SHAZAM Card Products Training Guide€¦ · SHAZAM can compile your cardholders' completed transactions into a daily posting file you download and interface to your core. This file

SHAZAM Card Products Training Guide The SHAZAM Network - October 12, 2020

© 2020 SHAZAM, Inc. All rights reserved. Confidential and Proprietary Page 1

SHAZAM Card Products Training GuideSupport and Reference Options, page 2

Card Authorization Parameters, page 3

Card Authorization Products, page 5

Report Delivery, page 7

Daily Procedures, page 8

Settlement, Prefunding and Balancing, page 9

Handling Lost or Stolen Cards, page 17

Chargebacks and Fraud Reporting, page 20

Closing Accounts/Deleting Card Data, page 26

Plastics and PINs, page 28

Outstanding Authorizations (OA), page 31

Risk Management, page 32

Monthly Reports and Billing, page 37



Support and Reference OptionsSHAZAM® makes the following support services available to participating financial institutions.

SHAZAM ResourceSHAZAM Resource is SHAZAM’s online technical library. With SHAZAM Resource, you can quickly find answers to almost any SHAZAM-related question. SHAZAM Resource contains product reference guides, network specifications, operating rules, report samples, operations procedures, sample forms, and much more. To view SHAZAM Resource, click SHAZAM Resource on the SHAZAM Access home page.

www.shazam.net You can go to SHAZAM’s website for information about SHAZAM products and services. The website also features an ATM locator that you and your cardholders can use to find ATMs available within an entire city or near a specific street address.

SHAZAM Blog SHAZAM Blog features the perspectives of nationally recognized experts on topics like cybersecurity, fraud, payments, marketing and other critical issues facing your business. Be sure to check in from time to time, or sign up for email alerts when new content is posted.

Training ServicesSHAZAM regularly hosts operational and product-specific webinars. For the most up-to-date information on these learning opportunities, click Training Services on the SHAZAM Access home page. Register for upcoming webinars or watch videos of past events on demand using the links in SHAZAM Access > Training Services.

SHAZAM Web RepSHAZAM Access users can submit questions to client support electronically through SHAZAM Web Rep. After you submit a question, you will receive an automated email response, followed by a follow-up email or phone call from a member of the client support team. Web Rep also offers you a convenient way to update the contact information for your organization. You’ll find the Web Rep link in the upper-right corner of the SHAZAM Access home page.

SHAZAM Client Support You can reach a member of the SHAZAM client support team by calling 800-537-5427 and selecting from the menu options. SHAZAM will ask for your organization's routing number for all calls. SHAZAM also asks for your organization’s four-digit passcode if you discuss confidential cardholder data. One passcode is shared by all staff within your organization.

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Card Authorization ParametersDepending on the type of authorization service you choose, SHAZAM can perform some or all of the steps necessary to complete a transaction for your cardholders. SHAZAM's authorization parameters can include card limits, card statuses, PIN validation, account types and balances and transaction restrictions.

Card LimitsA card's limits display within the Card Authorization File (CAF) section of the Cards tab in SHAZAM Access, and can be edited at any time. Depending on the card authorization product that you use, these limits may apply to all transactions, or only to those for which SHAZAM performs a stand-in authorization. The following limits apply:

• Daily — Maximum dollar amount of cardholder transactions for one calendar day. It includes ATM withdrawals, point-of-sale (POS) purchases and funds transfer debits. This limit resets at midnight Central Time (CT).

• Unmanned — Maximum dollar amount of cardholder withdrawals from ATMs in one calendar day. This limit resets at midnight CT.

• 3-Day — Maximum dollar amount of cardholder single-message transactions (ATM withdrawals, single-message POS purchases, and funds transfer debits) in any consecutive three-day period.

Card StatusThe status of a card may make the card unavailable on a temporary or permanent basis.

• A Temporary Card Block (TCB) may be placed on a card by you, by SHAZAM, or by the cardholder through services such as Brella. For more information, see Temporary Card Block (TCB).

• A card becomes permanently unavailable when a hot card status has been applied or if the card has expired. Access can only be restored by issuing a new card number. For more information, see Hot Status.

PIN ValidationSHAZAM can validate your cardholders' PINs during the transaction authorization process. The PIN fail count is displayed at the top of the Cards screen when viewing any PAN. When a cardholder enters their PIN unsuccessfully four consecutive times, SHAZAM takes action to prevent potential unauthorized use of the card. You determine which of the following actions SHAZAM takes:

• Deny all single-message transactions on the card until midnight CT the current day.• Deny all single-message transactions until you reset the card’s PIN fail attempts by:

• Clicking the Reset PIN Fails button on the SHAZAM Access Cards tab or • Performing any type of CAF maintenance for the card.

• Capture the card.

For information about cardholder selected PINs, refer to SHAZAM Easy PIN section.

Account Types and BalancesSHAZAM can authorize transactions for your cardholders' demand deposit accounts (DDA) or savings accounts. SHAZAM calculates the balances for these accounts by using a starting balance you provide and



adjusting that balance for recent transactions. The ledger balance is typically the balance in the account at your institution. The available balance may be the same as the ledger balance, or it may include items your core has pending on the account, such as cash, ACH or check withdrawals or deposits.

Account types and balances are optional for card authorization programs utilizing a real-time connection to a data center. If the information is on file at SHAZAM it may be used only for stand-in authorizations.



Card Authorization ProductsSHAZAM offers several types of card transaction authorization products using some or all of SHAZAM’s card authorization parameters. For most issuers, PIN validation is a service performed by SHAZAM for all of the product types listed.

Card Authorization Service If you use the Card Authorization Service (CAS), SHAZAM authorizes transactions for your cardholders by referring to a card authorization file (CAF). The CAF contains account numbers and balances, withdrawal limits, card statuses and transaction restrictions for all of the cards you issue. As transactions occur, SHAZAM accumulates them in a file that you download and process for posting the debits or credits to your cardholders’ accounts and offsetting those funds to an internal account. An afternoon transaction posting file is created by SHAZAM, and the morning file is optional.

CAS Real TimeCard Authorization Service (CAS) Real Time includes the features of CAS and adds the benefit of a real-time connection to your core. With CAS Real Time, your transactions are authorized using a combination of SHAZAM CAF data such as an available account, and the data housed on your core, such as the account balance.

If your CAS Real Time processor connection is unable to respond, SHAZAM performs a stand-in authorization using the information we have. You can choose to provide SHAZAM with account balances one or more times daily to be used when performing a stand-in authorization.

You can specify that your processor or SHAZAM performs limit checking for authorizations. Alternatively, you can specify that SHAZAM performs limit checking for all transactions before routing them to your processor.

With CAS Real Time, an afternoon posting file is created by SHAZAM. However, the real-time connection to your processor enables transactions to memo post at the time the transaction is approved.

Transaction Posting FileWith CAS and CAS Real Time, SHAZAM can compile your cardholders' completed transactions into a daily posting file you download and interface to your core. This file is created at your choice of 12 p.m., 2 p.m., 3 p.m., 4 p.m., or 6 p.m. CT. SHAZAM will also create an optional 7 a.m. CT file for issuers who don't have a real-time connection to SHAZAM for card authorizations.

Issuers who maintain a real-time processor connection to SHAZAM may have systems to post transactions directly from the online messages and do not need SHAZAM to compile a daily transaction posting file.



Online Processor Real TimeWith Online Processor Real Time, SHAZAM maintains a connection to your data center or issuer processor and communicates with that system to ensure transaction authorization gets completed. If your data center or issuer processor is unavailable, SHAZAM performs a stand-in authorization. Stand-in processing (STIP) can be performed using either a positive or negative file of card information:

• Positive file — SHAZAM authorizes stand-in transactions based on individual limits set for each PAN. The daily and unmanned limits apply, but the 3-Day limit does not. If there is no valid CAF information for a card, all transactions are denied for the card.

