ulated? calc The transaction processed date is calculated from the original transaction date that is listed on the transaction document to the posting date of the transaction. Notes:  Vehicle Rental and Hotel Merchants – The transaction date is the date that t he vehicle was returned to the rental agency for Vehicle Rental Merchants.  Hotel transaction dates are the date that cardholder checked out of the hotel. Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code refl ecting that the 34 cardholder was billed twice for the same transaction. How would this chargeback be resolved? Answer: chargeback By supplying two different transaction receipts, this can be chargeback represented. This is not a guarantee that a for a different reason code would not be received. Scenario #2 A chargeback was received from the issuer for a reason code 34. The cardholder has supplied a copy of their bill reflecting they were to be billed $156.00. They were billed a total of $200.00 on the ir credit card. The chargeback has been received from the difference of $44.00. How would this chargeback be resolved? Provide an unaltered document to show that the cardholder’s Answer: t was final bill that was agreed upon was $200.00. If the transaction amoun altered without the consent of the cardholder this chargeback would be valid. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 146 of 234

147 Dispute Management Guide Reason Codes and Description 4586 AW Altered Amount 4550 CD Credit Posted as Card Sale 4534 DP Duplicate Processing Late Presentment 4542 LP Non - Receipt of Cash from ATM 4864 NF Credit Not Received 8002 RN2 Good Faith Investigation 4672 05 Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data of 234 147

148 Dispute Management Guide Processing Errors Dispute Group/ * – Altered Amount Discover 4586 AW lder’s The transaction amount agreed to by the cardholder was altered without the cardho consent or direction after the cardholder signed the transaction documentation. This includes Cash Advance Transactions. of the transaction the 120 calendar days from - Time limit processing date Possible Cause  The cardholder signed and agreed to th e amount indicated on the transaction documentation; however, the system posted a different amount to the cardholder’s account  The cardholder agreed to a tip amount by signing the transaction documentation but the system posted a different tip amount to th e cardholder’s account  The cardholder agreed to a certain card transaction amount, but the system posted a different amount to the cardholder’s account ATM dispensed an amount different from the amount charged to the Account (not  fee or service charges) including any agreed upon Cardholder approved the amount indicated on the Transaction Documentation for  a Cash Advance, Cash Over or an ATM Transaction and signed the Transaction. Documentation, if applicable, but different amounts of cash were dispensed and charged to the account.  Cardholder did not request Cash Over as part of a Card Sale for the purchase of goods and did not receive cash, but cash over was charged to the account How to Avoid ation has been Ensure that all transactions are processed correctly and no alter  made to the transaction  Be sure all sales drafts are written clearly and calculated correctly How to Defend  Provide a copy of the sales draft showing that there is no error in the transaction amount or credit amount processed Follow all inst  ructions provided on the chargeback notification and respond by the due date provided Transaction Document signed by the cardholder indicating the cardholder agreed  to the amount printed on the Transaction Documentation in a Cash Advance, Cash Over, or ATM transaction Evidence that the Cardholder received cash  Evidence that a Credit was issued to the Account to correct the error  First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 148 of 234

149 Dispute Management Guide Chargeback Scenarios Scenario #1 because the A chargeback was received from the issuer for reason code AW cardholder states a “0” was added to the amount of the transaction they approved. What do you need to supply? Supply a signed mag swipe read or signed imprinted sale Answer: showing the transaction amount is clear and legible and no alterations have been made to any of the numbers written on the receipt. Rev 04/17 First Data Payments Compliance Developed by: 234 149 Confidential & Proprietary to First Data of

150 Dispute Management Guide Processing Errors Dispute Group/ * Credit Posted as Card Sale Discover 4550 CD – The cardholder was debited for a transaction that should have been a credit transaction. ng date processi 120 calendar days from - Time Limit of the transaction. the Note : The chargeback is valid for double the amount of the transaction. Possible Cause  The cardholder made a purchase from the merchant; however, a credit rather than a card sale was posted to the cardholder’s account void How to A  Ensure all transactions are processed using the correct transaction code How to Defend  Provide a transaction receipt or other record that indicates the Card Transaction was posted correctly Follow all instructions provided on the chargeback notificati  on and respond by the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code CD the Issuer supplied a credit receipt from the cardholder who states the charge should be a credit. What do you need to supply as a rebuttal? Answer: Proof that the transaction in question should be a charge to the – signed mag swipe read or signed imprinted transaction. cardholder Also, you would need to address the credit slip supplied by showing that it as applied against a charge or that credit was issued. w First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 15 0 of 234

151 Dispute Management Guide Processing Errors Dispute Group/ * Discover 4534 DP Duplicate Processing – dispute must be for The cardholder was charged two or more times for the same sale; me amount transactions on the same date for the sa and the cardholder did not receive benefit from more than one sale. This includes an ATM transaction, or Cash Advance. - Time Limit the 120 calendar days from processing date. Possible Caus e Multiple card sales were posted to the cardholder’s account on the same date, with  a dollar amount difference of no more than 20% from the amount of the card sale involving the same merchant Multiple card sales were posted to the cardholder’s account on the same date, for  same merchant location the same dollar amount, and at the How to Avoid  Ensure transactions are processed only once  If duplication occurs, notify us immediately How to Defend Provide legible copies of two different sales to refute the issuer’s claim of  duplicate processing – s may be helpful if there are multiple transactions Detailed invoice involved Provide proof of credit issued or transaction reversals processed to correct the  duplicate billing Follow all instructions provided on the chargeback notification and respond by  the due date prov ided : If a transaction was duplicated and no reversal has been issued, please accept Note the chargeback. Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code DP reflecting that the the same transaction. How would this chargeback cardholder was billed twice for be resolved? chargeback By supplying two different transaction receipts, this Answer: can be represented. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 151 of 234

152 Dispute Management Guide Processing Errors Dispute Group/ * – Discover 4542 LP Late Presentment ocessed more than 10 calendar days for all industries, with the The transaction was pr following exceptions: 30 days for Lodging, Car Rental, Airlines, Passenger Railway, and other travel merchant category codes. 120 calendar days transaction. Time Limit from the processing date of the - Possible Cause n was delayed due to a POS system issue The transactio  How to Avoid Ensure your transactions are processed in a timely manner  Defend How to  Provide us with a legible copy of the sales receipt showing that the transaction or cessed within the required timeframe; was pro On a delivery order with delayed delivery requirements, you must show you  calendar days of the ship date, 10 obtained a valid authorization response within or expected delivery date, or processing attempt; Provide d  ocumentation such as a signed work order, that the cardholder approved 10 the submission of the transaction for posting to their account more than or calendar days after the date of the sale;  Provide documentation that the merchant completed a custom order , obtained a valid authorization response at the time of order, and submitted the sale as the final payment once the custom order was completed, as indicated in a work order or other agreement signed by the cardholder the chargeback notification and respond by Follow all instructions provided on  the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reason code LP. You processed a th manual transaction receipt from an offsite location on April 10 ; however, t he transaction was completed in February. The issuer attempted to post the transaction; however, the account was closed. How would this chargeback be resolved? since the issuer was not chargeback There is no remedy for this Answer: transaction to the cardholder’s account. All transactions able to post the must be processed within the required timeframe that is specified by . Discover Network First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 152 of 234

153 Dispute Management Guide * Dispute Group/ Processing Errors – Receipt of Cash from ATM - Non Discover 4864 NF The cardholder alleges and ATM Cash Disbursement was charged to an Account, but cash was not dispensed by the ATM. Time Limit from the processing date of the transaction. 120 calendar days - Possible Cause holder  ATM machine did not dispense the cash requested and billed to the card How to Avoid Ensure the ATM is in proper working order  Defend How to Supply ATM log reflecting cash was disbursed  First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 153 of 234

154 Dispute Management Guide * Processing Errors Dispute Group/ Discover 4865 PM Paid by Other Means – cardholder claims their account was charge d for a transaction that was conducted The using another form of payment. Time Limit 120 calendar days from the processing date of the transaction. - Possible Cause  Cardholder paid the merchant for a purchase of goods or services using another ent and amounts should not be billed to the account method of paym How to Avoid one form of payment per transaction and , only Accept  Ensure  cardholder is only billed once per transaction the In the event that two or more forms of payment are accepted for one transaction,  document each form of payment on one transaction receipt confirming that the total of all payments do not exceed the total of the purchase How to Defend  Provide documentation signed by the cardholder indicating the cardholder agreed to the card sale the transaction Provi  was not paid for by an alternate means de proof Documentation to prove they are separate transaction and an explanation of the  transactions First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 154 of 234

155 Dispute Management Guide Dispute Group/ Processing Errors * – Discover 8002 RN2 Credit Not Received fused delivery of goods or services or returned merchandise and credit The cardholder re was not posted to the cardholder’s account as expected. 120 calendar days - Time Limit from the processing date of the transaction. The the cardholder returned the goods issuer must wait 15 calendar days from the date to the merchant or refused the service before initiating an RN2 Dispute. For Card Transactions involving Merchants in the direct marketing, food services, ental industries; Issuers fast food, cruise line, transportation, lodging, and vehicle r may initiate RN2 Disputes up to 120 calendar days from the scheduled event date, but not more than 540 calendar days from the Processing Date. If the scheduled iate a RN2 event date is not available to the Issuer, then the Issuer may init Dispute up to 120 calendar days from the Processing Date. The Issuer must wait 15 calendar days from either: the date of cancellation by the Cardholder of services or a reservation or the date goods were returned, as applicable, before ating a RN2 Dispute. initi The initiation period begins on one of the following dates, as applicable: (a) the Processing Date; (b) the date of the Credit Transaction Receipt; (c) the date of the return; (d) the date of the cancellation; or (e) the date of th e reservation. RN2 Disputes may not be initiated more than 540 days from the dates indicated. Possible Cause  Cardholder refused delivery of goods or services and has not received a credit f credit but  Cardholder returned goods to the merchant and received a promise o credit has not posted to their account How to Avoid  Process all credit vouchers promptly  Properly disclose special refund policies on the sales draft in close proximity to the cardholder’s signature How to Defend Provide us with the date the c redit was issued to verify when the credit was  processed; or Provide a rebuttal addressing the cardholder’s dispute   If a credit has not been issued and should have been, accept the chargeback e cardholder Transaction Documentation signed by the Cardholder indicating th  agreed to the Cash Advance or Cash Over trans Evidence that the Cardholder received cash  Evidence that a Credit was issued to the Account to correct the error, where  Credits are permitted by these Dispute Rules and the Operating Regulations Ev  idence that the Cardholder did not cancel the reservation in accordance with the Merchant’s published policies First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 155 of 234

156 Dispute Management Guide Evidence that the cancellation number provided by the cardholder in support of  the Dispute is invalid and the Card Sale was processed correctly : For a Dispute of a Card Transaction involving shipping or delivery Note obligations by the Merchant is responsible for goods held in its own country’s customs agency. Chargeback Scenarios Scenario #1 A chargeback was received from the issuer for reas on code RN2. The issuer supplied information stating that the merchandise was returned; however, no documentation to show that the merchandise received was returned to you. Your response states that there is no record that the merchandise that the car dholder claims to have returned was received. How would this chargeback be remedied? Answer: The case would be represented back to the issuer with the rebuttal you supplied ; however, this does not guarantee that the chargeback will be resolved. 2 Scenario # A chargeback was received from the issuer for reason code RN2. The issuer supplied information from the cardholder stating that they returned the store credit voucher. Your rebuttal states that - merchandise and received an in there is a si gn posted next to the register that indicates the cardholder will receive - store credit voucher for all returns. Would this rebuttal remedy this an in chargeback? Answer: No. The return policy was not properly disclosed to the cardholder at the time of transaction and the merchandise is in your possession. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 156 of 234

157 Dispute Management Guide Processing Errors Dispute Group/ * – Discover 4762 05 - Good Faith Investigations Chargeback This reason code is assigned by Discover if the acquirer or merchant accepts responsibility for a card transaction subject to dispute. Time Limit - Issuer may initiate within 2 years of the transaction processing date. The acquirer or merchant may submit evidence to Discover that the cardholder has credit to the cardholder in response received duplicate credits, if the merchant applied a to a Good Faith Inquiry and a chargeback was also processed. Otherwise this chargeback appealable. - is final and non First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 157 of 234

158 Dispute Management Guide Reason Codes and Description P01 Unassigned Card Number t Processed as Charge P03 Credi Charge Processed as Credit P04 P05 Incorrect Charge Amount Late Submission P07 Duplicate Charge P08 Matching Card Number P22 Non - P23 Currency Discrepancy Developed by: 7 Rev: 04/1 First Data Payments Compliance Confidential & Proprietary to Fir 234 of 158 st Data

159 Dispute Management Guide * Error Dispute Group/Processing AMEX P01 Unassigned Card Number The merc hant has submitted a charge using an invalid or otherwise incorrect card number. Time limit – 120 calendar days from the processing date of the transaction. Note: The transaction may be resubmitted to American Express if the merchant is able to verify and provide the correct card number Possible Cause Transaction was processed utilizing an incorrect account number  How to Avoid and , a Obtain  valid authorization prior to processing all transactions s Magnetic  - Swipe or imprint all card present transaction How to Defend Copy of the imprint that confirms Card Number,  or Proof that the merchant obtained an authorization approval for such card number,  or Copy of the charge record from the terminal that electronically read the card  number First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 159 of 234

160 Dispute Management Guide essing Error Proc Dispute Group/ * AMEX P03 Credit Processed as Charge The cardholder claims the merchant submitted a sale that should have been a credit. 120 Time limit – from the processing date of the transaction. calendar days Possible Cause  Merchant intended to issue a credit; however, the transaction was processed as a sale How to Avoid  Ensure all transactions are processed accurately with proper transaction code  Ensure that credit transaction receipts are processed as credits and sale transaction ed as sales receipts are process How to Defend  Provide a copy of transaction receipt or other documentation to prove the transaction was to be a sale Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios S cenario #1 A chargeback was received from AMEX for reason code P03, for claiming that they were issued a double the transaction amount. The cardholder is chargeback credit slip which was not processed. What is the resolution of this ? was not due a credit and the Answer: S upply p roof that the cardholder sale was processed properly . First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 160 of 234

161 Dispute Management Guide Processing Error Dispute Group/ * AMEX P04 Charge Processed as Credit The cardholder claims the merchant submitted a credit that should have been a sale. calendar days 120 – Time limit from the processing date of the transaction. Possible Cause Merchant intended to issue a sale; however, the transaction was processed as a  credit How to Avoid  e Ensure all transactions are processed accurately with proper transaction cod Ensure that credit transaction receipts are processed as credits and sale transaction  receipts are processed as sales How to Defend Provide a copy of transaction receipt or other documentation to prove the  transaction was to be a credit ctions provided on the chargeback notification and respond by  Follow all instru the due date provided First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 161 of 234

