Merchant Reference

Guide
U.S.

October 2021
Copyright © 2008-2021 American Express Travel Related Services Company, Inc. All rights reserved.
Table of Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
1.1 About American Express . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 About the Reference Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.3 Organization of the Reference Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.4 Publishing Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.5 Becoming an American Express Merchant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2 Doing Business with American Express . . . . . . . . . . . . . . . . . . . 3

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 The American Express Merchant Number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Merchant Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.4 Use of Third Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.5 Compliance with the Technical Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.6 Call Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.7 Permitted Uses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.8 Cardmember Offers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.9 Marketing Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 Card Acceptance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Accepting the Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2 Treatment of the American Express Brand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.3 Prohibited Uses of the Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.4 Treatment of American Express Cardmember Information . . . . . . . . . . . . . . 8

4 Transaction Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.1 The Many Types of Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.3 Completing a Transaction at Point of Sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.4 Processing an In-person Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.5 Customer Activated Terminals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.6 Processing a Card Not Present Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.7 Processing a Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.8 Digital Wallet Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.9 Return and Cancellation Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
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4.10 Corporate Purchasing Card Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4.11 Advance Payment Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.12 Aggregated Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.13 Delayed Delivery Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.14 Recurring Billing Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4.15 Processing Prepaid Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.16 Processing Travelers/Gift Cheques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
4.17 Property Damages to Accommodations and other Rentals . . . . . . . . . . . . . 13
4.18 Split Shipment Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5 Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.3 The Purpose of Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.4 Authorization Time Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
5.5 Floor Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.6 Authorization Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.7 Possible Authorization Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.8 Obtaining an Authorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.9 Card Identification (CID) Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.10 Authorization Reversal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6 Submission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.3 Purpose of Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.4 Submission Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
6.5 Submission Requirements – Electronic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
6.6 Submission Requirements – Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
6.7 How to Submit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

7 Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
7.1 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.2 Settlement Amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.3 Discount/Discount Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.4 Method of Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.5 Speed of Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
7.6 Payment Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
7.7 Reconciliation Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
7.8 Payment Errors or Omissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
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8 Protecting Cardmember Information . . . . . . . . . . . . . . . . . . . . 24

8.1 Data Security Operating Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
8.2 Targeted Analysis Program (TAP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
8.3 Standards for Protection of Cardmember Information . . . . . . . . . . . . . . . . . 25
8.4 Data Incident Management Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
8.5 Indemnity Obligations for a Data Incident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
8.6 Periodic Validation of Merchant Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

9 Fraud Prevention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
9.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
9.3 Strategies for Deterring Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
9.4 Card Acceptance Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
9.5 Card Security Features. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
9.6 Recognizing Suspicious Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
9.7 Fraud Mitigation Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
9.8 Verification Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
9.9 American Express SafeKey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

10 Risk Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10.2 Prohibited and Restricted Merchants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10.3 Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10.4 Consumer Protection Monitoring Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

11 Chargebacks and Inquiries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
11.2 Transaction Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
11.3 Disputed Charge Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
11.4 Requesting a Chargeback Reversal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.5 Resubmission of Disputed Charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.6 Compelling Evidence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.7 Substitute Charge Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.8 Deadline for Responding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.9 Cardmember Re-disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
11.10 Chargeback and Inquiry Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
11.11 How We Chargeback. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
11.12 Chargeback Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
11.13 Ways to Receive Chargebacks and Inquiries. . . . . . . . . . . . . . . . . . . . . . . . . . . 36
11.14 Response Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
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12 Merchant Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
12.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
12.2 Types of Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
12.2.1 Card Acceptance Discount Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
12.2.2 Authorization Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
12.2.3 Submission and Settlement Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
12.2.4 Data Security Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
12.2.5 Data Pass Violation Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
12.2.6 Excessive Chargeback Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
12.2.7 American Express Merchant Regulations Fee. . . . . . . . . . . . . . . . . . . . . . . . . 42

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Introduction 1

1.1 About American Express

1.2 About the Reference Guide
1.3 Organization of the Reference Guide
1.4 Publishing Schedule
1.5 Becoming an American Express Merchant

1
 Merchant Reference Guide - U.S.
Introduction :: About American Express

1.1 About American Express

American Express was established more than 150 years ago and has undergone remarkable
changes over the years. One characteristic has remained constant, however: our commitment
to the core values of our founders. American Express is guided by a value system that is
steadfastly focused on doing business in more than 130 countries around the globe with trust
and integrity, delivering quality products and services to our valued customers.

As a world-recognized brand leader, we take our commitment to Merchants seriously. This

guide is designed to provide information about American Express and how accepting the
American Express® Card can benefit Merchants.

1.2 About the Reference Guide

We are pleased to provide the American Express Merchant Reference Guide – U.S. which
describes in general American Express’ standard policies and procedures for Card acceptance.

This is a general review of information already distributed to Merchants in their Agreements

with American Express governing acceptance of the Card; it does not change the terms and
conditions of a particular Merchant’s Card acceptance Agreement. Some Merchants may have
different or additional, or reformatted terms and conditions. In the event of any conflict
between the Agreement and any Applicable Law, the requirements of the law govern.

1.3 Organization of the Reference Guide

The American Express Merchant Reference Guide is designed to follow the flow of the
Transaction process - from Card acceptance, to Authorization, to Submission, to Settlement,
to Disputed Charges, to Chargebacks.

1.4 Publishing Schedule

The American Express Merchant Reference Guide will change periodically. We reserve the right
to make changes at any time, and it is possible that this information will not be accurate or
current at all times or in all respects.

1.5 Becoming an American Express Merchant

If interested in becoming an American Express Merchant, call 800-445-2639, or visit
www.americanexpress.com/merchant.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third October 2021 2
parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Doing Business with American
Express 2
2.1 Introduction
2.2 The American Express Merchant Number
2.3 Merchant Information
2.4 Use of Third Parties
2.5 Compliance with the Technical Specifications
2.6 Call Monitoring
2.7 Permitted Uses
2.8 Cardmember Offers
2.9 Marketing Programs

2
 Merchant Reference Guide - U.S.
Doing Business with American Express :: Introduction

2.1 Introduction
At American Express, we feel privileged to do business with Merchants and want to help make
the process of accepting our Cards as simple as possible. This chapter outlines some general
concepts that relate to doing business with American Express.

2.2 The American Express Merchant Number

American Express Merchant Numbers are provided to Merchants shortly after the application
process to accept the Card is completed.

Merchants must use their Merchant Numbers to identify their businesses any time they
contact us. The Merchant is responsible for safeguarding the Merchant Number.

Merchants must have separate Merchant Numbers assigned for Card Present Charges and
Card Not Present Charges, respectively.

2.3 Merchant Information

Seamless communication is a critical component of our ability to provide superior service to
our Merchants. Merchants must notify American Express of any changes in their Merchant
information (e.g., changes in methods of doing business).

Additionally, we require that Merchants provide us accurate information to identify each

person or Entity applying to accept the Card and open a Merchant Account, as well as
information that may be provided in subsequent calls or interactions with us. We will use such
information to improve our services, prevent fraud, or for other business purposes.

2.4 Use of Third Parties

Some Merchants choose to deal directly with American Express for all aspects of the
Transaction process; others enlist the assistance of various third parties to provide them with
services. These third parties include:
• service providers/Processors,
• Terminal Providers,
• vendors, and
• Covered Parties and other agents contracted to operate on the Merchant’s behalf.
Merchants may retain, at their expense, such third parties; however, Merchants remain
financially and otherwise liable for all obligations (including confidentiality obligations and
compliance with the Technical Specifications), services, and functions they perform under the
Agreement for Merchants, such as the technical requirements of authorizing and submitting
Transactions to American Express, as if Merchants performed such obligations, services, and
functions. Merchants must notify us if they intend for these third parties to deal directly with us
and notify us promptly in writing if they change such third parties.

2.5 Compliance with the Technical Specifications

A vast number of Transactions traverse and are processed by the American Express Network.
Merchants, Processors, Terminal Providers, and others must conform to the Technical
Specifications in order to connect to and transact on the Network.

Merchants must ensure that they and any third parties they enlist to facilitate Transaction
processing with us comply with the Technical Specifications. Valid and accurate data must be
provided for all data elements in accordance with the Technical Specifications. Failure to

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third October 2021 4
parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Doing Business with American Express :: Call Monitoring

comply with the Technical Specifications may impact a Merchant’s ability to successfully
process Transactions, and may result in non-compliance fees (see Subsection 12.2.3,
"Submission and Settlement Fees").

Information regarding requirements for Merchant’s Point of Sale (POS) devices is available at
www.americanexpress.com/merchantspecs, under Technical Mandates.

2.6 Call Monitoring

We will monitor or record (or both) and analyze telephone calls with Merchants to improve our
services, prevent fraud, or for other business purposes.

2.7 Permitted Uses

In connection with Merchants’ acceptance of the Card, we may include Merchant’s name,
address (including Merchant’s website addresses or URLs), customer service telephone
numbers, and/or industry classification in lists of Merchants that accept the Card based on
information Merchants have provided to us or that is otherwise publicly available.

2.8 Cardmember Offers

American Express wants to help encourage Cardmembers to seek out and shop at our small
Merchants. From time to time, American Express may include small Merchants in Cardmember
offers from American Express. For more information, visit www.americanexpress.com/us/
small-business/shop-small/faqs and click on the Cardmember Offers tab.

