(NFS-OSG) Addendum to NFS Operating and Settlement Guidelines - NPCI

 
(NFS-OSG) Addendum to NFS Operating and Settlement Guidelines - NPCI
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

   Addendum to NFS Operating
    and Settlement Guidelines
             (NFS-OSG)
     - JCB & UPI ATM Acquiring

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                Page 1 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

                                  Document History
Version Issue Date          Author      Reviewed   Approved           Revision History
                                           by         by

                           Mr. Pankaj   Mr. Gururaj  Mr. Ram
  1.0         Jan, 2017                                           Addendum to NFS-OSG
                            Samarth         Rao     Sundaresan     - JCB & UPI ATM Acquiring

                           Mr. Pankaj   Mr. Gururaj  Mr. Ram
  1.1     May, 2017                                               ATM Access fee related
                            Samarth         Rao     Sundaresan     information is updated.

                                                                  Implementation of EMV –
                           Mr. Pankaj   Mr. Gururaj  Mr. Ram       ATM liability Shift.
  1.2         Jan , 2019
                            Samarth         Rao     Sundaresan    EMV - ATM Fraud liability
                                                                   shift related Chargeback
                                                                   reason codes updated.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                       Page 2 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Table of Contents
  1.1        Overview ...................................................................................................................... 5
  1.2        Compliance ................................................................................................................... 5
  1.3        Transaction Type ........................................................................................................... 5
  1.4        Bin Maintenance ........................................................................................................... 5
  1.5        Acceptance of Cards ...................................................................................................... 5
  1.6        Captured Cards ............................................................................................................. 5
  1.7        Interchange and Switching Fee ...................................................................................... 6
  1.8        Arbitration fees .............................................................................................................. 6
  1.9        Goods and Services Tax (GST) ........................................................................................... 7
  1.10       ATM Access Fee............................................................................................................. 7
  1.11       Clearing and Settlement ................................................................................................ 8
     1.11.1          Network & Transaction Cutover ................................................................................................... 8
     1.11.2          Settlement Reporting and Reconciliation..................................................................................... 8
     1.11.3          Settlement Account and Currency ............................................................................................... 9
     1.11.4          Settlement Schedule .................................................................................................................... 9
     1.11.5          EMV ATM Fraud Liability shift ...................................................................................................... 9

  1.12       JCB transaction Life Cycles and turnaround times ......................................................... 10
  1.13       JCB Retrieval Request and Response Reason codes ...................................................... 11
  1.14       JCB Chargeback Reason Codes ..................................................................................... 12
     1.14.1          RC 1068 - Cash not received ....................................................................................................... 12
     1.14.2          RC 1084 - Duplicate Processing .................................................................................................. 13
     1.14.3          RC 1081 - Transaction not settled within the specified timeframes .......................................... 14
     1.14.4          RC 0548 – IC Liability Shift .......................................................................................................... 16

  2. Message Text mentioned in chargeback section above is indicative and not to be considered
  as mandatory ......................................................................................................................... 17
  1.15       UPI Transaction Life Cycles .......................................................................................... 17
  1.16       UPI Turnaround Times ................................................................................................. 18
     1.16.1     Dispute Life Cycles and Turn-around Time (TAT) for UPI PIN-based Debit Card and Prepaid Card
     transactions: ................................................................................................................................................ 18
     1.16.2     Turnaround Time for Credit Card /Signature-based Debit Card/Signature-based Prepaid Card
     transaction ................................................................................................................................................... 19

  1.17       UPI Inquiry & Retrieval Reason Codes .......................................................................... 20

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                                                                                    Page 3 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

  1.18     UPI Chargeback Reason codes ..................................................................................... 21
     1.18.1       RC 1065 - Cash not received ....................................................................................................... 21
     1.18.2       RC 1071 – Dispute on Debit Adjustment .................................................................................... 22
     1.18.3       RC 1072 – Fees Refund for Unsuccessful Balance Enquiry ......................................................... 23
     1.18.4       RC 1121 – Transaction received Decline Authorization response .............................................. 24
     1.18.5       RC 4562 – Counterfeit Card ........................................................................................................ 25

  Note: Message Text mentioned in chargeback section above is indicative and not to be
  considered as mandatory ....................................................................................................... 26
  1.19     ATM Transaction Receipt Requirement ........................................................................ 26
     1.19.1       Data Retention ........................................................................................................................... 27

  1.20     Stand-In Functionalities ............................................................................................... 27
  1.21     ATM Maintenance Requirements ................................................................................ 27

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                                                                             Page 4 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.1           Overview
This section deals with acceptance of Japan Credit Bureau (JCBI) / Union Pay International (UPI)
Cards at NFS ATM Network. The section specifies the requirements and rules for Daily Clearing,
Settlement and Dispute Management of JCB/UPI Cards used at NFS ATM Locations in India.

1.2           Compliance
All members participating in the NFS Network are expected to comply with the guidelines as
mentioned in this section and also with the guidelines issued from time to time in addition to the
provisions specified in the NFS Operating and Settlement Guidelines (NFS - OSG).

1.3           Transaction Type
The below mentioned transaction types will be supported in NFS network for JCB/UPI cards:

    1. Cash Withdrawal
    2. Balance Enquiry

1.4           Bin Maintenance
It is mandatory on the part of all Acquirers to update JCB and UPI BINs in their BIN table / system
within Five (05) working days from the date of receiving the updated version of the BIN list from
NPCI. This BIN table shall be used by the Acquirers to route transactions to the NFS switch which will,
in turn, route the transactions to the JCB/UPI switch and eventually to the appropriate issuers. The
Acquirers who are not in a position to do this BIN maintenance due to any reason must inform NPCI
in writing within 5 days of getting the updated BIN list.