• Negative file — SHAZAM authorizes stand-in transactions based on a daily and unmanned limit for each bank identification number (BIN), and not one for each card. Unless a negative card status (hot card or blocked card) shows in the CAF information, any transaction is approved if it falls within the preset limits for the card's BIN and no other decline conditions exist.

For any normal, non-stand-in authorization, SHAZAM can perform limit checking and/or PIN validation before routing the transaction to the issuer processor for authorization.



Report DeliverySHAZAM offers many options for the delivery of your daily, weekly, and monthly reports:

• SHAZAM Access Files — Download one or more reports in a ZIP file and save them to any network directory you choose. Individual report files are formatted as text documents and can be opened using Microsoft Word or another word processing program.

• SHAZAM Access Files with FTP — With the help of your core vendor or processor, you configure a FTP client (computer) to download the available reports directly from the Files tab in SHAZAM Access. You and your vendor or processor will determine the network file storage location you'll use.

• Processor — Reports are retrieved using the same direct connection between SHAZAM and your processor that's used for transaction routing and other exchanges of data. Work with your processor's support staff to learn how to access your SHAZAM reports.

SHAZAM's business day runs from 6 p.m. CT on one calendar day to 6 p.m. the next. Daily reports are generated for each SHAZAM business day, seven days per week. Most report files are available for eight calendar days, and SHAZAM recommends you download all available new reports each business day. This means multiple report dates are available every Monday morning and any business day after a holiday.

SHAZAM's operating rules recommend a minimum of two year retention of all reports.



Daily Procedures1. Receive SHAZAM settlement reports (SSR110, SSR120, SSR130, etc.).

• Settlement reports are usually available by 6 a.m. CT each day.

2. Receive an optional morning file (applicable for CAS issuers only).

• If you subscribe to the multiple posting file feature, the file cuts off at 7 a.m. CT and is available at 8 a.m.

• If you subscribe to the morning outstanding authorization (OA) file feature, the file cuts off at 7 a.m. and is available at 8 a.m. CT.

3. Transmit a positive balance file (PBF) to SHAZAM (not applicable to Online Processor Real Time users and optional for all others).

• NACHA rules require PPD (consumer) credits be made available to the receiver no later than 9 a.m. on the effective date of the transaction. To comply, a cardholder’s available balance should include any ACH deposits received that day.

• Each PBF transmission should include all change balances. A stale balance only results when an account has had SHAZAM activity, but a new account balance has not been sent in five days.

4. Receive the posting file (postable transactions; applicable only for CAS and CAS Real Time users).

Each institution selected a cutoff time during program setup. Files are available approximately one hour after the cutoff time. Cutoff options are as follows:

If you subscribe to the afternoon outstanding authorization file option, the file is available at the same time as your afternoon posting file.

5. Transmit a card maintenance file to SHAZAM, if applicable.

• Card maintenance files include withdrawal limits, transactions allowed to a cardholder, and DDA and savings account access. Alternatively, many issuers perform maintenance under the Cards tab in SHAZAM Access. These files may be sent multiple times a day.

6. Transmit the end-of-day PBF to SHAZAM (not applicable to Online Processor Real Time users and optional for all others).

• Account balances may change after end-of-day updating is complete and checks, EFT, and in-bank transactions have posted. Sending another PBF at this time ensures SHAZAM is authorizing activity based on the most accurate account balance.

Tip: A card maintenance file or PBF can be sent anytime and as often as necessary.

File Cut Time (in C.T)

File Available (in C.T)

12 p.m. 1 p.m.

2 p.m. 3 p.m.

3 p.m. 4 p.m.

4 p.m. 5 p.m.

6 p.m. 7 p.m.



Settlement, Prefunding and Balancing

Daily SettlementSettlement refers to SHAZAM’s process of disbursing and collecting funds among affiliated institutions and other networks to compensate for transactions. SHAZAM distributes settlement entries using the ACH system and recommends institutions receive settlement to an on-us account, although a correspondent account can be used.

SHAZAM’s daily cutoff occurs at 6 p.m. CT every day, including weekends and holidays. A settlement file is originated and settlement reports are generated for each day of the year. Reports are product-specific, therefore, your institution might not receive all reports listed. These reports are available through the SETL folder of SHAZAM Access Files or through a processor connected to SHAZAM.

Cardholder Institution Activity (SSR110). This daily report details all transactions made by your cardholders and provides a net debit or credit total for that activity.

Settlement Exception Activity (SSR114). This daily report lists chargeback, retrieval, funds disbursement, adjustment, and fee collection transactions including a net settlement figure for the items.

Institution Settlement Summary (SSR130). This report combines the card (SSR110), exception (SSR114), and terminal (SSR122) into a single debit or credit, if applicable. The ACH entry posts to your SHAZAM daily settlement account.

Tip: Refer to SHAZAM Resource for samples, explanations, and field descriptions of these and other reports.

PrefundingPrefunding covers the timing difference between SHAZAM settlement with you, and the various times at which SHAZAM must settle with other networks. Mastercard and Visa are examples of the other networks SHAZAM settles with for your cardholders' activity.

SHAZAM settles with you as of at 6 p.m. CT daily for the previous day’s cleared items. Mastercard and Visa settle with SHAZAM daily for the previous 24 hours. Prefunding covers the Mastercard and Visa settlement cycle for this previous 24-hour period.

Prefunding entries are separate from the actual settlement described in the previous section. Two ACH entries will be created each day for each type of prefunding described in the table below. One item debits the estimated amount of the next day’s settlement and the other credits the amount debited the previous day.

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Prefunding Example: Mastercard or Visa

Prefunding is reported on your Aged Outstanding Authorization and Prefunding Report (SET044) and Prefunding Report (SET045). You'll also find these in the SETL folder if you access reports from SHAZAM Access > Files.

The following table recaps the possible types of prefund entries. Your core processing software or account type (DDA or GL) may affect the way these items display on an account statement or history.

Prefund Types, Descriptions and Reports

BalancingFinancial institutions that are both issuers and acquirers should separately reconcile and balance each program. Cardholder and terminal activity should be kept in separate general ledger accounts for balancing because each type of activity involves unique balancing entries. To balance your cardholder activity separately from your terminal activity, SHAZAM recommends you establish a Cardholder In-Process GL account. Separating this activity is recommended because:

• Reconciling is cleaner and clearer.• Each type of carryover balance (card activity, terminal activity and prefunding) is visible as an end

of day balancing in its own account.• Out-of-balance situations are easier to find.• Auditors are kept happy.

SHAZAM Prefund Process

Who Does What

1. SHAZAM Calculates a prefund amount based on current day authorizations or an average of eight weeks of authorizations, issues an ACH debit your SHAZAM Daily Settlement account, and holds the prefund amount in reserve

2. Mastercard and Visa

Settle their daily transaction activity and request payment from SHAZAM for transactions made by your cardholders. One or more days' time lapses between the transaction's authorization and its settlement.

3. SHAZAM Uses your prefund amount in reserve to settle with Mastercard or Visa. The following day, SHAZAM settles for your actual transaction activity and returns the previous day's prefund. A new debit prefund amount is calculated and collected, and the process continues.

SHAZAM Prefunding Entries

Prefunding Type Company Name* Entry Description Report

SHAZAMChek Dual Message Transactions

SHAZAM PFND SHAZAMCHEK SET044SET045

Single Message Transactions SHAZAM PFND ISS NETWRK SET045

Network Prefunding (dual membership)

SHAZAM PFND ACQ NETWRK SET045



Online Processor Real Time InstitutionsYou must reconcile your cardholder posting activity with the daily SHAZAM settlement to ensure all cardholder transactions have been properly posted.

You will need a general ledger account named cardholder in-process. This account, used to make clearing entries for cardholder activity, carries a balance that reflects the difference between the SHAZAM settlement entry (with a 6 p.m. CT cutoff) and the postable transactions offset entry (with your institution’s selected cutoff). Your processor must provide you with a transaction report if their cutoff time is not at 6 p.m.

