Procedure: 404-Becoming a Credit Card Merchant
Date: July 13, 2009

Statement of Procedure:

There are two types of credit card merchant operations:

  1. Face-to-Face/Counter Swipe/Telephone Sales
  2. Web-based/Internet Storefront

I. Face-to-face/Counter Swipe/Telephone-based Sales

  1. Complete the following forms:
    1. Complete the Credit Card Merchant ID Request Form
    2. Face-to-Face Operations Set Up Form:
  2. E-mail the Face-to-Face Operations Set Up form to Janet Hamm at Cash Management.
  3. Cash Management will work with Elavon to obtain a merchant ID number.
  4. Equipment and or information material will be mailed from Elavon to the merchant.
  5. For questions, contact the Cash Management office; Janet Hamm, 265-2909.

II. Web-based/Internet Storefront

  1. Complete the following forms:
    1. Complete the Credit Card Merchant ID Request Form
    2. Web-based/Internet Operations Set Up form:
  2. The following are four options the Revenue Producing Account (RPA) can choose from when setting up a storefront for web-based operations:
    1. Storefront created for the RPA by DoIT.
    2. The RPA creates their own strorefront.
    3. The RPA purchases storefront software from a vendor and wishes to use CashNet as the e-payment processor.
    4. The RPA purchases storefront software from a vendor and wishes to use the e-payment processor that is offered by the purchased software vendor.

1. Storefront created for the RPA by DoIT.

Return to Step C.

2. The RPA creates their own storefront.

Return to Step C.

3. The Revenue Producing Account (RPA) purchases storefront software from a vendor and wishes to use CashNet as the e-payment processor.

  • The RPA will work with Purchasing Services to create a contract for software/hardware purchases relating to the storefront.
  • The selected software vendor will have to meet the Payment Card Industry standards with respect to security over customer personal information. This should be specified as part of the bidding process to select the vendor. If required, Cash Management will work with the RPA to arrange a determination whether the PCI standards are met (see 404 Policy: Credit Card Merchant).
  • Cash Management will contact the RPA with Credit Card Merchant ID information.
  • Cash Management will arrange for technical assistance from CashNet to work with the software vendor to connect the two services. Any costs associated with this service from CashNet will be passed on to the RPA.
  • Cash Management will provide RPA staff with training about how to use control reports.

Return to Step C.

4. The Revenue Producing Account (RPA) purchases storefront software from a vendor and wishes to use the e-payment processor that is offered by the purchased software vendor.

  • The RPA will work with Purchasing Services, create a contract for software/hardware purchases relating to the storefront.
  • The selected software vendor will have to meet the Payment Card Industry standards with respect to security over customer personal information. This should be specified as part of the bidding process to select the vendor. If required, Cash Management will work with the RPA to arrange a determination whether the PCI standards are met (see 404 Policy: Credit Card Merchant).
  • Cash Management will contact the RPA with Credit Card Merchant ID information.

Return to Step C.

Cost of Services

  1. For Face-to-Face and Web-based (Internet) operations:

Elavon and American Express charge a fee or, "merchant discount," for the processing of credit card payments. The VISA, Mastercard, and Discover rate is approximately 1.75 percent and the American Express rate is approximately 2.25 percent. These charges are passed thru by Cash Management to the RPA.

  1. Additional charge for Web-based (Internet) operations:

CashNet charges UW-Madison for its e-payment services for all transactions over the web. There is also a cost to operate the E-Payment Processing Services (E-Pay). The charges incurred from CashNet, as well as the cost of operating the E-Payment Processing Services (E-Pay), are recovered by a per transaction charge to RPA’s. This rate, which is reviewed annually, is currently set at $0.75 per transaction.

Contacts

  • Credit Card Security and Payment Card Industry (PCI) Questions:
  • Web-based/Internet Storefront:
  • Face to Face/Counter Swipe/Telephone Sales:
    • Janet Hamm; (Phone) 608-265-2909
    • (FAX) 608-262-5060
  • General financial questions related to credit card processing:
  • Cash Management Supervisor:
    • Sharon Hughes; (Phone) 608-262-1305
    • (FAX) 608-262-5060

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