1.5           Acceptance of Cards
It is obligatory on the part of the Acquiring Members to treat JCB / UPI cards as any other NFS card
so long as they continue to be members of the NFS Network and hence the banks should ensure that
these cards are accepted at all ATMs participating in the NFS Network.

1.6           Captured Cards
Under no circumstances should the ATMs participating in the NFS network capture the cards
belonging to JCB / UPI Network, unless specifically informed by NFS or legally required to do so.
However, this is not applicable in case of ATM malfunctioning or cards left in the ATM machine by
the customer after the transaction is completed.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 5 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

The following points describe the approach that members need to adopt with respect to captured
cards in case of ATM malfunctioning or cards left in the ATM by the customer after the transaction is
completed:

The acquiring member should not send the captured card to the issuing member. The captured card
should be properly accounted for by the acquiring member and destroyed by cutting across the
magnetic stripe vertically. As a best practice, the particulars including the reason for card capture
should be communicated by Acquiring member to the Issuing Bank.

The customer should be advised through receipt or message on the screen to contact the issuing
member bank to report card captured by the ATMs.

The issuing member, upon receiving information on card capture, should block the card and arrange
to issue fresh card at the earliest.

1.7           Interchange and Switching Fee
The Interchange fees structure is given below which is subject to a periodic review by NPCI.

Partner          Transaction        Gross              NPCI/Partner           Net              Access Fee
                 Type               Interchange        authorization          Interchange
                                    per                fee (Charged           per approved
                                    approved           to Acquirer)           transaction to
                                    transaction                               Acquirer
                                                                                               As per current
                 Financial             $ 1.375            $ 0.225*                $1.15
                                                                                               practice
  UPI
                 Non –
                                       $ 0.25             $ 0.135*                $0.12        N.A.
                 Financial
                                                                                               As per current
  JCB            Financial             $ 2.25              $ 0.10                 $2.15
                                                                                               practice
* Authorization fee of UPI and NPCI

 The above fees are exclusive of all taxes and applicable to only approved transactions. Members
and NPCI will be responsible for payment of applicable taxes on interchange and switching fees
respectively. The interchange and switching fees in its INR value will depend on the exchange rates
determined by JCB/UPI/NPCI.

NPCI shall have the right to regulate the switching fees from time to time.

1.8           Arbitration fees
Arbitration fees with applicable GST are assessed as follows for both JCB and UPI transactions

    I.        NPCI will charge arbitration initiation fee of USD 250 when NPCI member raises an
              arbitration. If the JCB issuer accept the acquirer claim then amount will be refunded back
              to NPCI member.
    II.       NPCI will charge arbitration decision fee of USD 250 if NPCI acquiring member is
              determined to have financial responsibility for the transaction.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                               Page 6 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.9           Goods and Services Tax (GST)
The GST on interchange fee and switching fee will be the responsibility of the member and NPCI
respectively.

1.10          ATM Access Fee
NPCI Acquiring member bank can charge an ATM access fee on Cash withdrawal transactions by
JCB/UPI network cards under the following conditions:

An Acquirer shall visibly display operating instructions and notice of access fee charges on the
screens, and provide the option for Cardholders to continue or cancel the transaction. The notice of
fees / charges shall be displayed in a clear manner.

An Acquirer shall properly and separately send the ATM access fee in Field Data Element 28 in the
online message.

Access Fees levied for cash withdrawal transactions done by JCB/UPI card holders on Bank’s ATMs.

Access Fees details in DSR:

A separate line item shall be made available in Daily Settlement Report (DSR) for JCB / UPI-C / UPI-D
transactions and access fees levied by the bank.
The DSR will have following description:

Description for JCB ATM transactions in DSR:

‘Acquirer WDL JCB Access Fee’ – This will have access fee amount only.
‘Acquirer WDL JCB Transaction Amount’ – This will have transaction amount settled excluding access
fee amount.

Description for UPI ATM transactions in DSR:

‘Acquirer WDL UPI Access Fee’ - This will have access fee amount only.
‘Acquirer WDL UPI Transaction Amount’ - This will have transaction amount settled excluding access
fee amount.

The settlement report and raw data file format will remain same, however value in the transaction
amount field shall contain transaction amount including the access fee amount. Access fee amount
shall also be separately made available in another field in settlement report and raw data file.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                            Page 7 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Details of raw data fields:

Field     Description                     Particulars                        Start position- Length
                                                                             end position

ATTRN$ Transaction Amount                TXN Amount + Access Fee             167 -181          15

ATATR$    Actual Transaction Amount      Dispensed Amount + Access Fee       182 -196          15

ATTRFE    Trans Activity Fee             Access Fee only                     197 -211          15

ATASA$    Acquirer Settlement Amount     Settled Amount + Access Fee         215 -229          15

ATASF$    Acquirer Settlement Fee        Access Fee only                     230 -244          15

The access fee will be displayed separately to the user during the transaction search and while
raising disputes / adjustments in NFS-DMS.

An Acquirer shall not discriminate JCB/UPI cards and apply an access fee greater than other standard
Card Brand’s cards.

