Merchant Support Guide

1. Changes in release 2.5

• ISO summary report:

a. Added last 4 of settlement bank account for each merchant.

• Transaction report:

a. Added non-US beneficiary support with:

b. Beneficiary Amount

c. Beneficiary Currency

d. FX Rate Applied

• Account Updater report:

a. List of cards / accountIDs that have changed, as reported by issuers

• Report delivery options:

a. Added email with encrypted zip file

b. Added Amazon AWS s3

2. Overview

This merchant support guide provides the merchant with instructions to help support card disbursements and purchases with TabaPay as well as ACH debits and credits.

Details on the settlement process, reports, and support procedures are detailed.

The reports have a separate Excel workbook that details the various fields.

3. Merchant Setup: Card Acceptance

A Merchant must setup the following items prior to processing card transactions:

Configuration item Description
Statement description Name that is displayed on cardholder statement. NOTE: soft descriptor (sent on each transaction, is available to certain merchants with approval)
Phone number Phone number provided to receiving institution. NOTE: soft descriptor (sent on each transaction, is available to certain merchants with approval)
Daily PULL limit Aggregate daily limit for purchases
Daily PUSH limit Aggregate daily limit for disbursements
Maximum PULL ticket Maximum PULL transaction limit
Maximum PUSH ticket Maximum PUSH transaction limit
Accepted card types Debit cards, credit cards, prepaid cards, US/non-US
MCC Merchant category code
Settlement account Account to receive proceeds. NOTE: can have separate settlement account for purchases and disbursements
Fee account Account to fund interchange and assessments. Can be same as settlement account or adjustment account.
Adjustment account Account to fund chargebacks, receive representments, and fund other adjustments. Can be same as settlement account or fee account.
Settlement options Gross: 3 settlement ACH instructions per day (CR for purchases, DR for disbursements, DR for fees)

Net: Option to net settle disbursements and purchases. Can also include fees or separate fees
Report subscription Any or all of the following can be subscribed to. “$” indicates an additional fee may be charged if delivered with the daily reports.
• Daily transaction report
• Daily settlement summary report
• Daily interchange report
• Daily exception report
• Daily chargeback report
• Daily AML summary
• Daily AML details
• BIN file ($)
Report delivery The following options are provided for report subscription delivery:
• Amazon s3 bucket (folders supported)
• Dropbox
• Citrix sharefile
• Encrypted email
Invoice files Invoice files The following files are delivered with the monthly invoice:
• Monthly invoice
• All transactions processed in a month
• Monthly deposit/debit summary. Day by day bank movements
• An ISO further receives:
o Interchange by MID by billing code
o Network fee by MID by network code
o Processing fees by MID and category
Invoice delivery The following invoice delivery methods are supported:
• Email
• Dropbox
• Sharefile
• Amazon s3

4. Merchant Setup: ACH and RPPS Origination

Configuration item Description
Company name Name that is displayed on customer statement
Company entry description Description that is displayed on customer statement
Settlement account Offset account used for all debit, credit and return entries
Company ID Company EIN

5. Merchant Setup: ACH Setup

The following contacts are required prior to going live on any TabaPay service

Configuration item Description
Operations contact Merchant contact for operations
Treasury contact Merchant contact for treasury issues
Invoice contact and email Merchant contact to receive monthly invoices

6. Merchant Configuration

Settlement Options:

Configuration Item Description Option Chosen
Settlement Gross settlement: Purchase deposit separate from Disbursement debit

Net settlement: a net amount is settled Purchase-Disbursements. If negative a debit is initiated on the account.
Exceptions Gross: Exceptions are debited are credited separately from settlement

Net: Exceptions are debited or credited against the Purchase proceeds
Fee Frequency Interchange and network fees are debited daily

Other options: requires approval
Fee Settlement Gross: a separate fee debit is sent daily

Net: the fees are debited against the purchase proceeds. If negative net amount then a debit is sent to the account designated for Purchases
Convenience Fee XXXXX XXXX

Account Options:

Configuration Item Description Option Chosen
Purchase Account Account used to receive the Purchase deposit. Deposit is less refunds.
Disbursement Account Account used to fund disbursements. This account must be at acquiring bank
Adjustment Account Account used for Chargebacks and Representments
Fee Account Account used for daily fee debit