2.9 Marketing Programs

As a Merchant, you may be eligible to participate in American Express marketing programs
that we conduct from time to time. We have the right, in our sole discretion, whether or not to
approve you as an eligible Merchant for a marketing program. If we determine that you are
eligible for a marketing program, you have the right, in your sole discretion, to decide whether
you will elect to participate in such a marketing program. If you do elect to participate in such
marketing program, you must complete and sign the appropriate documentation and the
provisions of the marketing sections will govern your participation in such programs.

This document contains sensitive, confidential, and trade secret information, and must not be disclosed to third October 2021 5
parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Card Acceptance 3

3.1 Accepting the Card

3.2 Treatment of the American Express Brand
3.3 Prohibited Uses of the Card
3.4 Treatment of American Express Cardmember Information

3
 Merchant Reference Guide - U.S.
Card Acceptance :: Accepting the Card

3.1 Accepting the Card

Merchants must accept the Card as payment for goods and services (other than those goods
and services prohibited under Section 3.3, "Prohibited Uses of the Card") sold, or (if applicable)
for charitable contributions made at all Establishments, except as expressly permitted by
applicable state statute.

Merchants are jointly and severally liable for the obligations of their Establishments under the
Agreement.

3.2 Treatment of the American Express Brand

American Express has built a brand that is synonymous with trust, integrity, security, quality,
and customer service. We work diligently to uphold our reputation and restrict Merchants from
engaging in activities that would harm our business or brand.

Except as expressly permitted by Applicable Law, Merchants must not:

• indicate or imply that they prefer, directly or indirectly, any Other Payment Products over
our Card,
• try to dissuade Cardmembers from using the Card,
• criticize or mischaracterize the Card or any of our services or programs,
• try to persuade or prompt Cardmembers to use any Other Payment Products or any other
method of payment (e.g., payment by check),
• impose any restrictions, conditions, disadvantages, or fees when the Card is accepted that
are not imposed equally on all Other Payment Products, except for electronic funds
transfer, or cash and check,
• suggest or require Cardmembers to waive their right to dispute a Transaction,
• engage in activities that harm our business or the American Express Brand (or both),
• promote any Other Payment Products (except the Merchant’s own private label card that
they issue for use solely at their Establishments) more actively than the Merchant
promotes our Card, or
• convert the currency of the original sales Transaction to another currency when requesting
Authorization or submitting Transactions (or both).
Merchants may offer discounts or in-kind incentives from their regular prices for payments in
cash, ACH funds transfer, check, or debit card or credit/charge card, provided that (to the
extent required by Applicable Law): (i) they clearly and conspicuously disclose the terms of the
discount or in-kind incentive to their customers, (ii) the discount or in-kind incentive is offered
to all of their prospective customers, and (iii) the discount or in-kind incentive does not
differentiate on the basis of the Issuer or, except as expressly permitted by applicable state
statute, payment card network (e.g., Visa, MasterCard, Discover, JCB, American Express). The
offering of discounts or in-kind incentives in compliance with the terms of this paragraph will
not constitute a violation of the provisions set forth above in this Section 3.2, "Treatment of the
American Express Brand".

Whenever payment methods are communicated to customers, or when customers ask what
payments are accepted, Merchants must indicate their acceptance of the Card and display our
Marks according to our guidelines and as prominently and in the same manner as any Other
Payment Products.

The Merchant must not use our Marks in any way that injures or diminishes the goodwill
associated with the Mark, nor in any other way (without our prior written consent) indicate that
we endorse the Merchant’s goods or services. The Merchant shall only use our Marks as
permitted by the Agreement and shall cease using our Marks upon termination of the
Agreement.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Card Acceptance :: Prohibited Uses of the Card

3.3 Prohibited Uses of the Card

Merchants must not accept the Card for any of the following:
• adult digital content sold via Internet Electronic Delivery,
• amounts that do not represent bona fide sales of goods or services (or, if applicable,
amounts that do not represent bona fide charitable contributions made) at the Merchant’s
Establishments,
• amounts that do not represent bona fide, direct sales by the Merchant’s Establishments to
Cardmembers made in the ordinary course of their business,
• amounts that represent repayment of a cash advance including, but not limited to, payday
loans, pawn loans or payday advances,
• cash or cash equivalent; for example, purchases of gold, silver, platinum and palladium
bullion and/or bars (collectible coins and jewelry are not prohibited), or virtual currencies
that can be exchanged for real currency (loyalty program currencies are not prohibited),
• Charges that the Cardmember has not specifically approved,
• costs or fees over the normal price of goods/services (plus applicable taxes) that the
Cardmember has not specifically approved,
• damages, losses, penalties, or fines of any kind,
• gambling services (including online gambling), gambling chips, or gambling credits; or
lottery tickets,
• unlawful/illegal activities, fraudulent business transactions, or when providing the goods or
services is unlawful/illegal (e.g., unlawful/illegal online internet sales of prescription
medications or controlled substances; sales of any goods that infringe the rights of a
Rights-holder under laws applicable to us, you, or the Cardmember),
• overdue amounts, or amounts covering returned, previously dishonored, or stop-payment
checks,
• sales made by third parties or Entities conducting business in other industries, or
• other items of which we notify the Merchant.
Merchants must not use the Card to verify a customer’s age.

3.4 Treatment of American Express Cardmember Information

Cardmember Information is confidential and the sole property of the Issuer, American Express
or its Affiliates.

Merchants generally must not disclose Cardmember Information, nor use nor store it, other
than to facilitate Transactions at their Establishments in accordance with the Agreement. For
more information, see Section 4.3, "Completing a Transaction at Point of Sale".

For more information about protecting Cardmember Information, see Chapter 8, "Protecting
Cardmember Information".

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Transaction Processing 4

4.1 The Many Types of Transactions

4.2 Transaction Process
4.3 Completing a Transaction at Point of Sale
4.4 Processing an In-person Charge
4.5 Customer Activated Terminals
4.6 Processing a Card Not Present Charge
4.7 Processing a Credit
4.8 Digital Wallet Payment
4.9 Return and Cancellation Policies
4.10 Corporate Purchasing Card Charges
4.11 Advance Payment Charges

4
4.12 Aggregated Charges
4.13 Delayed Delivery Charges
4.14 Recurring Billing Charges
4.15 Processing Prepaid Cards
4.16 Processing Travelers/Gift Cheques
4.17 Property Damages to Accommodations and other Rentals
4.18 Split Shipment Transactions
 Merchant Reference Guide - U.S.
Transaction Processing :: The Many Types of Transactions

4.1 The Many Types of Transactions

In today’s marketplace, point of sale Transactions encompass a wide variety of customer
options, including:
• in-store Transactions
• internet/e-commerce Transactions
• Application-initiated Transactions
• phone/mail order Transactions
• Customer Activated Terminal (CAT) Transactions
This chapter addresses Transaction processing and offers specific procedures for dealing with
various Transaction types.

4.2 Transaction Process

The first step in understanding the Card acceptance process is to understand the American
Express Transaction process. We will refer to this Transaction process at various points
throughout the Reference Guide.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

4.3 Completing a Transaction at Point of Sale

All valid Transactions begin with a Cardmember’s purchase at the point of sale. Whether the
physical Card is used to facilitate a Card Present Charge, or the Cardmember provides his or
her Cardmember Information over the phone, via mail order, or the internet, the Transaction
must not be completed without the Card and/or information provided by the Cardmember.

To accept the Card for Charges at an Establishment, at the point of sale, generally the Merchant
must clearly and conspicuously disclose all material terms of the sale and inform the
Cardmember at all points of interaction what Entity is making the sales offer so that he or she
can distinguish the Merchant from any other parties involved in the sales offer.

The Transaction Data a Merchant collects to facilitate the Charge must be, or have been,
provided directly to the Merchant by the Cardmember. Failure to meet this requirement may
subject the Merchant to data pass violation fees, as described in Subsection 12.2.5, "Data Pass
Violation Fee"

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Transaction Processing :: Processing an In-person Charge

4.4 Processing an In-person Charge

In-Person Charges refer to Charges in which the Card and Cardmember are present at the point
of sale. An example of this is when a Cardmember presents a Card to a Merchant at a retail
store.

There are two types of In-Person Charges:

• electronic Charges, which can be conducted in a variety of ways depending on the type of
Card presented.
• key-entered Charges.
Merchants must conduct In-Person Charges and follow Card acceptance procedures according
to the type of In-Person Charge and Card presented. For example, Merchants must:
• verify that the Card is not visibly altered or mutilated,
• capture Card Data,
• obtain an Authorization Approval,
• instruct the Cardmember to enter the PIN, if applicable, or obtain signature (optional)
(except for Prepaid Cards that do not show a name on their face),
• match the Card Number and Expiration Date on the Card to the same information on the
Charge Record,
• verify the Card’s Expiration Date, and
• validate the Card’s presence (key-entered Charges only).
If a Merchant chooses or is required by Applicable Law to obtain a Cardmember signature on a
manual imprint, printed, or electronic Card Present Charge, the Merchant must:
• Obtain signature and verify that the signature is identical to the name on the Card*, and
• Compare the signature (when obtained) on the Charge Record with the signature on the
Card.
* Except when the Cardmember name is not captured on the Charge Record or for Prepaid Cards that do
not show a name on their face.