1.11          Clearing and Settlement
    1. ATM transactions will be on SMS 0200 message for acquirers.
    2. Business cutover will be at 23.00 Hours (NPCI switch cutover).
    3. All approved transaction from previous day’s 23:00 hrs to current day’s 23:00 hrs shall be
       considered for settlement
    4. Raw data files and settlement reports will be available in NFS Dispute Management System
       (DMS) for members on the next day (T+1).
    5. Settlement entries shall be posted on T+1 day basis. For second and fourth Saturdays,
       Sundays and RTGS holidays, the settlement entries will be posted on the next working day.
       In case of any change, it shall be communicated to the members.

1.11.1 Network & Transaction Cutover
NPCI reserves the right to decide the NFS Network cut over time, which at present is, 23.00 hours.

1.11.2 Settlement Reporting and Reconciliation
NFS Member will have DMS access to download the settlement and reconciliation reports, and to
raise disputes / adjustments.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 8 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Raw data files, STL reports, adjustment reports, etc. shall be made available to member banks in
DMS on T+1 day.

Daily settlement report (DSR / NTSL) shall be made available on the day when settlement entries are
posted. Separate line item shall be available in DSR for JCB / UPI-C / UPI-D transactions and access
fee.

Separate column shall be available in Adjustment report to indicate transaction type viz. JCB, UPI-C
or UPI-D. There is separate dispute cycle for each of the transaction type (As given below).

1.11.3 Settlement Account and Currency
The settlement of all JCB/UPI transactions will take place in the current account / settlement
account maintained by member bank / Sponsor bank with Reserve Bank of India (RBI) and which is
currently used for NFS Settlement. However, the settlement shall be done with separate product
code for settlement of JCB/UPI card transaction on NFS ATM network. This will help member banks
to identify the entries in their RBI settlement account.

All the JCB/UPI ATM withdrawals / balance Enquiry done through NFS Network shall be settled in
Indian Rupees only. However the Interchange and Switching Fees (which are in USD) will be
converted in to INR using exchange rate applicable for respective schemes i.e. JCB/UPI scheme. The
exchange rate will be communicated to members by NPCI in daily settlement report (DSR/NTSL).

1.11.4 Settlement Schedule
Settlement will be executed for JCB transactions for six (6) days in a week which would be reckoned
from Monday to Saturday. The business day shall be the working day for NPCI and RBI at Mumbai.

1.11.5 EMV ATM Fraud Liability shift
The EMV ATM Liability Shift Principles will apply to fraudulent transactions taking place for JCB and
UPI chip cards accepted at ATM terminals located in India.

The EMV ATM liability shift rules and regulations shall be applicable as per respective schemes (JCB
and UPI). The disputes rights of Issuer and Acquirer on Chargebacks, Representment, etc. are given
in section 1.14 for JCB Cards and 1.18 for UPI Cards.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                            Page 9 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.12          JCB transaction Life Cycles and turnaround
              times
JCB cards used at NFS Networks shall follow the below Life Cycles.

                                                                    TAT - CALENDAR DAYS
LIFE CYCLES IN JCB                                            INCOMING TO      OUTGOING TO
                                                              ACQUIRER         ACQUIRER
DEBIT ADJUSTMENT - FOR DEBIT CARD**                                 NA               10
DEBIT ADJUSTMENT - FOR CREDIT CARD**                                NA               10
CREDIT ADJUSTMENT                                                   NA               360
RETRIEVAL REQUEST – ORIGINAL/COPY                                  370               NA
RETREIVAL FULFILMENT-ORIGINAL/COPY                                  NA               25
RETRIEVAL RESPONSE NON FULFILMENT                                   NA               25
CHARGEBACK*                                                        125               NA
TIME FRAME FOR PROVIDING CHARGEBACK SUPPORTING
                                                                       7                    NA
DOCUMENTS (Optional)
CHARGEBACK REVERSAL( IF REPRESENTMENT IS NOT
                                                                      50                    NA
RAISED)
REPRESENTMENT                                                         NA                    40
TIME FRAME FOR REPRESENTMENT SUPPORTING
                                                                      NA                     3
DOCUMENTS
SECOND CHARGEBACK                                                     50                    NA
SECOND CHARGEBACK REVERSAL( IF PRE-ARB IS NOT
                                                                      50                    NA
RAISED)
PRE-ARBITRATION                                                       NA                    15
PRE- ARBITRATION RESPONSE- ACCEPTANCE                                 20                    NA
PRE- ARBITRATION RESPONSE- DECLINE                                    20                    NA
ARBITRATION                                                           NA                    40
ARBITRATION RESPONSE (WITHDRAWAL OR
                                                                      50                    NA
ACCEPTANCE)
ARBITRATION CONTINUATION                                              50                    NA
ARBITRATION VERDICT                                                   60                    60

* JCB Issuer can raise multiple chargeback (9 times) on a single transaction by using different charge
back reason code from earlier chargeback/s (Only after representment). NPCI acquiring member
bank can either accept or represent the Chargeback as per the Dispute Reason codes.

** For Debit adjustment raised after time frame, acquirer shall bear the liability for chargeback
raised by issuer under late presentment.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                              Page 10 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.13          JCB Retrieval Request and Response Reason
              codes
JCB Issuer can raise Inquiry under below Reason codes.

    Reason
                                        Description
     Code
     0000      Others
     0001      Signature Confirmation
     0002      Required for corporate card accounting
     0003      Required for Legal/Regulatory issues
     0004      Lost Card, Fraud Investigation
     0005      Cardholder does not recognize the transaction
     0006      Cardholder Claims incorrect amount or disputes amount

NPCI acquirers need to fulfil the retrieval request providing correct EJ/ JP copy within the stipulated
timeframe from the date it is informed by NPCI.

