HomeMy WebLinkAboutReso 94-1985 RESOLUTION NO. 94-85
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO~ STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING APPROVAL AND
EXECUTION OF A MERCHANT AGREEMENT WITH
FIRST NATIONAL BANK OF DALY CITY
BE IT RESOLVED by the City Council of the City of South San Francisco that:
1. Approval of Agreement.
The Agreement and letter addendum entitled "First National Bank of Daly
City Merchant Agreement" between the First National Bank of Daly City and the
City of South San Francisco regarding the Department of Recreation and Community
Services acceptance of Visa and MasterCard charges for recreational activities,
is hereby approved and a copy of said Agreement and the letter addendum thereto
is attached hereto as Exhibit "1."
2. Execution of Agreement.
The City Manager is authorized to execute said Agreement and the letter
addendum on behalf of the City, and the City Clerk attest his signature thereto.
I hereby certify that the foregoing Resolution was regularly introduced
and adopted by the City Council of the City of South San Francisco at a regular
meeting held on the 8th day of May , 1985, by the following
vote:
AYES:
NOES:
Councilmembers Mark N. Addiego, Emanuele N. Damonte, Richard A. Haffey,
Gus Nicolo~ulos; and Roberta Cerri Teolia
None
ABSENT: None
I)'It~ST NATIONA1J BANK of Daly City
MERCHANT AGREEMENT
In considered, ion of the n'~utual covenants herein, FIRST NATIONAL BAN~ o.~ D~-,~" '~;;;~ [oank) and the undersigned merchant (Merchant)
have agreed as follows as of the date of acceptance by Bank's au~'-.'i.~, r~p:,' · -:;.,~ve noted below:
AF~T~_.~ ~ ~ - ~ARD TR~SACTIONS
1.01 I~lono~ing Cards. (a) Merchan; s~'~t '~,, w~lhout discrimination all valid cards of the type(s) checked below ("Cards") when properly
presented as payment by customers. If Merchant does not deal with the public at large (for example, a private club), Merchant shall De deemed
to have complied with this non.discrimination rule if it honors all valid Cards of cardholders who have purchasing privileges or memberships with
the Merchant.
(b) Merchant shall not require, through an increase in price or otherwise, any cardholder to pay any surcharge at the time of
or any part of any charge Imposed by Bank on Merbhant (discount~ for payment in cash, however, are not prohibited).
(c) Merchant shall not eslablish minimum or maximum transac'tion amounts.
1.02 Advertising. (a) Merchant shall display adequately any advertising display provided by Bank and such symbols and names as Bank
may require on promotional materials to inform the public that Cards will be honored at Merchant's place of business. However, such displays are
not required of doctors and dentists, private clubs and other Merchants that do not deal with the general public, vehicle leasing companies at airport
locations, transportation companies subject to government regulations, or other Merchants expresSly exempt by MasterCard International Inc. or
Vi~,a U.S.A. Inc., as applicable.
(b) Merchant shall not display or use advertising or promotional material containing Bank's name or symbol which might cause e
customer to assume that Merchant honors only Cards issued by Bank.
(c) Merchant shall have the right to use or display the proprietary names and symbols associated with Cards only while this Agree.
men[ is In effect, or until Merchant is notified by Bank or any appropriate bankcard organization to cease such usage.
(d) Merchant shall comply with all applicable MasterCard International Inc. and Visa U.S.A. Inc. rules and regulations concerning
the use of service marks and copyrights owned by MasterCard International Inc. or Visa U.S.A. Inc.
(e) Merchant shall use the proprietary names and symbols associated with Cards only to indicate that Cards are accepted for pay-
ment and shall not indicate, directly or indirectly, that MasterCard, Visa, or any bankcard organization endorses Merchant's products or services.
(f) Merchant shall not refer to MasterCard or Visa in stating eligibility for its producls, services, or memberships.