162 Dispute Management Guide Processing Errors Dispute Group/ * Incorrect Charge Amount AMEX P05 The transaction amount submitted differs from the amount the cardholder agreed to pay. 120 – Time limit from the processing date of the transaction. calendar days Possible Cause  The transaction amount was incorrectly entered How to Avoid Confirm that the transaction amount is correct prior to processing  any adjustments unless the Do not alter transaction documentation or make  cardholder has been contacted and agrees to any modifications of the transaction amount How to Defend  and Provide transaction documentation showing the amount billed, If the amount was altered at the  agreed to the altered cardholder th provide proof amount Follow all instructions provided on the chargeback notification and respond by  the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from AMEX for reason code P05. has The cardholder contacted AM EX stating that they were overcharged by $24.00 on a transaction. How do we remedy this chargeback ? Answer: transaction receipt A reflecting the full unaltered amount will agreed to need to be provided. If a change was made after the cardholder the s ale, documentation will need to be provided that reflects that cardholder agreed to the change. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 162 of 234

163 Dispute Management Guide Processing Error Dispute Group/ * Submission AMEX P07 Late The charge was not submitted within the required timeframe. – Time limit the processing date of the transaction. from calendar days 120 Possible Cause Transaction was not deposited within 7 calendar days of the original transaction  date How to Avoid in the required Process all transactions with  timeframes specified by AMEX How to Defend Provide proo f the transaction was deposited and processed within the required  time limit  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from AMEX for r eason code P07. You completed a th sale on April 10 ; however, the transaction was processed in June. How would this chargeback be resolved? since Answer: the transaction was chargeback There is no remedy for this . timeframe not processed within the required 7 day First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 163 of 234

164 Dispute Management Guide Processing Error Dispute Group/ * AMEX P08 Duplicate Charge An individual charge was processed to the cardholder’s account. from the processing date of the transaction. calendar days 120 – Time limit Possible Cause s processed more than once to the cardholder’s account  A single transaction wa  POS device was batched out twice How to Avoid  Ensure transactions are not processed multiple times In the event that a transaction was processed more than once in error; – action reversals or credits immediately issue voids, trans How to Defend  Provide valid legible copies of all transaction documentation which could include: Two transaction receipts, and/or – Two invoices, – and Itemization reflecting different transactions –  Follow all instructions provided on the chargeback notification and respond by the due date provided Chargeback Scenarios Scenario #1 A chargeback was received from AMEX for reason code P08. Two different by you; however, previously supplied receipts reflecting the same amount were not reflect different items were purchased. Has this th e receipts did chargeback been resolved? No, you supplied two separate transaction receipts but they have Answer: not proven that two separate transactions occurred. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 164 of 234

165 Dispute Management Guide rs Processing Erro Dispute Group/ * AMEX P22 Matching Card Number - Non card number in the transaction does not match the card number in the original The charge. – calendar days 120 from the processing date of the transaction. Time limit Possible Cause ctly entered The account number was incorre  How to Avoid Confirm that the account number is correct prior to processing  Do not alter the imprint and avoid hand writing the account number on the  transaction receipt Obtain a manual imprint when the card is unable to be read electronicall y  When key entering the account number compare the account number – entered to the imprint of the card prior to processing the sale How to Defend Provide transaction documentation showing the account number billed  geback notification and respond by Follow all instructions provided on the char  the due date provided Chargeback Scenarios 1 Scenario # A chargeback was received from AMEX for reason code P22, claiming the transaction was processed on an incorrect account number. You have supplied a copy of an imp rinted transaction receipt and a receipt from the POS terminal. The imprint differs from the account number billed. How do we remedy this chargeback? Answer: reflects the account number billed If the transaction receipt n code; the chargeback is remedied. The along with a valid authorizatio correct account was billed. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 165 of 234

166 Dispute Management Guide Processing Errors Dispute Group/ * Currency Discrepancy AMEX P23 The charge was incurred in an invalid currency. calendar days – 120 from the processing date of the tran saction. Time limit Possible Cause  Transaction was to be processed in a currency other than the currency used to settle the transaction How to Avoid  Process all transactions in the proper currency as stated on the transaction receipt Note: Transaction receipt must indicate the applicable currency How to Defend  Provide a copy of transaction receipt or other documentation to prove processed under appropriate currency code Follow all instructions provided on the chargeback notification and respond by  ided the due date prov First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 166 of 234

167 Dispute Management Guide Compliance Dispute appealable decision - financial request which will turn financial after accepted or non - Non is received from Discover. Reason Codes and Description 6050 DC Dispute Compliance First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 234 of 167

168 Dispute Management Guide *Dispute Group/Processing Errors Dispute Compliance Discover 6050 DC – erchant did not comply with the requirements of the applicable Operating The m Regulations in conduction the transaction. no from the processing date of the transaction, 120 calendar days - Time Limit later than 540 calendar days. Possible Cause Collusive  chant Fraud Mer  Prohibited Merchants  How to Avoid  Adhere to Discover rules and regulations when processing all credit card transactions How to Defend  No r ecourse First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 168 of 234

169 Dispute Management Guide Disputes Chargeback Program American Express has added the merchant to a specified chargeback p rogram Reason Codes and Description Fraud Full Recourse Program FR2 Immediate Chargeback Program FR4 Partial Immediate Chargeback Program FR6 Developed by: First Data Payments Compliance Rev 04/17 Confidential & Proprietary to First Data 169 of 234

170 Dispute Management Guide Dispute Group/ Processing Errors * AMEX FR2 Fraud Full Recourse Program The cardholder denies authorizing the charge and the merchant has been placed in the Fraud Full Recourse Program. processing date of the transaction. from the calendar days – Time limit 120 Possible Cause American Express places the merchant on the Fraud Full Recourse Program  How to Avoid Maintain a chargeback ratio below American Express threshold criteria  How to Defend n placed in the Fraud Full Recourse Program  Proof that the merchant had not bee at the time of the chargeback First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data of 234 170

171 Dispute Management Guide Dispute Group/ Processing Errors * Immediate Chargeback Program AMEX FR3 The cardholder has disputed the charge and the merchant has been placed in the Immediate Chargeback Program. Time limit No limit – Possible Cause American Express places the merchant on the Immediate Chargeback Program  How to Avoid Maintain a chargeback ratio below American Express threshold criteria  How to Defend Proof that the merchant had not been placed  in the Immediate Chargeback Program at the time of the chargeback First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 171 of 234

172 Dispute Management Guide Dispute Group/ Processing Errors * Partial Immediate Chargeback Program AMEX FR6 The cardholder has disputed the charge and the merchant has been placed in the Partial Program. Immediate Chargeback No limit. – Time limit Possible Cause  American Express places the merchant on the Partial Immediate Chargeback Program How to Avoid Maintain a chargeback ratio below American Express threshold criteria  How to Defend  Proof that the merchant ha d not been placed in the Partial Immediate Chargeback Program at the time of the chargeback First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data of 234 172

173 Dispute Management Guide Credit Adjustments American Express will use the following reason codes when reversing a prior chargeback. Reason Codes and Description Chargeback Reversal M11 M38 Chargeback Reversal M11 Credit Adjustment AMEX Message from American Express: We recently debited your account for the adjustment amount indicated. We have now received your credit for this charge and we are reversing the debit and crediting your account. M38 Credit Adjustment AMEX We recently debited your account for the adjustment Message from American Express: amount indicated. We are now reversing the debit and crediting your account. Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data of 234 173

174 Dispute Management Guide Chapter Exceptions 5 Arbitration, Compliance and Good Faith Collections Pre - Arbitration - issuer to work together in an attempt to resolve Pre Arbitration allows First Data and the - A pre . the dispute outside of the normal chargeback cycle arbitration case may follow a It provides the chargeback; however it will not be received prior to a chargeback. ssuer to review cases on the merit of reasonableness to opportunity for First Data and the i resolve without involving the Network . Pre Visa - Arbitration Visa an incoming There are various reasons why First Data may receive Arbitration - Pre dispute: Issuer is changing the reason for th e dispute (reason code change), or   New information , which could include an updated cardholder letter, was obtained by the issuer, or - Codes: Visa Pre Arbitration Top Five Reason The documentation supplied was   30 Services Not Rendered incomplete or compelling information 41 Cancelled Recurring  supplied does not remedy, or  53 Not As Described/Defective Terms and Conditions a  s well as Refund 83 Fraudulent Card Not Present  Policies were not disclosed properly to the 85 Credit Not Processed  cardholder at the time of the transaction Note: The issuer must ensure all timeframe requirements are met, include updated documentation as required, and meet all regulatory conditions define d by Visa. First Data Payments Compliance Developed by: Rev: 04/1 7 Confidential & Proprietary to Fir 174 of 234 st Data

175 Dispute Management Guide Arbitration - MasterCard Pre ate an Upon rec eipt of an incoming MasterCard Second C hargeback First Data will initi Arbitration - dispute when: outgoing Pre MasterCard Arbitration Top Five Reason Codes:  , was supplied First chargeback remedy 37 No Cardholder Authorization  or  53 Cardholder Dispute N  ew information was not supplied by  55 Goods or Se rvices Not Provided i the or , ssuer Show, Addendum, or ATM Dispute - 59 No  60 Credit Not Processed  , Invalid reason code change or  Issuer changed the reason code and a  remedied has been provided First Data may need additional information to assist with resolution of the pre arbitration - case. Communications for exception cases are sent to you requesting documentation to continue to work the case. You have 14 calendar days to respond unless otherwise noted. Discover Pre - Arbitration There are various reasons why First Data may receive an incoming Pre - Arbitration dispute:  or Issuer is changin g the reason for the dispute (reason code change), New information, which could include an updated cardholder letter, was obtained  or by the issuer,  The documentation supplied was incomplete or compelling information supplied does not remedy, or s and Conditions as well as Refund Policies were not disclosed properly to  Term the cardholder at the time of the transaction Note: The issuer must ensure all timeframe requirements are met, include updated conditions defined by Discover documentation as required, and meet all regulatory arbitration stage. - Discover can render a decision during the pre Note: If Discover rules in favor of the merchant, the issuer can still pursue Arbitration. A merchant or acquirer e be pursued as an outgoing Arbitration case. - may request that a lost pre arbitration cas Note: For specific information regarding the cause of a chargeback along with how to avoid and how to defend, please refer to chapter four of this guide First Data Payments Compliance Developed by: Rev 04/17 175 Confidential & Proprietary to First Data of 234

176 Dispute Management Guide Compliance - Pre e issuer to work together to attempt to resolve a Compliance allows First Data and th - Pre due to a has occurred financial loss a dispute where no chargeback rights exist and Visa, . s Notification of these types of disputes allow rule violation MasterCard or Discover the blem and attempt to set member to address the pro tle the dispute; however, it is not always required prior to filing a compliance case. Compliance or Discover rved for instances when Visa, MasterCard The compliance process is rese have specific rules and and MasterCard Visa operating regulations have been violated. , n a rule has been violated . Whe by all members regulations that must be followed financial loss be will compliance case a not exist s do back right and charge has occurred initiated. : pliance case s are received by First Data The top five reasons Incoming Com  Compromised Data Incorrect Currency Conversion  Incoming Compliance Delayed or Amended Services  Visa 85% for Loss, Theft  , or Damages Charges MasterCard 15%  Returned Merchandise, Cancelled Services Request for Copy  The top reason Outgoing Compliance cases ar e sent by First Data : Requested Transaction Information not Received (supplying copy of receipt or  proof of fulfillment to issuer) How to Avoid Ensure proper compliance of all Visa and MasterCard Operating Regulations  How to Defend Respond by the due dat e listed on your dispute notification with written  explanation and all pertinent documentation related to the transaction Notes: Compliance or Compliance dispute credit should not be - Upon receipt of a Pre  issued Card in Compliance is the final  The decision made by Visa and/or Master resolution of the dispute and no further action can be taken First Data Payments Compliance Developed by: Rev: 04/1 7 Confidential & Proprietary to Fir 176 of 234 st Data

177 Dispute Management Guide Visa and MasterCard Good Faith Collection A collection on a reciprocal basis when /processor cquirer a ssuer or case is sent to the i supplied beyond chargeback time frames. additional information is  Minimum dollar thresholds are set by each issuing bank Cases must be less than a year old from the transaction date to qualify for review   Disputes concerning fraud are not considered Fees are assessed by the cardh  older’s bank as well as the acquirer  Issuers and acquirers have no obligation to provide a response or accept these cases  Visa and MasterCard do not govern this process Discover Good Faith Collection nt when additional information is supplied A collection case is sent to the acquirer/mercha beyond chargeback time frames. Good Faith Collection Facts:  Minimum dollar thresholds are set by each issuing bank  Disputes concerning fraud are not considered s the acquirer Fees are assessed by the cardholder’s bank as well a  The incoming Good Faith Collections process is included within the retrieval  cycle The ticket retrieval request will be initiated by Discover on the issuer’s behalf for  Good Faith Investigation – retrieval code 05 ed to fulfill the ticket retrieval request for retrieval The merchant is not obligat  code 05 If the merchant accepts the Good Faith Collection case, a chargeback will be  submitted by Discover under reason code 4762/05 Good Faith Investigation in order to recoup the funds from the mer chant.  Issuers may initiate a Good Faith Investigation after the expiration of the initiation chargeback time periods and within two years of the Processing Date of the transaction Once you accept a Good Faith Investigation Retrieval Request and receive th  e subsequent chargeback, it cannot be reversed. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 177 of 234

178 Dispute Management Guide Chapter Specific Best Practices for Industries Merchant 6 Special processing and chargeback consideration is granted to industry specific merchants. This section is designed to outline preventative measures and c hargeback recommendations for select industries. For information regarding the cause of a chargeback along with how to avoid and how to defend, please refer to chapter four of this guide. Mail/ Telephone Billing (MO/TO) Preventive Measures – Tips to Avoi d Unnecessary Chargeback’s Recurring Payments – The Authorization Processing Ensure all mail/phone  merchant is required to obtain best practices are authorization on all transactions. followed Merchants processing MO/TO  Promptly process all transactions may obtain authorization on or prior to the changes to payment r Visa. The transaction date; up to seven days prior fo for future methods recurring transactions as authorization must be for the actual amount unless an received from the estimated amount is requested due to shipping fees; the cardholder amount must be within 15% of the final transaction amount. Once a cancellation  Please ensure authorizations are processed properly; notice or chargeback is including recognizab le merchant name, proper MCC received, make certain future transactions are assignment and corresponding indicators (e.g. mail, phone, not billed unless ecommerce, installment, recurring billing). This will enable contractually supported the issuer to make better authorization decisions.  Implement internal best practices for handling – e The transaction should not b Transaction Processing , expired cards which processed until the merchandise is shipped/delivered or may include support for Account Updater services are provided to the cardholder. Multiple production solutions transactions may be processed to allow for split shipments or partial services as long as each are properly authorized. Please ensure transactions are processed properly; including recognizable merchant name, proper MCC assignment and corresponding indicators (e.g. mail, phone, ecommerce, installment, recurring billing). This will enable Proper discloser should be provided at issuers to better assist their customers on potential inquire r the time of transaction; however it does not guarantee that a transaction will not and may prevent unnecessary chargeback. be disputed. 7 Rev: 04/1 First Data Payments Compliance Developed by: of 178 234 st Data Confidential & Proprietary to Fir