NPCI acquirers can also non-fulfil the retrieval request under below reason codes.

    Reason
           Description                                        Time Frame
    Code
               Necessary Information missing for
      1041                                                      25 Days
               Retrieval Request raised
      1043     Acquiring institution will not fulfil            25 Days
      1044     The request contains erroneous data              25 Days
      1045     Transaction document lost                        25 Days
               Cannot locate the depository of the
      1046                                                      25 Days
               transaction document

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                               Page 11 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.14          JCB Chargeback Reason Codes
JCB issuer can raise Chargeback on ATM transactions under the below reason codes:

1.14.1 RC 1068 - Cash not received
First Chargeback Conditions:
 Time Frame             Acquirer can receive Chargeback until 125 days from the transaction
                        processing date.
 Conditions             Card member did a transaction at an ATM but did not receive the
                        requested amount only or received only a portion of the amount

 Message Text           Cash not dispensed

 Amount                 Full amount in case no cash is dispensed.
                        Partial amount not received in case of a partial dispense from ATM.
 Supporting             Card member’s dispute letter stating date and time, location, the
 Documentation          amount of Transaction which was not dispensed
 Time Frame for         NFS Acquirers may receive the supporting documentation within 7
 Supporting             days. This is an optional task at Issuer end.
 Documentation
 Retrieval Request      No
 Required

Representment Conditions:
 Time Frame             Acquirers need to initiate representment within 40 days from First
                        Chargeback
 Conditions             1. Issuing Institution did not meet the applicable Chargeback Condition
                        2. Acquirer has additional information to refute Issuer’s claim
                        3. Supporting documentation provided is illegible/insufficient or not
                        provided within timeframe
                        4. Reason code used in not applicable for the transaction
                        5. Credit or reversal was processed.
 Reason Code            0601 - Additional Information
                        0602 - Chargeback Documentation Not Received or Incomplete
                        0603 - Chargeback Invalid
                        0604 – Other
 Message Text
                        NA
 Supporting             For Condition 1, 2, 3 & 4, evidence that the First Chargeback is invalid.
 Documentation          For Condition 5, actual posting date, and credit receipt if available
 Time Frame for       Acquirers need to provide the supporting documentation within 3 days
 Supporting
 Documentation
Note: Second Chargeback is not allowed for this reason code.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 12 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.14.2 RC 1084 - Duplicate Processing
First Chargeback Conditions:
Time Frame            Acquirer can receive Chargeback till 125 days from the transaction
                      processing date
Conditions            1. One Acquirer processed the same Transaction more than once, or
                      2. Two acquirers or more processed the same transaction. The second
                      or succeeding transaction needs to be Charge backed

Message Text          Message text must state the Acquirer Reference Number of the
                      Duplicate transaction
Amount                Full amount of the duplicate transaction
Supporting             For condition 1, ARD for each Transaction and, where relevant, a
Documentation          photocopy of the Card member’s copy of the Sales Draft
                       For condition 2, the first transaction receipt retrieved from the first
                       Acquirer
Time Frame for        NFS Acquirer may receive the supporting documentation within 7 days
Supporting
Documentation
Retrieval Request     Required for Condition No. 2
Required

Representment Conditions:
 Time Frame          Acquirers need to initiate representment within 40 days from First
                     Chargeback

 Conditions          1. Issuing Institution did not meet the applicable Chargeback Condition
                     2. Acquirer has additional information to refute Issuer’s claim
                     3. Supporting documentation provided is illegible/insufficient or not
                     provided within timeframe
                     4. Reason code used in not applicable for the transaction
                     5. Credit or reversal was processed.
 Reason Code         0601 - Additional Information
                     0602 - Chargeback Documentation Not Received or Incomplete
                     0603 - Chargeback Invalid
                     0604 – Other
 Message Text        Acquirer must state the reason for representment
 Supporting          For Condition 1, 2, 3 & 4, evidence that the First Chargeback is invalid.
 Documentation            For Condition 5, actual posting date, and credit receipt if
                            available
 Time Frame for      NFS Acquirers need to provide the supporting documentation within 3
 Supporting          days
 Documentation

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                          Page 13 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Second Chargeback Conditions:
 Time Frame             Acquirer can receive Chargeback within 50 days from the
                        representment date

 Conditions             1. Invalid representment raised by acquirer.
                        2. Additional information provided by Issuer to refute Acquirer’s claim
                        3. Supporting documents provided for representment are insufficient or
                        illegible or not provided within 3 days after the representment date.
 Amount                 Full transaction Amount
 Supporting             1. For condition 1, 3, 4, evidence that the Representment is invalid.
 Documentation          2. For condition 2, additional information.
 Time Frame for         NFS Acquirer may receive the supporting documentation within 7 days
 Supporting
 Documentation
Note: Post second chargeback, NPCI acquiring member will need to follow pre-arbitration and
arbitration life cycle.