Additional ISO Options:

Configuration Item Description Option Chosen
Settlement ISO level settlement: All funds are settled at the ISO level

Merchant level settlement: funds are settled for each merchant. Each merchant must provide unique account and settlement options
Reports Reports can be delivered to the ISO or Merchant
Fee type A merchant discount rate or interchange++ can be configured. The daily merchant debit for fees can be the ISO’s fees to the merchant. TabaPay can credit the residual ISO fees daily or monthly
Fees ISO or merchant: Does the ISO or merchant pay the daily interchange and assessments.

7. Daily Settlement

Daily settlement is for prior cutoff activity. The daily settlement reports are available by 9am PT.

The merchants may see the following debits/credits daily:

1. Deposit for all purchases. Merchant will receive full value for the purchases less:

a. Chargebacks

b. Refunds

c. Adjustments

2. Withdraw for all disbursements.

3. Withdraw for all chargebacks if Purchases unable to pay for chargebacks (see above, chargebacks are usually deducted from Purchases prior to deposit).

a. If merchant bank account at the acquiring bank then a withdraw will be posted.

b. If merchant bank account not at the acquiring bank then the reserve account will be debited and if non-sufficient funds then deduction from purchase proceeds.

4. Withdraw or deposit for adjustments

5. Withdraw to fund the reserve

6. Deposit for all disbursement returns.

7. Deposit for all chargeback representments.

A summary of the chargeback/representments/return funds movement actions is below. These are possible actions on a transaction in the daily exception report:

• Open – Merchant debited --funds movement: debit to merchant account

• Documentation received

• Closed – 2nd Chargeback – merchant debited --funds movement: debit to merchant account

• Representment - merchant paid. --funds movement: credit to merchant account

• Return – merchant paid -- this is a returned disbursement, --funds movement: credit to merchant account

The merchant will see one or more of the following entries on their bank statement:

  • Purchase payout: CompanyID: “TabaPay” Description: “PmtMMDDB”
  • Disbursement settlement: CompanyID: “TabaPay” Description: “DisbMMDDA”
  • Adjustment settlement: CompanyID: “TabaPay” Description: “AdjMMDDA”
  • TabaPay fees: CompanyID: “TabaPay, Inc.” Description: “FeesMMDDB”

The ACH debit and/or credit on the on the bank account can be identified with the following identifiers:

  1. Company Name: "Tabapay" + Numeric identifier. For example: TabaPay 10004567
  2. Entry description:
    a. Purchase deposit: “Pmt” + MMDD + letter
    b. Disbursement debit: “Disb” + MMDD + letter
    c. Reserve debit: “Resv” + MMDD + letter
    d. Adjustment debit: “Adj” + MMDD + letter

The Numeric identifier is provided by TabaPay prior to the merchant going live.

The MMDD is the month and day of the settlement. For example, Thursday payment activity will have a settlement MMDD for the Friday.

NOTE: Friday payment activity is aggregated with Sat/Sun and will have a single MMDD for a Monday deposit.

The letter is a TabaPay included letter to help identify the payment in the event of a merchant reported problem. The letter can be A-Z.

The day after a weekend or holiday, TabaPay will post the deposits or withdrawals in aggregate, for each day of the weekend or holiday.

For example, if a holiday is on a Monday, the merchant will receive the following settlements in an aggregate credit (or debit) on Tuesday: (i) Friday activity that would typically settle Monday, (ii) Saturday activity that would typically settle Monday, (iii) Sunday activity that would typically settle Monday and (iv) Monday holiday that settles Tuesday.

8. Card Settlement flow

The card settlement flow is shown below:

  1. The bank debits disbursements from the merchant account
  2. If there are insufficient funds to cover the disbursement (including net settlement against AFT) then the merchant reserve is debited.
  3. AFT proceeds are credited to the merchant account less chargebacks
  4. Daily interchange and network fees are deducted from the merchant account.
  5. TabaPay pays all network fees to each network.

