MasterCard Rules

MasterCard Rules
7 December 2011
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Trademark notices and symbols used in this manual reflect the

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Please consult with the Customer Operations Services team or the
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All third-party product and service names are trademarks or registered
trademarks of their respective owners.
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the appropriate MasterCard Consolidated Billing System (MCBS)
document for billing-related information.
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19692011 MasterCard. Proprietary. All rights reserved.

7 December 2011 MasterCard Rules
Summary of Changes, 7 December 2011

This update reflects changes associated with announcements in MasterCard Bulletins from July
2011 to November 2011, along with general reorganization necessary to improve the quality and
clarity of the rules across brands.
Description of Change
Where to Look
Added Standards for MasterCard, Maestro, and Cirrus prepaid card programs. Definitions
These Standards replace the Policy for Prepaid Card Programs document.
Chapter 6
Updated Standards relating to Third Party Processors, Independent Sales
Organization, and Data Storage Entities, and will include the addition of Service
Provider Registration Facilitator as a new type of Service Provider
Definitions
Chapter 2
Chapter 3
Chapter 5
Chapter 7
Chapter 15
Updated Standards relating to Changes of Control
Chapter 2
Chapter 15
Updated Standards regarding the removal of the prohibition against competing

and other debit point-of-sale (POS) marks on MasterCard debit cards and cards
issued in the United States, Puerto Rico, U.S. Virgin Islands, American Samoa,
Guam, and the Northern Mariana Islands
Chapter 3
Chapter 4
Chapter 10
Chapter 13
Chapter 15
Updated Standards for Debit Cards
Chapter 3
Chapter 15
Updated Travel and Entertainment Merchant Standards
Chapter 3
Chapter 15
Updated Standards regarding the flexibility in the use of the EFTPOS acceptance
mark
Chapter 4
Updated Standards for Unique transactions
Chapter 8
Updated Standards regarding Merchant Point-of-Sale practices
Chapter 5
Chapter 10
Chapter 15

MasterCard Rules 7 December 2011
Description of Change
Where to Look
Updated Standards for domestic purchase with cash back transactions conducted
with Debit MasterCard cards in South Africa
Chapter 5
Updated Standards for Remote Transaction accounts
Chapter 6
Updated Standards for U.S. Region Third Party Processors
Chapter 7
Chapter 14a
Chapter 15
Updated and restructured Chapter 8, Sales Transactions and Cash Disbursements Chapter 8
and added two new appendices B and C in the MasterCard Rules. The CrossAppendix B
reference section provides the former location or source of Rules that now appear
in Chapter 8, Appendix B, and Appendix C
Appendix C
Cross-reference
Updated Standards for authorization processing requirements at unattended petrol Chapter 12
terminals in the Europe Region
Updated geographical listings
Appendix A
Added information regarding Transaction identification requirements
Appendix B
Added information regarding Card acceptance requirements relating to the

Appendix C
Guaranteed Reservations, Express Checkout, and Advance Resort Deposit services
Replaced the term Member with Customer where appropriate
Entire document
Clarified wording where appropriate
Entire document

Cross-reference, 7 December 2011

The following table provides a general overview of the restructured Chapter 8, Sales Transactions
and Cash Disbursements and the addition of two new appendices in the MasterCard Rules.
The following cross-reference will help you to understand the former location or source of rules
appearing in the publication of the MasterCard Rules.
The text to appear as follows in this update

of the MasterCard Rules manual
Appeared here in the 15 July 2011 MasterCard Rules

(MCR) and/or the 12 August 2011 Chargeback Guide
(CBG)
8.1 Transaction Requirements
MCR 3.9
8.2 Authorization Requirements
New section heading
8.2.1 Full and Partial Reversals
MCR 3.8.5
8.2.1.1 Reversal for Conversion of Approval to

Decline
MCR 3.8.5.1
8.2.2 Full and Partial Approvals and Account

Balance Responses
MCR 3.8.6
8.3 Acceptance Procedures
CBG 2.1
8.3.1 Card, Access Device, or Mobile Payment