1.14.3 RC 1081 - Transaction not settled within the specified
       timeframes

First Chargeback Conditions:
 Time Frame             Acquirer can receive Chargeback till 125 days from the transaction
                        processing date

 Conditions             any transaction which is settled by the acquirer after 10 days from the
                        transaction date

 Message Text           Message text must state why the transaction is uncollectible
 Amount                 Full transaction Amount
 Supporting             NA
 Documentation
 Time Frame for         NA
 Supporting
 Documentation
 Retrieval Request      No
 Required

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                            Page 14 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Representment Conditions:
Time Frame            Acquirers need to initiate representment within 40 days from First
                      Chargeback

Conditions            1. Transaction settled within10 days from transaction date
                      2. Additional information provided by Acquirer to refute Issuer’s claim
                      3.Issuing institution did not meet the applicable chargeback condition
                      4. Credit or reversal was processed.
Reason Code           0601 - Additional Information
                      0602 - Chargeback Documentation Not Received or Incomplete
                      0603 - Chargeback Invalid
                      0604 – Other
Message Text          State the reason for Representment
Supporting            1. Evidence that the First Chargeback is invalid.
Documentation         2. Actual posting date, and credit receipt if available
Time Frame for        NFS Acquirers need to provide the supporting documentation within 3
Supporting            days
Documentation

Second Chargeback Conditions:
 Time Frame            Acquirer can receive Chargeback within 50 days from the
                       representment date

 Conditions            1. Invalid representment raised by acquirer.
                       2. Additional information provided by Issuer to refute Acquirer’s claim
                       3. Supporting documents provided for representment are insufficient or
                       illegible or not provided within 3 days after the representment date.
 Amount                Full transaction Amount
 Supporting            NA
 Documentation
 Time Frame for         NFS Acquirer may receive the supporting documentation within 7 days.
 Supporting             This is an optional task at Issuer end.
 Documentation
 Retrieval Request      No
 Required
Note: Post second chargeback, NPCI acquiring member will need to follow pre-arbitration and
arbitration life cycle.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                           Page 15 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.14.4 RC 0548 – IC Liability Shift

First Chargeback Conditions:
Time Frame            Acquirer can receive Chargeback till 125 days from the transaction
                      processing date
Conditions            1. Cardmember makes a written complaint that a Transaction was not
                           participated in or authorized.
                      2. Transaction is initiated in IC Liability Shift region, and Issuer is in IC
                           Liability Shift region.
                      3. Transaction is confirmed as counterfeit by Issuer, and the Card was
                           submitted for a Stop List by the date the Chargeback was issued.
                      4. Service Code encoded on the magnetic stripe proves that the Card
                           used for the Transaction is an IC JCB Card, but the Transaction is not
                           generated from an IC Terminal. A Fallback Transaction is considered
                           to be a Transaction generated from an IC Terminal.
Message Text          Message text must state the Chargeback qualify for the EMV liability
                      shift policy.
Amount                Full amount
Supporting            Copy of the Cardmember’s dispute letter
Documentation
Time Frame for        NFS Acquirer may receive the supporting documentation within 10 days
Supporting
Documentation
Retrieval Request     No
Required

Representment Conditions:
 Time Frame          Acquirers need to initiate representment within 40 days from First
                     Chargeback date
 Conditions          One of the following:
                         1. Acquirer can prove that the First Chargeback does not meet the
                             condition and is invalid.
                         2. Acquirer can prove that the Transaction was authorized by
                             Cardmember.
                         3. Issuer did not provide Supporting Documents within 10 Business
                             Days after the First Chargeback Date.
                         4. Chargeback code used for the First Chargeback is not applicable
                             to the Transaction.
                         5. The Acquirer has already issued Credit for the Transaction prior
                             to the First Chargeback.
 Supporting          The following correspond to the condition above:
 Documentation           1. For condition 1, 2, 3. 4, evidence that the First Chargeback is
                             invalid.
                         2. For condition 5, actual posting date, and credit receipt if
                             available.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 16 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

 Time Frame for         NFS Acquirers need to provide the supporting documentation along with
 Supporting             representment
 Documentation

Second Chargeback Conditions:
 Time Frame              Acquirer can receive Chargeback within 50 days from the
                         representment date
 Conditions              One of the following:

                             1. Representment did not meet the condition and is invalid.
                             2. Issuer has additional information which can be provided to
                                 refute Acquirer’s Representment.
                             3. Acquirer did not provide Supporting Documents within 5
                                 Business Days after the Representment Date.
                             4. Supporting Documents required for the Representment are
                                 insufficient or illegible.
 Supporting              The following correspond to the condition above:
 Documentation
                            1. For condition 1, 3, 4, evidence that the Representment is
                                 invalid.
                            2. For condition 2, additional information.
 Time Frame for          NFS Acquirer may receive the supporting documentation within 10
 Supporting              days. This is an optional task at Issuer end.
 Documentation
Note:
    1. Post second chargeback, NPCI acquiring member will need to follow pre-arbitration and
       arbitration process.
    2. Message Text mentioned in chargeback section above is indicative and not to be considered
       as mandatory

1.15          UPI Transaction Life Cycles
UPI cards used at NFS Networks shall follow the below different set of Life Cycles which will be
identified basis the Card Type marked against each Bin in Bin Management file. If the Card Type is
marked as “D” then the transaction will follow Pin Based Life Cycle and if the Card Type is marked as
“C” then the transaction will follow Signature Based Life Cycle.

It is Mandatory for Acquirers to respond to Inquiry and Retrieval Request. Acquirers will lose their
representment rights in case they do not respond to Inquiry or Retrieval Request raised by UPI
issuers.