This list is not exhaustive and we may, at our sole discretion, modify Card acceptance
procedures.

4.5 Customer Activated Terminals

We generally accept Charges for purchases at Customer Activated Terminals (CATs) or
payment kiosks.

4.6 Processing a Card Not Present Charge

Mail orders, telephone orders, and Internet Orders increase business opportunities, but such
Card Not Present Charges do not provide the opportunity to inspect the physical Card.

For Card Not Present Charges, the Merchant must create a Charge Record and ask the
Cardmember to provide the following:
• Card Number or Token, and
• Card or Token Expiration Date.
In addition, we also recommend that Merchants ask for:
• name as it appears on the Card,
• Cardmember’s full billing address, and
• ship-to address, if different from the Cardmember’s full billing address.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Transaction Processing :: Processing a Credit

Key-entered Charges are subject to a fee. See Subsection 12.2.2, "Authorization Fees".

If a Merchant accepts Card Present Transactions and also accepts payments via the internet,
the Merchant must notify American Express so that we may assign a separate Merchant
Number for the internet Transactions.

4.7 Processing a Credit

If you issue a Credit, we will not refund the Discount or any other fees or assessments
previously applied on the corresponding Charge.

4.8 Digital Wallet Payment

When presented with a Mobile Device for a Charge, Merchants must follow our requirements
specific to that type of Transaction including compliance with our most current contactless
POS System requirements.

4.9 Return and Cancellation Policies

The Merchant’s return and cancellation policies must be fair and clearly disclosed at the time of
purchase prior to completion of the Charge and in compliance with Applicable Law.

4.10 Corporate Purchasing Card Charges

In order to participate in our Corporate Purchasing Card (CPC) program (if applicable),
Merchants must capture additional or reformatted Card Data on the Charge Record, and
Transmission Data on the Transmissions, according to the Technical Specifications.

4.11 Advance Payment Charges

For certain purchases, Merchants may accept the Card for Advance Payment Charges. An
Advance Payment Charge is a Charge for which full payment is made in advance of the
Merchant providing the goods and/or rendering the services to the Cardmember.

4.12 Aggregated Charges

Merchants we classify in an internet industry may accept the Card for Aggregated Charges. An
Aggregated Charge combines multiple small purchases or refunds (or both) incurred on a Card
into one single Charge.

4.13 Delayed Delivery Charges

Merchants may accept the Card for Delayed Delivery Charges. A Delayed Delivery Charge is a
single purchase for which the Merchant must create and submit two separate Charge Records.
The first Charge Record is for the deposit or down payment and the second Charge Record is
for the balance of the purchase.

4.14 Recurring Billing Charges

Recurring Billing is an option offered to Cardmembers to make recurring Charges
automatically on their Card. The Recurring Billing Charges are for a product or service the
Cardmember agrees to pay periodically and automatically (e.g., membership fees to health
clubs, magazine subscriptions, and insurance premiums). If a Merchant offers Cardmembers
the option to make Recurring Billing Charges, the Merchant must clearly and conspicuously

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Transaction Processing :: Processing Prepaid Cards

disclose all material terms of the option including permission to receive updated Card account
information and all cancellation policies, obtain the Cardmember’s express written consent
prior to billing, and provide confirmation after the first Recurring Billing Charge. If the material
terms of the option change, the Merchant must notify the Cardmember and obtain express
written consent to the new terms.

If the Recurring Billing Charge amounts vary, the Merchant must offer the Cardmember the
right to receive notification of the amount and date of each Recurring Billing Charge.

Merchants that offer Cardmembers an option to make Recurring Billing Charges that include
an Introductory Offer, must also comply with the following requirements. Merchants must send
Cardmembers a confirmation notification in writing upon enrollment in the Introductory Offer
and send the Cardmembers a reminder notification in writing prior to applying the first
recurring billing charge.

4.15 Processing Prepaid Cards

Prepaid Cards are available for a variety of uses: gifting, travel, incentive, etc. All American
Express Prepaid Cards show the American Express “Blue Box” logo either on the face or back
of the Prepaid Card. Prepaid Cards may or may not be embossed. Most Prepaid Cards can be
used for both in-store and online purchases.

Prepaid Cards are valid through the date on the Card. Follow the relevant Card acceptance
procedures when presented with a Prepaid Card at the point of sale just like any other Card. A
Prepaid Card must be tendered for an amount that is no greater than the funds available on the
Card.

4.16 Processing Travelers/Gift Cheques

American Express Travelers Cheques, Cheques for Two, and Gift Cheques are easy to accept
provided that the cheque is an authentic American Express Travelers Cheque.

Businesses can accept these Cheques for payment. Merchants can deposit Travelers Cheques,
Cheques for Two and Gift Cheques directly into their Bank Account as they never expire.

American Express Travelers Cheques are a widely used and recognized travel currency. If they
are ever lost or stolen, they can be replaced quickly and easily, almost anywhere in the world,
usually within twenty-four (24) hours.

4.17 Property Damages to Accommodations and other Rentals

Merchants we classify in a lodging accommodation, cruise line accommodations, trailer parks
and campground rental, motor home rental, boat rental, aircraft rental, bicycle rental,
motorcycle rental, or equipment rental industry may accept the Card to pay for Property
Damage Fees and/or smoking fees. Cardmembers must expressly consent to the charges and
other conditions apply.

4.18 Split Shipment Transactions

A split shipment Transaction occurs when a Cardmember makes a single purchase of
individually priced goods and the goods are delivered to the Cardmember in multiple
shipments. Unit prices and items sold as a set must not be billed as separate Charges. You may
obtain a single Authorization and submit multiple Charge Records for the purpose of
completing a split shipment Transaction.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Authorization 5

5.1 Introduction
5.2 Transaction Process
5.3 The Purpose of Authorization
5.4 Authorization Time Limit
5.5 Floor Limit
5.6 Authorization Process
5.7 Possible Authorization Responses
5.8 Obtaining an Authorization
5.9 Card Identification (CID) Number
5.10 Authorization Reversal

5
 Merchant Reference Guide - U.S.
Authorization :: Introduction

5.1 Introduction
The payment card industry devotes significant amounts of time and resources to developing
Authorization systems and decision models in an effort to mitigate the financial losses.

Every Transaction begins and ends with the Cardmember. Between the time the Cardmember
presents the Card for payment and receives the goods or services, however, a great deal of data
is exchanged, analyzed and processed. A process that literally takes seconds at the point of
sale is actually a highly complex approach to analyzing each Transaction.

5.2 Transaction Process

For all Charges, Merchants must initiate an Authorization. The Authorization process begins
when a Merchant provides an Authorization request to us. After requesting Authorization,
Merchants receive an Authorization response, which they use, in part, to determine whether to
proceed with the Charge.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

5.3 The Purpose of Authorization

The purpose of an Authorization is to provide the Merchant with information that will help them
to determine whether or not to proceed with a Charge.

For every Charge, the Merchant is required to obtain an Authorization Approval. The
Authorization Approval must be for the full amount of the Charge except for Merchants that we
classify in the restaurant industry and certain Charges from Merchants we classify in the cruise
line, lodging, vehicle rental, taxicab and limousine industries, and Card Not Present Retail and
Grocery.

An Authorization Approval does not guarantee that (i) the person making the Charge is the
Cardmember, (ii) the Charge is in fact valid or bona fide, (iii) we will accept the Charge, (iv) the
Merchant will be paid for the Charge, (v) the Merchant will not be subject to a Chargeback, or
(vi) the Charge you submit will not be rejected.

5.4 Authorization Time Limit

An Authorization Approval is valid for seven (7) days, with limited exceptions.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Authorization :: Floor Limit

5.5 Floor Limit

We maintain a zero-dollar Floor Limit on all Charges for our Merchants in the U.S., Puerto Rico,
the U.S. Virgin Islands, or other U.S. territories and possessions. This means that we require an
Authorization on all purchases, regardless of the amount.

5.6 Authorization Process

The The POS The Network The Issuer
Cardmember System sends the Approves or
provides you captures the Approval declines the
with the Card or Card request to the request.
the Card Information and Issuer.
Information. transfers it to
the American
Express
Network.

Cardmember Transaction Network Issuer

Upon receiving The POS The American The Issuer

the decision of System Express communicates
the Approval or displays the Network relays the Approval or
decline of the Approval or the information decline back to
request, you will decline of the back to the POS the American
be able to request. System. Express
complete or Network.
deny the
Transaction and
inform the
Cardmember.

5.7 Possible Authorization Responses

Responses to a Merchant’s requests for Authorization are generated by Issuers and
transmitted by us to the Merchant. The following are among the most commonly generated
responses to a request for Authorization. The exact wording will vary.
• Approved
• Partially Approved
• Declined or Card Not Accepted
• Pick up

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Authorization :: Obtaining an Authorization

5.8 Obtaining an Authorization

Generally, Establishments must obtain an Authorization.

Merchants must ensure that all Authorization requests comply with the Technical
Specifications (see Section 2.5, "Compliance with the Technical Specifications"). If the
Authorization request does not comply with the Technical Specifications, we may reject the
Submission, we may exercise Chargeback, and we will have the right to assess non-compliance
fees (see Subsection 12.2.3, "Submission and Settlement Fees").