1.03 Unacceptable Cards. (a) Before honoring any Card, Merchant agrees:
(I) to check the effective date (if any) and the expiralion date on th~ Card;
(ii) to check the account number on the Card against the most current MasterCard Restricted Card List or Visa Card Recovery
Bulletin or File provided to Merchant, as appropriate; and
(iii) to examine.any Card security features (such as a hologram) included on the Card.
(b) Merchant shall not honor any Card that is not yet effective. For MasterCard transactions, Merchant shall not honor any Card that
has expired. For Visa transactions, expired Cards shall not be honored unless prior authorization is obtained pursuant to Section 1.04. If the account
number is included in the most current MasterCard Restricted Card List provided to Merchant, Merchant shall not honor the Card unless prior authoriza-
tion ts obtained pursuant to Section 1.04. If the account number appears in the most current Visa Card Recovery Bulletin or File provided to Mer-
chant, Merchant shall not honor the Card and will retain the Card by reasonable and peaceful means until contacting Bank's authorization center
for instructions.
1.04 Prior Credit Authorization. (a) Before honoring any Card, Merchant shall request authorization from Bank's authorization center if:
(i) the total amount of the transaction (including any applicable taxes) exceeds the floor limit then applicable to the transa(~-
lion (for hotel/motel and vehicle leasing transactions, Merchant must estimate the amount of the transaction based upon the customer's intended
length of stay or rental and request authorization if the estimated transaction amount exceeds the applicable floor limit. Upon check out or return
of the rental vehicle, additional authorization must be obtained and recorded for charges actually Incurred In excess of Ihe estimated amount.);
(il) Merchant desires to make a delayed presentment of the sales slip;
(iii) for Visa transactions, the customer appears in person but does not present his or her Card (for MaslerCard transactions,
Merchant Shall not complete the transaction if the cardholder appears in person but does not present his or her Card);
(iv) in a transaction other than a mail or telephone order, the sales slip is not signed or is not imprinted, with the Card or with
the merchant plate;
(v) for MasterCard transactions, the account number is listed on the most current MasterCard Restricled Card List provided
to Merchant;
(vi) the Card is not signed;
(vii) for Visa transactions, a Card with an expired date is presented; or
(viii) the customer's signature Is questionable, or Merchant believes the Card may be counterfeit or stolen, or there are other
unusual or suspicious circumstances.
(b) Except when authorization is required only because the amount of the transaction exceeds the applicable floor limit, Merchant
must advise the authorization center of the specific reason for the authorization request. For MasterCard transactions, if the Merchant is requesting
authorization based on suspicious circumstances, Merchant shall state to the authorization center "This is Code Ten," or provide such other security
code indicator as is specified to Merchant from time-to-time by Bank, and await instructions.
(c) If authorization is granted, Merchant shall print the authorization number or code le.aibly on the sales slip.
(d) If authorization is denied, Merchant shall not complete the transaction and shall fellow any instructions from the authorization center.
1.05 Retention and Re[rival of Carols. Merchant shall use its best efforts, by reasonable and peaceful means, to retain or recover a
Card: (a) while making an authorization request; (b) if the account number is listed on the most current MasterCard Restricted Card List and Bank's
authorization center is closed or cannot be reached, until the center opens or can be reached; (c) if the account number is listed on the most current
Visa Card Recovery Bulletin or File; (d) if Merchant is advised to retain it in response to an authorization request; or (e) if Merchant has ~easonable
grounds to believe that the Card is counterfeit, fraudulent, or stolen.