In case of rule violations or no dispute rights available, UPI issuers can raise a Pre-compliance against
Acquirers.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                               Page 17 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.16          UPI Turnaround Times
1.16.1        Dispute Life Cycles and Turn-around Time (TAT) for UPI PIN-
              based Debit Card and Prepaid Card transactions:
                                                           TAT - CALENDAR DAYS
LIFE CYCLES IN UPI                         INCOMING TO              OUTGOING FROM
                                           ACQUIRER                 ACCQUIRER
First Inquiry                                      370                         NA
First Inquiry Response                             NA                           7
Second Inquiry                                     370                         NA
Second Inquiry Response                            NA                           3
Retrieval Request                                  370                         NA
Retrieval Request Fulfilment(w/o
                                                        NA                          25
Inquiry)
Retrieval Request Fulfilment(after
                                                        NA                          10
Inquiry)
Credit adjustment                                       NA                         175
Debit Adjustment*                                       NA                          15
Chargeback                                             185                          NA
Pre-Arbitration                                         NA                          25
Pre-Arbitration Accept                                  25                          NA
Pre-Arbitration Decline                                 25                          NA
Arbitration                                             NA                          55
Arbitration Withdraw                                    NA                          15
Arbitration Accept                                      25                          NA
Arbitration Continue                                    25                          NA
Arbitration Verdict                                     50                          50
For the below life cycles, NPCI will coordinate with its members thru e-mail for response /
document and necessary fund adjustment if any, will reflect in DSR.
Appeal on Arbitration Verdict                           35                          25
Response to Appeal                                     180                         180
Good Faith                                             370                         360
Good Faith Accept                                      370                         360
Good Faith Decline                                     370                         360
Pre-Compliance                                          95                          85
Pre-Compliance Accept                                   25                          15
Pre-Compliance Decline                                  25                          15
Compliance                                             125                         115
Compliance Withdrawal                                   25                          15
Compliance Accept                                       25                          15
Compliance Continue                                     25                          15
Compliance Verdict                                      50                          50
© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 18 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.16.2        Turnaround Time for Credit Card /Signature-based Debit
              Card/Signature-based Prepaid Card transaction

                                                             TAT - CALENDAR DAYS
LIFE CYCLES IN UPI
                                                 INCOMING TO                OUTGOING TO
                                                 ACQUIRER                   ACQUIRER
First Inquiry                                               370                        NA
First Inquiry Response                                      NA                          7
Second Inquiry                                              370                        NA
Second Inquiry Response                                     NA                          3
Retrieval Request                                           370                        NA
Retrieval Request Fulfilment(w/o Inquiry)                   NA                         25
Retrieval Request Fulfilment(after Inquiry)                 NA                         10
Credit adjustment                                           NA                         175
Debit Adjustment*                                           NA                         15
Chargeback                                                  185                        NA
Representment                                               NA                         25
Pre-Arbitration                                             35                         NA
Pre-Arbitration Accept                                      NA                         15
Pre-Arbitration Decline                                     NA                         15
Arbitration                                                 65                         NA
Arbitration Withdraw                                        25                         NA
Arbitration Accept                                          NA                         15
Arbitration Continue                                        NA                         15
Arbitration Verdict                                         50                         50
For the below life cycles, NPCI will coordinate with its members thru e-mail for response / document
and necessary fund adjustment if any, will reflect in DSR.
Appeal on Arbitration Verdict                               35                         25
Response to Appeal                                          180                        180
Good Faith                                                  370                        360
Good Faith Accept                                           370                        360
Good Faith Decline                                          370                        360
Pre-Compliance                                              95                         85
Pre-Compliance Accept                                       25                         15
Pre-Compliance Decline                                      25                         15
Compliance                                                  125                        115
Compliance Withdrawal                                       25                         15
Compliance Accept                                           25                         15
Compliance Continue                                         25                         15
Compliance Verdict                                          50                         50
*Acquirer should bear the liability for dispute raised against debit adjustment

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                           Page 19 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.17          UPI Inquiry & Retrieval Reason Codes
UPI Issuer can raise Inquiry under below Reason codes.

                                                                     Inquiry
         Reason
                Description                                            Time
          Code
                                                                      Frame
          1021    ATM Location Inquiry by Card member                370 Days
          1023    Transaction Result Inquiry by Card member          370 Days
          1025    Second Inquiry                                     370 Days

UPI Issuer can raise Retrieval Request under below Reason codes.

                                                                Retrieval
         Reason
                Description                                       Time
          Code
                                                                 Frame
                 Transaction Receipt Request by Card
          1026                                                  370 Days
                 member Directly
                 Transaction Receipt Request by Card
          1027                                                  370 Days
                 member after Responded Inquiry
          1004   Transaction Receipt Request by Justice         370 Days
                 Transaction Receipt Request for
          1005                                                  370 Days
                 Fraudulent Transactions

NPCI ATM acquiring member banks need to respond to Inquiry and retrieval request under the
below reason codes. Failure to respond to Inquiry or Retrieval request will lead to Chargeback which
cannot be represented against by NPCI acquiring member banks.

                                                                         If RR is        If RR is
 Reason                                                   Inquiry
        Description                                                      raised after    Raised
 Code                                                     Response
                                                                         Inquiry         Directly
           Successful Transaction, no surplus at
  1047                                                      7 Days          10 Days       25 Days
           Acquirer
  1048     Credit Adjustment Processed                      7 Days          10 Days       25 Days
  1049     Credit Adjustment to be Processed                7 Days          10 Days       25 Days

Note: It is mandatory for all NFS acquirers to fulfil any Inquiry or Retrieval Request raised by UPI
issuers failing compliance may be raised against the NFS acquirers for Non-fulfilment.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 20 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.18          UPI Chargeback Reason codes
Issuers have the right to return a disputed transaction as a Chargeback to NPCI. This will be subject
to conditions such as:

•       Timeframes for submitting the Chargeback

•       Conditions applicable to chargeback right

•       Whether Supporting Documentation (Electronic copy of the Transaction log etc.) is required

It is mandatory for UPI issuer to raise Inquiry or Retrieval request prior to raising Chargeback (except
for Balance inquiry transactions). NPCI will validate the Chargeback and then forward the
information to the Acquirer as a part of its Settlement Process. On successful fulfilling of the
Chargeback conditions, the dispute will be processed in favour of Issuer and against Acquirer. The
Issuer is credited and Acquirer is debited for the amount of charged back transactions during
Settlement.

