Co-badged cards compliance

The EU IFR Regulation 2015/751 article 8 for co-badged cards issued in the European Economic Area (EEA) requires that if a cardholder uses a co-badged card, and you support both brands, you must let them choose the brand to pay with.

Guidelines

To make sure you are compliant with the scheme requirements, follow these guidelines:

Clearly identify payment schemes

When a cardholder enters their card number during checkout, identify the available payment schemes clearly by name and/or logo, for example, Visa, Mastercard, Cartes Bancaires, Bancontact, or Dankort. These need to have the same visual quality, clarity, and size. It must be clear to the cardholder how to select a payment scheme, for example, by using a checkbox or a radio button.

Do not discriminate between card products

If you accept both credit and debit cards, to be compliant, your checkout must have a cards section that refers to both debit and credit cards. You cannot present only a credit card section. The following are examples of compliant labels for the card payments section in your checkout form:

• Cards
• Card payment

As a quick fix, we strongly recommend you to change the name of the payment method in your client-side payment form. For Web Drop-in, for example, you can do this by adding an optional configuration object.

If your integration uses our Drop-in or Components to show the payment form, upgrading to Checkout API v71 makes your integration compliant with the co-badged cards requirements.

Honor the cardholder's choice

It is not mandatory to enforce a choice of payment scheme. You are allowed to have a preferred choice. Therefore, if the cardholder does not make a choice, you can choose your preferred scheme over which to route the payment. However, if the cardholder has made a choice, that choice must be honored, and it is not allowed to route the payment via another payment scheme.

Guidelines for stored co-badged cards

When a shopper makes the first transaction to store their co-badged card details, let them choose a scheme to pay with, and inform them that the recurring payments will be processed by the scheme that they choose. These are the possible options:

• If the shopper chooses a scheme, you must store and honor the shopper's choice, and use that scheme for the recurring transactions.
• If the shopper doesn't choose a scheme, you can choose a scheme for the recurring transactions.

The Reserve Bank of Australia (RBA) regulations for co-badged cards require you to do the following:

Honor the cardholder's choice

You can decide if you want to let the cardholder choose which network their transaction will be processed through. If you let the cardholder choose a network, you must process the transaction with the network they choose.

Inform the shopper that network routing can occur

If the shopper doesn't choose a network, you must reasonably indicate that the transaction can be processed through either network. For example, you can include text that says, "if you use a debit card with two networks, your payment can be processed through either network”.

Show the shopper which networks their transaction can be processed through

If you don't let the shopper choose a network, you must inform them of the networks their transaction can be processed through. You must show the logos of all of these network options.