1.06 Completing the Sales Slip. Except as provided in Sections 1.07, 1.08. and 1.09 below, Merchant agrees to do all of the following when
honcring a Card:
(a) to include on a single sales slip all goods and services purchased in the same transaction;
(b) to enter on the sales slip a description of the merchandise and/or services sold and lhe price thereof (including any applicable
taxes) in detail sufficient to identify the transaction;
(c) to enter On the sales slip the date cf the transaction;
(d) if the transaction occurs at a gasoline station or at a retail establishment that sells gasoline as a secondary service, to enter
on the sales slip the number and state (or other jurisdiction) of the motor vehicle license plate or, if no motor vehicle is present, the words "No
('.ar" (the license number and state or'the words "No Car" are not required if the transaction is at an unattended gasoline station where the pump
i.~ activated by a magnetic stripe, or if the transaction is for goods or services other than gasoline or other automotive products); (e) to obtain the signature of the customer on the sales slip;
(f) to compare the signature on the sales slip and on the signature panel of the Card, and if the Card has a photograph of the cardhoIder,
tO ascertain that the customer resembles the person depicted in the photograph, and if either identificalion is uncertain, or Merchant otherwise
questions the validity of the Card, to contact the Bank's authorization center for instructions;
(g) to imprint legibly on the sales slip the embossed legends from the Card and from the merchant imprinter plate; and
(h) to deliver a true and completed copy of the sales slip to the customer at the time o! deliveq/of the goods or performance of the
services.
1.07 Multiple Sales Slips; Partial Consideration. Merchant shall include on one sales slip the entire amount due for each transaction, unless; (a) the customer pays the balance of the amount due at the time of the transaction in cash or by check;
(b) all or a portion of the gcods or services are to be delivered or performed at a later date, and the customer signs two separate
sales slips, one of which represents a d~posi~ and the second of which represents payment of the ha!anco, and the "balance" sales slip is completed
only upon delivery of the goods or performance of the services. In such case, Merchant agrees:
(i) to note on the sales alips, the word "deposit" o; "balance," as appropriate;
(ii) ~ ~.~ ~c, iai ~,mour, toi the iwo sl~ps excee(~s t~e ~.pplicable floor limit. I.o obtain prior authorization and note the authoriza-
tion number(s; on the sales slips; and
(iii) not to present the "balance" sales slip tm[il al~ the Goods are delivered or all the services are performed.
Me,chant agrees not re divide a single transaction betwee~ lwo or more sales =lies to avoid an authorization call.
1.08 Telephone Orders, Mail Crders and Preauthorized Orders. If a card transaction is mad. e by telephon~ order (TO), mail order (MO), or
preauthorized order (PO), the 5ales slip may be completed without a custorner's signature or a card imprint, but f~erchant agrees; (a) to print legibly on the signature line of the sales slip th9 ~etters TO, I,,'lO, or PO, as appropriate;
(b) in the case of a preautnorized order, to require the custcmer to execute and deliver to Mercha,'ff a written preauthorization, which
written preauthorization Merchant m~Jst retain and make av~-ilab!e to Bank upon request; and
(c) not to deliver goods or perform services cove~ed by a p~e~,utl;orizalion ~'er being advised'that the preauthorizalion has been
cancelled or that the Card is not to be honored.
1.09 Sale Without Card Imprint. If the transaction i5 to b~ complete~ without a Ca d imprint, Merchant shall print legibly on ihe sales slip
surf c ant information to identify the cardholder, Merchant and the card i:;suer, including, at least: (a} t ~erchant's name and address, (b) the card
issu~.r's name (or trade style as it a,~pears on the face of the Card), {c) th9 account nu~bo', 'd) thu 6~piratio~ date and any ef,'ective d3[e on the
Card, (e) the cardholder's name, (f) any company name, and (g~ for Ma~terC~'~rd !ransaclions, th~ ;s~uer's Inte~bank number and bank initials (if'
any). Merchant also agrees to use its best e,~forts to record on th-~. slip ;~ny other d~te emboss~e on ~hu Card, such as security symbc, ls.
In any non.imprint trans~ction, Merchant shall be deem, eJ to warrant ~he customer's true i"~entil;., as an authorized user of the Card, whether
or not authorization i5 obtained, unless Merchant obtains and notes leqibt), o.~ tim sa!.~s s~ip ind~p~.;;lent evidence of the customer's true ioentity.