179 Dispute Management Guide Proper Disclosure – Policies for returns and cancellations need to be properly disclosed to the cardholder prior to processing the transaction. A written acknowledgment sent to the customer, signed and returned i s recommended. Potential fraudulent activity may be identified by using Address - Deterring Fraud Verification, CVV2/CVC2 services, or other internal fraud detection solutions. Implementing internal best practices you may be able to reduce unnecessary fr aud losses when negative responses are received through the fraud prevention tools, when shipping valuable products or when an alternate shipping address is used. Obtain a signed proof of delivery for shipped merchandise or a release form indicating the c ardholder allows packages to be left without a signature. For services, retain acknowledgement from the cardholder that the services were received.  MasterCard CVC2 Validation Program will become a U.S. domestic only program – Defending Chargeback’s Tips to Resolve Disputes Visa Potential fraudulent activity may be identified by using Address Fraud - - roof that CVV2 was utilized and an Verification and/or CVV2 services. Supplying p roof that an unsupport p or unsupported response code of “U” was received, ed AVS response code of “U” (except for Visa International) will remedy fraud was received chargebacks. Implement internal best practices to help reduce unnecessary fraud losses shipping when negative responses are received through the fraud prevention tools, when valuable products or when an alternate shipping address is used. Potential fraudulent activity may be identified by using Address - MasterCard - Fraud Verification and/or CVC2 services. P rovide proof AVS response of X or Y was received, with proo f of delivery if available or other documentation showing the merchandise was . While the AVS response of X or Y may shipped to the positive AVS confirmed address enable chargeback’s to be reversed back to the issuer may however not completely remedy the d ispute.  MasterCard CVC2 Validation Program will become a U.S. domestic only program : If this is a 2nd chargeback and an updated cardholder letter has been Note . received there is no further recourse the cardholder participated The merchant may provide “Compelling Evidence” to support in the transaction such as:  A receipt, work order, or other document signed by the cardholder, substantiating that the cardholder received the goods or services. Cardholder confirmation of registration to receive electronic del ivery of goods or  services; or - Letters, e mails, faxes, or other written correspondence exchanged between the  merchant and cardholder. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 179 of 234

180 Dispute Management Guide Cancelled/Returned Credit not Processed credit due is supply documentation reflecting th If there is no record that a e disclosure Process any credits due via the . accepted by the cardholder at the time of the transaction same means as the original payment. If a Visa was used, that same card must be credited. Do not give cash as a credit nor credit another credit card ac count at the cardholder’s request. Cancelled Recurring Transaction Promptly process all changes to payment methods for future recurring transactions as received from the cardholder. Once a cancellation notice or chargeback is received, make certain future transactions are not billed unless contractually supported. Implement internal best practices for handling expired cards, which may include support for Account Updater services. Chargeback Scenario Scenario #1 A chargeback was received for MasterCard R eason Code 37, No Cardholder Authorization, for a telephone order transaction. The cardholder is claiming that the transaction was not authorized by anyone permitted to use the credit card. following: You have supplied a copy of the telephone order reflecting the cardholder name, account number, total due, billing and shipping address; along with documentation to show the AVS response received was an X, as well as signed proof of delivery to the confirmed address. Is this chargeback remedied? The chargeback would be represented to the issuer with all of er: Answ the information supplied to show that all measures have been taken to protect against fraud. However, be aware that in the event that the as fraudulent and supplies a cardholder continues to dispute the transaction progressive dispute letter the issuer does have the right to submit a second chargeback. 2 Scenario # A chargeback was received for Visa Reason Code 83, Fraudulent Transaction – Card Absent Environment, for a mail order tr ansaction. The cardholder is claiming that the transaction was not authorized by anyone permitted to use the credit card. You have supplied a copy of the order form completed by the , total due, cardholder reflecting the following: cardholder name, account number billing and shipping address; along with documentation to show the AVS response received was a U, as well as a copy of the unsigned proof of delivery to the address on the order form. Is this chargeback remedied? Answer: Yes. Visa has r equested that all issuers, except for those in the International Regions participate in the Address Verification Service. An AVS response of U is reflecting that the issuer does not support address along with documentation proving the merc handise was verification; shipped or delivered, or services were purchased , the issuer will be held liable for the disputed transaction. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 180 of 234

181 Dispute Management Guide 3 Scenario # A chargeback was received for Credit Not Processed, Visa chargeback reason code 60, against a mail order code 85 or MasterCard chargeback reason transaction. The cardholder is claiming that they returned the merchandise that was purchased and they have not received a credit to their account. You have not received the returned merchandise. What documentation is r equired to request a reversal? Answer: A written letter notifying the issuer that the merchandise has not been received bank from the cardholder and request that the issuer provide proof of delivery. 4 Scenario # A chargeback for MasterCard Reason Code 41, Cancelled Recurring Transaction, was received for a mail/telephone transaction. The cardholder has stated in their letter that they cancelled the recurring payment in April of 2011. Your website discloses to the cardholder prior to completing the transaction that in order to cancel, the customer will need to submit a cancellation request by certified mail to the home office. This cancellation policy is clearly displayed with a ‘click to accept’ button that when not checked will not allow t he transaction to be processed. The home office does not have record of receiving a cancellation request. What option do you have to dispute this chargeback? Supply a written rebuttal and copies of the website reflecting the Answer: cancellation po licy along with “Click to Accept”. The cardholder will need to provide proof that they cancelled the service according to the agreed upon terms. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 181 of 234

182 Dispute Management Guide Ecommerce Billing Tips to Avoid Unnecessary Chargeback’s – Preventive Measures rization Processing Autho The merchant is required to obtain – transactions. Merchants processing ecommerce authorization on all transaction may obtain authorization on or Recurring Payments prior to the transaction date; up to seven days prior for Visa. Ensure all mail/phone  The authorization must b e for the actual amount unless an best practices are estimated amount is requested due to shipping fees; the followed amount must be within 15% of the final transaction amount. Promptly process all  changes to payment Please ensure authorizations are processed properly; methods for future including recognizable merchant name, proper MCC recurring transactions as gnment and corresponding indicators (e.g. mail, phone, assi received from the ecommerce, installment, recurring billing). This will enable cardholder the issuer to make better authorization decisions.  Once a cancellation notice or chargeback is MasterCard will allow the merchant to decline a transaction received, make certain uer if the merchant suspects the that was approved by the iss future transactions are transaction is fraudulent. The merchant must send back a not billed unless reason for the decline to the issuer. Please contact your contrac tually supported account manager for further instructions. Implement internal best  practices for handling expired cards , which The transaction should not be - Transaction Processing may include support for until the merchandise is shipped/delivered or processed Account Updater services are provided to the cardholder. Multiple production solutions transactions may be processed to allow for split shipments or partial services as long as each are properly authorized. ed properly; including recognizable merchant Please ensure transactions are process name, proper MCC assignment and corresponding indicators (e.g. mail, phone, ecommerce, installment, recurring billing). This will enable issuers to better assist their customers on potential inquirer and may pr event unnecessary chargeback. Proper Disclosure – The cardholder will need to be Proper disclosure should be made aware of any policies for cancellation or return. provided at the time of transaction; When utilizing a “Click to Accept” disclosure, ensure however it does not guarantee that are and are clear procedures the policies and followed a transac tion will not be disputed. to the c ardholder prior to completion of the transaction. - Potential fraudulent activity may be identified by using Address Deterring Fraud Verification, CVV2/CVC2 services, cardholder authentication services such as Verified by Visa and MasterCard Secure Code, and/or other internal fraud detection solutions. Implementing internal best practices may enable you to reduce unnecessary fraud losses when negative responses are received through the fraud prevention tools, when shipping ernate shipping address is used. Obtain a signed proof of valuable products or when an alt First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir 234 st Data 182 of

183 Dispute Management Guide delivery for shipped merchandise or a release form indicating the cardholder allows packages to be left without a signature. For services, retain acknowledgement from the ces were received or proof that virtual services were downloaded cardholder that the servi or otherwise provided to the cardholder. Provide documentation to reflect the number of bytes for a download along with the number of bytes actually downloaded. a U.S. domestic only program is rogram MasterCard CVC2 Validation P  Tips to Resolve Disputes – Defending Chargeback’s Fraud – Visa - Potential fraudulent activity may be identified by using Address roof that an p Verification, CVV2 services, and/or Verified by Visa. Supplying ed AVS response code of “U” unsupport was received (except for Visa International*), roof that CVV2 was utilized and an unsupported response code of “U” was received, or p authentication was received or attempted to be received when utilizing VbV will remedy fraud ch argeback’s. Implement internal best practices to help reduce unnecessary fraud losses when negative responses are received through the fraud prevention tools, when shipping valuable products or when an alternate shipping address is used. mestic mo/to or ecommerce transactions with an AVS of “U” when the * Canadian Do cardholder is anonymous for Visa Commercial Card types. Potential fraudulent activity may be identified by using Address - Fraud MasterCard - Verification, CVC2 services, and/or MasterCard Secure Code. Supplying proof AVS response of X or Y was received, with proof of delivery if available or other documentation showing the merchandise was shipped to the positive AVS confirmed ved when utilizing address , or authentication was received or attempted to be recei MasterCard Secure Code. While the AVS response of X or Y may enable chargeback’s to be reversed back to the issuer may however not completely remedy the dispute. a U.S. domestic only program MasterCard CVC2 Validation Program  is f this is a 2nd chargeback and an updated cardholder letter has been : I Note . received there is no further recourse The merchant may provide “Compelling Evidence” to support the cardholder participated in the transaction such as:  A receipt, work order, or other do cument signed by the cardholder, substantiating that the cardholder received the goods or services.  Cardholder confirmation of registration to receive electronic delivery of goods or services; or Letters, e mails, faxes, or other written correspondence exc hanged between the -  merchant and cardholder. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 183 of 234

184 Dispute Management Guide Cancelled/Returned Credit Not Processed If there is no record that a due is credit supply documentation reflecting the disclosure . Provide disclosure on website accepted by the cardholder at the time of the transaction showing cardholder must click to accept in order to on same page as the checkout . complete the transaction Process any credits due via the same means as the original payment. If a Visa was used, that same card must be credited. Do not give cash as a credit nor credit another credit card account at the cardholder’s request. Cancelled Recurring Transaction (MasterCard Only) A contract which was accepted by the cardholder at the time of the transaction and states the cardholder needed to cancel acc ording to specific terms (i.e. in writing) and the should cardholder did not provide proof that they cancelled according to the agreed terms An invoice or POD showing merchandise was shipped prior to cancellation be supplied. wil and has not been returned l assist in disputing the chargeback. Chargeback Scenario Scenario #1 A chargeback for Visa Reason Code 83, Fraudulent Transaction – Card Absent Environment, was received against an ecommerce transaction. The cardholder has stated in their letter that the transaction posted to their account was not made nor authorized by them or any authorized user of the account. You have supplied documentation to show that a CVV2 response of “U” was obtained. Is this chargeback remedied? Answer: who do not participate in the Card Verification Yes. Issuers Value 2 Program do not have chargeback rights when a cardholder claims the transaction to be fraudulent. Scenario #2 A chargeback for MasterCard Reason Code 37, No Cardholder Authorization, was received for an ecommerce transaction. An affidavit of fraud was supplied reflecting that the transaction in question was not authorized by the cardholder or any other authorized user. Upon review of the transaction it was found that the e program was utilized and this transaction was fully MasterCard Secure Cod authenticated. Is this chargeback remedied? Yes. Merchants that participate in the MC Secure Code Answer: Program and received full or attempted authentication response are code 37 chargeback’s. protected from reason First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 184 of 234

185 Dispute Management Guide Car Rental Tips to Avoid Unnecessary Chargeback’s – Preventive Measures The merchant is required to obtain authorization on – Authorization Processing all transactions, therefore ensure proper authorization has been received be tween the time the car was rented and return is crucial. Keep a record of all authorization amounts and approval codes associated with the rental. The total amount authorized must be within 15% of the actual transaction amount, (Visa allows the 15% varia nce or USD $75, and whichever is greater) if the actual transaction amount is more than the allowed variance, an additional authorization is required for the difference. In the event a ‘decline’, ‘pick response is received reques - non up’ or other approval t a different form of payment. Please ensure authorizations are processed properly; including merchant name and proper MCC assignment. This will enable the issuer to make better authorization decisions. considered the date Transaction Processing The transaction date is - the car is returned or rental agreement is closed. Obtain signature and an imprint or magnetic swipe of the credit card on the date the rental agreement is opened. Additional charges must be processed within 90 return with the exception of parking or moving days of the vehicle’s violations, which must be processed within 90 days of the notification received from the civil authorities. Transactions processed as a result of a loss, theft or damage are not ted. Supplying addendum data, such as cardholder name valid and should not be comple and address, with the transaction will enable the issuer to better assist their customers on potential inquiries and may prevent unnecessary chargeback’s. During peak season and les, Visa allows No Shows to be processed. The merchant must hold for specialized vehic the vehicle for the allotted time, deposit a rental agreement with the words no - show on the signature line on the rental agreement and obtain a valid authorization. - Proper Disclosure cancellation policy e Th Proper disclosure should be provided at the time of transaction; however it does needs to be disclosed to the cardholder a t the not guarantee that a transaction will not time of the reservation. Guaranteed be disputed. reservation confirmations can be sent to a cardholder by mail, email or text message “submit” /  E - commerce merchants may provide their disclosure either near the to - - “click book” button, or via e signature on digitally signed - - to - accept” / “click documents Face to face merchants allow the cardholder to sign or initial near the disclosure if  the disclosure is not near the signature panel or the Issuer remain in the following situations Dispute rights f  Cardholder does not receive the merchant’s return/cancellation policy or the – policy was not properly disclosed to the cardholder Cardholder cancels according to the agreed policy that permits cancellation –  Acquirer may remedy the dispute by proving the cardholder received and acknowledged the cancellation policy that does not permit cancellation First Data Payments Compliance Developed by: Rev 04/17 185 Confidential & Proprietary to First Data of 234