Chargeback can also be raised on Unsuccessful Balance Inquiry transactions also.

UPI issuers can raise Chargeback under below reason codes for ATM transactions.

1.18.1 RC 1065 - Cash not received

Chargeback Conditions:
 Time Frame              Acquirer can receive Chargeback until 185 days from the transaction
                         processing date.

 Conditions              Card member did a transaction at an ATM but did not receive the
                         requested amount only received only a portion of the amount

 Message Text            Cash not dispensed

 Amount                  Full amount in case no cash is dispensed
                         Partial amount not received in case of a partial dispense from ATM
 Supporting              Card member’s dispute letter stating date and time, location, the
 Documentation           amount of Transaction which was not dispensed
 Inquiry Required        Required for Pin Based Life Cycle
                         Not required for Signature Based Life Cycle
 Retrieval Request       Required for Pin Based Life Cycle if Inquiry is not raised
 Required                Not required for Signature Based Life Cycle

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                              Page 21 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Representment Conditions:
Applicability        Not allowed for Pin Based Life Cycle
                     Allowed for Signature Based Life Cycle
                     Note: If Acquirer does not respond to the Inquiry and Retrieval Request
                     within time frame, it has no right of Representment.
Time Frame           Acquirers need to initiate representment within 25 days from First
                     Chargeback

Conditions           1. Issuing Institution did not meet the applicable Chargeback Condition
                     2. Acquirer has additional information to refute Issuer’s claim
                     3. Supporting documentation provided is illegible/insufficient or not
                     provided within timeframe
                     4. Reason code used in not applicable for the transaction
                     5. Credit or reversal was processed.
Message Text         Successful Transaction. Cash dispensed to Customer
Reason Code          2000- Refund or Credit Adjustment Processed
                     2002- Non-Receipt of Supporting Documentation
                     2702- Invalid Chargeback
                     2706- Acquirer Can Prove That The Transaction Is Correct.
                     2707-Illegible Supporting Documentation for Chargeback
Time Frame for       NFS Acquirers need to provide the supporting documentation within 3
Supporting           days
Documentation

1.18.2 RC 1071 – Dispute on Debit Adjustment

Chargeback Conditions:
Time Frame           Acquirer can receive Chargeback until 185 days from the transaction
                     processing date.
Conditions           Issuer can raise Chargeback under this reason code if cannot recover
                     the debit adjustment amount raised by acquirer on account of
                     customer account being closed.

Message Text         Account closed
Amount               Full amount
Supporting           Not required
Documentation
Inquiry Required     Required for Pin Based Life Cycle
                     Not required for Signature Based Life Cycle
Retrieval Request    Required for Pin Based Life Cycle if Inquiry is not raised
Required             Not required for Signature Based Life Cycle

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                          Page 22 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Representment Conditions:
Applicability        Not allowed for Pin Based Life Cycle
                     Allowed for Signature Based Life Cycle
                     Note: If Acquirer does not respond to the Inquiry and Retrieval Request
                     within time frame, it has no right of Representment.
Time Frame           Acquirers need to initiate representment within 25 days from First
                     Chargeback

Conditions           5. Credit or reversal was processed.

Message Text
                     Successful Transaction. Cash dispensed to Customer
Reason Code          2000 - Refund or Credit Adjustment Processed

Supporting           Acquirer should provide the date and system trace number of the
Documentation        refund

1.18.3 RC 1072 – Fees Refund for Unsuccessful Balance Enquiry

Chargeback Conditions:
Time Frame           Acquirer can receive Chargeback until 185 days from the transaction
                     processing date.
Conditions           A cardholder conducted a balance inquiry transaction at ATM. The
                     transaction is unsuccessful, but the balance inquiry fee is charged for
                     the transaction.

Message Text         Unsuccessful balance Enquiry
Amount               Amount should be equal to Balance Enquiry fee.
Supporting           Not required
Documentation
Inquiry Required     No

Retrieval Request    No
Required

Representment Conditions:
Applicability        Representment is not allowed for this reason code

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                          Page 23 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.18.4         RC 1121 – Transaction received Decline Authorization
               response

Chargeback Conditions:
Time Frame            Acquirers can receive Chargeback till 185 days from the transaction
                      processing date
Conditions            An Acquirer does not obtain authorization, or the transaction amount
                      is larger than the amount authorized.

                       Below are the situations which are considered as Acquirer not
                       obtaining an authorization;
                       i. Acquirer does not submit an authorization request.
                       ii. The Issuer does not response to the Acquirer’s authorization
                            request or declined the authorization request,
                       iii. The Acquirer cancelled or reversed the authorization approved
                            by the Issuer.