(a) If b',erchant m~intains a policy of permitting rehzr, d3, e×chan~.l~.$. ~eturns. or a,'Jiustm~ats [or c....h cuotomers Merchant sh&; I maintain
the sa~'ta~, policy for persons making purchases thruugh use of :3 C~.rd. f..~e~cha~t ~.ay rn$!ricl i[5 reit;riel or r~.'.urf~ policy as to any Card transaction.
I~o~e'~'e~, if Merchan~ discloses it.~ p;!icy at the time of rrm transection b) prn~in~ ~:,; appr~;ar;ate leg~nd (or 3 substantially similar legend) on the
[;a~$ slip or invoice, as fo[to,','s.
(i) "NO REFUND" tit I?,.~rcnant will not ac~;ept rr~ercnand;se ir. re!urn or exchange);
(ii) "EXCHA~GF ONLY" (if Murch~nt wHi a,:c~pt me;ch~ndise 4,n~y i,~t immediate exch~nae for similar merchandise of a price
· '~,~-J;~t t~ the amount o~ the original [(.resection);
(iii) "IN STORE C ... ~ ONLY" (it Merchant will accept merchandise in return and deliver to the cardholder a credit vouch~.r
"~.'hlch may be used oniy in Merchant's place(s) of business);
(iv) [other appropriate legend] (i! Merchant stipulates special circumstances permitted by applicable law ar'-.' ~-." ~:' t'., .
the cardholder, such as .'ate delivery, delivery charges, insurance charges, or other special conditions o! the transaclion).
Merchant must print the suggested legend (or similar wording) legibly on all copies o! the sales slip prior to obi o,~;r,g the customer's
signature at the time o! the transaction.
(b) Except as provided above, if Merchant accepts any goods for return, any services are terminated ~., ~>¢.~ ,.,led, or Merchant allows
any price adjustment (other than involunt-~ry refunds required by applicable airline or other tariffs or otherwis., er- ,aw), Ihen Merchanl shatl not
make any cash refund, but shall complete and deliver promptly to Bank a credit slip evidencing th~' ref,::~d cr =dlustmenl, and deliver 1o the card-
holder a true and complete copy of the credit slip at the time the refund or adjustment Is madb. Merch~ shall sign and date each credil slip and
include thereon a brief description of the goods returned, services terminated or cancell,~d, or relund or adjus[m-~,,~, made, Iogether with tho amount
of the credit, in sufficient detail to identify the tranSaction. Merchant shall impd-: ~ r;d~bly reproduce on each credit slip the embossed leges;Cs
from the Card and from Merchant's Imprinter plate. The amount of the cred'.: ~,,p cannot exceed the amount of the original tran~3~;tion as refleclod
on the sales slip.
1.11 Cash Payments. Merchant shall not receive any payments from a customer for charges Included on any sales slip resulting from the
use of any Card, nor receive any payments from a cardholder to prepare and present a credit slip for the purpose of affecting a deposit lo the card-
holder's account. Merchant agrees not to make any cash advance or withdrawal to any cardholder. Money orders sent by wire, contributions to charitable
and political organizations, tax payments, Insurance premium payments, alimony and child support payments, and court costs and fines shall not
be considered cash advances or withdrawals.
1.12 Release of Cardholder Account Information. Merchant shall not, without the cardholder's prior wdtten consent, sell, purchase, provide
or otherwise disclose cardholder's account Information or other cardholder personal information to any third party other than Merchanl's agents
and processing organizers for the purpose of assisting the Merchant in its business or as required by law.