Occasionally, obtaining an Authorization may not be possible (e.g., due to POS Systems
problems, System Outages and other disruptions of an electronic Charge). In these instances,
the Merchant must validate the Card’s presence and obtain a Voice Authorization.

If a Merchant’s electronic POS System is unable to reach our Authorization system, or a

Merchant does not have an electronic POS System, the Merchant may call us for an
Authorization. We may assess a fee for each Charge for which a Merchant requests such Voice
Authorization. See Subsection 12.2.2, "Authorization Fees".

5.9 Card Identification (CID) Number

The Card Identification (CID) number provides an extra level of Cardmember validation and is
part of the Authorization process. The CID number is printed on the Card. The number is four
digits.

If, during the Authorization, a response is received that indicates the CID number given by the
person attempting the Charge does not match the CID number that is printed on the Card, re-
prompt the customer at least one more time for the CID number. If it fails to match again, the
Merchant should follow its internal store policies.

Note: CID numbers must not be stored for any purpose. They are available for real time
Charges only. See Chapter 8, "Protecting Cardmember Information".

5.10 Authorization Reversal

Merchants may reverse an Authorization for a corresponding Charge by initiating an
Authorization reversal.

After a Charge Record has been submitted to us, however, the Authorization cannot be
canceled or changed.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Submission 6

6.1 Introduction
6.2 Transaction Process
6.3 Purpose of Submission
6.4 Submission Process
6.5 Submission Requirements – Electronic
6.6 Submission Requirements – Paper
6.7 How to Submit

6
 Merchant Reference Guide - U.S.
Submission :: Introduction

6.1 Introduction
Since payment cannot occur until the Transactions are submitted, submitting Transactions
daily is encouraged even though the Merchant has up to seven (7) days to do so.

6.2 Transaction Process

Merchants must submit Transactions to us, directly or through their Processor, usually at the
end of a day.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

6.3 Purpose of Submission

After we receive the Submission, either directly from a Merchant or from its Processor, we will
process it and settle with the Merchant according to its payment plan, speed of payment and
payment methods, as described in Chapter 7, "Settlement".

6.4 Submission Process

After the Merchant collects the Transactions during the business day, we encourage the
Merchant to submit them to us daily, directly or through a Processor.

Acquirer
Merchant

Processor

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Submission :: Submission Requirements – Electronic

Following the instructions displayed on the POS System, the Merchant can submit
Transactions to be processed and Settled.

Payments cannot occur until the Transactions are Submitted, received, and processed by us.
Depending on the business model, the Transactions will be Submitted directly to us or through
your Processor.

6.5 Submission Requirements – Electronic

Merchants must submit Transactions electronically except under extraordinary circumstances.

When Merchants transmit Transactions electronically, they must still complete and retain
Charge and Credit Records.

We may not accept Submissions that do not comply with the Merchant Regulations, including
the Technical Specifications and have the right to assess non-compliance fees. See
Subsection 12.2.3, "Submission and Settlement Fees".

6.6 Submission Requirements – Paper

If under extraordinary circumstances (e.g., outdoor market places, taxis and limousine
services), Merchants submit Transactions on paper, they must do so in accordance with our
instructions.

Fees may apply if the Merchant submits Transactions on paper. See Subsection 12.2.3,
"Submission and Settlement Fees".

6.7 How to Submit

In many cases, a Merchant’s POS System automatically processes the Transactions in Batches
at the end of the day.

On busy days, a Merchant’s Transaction volume may be greater than its POS System’s storage
capability. Merchants should work with their Terminal Provider to determine storage capacity,
then determine if Transactions will need to be submitted more than once each day (e.g., submit
a Batch at mid-day and again in the evening).

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Settlement 7

7.1 Transaction Process

7.2 Settlement Amount
7.3 Discount/Discount Rate
7.4 Method of Payment
7.5 Speed of Payment
7.6 Payment Options
7.7 Reconciliation Options
7.8 Payment Errors or Omissions

7
 Merchant Reference Guide - U.S.
Settlement :: Transaction Process

7.1 Transaction Process

Once we receive a Submission file from the Merchant, we begin the process of settling. The
Settlement amount is determined by totaling the Submissions adjusted for applicable debits
and credits.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

7.2 Settlement Amount

The Merchant’s Settlement amount will be the face amount of Charges submitted from its
Establishments, pursuant to the Agreement, less all applicable deductions, rejections, and
withholdings, which include:
• Discount - as set forth in the Agreement
• Amounts the Merchant owes us or our Affiliates - as set forth in the Agreement
• Amounts for which we have Chargebacks
• Credits that the Merchant submits

7.3 Discount/Discount Rate

The Discount is an amount we charge a Merchant for accepting the Card.

In addition to the Discount, we may charge the Merchant additional fees and assessments (see
Chapter 12, "Merchant Fees" or as otherwise provided to you in writing by us). We may adjust
any of these amounts and may change any other amount we charge the Merchant for
accepting the Card.

7.4 Method of Payment

Merchants must participate in our electronic pay program. We will charge Merchants a fee for
paying them by check. See Subsection 12.2.3, "Submission and Settlement Fees". We will send
payments for Charges from the Merchant’s Establishments in the United States electronically
via ACH to a Bank Account that the Merchant designates at a bank in the United States that
participates in ACH.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Settlement :: Speed of Payment

7.5 Speed of Payment

We offer a variety of different payment plans. Merchants may choose one of the following plans
based on eligibility:
• One day payment plan
• Three day payment plan
• Fifteen day payment plan
• Thirty day payment plan

7.6 Payment Options

American Express offers Merchants two main payment options.

Net Pay Gross Pay

Merchant is paid the full amount of the Merchant is paid the full amount of the
Charges submitted less the Discount and Charges submitted, and then a second
other applicable amounts pursuant to the Adjustment occurs to deduct the Discount
Agreement. and other applicable amounts pursuant to the
Agreement.

7.7 Reconciliation Options

Monthly electronic statements are the default reconciliation format provided by American
Express. In addition, raw data reconciliations and paper statements can be used to reconcile
your Merchant Account. Each format can be used separately or in combination with the other
formats. We may assess a fee for each paper statement requested. See Subsection 12.2.3,
"Submission and Settlement Fees".

7.8 Payment Errors or Omissions

Merchants must notify us in writing of any error or omission in respect of their Discount or
other fees or payments for Charges, Credits or Chargebacks within ninety (90) days of the date
of the statement containing such claimed error or omission.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Protecting Cardmember
Information 8
8.1 Data Security Operating Policy
8.2 Targeted Analysis Program (TAP)
8.3 Standards for Protection of Cardmember Information
8.4 Data Incident Management Obligations
8.5 Indemnity Obligations for a Data Incident
8.6 Periodic Validation of Merchant Systems

8
 Merchant Reference Guide - U.S.
Protecting Cardmember Information :: Data Security Operating Policy

8.1 Data Security Operating Policy

As a leader in consumer protection, American Express has a long-standing commitment to
protect Cardholder Data and Sensitive Authentication Data, ensuring that it is kept secure.

Compromised data negatively affects consumers, Merchants, and Issuers. Even one incident
can severely damage a company’s reputation and impair its ability to effectively conduct
business. Addressing this threat by implementing security operating policies can help improve
customer trust, increase profitability, and enhance a company’s reputation.

The requirements of our Data Security Operating Policy apply to all equipment, systems, and
networks and their components on which encryption keys, Cardholder Data, or Sensitive
Authentication Data (or a combination of each) are stored, processed, or transmitted.

8.2 Targeted Analysis Program (TAP)

Merchants must, and they must cause their Covered Parties to, evaluate and remediate
security gaps in Cardholder Data Environment (CDE) upon notification, from American
Express, of a potential Cardholder Data compromise. Examples of Cardholder Data
compromise include, but are not limited to:
• Common Point of Purchase (CPP): American Express Cardmembers report fraudulent
Transactions on their Card accounts that are identified and determined to have originated
from making purchases at your Establishments.
• Card Data found: American Express Card and Cardholder Data found on the world wide
web linked to Transactions made at your Establishments.
• Malware suspected: American Express suspects that your business is using software
infected with or vulnerable to malicious code.
American Express has the right to impose non-compliance fees, withhold payment, and/or
terminate the Agreement if Merchant does not meet obligations.

The fees for TAP non-compliance are outlined in Chapter 12, "Merchant Fees".

8.3 Standards for Protection of Cardmember Information

Merchants must, and they must cause their Covered Parties, to:
• store Cardholder Data only to facilitate American Express Card Transactions in accordance
with, and as required by, the Agreement,
• comply with the current PCI DSS and other PCI SSC Requirements applicable to your
processing, storing, or transmitting of Cardholder Data or Sensitive Authentication Data, no
later than the effective date for implementing that version of the applicable PCI SSC
Requirement,
• use, when deploying new or replacement PIN Entry Devices or Payment Applications (or
both) in attended locations, only those that are PCI-Approved.

8.4 Data Incident Management Obligations

Merchants must notify American Express immediately and in no case later than seventy-
two (72) hours after discovery of a Data Incident.