9. ISO / multi-merchant Settlement

An ISO or a merchant with multiple merchant IDs can specify ISO level settlement (or individual merchant settlement). ISO level settlement uses a single account and single ACH debit or credit for all merchants. The ISO is responsible for sending money to each merchant using the ISO summary report.

10. Cutoff time

Cutoff time varies by network and type of transaction. The merchant will be paid or debited for all transactions posted in the 24 hours prior to cutoff time.

Network Transaction type Cutoff time
Visa Purchases, refunds 03:00 PT
Visa Disbursements 03:00 PT
Mastercard Purchases, refunds 21:00 PT
Mastercard Disbursements 23:00 PT
STAR Purchases, Disbursements 15:00 PT
Accel Purchases, Disbursements 13:00 PT
PULSE Purchases, Disbursements 22:00 PT
NYCE Purchases 13:30 PT
NYCE Disbursements 03:00 PT
American Express Purchases 21:00 PT*
Bill Payment (CC) Disbursement, cc payoff 15:00 PT
ACH Same Day Disbursement and collection 07:30am PT
ACH Next Day Disbursement and collection 05:30pm PT
Real Time Payments (RTP) Disbursements 21:00 PT**

The daily transaction report has all transactions that comprise the daily merchant settlement, respecting these cutoff times.

*American Express is settled two business days after cutoff.

*RTP report cutoff is 9pm PT, which matches the daily reconciliation reports and funding true-up (midnight-midnight ET). See separate RTP guide.

11. Report Delivery

Daily reports can be delivered to Merchants using one of the following methods, at merchant option:

A. SFTP push. TabaPay pushes reports via SFTP. Security options can include:

a. Merchant whitelists TabaPay IP

b. SFTP ID and Password

c. TabaPay public key for SFTP security (ID or ID+PW)

d. File encryption using Merchant public PGP key

B. Dropbox. TabaPay assigns a dropbox to one or more Merchant email accounts. The reports are posted daily. Security options include:

a. Dropbox security is standard

b. File encryption using Merchant public PGP key

C. Amazon s3. A directory can be included

a. Amazon security is standard

b. File encryption using Merchant public PGP key:

c. AWS access credentials:

i. AWS Access Key ID

ii. AWS secret key

iii. AWS bucket name

iv. If directory is used, then directory name

D. Email. One or more Merchant emails can daily reports. Files are zip and encrypted with Merchant selected password.

12. Merchant Statement

The Merchant Statement is available within 7 days after the end of the month. The merchant statement lists all the transactions with network fees per transaction, interchange due for merchant, total fees due, as well as Reserve balance and any changes to the Reserve during the month. The Merchant Statement is available within the TabaPay portal, under invoices. The monthly reporting includes:

(i) The monthly statement

(ii) The monthly list of all transactions, which includes the fees billed:

a. the interchange per transaction

b. the network fees billed per transaction

c. the processing fees billed per transaction

(iii) The daily summary for the month of deposits, withdrawals, chargebacks, representments, and fees.

13. Transaction details

The daily transaction report is available by 9am PT.

14. Exceptions Report

Field Description
ISO ISO number assigned by TabaPay
MID Merchant number assigned by TabaPay
Reference ID Merchant transaction ID passed in API
Memo Merchant Memo (to recognize transaction passed in API)
Transaction ID TabaPay transaction ID returned in the API
Exception ID Unique ID for the exception.
Exception type (SEE CHART BELOW)
Exception code Code from the specific network
Exception description Description corresponding to the code
Exception date Date exception received by TabaPay
Action status Last status of the exception: settlement funds movement shown
• Adjustment - merchant debited
• Adjustment - merchant paid
• Closed – 2nd Chargeback – merchant debited
• Open – Merchant debited
• Representment - merchant paid.
Other status descriptions that do not indicate funds movement include:
• Documentation received – TabaPay has received documentation regarding the chargeback and will represent to the network.
Action date Date of action status.
Days open Days the exception has been open (for Exceptions report, will always be 0)
Network TransactionID ID from the network
Date Created Date and time (Pacific) returned in API
Date Processed (If a weekend or holiday, settlement is next business day)
Transaction type Purchase (+), Disbursement (-), Purchase chargeback (-), disbursement chargeback (+), Purchase reversal (-)
Exception Network Network posting the exception
Last 4 Last 4 of beneficiary card
Amount Purchase (+), Disbursement (-), Purchase chargeback (-), disbursement return (+), Purchase reversal (-)
Currency Currency of amount
Error code TabaPay error code
Network RC Network Response code
Name Cardholder name
TabaPay fee TabaPay fee (per transaction)
Network fee Network fee (per transaction)
Interchange fee Interchange fee (per transaction)