ARTICLE II -- PRESENTATION, PAYMENT AND CHARGEBACK
2.01 P~esentment of Sales Slips and Credit Slips to Bank. (a) Merchant shall present each sales slip to Bank'within three (~_~3) business days
after the date of the transaction, except that:
(I) Merchant shall present no sales slip until the goods have been shipped or the services have been performed and Merchant
has othen~lse performed all of its principal obligations to the customer In connection with the transaction;
(ii) when Merchant requests and receives authorization for delayed presentment and legibly Prints on Ihs sales slip the
authorization number and the words "Delayed Presentment," Merchant may present the sales slip within the period permitted fordelayed presentment;
(iii) if Merchant is obligated by law to retain the sales slip or return it to a buyer upon timely cancellation, Merchant may present
tho sales slip within ten (10) business days after the date of the transaction; and
(iv) when Merchant has multiple locations or offices and accumulates slips at a central facility whlc~ presents such slips
to Bank, Merchant may present Maste~,ard sales slips to Bank within thirty (30) calendar days, and Visa sales slips wllhln twenty (20) calendar
days, after the date of the transacUon.
(b) Merchant shall dellvm' all credit slips to Bank within three (3) business da~ after the credit transaction, date, except that when
Merchant has multiple locations as described in subsection (a) (iv) above, Merchant may deliver credit slips to Bank within seven (7) business days
after the transaction date.
· (c) Merchant shall not present salsa slips or cred!t slips which it knows or should have known to be fraudulent or not authorized
by the cardholder.
2.02 Acceptance and Discount. Subject to the provisions of any warrantys of Merchant hereunder and of any chargeback rights, Bank agrees
to accept valid sales slips from Merchant during the term of this Agreement and to pay Merchant for each accepted sales slip the total amount
thereon less any percentage discount agreed to by the parties. Any payment made by Bank to Merchant shall not be final but shall be subject to
later review and verification by Bank.
2.03 Endorsement. Merchant agrees that Merchant shall be deemed to have endorsed any sales slip or credit slip it presents to Bank in
Eank's favor, and Merchant hereby authorizes Bank to supply such endorsement on Merchant's behalf.
2.04 Prohibited Payments. Merchant agrees that Bank has the sole right to receive payments on any accepted sales slip as long as (a) Bank
has paid Merchant the sales slip amount less the discount therefore and (b) Bank has not charged such sales slip back to Merchant hereunder.
Unless specifica~ly authorized in writing by Bank, Merchant agrees not to make or attempt to make any collections on any such sales slip. Merchant
agrees to hold in trust for Bank any payment it receives of all or part of the amount of any accepted sales slip, and promptly to deliver the same
in kind to Bank as soon as received, together with the cardholder's name and account number and any correspondence accompanying Ihs paymenl.
2.05 Chargeback. Under any one or more of the following circumstances, Bank may charge back to Merchant any sales slip which Bank
has accepted, and Merchant shall, upon receipt of any such charged*back slip, repay Bank the sales slip amount less any discount therefor:
(a) The sales slip or any material information on the slip (such as the account number, expiration date of the Card, merchant descrip-
tion, or transaction amount or date) is illegible or Incomplete, or is not endorsed, or is not delivered to Bank within the required lime limlls;
(b) The account number was listed on the then-current MasterCard Restricted Card List or Visa Card Recovery Bulletin or File on
the transaction date and Merchant did not reject the transaction or receive prior authorization for the transaction, as applicable;
(c) The sales slip does not contain the imprint of a Card that was valid, effective, and unexpired on the transaction date;
(d) The transaction was one for which prior credit authorization was required, and prior credit authorization was not obtained, or a
valid authorization number Is not correcUy and legibly printed on the sales slip;
(e) The sales slip is a duplicate of an item previously paid, or is one of two or more sales slips generated· in a single transaction
in violation of Section 1.07;
(f) The cardholder disputes the execution of the sales slip, the sale, delivery, quality or performance of the merchandise or services
purchased, or alleges that a credit adjustment was requested and refused or that a credit adjustment was issued by Merchant but not posted to
cardholder's account;
(g) The price Of the merchandise or services shown on the sales slip differs from the amount shown on the copy of the slip delivered
to the customer at the time of the transaction;
(h) Bank reasonably determines that Merchant has violated any term, condition, covenant, warranty or other provision of this Agree-
ment in connection with the sales slip or the transaction to which It relates; or
(i) Bank reasonably determines that the sales slip Is fradulent or that the related transaction is not a bona fide transaction in Mar.
chant's ordinary course of business, or is subject to any clalm of illegality, cancellation, rescission, avoidance, or offset for any reason whatsoever,
including without limitation, negligence, fraud or dishonesty on the part of Merchant or Merchant's agents or employees.
