Attention!
The card networks require you include the sales tax amount for certain Commercial Card transactions to get an optimal interchange rate. Commercial Card Interchange Service (CCIS), was created by FDR to meet this requirement. Your POS device may prompt for that information but often that prompt is bypassed for various reasons, so no tax information is sent with the transaction. With the CCIS service, when transactions do not include any tax information, CCIS computes the sales tax based on the applicable rate at your location; however, when FDR computes the sales tax on your behalf, FDR will retain the interchange savings. You will see this reflected on your monthly statements as “Comm Card I/C Savings Adj”. This adjustment is only applied when CCIS has optimized your interchange qualification and does not increase the original cost of your transactions. If a transaction is fully or partially exempt, you should enter the tax amount as CCIS applies your local tax rate to the full amount of transactions when the prompt is bypassed. This processing service will begin on January 1, 2022 and you may see this information beginning with your January statement. Please call the customer service number on the statement if you have questions or would like to opt out. Otherwise, continuing your merchant account with us or use of your merchant account after 30 days will represent your acceptance of these terms.
Merchants Frequently Asked Questions:
Interchange fees collected on some Commercial Card transactions? Some card networks require additional information beyond the total sales amount to qualify the Commercial Card transaction for a lower interchange rate. This information includes sales tax amount.
How does the service work? The back end processor will compute and submit the required sales tax to the Card networks on your behalf for applicable Commercial Card transactions when prompted for but not supplied in your submission. This additional data allows these transactions to qualify for a lower interchange rate that reduces your interchange cost.
What is the cost of this service? There is no incremental cost for this service. First Data shares in the savings it helps your company to achieve on qualifying transactions.
Are there any setup fees that will be billed to my account to activate this service? No setup fees will be billed to your account upon activation of this service.
Will my business need to make any changes to utilize this service? No, you may want to confirm your POS system is set up to prompt for tax information so your employees can either directly enter tax information at the point-of-sale or you can take advantage of the service.
Will this service be performed on all Commercial Card transactions? This service will only be performed when a lower cost interchange qualification can be achieved on applicable Commercial Card transactions for which your business bypassed the sales tax prompt at the point-of-sale.
What should I do when not all of the transaction is eligible for tax? This service is designed to correct transactions when the taxable amount is bypassed on the presumption that the local sales taxes in your location would generally be applicable to your transaction. If the entire amount of a transaction is not eligible for tax at the local rate, you should enter the specific tax applicable to the transaction at the point-of-sale, even if that amount is $0.00. If your business has a large number of transactions that are not taxed at the local rate, you may not want to utilize this service. In that event please call the customer service number on your statement to be excluded.
How will this appear on my statement? The statement messaging will appear similar to the below picture.
Who can I contact with additional questions? Please contact customer service at the number on your statement.