186 Dispute Management Guide Accept all cancellations that are within the specified timeframes. Provide a cancellation ardholder to retain it. In the event the vehicle the cardholder code and advise the c reserved is not available, provide a comparable size vehicle. Obtain specific information from the cardholder at the time they Deterring Fraud - book; reservation name, name on the credit c ard, credit card number, expiration date of credit card account and the billing address and phone number of the cardholder. Upon check out obtain a signature of the cardholder and an imprint/magnetic swipe of the card to be used for the rental. Utilizatio n of AVS, CVV2/CVC2 and/or cardholder authentication services such as Verified by Visa and MasterCard Secure Code can assist in reducing the risk of unauthorized transactions; please refer to chapter seven of this guide for further information regarding th ese programs.  MasterCard CVC2 Validation Program will become a U.S. domestic only program Visa Reservation Service Car Rental Companies in the US Region can guarantee Peak Time specialized vehicles and vehicle availability to customers Regular weekends, local festivals or during peak season by pa rticipating in the Visa local events are not classified as peak Reservation Service. The Service guarantees payment to time , however the following are: you in the event the cardholder does not pick up the legal holidays and holiday  vehicle or fails to cancel their reservation according to weekends such as Labor show’ transaction. - specific terms by processing a ‘no Day, Memorial Day, Thanksgiving and Christmas  Rentals during the year best During the reservation process the cardholder’s name, suited for resort activity, account number and expiration date must be obtained. The such as winter months in cardholder must be notified that the reservation is within a beach or ski areas Peak Time period or that the rental is for a Specialized Special events such as the  ust advise the Vehicle. The Car Rental Company m Oly mpics and Super Bowl were such events draw show’ fee may be billed if the cardholder that a ‘no - attendees from outside the cardholder has not rented the vehicle by the end of the local area. guarantee period or properly cancelled the reservation. Specialized Vehicle Unique rental vehicles are classified A reservation confirmation for a Peak Time or Specialized as specialized vehicles that are not tions must be sent to the cardholder, when Vehicle reserva more than five percent of your total - rental fleet such as minivans, four the reservation was made at least 72 hours prior to the l - drive vehicles, selected sports whee scheduled rental time, confirming all of the following models, luxury or vintage vehicles. information: Cardholder’s name, account number and expiration date  e Car Rental Company  Name and exact street address of th Confirmation Code  Rate   Cardholder obligations Cancellation and any other service details  First Data Payments Compliance Developed by: 7 Rev: 04/1 Confidential & Proprietary to Fir 186 st Data of 234

187 Dispute Management Guide Reservations made within 72 hours of the scheduled rental time do not require a written holder requests it to be provided. confirmation to be sent to the cardholder, unless the card All cancellation requests must be accepted if completed within the required time frame. Cancellation of a Peak Time reservation may be requested without penalty up to eight e event the cardholder is traveling to the car hours before the scheduled rental time. In th rental location by Airline and the flight is cancelled or the airport is closed, the Peak Time reservation may be cancelled up to one hour before the scheduled rental time. e reservation may be made without penalty anytime Cancellation of a Specialized Vehicl up to 72 hours before the scheduled rental time; if the reservation is made within 72 hours, the reservation may be cancelled anytime up to eight hours before the scheduled rental time. A cancellation co de must be supplied to the cardholder and they should be advised to retain the number for their records. If requested, a written confirmation of cancellation must be provided to the cardholder containing the following information: nt number and expiration date  Cardholder’s name, accou Cancellation Code  Cancellation details  The reserved vehicle must be held according to the reservation. If the cardholder has not - claimed or properly cancelled the reservation a ‘no show’ transaction may be processed. how’ transaction must not exceed one day’s rental for Peak Time Reservations s - A ‘no and must not exceed two days’ rental for Specialized Vehicle Reservations. The Car Rental Company must obtain an authorization code for the no show transaction and - include the car dholder’s name, account number, expiration date and the words ‘no - show’ written on the signature line of the transaction receipt. If the vehicle guaranteed is not available the cardholder must be provided the following services at no charge: Peak Time R eservations  Transportation to the Cardholder’s destination Delivery of a comparable vehicle to the Cardholder’s destination within 8 hours  from the scheduled rental time  Transportation, vehicle delivery, and one day’s car rental Specialized Vehicle Reserva tions Comparable vehicle at another establishment for the reservation prior  Transportation to the alternate establishment  - Visa now permits no show charges for non . peak season First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 187 of 234

188 Dispute Management Guide Tips to Resolve Disputes – Defending Chargeback’s - Authorization e dates of check out and check in on the rental agreement to Provide th authorization approvals received within this timeframe are calculated and ensure that all included on the agreement or other corresponding documentation. - Fraud a signature as well as an imprint/magnetic swipe Provide a rental agreement with of the credit card on the date the rental agreement was opened. Additional charges must be processed within 90 days of the vehicle’s return with the exception of parking or moving violations, which must be p rocessed within 90 days of the notification received from the civil authorities; therefore supply documentation to support the validity of these additional charges. Preferred Customer Program enrollment records Preferred Customer Program st in received face to face or online could assi resolving disputes. Providing updated cardholder What information should be obtained during the registration address and phone numbers along with credit card process? number and updated expiration date, including a signature or click to accept area from the online  Cardholder Name, Address and form reflecting that the cardholder agrees to the Phone Number efits and billing associated with the Preferred ben Credit Card Number and expiration  Customer Program will prompt the dispute to be will be utilized for billing date that  Proof Terms and Conditions were represented to the issuer. While the information accepted by the cardholder would be considered compelling, it may not  Cardholder signature on the same remedy the dispute. page as terms and conditions, if applicable If there is no record th at a - Cancelled/Returned Note: Cardholder information should be credit is due and a credit slip would have been updated periodically to ensure the issued, advise of such in the rebuttal and request a s accurate information i copy of the cardholder’s credit slip. The cardholder may provide a cancellation number which may not be valid. Dispute the validity of the cancellat ion number provided by the cardholder, supply an example of a valid cancellation number that would be issued; how many digits is it and does the digits represent anything. Process any credits due via the same means as the original payment. If a Visa/Maste rCard was used, that same card must be credited. Do not give cash as a credit nor credit another credit card account at the Cardholders request. The cardholder will contact prior to disputing the transaction – Cardholder Disputes with the issuer, therefor e be willing to work with the cardholder when they make their initial attempt to resolve directly with you. In the event that a dispute is received, provide a rebuttal addressing all of the cardholders concerns and the steps that you have taken to work wi th the cardholder to rectify the situation prior to the dispute. Include all documentation to support your rebuttal or to disprove the cardholders claim and advise if the cardholder has purchased or declined insurance. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir of st Data 188 234

189 Dispute Management Guide Chargeback Scenario Scenario #1 chargeback has been received for reason code 53 A – Not as Described. The cardholder’s letter states that they rented a Cadillac but when they arrived to pick up the car it was a Ford. The documentation also insists that the cardholder contacted the mer chant to resolve the dispute prior to initiating a chargeback; however; the merchant was of no assistance. What do you need to provide to refute this dispute? a written rebuttal and rovide P documentation to show the Answer: c hange at the time of the rental along with cardholder accepted the information on the original reservation. Describe what transpired when the cardholder attempted to resolve the dispute after they were billed, including if the cardholder failed to contact you in an attempt t o resolve the dispute. 2 Scenario # A chargeback has been received claiming that the transaction processed was fraudulent; Visa chargeback reason code 83, Fraudulent Transaction Card – Absent Environment or MasterCard chargeback reason code 37, No Card holder Authorization. Upon your review of the transaction it was determined that the sale was the result of a parking ticket received when the cardholder was in possession of the car. How do you prove that this is a valid transaction? ide rov P Answer: documentation to show the a written rebuttal and cardholder was still in possession of the vehicle when the parking ticket was issued; include in your reversal request, the rental agreement ir possession as reflecting the dates that the cardholder had the car in the well as a copy of the parking citation reflecting the date it was written. 3 Scenario # A chargeback has been received claiming that authorization was not granted for , No the full amount of the transaction; Visa chargeback reason code 72 Authorization or MasterCard reason code 08, Requested/Required Authorization Not Obtained. The issuer has stated that authorization was granted for $624.55 with a 15% variance for a total authorized amount of $718.23; however, the billed $2,130.79. Upon your review of the rental agreement and cardholder was the list of authorizations it is determined that the issuer failed to consider additional authorizations. What documentation is needed to remedy this dispute? Answer: al agreement reflecting when the car was A copy of the rent picked up and returned along with a list of authorizations including the date and dollar amount of each. As long as each authorization was approved and totals $1,860.00, your dispute is remedied. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 189 of 234

190 Dispute Management Guide 4 # Scenario A chargeback has been received for Visa reason code 83, Fraudulent Transaction – Card Absent Environment. A review of the transaction reflected that the customer is part of the Preferred Customer Program. The customer is afforded the erve a vehicle on line and provide a confirmation number with their option to res Preferred Customer Card at the time the vehicle is picked up. They are not required to provide their credit card or sign a rental agreement due to their Preferred Customer status. How do you prove that this is a valid transaction? Answer: P rovide the Preferred Customer Program registration information including proof that the cardholder agreed to be billed on their Visa card for transactions that transpired when using their Prefe rred Customer Card. While this is not a remedy, the dispute will be represented to the issuer for review. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir 234 of 190 st Data

191 Dispute Management Guide Airlines Tips to Avoid Unnecessary Chargeback’s – Preventive Measures – The merchant is required to obtain Authorization Processing autho transaction on the transaction date. Please ensure all rization on authorizations are processed properly; including merchant name and proper MCC assignment. This will enable the issuer to make better authorization decisions. should be processed on the same date as the Tra nsaction Transaction Processing - s purchase . Supplying addendum data, such as cardholder name flight itinerary, with the transaction will enable the issuer to better assist their customers on potential inquiries and may prevent unnecess ary chargeback’s. - The cancellation policy needs to be disclosed to the cardholder at Disclosure Proper the time of the reservation. A written acknowledgment sent to the customer, signed and returned is recommended or documentation to show a “Click to accept” option on the disclosure page for on line purchases. Accept all Proper discloser should be provided at cancellations that are within the specified the time of transaction; however it does timeframes. Provide a cancellation code and not guarantee that a transaction will not advise the cardholder to retain it. be disputed . Deterring Fraud istration to build a Mandating or encouraging customer reg - comprehensive database of genuine ‘positive list’ and ‘negative list’ of customers will assist in decreasing the risk of an unauthorized transaction. The Positive List will incorporate passengers who frequently travel and do not gener ate fraudulent transactions while the Negative list will contain a list of passengers traveling on fraudulently purchased airline tickets. Limit the timeframe for online purchases from the point of s to provide sufficient time for ‘booking’ to the ‘date of travel’ to a minimum of 48 hour transaction monitoring (High - Risk travel routes should be extended to 72 hours). Additionally, potential fraudulent activity may be identified by using Address Verification, CVV2/CVC2 services, and/or cardholder authentic ation services such as Verified by Visa and MasterCard Secure Code; refer to chapter seven of this guide for further information regarding these programs.  MasterCard CVC2 Validation Program will become a U.S. domestic only program For Airlines with lar ge online ticket volumes implement a real time Fraud Detection risk transaction using previously identified - System (FDS); this system can detect high fraud attributes and flag them for further action by your risk management team. Analyze risk routes, IP addresses, account numbers and time of - isolating high fraud patterns by booking; this information can be manually filtered for incoming transactions allowing stricter controls and limit any reduction in sales volumes for legitimate transactions. Sharing f raud pattern and negative list attributes with other airlines will be beneficial to the industry as a whole as crime syndicates will have greater difficulty attacking other First Data Payments Compliance Developed by: Rev 04/17 191 Confidential & Proprietary to First Data of 234

192 Dispute Management Guide ederal airlines; please note that card numbers may not be shared and you must follow all F or Local laws protecting cardholder information. Tips to Resolve Disputes – Defending Chargeback’s - Fraud Obtain specific information from the cardholder at the time of booking; passenger name, name on the credit card, credit card number, expira tion date of credit card account and the billing address and phone number of the cardholder. Utilization of AVS, CVV2/CVC2 and/or cardholder authentication services such as Verified by Visa and MasterCard Secure Code can assist is reducing the risk of una uthorized transactions; please refer to chapter seven of this guide for further information regarding these programs.  MasterCard CVC2 Validation Program will become a U.S. domestic only program Preferred Customer Program enrollment records Preferred Customer cords received face to face or online enrollment re Program could assist in resolving disputes. Providing updated cardholder address and phone numbers What information should be along with credit card number and updated obtained during the registration expiration date, including a signature or click to process? accept area from the online form reflecting that Cardholde  r Name, Address and the cardholder agrees to the benefits and billing Phone Number associated with the Preferred Customer Program  Credit Card Number and Expiration will prompt the dispute to be represented to the date that will be utilized for billing issuer. While the information would be  Proof Terms and Conditions were accepted by the cardholder considered compelling, it may not remedy the  Cardholder signature on the same As well as compelling documentation dispute. page as terms and conditions, if such as passenger name matching the cardholders applicable and proof that the cardholder took the flight can be utilized to reverse chargeback’s to the issuer, Note: holder information should Card however may not completely remedy the dispute. be updated periodically to ensure the information is accurate Cancelled/Returned - If there is no record that a credit is due and a credit slip would have been issued, advise of such in the rebuttal and request a copy of the cardholder’s credit slip. The cardholder may provide a cancellation number which may not be valid. Dispute the validity of the cancellation number provided by the cardholder, supply an example of a valid cancellation number that would be issued; how many digits is it and do the digits represent anything. Process any credits due via the same means as the original p ayment. If a Visa/MasterCard was used, that same card must be credited. Do not give cash as a credit nor credit another credit card account at the Cardholders request Cardholder Disputes The cardholder may contact the merchant prior to disputing a – trans action, therefore be willing to work with the cardholder when they make their initial attempt to resolve directly with you. In the event that a dispute is received, provide a taken to rebuttal addressing all of the cardholders concerns and the steps that you have First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir 234 of 192 st Data