Entries to the Cardholder In-Process GL

Transaction offset. When your processor authorizes monetary transactions, their software system automatically posts each cardholder transaction to the appropriate customer’s account and offsets the net of these transactions to the cardholder in-process general ledger. Ask your processor which account they use as their offset account.

For example, if the transactions included a deposit for $500 and a withdrawal for $100, the deposit is credited to a customer’s account and the withdrawal is debited from a customer’s account. The offsetting net of these two transactions is a debit for $400, which is posted to the cardholder in-process general ledger.

Cardholder Institution Activity (SSR110) Report. The Institution Net figure on this report is part of the settlement entry that SHAZAM originates via ACH to your institution’s settlement account. Your institution manually posts the institution net to the cardholder in-process general ledger and offsets it to the designated SHAZAM settlement account.

For example, if the SSR110 net is a debit for $300, the institution debits its cardholder in-process general ledger $300 and credits its settlement account $300.

Note: If your institution has its settlement account and cardholder in-process account set up as the same general ledger account, you do not have to manually post the SSR110 report entry.

Cardholder Balancing ProceduresWhen your processor authorizes monetary transactions, each one automatically posts to the appropriate customer’s account and the offsetting net debit or credit automatically posts to the cardholder in-process general ledger.

Example. If you receive five withdrawals totaling $150 and two deposits totaling $50, your customers are debited for the withdrawals and credited for the deposits. Then, the cardholder in-process general ledger is credited $100.


1. Manually post the institution net (debit or credit) from the SSR110 report to your cardholder in-process general ledger (#_______________).



Note: When the SSR114 report includes settled exception items, make an entry to balance the activity. Post this entry between your settlement account and the account in which the exception is pending.

2. Manually offset the institution net (debit or credit) to your SHAZAM settlement account (#_______________).

Example. If the institution net on the SSR110 report shows a debit of $750, you will debit the cardholder in-process general ledger and credit the SHAZAM settlement account.

Balanced Accounts

SHAZAM settlement account. After the above entries post, the balance goes to zero (with the exception of the prefunding amount and after the ATM offset has been made, if applicable).

Cardholder in-process general ledger. After the above entries post, this account equals zero if your processor has a 6 p.m. CT cutoff time. If your processor does not cutoff cardholder activity at 6 p.m. CT, this account carries a balance that reflects the difference between the SHAZAM settlement entry and the net of your postable transactions offset entry. Please contact your processor for assistance if you do not have a 6 p.m. cutoff time.

CAS and CAS Real TimeYou must reconcile your cardholder activity with SHAZAM settlement daily to ensure all cardholder transactions have been properly posted.

You will need a cardholder general ledger account named cardholder in-process. This account, used to make clearing entries for cardholder transactions, carries a balance that reflects the difference between the SHAZAM settlement entry (with a 6 p.m. CT cutoff) and the postable transactions offset entry (with your institution’s selected cutoff).

Entries to the Cardholder In-Process General Ledger

Posting File. This is the file of cardholder transactions that CAS institutions receive from SHAZAM each business day after their chosen cutoff time. Refer to page 8 for a list of available cutoff times.

Each CAS institution has an in-house system that uses a certain brand of software to operate. There are over 40 software vendors certified as CAS processors. When the institution receives its daily posting file, the in-house system automatically posts each cardholder transaction to the appropriate customer’s account and offsets the net of these transactions to the cardholder in-process general ledger.

For example, if the posting file includes a deposit for $500 and a withdrawal for $100, the deposit is credited to a customer’s account and the withdrawal is debited from a customer’s account. The offsetting net of these two transactions is a debit for $400, which is posted to the cardholder in-process general ledger.

Cardholder Institution Activity (SSR110) Report. The “Institution Net” figure on this report is part of the settlement entry that SHAZAM originates via ACH to an institution’s settlement account. The



institution manually posts the institution net to the cardholder in-process general ledger and offsets it to the designated SHAZAM settlement account.

For example, if the SSR110 net is a debit for $300, the institution debits its cardholder in-process general ledger $300 and credits its settlement account $300.


CAS Balancing ProceduresWhen you receive postable transactions from SHAZAM, each one automatically posts to the appropriate customer’s account and the offsetting net debit or credit automatically posts to the cardholder in-process general ledger.

Example. If you receive five withdrawals totaling $150 and two deposits totaling $50, your customers are debited for the withdrawals and credited for the deposits. Then, the cardholder in-process general ledger is credited $100.


1. Manually post the institution net (debit or credit) from the SSR110 report to your cardholder in-process general ledger. (account #: _______________)

Note: When the SSR114 report includes settled exception items, make an entry to balance the activity. Post this entry between your settlement account and the account in which the exception is pending.

2. Manually offset the institution net (debit or credit) to your SHAZAM settlement account. (account #: _______________)

Troubleshooting Balancing

Cardholder in-process account is out of balance.• Verify the amount posted from the SSR110 report was the correct amount and type (debit or credit).• Look for standard adjustments on the SSR114 report. These items should be posted to the cardholder

in-process account.• Compare the SSR110 report and the posting file report for missing transactions or double posting.• If the cardholder in-process account is the same as the SHAZAM daily settlement account:

• Verify the SSR114 settlement exception entries were posted• Verify the SSR120 entries were posted• Check for prefunding

SHAZAM daily settlement account does not equal the day’s prefunding amount.

• Check the SSR114 report for settlement exception activity.



• Verify the SSR110 and SSR120 entries were posted correctly.• Confirm that only SHAZAM entries have been posted to the account and there is no internal posting

error.

Balanced Accounts

SHAZAM settlement account. After the above entries post, the balance goes to zero (with the exception of the prefunding amount and after the ATM offset has been made, if applicable).

Cardholder in-process general ledger. After the above entries post, this account equals the net of “batch two” from today’s software report.



Balancing Worksheet: Cardholder In-Process GLDate: _______________________

*This will be your carryover for the next day. The carryover needs to be verified daily and should equal the end of day balance in your cardholder in-process account.

Note: When reconciling your cardholder activity with the SHAZAM settlement, remember that you are always reconciling one day behind. For example, to reconcile for the 14th, you must wait until you receive your posting file from the 15th. The posting file from the 15th contains the batch 2 carryover. Batch 2 will be all transactions from the SHAZAM cutoff at 6 p.m. CT on the 14th until your posting file cutoff on the 15th.

If the cardholder in-process and settlement accounts are the same, you will need to credit the prefund amount to balance to batch 2.

Debit Credit

Previous day batch 2 carryover

SSR110 institution net

Cardholder in-process account #:____________________Offset settlement account #:____________________

Posting file offset

Interfaced to cardholder in-process account #:____________________

SSR114 settlement exceptions

Totals

Batch 2 from today’s posting file*



Brella Person-to-Person (P2P) PaymentsBrella P2P transactions involving your cardholder as either the payment sender or receiver appear on your SSR110 report as described below.

Additionally, the settlement for the transactions is included in the report’s “Institution Net” amount.

The cardholder’s demand deposit account (DDA) or savings account is debited or credited in the same way as any other card transaction (ATM withdrawal, POS purchase, etc.). When your cardholder is the sender of a payment and you charge a service fee, the fee amount is added to the payment amount and one total is debited.

Brella P2P Transactions

Cardholder ActionSettlement Effect

Transaction Codes

Sender (with service charge)

Makes a payment Debit 112 (DDA withdrawal)

411 (P2P payment)

814 (Service charge)

Sender (without service charge)

Makes a payment Debit 112/411 (DDA withdrawal /P2P payment)

Receiver Receives a payment Credit 111/432(DDA deposit/P2P payment)



Handling Lost or Stolen Cards

Hot StatusOnce you put a card in a hot status SHAZAM declines any subsequent transactions when presented with an authorization request. The card may also be captured by an ATM. A hot card status may be reversed on an ATM-only card and may not be reversed on a SHAZAMChek card. You and your cardholders have multiple options for how the hot card status is done:

• SHAZAM Access Cards — Use the hot card button to immediately change the card's status. A user must have the MaintCardHotcard role to perform this task. This is the lowest cost maintenance method, $________, and is the preferred option during business hours.

