NMA Internet & MOTO Best Practices Addendum

PLEASE (Not Required for Merchants swiping 50% or more of their transactions)
INITIAL !
_____ Advance Sales
I understand that charging a customers credit card more than (24) hours prior to rendering services or shipping my product is a
violation of Visa/Mastercard Rules and is not allowed.
_____ Refunds, Guarantees, and Warranties
I agree to limit Guarantee, Warranty, and Refund periods to, not more than, ninety-days (90). I agree to prominently display the
refund policy where the customers credit card information is entered. Refunds, guarantees, and warranties are considered
services and may extend your chargeback liability period up to six months after the service ends. Marketing third party
(manufacturers) warranties are OK if you are not billing for, or providing a part of the service.
_____ Web Site Construction (if applicable)
I agree to prominently display my business DBA Name listed on my Merchant Application on each web page of my site and
include the phrase Your credit card will be billed under DBA Name where the customers credit card information is requested. I
agree to notify and obtain prior approval from NMA if I change my DBA Name. My DBA Name is what appears on the
customers credit card statement. If a customer does not recognize my DBA Name, they are more likely to dispute the charge
and request a Chargeback from their issuing bank. I agree to prominently post my consumer data privacy policy and method of
transaction security on my web site. I agree to contact National Merchants Association at 1-866-509-7199 when my website
is ready to accept transactions.
Preferred Descriptor (24 characters):

_____ Privacy Statement
I agree to prominently post both my consumer data privacy policy statement and method of transaction security on my site. I
agree to incorporate all topics, which are listed on the Visa website under privacy policies at
http://usa.visa.com/sitewide/privacy_policy.html, into my privacy policy. I also agree to provide a visibly displayed secure payment
page when a customers confidential information is requested on my site.
_____ Products and Services
I agree to sell only the type of products listed on my application and will obtain prior approval from NMA if I add to, or substantially
change, products sold. I agree not to sell any products or services for other companies or people. This is called factoring and
is a violation of Visa/Mastercard Rules.
_____ Product Descriptions
I agree that every product or service advertised on my website is accompanied by a complete product description.
_____ Terms & Conditions*
I understand that it is a requirement of the Card Brands to fully disclose my terms & conditions and I agree to include the following
REQUIRED elements:
Clear and concise explanation of pricing/billing cycles
Cancellation policy (including acceptable methods of cancelling and time frames for cancelling)
Customer Service contact information (Phone, emails, hours, and days of operation, etc.)
Expected timeframe for shipment of products (should be within 2-3 business days)
Indication of how charges will appear on the customers credit card statements (i.e. Disclose the Descriptor)
_____ Chargeback Liability, AVS, and CVV2
I understand I am responsible for all chargebacks posted to my account. I agree to obtain an AVS match (Address Verification)
and the CVV2 number (3 digit number near the cardholders signature on the back of the card) on all mail order or Internet
transactions whenever possible. I agree to report unusually large transactions or suspicious cardholder activity to NMA Risk
Management Dept at 1-866-509-7199 before processing the transaction.
_____ Chargeback Interception & Monitoring
I understand that my Descriptor will be used to intercept inbound chargebacks. I understand that if I use the same descriptor for
multiple MIDs, that National Merchants Association may alert me to an inbound chargeback on any other MID using that
descriptor. I agree to respond to the alert within 24 hours. I understand that if I do not respond within 24 hours, the transaction
may be refunded by National Merchants Association and/or become a chargeback. I understand there is a fee of $45 that will be
drafted from my bank account of record for each alert received. I understand that if National Merchants Association must issue
the manual refund on my behalf, an additional fee of $15 will be drafted from my bank account of record. I understand that if I do
not respond within 24 hours and National Merchants Association does not have access to my gateway to issue the refund, that
the alert WILL become a chargeback.
43620 Ridge Park Dr. Suite #310 Temecula, CA 92591 * www.nationalmerchants.org * (866) 509-7199 National Merchants Association 2013 Updated 05/29/2014

