Hello,

We tried to make a charge in Adagio Payments and had a problem. Our customer in Australia sent us an email saying "Our credit card system in Australia now requires that a temporary passcode be sent to a mobile phone that has to be written in to the payment box when making overseas transaction payments. I will send you a bank cheque by mail with the invoice attached."

In checking on the internet I can't find much on Australia but I see that the EU will have new requirements soon called PSD2. One article says "PSD2 obliges payment service providers to apply so-called “strong customer authentication” (SCA) when a payer initiates an electronic payment transaction. Banks and other payment service providers will have to put in place the necessary infrastructure for SCA. They will also have to improve fraud management. Merchants will have to be equipped to be able to operate in a SCA environment."

Does anyone know what is coming down the pike and how will it affect businesses using Adagio Payments?

Thanks,

Rick McLeod
Sunbeam Specialties, Inc.

Hello Rick,

You are not being ignored.

We are not the specialists in this area so this question has been forwarded to APS Payments.

Hello Rick,

Thank you for the post and the phone conversation on Monday. The APS Payments Integration team is currently researching your post. Once we have an answer the APS Payments team will directly notify you, but we will also update this forum post, so others can be informed as well.

Kindest regards,

Joe Geusic
APS Payments - Adagio Channel Manager

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Hello,

There are definitely some problems now. We tried to vault an Aussie card today with no credit card charge and received the message "Issuer Declined", a message that we have never received before. The customer verified that all of the card info we entered was correct. We expect to see specific info saying that the address or security code is incorrect, not "Issuer Declined". A picture of the error is attached. APS is looking into it now.

Australia does not like overseas purchases. This is fairly recent. "Australia now requires out-of-country online retailers that do more than $75,000 (Australian) in annual sales in Australia to collect a 10 percent Goods and Services Tax (GST) on all sales to Australian consumers."

Rick:

I don't think the fact that Australian wants anyone with sales over $75K to collect their GST is preventing the use of their credit cards.

Many US states that charge sales state already require that you collect it regardless of where (in the world) you are based. Very soon this will apply to all states that charge sales tax. The typical threshold is $100K in any given state.

If you have sales to Canada over $30k you are suppose to collect Canada GST. If sales are to one of the provinces that charges sales tax then you are required to collect that as well.

This is just the reality of the modern world with online sales.

As far as I know, no country is forcing the credit card issuers to make sure their sales tax is being collected and/or to deny foreign companies from using locally issued cards.

Hello Douglas,

The failure to vault the card # was a false alarm. The security code was incorrect and the customer corrected it today and his card was successfully charged. Their rejection notice was unusual for security code error.

We have American customers who have signed up for additional security and request an SMS message be sent to them for approval. In England this will be a requirement soon and it looks like it is on the way in the EU also. I can't find much info on Australia.

Rick