• Online processor interface (if available) — Follow your vendor or processor's instructions to change the card's status on your core system and prompt it to immediately forward the hot card request to SHAZAM. This method results in the same cost as SHAZAM Access Cards above, and is also a preferred option during business hours.

• Interactive voice response (IVR) — After hours you and your cardholders may use SHAZAM's automated system by calling 800-383-8000 and following the prompts. You will need the last four digits of the cardholder's Social Security number, and either the cardholder's name as it appears on the card or the card number. SHAZAM recommends that you advertise this number on your account disclosures, brochures, website, and after-hours telephone answering system. Most issuers also choose to include the number on the back of each card. The cost for this maintenance method is $________.

• SHAZAM Client Support — When none of the methods above are an option SHAZAM's client support staff can assist your cardholders. Your cardholders may use the IVR number above and choose 0 to reach a representative. The cost for this maintenance method is $________.

Each of these maintenance methods is listed as a separate line item on your monthly billing statement.

Once SHAZAM receives the hot card maintenance we provide the PAN to Mastercard or Visa to use for stand-in authorizations. During the setup of your program you selected one or more limits Mastercard or Visa would use if needed. Mastercard and Visa handle their exception files differently:

• Mastercard Debit Cards — Mastercard keeps PANs in their exception file for 180 days. At that point if the card is not expired you might consider submitting hot card maintenance again to extend the exception file retention another 180 days. You may choose to continue this process until the card's expiration date has passed.

• Visa Debit Cards — When you submit hot card maintenance in SHAZAM Access you specify the date on which you want Visa to remove the card from their exception file. SHAZAM recommends using the card's expiration date or shortly thereafter.

You can confirm hot card maintenance, including international warning bulletin information, on the Foreign Network Hot Card (SCD010) report. It's generated daily and is available in the SETL folder. The Card Account File Maintenance (CD200-R) report will also show all daily network hot-card maintenance.



Mastercard and Visa International Warning BulletinsAs stated previously, the standard hot card status using the procedures explained above means a transaction attempt will be declined when SHAZAM receives an authorization request. Generally, all U.S. transactions must be properly authorized or the merchant risks having the transaction returned via chargeback. However, in other areas of the world some merchants may not be required to electronically request an authorization from the issuer. You may choose to report a PAN on an international warning bulletin to advise merchants not to accept the card, and to protect your right to charge a transaction back to those merchants.

The Mastercard and Visa bulletins are produced specifically for international use. Merchants may confiscate the cards listed when they are presented during a transaction. You should consider adding a card to a warning publication if:

• The card was lost or stolen outside the U.S.• The cardholder retains the card after closing the account and is likely to travel internationally.• You suspect a counterfeit card was created using valid card information and is likely to be used

internationally.• You have any reason to suspect future attempts at international fraudulent activity.

Submit the maintenance for an international bulletin, including the selection of one or more reporting regions, on the SHAZAM Access hot card screen. A user must have the MaintCardWarnPub role to perform this task. For more information about listing a PAN in the publication, refer to SHAZAM Resource > Fraud and Security > Handling Lost and Stolen Cards. Information is also available in SHAZAM Access Help > Cards > Hot Card a Lost or Stolen [Mastercard or Visa] Card.

Mastercard Electronic Warning BulletinThis bulletin provides coverage on the third calendar day for account updates received before 6 p.m. CT. Coverage for account updates received after 6 p.m. CT occur on the fourth calendar day. The fee is $_____ per PAN for each one-week reporting period per region.

Visa Card Recovery BulletinThis bulletin is a printed booklet containing those card numbers merchants should not accept for payment. The fee is $_____ per PAN for each two-week reporting period per region.

Temporary Card Block (TCB)A TCB, sometimes known as a warm status, gives you the security of knowing no transactions will be authorized on the card, and the flexibility of being able to return the card to a valid, active status. You might use the temporary card block feature in SHAZAM Access when:

• Your cardholder can't find their card and wants time to look for it.• You think there may be fraud on the account and cannot reach the cardholder to verify the activity.

You can quickly and easily block or unblock a card in SHAZAM Access Cards. A user must have the MaintCardUpdate role to perform this task. A card with a TCB status will reissue upon expiration, although the TCB status will not be removed automatically.

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You can track PANs with a temporary card block status by monitoring the weekly Temporary Card Block (FW310) report. It lists any PAN in a TCB status as of 6 p.m. CT each Wednesday and is available on Thursday morning in the Fraud folder. Use the report to determine whether to leave the TCB status as-is, remove it, or hot card the PAN.



Chargebacks and Fraud ReportingAfter the initial presentment of an ATM or purchase transaction, you may determine the transaction is invalid and wish to pursue a chargeback to return all or part of the transaction to the acquirer for remedy.

The chargeback rules and processes for signature-based purchases are different from those for PIN-based transactions at the point-of-sale (POS) or ATM. So first, you'll need to determine which type of transaction your cardholder is disputing.

The types of purchase transactions are differentiated by:

SHAZAM Elite Pass Dual-message TransactionsChargeback reason codes and rules are set by SHAZAM and govern the exchange between you, the card issuer, and the acquirer. The chargeback rules do not govern the relationship between you and your cardholder, and your regulatory obligations (for example: Regulation E) exist regardless of the result of a chargeback.

When your cardholder disputes a purchase for a reason other than fraud, SHAZAM may require the cardholder to make a good faith attempt to resolve the dispute directly with the merchant, depending on the chargeback reason. The good faith attempt must be documented in detail to supplement your chargeback request if the dispute remains unresolved.

You'll find more detailed information about cardholder disputes and the chargeback process in the Exception Item Processing Manual located in SHAZAM Resource > Chargebacks and Adjustments.

Mastercard and Visa Dual-message TransactionsChargeback reason codes and rules are set by Mastercard and Visa and govern the exchange between you, the card issuer, and the acquirer. The chargeback rules do not govern the relationship between you and your cardholder, and your regulatory obligations (for example: Regulation E) exist regardless of the result of a chargeback.

When your cardholder disputes a purchase for a reason other than fraud, Mastercard and Visa may require him or her to make a good faith attempt to resolve the dispute directly with the merchant, depending on the

Type of Transaction

What Type will I see in the transactions list?

What is the Purch transaction detail description?

SHAZAM Elite Pass dual message

Two transactions: • Auth at the time of purchase• Purch when the transaction settles

Completion SHAZAM Dual Message purchase from checking.

Mastercard and Visa dual message

Two transactions: • Auth at the time of purchase• Purch when the transaction settles

Completion SHAZAM Dual Message purchase from checking.

PIN-based Only a Purch transaction Purchase from checking.

https://www.shazam.net/shz_resource/siteFiles/chgbk.html

https://www.shazam.net/shz_resource/siteFiles/techResFiles/cbExcItemProc/ExcItemProc.pdf




chargeback reason. The good faith attempt must be documented in detail to supplement your chargeback request if the dispute remains unresolved.

You'll find more detailed information about cardholder disputes and the chargeback process in the Exception Item Processing Manual located in SHAZAM Resource > Chargebacks and Adjustments.

Determine Your RightsNot all transactions meet the criteria of a valid chargeback. In general, chargeback reasons are either fraud-related or non-fraud-related, and the majority of chargeback requests SHAZAM receives are fraud-related.

Your chargeback rights pertaining to card-present transactions depend in part on whether the transaction was performed using a magnetic-stripe-only card or an EMV chip card. Properly authorized card-present transactions (a card was swiped or imprinted and an electronic authorization was obtained) performed using a magnetic-stripe-only card do not qualify for a fraud-related chargeback. However, if you issue EMV chip cards, and card-present counterfeit fraud occurs as a result of a merchant terminal not being chip enabled, then chargeback rights exist. Visa's Easy Payment Service and Mastercard's Quick Payments Service (QPS) fall into the same category as card-present transactions even though a cardholder signature is not needed.