193 Dispute Management Guide work with the cardholder to rectify the situation prior to the dispute. Include all documentation to support your rebuttal or to disprove the cardholders claim and advise if the cardholder has purchased or declined insurance. Chargeback Scenar io 1 Scenario # A chargeback has been received for Visa reason code 83 Fraudulent Transaction – Card Not Present Fraud. The cardholder is claiming that the transaction was not authorized by them or any other authorized user on the account. Upon your re view of the transaction it is determined that the transaction was a fee for extra baggage. Can this dispute be remedied? If Answer: AVS was utilized and a response of U was obtained; reason charg es in the U.S. code 83 is invalid for properly identified Ancillary Region Otherwise: Supplying a written rebuttal addressing the transaction and all documentation showing that the cardholder took the flight and agreed to an extra baggage charge will be proper for the dispute to be represented, r this does not guarantee that the dispute will not be received a howeve second time. Scenario # 2 A chargeback had been received for services not rendered; Visa reason code 30, Services Not Provided or Merchandise Not Received or MasterCard reason code 55, G oods or Services Not Provided. The cardholder is claiming that they were to fly from point A to point B with a connecting flight. When the plane landed for the connection flight the plane going to the final destination was not going to travel due to w eather and the next flight would be for following day. The cardholder states that this was unacceptable and returned to point A. Upon your review of the transaction it is determined that a credit was issued to the unt of the flight from the connection point to cardholder’s credit card for the amo the final destination. Can this dispute be remedied? Yes. Supply a written rebuttal addressing the fact that credit Answer: issued. Note: If credit was not issued, DO NOT issuer credit, acceptance of the chargeback processes credit to the cardholders account. 3 Scenario # A chargeback has been received for MasterCard reason code 37, No Cardholder Authorization. The cardholder is claiming the transaction was the result of redit card. Upon your review of the transaction it was fraudulent use of their c determined that MasterCard Secure Code was utilized and full authorization was obtained. Can this dispute be remedied? Yes. Receiving full authentication through the MasterCard Answer: ure Code program supports the fact that the cardholder participated in Sec the transaction, therefore a chargeback for reason code 37 would be invalid. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 193 of 234

194 Dispute Management Guide 4 Scenario # A chargeback has been received for MasterCard reason code 37, No ation. The cardholder is claiming the transaction was not Cardholder Authoriz made or authorized by them. Upon your review of the transaction it was determined that the cardholder’s name is the same as the passenger on the flight. er did board the plane and complete both It was also determined that the passeng legs of the trip. Can this dispute be remedied? Documentation to show that the cardholder was the passenger Answer: and the flight was taken is compelling evidence to show that the d in the transaction and received the services. cardholder has participate While this is not a remedy the chargeback can be represented to the issuer for further clarification with the cardholder. nd Note: If this is a 2 chargeback and an updated cardholder letter has been ceived there is no further recourse. re 5 Scenario # A chargeback has been received for Visa reason code 83, Fraudulent Transaction Card Not Present Fraud. The cardholder is claiming the transaction was not – made or authorized by them. Upon your review of the transaction it was determined that the cardholder utilized their frequent flyer points to purchase the airline ticket. Can this dispute be remedied? Answer: Supplying documentation to show frequent flyer information that was used to purchas e the airline ticket can be utilized to represent the chargeback to the issuer. While this is not a remedy the issuer can further clarify with their cardholder regarding the validity of the transaction. Note: The representment utilizing compellin g evidence is not a remedy therefore this dispute may be received a second time. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 194 of 234

195 Dispute Management Guide Cruise Lines Tips to Avoid Unnecessary Chargeback’s – Preventive Measures Authorization Processing – The merchant is required to obtain authorization on a ll transactions, therefore ensuring the proper amount of authorization has been received between embark and disembark dates is crucial. Keep a record of all authorization amounts and codes up’ or associated with that credit card. In the event a ‘decline’, ‘pick approved other non - response is received request a different form of payment. Please ensure authorizations are processed properly; including recognizable merchant name, proper MCC assignment and corresponding indicators (e.g. mail, phone, ecommerc e, installment, recurring billing). This will enable the issuer to make better authorization decisions. The transaction date for the purchase of a cruise is the date – Transaction Processing cardholder books their reservation, however the transaction da te of onboard purchases is either the date of the purchase or the disembark date; depending on how you bill the cardholder for onboard expenses. Purchases made on board should contain the cardholder’s signature. Transactions processed as a result of a lo ss, theft or damage are not valid and should not be completed. Please ensure transactions are processed properly; including recognizable merchant name, proper MCC assignment and billing). corresponding indicators (e.g. mail, phone, ecommerce, installment, recurring This will enable issuers to better assist their customers on potential inquirer and may prevent unnecessary chargeback. Proper Disclosure Policies for returns and cancellations including what type of – s to be disclosed to the cardholder to ensure that documentation is required to board need they are fully aware of all policies. A written acknowledgment sent to the customer, signed and returned is recommended or documentation to show a “Click to accept” option on the disclosure page for on li ne purchases. Ensure the cardholder is aware of the following; dates of cruise, cancellation procedures, rates, location, and the documentation the passengers must supply to board, if any. In Proper discloser should be provided at the event the cardholder does cancel, instruct the time of transaction; however it does them to retain t he cancellation number that is not guarantee that a transaction will not being provided as proof the reservation has been be disputed. cancelled. Obtain specific information from the cardholder at the time they - Deterring Fraud book; reservation name, name on the credit card, credit card number, expiration date of Upon credit card account and the billing address and phone number of the cardholder. guest registration at time of boarding obtain a signature of the cardholder and an imprint/magnetic swipe of the card to be used for onboard purchases on a regist ration card including the cabin number(s). Utilization of AVS, CVV2/CVC2 and/or cardholder authentication services such as Verified by Visa and MasterCard Secure Code can assist is reducing the risk of unauthorized transactions; please refer to chapter sev en of this guide for further information regarding these programs. First Data Payments Compliance Developed by: Rev 04/17 195 Confidential & Proprietary to First Data of 234

196 Dispute Management Guide  MasterCard CVC2 Validation Program will become a U.S. domestic only program Defending Chargeback’s Tips to Resolve Disputes – Authorization Issues Provide the dates of embark and dise mbark on a folio or – registration card to ensure that all authorization approvals received within this timeframe are calculated. Provide a folio or registration card with a signature as well as an Fraud - imprint/magnetic swipe of the credit card on the e mbark date. Additional charges must be processed within 90 days of the disembarkment date; therefore supply documentation to support the validity of these additional charges. Cancelled/Returned – If there is no record that a credit is due and a credit s lip would have been issued, advise of such in the rebuttal and request a copy of the cardholder’s credit slip. The cardholder may provide a cancellation number which may not be valid. lder, supply an Dispute the validity of the cancellation number provided by the cardho example of a valid cancellation number that would be issued; how many digits is it and do the digits represent anything. If a credit was issued to the on board account, supply an itemization of the on board account and point out the credit that applies to the dispute. Cardholder Disputes – The cardholder may contact the merchant prior to disputing a transaction, therefore be willing to work with the cardholder when they make their initial attempt to resolve directly with you. In the event that a dispute is received, provide a rebuttal addressing all of the cardholders concerns and the steps that you have taken to work with the cardholder to rectify the situation prior to the dispute. Include all o disprove the cardholders claim and advise if documentation to support your rebuttal or t the cardholder has purchased or declined trip insurance. Chargeback Scenario Scenario # 1 A chargeback has been received for Visa reason code 83 Fraudulent Transaction r is claiming that the transaction was not Card Not Present Fraud. The cardholde authorized by them or any other authorized user on the account. Upon your review of the transaction it is determined Verified by Visa was attempted. Can this dispute be remedied? Answer: Yes. Visa has re quested that all issuers participate in the Verified by Visa Service. An attempted VbV response indicates that the issuer does not support Verified by Visa, therefore the issuer will be held liable for the disputed transaction. Please supply a rebuttal address that you are Verified by Visa qualified and the transaction was authenticated. Include a copy of the VbV response received during the transaction. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 196 of 234

197 Dispute Management Guide Scenario # 2 A chargeback has been received for Credit Not Processed; Visa reason code 85 or sterCard reason code 60, reflecting the cardholder was not issued credit for a Ma cancelled excursion. Upon your review the credit was applied to the cardholder’s onboard expense account. What documentation is needed to request a reversal of ck? the chargeba Supplying a written rebuttal addressing that the credit was Answer: issued to the cardholder’s onboard expense account and provide the itemized break down of the expense account reflecting where the credit was applied. Scenario # 3 A chargebac k has been received for Non Receipt of Services/Merchandise; Visa reason code 30, Services Not Provided or Merchandise Not Received or MasterCard reason code 55, Goods or Services Not Provided. The cardholder’s dispute letter states that they were to r eceive a package shipped to their home from an onboard purchase; however, it was not received. Upon further investigation you determine that the purchase was for jewelry that the cardholder n this dispute be took with them and it was not to be shipped to their home. Ca reversed? Yes. Supply a written rebuttal addressing that the cardholder Answer: took the jewelry with them at the time of the transaction. Include a copy of the signed invoice/transaction receipt to support that there were no shipping instructions given by the cardholder. 4 Scenario # A chargeback has been received for Defective/Not As Described; MasterCard reason code 53. The cardholder’s dispute letter states that they were to dock in uise, however the itinerary was changed and they two specific ports during their cr never made it to those ports of call. A rebuttal is supplied from you stating that the weather during the cruise did not permit the original itinerary, however two other ports of call were made on the re turn trip. Can this dispute be reversed? Yes. Include in your rebuttal that the cardholder remained for Answer: the entire cruise. Additionally supply documentation to show that the a change cardholder was aware and accepted the fact that due to weather in the ports of call could occur at the time of reservation. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 197 of 234

198 Dispute Management Guide Lodging – Preventive Measures Tips to Avoid Unnecessary Chargeback’s – Authorization Processing The merchant is required to obtain all ple authorizations may be authorization on transactions. Multi obtained between the check in date and the checkout date ensuring the amount of authorization is within 15% of the actual transaction amount. an If the actual transaction amount is more than the total authorization, When a decline, pick up, or other additional au thorization is required for the difference. approved - non authorization response is received request a different form of payment. Please ensure authorizations are processed properly; including merchant name and proper assignment. This will enable the issuer to make better authorization decisions. MCC - Transaction Processing The transaction date is the checkout date on the folio. When the guest checks in, obtain signature and an imprint or magnetic swipe of the credit c ard. Additional charges must be processed within 90 days of the checkout date. Lodging merchants are permitted to accept Guaranteed Reservations. A guaranteed , cardholder name, eservation name r following information: reservation will reflect the iration date addre ss, phone number, a ccount number , e x p of the credit card and - a code. The r oom must be available on date of reservation until check out uthorization vailable the hotel must provide the following to the time the next day . If room is una cardholde , t ransportation to omparable accommodations for one night at another hotel r: c the other hotel and a three minute telephone call to wherever cardholder needs to inform others of change in accommodations. A guarantee reservation becomes a “No Show” when t he customer who has a guaranteed reservation does not cancel it before the hotel’s cancellation deadline, and never arrives to claim the reservation. The merchant must hold the room for the allotted time, obtain authorization, and process the transaction with the words “No Show” on the signature line. Transactions processed as a result of a loss, theft or damage are not valid and should not be completed. Supplying addendum data, such as cardholder name and address, with the transaction will enable the iss uer to better assist their customers on potential inquiries and may prevent unnecessary chargeback’s. - cancellation policy needs Proper Disclosure The vided at Proper discloser should be pro to be disclosed to the cardholder at the time of the the time of transaction; however it does e reservation. A written acknowledgment sent to th not guarantee that a transaction will not customer, signed and returned is recommended or be disputed. documentation to show a “Click to accept” option on the disclosure page for online purchases. Accept all cancellations that are within the cardholder to retain it. specified timeframes. Provide a cancellation code and advise the - Deterring Fraud Obtain specific information from the cardholder at the time they book; reservation name, name on the credit card, credit card number, expiration date of mber of the cardholder. credit card account and the billing address and phone nu Upon 7 First Data Payments Compliance Developed by: Rev: 04/1 198 234 of st Data Confidential & Proprietary to Fir

199 Dispute Management Guide check in obtain a signature of the cardholder and an imprint/magnetic swipe of the card to be used for the reservation. Utilization of AVS, CVV2/CVC2 and/or cardholder authentication services such as Verified by Visa and Maste rCard Secure Code can assist in reducing the risk of unauthorized transactions completed on the phone or through an online website; please refer to chapter seven of this guide for further information regarding these programs. MasterCard CVC2 Validation P  rogram will become a U.S. domestic only program Visa Reservation Service The Visa Reservation Service is designed to assure room availability to your guests and if . the cardholder fails to claim or cancel the reservation the service assures payment to you Lodging merchants must participate in the Visa Reservation Service if it accepts Visa Cards to guarantee hotel accommodations. No Show Transaction At the time of the reservation ensure you obtain the following: cardholder’s name, What constitutes a valid “No Show”? - account number and expiration date. ote the rate of the reserved Qu A proper guaranteed reservation was accepted by the  merchant accommodation and the exact name and  - Cardholder did not check in or cancel their guaranteed physical address of the establishment. reservation according to the specified time The cardholder must be informed that one  - Merchant held the room until check out the next day night’s lodging will be billed if they do  One night’s lodging plus tax is billed to the cardholder not register by check out time the -  An authorization code was received cancel following day or do not properly e of the  The words “No - Show” are on the signature lin the reservation. transaction receipt A confirmation code must be provided to the cardholder and they should be advised to retain the number for their records. All of this information can be provided verbally, however if the cardholder requests a written confirmati on, one must be supplied with the following information: Cardholder name provided by the cardholder, account number and expiration date  Confirmation Code   Name and exact physical address of the establishment Cardholder’s obligations  - – out ti or me the following day, Register by check Cancel the reservation –  Rate  Any other reservation details The Visa Reservation Services allows the cardholder the right to cancel a guaranteed A reservation. The merchant must accept all cancellations prior to the specified time. exceed 72 hours prior to the scheduled arrival date. In cancellation time period must not the event the cardholder makes a reservation within 72 hours of the date of arrival the Developed by: First Data Payments Compliance Rev 04/17 199 Confidential & Proprietary to First Data 234 of