· ARTICLE III - MISCELLANEOUS
3.01 Merchant's Imprinter Plate. Merchant shall keep its imprinter plate(s) in good working order and shall notify Bank prior to any change
in any of the Information on Merchant's Imprinted plate.
3.02 Forms. Merchant shall use only such forms or modes of transmission for sales slips and credit slips as are provided or approved In
advance by Bank, and Merchant shall not use sales slips or credit slips provided by Bank or other than in connection with Card transactions hereunder.
3.03 Records. Merchant shall keep and maintain its copies of all sales slips, credit slips and all records pertaining to any card transaction
for such time and in such manner as may be required by law.
3.04 Compliance with Law. Merchant shatl comply with all law applicable to Merchant, Merchant's business and any Card transaction, in-
cluding without limitation all state and federal consumer credit and consumer protection statutes and regulations.
3.05 Modification. This Agreement is subject to such modifications, changes, and additions as may be required, or deemed by Bank to
be required, by reason of any state or federal statute, judicial decision, MasterCard or Visa rule or regulation, or the regulation or ruling of any federal
agency having jurisdiction over Bank or Merchant.
3.08 Termination. This Agreement may be terminated without cause by either party upon prior written notice to other party. Bank may
terminate this agreement without prior notice in the event Merchant is or becomes bankrupt or Is unable to pay its debts as they become due, or
if Bank reasonably determines that Merchant has violated any term, condition, covenant, or warranty of this agreement. Upon the effective date
of any such termination, Merchant's rights hereunder to make Card transactions, to deposit sales slips with Bank, and to use sales slip forms, credit
slip forms, promotional material, and any other items provided by Bank hereunder shall cease, but Merchant's obligations in connection with any
sa!es slip accepted by Bank (whether before or after such termination), including without limitation Merchant's chargeback obligations, shall survive
such termination;
iN WITNESS '.%~HEREOF, B~nk and Merchant have caused their du~y authorized representatives Id execute this agreement as of the date
set forth below the cignature of each.
Cards subject to this Agreement ("Cards")
L~asterCard cards (including any other MasterCard International Inc. cards)
Visa Cards (including any other Visa U.S.A., Inc. and Visa International Service Association cards)
Other Cards as follows:
M~:RCHANT
City of South San
Name
4(lQ Grand_Avenue
(Address)
Francisco
_ Sou~ San Francisco, CA 9408,~ _
A~EST: ~~ ~~
LETTER ADDENDUM TO EXHIBIT "1"
FIRST NATIONAL BANK
BURI BURI OFFICE
Dear Customer:
Due to continued increases in processing costs, we find it necessary to
revamp both the method of handling Bankcard discounts and the percentage
charged on each draft.received. These charges will become effective
January 1, 1984.
The following details the revised percentages which will be charged on
each draft processed:
Draft Amount
Discount Percentage
S .01 - 1S.00 6%
1S.Ol - So.00 · 5%
50.01 - 100.00 4%
100.01 - and over 3%
Effective January 1, 1984, you will no longer calculate the discount on
>'our deposit. You will be credited for the total remount of each deposit
.and cia or about the Sth day of each month we will generate a statement
reflecting the total monthly charge and how we arrived at the calculation.
Your account will be charged at that time for the a~aount of the discount.