Chargeback rights vary with fraud-related disputes for card-not-present transactions, and factors other than a card swipe or imprint are considered when determining rights. For example, the merchant's use of Mastercard Identity Check or Visa Secure as authentication methods will affect your ability to recover funds.

SHAZAM's chargeback fee is assessed for all items submitted, so you'll want to review the transaction data to help you make an informed decision about which ones to request. Use the Can I File a Chargeback? tool to help you determine which transactions to charge back.

Reasons to request a non-fraud-related chargeback include Canceled Recurring Transaction, Merchandise Not Received, Services Not Provided, and more. View the Customer Dispute Request form for additional reasons. Chargeback rights for these reasons are determined through the steps taken by the merchant and cardholder during the purchase and subsequent attempts at resolution, and not necessarily by transaction field contents or indicators.

Additionally, you should consider whether you want to submit chargebacks for relatively small transaction amounts. For example, many issuers choose a minimum transaction value of between $25 and $50, and do not request chargebacks for those items regardless of what rights exist.

Initiate a Chargeback in SHAZAM AccessOnce you've determined that chargeback rights exist, and that the value is sufficient to pursue a chargeback, initiate the request in SHAZAM Access > Transactions as described below. Detailed, step-by-step instructions are available in SHAZAM Access Help.

1. Search for the purchase transaction and view the detail.

2. Scroll to the Exception Information section at the bottom of the Transaction Detail screen.

3. Complete the appropriate Exception Information fields.


https://www.shazam.net/shz_resource/siteFiles/quickRef.html

https://www.shazam.net/shz_resource/siteFiles/chgbk.html



https://www.shazam.net/shz_resource/siteFiles/quickRef.html

https://www.shazam.net/shz_resource/siteFiles/techResFiles/forms/513_Customer_Dispute_Request_Form.pdf




4. Click Submit Exception and complete the fields within the Exception Item Request Form based on your chargeback situation.

Note: Visa and SHAZAM require you to enter the hot card date if the chargeback is a result of fraud.

5. Attach supporting documentation files as follows:

Note: In lieu of the Customer Dispute Request form, a cardholder may sign a detailed letter which describes the dispute reason and any steps taken to resolve directly with the merchant. The letter must also include their 16-digit primary account number (PAN), the merchant's name, and the transaction date and amount. A secure email is also acceptable if it identifies the cardholder as the sender of the message.

6. Submit the exception.

TimeframesThe amount of time SHAZAM, Mastercard, and Visa allow for chargeback submission varies by reason code, and falls between 75 and 120 calendar days from the settlement date of the purchase. Generally, chargebacks resulting from disputes by the cardholder must be submitted within 120 calendar days. Examples include fraud-related disputes and those resulting from dissatisfaction with a merchant's product or service. Chargebacks resulting from issuer exceptions generally have a shorter time frame. An example would be a transaction received for a PAN you didn't issue and for which no authorization was obtained.

SHAZAM has established its own lead times to ensure items are processed in a timely manner and your chargeback rights are intact. Review the tables for the Mastercard and Visa lead times in the Processing Exceptions for Dual Message Transactions section of the Exception Item Processing Manual for details. For SHAZAM Elite Pass transactions, see the SHAZAM Elite Pass Dual-Message Exception Item Processing section of the Exception Item Processing Manual. Contact the chargeback department directly at 800-537-5427 (options 2, 1) if you submit a chargeback request within ten days of the end of one of our listed time frames.

Situation SHAZAM Elite Pass Visa Mastercard

Fraud-related, U.S. region

None; issuer checks certification box


Customer Dispute Request form

Fraud-related None; issuer checks certification box


Customer Dispute Request form

Non-fraud-related, cardholder initiated

Customer Dispute Request form, including documentation of good-faith attempt, if applicable



Non-fraud-related, issuer initiated

None None None























Monitor the ProcessAfter SHAZAM receives the chargeback request, a specialist reviews it and determines the appropriate action for resolution. There are five possible actions:

Action Description Guidelines

Chargeback The transaction is charged back to the merchant with any applicable supporting documentation.

Your credit appears on the Settlement Exception Activity (SSR114) report as a standard chargeback. Review the status of the chargeback in the Exceptions section of the SHAZAM Access Transaction Detail screen. The information is also available in the Chargeback Activity (JCD020) report.SHAZAM and Visa regulations allow merchants up to 30 calendar days to represent the chargeback. Mastercard allows up to 45 calendar days.A representment appears on the SSR114 report as a standard representment, and is accompanied by one of the following by email within 20 calendar days:• Letter of explanation• Urgent chargeback reply (letter requesting more

information)• Letter advising you of the option to pursue a

second chargeback (SHAZAM Elite Pass and Mastercard only; requires issuer certification)

• Credit for pre-arbitration on the SSR114 report (Visa only).

• If you don't receive one of these items, review the chargeback status on the transaction detail in SHAZAM Access

Note: Regulation E requires you to provide provisional credit to a cardholder while a dispute is being resolved. Visa requires its issuers to do so within five business days, whereas SHAZAM and Mastercard have no provisional credit rule. Chargeback credit is not necessarily final and a representment may occur.

Copy Request A copy of the transaction receipt is ordered if it is required to support the chargeback or compliance process, or is required by local law.

SHAZAM, Visa and Mastercard regulations allow the merchant up to 30 calendar days to supply the receipt.Use the Chargeback Activity Report (JCD020) report to monitor copy requests.

Pre-compliance rights

A merchant violates a SHAZAM, Visa or Mastercard rule and no chargeback rights are available.

A claim against the merchant for non-compliance may be an option to recover losses. Refer to the Exception Item Processing Manual for more information.

Letter of no recourse

SHAZAM is unable to proceed with chargeback or compliance rights.

SHAZAM will send you a letter of explanation via secure email.





Check Exception StatusAt any point after you submit the exception you can check the status by viewing the transaction detail screen. Some example statuses include:

• Submitted — Exception Item Request• Pending Chargeback• No Recourse Notification

Refer to Appendix E: Exception Item Status Messages for Signature-based Transactions in the Exception Item Processing Manual for a complete list of possible statuses.

Single Message TransactionsAlthough your cardholder may claim a single message transaction was unauthorized, there are no chargeback rights available. Follow your institution's dispute resolution procedures to resolve the cardholder's fraud claim.

Chargeback rights are available for non-fraud-related reasons, including situations in which the cardholder is charged an incorrect amount, or is charged without having received the intended cash or merchandise. Some examples include:

• Your cardholder requests $50 from an ATM and their account is debited but no money is dispensed.• Your cardholder makes one single message POS purchase at a merchant and their account is debited

twice.

Initiate in SHAZAM AccessThe exception fields needed to submit a PIN-based chargeback will be available only when the transaction is not-on-us. You'll initiate the request in SHAZAM Access > Transactions as described below. Detailed, step-by-step instructions are available in SHAZAM Access Help.

1. Search for the ATM or purchase transaction and view the detail.

2. Scroll to the bottom of the screen and complete the fields. To allow the acquirer to reach you easily, please enter your name and phone number in the Comments field if space allows.

3. Submit the exception.

TimeframesPrior to initiating a PIN-based chargeback, you must allow the acquirer five calendar days to recognize the need for an adjustment and submit a correction. The SHAZAM Access Transactions chargeback fields described above are not available until then. Generally, you may submit a chargeback between six and 180

Letter requesting more information

Required information was not provided, or additional information is needed.

SHAZAM will send you a letter of explanation via secure email.

Action Description Guidelines






calendar days from the settlement date of the transaction. Refer to the Exception Item Processing Manual for more details about the specific time frame for each situation.

The chargeback time frames in SHAZAM's documentation govern the exception process between you, the issuer, and the acquirer/merchant. They are independent of your obligation to your cardholder under Regulation E and other legal compliance requirements.

Reconciliation and ReportsSettlement for all PIN-based exceptions will appear on your SSR114 report and be included in the totals as a SHAZAM Access-Settled Adjustment, SHAZAM Access-Settled Chargeback, or SHAZAM Access-Settled Representment. To balance the exception's settlement, make an entry between your SHAZAM daily settlement account and the account in which the exception item is pending.