To notify American Express, please contact the American Express Enterprise Incident
Response Program (EIRP) toll free at 888.732.3750 (U.S. only), or at 1.602.537.3021
(International), or email at [email protected].

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 Merchant Reference Guide - U.S.
Protecting Cardmember Information :: Indemnity Obligations for a Data Incident

8.5 Indemnity Obligations for a Data Incident

Under the Agreement, Merchants’ indemnity obligations to American Express for a Data
Incident are determined by a formula we provide for calculating compensation for costs and
losses resulting from the Data Incident, including a non-compliance fee (for additional
information, see Subsection 12.2.4, "Data Security Fees") unless:
• the Merchant notified American Express according to the requirements in Section 8.4,
"Data Incident Management Obligations",
• the Merchant was in compliance at the time of the Data Incident with the PCI DSS (as
determined by the PFI’s investigation of the Data Incident), and
• the Data Incident was not caused by the Merchant’s wrongful conduct or that of its Covered
Parties.

8.6 Periodic Validation of Merchant Systems

Certain Merchants must take certain actions to demonstrate compliance with the PCI DSS,
annually and quarterly.

American Express has the right to impose non-validation fees on Merchants and terminate the
Agreement if the Merchant does not fulfill these requirements or fails to provide the mandatory
Validation Documentation to American Express by the applicable deadline. The fees for non-
validation are outlined in Chapter 12, "Merchant Fees".

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Fraud Prevention 9

9.1 Introduction
9.2 Transaction Process
9.3 Strategies for Deterring Fraud
9.4 Card Acceptance Policies
9.5 Card Security Features
9.6 Recognizing Suspicious Activity
9.7 Fraud Mitigation Tools
9.8 Verification Services
9.9 American Express SafeKey

9
 Merchant Reference Guide - U.S.
Fraud Prevention :: Introduction

9.1 Introduction
We offer a full suite of premium value tools that can help to mitigate the chances of fraud on
American Express Cards and reduce this cost to a Merchant’s business.

9.2 Transaction Process

Our primary strategy for combating fraudulent Card use is to address it at the point of
Authorization.

While fraud usually is thought of as a deceptive act at the point of sale, detection can actually
occur during any stage in the Transaction process.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

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 Merchant Reference Guide - U.S.
Fraud Prevention :: Strategies for Deterring Fraud

9.3 Strategies for Deterring Fraud

We recommend implementing multiple layers of fraud protection to help secure the Merchant’s
business. These layers may include a combination of the Merchant’s point of sale procedures
and controls as well as implementation of fraud mitigation tools.

Merchant Internal
Controls

Adherence to Card
Acceptance Policies

Scrutiny of Card
Security Features Criminals
attempt to
Recognition of circumvent
Suspicious the Merchant’s
Behavior control systems
and procedures
Fraud Mitigation
Tool #1

Fraud Mitigation
Tool #2

Fraud Mitigation
Tool #3, 4, 5, etc.

American Express is committed to working with Merchants to deploy tools that can help reduce
the likelihood that fraudulent Charges will be Approved. The implementation and use of the
strategies and tools, however, does not guarantee that (i) the person making the Charge is the
Cardmember, (ii) the Charge is in fact valid or bona fide, (iii) the Merchant will be paid for the
Charge, or (iv) the Merchant will not be subject to a Chargeback.

9.4 Card Acceptance Policies

A critical component in a Merchant’s overall fraud mitigation strategy is to follow our Card
acceptance procedures. The additional layers of fraud mitigation mentioned previously can
supplement this line of defense.

9.5 Card Security Features

In many cases, the physical appearance of the Card will offer the most obvious clues of
fraudulent activity.

Our Card security features are designed to help Merchants assess whether a Card is authentic
or has been altered. Ensure that all personnel are familiar with our Card’s security features so
they can identify potentially compromised Cards.

9.6 Recognizing Suspicious Activity

Diligently scrutinizing behaviors and circumstances can help prevent Merchants from being
victimized by fraud.

Merchants must always be aware of circumstances that may indicate a fraudulent scheme or
suspicious behavior that may flag a fraudulent Cardmember.

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 Merchant Reference Guide - U.S.
Fraud Prevention :: Fraud Mitigation Tools

Suspicious Behavior
A suspicious situation may arise, causing the Merchant to question the authenticity of the
Card, or the legitimacy of the person presenting it.

If a Merchant suspects Card misuse, they should follow their internal store policies. Merchants
should never put themselves or their employees in unsafe situations, nor physically detain or
harm the holder of the Card.

9.7 Fraud Mitigation Tools

We offer fraud mitigation tools for both Card Present and Card Not Present Transactions to help
verify that they are valid. These tools help Merchants mitigate the risk of fraud at the point of
sale, but are not a guarantee that (i) the person making the Charge is the Cardmember, (ii) the
Charge is in fact valid or bona fide, (iii) the Merchant will be paid for the Charge, or (iv) the
Merchant will not be subject to a Chargeback.

9.8 Verification Services

We also offer tools that help Merchants evaluate the validity of a Charge by comparing
information provided by the customer at the point of sale with information on file with the
Issuer. These verification tools are available for both Card Present and Card Not Present
Charges, and can be used in multiple layers simultaneously to help the Merchant mitigate the
risk of fraud. However, our verification tools are not a guarantee that (i) the person making the
Charge is the Cardmember, (ii) the Charge is in fact valid or bona fide, (iii) the Merchant will be
paid for the Charge, or (iv) the Merchant will not be subject to a Chargeback.

9.9 American Express SafeKey

The American Express SafeKey® Program (the AESK program) enables Merchants to verify
Cardmembers during the online authentication process in order to help reduce the likelihood of
American Express Card fraud.

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Risk Evaluation 10

10.1 Introduction
10.2 Prohibited and Restricted Merchants
10.3 Monitoring
10.4 Consumer Protection Monitoring Program

10
 Merchant Reference Guide - U.S.
Risk Evaluation :: Introduction

10.1 Introduction
Merchants understand the hard work and dedication it takes to keep a business running. At
American Express, we also work hard to maintain our business and uphold our reputation as a
world-class global payments and network company. Part of our regimen is to evaluate
Merchants to ensure compliance with our policies and procedures, in addition to assessing any
potential risk to our business.

10.2 Prohibited and Restricted Merchants

Some Merchants, and/or some of their Establishments, are not eligible (or may become
ineligible) to accept the Card. We may suspend acceptance of Cards by you or any of your
Establishments or terminate the Agreement (including immediate termination without prior
notice to you) if we determine or have reason to believe, in our sole discretion, that the
Merchant is performing a prohibited activity, or that the Merchant is failing to comply with our
policies and procedures and/or the Merchant’s actions or behaviors (or both) pose any
potential risk to our business.

10.3 Monitoring
After a Merchant joins our Network, we monitor to identify potential risks, assess financial
status and compliance with the Agreement.

Based on the results of our monitoring, we reserve the right to take action to mitigate our risk,
including one or more of the following (in our sole judgment):
• requesting information about the Merchant’s finances and operations,
• instituting Card acceptance restrictions,
• exercising Chargeback, rejecting Charges or withholding Settlements,
• charging fees or assessments to the Merchant Account,
• requiring corrective action by the Merchant,
• terminating any Establishment’s Card acceptance privileges or suspending those privileges
until the risk has subsided, or
• terminating the Agreement and the Merchant Account.

10.4 Consumer Protection Monitoring Program

American Express monitors the Network for fraudulent, deceptive, and unfair practices relating
to the sale, advertising, promotion, or distribution of goods or services to consumers. If we
determine or have reason to believe, in our sole discretion, that a Merchant engages or has
engaged (or knowingly participates or knowingly has participated) in such fraudulent,
deceptive, or unfair practices, we may place the Merchant in our Consumer Protection
Monitoring Program.

If a Merchant is placed in the Consumer Protection Monitoring Program, we may suspend or

refuse to allow Card acceptance at an Establishment, or terminate the Agreement.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
Chargebacks and Inquiries 11

11.1 Introduction
11.2 Transaction Process
11.3 Disputed Charge Process
11.4 Requesting a Chargeback Reversal
11.5 Resubmission of Disputed Charge
11.6 Compelling Evidence
11.7 Substitute Charge Records
11.8 Deadline for Responding
11.9 Cardmember Re-disputes
11.10 Chargeback and Inquiry Monitoring
11.11 How We Chargeback

11
11.12 Chargeback Programs
11.13 Ways to Receive Chargebacks and Inquiries
11.14 Response Methods
 Merchant Reference Guide - U.S.
Chargebacks and Inquiries :: Introduction

11.1 Introduction
This chapter provides an overview on how American Express processes Chargebacks and
Inquiries.

11.2 Transaction Process

Charges may be disputed for a variety of reasons. In general, most Disputed Charges stem
from:
• Cardmember dissatisfaction with some aspect of the purchase, (e.g., a failure to receive the
merchandise, duplicate billing of a Charge, incorrect billing amount),
• an unrecognized Charge where the Cardmember requests additional information, or
• actual or alleged fraudulent Transactions.
If a Cardmember disputes a Charge, American Express opens a case. We may also open cases
when Issuers or the Network initiates disputes. If a case is opened, we may initiate a
Chargeback to you immediately or send you an Inquiry.
You must not suggest or require Cardmembers to waive their right to dispute any Transaction.

