Start Accepting MasterCard® PayPass™

Conducting a Site Survey

Just as you do when purchasing any new equipment or accessory for your merchant location, you'll want to take a careful look at your floor plan. If the layout is different at each site, examine each separately, taking into account such considerations as where the outlets are, how much counter space is available, and the locations of data ports.

Remember that each site may present unique challenges-such as the location of underground conduits for drive-thru solutions or special cabling requirements for reader integration to standard terminals.

Here are some other considerations for your site survey:

Customer Convenience

If you place the terminal under a counter or on another counter, be sure that the PayPass reader is within the customer's reach. The terminal, however, may be placed closer to the phone line (for dial-up) or network cable (for high-speed connection—the recommended method). The terminal can be placed on a back counter or mounted on a wall.

Connection Reliability

Permanently run the phone line or network cable to the terminal in order to avoid any accidental disconnects during transaction processing. A longer cable may be required between the reader and the terminal.

Connectivity Limitations

Take into consideration terminal connectivity limits, especially if other peripheral equipment is being used. Ensure that the cable connected between the reader and the terminal is plugged into the correct port.

Prioritize Upgrade Order

Which POS should be MasterCard PayPass enabled—all of them, or just customer service, main-line traffic, or express lanes? In what order should the check-out lanes be enabled?  Those that experience the highest traffic or those which would benefit most from speed and convenience should be upgraded first.

Number of Terminals and/or Readers

Determine the number of terminals and/or readers that will be needed for each location. Consider having back-up equipment (hardware and cabling) readily available to minimize service disruptions.

Determining POS/ECR Requirements

In the previous section, Getting Started with PayPass, you were introduced to some of the high-level considerations involved in site layout. In this section, we'll dive deeper into the POS/ECR requirements for a successful implementation.

First determine whether:

• You'll be implementing an overall POS upgrade to an integrated POS solution.

- or -

• Existing equipment can support PayPass readers and the appropriate terminal application.

Once you've made this determination, next steps are as follows:

• Select Hardware
  

  Implementing MasterCard PayPass involves adding PayPass-enabled terminals or readers to existing POS equipment such as ECRs and magnetic stripe-reading terminals, replacing existing POS terminals with terminals that have integrated PayPass capabilities, or installing new POS equipment configured to support PayPass. Merchants should contact their acquirer for the latest list of approved equipment vendors.

  Visit www.paypass.com for a list of MasterCard Approved PayPass Terminal/Readers

  All contactless readers must be approved by MasterCard; ask for proof of this when procuring contactless terminals or readers.

  Based on the results of your site survey, you'll need to determine where to install PayPass-enabled readers/terminals—at all registers and drive-thru lanes or only at selected ones. Acquirers can help determine which solutions will work best for a merchant's environment. Acquirers provide a variety of vendor hardware and software solutions, including purchase, rental, and leasing options, as well as deployment and repair/replacement services. Merchants accepting MasterCard PayPass must also maintain at least one magnetic stripe terminal on the premises for non-PayPass transactions.

• Identify Software Needs

  Once you have selected PayPass hardware, software modifications will have to be made to existing ECRs or terminals to create an integrated POS solution. Software changes will be different for a dual amount entry set-up than for an integrated POS system.

• Obtain High-Speed Connections

  MasterCard strongly recommends that PayPass be installed with high-speed authorization connections. Delays caused by slow telecommunication systems do not deliver the desired consumer experience at the POS and limit the merchant's ability to realize the benefits of PayPass. All major acquirers can provide high-speed network transaction processing solutions.

Tip When adding PayPass-capable terminals/readers at the POS, avoid placing them close to metal objects or electrical equipment, as these can have a negative effect on device-to-terminal/reader communication.

Implementation Considerations

The successful implementation of PayPass requires a careful understanding of how PayPass impacts work flow—both upstream and downstream. With this understanding, you'll be able to minimize disruptions and start realizing benefits more quickly.

In this section, you'll find useful information on PayPass transaction processing requirements and learn about the transaction touchpoints. In addition to the specific development requirements for PayPass, you'll find information about the critical area of PIN Debit.

Processing Needs

PayPass is designed to minimize changes to your processing environment. Nevertheless, you'll need to look at each type of transaction to identify specific needs and requirements.

PayPass Transaction Coding - “Data Element (DE) Compliance. Make sure not only that individual payment terminals can accept and process PayPass cards/devices, but also that PayPass transactions can be identified in the data generated during authorization request and transaction clearing. Correctly-identified PayPass transactions are considered Data Element, or DE, compliant. DE compliance allows merchants, acquirers, MasterCard, and issuers to:

• Identify and prevent fraud
• Monitor usage of PayPass cards, devices, and terminals
• Track PayPass terminal capabilities (where PayPass terminals are deployed)
• Manage chargeback processing associated with PayPass transactions

To identify PayPass transactions, new values have been created for certain existing data elements in the MasterCard-defined authorization and clearing records. The payment terminal and all intervening systems and messages must be able to recognize the 'Point of Service Entry Mode' (DE 22) and the 'Point of Service Terminal Input Capabilities'; (DE 61) so these new values can be populated and passed.

The correct coding and processing of these fields for authorization and clearing messages is detailed in Global Operations Bulletin No. 6, 1 June 2005, the official MasterCard notification of this payment systems change. Please contact your acquirer to obtain a copy of the bulletin.