Exceptions between SHAZAM participants settle as quickly as the day after you initiate the exception in SHAZAM Access. Exceptions between a SHAZAM issuer and a foreign network acquirer may settle up to 45 days from the chargeback request. Acquirers may take up to 45 days to submit their terminal's journal tape showing the disputed transaction is valid. If this happens, the SHAZAM chargeback department will provide you with a copy via secure email to support the acquirer's representment.

Report FraudThe operating rules of SHAZAM, Mastercard, and Visa require all transactions for which fraud is confirmed be reported. This requirement is independent of any possible outcome of the chargeback process and your ability to recover funds. If you submit a fraud-related chargeback for a dual message transaction, the fraud reporting is integrated with the chargeback request. However, fraud reporting is a separate task for all single messagetransactions, and for the dual message ones you do not submit as chargebacks.

Handle the fraud reporting task as follows:

SituationDid you submit a chargeback?

Report the fraud by...

Dual message transaction Yes Selecting Request a Chargeback with Fraud Reporting and submitting the exception.

No Selecting Report Fraud Only and submitting the exception.

Single message transaction Yes or no Using the Reporting for PIN-based Fraud or Card Not Received (#527) form.

Cardholder reports non-receipt of card

NA Using the Reporting for PIN-based Fraud or Card Not Received (#527) form.

https://www.shazam.net/shz_resource/siteFiles/techResFiles/forms/527pinBasedFraudForm.pdf













Closing Accounts/Deleting Card DataWhen a cardholder closes their DDA and savings accounts, or after a card has been set to a hot status, there are steps you should take to keep the card data in SHAZAM's records current.

Account and Card ClosedIf the cardholder is closing their account, and you have no reason to suspect any fraudulent transactions will be attempted, you may choose not to set the card to a hot status, and to delete the card data SHAZAM has on file. SHAZAM recommends the following steps:

1. Collect all cards from the cardholder, if possible, to ensure no one will attempt to use them for future transactions.

2. Review the SHAZAM Access transaction history and the outstanding authorizations area of the cards tab with the cardholder. Retain enough funds from the cardholder to cover transactions that have been authorized but not posted.

3. Ask the cardholder if the card was used to make any recurring payments. If so, instruct him or her to contact the biller with new payment information.

4. Obtain future contact information from the cardholder so you can resolve any unexpected situations easily. Generally you should try to collect any properly authorized transactions directly from the cardholder before following any other course of action.

5. Use the Delete Options button in SHAZAM Access Cards or submit the maintenance in your batch or online files, if applicable, as follows:

On-screen Options

Conditions Applies to

Delete PAN Delete the PAN if you submit card orders to your vendor through SHAZAM. You should also use this option if you maintain plastics information in our database even though you don't order cards through SHAZAM. Within the Plastics Information section of the screen the card and cardholder will reflect a deleted status and the card will not reissue at expiration. The PAN would still be included in the results when you do a search of any applicable plastics-related data.

All issuers who maintain plastics records with SHAZAM.

Delete CAF Delete the CAF if SHAZAM maintains the information to use with either normal or stand-in authorization transactions. This removes the link between the PAN and the daily withdrawal limits, transaction types allowed, and accounts to which the PAN is attached. Within the CAF Information section of the screen the limits, accounts and other information will be removed.

• ACHCAS• CAS• CAS Real Time• Online real-time using

positive file STIP• VIP CAF records



Delete Balance Account (if applicable)

Delete the balance account if you provide SHAZAM with your cardholders' account balances to use when authorizing transactions, even if only provided for stand-in purposes. This removes the link between the CAF balance information for the account.

• ACHCAS if providing a balance file

• CAS• CAS Real Time if

providing balances for STIP

• SBB if providing balances for STIP

On-screen Options

Conditions Applies to



Plastics and PINs

Card OrdersCard orders and plastics maintenance may be entered directly in SHAZAM Access Cards, or delivered to SHAZAM in a bulk file pulled from your core or processor system daily. During the setup of your card program you opted to have SHAZAM submit your card orders to your vendor either daily or weekly. If weekly, you also designated the specific day of the week on which the order file would cut off.

The SHAZAM Access fields for the cardholder's embossed name will accept the following number of characters:

• Mastercard consumer cards – 21• Mastercard business cards – 26• Mastercard business cards (EMV) – 21• Visa consumer cards – 26• Visa business cards – 26• Visa business and consumer cards (EMV) – 19

If your cardholder's name exceeds the number of characters allowed, we suggest using the complete last name, and initials for the first and middle names. The special characters allowed include: dash (-), ampersand (&), comma (,), period (.), forward slash (/), and apostrophe (').

SHAZAM Access does not support non-U.S. addresses. Cards sent internationally should be mailed to you, and then forwarded to the cardholder. Military addresses, Air/Army Post Office (APO) or Fleet Post Office (FPO), are supported.

All plastics maintenance is reflected on the File Maintenance Log for Plastics (SSR080) report. It's produced daily if maintenance is done, and is available in the SETL folder for eight days. A 00 in the reject code, response code, and plastic code fields means all maintenance was accepted and processed. Use the File Maintenance Log (SSR080) Report Codes reference in SHAZAM Access > SHAZAM Resource > Codes to determine the reason for any code other than 00.

If SHAZAM transmits orders to your card vendor weekly, use the Rush check box on the Update/Order screen to have SHAZAM forward the order after cutoff (6 p.m. CT) the same day. An additional batch processing fee may result when orders are submitted more than once per week. Refer to your vendor's fee schedule for batch processing costs. The Rush check box has no timing effect if SHAZAM already submits your orders daily, and using the rush indicator in SHAZAM Access does not cause your vendor to rush the card's production. Contact your vendor for rush production and mailing requests.

Card Expiration and ReissueYour cards will automatically reissue prior to expiration. The Plastics Reissuance (CM250) report is produced on the 7th of each month, is available on the 8th, and remains in the PLASTICS folder for 21 days. It shows the plastics data of those cards about to expire, and enables you to review the data and make changes before the card is reissued.

The timing of the report depends on how far in advance you've chosen to have cards reissue:

https://www.shazam.net/shz_resource/siteFiles/techResFiles/codes/fileMaintLogSsr080RptCodes.pdf



• Month-of-expiration — Your CM250 report is produced on the 7th of the month immediately prior to expiration. For example, the report dated January 7 will contain cards due to expire in February of

the same year. Maintenance to the data for cards listed on the report must be completed by the 5th of the expiration month (February in our example).

• Month-in-advance — Your CM250 report is produced on the 7th, two months prior to expiration. For example, the report dated January 7 will contain cards due to expire in March of the same year.

Maintenance to the data for cards listed on the report must be completed by the 5th of the month prior to expiration (February in our example).

Both reissue timing options allow you the same number of days to perform maintenance tasks on expiring cards, however, the month-in-advance option gets the card in your cardholder's possession well in advance of their current card's expiration date.

Cards with no plastics data, or those in a hot or deleted status will not reissue. Cards in a temporary card block status will reissue.

SHAZAM Easy PINSHAZAM Easy PIN gives cardholders the ability to do a real-time PIN change via IVR. SHAZAM Easy PIN provides you with three flexible options for the information you want your cardholder to enter into the IVR system to ensure it is them making the change. SHAZAM Easy PIN works with all SHAZAM card products for which plastics information is on file and SHAZAM verifies PINs.

• PAN with no Reference Number — The cardholder calls from a number on file and enters plastics information to authenticate before changing the PIN. The cardholder may also activate the card during the same IVR call.

• Reference number only — The cardholder needs just the reference number and may call the IVR before having the card in hand.

• Reference number and PAN — For added security, the cardholder needs the PAN along with the reference number, and the plastics information must be on file before the PIN change via IVR.