200 Dispute Management Guide . If the cancellation deadline must be no earlier than 6 p.m. on the date of arrival merchant requires that the cardholder cancel prior to 6 p.m.; the cancellation policy, including the date and time that the cancellation privileges expire must be mailed to the cardholder. A cancellation number must be provided to the cardhold er when the reservation is properly cancelled and advise the cardholder to retain it in case of dispute. A confirmation of cancellation must be mailed to the cardholder, if requested. The confirmation must include the following:  by the cardholder, account number and expiration date Cardholder name provided  Cancellation Code  Details related to the cancelled reservation The room must be held until the check - out time the following day, however if the ion a transaction in the amount cardholder did not claim or properly cancel their reservat of one nights lodging may be charged. The “No Show” transaction must receive an authorization code and include the following:  Amount of one night’s lodging plus applicable tax Cardholder name provided by the cardholder, acc  ount number and expiration date Show” on the signature line of the transaction receipt - The words “No  If the accommodations guaranteed by the Visa Reservation Service are unavailable, the merchant must provide the cardholder with the following at no charge :  Comparable accommodations for one night at another establishment  If requested a three minute telephone call and message forwarding to the alternate location  Transportation to the alternate establishment MasterCard Guaranteed Reservation Service Lodgin g merchant’s participating in the MasterCard Guaranteed Reservation Service is obligated to have a room available when the cardholder arrives, until check - out the next day. The cardholder’s name, address, account number and expiration date must be d at the time of the obtaine No Show Transaction reservation. The merchant must quote the rate of the reserved What constitutes a valid “No - Show”? accommodation and location of the establishment. The  A proper guaranteed reservation was accepted by the cardholder must be informed that merchant one night’s lodging will be billed  Cardholder did not cancel their guaranteed reservation prior to 6p.m. on the date of arrival if the cardholder does not register d the room until check out the next day - Merchant hel  by check out t - ime the following One night’s lodging plus tax is billed to the cardholder  day or does not properly cancel An authorization code was received  the reservation. The words “guaranteed reservation/no -  show” are on the signature line of the transaction receipt First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 200 of 234

201 Dispute Management Guide A confirmation code must be provided to the cardholder and advised to retain it. MasterCard recommends the guaranteed reservation be confirmed in writing, advising the cardholder of hi s or her confirmation number and cancellation procedures. The cardholder reserves the right to cancel a guaranteed reservation prior to 6 p.m. on the date of arrival. The merchant must accept all cancellations requested by the cardholder ncellation deadline, issue the cardholder a cancellation number and advise prior to the ca the cardholder to retain the number for their records. MasterCard recommends the merchant confirm the cancellation in writing, advising the cardholder of the cancellation number. A transaction in the amount of one nights lodging may be charged to the cardholder if they did not claim or properly cancel their reservation. The room must be held until the check - out time the following day. The “No Show” transaction must receive an a uthorization code and include the following:  Amount of one night’s lodging plus applicable tax Cardholder name, account number, expiration date, date of no show, assigned  room number  - The words “guaranteed reservation/no show” on the signature line If th e accommodations guaranteed by the MasterCard Guaranteed Reservation Service are unavailable, the merchant must provide the cardholder with the following at no charge:  Comparable accommodations for one night at another establishment  A three minute domestic or international call advising of the change of location  Transportation to the alternate establishment Defending Chargeback’s – Tips to Resolve Disputes Preferred Customer Progra m - Authorization Provide the dates of check in and check out on a folio or registration card to What information should be re that all authorizations granted within this ensu obtained during the registration timeframe are calculated. process? - Provide a folio or registration card with Fraud  Cardholder Name, Address and Phone Number a signature as well as an imprint/magnetic swipe  Credit Card Number and expiration of the credit card on the check in date. date that will be utilized for billing in 90 Additional charges must be processed with  Proof Terms and Conditions were days of the checkout date; therefore supply accepted by the cardholder documentation to support the validity of these Cardhold er signature on the same  additional charges. page as terms and conditions, if applicable Preferred Customer Program enrollment records Cardholder information should be Note: received face to face or online could assist in updated periodically to ensure the resolving disputes. Providing updated information is accurate First Data Payments Compliance Developed by: Rev 04/17 of Confidential & Proprietary to First Data 234 201

202 Dispute Management Guide dholder address and phone numbers along with credit card number and updated car expiration date, including a signature or click to accept area from the online form reflecting that the cardholder agrees to the benefits and billing associated with the Customer Program will prompt the dispute to be represented to the issuer. Preferred While the information would be considered compelling, it may not remedy the dispute. If there is no record that a credit is due and a credit slip would Cancelled/Returned - e of such in the rebuttal and request a copy of the cardholder’s vis been issued, ad have credit slip. The cardholder may provide a cancellation number which may not be valid. Dispute the validity of the cancellation number provided by the cardholder, supply an example of a valid cancellation number that would be issued; how many digits is it and does the digits represent anything. Process any credits due via the same means as the Do original payment. If a Visa/MasterCard was used, that same card must be credited. not give cash as a credit nor credit another credit card account at the Cardholders request. – Cardholder Disputes The cardholder may make contact with the merchant prior to disputing a transaction, therefore be willing to work with the cardholder whe n they make their initial attempt to resolve directly with you. In the event that a dispute is received, provide a rebuttal addressing all of the cardholders concerns and the steps that you have taken to work with the cardholder to rectify the situation p rior to the dispute. Include all documentation to support your rebuttal or to disprove the cardholders claim. Chargeback Scenario 1 Scenario # – A chargeback was received for Visa Reason Code 83, Fraudulent Transaction dholder is claiming that the transaction was Card Absent Environment. The car You have supplied a not authorized by anyone permitted to use the credit card. copy of the reservation information, which was completed online, reflecting the account reservation name, cardhold er name, a ddress, phone number, following: authorization code and an Address , number, expiration date of the credit card Verification response of U . Is this chargeback remedied? Yes. Visa has requested that all issuers, except for those in the Answer: al Regions participate in the Address Verification Service. An Internation AVS response of U is reflecting that the issuer does not support address verification, therefore the issuer will be held liable for the disputed transaction. 2 Scenario # been received claiming that authorization was not granted for A chargeback has the full amount of the transaction; Visa chargeback reason code 72, No Authorization or MasterCard reason code 08, Requested/Required Authorization io and the list of authorizations it is Not Obtained. Upon your review of the fol determined that the issuer failed to consider additional authorization. What documentation is needed to remedy this dispute? First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 202 of 234

203 Dispute Management Guide A copy of the folio reflecting the check in and checkout dates Answer: list of authorizations including the date and dollar amount of along with a each. As long as each authorization was approved and is within 15% of the total transaction amount, your dispute is remedied. 3 Scenario # - reason code 59 No A chargeback has been received for MasterCard Show, Addendum, or ATM Dispute, merchant billed cardholder for No Show transaction and cardholder claims they cancelled and provides the cancellation number. Upon your review of the cancellation number provided by the cardholder it is determined that the code is not valid for your establishment. The cancellation numbers granted by you include the original reservation number and this code does not follow the same pattern. What documentation is needed to remedy this dispute? lidity of the cancellation code. wer: A rebuttal addressing the va Ans While this is not a remedy, the issuer will need to review the document with the cardholder and obtain an additional rebuttal to continue the dispute. Scenario # 4 ceived for MasterCard Reason Code 37, No Cardholder A chargeback was re Cardholder claims that they were billed for a stay at your Authorization. They agree that establishment that was supposed to be paid by their employer. they originally provided their card number to r eserve the room. However, the final bill was to be paid by the employer on a Corporate Credit Card that was Upon utilized to pay for a block of rooms that was provided to you at check out. e guest’s card was your review it was found that the Corporate Card as well as th billed for the same room. What needs to be done to rectify the situation? Answer: Do not issue credit, the issuer has already Accept the dispute. provided a credit to cardholder when the dispute was initiated. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 203 of 234

204 Dispute Management Guide ened the Guarantee Reservation Service to additional rental merchants that Visa has op includes bicycle, boat or campground rental. Merchants that rent equipment may also qualify to charge a no - show fee if they follow the guaranteed reservation rules. Proper Disclos ure  Guaranteed reservation confirmations can be sent to a cardholder by mail, email or text message E  commerce merchants may provide their disclosure either near the “submit” / - to signature on digitally s igned - book” button, or via e - to - accept” / “click - - “click documents Face to face merchants allow the cardholder to sign or initial near the disclosure if  the disclosure is not near the signature panel Dispute rights for the Issuer remain in the following situations  t’s return/cancellation policy or the – Cardholder does not receive the merchan policy was not properly disclosed to the cardholder Cardholder cancels according to the agreed policy that permits cancellation –  Acquirer may remedy the dispute by proving the cardholder received and acknowledged the cancellation policy that does not permit cancellation Damages  Visa will allow merchants to charge for damages as long as the cardholder has after the damages occurred consented to pay for the damages using his card igate the cardholder to pay for damages  The merchant cannot contractually obl with their Visa card prior to the damages occurring or request to retain a deposit for potential damages Dispute Type Scenario Dispute Rights Cardholder cancels a guaranteed Issuer has dispute rights under Reason Show No - al, according to reservation for a bicycle rent Code 85. the merchant’s properly disclosed - cancellation policy, and is billed a no show. Cardholder is billed a no - show for three Issuer may process compliance for No - show billed for nights for a guarantee guaranteed reservation for two nights, as d hotel reservation, more which the cardholder failed to cancel within the merchant is only allowed to charge for than one night the merchant’s properly disclosed rental. one day’s cancellation policy. Issuer may process a chargeback for Cardholder is billed for a guaranteed show for No - equipment rental and arrives to find the Reason Code 30 – Services Not Provided equipment equipment is not available. or Merchandise Not rental Re ceived, or, if provided a credit receipt or acknowledgment that is not process, pursue its dispute for Reason Code 85. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 204 of 234

205 Dispute Management Guide AFD) - (Automated Fuel Dispenser P etroleum Preventive Measures Tips to Avoid Unnecessary Chargeback’s – all Merchants are required to obtain an authorization on – Authorization Processing transactions. Merchants processing AFD transactions are permitted to complete an authorization status check to ensure the credit card is valid prior to dispensing fuel. The tus check will protect transactions up to the maximum threshold $1.00 authorization sta amount established by the Payment Card Companies. Transactions that do exceed the maximum threshold amount require full authorization to be obtained. In the event that an authorization appro val is granted for an amount other than the $1.00 authorization status check (e.g. Partial Authorization) the maximum threshold amount will not apply. The amount of authorization is limited to the amount returned by the issuer. Ensuring processed with the applicable MCC assignments provides the issuer authorizations are with the tools to understand the type of authorization that was processed. Visa Maximum Threshold Amounts Fleet Cards $150.00 $100.00 All other Cards Visa International Maximum Thresho ld Amount All Cards $75.00 MasterCard Maximum Threshold Amounts Executive Corp Card, Corporate $150.00 Card & Purchasing Card $100.00 All other Cards $1.00 status check authorization will cover a transaction up to the above amounts. Transactions are to be processed on the date that the fuel was Tr – ansaction Processing pumped. Shutting off the pump at or below the maximum threshold amount will ensure the transaction is properly processed. – Deterring Fraud Ensure the pumps can read the full magnetic stripe data from the card. Prompt the cardholder to enter the zip code and only turn pump on when positive response is received. Implementing velocity parameters may also allow you to recognize potential risk. Rev 04/17 First Data Payments Compliance Developed by: 205 Confidential & Proprietary to First Data of 234

206 Dispute Management Guide Tips to Resolve Disputes – ck’s Defending Chargeba - Supply documentation that reflects a valid authorization was Authorization Issues received when the magnetic stripe on the card was read and the transaction has not eshold amount as applicable. exceeded the partial authorization amount or maximum thr Fraud Supplying documentation to show that the card was present at the time of the – transaction and that a valid authorization approval code was obtained will assist in erfeit card. confirming if the transaction was processed with a count - Note: Implementing ‘velocity check’ program monitoring the volume and frequency of transactions will assist in recognizing potential risk. – Processing Errors If there is record that multiple transactions did occur or the rocessed properly, supply documentation to support along with your transaction was p rebuttal. Chargeback Scenario 1 Scenario # A chargeback has been received for Visa reason code 81, Fraudulent Transaction – n was not The cardholder states the transactio Present Environment. - Card card issuer reported the authorized by them or any other authorized user and the stolen Is there a remedy for this chargeback? . on the Visa Fraud Report Answer: No, AFD transactions are not protected against fraud disputes was reported lost/stolen on the date of the alleged use. when the card Scenario # 2 A chargeback has been received for MasterCard reason code 08, Requested/Required Authorization Not Obtained. A transaction in the amount of determined that a $1.00 authorization $95.00 is in dispute. Upon review it is status check was completed and the credit card used was a MasterCard Consumer Card. Is this chargeback remedied? Answer: Yes. The $1.00 authorization status check is a valid nt up to $100.00 (non Executive Corp, authorization for a transaction amou Corporate & Purchasing Card). Scenario # 3 A chargeback has been received for Visa reason code 72, No Authorization. A transaction in the amount of $80.00 is in dispute. Upon review it is determined that a $ 1.00 authorization status check was completed and the credit card used was a Visa Consumer Card. Is this chargeback remedied? Answer: The responsibility of the dispute would be split. The $1.00 p to $75.00 (non - authorization status check protected the transaction u Fleet). Therefore the merchant is liable for $5.00 of the total transaction amount. The responsibility of the dispute would be the Issuer. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 206 of 234

207 Dispute Management Guide Chapter Visa/MasterCard Programs & Services 7 Visa and MasterCard support specific merchant that provide eligible merchants with programs processing benefits, which includes select chargeback protection MasterCard Visa PayPass  Visa Easy Payment Service (VEPS)  Quick Payment Service (QPS)   PayWave  SecureCode  Verified by Visa  Program CVC2 Validation  CVV2 Validation Program  Digital Secure Remote Payment Each program has its own eligibility, processing requirements, criteria, and benefits. additional information on Please contact your Account or Sales Manager for participation. Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data 234 of 207

208 Dispute Management Guide - PayPass United States & LAC (Puerto Rico Only) PayPass allows merchants the opportunity to accept MasterCard payments for transac tions without obtaining a magnetic swipe reading of the card or signature from the cardholder for transactions in the amount of $50.00 and under in the US Region and $25 and under in LAC (Puerto Rico Only). Rico who elect to support contactless as Merchants located in the United States or Puerto a form of payment are offered chargeback protection for chargeback reason code 37 when the transaction meets the following criteria. Note s : processed m eeting all eligible criteria Chargeback benefits may only apply to transactions properly   You are not obligated to provide a receipt unless the cardholder is requesting a copy LAC (Puerto Rico Only) US Region Transaction Transaction amount amount equal to or less Full Contactless Reason Code than al to or less than equ Authorization $50 $25 37 X X MCC $50 U.S. and under Contactless X X Any X 4111* X X X 4131* 4784 X X *=Post Authorized Aggregated PayPass First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 208 of 234

209 Dispute Management Guide PayPass Canada PayPas s allows merchants the opportunity to accept MasterCard payments for transactions without obtaining a magnetic swipe reading of the card or signature from the cardholder for transactions under a specific dollar amount depending on the merchant e. category cod Merchants located in Canada who elect to support contactless as a form of payment are offered chargeback protection for chargeback reason code 37 when the transaction meets the following criteria. : s Note tions properly processed meeting all eligible criteria  Chargeback benefits may only apply to transac not obligated to provide a receipt unless the cardholder is requesting a copy  You are MCC Contactless $100 Canadian and under X Any X First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 209 of 234