Device Must be Present
CBG 2.1.1.1
8.3.2 If a Card is Presented, Determine Whether CBG 2.1.1.2

the Card is Valid
8.3.2.1 Unsigned Cards
CBG 2.1.1.3
8.3.2.2 Suspicious Cards
CGB 2.1.1.4
8.3.3 Obtaining an Authorization
CBG 2.1.2.1, 2.1.2.2
8.3.3.1 When to Obtain an Authorization
CBG 2.1.2.3
8.3.3.2 Chip Transactions
CBG 2.1.5
8.3.3.3 Lodging, Cruise Line, and Vehicle Rental

Transactions
CBG 2.1.3, 2.1.3.3, 2.1.3.4
8.3.3.4 Adding a Gratuity
CBG 2.1.4, 2.1.4.1
8.3.4 Suspicious Transactions and Pick-up-card

Response
CBG 2.1.2.4, 2.1.2.5
8.3.5 Completing the Transaction
CBG 2.1.6, 2.1.6.1
8.3.5.1 TID Information Requirements
CBG 2.1.6.2
8.3.5.2 Prohibited Information
CBG 2.1.6.2.9
8.3.5.3 Cardholder Verification Method (CVM)
CBG 2.1.6.3



(CBG)
8.3.5.4 Give the Cardholder a Copy of the

Receipt
CBG 2.1.6.4
8.3.6 Multiple TIDs and Partial Payment
CBG 2.1.7
8.3.7 Specific Terms of a Transaction
CBG 2.1.8.1
8.3.8 Returned Products and Cancelled Services
CBG 2.1.8.2, 2.1.8.2.1
8.3.9 Charges for Loss, Theft, or Damages
CBG 2.1.3.2, 2.1.9
8.4 Requirements for Specific Transaction Types New section heading

8.4.1 Chip Transactions and Acceptance at
Hybrid POS Terminals
MCR 3.9.1; CBG 2.1.5, 2.1.10, 2.10, 2.10.1, 2.10.1.1
8.4.1.1 Hybrid POS Terminal Display

Requirements
CBG 2.1.10
8.4.1.2 Offline-only Hybrid POS Terminals at

Merchants with No Fixed Location
CBG 2.1.5
8.4.1.3 CVM Fallback
CBG 2.10.1.2
8.4.1.4 CVM Failure
CBG 2.10.1.3
8.4.1.5 Technical Fallback
CBG 2.10.1.4
8.4.2 Card-Not-Present Transactions
MCR 3.9.2
8.4.2.1 E-commerce Transactions
MCR 5.8.5
8.4.2.2 Recurring Payment Transactions
See Global Operations Bulletin No. 12, 1 December 2011;

also Authorization Manual; CBG 2.1.6.3.3
8.4.3 MasterCard PayPass Transactions
MCR 3.9.8; CBG 2.15
8.4.3.1 MasterCard PayPass Transit Transactions
CBG 2.15.1
8.4.3.2 PayPass-only Acceptance
CBG 2.15.2
8.4.3.3 MasterCard PayPass M/Chip Transaction

Offline Authorization Limit Amounts
CBG 2.15.3
8.4.4 Quick Payment Service Transactions
CBG 2.12
8.4.5 Purchase With Cash Back Transactions
MCR 5.8.6; CBG 2.1.12, 2.4
8.4.6 Unique Transactions
CBG 2.5
8.4.7 Cardholder-Activated Terminal (CAT)

Transactions
CBG 2.8
8.4.8 Automated Fuel Dispenser Transactions
MCR 3.9.4
8.4.9 Payment Transactions
CBG 2.6, 2.6.1
8.4.9.1 Gaming Payment Transactions
CBG 2.6.3



(CBG)
8.4.10 MoneySend Payment Transactions
CBG 2.7
8.4.10.1 MoneySend Payment Transaction

Requirements
CBG 2.7.1
8.4.11 Mobile Remote Payments
CBG 2.9
8.4.11.1 Mobile Remote Payments Program

Requirements
CBG 2.9.1
8.4.11.2 Mobile Remote Payment Transaction

Requirements
CBG 2.9.2
8.4.12 PIN-based Debit Transactions
MCR 3.9.5
8.4.13 Refund Transactions
MCR 3.9.3
8.4.14 Euro Migration
MCR 3.9.6
8.5 Requirements for Specific Merchant