SHAZAM Easy PIN maintenance, including your cardholders’ IVR results, is logged on the PIN Maintenance (CD240) report. It’s produced daily when Easy PIN activity occurs, and is available in the SETL folder for eight days. Detailed operations information and step-by-step instructions can be found in the SHAZAM Easy PIN Reference Guide.

SHAZAM myPic Studio®

SHAZAM myPic Studio allows your cardholders to create a personalized card featuring any photo they choose. You can offer them a gallery of images selected by you and SHAZAM, and permit them to upload a digital image from their personal photo library. Any card program for which SHAZAM maintains plastics data is eligible to enroll in myPic Studio. Contact your SHAZAM Regional Director for more information.

Note: SHAZAM myPic Studio is not available for dual interface (contact and contactless) cards at this time.

https://www.shazam.net/shz_resource/siteFiles/techResFiles/cdEasyPin/easyPinRefGuide.pdf

https://www.shazam.net/shz_resource/siteFiles/techResFiles/cdEasyPin/easyPinRefGuide.pdf



Business Debit CardsSHAZAM provides support for cards issued on a BIN specifically designated as a business debit product, and separate from your consumer BIN(s). Business debit cards include one line of embossing for the cardholder name, and one for the business name. Mastercard and Visa offer business debit cardholders some benefits not available with consumer cards including emergency card replacement, travel assistance, purchase protection, and more.

The SHAZAM products and services available with consumer cards are also available with business debit. SHAZAM Easy PIN, SHAZAM myPic Studio, card activation and SHAZAM Fraud Management Services are all examples. Additionally, operations procedures including settlement, reporting, card orders, and chargeback processing are the same for both consumer and business debit programs. The Mastercard rules regarding zero liability, and the Visa rules for both zero liability and provisional credit, are also the same.



Outstanding Authorizations (OA)Outstanding authorizations are dual message transactions that have been authorized by a merchant, but not yet paired with a settlement advice. The SHAZAM Access Transaction Detail screen identifies them as a SHAZAMChek authorization with the description authorization from checking.

If you maintain balances for SHAZAM to use for authorization, we include the outstanding dollars when calculating a cardholder's available balance. You may also choose to have SHAZAM use the OA dollars to calculate a cardholder's withdrawal limits beyond the calendar date of the authorization.

If your authorization route utilizes an online processor with a real-time connection to SHAZAM, we track a cardholder's OAs and include them with the authorization request forwarded to your processor. They decide how to use the information before proceeding with additional transactions.

Retention PeriodsWhile an authorization is still outstanding or pending, you can view, deactivate, and reactivate it. Deactivating a current authorization does not delete it or cause the settlement advice to not post. Deactivating simply tells SHAZAM not to use the authorization to calculate the cardholder's available balance. Step-by-step instructions for how to deactivate an OA can be found in SHAZAM Access > Help > Cards.

A settlement advice may differ from an authorization amount for many valid reasons. For example, a restaurant will often authorize for a higher amount (ticket plus 20%), then settle for the amount the cardholder totaled when they completed and signed the ticket. Also, using the credit option on a pay-at-the pump terminal causes a $1 authorization before any fuel is dispensed, although the actual fuel purchase amount will post to the cardholder's account.

When an authorization reaches the end of its retention period, but no matching settlement advice has posted, it appears on the Expired Authorizations (SET060) report. You'll find the report in the SETL folder of SHAZAM Access > Files. An expired authorization is generally still valid and may post to the cardholder's account at a later time.

My organization's outstanding authorization retention is:

__________ days for hotel/motel/car rental transactions

__________ days for all other transactions



Risk ManagementSHAZAM offers you a wide range of solutions to detect, prevent and manage your fraud risk. Some are optional products to which you subscribe, and others are services available to all SHAZAM issuers.

SHAZAM Fraud Management ServicesSHAZAM’s neural network technology reduces fraud losses by examining individual debit card transactions to learn cardholder spending habits and patterns. Each transaction is analyzed real-time and matched against a series of rules SHAZAM maintains to detect and prevent fraud.

When a card’s transactions match a rule the system will either decline it and create a suspicious activity case, or only create a suspicious activity case. Then, an automated system contacts your cardholder by text or by phone to confirm whether the activity is legitimate or fraudulent. You’ll also receive case alert notifications via email.

The SHAZAM Case Management Daily Summary Report (FD150-R) report provides a daily summary of cases closed on the report date. You’ll find it in the Fraud folder of SHAZAM Access > Files where it’s available for eight days.

More details about SHAZAM Fraud Management Services are available in the SHAZAM Fraud Management Services User Guide. SHAZAM provides fraud management training to all new subscribers. To get more information and to subscribe, contact your SHAZAM Regional Director.

SHAZAM Card BlockSHAZAM Card Block helps you quickly and easily respond to fraud trends, limit fraud losses, and provides an extra layer of protection. Using certain transaction data, either singly or in combinations (for example, country code, merchant category code, state code, whole dollar amount, and many more), you can block transactions from being authorized on one primary account number (PAN) or for an entire bank identification number (BIN). One or more PANs may also be excluded from the block criteria set for the BIN.

BIN-level blocks and PAN exceptions are maintained in SHAZAM Access > BINs using the Card Block Settings button. A user must have the Card Block Update role to perform these tasks. PAN-level blocks are maintained in SHAZAM Access > Cards, and require additional card maintenance roles.

Transactions declined due to a SHAZAM Card Block may be viewed in SHAZAM Access > Transactions. They are also included on the Cardholder Institution Activity (SSR110) report, and more details about the decline reason are listed on the Cardholder Exception Journal (SSR100) report. You’ll find both reports in the SETL folder. More information is also available in the SHAZAM Card Block Reference Guide, which you’ll find in SHAZAM Access > SHAZAM Resource > Cards. Step-by-step instructions for maintaining blocks is available in SHAZAM Access > Help > Cards > SHAZAM Card Block.

Compromised Card ReportingWhen SHAZAM identifies or is notified of a potential card compromise, we act quickly to distribute the list of affected PANs to you. The Compromised Card Report is delivered in SHAZAM Access > Files >

https://www.shazam.net/shz_resource/siteFiles/techResFiles/fsFalconGuide/falconGuide.pdf






FRAUD folder and an alert memo is emailed to your designated contact(s). The report contains a description about the apparent compromise, as well as a list of affected PANs. A second file, in CSV format, includes more detailed cardholder information, such as name, address, and telephone number. It will help you more easily manage card reissues and communicate with your cardholders.

More information about handling card compromises is available in SHAZAM Access > Fraud Watch > Compromised Card Information.

Card ActivationTo reduce the risk of unauthorized use, cards mailed by your card vendor will require activation before use. Activation can be accomplished in several ways.

• Interactive voice response (IVR) - The following options allow your cardholder to either activate their card or activate their card and change their PIN. The results of all IVR activation attempts are reported on the IVR Card Activation (CD242) report. It’s available each day there is activity to report and you’ll find it in the SETL folder

• Card Activation Only: To activate a card using SHAZAM’s IVR system, a cardholder can call 866-590-4793. The cardholder will need his or her debit card number, card expiration date and the last four digits of his or her Social Security number.

• Card Activation and PIN Selection: To activate a card and change their PIN using SHAZAM’s IVR system, a cardholder can call 800-717-4923. The cardholder will need his or her debit cardnumber, the three-digit security code from the back of the card and the last four digits of his or her Social Security number.

• PIN-based transaction — Any transaction your cardholder performs and for which the PIN is authenticated will activate the card. That includes balance inquiries, withdrawals and PIN-based POS purchases.

• SHAZAM Access > Cards — When necessary, you can manually activate a card using the ‘Card Activation’ button.

You may choose to have your card vendor include activation instructions on your card mailers, on an insert with the card, or on a label stuck to the card. Work with your SHAZAM CIS representative and your vendor to set up card activation instructions.

Transactions attempted on an inactive card are declined and, like all transaction activity, can be viewed in SHAZAM Access > Transactions. The Non-Activated Card (CM260) report lists inactive cards, both new and reissued, is produced on the 15th of each month, and is available for eight days. You’ll find it in the PLASTICS folder. Use the report to detect cards that were potentially lost in the mail, or for which the cardholder has no use and should be closed.