210 Dispute Management Guide Quick Payment Service (QPS) MasterCard implemented the Quick Payment Service program to offer consumers a less complicated, more efficient way to complete certain types of transactions. The merchant in this program. is offered benefits by participating The Quick Payment Service program offers chargeback protection for dispute reason code 37 when the transaction met criteria for QPS at the time of settlement for the following qualifications: processed meeting all eligible to transactions properly Chargeback benefits may only apply criteria. Note: U.S. Merchants Transaction Magnetic Swiped or Merchant Received Full Amount equal Authorization Contactless MCC to or less than Description All All Applicable Applicable X X $50 U.S . Excluded Merchant MCC ’s 4829 4813 5962 5960 5542 5964 5968 5967 5966 5965 6051 6050 6011 6010 5969 6530 6532 6533 6534 6529 6537 7511 6536 6538 6540 7995 9405 First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 210 of 234

211 Dispute Management Guide Merchants LAC Magnetic Swiped or Receiv ed Full Merchant Description Authorization Contactless MCC – Transportation Suburban and Local Commuter Passenger, X 4111 including Ferries X Transaction Amount is 4121 Limousines/Taxicabs X X contingent on individual Grocery/Supermarket 5411 X X Country Location 5499 Misc. Food Stores X X 5541 Service Stations X X X Record Shop X 5735 Fast Food 5814 X X 5912 X X Restaurants Book Stores X X 5942 5994 News Dealers/Stands X X 7216 Dry Cleaners X X 7523 Parking Lots/Garage X X X X Motion Picture Theatre 7832 X 1 Video Tape Rental 784 X MasterCard has revised standards for Contactless and Quick Payment Service Transactions in International Regions  Regions impacted are Sweden – – Bosnia Herzegovina – – Montenegro Republic of Serbia – Ireland – – Zimbabwe Kazakhstan – M – alaysia First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 211 of 234

212 Dispute Management Guide SecureCode time online payment authentication environment that validates the SecureCode is a real - holder is customer is the owner of the account presented for payment. When the card - completing an on line transaction and the merchant participates in SecureCode; authentication is made to ensure the customer is the authorized cardholder for the designated card. This process takes place prior to the authorization request. When the merchant participates in SecureCode they have the ability to transport various types of cardholder authentication data to the issuer which can be validated and authorized with a defined response. participate in the MasterCard SecureCode program are erchants who Ecommerce m s dispute reason code offered chargeback protection for 3 63 when the 7, 49* and . transaction meets the following criteria Note: Chargeback benefits may only apply to transactions properly processed meeting all eligible criteria. ommerce transaction  Ec  Authorization was obtained for the amount of the transaction AND  included ssuer Risk I Authentication Full from Chargeback NOTE: Commercial cards are Interregional US to protection for MC SecureCode except Attempted Authentication Based Received Canada Decisioning X X X Merchant located in the US/Issuer located in the US X X X Merchant located in the US/Issuer NOT located in the US X X X Merchant located in Canada/Issuer located in Canada X X X Merchant located in Canada/Issuer NOT located in Canada X X X Merchant located in LAC/Issuer located in LAC X X X Merchant located in LAC/Issuer NOT located in LAC Full Authentication is received when a merchant attempts to obtain a valid SecureCode ve reply. When the merchant attempts to obtain a response and the issuer returns a positi valid Secure Code response and the issuer and or cardholder do not participate in SecureCode the Authentication is considered an “attempt” only. *Chargeback protection only on fully authenticated SecureCod e transaction for reason code 49. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 212 of 234

213 Dispute Management Guide U.S. Based Merchant - CVC2 Validation Program The CVC2 Validation program eliminates the need for merchants in a face - - face to environment to obtain an imprint if the card is not able to be magnetically swiped. sale - of - Merchants that participate will collect and key the 3 - digit CVC2 value at the point and review the result code. If a fully matched result code of an “M” is received it is considered a n applicable replacement to an imprint. The full match result code of an “M” is considered an imprint for purposes of responding to a chargeback reason code 37. Once a copy of the transaction receipt has been received l other transaction conditions (i.e., authorization for the by First Data and validation of al full amount of the transaction, cardholder signature, and fully matched result code was obtained) occurred, the chargeback may be represented to the issuer. Program Qualifications: ated in the U.S. Merchant loc  Card Present with magnetic stripe failure only  Transaction was key  entered -  CVC2 was included in the authorization request with a value of “M” Authorization Approval  Participating merchants would simply provide a  response to the retrieval r equest or chargeback with the signed, authorized sales draft and, indicate the CVC2 matched to remedy the dispute The following MCC codes may not participate in the CVC 2 in Lieu of Imprint to support codes must provide an imprinted card presence. Merchants processing under these MCC and signed receipt to remedy reason code 37 disputes: 9405 7995 6540 4829 6010 6050 6051 7801 9754 7802 is MasterCard CVC2 Validation Program a U.S. domestic only program . : Merchants participating in this program mu st understand that CVC2 must only be Note used for authorization and must never be recorded or stored by a merchant or by the merchant’s POS system. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 213 of 234

214 Dispute Management Guide Commercial Payment Account Product asterCard Commercial Payments Account product provides differentiated chargeback M business payments market. - to - rules to more effectively compete in the business chargeback reason codes are invalid for MasterCard Commercial The follow ing Payments Account; 7, 12, 37, 40, 41, 42, 49, 50, 53, 54, 55, 59, 60, 63, 70 and 71. 0 Digital Secure Remote Payment Digital Secure Remote Payments receiving full authentication will receive chargeback protection for the following reason codes:  – No Cardholder Authorization 37 Questionable Merchant Activity – 49  - 63  Potential Fraud – Cardholder Does not Recognize 70  – Chip Liability Shift 71 –  Chip/PIN Liability Shift holder participated in the initial Digital Secure Remote For RC 37, evidence that the card Payment transaction can be represented if the dispute involves a transaction representing the partial shipment of goods subsequent to a Digital Secure Remote Payment transaction The representment doc  umentation should include all of the following: The initial transaction was a Digital Secure Remote Payment Transaction  or was Secure Code - initiated  Description of the goods or services purchased in the initial transaction  Date and authorization approval code for the initial transaction AND The initial transaction was not disputed  First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 21 4 of 234

215 Dispute Management Guide U.S., International, & LAC – Easy Payment Service The Visa Easy Payment Service program allows most merchants the opportunity to s without obtaining a signature from the cardholder accept Visa payments for transaction or providing a transaction receipt, unless requested, for transactions in the amount of $25 and under. The Visa Easy Payment Service program offers chargeback protection for dispute reason codes 1. 75, 8 Note: criteria. processed meeting all eligible Chargeback benefits may only apply to transactions properly - to - face Card Transaction must be face Present  -  Magnetic Swiped or Contactless Full Authorization  Amount is $25.00 or less   Amount is $50 or less fo r MCC 5310 & 5411 (U.S. only) Visa USA Domestic, International or LAC   be one of the below MCC’s: NOT Must Excluded MCC’s: 5960 4829 5542 5962 5964 5965 5966 5968 6012 7995 6011 5969 6010 5967 9701 9405 9700 9702 9950 Rev 04/17 First Data Payments Compliance Developed by: Confidential & Proprietary to First Data of 215 234

216 Dispute Management Guide – Payment Service Easy Canada Region The Visa Easy Payment Service program allows most merchants the opportunity to accept Visa payments for transactions without obtaining a signature from the cardholder or providing a transaction receipt, unless requested, for transactions in the amount of $25 and under. The Visa Easy Payment Service program offers chargeback protection for dispute reason 8 75, 60, codes 1. Chargeback benefits may only apply to transactions properly Note: processed meeting all eligible cr iteria. face Card Present - Transaction must be face - to -  Must be Visa Canada Domestic   Magnetic Swiped or Contactless  Full Authorization  Amount is $25.00 Canadian or less (Swiped)  Amount is $50.00 Canadian or less (Contactless)  l or LAC Visa USA Domestic, Internationa be one of the below MCC’s: NOT  Must Excluded MCC’s: 5960 4829 5542 5962 5964 5965 5966 6011 6012 7995 5967 6010 5968 5969 9405 9700 9701 9702 9950 Developed by: First Data Payments Compliance Rev: 04/1 7 Confidential & Proprietary to Fir 234 of 216 st Data

217 Dispute Management Guide PayWave cket transaction amounts in order PayWave offers protection to the merchant for small ti to allow the convenience of requiring only a swipe or ‘wave’ of the card or contactless device. Visa transactions that qualify at the time of settlement under one of the applicable custom programs listed below are protected from chargeback payment service (CPS) interchange reason code 81 as long as the additional transaction qualifications are met. Note: Chargeback benefits may only apply to transactions properly processed meeting all eligible criteria. CPS/Retail  , Credit/Debit CPS/Supermarket CPS Retail 2, , t/Debit Credi CPS/Restaurant, CPS/Retail Service Station, CPS/Small Ticket Magnetic Swiped or Contactless  Terminal must be Contactless Capable with a Terminal Capability Indicator  of “8”  Transaction amount $24.99 and under Canada Region PayWave transactions: Transaction amount CAD $100 for all Canada acquired transactions in all  merchant category codes that support Visa PayWave. This change will align the transaction limit for all MCCs with that of the AFD merchant cat egory. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 217 of 234

218 Dispute Management Guide Verified by Visa - Verified by Visa is a real time online payment authentication system that validates the customer is the owner of the account presented for payment. When the cardholder is completing an on - line transaction a nd the merchant participates in Verify by Visa the cardholder is prompted to enter a password that they created when they registered with their bank. The password is forwarded to the issuer for confirmation. The Verified by fully authenticated the cardholder resumes their Visa window disappears and if transaction, if the password is not confirmed an error message will appear. In the event the cardholder is not a participant in Verified by Visa an attempt to authenticate is recorded. The Verified by Vis a program offers chargeback protection for dispute reason codes 75 and 83 when the merchant fully authenticated or attempted authentication. processed meeting all eligible Chargeback benefits may only apply to transactions properly criteria. Note: Com - E  merce transaction  Positive response; fully authenticated  Issuer/cardholder does not participate, attempted to authenticate  Excludes MCC’s: – 4829 – Wire Transfer/Money Orders Direct Marketing (Inbound Teleservices Merchant) – 5967 – - 6051 – utions Foreign Currency, Money Orders (Not financial Instit Non – , Travelers Cheques Wire Transfer) 7995 – – Betting including Lottery Tickets, Casino gaming chips, OffTrack Betting and Wagers at Race Tracks – Any merchant identified as “High Risk” due to excessive fraud and/or geback’s char Note: for U.S. region: - Pre Paid and Commercial cards are excluded from protection for attempted authentication (ECI 6). Pre - Paid cards are excluded from protection for attempted authentication (ECI 6) The transaction and authorization logs do no t need the same values in the ECI field. Note: for LAC region: - Brazil Domestic and Pre Paid or Commercial cards are excluded from protection. Domestic eCommerce transactions in Brazil, the chargeback is valid if the transaction value of 6. was processed with an ECI Note for International: The transaction and authorization logs need the same values in the ECI field. Non - U.S. Domestic and International rules will allow e - commerce transactions on Commercial cards to qualify for liability shift when full or attempted authentication has been performed. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 218 of 234

219 Dispute Management Guide CVV2 Validation Program - U.S. Based Merchant The CVV2 Validation program eliminates the need for merchants in a face - - face to environment to obtain an imprint if the card is not able to be magnetically swiped . of - - digit CVV2 value at the point Merchants that participate will collect and key the 3 - sale. CVV2 is considered an imprint for purposes of responding to a chargeback reason code ata and validation 81. Once a copy of the transaction receipt has been received by First D of all other transaction conditions (i.e., authorization for the full amount of the transaction, cardholder signature, and result code was obtained) occurred and retrieval suer. fulfillment requirements were met it may be represented to the is Program Qualifications: U.S. Domestic Transaction  Card present with magnetic stripe failure only  entered - Transaction was key  CVV2 was included in the authorization request  Authorization Approval  Signature obtained on the sales draft and retrieval  request properly fulfilled Excluded MCC’s: 7995 6011 4829 6010 6051 Note: Quasi Cash, Cash Back, Manual Cash disbursements, As well as merchants assigned MCC at race track betting and wagers - Betting, including lottery tickets, casino gaming chips, off 7995 - tracks do not receive the protection and will still be required to obtain a manual imprint. Visa . International transactions are not eligible for this protection Virtual Payment Account Product Visa Virtual Payments Account product provides in select markets, enabling online travel agencies, travel service provides, and other travel payment providers to use virtual accounts to pay travel suppliers for inventory; effective 4/22/17. ing The follow rtual Payment Program Visa Vi chargeback reason codes are invalid for transactions: . 57, 62, 81 and 83 First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 219 of 234

220 Dispute Management Guide Chapter scover Programs & Services Di Discover Network supports specific merchant programs that provide eligible merchants with 8 processing benefits, which includes select chargeback protection Discover Network Programs No Signature Required Address Verification Service (AVS) Security Code ProtectBuy Secure Program Each program has its own eligibility, processing requirements, criteria, and benefits. Please contact your Account or Sales Manager for additional information on participation. Developed by: First Data Payments Compliance 7 Rev: 04/1 st Data Confidential & Proprietary to Fir 220 of 234

221 Dispute Management Guide / No PIN Required No Signature is / No PIN No Signature Discover Network inc luding PIN in the No Signature Program. Required program to offer consumers a less complicated, more efficient way to complete certain types of transactions. The merchant is offered benefits by participating in this program. Signature The No ection for dispute Required program offers chargeback prot / No PIN reason code UA01 when the transaction met criteria for NSR (No Signature Required) at the time of settlement for the following qualifications: Chargeback benefits may on criteria. processed meeting all eligible ly apply to transactions properly Note: No Signature Required Program Criteria or less 50 .00 $  Transaction amount - ic Magnet  Stripe or electronically Real  Authorization granted CC  NOT excluded from the program M No Signature Required Excluded MCC’s: – 4829 Money Transfer Non - Financial Institution 6010 Member Financial Institution – Manual Cash Disbursements – Automated Cash 6011 Member Financial Institution Disbursements 6050 Cash - Quasi al Institution Member financi – Cash Financial Institution Quasi - 6051 – Non - Money Transfer for a Purchase 6531 – Payment Service Provider Member Financial Institution 6532 Payment Service Provider – Payment Transaction action - Merchant – Payment Service Provider 6533 Payment Trans 6534 Money Transfer Member Financial Institution – Betting (Lottery Tickets, OTB, etc) 7995 First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 221 of 234