                      If the total transaction amount is larger than the amount
                      authorized, the Issuer can initiate a Chargeback toward the amount
                      exceeded;

                      This Reason Code is applicable to Debit Adjustment transactions
                      and manually-imprinted transactions
Message Text          Declined Authorization

Amount                Full transaction Amount
Supporting            Not Required
Documentation
Inquiry & Retrieval   Mandatory for PIN Based life Cycles. Not mandatory for Signature
Request Required      based life Cycles

Representment Conditions:
Time Frame            Acquirers need to initiate representment within 25 days from First
                      Chargeback.
Conditions            1. Acquirer specifies that the First chargeback Violates requirements
                          on rights and restrictions of using this Chargeback reason code
                      2. Transaction Authorized by Issuer.
Message Text           i. Invalid Chargeback
                       ii. Transaction authorized
Reason Code (         2008- Transaction Authorized by Issuer
Mandatory)            2702- Invalid Chargeback
Supporting            None
Documentation

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                        Page 24 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

1.18.5          RC 4562 – Counterfeit Card
Chargeback Conditions:
Time Frame             Acquirers can receive Chargeback till 185 days from the transaction
                       processing date
Conditions                 1. The terminal that accepts the suspicious counterfeit card
                               does not have the function of accepting UnionPay IC card
                               with debit/credit application.
                           2. The terminal failed to process the transaction according to
                               proper chip acceptance procedures but completed the
                               transaction through magnetic stripe.
                           3. The Acquirer failed to correctly identify the Fallback
                               Transaction in the online transaction message.
Message Text           cardholder denies the transaction

Amount                 Full transaction Amount
Supporting             The Cardholder’s written statement, which includes the following
Documentation          contents:
                            a) The Cardholder denies participating or authorizing others to
                                participate in the transaction.
                            b) The card was in the Cardholder’s possession at the time of
                                the disputed transaction.
                            c) The copies of the front and back of the card in dispute.
Inquiry & Retrieval    Optional
Request Required

Representment Conditions:
Time Frame            Acquirers need to initiate representment within 25 days from
                      Chargeback.

                      Note: An Acquirer has no right of Representment if it does not respond
                      to the Inquiry and Retrieval Request raised by the Issuer within the time
                      frame.
Conditions            Acquirer specifies that the chargeback Violates requirements on rights
                      and restrictions of using this Chargeback reason code.
Message Text               1. Refund processed
                           2. Issuing Institution did not meet the applicable Chargeback
                               Condition
Reason Code (         2000 - Refund or Credit Adjustment Processed
Mandatory)            2002 - Non-Receipt of Supporting Documentation
                      2702 - Invalid Chargeback
                      2706 - Acquirer can provide valid documentation to prove the accuracy
                      of transaction
                      2707 - Illegible Supporting Documentation for Chargeback
Supporting            Any of the following
Documentation             a) The Acquirer shall provide the written description of the date,

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                           Page 25 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

                               the amount, and system trace number of the Credit Adjustment
                               or Refund transaction.
                            b) The Acquirer shall provide copies of Transaction Receipts or
                               substitute documentation that meets the requirements herein.
                            c) The Acquirer shall provide the written description for non-
                               receipt of Chargeback supporting documentation.

 Note: Message Text mentioned in chargeback section above is indicative and not to be considered
       as mandatory

1.19          ATM Transaction Receipt Requirement
An ATM shall maintain Transaction Logs for successful and unsuccessful transactions.

An ATM shall provide an option for printing receipts for cash withdrawal transactions. If the printing
option is not available on an ATM, or a card is captured, the default setting shall be the automatic
printing of receipts. The receipt shall specify the transaction result or the reason for a decline.

In accordance with the requirements by the local regulator, four or more digits of the card number
preceding the Check Digit on an ATM Transaction Receipt should be truncated

Data                            Details                                  Mandatory/Non-
                                                                         Mandatory
Card Number                              At least last four digits of   Mandatory
                                          card account number
                                          should be clearly visible.
                                          The remaining digits of
                                          card account number
                                          could be masked.
                                         No over writing is
                                          allowed.
Transaction Date                         Date of transaction            Mandatory
                                          should be clearly visible
                                          on receipt
                                         No over writing is
                                          allowed
Transaction Time                         Transaction Time should        Mandatory
                                          be clearly visible.
                                         No over writing is
                                          allowed
Transaction Type                         Transaction Type should        Optional
                                          be clearly visible on
                                          charge slip copy
                                         No over writing is
                                          allowed

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                             Page 26 of 27
Addendum to NFS-OSG for JCB & UPI ATM Acquiring

Response Code                           Response code should be       Optional
                                         clearly visible on charge
                                         slip copy
                                        No over writing is
                                         allowed
Retrieval Reference                     last 6 digit of RRN or ATM    Mandatory
Number                                   transaction number
Transaction Amount(                     Total transaction amount      Mandatory
Amount disbursed)                        should be clearly visible
Terminal ID (TID)                       Terminal ID (TID) should      Mandatory
                                         be clearly visible

1.19.1 Data Retention
An Acquirer shall ensure that transaction receipts, including paper records or digitised record,
electronic receipts and systematic transaction data (including successful and unsuccessful
transactions), are kept for at least one period of 13 months from the transaction date. The related
data backup system or disk shall hold the last 5 years transaction data. However, bank may follow
internal practice after 5 years to keep the data.

NPCI will keep transaction data by default for 13 months in its online system for member access.

1.20          Stand-In Functionalities

NPCI will not support Stand-In functionalities for this arrangement.

1.21          ATM Maintenance Requirements
NPCI Acquirers shall regularly maintain ATM terminals and ensure that the ATM is in good condition
and capable of processing JCB/UPI Card transactions.

© COPYRIGHT National Payments Corporation of India. Proprietary information of National
Payments Corporation of India. All rights reserved.
Version 1.2                                                                           Page 27 of 27
You can also read
Next slide ... Cancel