7o ease your reconciling burden, may we suggest that when preparing your
deposit you group your drafts within the appropriate discount percentage
and prepare a deposit for each group. This precedure will allow you to
calculate the discount and confirm the amount of our monthly charge to
your account, l]~e minimum monthly charge will be
:ks you k~ow your floor limits for ?.lastercard and Visa are $50.00 and $75.90
respectively. Through analyzing a users telephone authorization report we
have dete~nined that many calls are being made to verify a~:]ounts which are
within your authorization limits. These procedures are not only unnecessary
but also add to our processing costs as we are charged $.6S on every
verification made.
'/4 CAMARITAS AVENUE
~OUTH SAN FRANCISCO. OALIFORNIA
Phone: 583.8450
We have for sometime absorbed the cost of verification ca]Is, even those
which are not required. However, commencing January 1, 1984 we will pass
along to our customers the $.6S telephone charge when the verification is
not necessary as the amount is within your limit. Of course we will
continue to absorb the cost when a call is required as the credit card
number appears on a warning bulletin.
As in all changes, there will be some confusion and questions which require
special attention. Please contact the undersigned should you have any
problems or inquires on these revised procedures,
Thank you for your cooperation.
Yours very truly,
MARIBETH REGADANZ
ASSISTANT VICE PRESIDENT
BRANCH MANAGER
FIRST NATIONAL BANK
74 CAMARITAS AVE. · SO. SAN FRANCISCO 94080 · (415) 583-8450
CITY OF SOUTH SAN FRANCISCO
S19nature (City Mana§er)
May 16, 1985
Date
City Clerk.
lETTER ADDENDUM TO EXHIBIT "1"
FIRST NATIONAL BANI<
BDRi BURI OFFIOE
Dear Customer:
Due to continued increases in p~ocessing costs, we find it necessary to
revamp both the Method of handling Bankcard discounts and the percentage
charged on each draft.received. These charges will become effective
January 1, 1984.
The following details the revised percentages which will be Charged on
each draft processed.:
Draft Amount
Discount Percentage
$ .01 - 1S.pO 6%
1S.O1 - 50.00 5%
50.01 ......100.00 ~ .... ' ...... 4% .....
100.01 - &nd over
Effective January 1, 1984, you will no longer calcul~te the discount on
your deposit. You Will be credited for the total mmount of each deposit
and en or about the Sth day of each month we will generate a statement
'reflecting the total monthly charge and how we arrived at the calculation.
Your account will be charged at that time for the amount of the discount.
To ease your reconciling burden, may we suggest that when preparing your
deposit you group your.drafts within the appropriate discount percentage
and prepare a deposit for each group. This procedure will allow you to
calculate the discount and confirm the amount of our monthly charge to
your account. Tb.e minimum monthly charge will be $3.00.
.4 you know your floor limits for Mastercard and Visa are $50.00 and $7S.00
respectively. Through-analyzing a users telephone authorization report we
have determ..ined that many calls are being made to verif}, amounts which are
within yo,~ authorization limits. 1%ese procedures are not only unnecessary
but also add to our processing costs as we are charged $.6S on every
verific.~tion made.
g4 CAMARITAS AVENUE
SOUTH SAN FRANCISCO. CALIFORNqA
Fl,o.,: 533.S450
~e have for sometime absorbed the cost of verification calls, even those
which are not required. However, commencing JanUary 1, 1984 we will pass
along to our customers the $.6S telephone charge when the verification is
not necessary as the amount is within your limit. Of course we will
continue to absorb the cost when a cal~ is required as the credit card
number appears on a warning bulletin.
As in all changes, there will be some confusion and questions which require
special attention. Please contact the undersigned should you have any
problems or inquires on.these revised procedures.
Thank you for youF cooperation.
Yours very truly,
MARIBETH REGADANZ
ASSISTANT VICE PRESIDENT
BRANCH MANAGER
FIRST NATIONAL BANK
74 CAMARITA$ AVE. * $O. SAN FRANCISCO 940~0 - (415) ,5~3-.~450