Processing Procedures for Unique Transactions

At merchant locations processing unique transactions via a Point of Sale (POS) terminal, acquiring banks must incorporate the following requirement into merchant agreements with gambling merchants and ensure compliance:

"A merchant must not credit winnings, unspent chips, or other value usable for gambling to a cardholder account."

Acquiring banks must properly identify all unique transactions in all authorization and clearing messages. In addition, acquirers must ensure that electronic commerce transactions are properly identified in the authorization and clearing messages.

Acquiring banks must incorporate the following requirements into all merchant agreements with internet casino merchants:

• Internet casino merchants must request that cardholders identify the state or foreign country where they are physically located at the time of the transaction. They must record the response and retain it, along with the cardholder's account number, the transaction amount, and the date. Internet casino merchants must retain this information for a minimum of one year from the transaction date and provide it to the acquirer on request.
• As a condition of having a merchant account, internet casino merchants must post a notice on their websites (in a position such that the notice will be displayed before requesting a card account number, such as a click-through notice) stating that assertions have been made that internet gambling may not be lawful in some jurisdictions, including California, and suggesting that the cardholder check whether internet gambling is lawful under applicable law.
• Internet casino merchants must not sell chips or other value that can be used, directly or indirectly, to gamble other than at a merchant that sells such chips or other value.
• Internet casino merchants must not credit winnings or unspent chips or other value usable for gambling to a cardholder account.