Exception Type Chart:

Field Description Fund Movement
Chargeback A purchase dispute Merchant debit
Return A returned disbursement Merchant credit
Representment A Chargeback represented by TabaPay/merchant and paid back to bank (merchant). Merchant credit
Adjustment debit A debit received from network related to prior transaction. Look at Exception description. Merchant debit
Adjustment credit A credit received from network related to prior transaction Merchant credit

15. Chargeback states: Exception type and statuses

Exception type Possible Action statuses Funds moved
Chargeback • Open – Merchant debited
• Documentation received
• Closed - 2nd Chargeback – Merchant debited
Representment • Merchant paid
• Closed – 2nd Representment
Return Closed – merchant paid Y

A typical chargeback flow:

1. Chargeback received. Exception type=Chargeback, Status=Open – merchant debited

2. Documentation received. Exception type=Chargeback, Status=Documentation received

3. Representment. Exception type=Representment, Status=Merchant paid

4. 2nd chargeback. Exception type=Chargeback, Status=Merchant debited

16. Exception Report Interchange True-up

The Exception Report may contain a record for each network with actual interchange difference between the per transaction interchange on the Transaction report and the actual interchange billed by network.

TransactionID"TPIC" <YYYYMMDD>-<network>
(Where <YYYYMMDD> is the settlement date and <network> is 1 character indication of network (V, M, S, A, P, N)
Example TPIC20180718-P
ExceptionID"TPIC" <YYYYMMDD>-<network>
(Where <YYYYMMDD> is the settlement date and <network> is 1 character indication of network (V, M, S, A, P, N)
Example "TPIC20180718-P"
Exception Type"Interchange"
Original Transaction"Purchase"
Exception Source"Settlement"
Exception DestinationNetwork
Example "Visa"
Exception NetworkNetwork
Example "Visa"
Original Settled Amount$0
Exception Settled Amount$0
InterchangeInterchange difference
Original Creation Date, Processed Date are prior day
Exception Date and Status Date are the Settlement Date

17. Chargebacks Report

The Chargebacks Report contains a history of each chargeback until closed. Only chargebacks are shown on the Chargebacks Report, whereas the Exceptions Report contains other exception types. The Chargebacks Report contains the same data fields as the Exceptions Report. Content differences are shown below. Closed chargebacks are dropped from the Chargebacks report 30 days after close.

Field Desciption
Action status • Closed
• Closed – 2nd Chargeback – merchant debited
• Closed – Merchant debited
• Documentation received
• Open – Merchant debited
• Representment - 2nd - Merchant Paid
• Representment - merchant paid.
Action date Date action changed.
Days open Days since exception received (day 0 = date received)
Exception type Always “chargeback” for the Chargeback report

18. Merchant Summary Report

The Summary report shows the debits and credits to the merchant settlement account. The Transaction detail will reconcile the Summary report.

Field Description
Purchase Total of all purchase for the day
Disbursements Total of all disbursements for the day
Exceptions Total of all exceptions for the day
Reserve Funding Any merchant funding of the reserve account
Interchange fees (not part of daily settlement, but shown for completeness)
Network fees (not part of daily settlement, but shown for completeness)
Tabapay fees (not part of daily settlement, but shown for completeness)

19. Interchange Report

The interchange report shows the actual interchange to be charged by network and card type category. The transaction report shows the indicative rate (estimate), the interchange report shows actual interchange.

Field Description
ISO ISO number
ISO Name ISO name
MID Merchant number
Merchant name Merchant name
Brand Visa, Discover, Mastercard, PULSE, STAR, NYCE, Accel
Interchange category Network category for interchange fees
Txn Count # of transactions in the category
Txn $ Total $s of purchases or disbursements
Interchange $ Total $s of interchange