DATA SECURITY

TRANSACTION PROCESS*

Cardmember Merchant Merchant American Cardmember A dispute

utilizes Card obtains submits Express receives case is
for payment Authorization Charge for settles with billing opened
Settlement Merchant statement

FRAUD DETECTION

* This graphic is for illustration purposes only and is not to be construed as limiting or waiving American
Express' rights with respect to Cardmember Information or other information.

11.3 Disputed Charge Process

With respect to a Disputed Charge:
• we may send the Merchant an Inquiry prior to exercising Chargeback, or
• if we determine we have sufficient information to resolve the Disputed Charge in favor of the
Cardmember, we will exercise our Chargeback rights.
We have Chargeback rights:
• whenever Cardmembers bring Disputed Charges, as described in this chapter, or have
rights under the Applicable Law or contract to withhold payments,
• in cases of actual or alleged fraud relating to Charges,
• if the Merchant does not comply with the Agreement (including omitting any Transaction
Data from Charge Submissions), even if we had notice when we paid the Merchant for a

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 Merchant Reference Guide - U.S.
Chargebacks and Inquiries :: Requesting a Chargeback Reversal

Charge that the Merchant did not so comply and even if the Merchant obtained
Authorization for the Charge in question, or
• as provided elsewhere in the Agreement.
All judgments regarding resolution of Disputed Charges are at our sole discretion.

11.4 Requesting a Chargeback Reversal

Merchants may request a Chargeback Reversal if they provide the required supporting
information. A Merchant must request the Chargeback Reversal no later than twenty (20) days
after the date of the Chargeback.

Additionally, if the Chargeback was preceded by an Inquiry, the Merchant must respond to the
Inquiry within twenty (20) days.

11.5 Resubmission of Disputed Charge

Merchants must not re-submit a Disputed Charge after it has been resolved in favor of the
Cardmember. We will Chargeback all such Disputed Charges that are resubmitted.

11.6 Compelling Evidence

Merchants may provide Compelling Evidence as support to demonstrate the Cardmember
participated in the Transaction, received goods or services, or benefited from the Transaction.

If we determine that the evidence satisfies the relevant section(s) of the Compelling Evidence
policy, the Issuer will review the Compelling Evidence with the Cardmember prior to making a
decision on the Chargeback reversal request. Merchants are expected to provide all available
information, and to only submit Compelling Evidence when the Merchant strongly believes the
Cardmember participated in the Transaction, received goods or services, or authorized the
Charge. Only Compelling Evidence that has been gathered in compliance with Applicable Law
may be relied upon.

11.7 Substitute Charge Records

In some cases, Merchants may provide a Substitute Charge Record as supporting
documentation for Card Not Present Charges in place of the original Charge Record. Merchants
must also provide any additional information requested in the Inquiry.

11.8 Deadline for Responding

Merchants must respond in writing within twenty (20) days following our Inquiry and provide
the requested information and other supporting documentation.

11.9 Cardmember Re-disputes

We may reinvestigate an Inquiry if a Cardmember provides new or additional information after
we review the initial supporting documentation regarding a Disputed Charge. In such case,
Merchants will be required to provide additional information to support the validity of the
Charge.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.
 Merchant Reference Guide - U.S.
Chargebacks and Inquiries :: Chargeback and Inquiry Monitoring

11.10 Chargeback and Inquiry Monitoring

American Express monitors the number of Chargebacks and Inquiries at all Merchants and
Establishments on the Network. If the number of Chargebacks and/or Inquiries at a Merchant
or Establishment is considered disproportionate, we may take action to protect our interests.

11.11 How We Chargeback

We may Chargeback by (i) deducting, withholding, recouping from, or otherwise offsetting
against our payments to a Merchant or debiting a Merchant’s Bank Account, or we may notify a
Merchant of its obligation to pay us, which it must do promptly and fully; or (ii) reversing a
Charge for which we have not paid the Merchant. In the event of a Chargeback, we will not
refund the Discount or any other fees or assessments, or we will otherwise recoup such
amounts from a Merchant. Our failure to demand payment does not waive our Chargeback
rights.

11.12 Chargeback Programs

Certain Chargebacks arise because Merchants are in the following Chargeback programs. We
may place Merchants in any of these programs any time during the term of the Agreement.
• Immediate Chargeback Program
• Partial Immediate Chargeback Program
• Fraud Full Recourse Program

11.13 Ways to Receive Chargebacks and Inquiries

American Express has a variety of options for the exchange of Inquiry information with
Merchants. In addition to the traditional paper by mail method, Merchants can receive and
respond to Chargebacks and Inquiries by accessing their Merchant Account online, our
preferred method of handling Chargebacks and Inquiries.

11.14 Response Methods

Merchants may respond to Inquiries via fax, mail, or by accessing their Merchant Account
online.

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Merchant Fees 12

12.1 Introduction
12.2 Types of Fees

12
 Merchant Reference Guide - U.S.
Merchant Fees :: Introduction

12.1 Introduction
Merchants must pay us the Discount and they may be subject to various other fees and
assessments. Some fees and assessments are for special products or services, while others
may be applied because of a Merchant’s non-compliance with our policies and procedures.
Many non-compliance fees and assessments can be avoided by correcting the actions that are
causing the Merchant not to be in compliance.

12.2 Types of Fees

The Agreement imposes various fees and assessments, examples of which are described in the
following tables.

12.2.1 Card Acceptance Discount Fees

Fee Description Amount

Discount A Discount is one of the amounts we charge a Varies
Merchant for accepting the Card. To learn more,
see Chapter 7, "Settlement". Merchants can
determine the Discount they pay by contacting
an American Express representative.

12.2.2 Authorization Fees

Fee Description Amount

Authorization A fee applied in each month after the following 0.10% of amount of the
Integrity fee Authorization without submission threshold has Approved Authorization
been met: If the monthly ratio of the total amount dollar volume plus $0.05
of Approved Charges that are not submitted, for each Approved
reversed or submitted late to total amount of Charge.
Approved Charges exceeds ten percent (10%) at For Merchants in the
an Establishment for three (3) consecutive industry classification of
months, we may charge, starting on the 3rd air charter or fractional
month, a fee for each Approved Charge for which aircraft, 1.0% of the
you do not submit, reverse or submit late (see Approved Authorization
Section 5.4, "Authorization Time Limit"). dollar volume for each
Approved Charge.

Gateway fee If a Merchant or its Covered Parties route Varies

Authorization requests to American Express
through the Visa or MasterCard processing
gateways, Visa and MasterCard charge us fees
for these Authorizations. We will pass their fees,
which may vary depending on Authorization
volume and other factors, on to the Merchant for
all of the Authorizations that are routed through
their gateways in a given month.

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 Merchant Reference Guide - U.S.
Merchant Fees :: Types of Fees

Fee Description Amount

Non-Swiped A fee which we may apply to certain Charges for Up to 0.30% of the face
Transaction fee which we did not receive both (i) the full Magnetic amount of each non-
(also referred Stripe or Chip Card Data from the Card/Devices, swiped Charge
to as the Card/ and (ii) the Magnetic Stripe or Chip Card Data
Device Not indicator.
Present fee)

Voice If the Merchant’s POS System is unable to reach $0.65 per Charge
Authorization our computer Authorization system for
fee Authorization, or the Merchant does not have
such POS Systems, the Merchant must request
Authorization for all Charges by calling American
Express. We may charge the Merchant a fee for
each Charge for which it requests Authorization
by telephone.

12.2.3 Submission and Settlement Fees

Fee Discount Amount

Check fee A fee may be assessed for each check that we $1.50 per check
issue/create.

Inbound fee A fee applied on any Charge made using a 1.00% of the face
Card that was issued outside the United amount of the
States*. Charge**

Monthly Gross Pay If the Merchant enrolls in the monthly gross 0.03% of the face
fee pay option, we may charge this fee if the amount of the Charge
amount of Charges exceeds a threshold
amount we determine.

Paper Statement fee If the Merchant chooses to receive paper Not to exceed $7.95
statements, we may charge a fee for each per statement
paper statement.

Paper Submission All paper Submissions are charged a higher Varies

Rate Discount Rate than electronic Submissions.

Technical A fee applied to any Transaction submitted to 0.75% of the face

Specifications Non- us that does not comply with the Technical amount of the
Compliance fee Specifications. This fee applies to Transaction
Transactions submitted via both a Processor
and direct to American Express.

* As used herein, the United States does not include Puerto Rico, the U.S. Virgin Islands, and other
U.S. territories and possessions.
**For Charges submitted on or after April 1, 2022, the fee will be 1.00% of the face amount of the Charge.

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 Merchant Reference Guide - U.S.
Merchant Fees :: Types of Fees

12.2.4 Data Security Fees

TAP Non-Compliance Fee

Level 1 Level 2
Merchant or Merchant or Level 3 or
Description Level 1 Level 2 Level 4
Service Service Merchant
Provider Provider
Non-compliance fee assessed when USD $25,000 USD $5,000 USD $1,000
TAP obligations are not satisfied within
45 days from the date of notification.

Non-compliance fee assessed when USD $35,000 USD $10,000 USD $2,500
TAP obligations are not satisfied within
90 days from the date of notification.