Impact of New Data Values. For each PayPass transaction, merchant POS systems, intervening systems, and networks must provide certain transaction information to acquirers so that acquirers can populate data elements that indicate a PayPass transaction has occurred. In other words, you must make sure that every MasterCard transaction carries the terminal-generated information the acquirer needs to set the correct values for the 'Point of Service Entry Mode' and 'Terminal Capabilities' fields in both authorization and clearing messages. The terminal and the ECR must be programmed to accept the “Point of Service Entry Mode” and “Terminal Capabilities” fields. The terminal must communicate the following to the acquirer:

• The way the card details were input to the terminal, such as:
  • Manual entry (key entered)
  • Magnetic stripe read
  • Contact chip read
  • Manual entry (key entered) from a contact chip card at a contact chip capable terminal (fallback following failure of chip and magnetic stripe read attempts)
  • Magnetic Stripe read from a contact chip card at a contact chip capable terminal (fallback following failure of a chip read attempt)
  • Contactless chip using PayPass Magnetic Stripe application
  • Contactless chip read using PayPass OneSmart M/Chip application
• The terminal data input capabilities at the time the transaction took place, such as:
  • Key entry only
  • Magnetic stripe reader only
  • EMV specification-compatible chip reader only
  • Magnetic stripe reader and key entry
  • Magnetic stripe reader and EMV specification-compatible chip reader
  • Magnetic stripe reader, key entry, and EMV specification-compatible chip reader
  • Contactless - supporting PayPass Magnetic Stripe only
  • Contactless - supporting PayPass M/Chip

Please note

Acquirers must ensure that they correctly code:

• MasterCard network messages to indicate the correct method of reading the card or device (contactless, swiped, or keyed, etc)—Data Element (DE) 22 POS Entry Mode
• MasterCard transaction messages to indicate the capability of the terminal to accept PayPass cards or devices—Data Element (DE) 61 POS Terminal Device Input Capabilities

Please also note

• Only a properly identified PayPass transaction equal to or less than the equivalent of US $50 is protected against chargebacks under reason codes 4801, 4802, and 4807.
• A properly identified PayPass transaction occurs when:
• In the Authorization Response/0110 message:
• DE 22, subfield 1 contains a value of 91 (PAN auto-entry via contactless magnetic stripe)
• DE 61, subfield 11 contains a value of 4 (Contactless Magnetic Stripe)
• In the First Presentment/1240 message:
  • DE 22, subfield 1 contains a value of A (PAN auto-entry via contactless PayPass Magstripe)
  • DE 22 subfield 7 contains a value of A (PAN auto-entry via contactless PayPass Magstripe)

Processing Methods and Preferences

Here are a few other hardware and software requirements and suggestions to keep in mind as you incorporate MasterCard PayPass best practices:

• Terminal application development. All terminals must have the appropriate terminal application (available through your acquirer) to handle MasterCard PayPass transactions and recognize the PayPass reader
• ECR/POS system application development. POS software must be updated to identify MasterCard PayPass and print receipts with or without a signature line
• Acquirer and processor development must encompass all transaction types (credit, signature debit, PIN debit). Each acquirer and processor must be able to identify MasterCard PayPass for all transaction types
• Terminal memory. Ensure the terminal has enough memory to support the acceptance of closed loop payment types, e.g. gift cards

Note Each touchpoint of a MasterCard PayPass transaction must be enabled to process that payment, i.e. pass the correct data in authorization and clearing messages.

Transaction Mapping

A good PayPass implementation best practice is to “map out” all the touchpoints for every transaction type you accept. This will ensure that you make all the proper systems changes to PayPass values at each touchpoint. Here are the key steps to take when mapping out your transactions:

• Identify the various types of transactions that you will accept for MasterCard PayPass, such as credit, signature debit, and/or PIN Debit.
• Verify that your acquirer can support MasterCard PayPass and the transaction types requested.
• Since each PayPass transaction type can take a different processing path, ensure that all necessary hardware and software is in place, including:
• Terminal applications
• ECR/POS software and middleware
• Acquirers and processor systems

Transaction Mapping Tool (PDF - Size: 584 kb)

PIN Debit

If you currently accept PIN Debit and want to accept PIN Debit for MasterCard PayPass, special attention must be paid during transaction mapping and coding to account for additional transaction touchpoints. (Please refer to Transaction Mapping above.)

Let's look more closely at the two scenarios:

• If you want to accept MasterCard PayPass PIN Debit, make sure that all acquirers, processors, gateways, and networks you interact with are PayPass certified. Every transaction touchpoint must have completed software coding to accept MasterCard PayPass PIN Debit. Ask each organization if its current transaction processing platform can support PayPass.

Remember that the key benefits of PayPass are speed and convenience. If you decide to accept MasterCard PayPass PIN Debit, it's important to have as few steps in the point-of-sale application flow as possible. For example, having the customer select debit or credit is one step, entering a PIN is another step, prompting the cashier to push a tender key is yet another step. The PayPass point-of-sale application flow for PIN Debit should involve as few customer interactions as possible to minimize checkout time.

• If you accept PIN Debit magstripe but decide not to accept MasterCard PayPass PIN Debit, you'll need to work with your hardware manufacturer to make sure the terminal application is using an automated PIN suppression utility. This involves additional coding so that the terminal application doesn't lock up or decline—both of which can negatively impact customer satisfaction.

Reviewing the Implementation Plan and Vendor Requirements

A final check of your implementation plan will help ensure you have the hardware and software requirements needed to ensure a successful implementation.

• Have you identified the number of readers/terminals you'll need and where they will be utilized (e.g., check out, returns, customer service, drive thru)?


• Who will do the installation—your IT Department or a third party?


• Which locations will serve as your pilot location(s)?


• Have you developed a roll-out schedule?


• Have you selected a reader/terminal vendor?


• Is the vendor on the MasterCard and Acquirer-approved vendor list?


• Will you use a third party installer?


• Is this a local, regional, or national deployment?


• What is your timeline for implementation?