Elavon has updated its Terms of Service, effective from 14 September 2019.
There are three main areas of changes:
- As a result of the introduction of the Payment Services Directive 2 (PSD2);
- Updates to Data Security Payment Card Industry (PCI); and
- Elimination of the Libor interest rate from the provision about the maximum interest rate.
PSD2 is designed to make payments safer, increase consumer protection and to foster innovation and competition. One of the most significant impacts of PSD2 relates to e-Commerce transactions and the need to implement Strong Customer Authentication (SCA). The SCA provisions of PSD2 become mandatory from 14 September 2019 across Europe.
The SCA provisions of PSD2 introduces certain requirements to be implemented for e-Commerce transactions and these have been communicated.
The main changes to the TOS regarding PSD2 are:
a) The introduction of Strong Customer Authentication (SCA) terminology – set out in Point 7 of the TOS together with additional obligations for Customers, particularly the request for the application of SCA and any instruction from Elavon with regard to this;
b) Point 7 of the TOS also includes prohibition to apply SCA where not instructed to do so or to apply the exemption from SCA if Elavon or issuer decides otherwise;
c) Point 7 of the TOS also includes exemptions from SCA, resulting from the Regulatory Technical Standards (“RTS”);
d) Point 8 (b) (iv) (Warranties for Transactions) of the TOS includes reference to SCA;
e) Point 12 of the TOS underlines that chargeback defence may require evidence of the adoption of SCA. Similarly, the definition of the notion “Chargeback” has been updated to include reference to SCA;
f) Point 17(k)(vii) of the TOS includes obligation for the Customer to follow Regulatory Technical Standards on SCA or European Banking Authority / other competent authority guidelines, in case the Customer wishes to outsource any functions related to security of internet payment services;
g) New definitions “Online Authentication Solution” and “Online Authentication Solution Plugin” have been added to support the new SCA language;
h) Schedule to TOS “Internet transactions” includes rules on online authentication solution – e.g. 3DS standard – including obligation to participate and to update the standard, once the update is available.What does SCA mean for my business?
The main changes to the TOS regarding PCI are:
a) The data security updates relate to a change of name for the monthly PCI fee alongside a new Schedule covering data security solution and the PCI Waiver Plan.
b) The TOS incorporates now language regarding our services – Secured Pro and Secured Encrypt. Terms applicable to those services have been moved to the Terms of Service. Those services have been now named as Solutions.
c) It has been decided to allow PCI Level 3 Customers (alongside PCI Level 4 Customers) to apply for the PCI Waiver Plan.
d) The new definition has been added – ASV that is the organisation able to validate the adherence with the external scanning requirements of PCI DSS. We have also updated the definitions “Data Security Standards”. We have also added the definition “PCI Level 3 or Level 4 Customer”.
e) Point 26(g)(i) (Termination) – this clause has been updated to capture change of terminology of the PCI fees.
Libor interest rate elimination:
Point 27(e) of the TOS has been changed, in order to eliminate Libor interest rate that is expected to be discontinued. The new version of that provision includes reference to the Late Payment of Commercial Debts (Interest) Act 1998.
Please note that the TOS changes don’t require any specific action from you. You will be deemed to have agreed to the changes if you continue to present transactions to Elavon for processing at any time after the effective date. The new TOS are below.
If you do not accept any of these changes, you must contact us in accordance with section 27(f)(ii) of your TOS, in writing to: Elavon Financial Services DAC, PO Box 56, IDA Business Park, Arklow, Co. Wicklow, Ireland, or email email@example.com, before 14 September 2019. You have the right to terminate your merchant acquiring agreement at any time before 14 September 2019 without charge.