BrellaWith the free Brella mobile alerting app your cardholders can register their cards and receive email alerts when:

• A suspected fraud case is created• A transaction exceeds an amount they establish• A card-not-present transaction is performed• An international transaction is performed



Cardholder authentication is required to register a card, and the results of the authentication are reported on the SHAZAM Risk Management (FD020) report. It’s located in the FRAUD folder of SHAZAM Access > Files and is available for eight days.

The application also provides your cardholders with balance information for the account(s) tied to the card. A person-to-person (P2P) payment option is available to your cardholders if you subscribe to the optional Brella P2P service. Your cardholders can download the Brella app to iPhone and Android devices for free from the Apple App Store or Google Play Store.

More information is also available in the Brella Reference Guide, which you’ll find in SHAZAM Access > SHAZAM Resource > Mobile.

Activity Threshold ReportingWhile completing the paperwork to set up your card program you established threshold values that define high volume or excessive types of card activity. Some threshold examples include transaction counts or cumulative dollar values, high-risk merchant activity, international activity, and certain types of declined transactions. When your cardholder exceeds any of these thresholds within one business day (6 p.m.–6 p.m. CT), a SHAZAM Security Fraud Activity (SCD020) report is generated. This report acts as a warning that a card is being used in a manner you’ve defined as excessive, and may prompt you to investigate for potential fraud.

The chosen thresholds are used for reporting purposes only, and do not affect transaction authorizations. The threshold values can be customized at any time by the Security Threshold Customization Form found in SHAZAM Access > SHAZAM Resource > Forms. Any type of transaction activity, including withdrawals, purchases, transfers, deposits, and more, contribute to the accumulation of activity reported. You’ll find the SCD020 in the SETL folder of SHAZAM Access > Files where it’s available for eight days.

3D Secure3D Secure is a technology that helps protect card accounts against unauthorized e-commerce transactions.

Mastercard and Visa each have their own 3D Secure program: Mastercard Identity Check and Visa Secure. These programs can:

• Improve the security of payment transactions in the electronic commerce environment• Increase merchant confidence in e-commerce purchases• Reduce disputes and fraudulent activity related to the use of Mastercard and Visa payment cards

For more information on these programs, see the 3D Secure Reference Guide.

https://www.shazam.net/shz_resource/siteFiles/techResFiles/cdBrellaRefGuide/caBrellaRefGuide.pdf

https://www.shazam.net/shz_resource/siteFiles/techResFiles/forms/063_Security_Threshold_Customization_Form.pdf






https://www.shazam.net/shz_resource/siteFiles/techResFiles/fs3dSecure/3dSecure.pdf



Information for Mastercard Issuers

CVC/CVC2A three-digit security code, called a card validation code (CVC), is encoded in the magnetic stripe of all SHAZAMChek Debit Mastercard cards. The value is mathematically derived and is intended to help prevent counterfeiting. SHAZAM checks the CVC during an authorization request. If a card does not have a valid CVC, SHAZAM declines the transaction.

A different three-digit security code is indent-printed on the card’s signature panel. This three-digit code is called a CVC2, and is intended to help make card-not-present transactions more secure. Your cardholders will often be asked for this number when making online, mail and telephone purchases.

Mismatches for both CVC and CVC2 can be found on the SCD020 report in the category CVC/CVV MISMATCHES. Transactions declined because of an invalid CVC or CVC2 are also reported on the SSR110 and SSR100, and may be viewed in SHAZAM Access > Transactions.

Zero Liability and Provisional CreditMastercard rules limit a cardholder’s liability to $0 as long as they have exercised reasonable care in safeguarding the card from risk of loss or theft, and, upon becoming aware, promptly reports the loss or theft to you. The liability limit applies to all transactions routed to SHAZAM from Mastercard, including those using both consumer and business debit BINs. See the Acquirer Information section of the Transaction Detail section in SHAZAM Access to determine the acquiring network brand for applicability of this rule.

Mastercard rules do not include any provisional credit requirements and you should follow Regulation E compliance when handling your consumer’s disputes.

Information for Visa Issuers

CVV/CVV2A three-digit security code, called a card verification value (CVV), is encoded in the magnetic stripe of all SHAZAMChek Visa cards. The value is mathematically derived and is intended to help prevent counterfeiting. SHAZAM checks the CVV during an authorization request. If a card does not have a valid CVV, SHAZAM declines the transaction.

A different three-digit security code is indent-printed on the card’s signature panel. This three-digit code is called a CVV2, and is intended to help make card-not-present transactions more secure. Your cardholders will often be asked for this number when making online, mail and telephone purchases.

Mismatches for both CVV and CVV2 can be found on the SCD020 report in the category CVC/CVV MISMATCHES. Transactions declined because of an invalid CVV or CVV2 are also reported on the SSR110 and SSR100, and may be viewed in SHAZAM Access > Transactions.

http://www.volenroll.com



Zero Liability and Provisional CreditVisa rules limit a cardholder’s liability to $0 if fraudulent transactions are performed. The liability limit applies to all transactions routed to SHAZAM from Mastercard, including those using consumer and business debit BINs. See the Acquirer Information section of the Transaction Detail section in SHAZAM Access to determine the acquiring network brand for applicability of this rule. The rules also dictate a five-business-day requirement for provisional credit when handling your cardholder’s Visa disputes only when a claim is unauthorized.

Preauthorized Payment Cancellation Service (PPCS)PPCS is a Visa service that allows you to put stop payments on your cardholders’ preauthorized recurring and installment payments. Use this service to inform acquirers and their merchants, via an authorization response, that a cardholder has requested a stop payment for either one specific payment, or all subsequent payments.

Within SHAZAM Access > Cards, PPCS allows for the following stop payment options:

• One-Time Stop Payment Order• Revocation of an Authorization Order• Revocation of All Authorization Orders

All SHAZAM issuers who offer Visa-branded cards are automatically enrolled in PPCS. Refer to SHAZAM Access > Help > Preauthorized Payment Cancellation Service for information on adding, changing, and deleting Stop/Revocation Orders. For complete information about this service, refer to the Preauthorized Payment Cancellation Service Reference Guide.

PPCS also generates specific Visa reports to help you track and audit preauthorized payment cancellations. These reports are available through Visa Online, which is open to any Visa issuer. To enroll in Visa Online, go to www.volenroll.com and complete the enrollment form.

https://www.shazam.net/shz_resource/siteFiles/techResFiles/cdPpcs/ppcsGuide.pdf



Monthly Reports and BillingOn or about the fourth calendar day of each month, monthly billing reports are available for each financial institution online via SHAZAM Access > Files for 65 days. On the sixth business day of each month, the institution’s billing account is debited or credited for each bill via ACH.

Following are descriptions of the monthly reports your institution may receive, depending on the products and services your institution supports. For examples of these reports, refer to SHAZAM Resource > Reports and Files.

SHAZAM Switch Summary Report (IM350). A one-page summary of the SHAZAM Switch Detail Report that includes a total dollar amount (debit or credit) for each billing category and a cumulative total of all categories.

SHAZAM Switch Detail Report (IM351). A detailed report of all expense and revenue items incurred during a particular month. The expense and revenue items are separated by category, and a cumulative total is provided for each category. Categories included on the report depend on the products and services your institution supports.

SHAZAM Volume Report (BIL165-5 Visa). SHAZAMChek issuers issuing Visa cards receive this report showing SHAZAMChek transaction statistics.

SHAZAM Volume Report (BIL165-6 Mastercard). SHAZAMChek issuers issuing Debit Mastercard cards receive this report showing SHAZAMChek transaction statistics.

https://www.shazam.net/shz_resource/siteFiles/reports.html




Documents

SHAZAM Card Products Training Guide€¦ · SHAZAM can compile your cardholders' completed transactions into a daily posting file you download and interface to your core. This file