*Example of Terms and Conditions / Offer Details

By clicking Submit Now I am ordering the Great Smile Teeth Whitening kit for $79.95. I will be enrolled in the monthly auto-ship program
in which I will receive a new Great Smile teeth Whitening Kit every 30 days, and be billed $79.95 upon shipment, until I cancel. I can
cancel anytime by calling Customer Support Monday-Friday 8am-8pm PST at 888-999-0987, or by sending an email to
cancellations@greatsmile.com. My Great Smile Teeth Whitening Kit will be shipped via USPS within 2-3 business days of my order. All
charges will appear as Great Smile on my credit card billing statement.
*Example of Terms and Conditions / Offer Details
By clicking Instant Access I am ordering the Internet Kit and trial membership for $3.97 Shipping and Handling. If I do not cancel within
the 10-day trial period, I will be charged $49 every month (beginning approximately 11 days after signup) from that point forward for as
long as I wish to maintain my membership. To cancel, I can call Customer Support Monday-Friday 8am-8pm PST at 888.999.0987, or by
sending an email to cancellations@internetkit.com. My Internet Kit will be shipped via USPS within 2-3 business days of my order. All
charges will appear as Internet Kit on my credit card billing statement.
Acceptable Billing Cycle Unacceptable Billing Cycle
Day 1 $5.95 (S/H) Day 1 $5.95
Day 11 $75.95 Day 11 $75.95
Day 41 (and every 30 days thereafter) $75.95 Day 30 (and every 30 days thereafter) $75.95
***The customer may not be billed the Core price twice in any 30-day span***
*Placement / Proper Display of the Terms and Conditions
Double Validation The terms and conditions of the purchase must be displayed in TWO Places:
On the landing page (before continuing to the checkout page)
In full on the checkout page (before the customer has entered credit card information)
NOTE: In order to provide proper disclosure to the customer, the complete terms and conditions must be displayed in the same
window as the click box. If the customer has to click a hyperlink to view the terms in a secondary window, proper disclosure has
not been provided.
Click to Accept
Both on the landing page and the checkout page must include a box that requires the customer to click to accept the terms and
conditions. The default status for this box must be unchecked. If the customer fails to click to accept, a message should be displayed
asking she/he to read the terms, click the box, and then proceed with the transactions.
Trial Offers / Up-Sells
Terms such as Free Trial and Risk Free Trial are prohibited if the customer will be enrolled in a monthly continuity program or
will be paying a deferred charge for the trial period.
Guarantees about full money back or satisfaction guaranteed are only allowed if the offer provides a full refund, including, but
not limited to, shipping and handling fees.
All trial periods must be a minimum of 10 days.
Up-selling and Cross Selling are prohibited.
Customer Service
Merchants must provide customers with at least two outlets for cancellation (i.e. phone, email, mail, live chat, etc).
Cancellation/Refund policies must be clearly disclosed in the terms and conditions.
Customer Service phone number, email address, mailing address, and hours of operation must be clearly visible on a merchants
website.
Email Communication
Merchants must send confirmation emails to the customer containing the following information:
o The name of the company that will appear on their credit card billing statement
o Customer Service phone number
o Customer Service email address
o An invoice showing what the customer ordered and how much will be charged to their credit card
o The companys return policy
o Any additional terms and conditions such as trial periods and/or recurring billing notifications.
Merchants must send a recurring billing notification email 3 days prior to rebilling their credit card reminding them of the charge
that will appear on their card. Include the following:
o A link to the product
o Customer Service phone number
o Customer Service email address where a customer can easily cancel this impending recurring charge.
Results Not Typical Expectations
Advertisements that feature a consumer and convey his or her experience with a product or service as typical when that is not the
case will be required to clearly disclose the results that consumers can generally expect.
o Acceptable Alternative: Results Not TypicalThe Average User Experiences.
! UNACCEPTABLE: Results Not Typical or Results Not Typical, Your Results May Vary
43620 Ridge Park Dr. Suite #310 Temecula, CA 92591 * www.nationalmerchants.org * (866) 509-7199 National Merchants Association 2013 Updated 05/29/2014

Marketing / Advertising Claims
All product claims must be truthful, straightforward, and not misleading or deceptive to the customer. LAW prohibits the use of
any deceptive acts or practice. All claims must be realistic, substantiated, and have the ability to be proven based on the
formulas used in the products and the research conducted to support it.
o The FTC believes that consumers would be less likely to rely on claims for products and services if they knew the
advertiser did not have a reasonable basis for believing them to be true. Therefore, a companys failure to possess and
rely upon a reasonable basis for objective claims constitutes an unfair and deceptive act or practice in violation of
Section 5 of the Federal Trade Commission Act.
Endorsements must reflect the honest opinions, findings, beliefs, or experience of the endorser, and may not convey any express
or implied representation that would be deceptive if made directly to the advertiser.
Images of celebrities and logos of companies (i.e. new organizations, Dr. Oz) are prohibited from use without the express legal
written consent of the entity being published.
Creating a false sense of urgency is prohibited:
o Countdown clocks
o Pop-Up boxes that lower the price if the customer orders now
o Use of phrases such as Offer Expires Today

_____ AFFILIATE MONITORING, TRACKING, AND REPORTING
I understand I am responsible for all affiliates sending traffic to my site. I agree to monitor the processing statistics separately for
each affiliate and provide this tracking information to National Merchants Associations Risk Department at
affiliatetracking@nationalmerchants.org by the 5
th
of each month for the previous month. I understand that failure to provide
this information may result in my funds being held. The following criteria should be reported:
Approval ratios per affiliate should be monitored and the following triggers should be reviewed:
o 100% approval ratios in any batch
o <70% approval ratios
o Rebill ratio <65%
o Decline codes on those not approved should be less than 4% fraud codes (lost/stolen, pick up card, etc.)
Refund ratios per affiliate should be monitored and the following triggers should be reviewed:
o <5% refunds to sales
o >10% refunds to sales
Chargeback ratios should be monitored and the following statistics should be reviewed:
o >.50% chargeback to sales
o If greater than .70%, identify why and report accordingly
Transactions should be tracked to ensure they are not coming from the same IP or device

PLEASE ENTER THE EMAIL ADDRESS TO BE USED FOR ALL CHARGEBACK INTERCEPTION
ALERTS, CHARGEBACKS, AND/OR AFFILIATE TRACKING: _____________________________________

I understand and agree to all of the aforementioned rules and further understand that violation of any of these rules may result in
the immediate termination of my Merchant Account and other remedies available to National Merchants Association through the
Merchant Agreement.

In Order to comply with all Visa and MasterCard regulations governing Internet credit card sales, National Merchants Association
requires that you will NOT accept credit card transactions through your website and/or e-mail and then manually enter them into
your POS equipment, software, or gateway. You must obtain a separate and secure e-Commerce merchant account to accept
credit card transactions for products and services purchased through a website or the Internet.

By singing below, I acknowledge that I have read the information above and agree to keep my website compliant with all Card
Brand and Federal Trade Commission regulations. I further understand that my responsibilities in keeping a compliant website
and the information contained in this document do not supersede any of the Terms of the Merchant Agreement.


________________________________ _______________________________
Merchant DBA Legal Name


________________________________ __________ _______________________________ _________
Principal Signature Date Signers Name Title


________________________________ _______________________________
Merchant ID Number Website Address

43620 Ridge Park Dr. Suite #310 Temecula, CA 92591 * www.nationalmerchants.org * (866) 509-7199 National Merchants Association 2013 Updated 05/29/2014