Non-compliance fee assessed when USD $45,000 USD $15,000 USD $5,000
TAP obligations are not satisfied within
120 days from the date of notification.
NOTE: Non-compliance fees may
continue to be applied monthly until
the obligations are met or TAP is
resolved.

If your TAP obligations are not satisfied, then American Express has the right to impose the
Non-compliance fees cumulatively, withhold payments, and/or terminate the Agreement.

Data Incident Non-Compliance Fee

Description Amount
A fee assessed to you in respect of a Data Not to exceed USD $100,000 per Data
Incident. See Chapter 8, "Protecting Incident
Cardmember Information"

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 Merchant Reference Guide - U.S.
Merchant Fees :: Types of Fees

Non-Validation Fee

Level 1 Merchant Level 2 Merchant Level 3 or

Description or Level 1 or Level 2 Level 4
Service Provider Service Provider Merchant
A non-validation fee will be USD $25,000 USD $5,000 USD $50
assessed if the Validation
Documentation is not
received by the first
deadline.

An additional non-validation USD $35,000 USD $10,000 USD $100

fee will be assessed if the
Validation Documentation is
not received within 60 days
of the first deadline.

An additional non-validation USD $45,000 USD $15,000 USD $250

fee will be assessed if the
Validation Documentation is
not received within 90 days
of the first deadline, and
every 30 days thereafter.

If American Express does not receive your mandatory Validation Documentation within 90+
days of the first deadline, then American Express has the right to terminate the Agreement in
accordance with its terms as well as impose the foregoing non-validation fees cumulatively on
you.

See Chapter 8, "Protecting Cardmember Information"

12.2.5 Data Pass Violation Fee

Fee Discount Amount

Data Pass As described in Section 4.3, "Completing a Fee amounts range
Violation fee Transaction at Point of Sale", the Transaction from $2,500 to
Data collected to facilitate a Charge must have $50,000 (depending on
been provided directly by the Cardmember. If a the Merchant’s Charge
Merchant or Establishment violates this volume)
requirement, we may assess the Merchant data
pass violation fees.
At the time we determine the Merchant has
violated this provision, we will send a warning
and then final notice specifying a date for
correction and assess a fee based on the gross
Charge volume at the Merchant’s highest
Merchant Account level over a rolling twelve
(12) month period.

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 Merchant Reference Guide - U.S.
Merchant Fees :: Types of Fees

12.2.6 Excessive Chargeback Fee

Fee Discount Amount

Excessive A fee applied in each month after the following $25 per Chargeback
Chargeback fee “excessive chargeback” threshold has been (less Chargeback
met: in any three (3) consecutive months, the Reversals) over the
monthly ratio of Chargebacks (less Chargeback 1 percent ratio
Reversals) to gross Charges (less Credits) at an
Establishment exceeds one (1) percent. For
information about Disputed Charge monitoring,
see Section 11.10, "Chargeback and Inquiry
Monitoring".

12.2.7 American Express Merchant Regulations Fee

Fee Discount Amount

Merchant A fee for each copy of the Merchant Regulations Paper copy $22.50
Regulations fee the Merchant orders from us. plus shipping and
handling

CD-ROM copy $8.00

plus shipping and
handling

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Glossary

Adjustment
An American Express credit or debit to the Merchant Account.

Advance Payment Charge

A Charge for which full payment is made in advance of the Merchant providing the goods and/or
rendering the services to the Cardmember.

Affiliate
Any Entity that controls, is controlled by, or is under common control with either party, including its
subsidiaries. As used in this definition, “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of an Entity, whether through
ownership of voting securities, by contract, or otherwise. For the avoidance of doubt, but not by way of
limitation, the direct or indirect ownership of more than 50% of (i) the voting securities or (ii) an
interest in the assets, profits, or earnings of an Entity shall be deemed to constitute “control” of the
Entity.

Aggregated Charge
A Charge that combines multiple small purchases or refunds (or both) incurred on a Card into a single,
larger Charge before submitting the Charge for payment.

Agreement
The agreement governing a Merchant’s acceptance of the Card.

American Express
American Express Travel Related Services Company, Inc., a New York corporation.

American Express Brand

The American Express name, trademarks, service marks, logos, and other proprietary designs and
designations and the imagery owned by American Express or an American Express Affiliate and the
goodwill associated with all of the foregoing and with all the goods and services now and in the future
provided, marketed, offered, or promoted by American Express or an American Express Affiliate.

American Express Card or Cards

(i) Any card, account access device, or payment device or service bearing our or our Affiliates’ Marks
and issued by an Issuer or (ii) a Card Number.

American Express Network or Network

The Network of Merchants that accept Cards and the operational, service delivery, systems, and
marketing infrastructure that supports this Network and the American Express Brand.

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 Merchant Reference Guide - U.S.
Glossary

American Express Quick Chip

A software solution that modifies the EMV®1 transaction flow for processing of American Express
Cards, which allows a Chip Card to be inserted before the final Transaction amount is known, and does
not require the Card to remain in the reader during the online Authorization process.

American Express SafeKey (AESK)

American Express SafeKey is an industry standard authentication tool that is designed to provide
greater security for online Transactions.

Applicable Law
(i) Any law, statute, regulation, ordinance, or subordinate legislation in force from time to time to
which you or we or an Affiliate of either is subject, (ii) the common law as applicable to them from time
to time, (iii) any court order, judgment, or decree that is binding on them, and (iv) any directive, policy,
rule, or order that is binding on them and that is made or given by a regulator or other government or
government agency of any Territory, or other national, federal, commonwealth, state, provincial, or
local jurisdiction.

Approval/Approved
A message granting an Authorization in response to a request for Authorization from a Merchant,
consisting of an Approval or other indicator.

Application-Initiated Transaction
A Transaction initiated by an electronic device (including, but not limited to, a mobile telephone, tablet,
or wearable device) utilizing a merchant software application within the electronic device.

Assured Reservation Program

The Assured Reservation Program allows Cardmembers to contact a participating property or rental
agency to make an Assured Reservation and guarantee the reservation by giving their American
Express Card. The Assured Reservation Program is available to the following industries: hotel, trailer
park/campground, vehicle, aircraft, bicycle, boat, equipment, motor home, and motorcycle rentals.

Authorization/Authorized
The process by which a Merchant obtains an Approval for a Charge in accordance with the Agreement.

Bank Account
A deposit account (also known as a Demand Deposit Account, DDA or checking account) that a
Merchant holds at a bank or other financial institution.

Bank Identification Number (BIN)

A 6-digit number used on Cards to identify the Issuer of the Card and which serves as the first six
digits of the Card account number or Token.

Batch
A group of Transactions, including Charges and Credits, submitted to American Express, usually on a
daily basis.

1. EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere.
The EMV trademark is owned by EMVCo, LLC.

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Card
See "American Express Card or Cards".

Card Data
Card Data includes the following elements: Cardmember name, Card Number, Expiration Date,
Charge date, the amount of the Charge, the Approval, description of goods and services, Merchant
name, Merchant address, Merchant Number and if applicable the Establishment number,
Cardmember signature (if obtained), “No Refund” if the Merchant has a no refund policy and all other
information as required from time to time by us or Applicable Law.

Card Identification (CID) Number

A four-digit number printed on the Card. See Section 5.9, "Card Identification (CID) Number".

Card Not Present Charge

A Charge for which the Card is not presented at the point of sale (e.g., Charges by mail, telephone, fax
or the internet).

Card Number
The unique identifying number that the Issuer assigns to the Card when it is issued.

Card Present Charge

A Charge for which the physical Card and Cardmember are present at the point of sale, including In-
Person Charges and Charges made at CATs.

Cardholder Data
Has the meaning given in the then current Glossary of Terms for the PCI DSS.

Cardmember
An individual or Entity (i) that has entered into an agreement establishing a Card account with an
Issuer or (ii) whose name appears on the Card.

Cardmember Information
Any information about Cardmembers and Transactions, including, but not limited to, Transaction
Data, and Cardmember name, addresses, Card Numbers, and CID Numbers.

Charge
A payment or purchase made on the Card.

Charge Data
Data to be included in Submissions of Charge Records.

Charge Record
A reproducible (both paper and electronic) record of a Charge that complies with our requirements
and that contains the Card Number, Transaction date, dollar amount, Approval, Cardmember
signature (if applicable), and other information.

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Chargeback
When used as a verb, means (i) our reimbursement from a Merchant for the amount of a Charge
subject to such right, or (ii) our reversal of a Charge for which we have not paid the Merchant; when
used as a noun, means the amount of a Charge subject to reimbursement from a Merchant, or
reversal. (Chargeback is sometimes called “full recourse” or “Full Recourse” in our materials.)

Chargeback Reversal
Removal of a previously posted Chargeback.

Chip
An integrated microchip embedded on a Card containing Cardmember and account information.

Compelling Evidence
Additional types of documentation provided by the Merchant to demonstrate the Cardmember
participated in the Transaction, received goods or services, or benefited from the Transaction.

Consumer Protection Monitoring Program

Our program to monitor for fraudulent, deceptive, or unfair practices relating to the sale, advertising,
promotion, or distribution of goods or services to consumers. See Section 10.4, "Consumer Protection
Monitoring Program" for additional information.

