Operating Instructions

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Merchant Operating Instructions: Recurring Transactions

Recurring transactions are a convenient way for you to collect regular payments, such as subscriptions or instalments, from customers’ cards. To avoid any disputes, it’s very important to ensure that you carry out your customers’ instructions properly and make it easy for them to get in touch to change or cancel payments.

• The basics
• Obtaining written authority
• Keeping records
• Recurring transaction options
• Cancellation
• Important Information for E-Commerce Merchants

• The basics 
• To set up a recurring transaction, you must:
  
  • Have signed a supplementary agreement with us in order to take recurring transactions.
  • Use the Merchant Number from this agreement, not your normal Merchant Number.
  • Have your cardholder’s written authority to take payments and their understanding the authority will remain in force until such time as they cancel it in writing.
  • Check the card is one of these: MasterCard, Visa Credit, Visa Debit, Visa Electron, JCB, Debit MasterCard.
  • Recurring transactions cannot be made on UK-issued Maestro cards.
  • Obtain authorisation for the first payment in the recurring transaction string using a secure method:
    
    • Chip and PIN for card present transactions, or
    • Card Security Code (CSC) for Mail Order Telephone Order (MOTO) transactions
  • Never process a transaction that is declined.
  • Supply a telephone contact number that will appear on the cardholder’s statement (and let us know if this number changes).

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• Obtaining written authority 
• You must have a written authority form signed by your customer allowing you to take payments from their card account. This form must show the cardholder’s:
  
  • Name
  • Full address
  • Postcode
  • Telephone number
  • Visa/MasterCard account number
  • Card expiry date
  • Agreed payment pattern (Find out more in Recurring transaction options below.)
  • Authority and understanding the authority will remain in force until such time as it is cancelled in writing
    
    
  Never ask for a customer’s PIN nor store your cardholder’s Card Security Code (CSC). The CSC is required for the first transaction but is not required for subsequent transactions.
   
  See an example of a written authority form.
  
  
  • The Data Protection Act 1998: Please remember that if you are collecting personal data such as the above, you need to register as a data controller. Your failure to do this and any subsequent action that may be taken against you will not be the responsibility of Streamline.

• Keeping records 
• • Terminal receipts, paper vouchers and other transaction records are high-security items and access to them should be restricted. Keep your copies of all transaction details in a secure fireproof place for at least 18 months in case there is a query later. If you are not able to produce records when asked to, there may be a chargeback. Do not alter transaction records in any way. If there is a dispute, the cardholder’s copy will normally be taken as correct. After 18 months, make sure that you dispose of all transaction records securely, in line with your Contract.

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• Recurring transaction options 
• You have two options for collecting payments:
  
  Option 1 – A fixed amount on a fixed day: no notice needed
  • The payment period could be weekly, monthly, three-monthly, six-monthly or yearly.
  • The cardholder should agree this on the written authority form.
  • When you have this authority, you don’t need to let the customer know when you will be taking payments, unless:
    • The amount and/or dates change after the initial agreement – then you must write to the cardholder giving 14 days notice before the first new payment.
    • The payment period is more than a year – then you must write to the cardholder giving 14 days notice before each payment is due.
      
      
  Option 2 – Variable amounts or days: giving notice
  
  • If the amount to be paid and/or the payment dates are variable, this should be stated on the written authority form.
  • You must write to the cardholder giving 14 days notice before collecting each payment, telling them the amount due and the date on which the money will be collected.
  • When you have written to let the cardholder know that a payment is due, or about a change in dates/amounts, there is no need for them to respond.

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• Cancellation 
• It’s important to understand that a cardholder may cancel their authority to debit their card account at any time.
  
  You must act on their instructions and collect no further payments. If any payment is returned unpaid – for example, if the account has been closed – you must contact the cardholder and ask them to pay in another way. Never re-debit the card as this may lead to chargebacks and ultimately suspension of your Streamline facility.

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• Important information for eCommerce merchants  
• If you offer recurring transactions for eCommerce sales, you must:
  
  • Notify cardholders clearly at the outset that subsequent payments will be taken from their account.
  • Offer an online cancellation facility.
  • State clearly if you are offering a fee-free period and give the cardholder at least seven days notice of the expiry of any fee-free period.
    
    

  Example – written authority form
  
  

  Visa or MasterCard Recurring Transaction authority   Please complete parts 1 to 7 to  authorise us to claim payments directly  from your Visa or MasterCard Account.   To: Merchant & Co. Ltd   Merchant Reference			I understand that Merchant & Co. Ltd will  advise me of the amount to be paid and  the dates on which payment is due and  that Merchant & Co. Ltd may only change  these after giving me prior notice.
  	1.       Name of Cardholder   2.       Full Address   3.       Postcode   4.       Telephone Number   5.       Visa/MasterCard account number   6.       Expiry Date   7.       I authorise you to charge my  MasterCard/Visa/Visa Debit* an  unspecified amount in respect of ________________** as and when  they become due.		I UNDERSTAND THAT THIS AUTHORITY IN FAVOUR OF MERCHANT & CO. LTD  WILL REMAIN IN FORCE UNTIL SUCH  TIMES AS I CANCEL IT IN WRITING TO  MERCHANT & CO. LTD.   Signature___________________________   Date_______________________________   * Please delete as appropriate ** Please insert details of the goods/ services being purchased.

   

  Visa or MasterCard Recurring Transaction authority   Please complete parts 1 to 7 to  authorise us to claim payments directly  from your Visa or MasterCard Account.   To: Merchant & Co. Ltd   Merchant Reference			I understand that Merchant & Co. Ltd will  advise me of the amount to be paid and  the dates on which payment is due and  that Merchant & Co. Ltd may only change  these after giving me prior notice.
  	1.       Name of Cardholder   2.       Full Address   3.       Postcode   4.       Telephone Number   5.       Visa/MasterCard account number   6.       Expiry Date   7.       I authorise you to charge my  MasterCard/Visa/Visa Debit* an  unspecified amount in respect of ________________** as and when  they become due.		I UNDERSTAND THAT THIS AUTHORITY IN FAVOUR OF MERCHANT & CO. LTD  WILL REMAIN IN FORCE UNTIL SUCH  TIMES AS I CANCEL IT IN WRITING TO  MERCHANT & CO. LTD.   Signature___________________________   Date_______________________________   * Please delete as appropriate ** Please insert details of the goods/ services being purchased.

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