222 Dispute Management Guide dress Verification Service Ad Address Verification Service is a risk management tool that assists merchants in making not informed decisions about a transaction in a card present environment. The AVS tool - - provides the merchant with verification of the cardho lder’s billing address on file with the issuer. Merchants should utilize AVS responses in addition to other risk management tools to prevent fraudulent transactions. The following are AVS response codes that may be received: Address Verification Service Response Codes: digit Postal Code matches - Address matches, nine X - Address matches, five A digit Postal Code matches Address Y matches, Postal Code does not T digit Postal Code matches, address does not - Nine Z Five - digit Postal Code matches, address does not Nothing matches N W No data from Issuer Authorization system U Retry, system unable to process S AVS not supported at this t ime G Address information not verified for international transactions Security C ode The Security Code is a three (3) digit number on the card that a merchant may verify with the issuer during an authorization request. This number is only present on the actual card. nagement tools, The merchant may utilize the verification in addition to other risk ma such as AVS. The following are valid Security Code response codes: Security Code Response Codes: Not Processed P Security Code should be on the card, but the merchant has S indicated that it is not present U Issuer is not certified M ch Security Code Mat N Security Code No Match First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 222 of 234

223 Dispute Management Guide ProtectBuy Secure Program Discover ProtectBuy Services provides protection to merchants for transaction that the cardholder has claimed is fraudulent. rd Not Present Fraud Ca  7030 UA02 - 4752 AA  - Does Not Recognize : effective 4/22/17 Excluding the following specific merchant categories; - Non – Money Transfer - 4829  Financial Institution (e.g., wire transfers or money financial institutions) - orders purchased at non - ct Marketing - 5967  Dire Inbound, Teleservices - - 6051  Financial Institution (e.g., foreign currency, money order, Quasi Cash Non travelers checks) 7995 Betting (e.g., sportsbook/fantasy/social gaming; when regulated and not  - covered by other MCCs) First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 223 of 234

224 Dispute Management Guide Chapter Services Programs & AMEX American Express Network supports specific eligible merchant programs that provide 9 with processing benefits, which merchants includes select chargeback protection AMEX Network Programs Keyed No Imprint Program No Signature Program ey k Safe Each program has its own eligibility, processing requirements, criteri a, and benefits. Please contact your Account or Sales Manager for additional information on participation. First Data Payments Compliance Rev: 04/1 7 Developed by: 224 st Data Confidential & Proprietary to Fir 234 of

225 Dispute Management Guide Keyed No Imprint Program The Keyed No Imprint Program allows a Merchant to submit a transaction where the card and the cardholder are present w ithout taking an imprint of the card. Under the Keyed No Imprint Program, AMEX will not exercise a chargeback for such charges based solely on the merchant’s failure to obtain an imprint of the card. mbers of charges under the Keyed No Imprint If AMEX received disproportionate amounts or nu Note: Program, merchant must reduce the number of disputed charges. If efforts fail, AMEX may place Merchant in a chargeback program, revoke participating in the Keyed No Imprint Program, or revoke, cancel or disentit le card acceptance. Keyed No Imprint Program Criteria  - must be key Transaction entered Card and Cardholder were present for the transaction  Authorization granted  CID Number must be confirmed as a positive match  No Signature Program - Person charges not to ram allows a merchant who process In The No Signature Prog request a signature from the cardholder on the charge record. Merchants who do not conduct In - Person charges (i.e., internet, mail order or telephone order), prohibited merchants and/or prohibited transactions, High Risk Merchants or Merchants placed in American Express’ Fraud Full Recourse Program are excluded from participating in the program. Under the No Signature Program, AMEX will not exercise a chargeback for such charges based solely on th e merchant’s failure to obtain a signature at the point of sale. No Signature Criteria:  Charge amounts must be $50.00 or less Indicate the card and the cardholder were present at the point of sale   Valid Approval was received d disproportionate amounts or numbers of charges under the No Signature If AMEX receive Note: Program, merchant must reduce the number of disputed charges. If efforts fail, AMEX may place voke, cancel or Merchant in a chargeback program, revoke participating in the No Signature Program, or re disentitle card acceptance. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 225 of 234

226 Dispute Management Guide Safekey American Express is a program offered to mitigate fraud in the eCommerce shopping environment. Safekey is being mandated to be used in the US region. Fraud protection is not offered at this time. Developed by: 7 Rev: 04/1 First Data Payments Compliance Confidential & Proprietary to Fir 226 st Data of 234

227 Dispute Management Guide Glossary An issuer assigned number that identifies a Account Number cardholder’s account. A member bank of Visa and/or MasterCard who A cquirer enters into a merchant agreement to enable merchants to accept card products RN) Acquirer Reference Number (A The 23 digit reference number that identifies a transaction. A risk management tool which helps reduce the Address Verification Service (AVS) unknowing acceptance of fraudulent mail and telephone order transactions by facilitating cardholder billing address with the verification of the card issuer An authorization response notifying the merchant that Approval Response a transaction may be completed because the customer has “open to buy” availability on their account at that particular time. Arbitr ation A process where Visa, MasterCard and Discover determines financial liability between members for Interchange transactions that have been charged back. Authorization A process, where an issuer, an authorizing processor, - ves or declines a in processing appro or stand transaction. A code that an issuer, its authorizing processor, or Authorization Code stand - in processing provides to indicate approval of a transaction. The code is returned in the authorization response message and is usually recorded on the transaction receipt as proof of authorization. in - Authorization Response An issuer, authorizing processor, or stand processing reply to an authorization request or account number verification. (Approval, Decline, Pickup or Referral) First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 227 of 234

228 Dispute Management Guide A six digit number assigned by Visa used to identify a ification Number (BIN) Bank Ident member or processor for authorization, clearing or settlement. A person to whom an account has been issued, or who Cardholder is authorized to use the account. - Absent Environment An environment where a transaction is completed Card under both of the following conditions: cardholder is not present and card is not present. - Cardholder Activated Terminal A magnetic stripe terminal or chip reading device that (CAT) is not an AT M. (Automated dispensing machine, limited - amount or self - service terminal). Card An environment where a transaction is completed Present Environment - under both of the following conditions: cardholder is present and card is present. lue A unique check value encoded on the magnetic stripe Card Verification Va and replicated in the chip of the card to validate card information during the authorization process. CVV = Visa CVC = MasterCard CID = Discover and Case Number A unique number assigned to retrieval chargebacks when they are received by First Data Central Processing Date The date a transaction or chargeback/retrieval is sent through Interchange. Chargeback A financial dispute initiated by the Network normally on behalf of their cardholder. C hargeback Period The number of calendar days from the central processing date of a transaction, during which time the issuer may exercise a chargeback right. An issuer assigned number that identifies the source Chargeback Reference Number of an outgoing c hargeback. Chip Card computer chip. with a embedded been A card that has This chip contains a memory and interactive capabilities used to identify and store additional information about the cardholder . First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 228 of 234

229 Dispute Management Guide The cardholder verification method tha Chip PIN Card t is conducted with the chip card itself. The PIN entered is verified against the PIN in the chip memory. The PIN is stored in the card. A device that is capable of readying and processing Chip PIN Terminal data from magnetic stripe, chip cards and a key pad. Chip PIN Transaction Transactions can be completed online or offline and the cardholder is required to enter a PIN at the POS. A device that is capable of readying and processing Chip Terminal data from magnetic stripe and chip cards. action The card is inserted in the chip reader of the terminal, Chip Trans the electrical contacts inside the terminal come into contact with the chip embedded into the card and allows communication online, between the issuer, the terminal terminal, and card; or offline, between and the card. The chip and terminal identify and authenticate each other. A good faith attempt to resolve a chargeback dispute Collections after all rights under Visa/MasterCard regulations have expired. Compliance A process where Visa/Mast erCard resolves disputes between members arising from violations of the operating regulations when the requesting member can certify that a financial loss has occurred, or will occur for a specific amount, and no chargeback right is available. l File Credentia On A transaction that is a result of a contract entered into - - by the cardholder and the merchant to automatically bill the account A merchant’s refund or price adjustment processed to Credit Transaction a cardholders account. Currency Conversion Rate The government mandated rate in effect on the applicable central processing date. An authorization response indicating that the funds Decline Response are not available and should not be honored. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 229 of 234

230 Dispute Management Guide A code indicating the statu s of supporting Documentation Indicator documentation. A transaction where the issuer of the card is located in Domestic Transaction the same country/docile as the merchant. A merchant that conducts the sale of goods or Electronic Commerce Merchant services (eComm) ly over the Internet or other networks. electronical Electronic Commerce Transaction A transaction conducted over the Internet or other network. (eComm) required Electronic Transaction Receipt Terminal generated receipt reflecting the data. (POS Receipt) File Exception A file maintained that contains a list of account numbers with pre - determined authorization response codes. Expiration Date The date indicating the last day the card can be used. A card on which the embossed, encoded, or printed Expired Card tion date has passed. expira Face - to - Face Environment An environment where a transaction is completed under all of the following conditions: cardholder is present and individual representing the merchant completes the transaction. ccurs w Fallback Transaction O hen a chip transaction is attempted (terminal fails to read the chip and then reverts to the magnetic stripe or the transaction is key entered) but fails and the terminal reads the magnetic stripe or the transaction is key entered, authorized and identifie d as fallback (POS Entry Mode). The amount of a transaction above which a merchant Floor Limit must obtain an authorization. A four digit number assigned by MasterCard that ICA Number identifies all member, issuers and processors. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 230 of 234

231 Dispute Management Guide a transferred from a card to a Cardholder dat Imprint transaction receipt to complete the transaction. There are two kinds of imprints: electronic and manual. The system through which Visa/MasterCard members Interchange exchange authorization, processing and settlement inform ation. A transaction where the issuer of the card is located in International Transaction a different country/docile as the merchant. Issuer A member of any Network that issues accounts. A cardholder activated terminal that has d Amount Terminal - Limited ata capture only capability, and accepts payment items such as parking garages, road tolls, theater entrance and magnetic strip telephones. Magnetic Stripe The stripe on a card that contains the necessary tion. information to electronically complete a transac A point of transaction terminal that reads the Magnetic Strip Terminal magnetic stripe on a card. Mail/Phone Order Merchant A merchant that completes mail/phone order transactions. Mail/Phone Order Transaction A transaction where a cardhold er orders goods or services from a merchant by phone, mail or other means of telecommunication and neither the card nor the cardholder is present at the merchant location. A device specifically designed to transfer the Manual Imprinter embossing on a card and merchant plate to a transaction receipt MasterCard Global Security Bulletin Primary source of security changes and fraud reporting reflecting the merchants who no longer accept fraud chargeback’s, merchants who need to accept fraud chargeback’s and m embers listed in the - Cardholder Merchant Collusion Program. The text field in the clearing record of a chargeback Member Message Field (MMT) - formatted or representment that contains pre messages. First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 231 of 234

232 Dispute Management Guide o An entity that contracts with an Acquiring Bank t Merchant originate transactions. Merchant Agreement A contract between a merchant and an acquiring bank containing their respective rights, duties and obligations for participation in the acquiring bank program. the principal trade, profession, or Merchant Category Code (MCC) A code designating line of business in which the merchant is engaged. No A transaction resulting from a cardholders alleged Show Transaction - failure to cancel or use the reservation. No Signature Required Merchant A merchant that qua lifies to participate in the No Signature Required program on the basis of its assigned merchant category code (MCC). No Signature Required Program transaction program which exempts - of - A point merchants in certain categories from requiring the s signature or providing a transaction cardholder’ receipt, unless requested, for transactions under Network designated amount. A transaction under the Network designated amount No Signature Required Transaction completed without the cardholders signature, in a - to - face environment, by a qualified merchant. face - Pick up Card Response An authorization response given to a merchant requesting that the cardholders card be confiscated. Personal Identification Number A unique number that is entered at the POS to be against the PIN in the data on the chip. veri fied up (PIN) Processing Method The way merchants send their transactions to the acquirer/processor to be funded. Processor A Company (i.e., First Data) that contracts with an uch as; Acquiring Bank to provide services s processing/settlement of card transactions, customer service support, and retrieval/chargeback processing for merchants A merchant that completes a Quasi Cash Merchant - Quasi - cash transaction. First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 232 of 234

233 Dispute Management Guide erchant’s sale of items A transaction representing a m Cash Transaction - Quasi that are directly convertible to cash, such as: casino gambling chips, money orders, deposits, wire transfer money orders. Reason Code A code that identifies the reason for a chargeback/retrieval Recurring Services Merchant A merchant that provides services of an ongoing nature to a cardholder and completes recurring transactions to bill the cardholder for these services. A transaction for which a cardholder provides Recurring Transaction permission, in either written or e lectronic format, to a merchant to periodically charge his/her account number for on going goods or services. These may include insurance premiums, subscriptions or membership fees. An authorization response generated by the issuer Referral Response esting the merchant or acquirer/processor to requ contact them for further instructions before completing the transaction. A clearing record that an acquirer/processor presents Representment to the issuer through Interchange after a chargeback. Retail Merchan A merchant that is not one of the following: t Mail/Phone order, Recurring Services merchant or T&E merchant. Retail Transaction A transaction that originates at a retail merchant. Retrieval Request A request by an issuer for a copy of a previously ocessed transaction, which could include a paper pr copy or facsimile, or an electronic version. There is no initial financial liability associated. Service Terminal - Self - A cardholder activated terminal that accepts payment for goods or services. - A transaction that originates at a self rvice Transaction service terminal. - Self Se First Data Payments Compliance Rev 04/17 Developed by: Confidential & Proprietary to First Data 233 of 234

234 Dispute Management Guide In Processing - Stand Authorization services that are provided on behalf of the issuer when the issuer or its authorizing processor is unavailable. Substitute Transaction Receip A paper form or record that is not a transaction t receipt and that a member or merchant provides in response to retrieval request, when allowed. Track 2 Data One of the two separate tracks of data that is stored on the magnetic stripe on the back of the card which contains information regarding the account Transaction The act between a cardholder and a merchant, or a cardholder and a member that results in the generation of a sale or credit. processed. Transaction Currency The currency in which a transaction was Transaction Date The date on which a transaction between a cardholder and a merchant occurs. Transaction Receipt An electronic or paper record of a transaction generated. A card number which is not reflecting full 16 digit Truncated Card Number number On A transaction that is a result of standing instructions Unscheduled Credential File - - on a contract entered into by the cardholder and the - merchant to automatically bill the account on an as needed basis blocked cardholder account numbers. A printed list of Warning Bulletin First Data Payments Compliance Rev: 04/1 7 Developed by: Confidential & Proprietary to Fir st Data 234 of 234

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