Contactless
Technology enabling a Card or Mobile Device embedded with a radio frequency component (currently,
Expresspay) to communicate with a radio frequency-enabled POS System to initiate a Transaction.
See also “Expresspay”.

Corporate Purchasing Card (CPC)

The Corporate Purchasing Card program assists with procurement costs and enables streamlining of
the procurement process from sourcing and buying, to billing payment and reconciliation.

Covered Parties
Any or all of your employees, agents, representatives, subcontractors, Processors, Service Providers,
providers of your point-of-sale (POS) equipment or systems, or payment processing solutions,
Entities associated with your American Express Merchant Account, and any other party to whom you
may provide Cardholder Data or Sensitive Authentication Data (or both) access in accordance with
the Agreement.

Credit
The amount of the Charge that the Merchant refunds to Cardmembers for purchases or payments
made on the Card.

Credit Record
A record of Credit that complies with our requirements.

Customer Activated Terminal (CAT)

An unattended POS System (e.g., gasoline pump, vending machine, check-out kiosk).

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Data Incident
An incident involving the compromise or suspected compromise of American Express encryption
keys, or at least one American Express Card account number in which there is:
• unauthorized access or use of Encryption Keys, Cardholder Data, or Sensitive Authentication Data
(or a combination of each) that are stored, processed, or transmitted on equipment, systems,
and/or networks (or the components thereof) of yours or the use of which you mandate;
• use of such Encryption Keys, Cardholder Data, or Sensitive Authentication Data (or a combination
of each) other than in accordance with the Agreement; and/or
• suspected or confirmed loss, theft, or misappropriation by any means of any media, materials,
records, or information containing such Encryption Keys, Cardholder Data, or Sensitive
Authentication Data (a combination of each).

Data Security Operating Policy (DSOP)

The American Express data security policy, as described in Chapter 8, "Protecting Cardmember
Information".

Decline
A message from us denying the Merchant’s request for Authorization.

Delayed Delivery Charge

A single purchase for which the Merchant must create and submit two separate Charge Records. The
first Charge Record is for the deposit or down payment and the second Charge Record is for the
balance of the purchase.

Discount/Discount Rate
An amount that we charge a Merchant for accepting the Card, which amount is a percentage of the
face amount of the Charge that the Merchant submits, or a flat per-Transaction fee, or a combination
of both. See Subsection 12.2.1, "Card Acceptance Discount Fees".

Disputed Charge
A Charge about which a claim, complaint, or question has been brought.

Entity
A corporation, partnership, sole proprietorship, trust, association, or any other legally recognized
entity or organization.

Establishments
Any or all of a Merchant’s and its Affiliates’ locations, outlets, websites, online networks, and all other
methods for selling goods and services, including methods that a Merchant adopts in the future.

Estimated Authorization
An Authorization for an estimated amount that differs from the final submission amount.

Expiration Date
The month and year on which a Card expires (sometimes referred to as “valid thru” or ”active thru”
date).

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Expresspay
An American Express program that enables Contactless transactions.

Floor Limit
A monetary threshold amount for a single Charge, at or above which the Merchant must obtain an
Authorization before completing the Charge.

Fraud Full Recourse Program

One of our Chargeback programs. See Section 11.12, "Chargeback Programs" for additional
information.

Immediate Chargeback Program

One of our Chargeback programs. See Section 11.12, "Chargeback Programs" for additional
information.

In-Person Charge
A Card Present Charge excluding Charges made at CATs (e.g., a Charge taken at a Merchant attended
retail location where the Card is swiped, read by a contactless reader, inserted into a Chip Card reader
or manually key-entered).

Inquiry
Our request for information about a Disputed Charge.

Internet Electronic Delivery

Delivery of goods or services purchased on the internet via an internet download or another file
transfer process (e.g., images or software download).

Internet Order
Card payment information that is taken via the World Wide Web, online (usually via a website payment
page), email, intranet, extranet, or other similar network in payment for merchandise or services.

Introductory Offer
A free or reduced cost trial, promotion, or other similar offer for a limited period of time that allows
Cardmembers to try a product or service before the Card is billed for the regular price of the product
or service.

Issuers
Any Entity (including American Express and its Affiliates) licensed by American Express or an
American Express Affiliate to issue Cards and to engage in the Card issuing business.

Magnetic Stripe
A stripe on the back of a Card that contains Cardmember and account information in machine
readable form.

Marks
Names, logos, service marks, trademarks, trade names, taglines, or other proprietary designs or
designations.

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Merchant
Any seller of goods or services, non-profit, or government Entity that enters into an Agreement with
American Express or its licensees wherein the seller agrees to (i) permit any Cardmember to charge
purchases of goods and services at or with such Merchant by means of the Card and (ii) transfer
Transactions to American Express or its licensee. This term includes all Establishments (sometimes
called “Service Establishments” or “SEs” in our materials).

Merchant Account
An account established by us upon entering into an Agreement with a Merchant.

Merchant Interactive (MI)

Our online tool that allows for reconciliation of payment, facilitates the resolution of Inquiries and
Disputed Charges and provides Merchant reporting or, more generally, access to your Merchant
Account online at www.americanexpress.com/merchant.

Merchant Number
A unique number we assign to the Merchant’s Establishment.

Mobile Device
An Issuer approved and American Express recognized electronic device (including, but not limited to,
a mobile telephone).

Mobile Point of Sale (MPOS)

A generic term for a system comprising of a commercial off-the-shelf mobile computing device with
cellular or Wi-Fi data connectivity (such as a phone, tablet, or laptop) that may be used in conjunction
with a Card-reading peripheral to accept contact and/or Contactless Transactions.

Network
See “American Express Network or Network“.

Non-Credit Payment Forms

Any form of payment other than a (i) general purpose credit or charge card; or (ii) payment card brand
name that references both general purpose credit or charge cards and debit cards, such as “Visa” or
“MasterCard.”

Other Payment Products

Any charge, credit, debit, stored value, prepaid, or smart cards, account access devices, or other
payment cards, services, or products other than the Card.

Partial Immediate Chargeback Program

One of our Chargeback programs. See Section 11.12, "Chargeback Programs" for additional
information.

Payment Card Industry Data Security Standard (PCI DSS)

The Payment Card Industry Data Security Standard, which is available at
www.pcisecuritystandards.org.

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Payment Card Industry Security Standards Council (PCI SSC)

Requirements
The set of standards and requirements related to securing and protecting payment Card Data,
including the PCI DSS and PA DSS, available at www.pcisecuritystandards.org.

Personal Identification Number (PIN)

A secret code for use with one or more American Express Network, Acquirer, or Issuer systems that is
used to authenticate the user (e.g., a Cardmember) to that system.

Point of Sale (POS) System

An information processing system or equipment, including a terminal, personal computer, electronic
cash register, contactless reader, Mobile Point of Sale (MPOS), or payment engine or process, used by
a Merchant, to obtain Authorizations or to collect Transaction Data, or both.

Prepaid Card
A Card that is marked “Prepaid” or bearing such other identifiers used by American Express from time
to time.

Processor
A service provider to Merchants who facilitates Authorization and Submission processing to the
Network.

Recurring Billing
An option offered to Cardmembers to make recurring Charges automatically on their Card (e.g.,
membership fees to health clubs, magazine subscriptions, and insurance premiums).

Rights-holder
A natural or legal person or Entity having the legal standing and authority to assert a copyright or
trademark right.

Sensitive Authentication Data

Has the meaning given in the then current Glossary of Terms for the PCI DSS.

Settlement
The process by which we compile the Merchant’s debits and credits to calculate a net amount that will
be applied to the Merchant’s Bank Account (sometimes called “deposit” or “Deposit” in our
materials).

Submission
The collection of Transaction Data that the Merchant sends to us.

Substitute Charge Record

A document created from original Transaction data.

System Outage
Interruption of either Merchant or American Express Network systems or services (e.g., computer
system failure, telecommunications failure, or regularly scheduled downtime).

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Technical Specifications
The set of mandatory, conditional, and optional requirements related to connectivity to the Network
and electronic Transaction processing, including Authorization and Submission of Transactions, which
we may update from time to time.

Terminal Provider
The Processor, vendor or company that provides the Merchant’s POS System.

Token
A surrogate value that replaces the Card Number.

Transaction
A Charge or Credit completed by the means of a Card.

Transaction Data
All information required by American Express evidencing one or more Transactions, including
information obtained at the point of sale, information obtained or generated during Authorization and
Submission, and any Chargeback.

Transmission
A method of sending Transaction Data to American Express, whereby Transaction Data is transmitted
electronically over communication lines.

Transmission Data
The same as Card Data except for the requirements to include: Cardmember name, Expiration Date,
the Cardmember’s signature (if obtained); and the words “No Refund” if the Merchant has a no refund
policy.

Validation Documentation
Documents to be provided by Merchants under the Data Security Operating Policy. See Chapter 8,
"Protecting Cardmember Information".

Voice Authorization
The Authorization of a Charge obtained by calling the American Express Authorization Department.

we, our and us

American Express Travel Related Services Company, Inc.

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parties without the express prior written consent of American Express Travel Related Services Company, Inc.