Categories
MCR 3.9.9; CBG 2.2
8.6 POI Currency Conversion
CBG 2.1.11
8.7 Chargebacks for Reissued Cards
MCR 3.9.7
8.8 Use of Automatic Billing Updater
MCR 3.9.10
8.9 Cash Disbursements
MCR 8.1, 8.6
8.9.1 Nondiscrimination
MCR 8.2
8.9.2 Maximum Cash Disbursement Amounts
MCR 8.3
8.9.3 Discount or Service Charges
MCR 8.4
8.9.4 MasterCard Acceptance Mark Must be

Displayed
MCR 8.5
B.1 Transaction Date
Also appears in IPM Clearing Formats, DE 12
B.2 MasterCard PayPass Transactions
CBG 2.15
B.2.1 Post-authorized Aggregated PayPass

Transactions
CBG 2.15.1.3
B.2.2 PayPass-only Transactions
CBG 2.15.2
B.3 Quick Payment Service (QPS) Transactions
CBG 2.12
B.4 Cardholder-activated Terminal (CAT)

Transactions
CBG 2.8
B.5 Payment Transactions
CBG 2.6.2
B.6 Mobile Remote Payment Transactions
CBG 2.9.2
C.1 Guaranteed Reservations
CBG 2.2.1



(CBG)
C.2 Express Checkout
CBG 2.2.2
C.3 Advance Resort Deposit
CBG 2.2.3

Table of Contents
Definitions
Chapter 1
Participation
1.1 Types of Customers....................................................................................... 1-1
1.1.1 Association............................................................................................ 1-1
1.1.2 Principal ................................................................................................ 1-1
1.1.3 Affiliate.................................................................................................. 1-1
1.2 Eligibility to be a Customer........................................................................... 1-1
1.2.1 Principal or Affiliate ............................................................................. 1-1
1.2.2 Association............................................................................................ 1-2
1.2.3 Alternative Eligibility Criteria ............................................................... 1-2
1.3 Application to be a Customer ....................................................................... 1-3
1.4 Interim Participation ...................................................................................... 1-3
1.5 Obligations, Rights and Responsibilities ...................................................... 1-3
1.5.1 Obligation to Become a Customer ...................................................... 1-3
1.5.2 Obligation to Participate ...................................................................... 1-3
1.5.3 Right to Participate ............................................................................... 1-4
1.5.4 Membership Not Transferable ............................................................. 1-4
1.5.5 Customer Responsibilities .................................................................... 1-4
1.5.6 Enforcement of Payment of Fees and Other Obligations .................. 1-5
1.6 Termination of Membership ......................................................................... 1-5
1.6.1 Voluntary Termination ......................................................................... 1-5
1.6.2 Termination by the Corporation .......................................................... 1-5
Compliance Zones............................................................................................... 1-7

Table of Contents
Chapter 2
Licensing and Licensed Activities

2.1 Purpose of License; Eligibility....................................................................... 2-1
2.1.1 Single European Payments Area License ............................................ 2-1
2.2 License Application ....................................................................................... 2-1
2.3 Area of Use .................................................................................................... 2-1
2.3.1 Extending or Otherwise Modifying the Area of Use .......................... 2-2
2.3.2 Central AcquiringEurope Region Only ............................................ 2-4
2.3.3 Transfer of Cards to India Residents is Prohibited without a
License ........................................................................................................... 2-4
2.4 Special Conditions of Membership or License ............................................. 2-5
2.5 MasterCard Anti-Money Laundering Program .............................................. 2-6
2.6 Obligation to Issue Cards.............................................................................. 2-6
2.7 Liability for Assigned ICAs and BINs............................................................ 2-6
2.7.1 Settlement Liability for Debit Licensees .............................................. 2-7
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates ............... 2-7
2.8 Obligations of a Sponsor .............................................................................. 2-7
2.9 Name Change ................................................................................................ 2-7
2.10 Fees, Assessments, and Other Payment Obligations ................................. 2-8
2.10.1 Taxes and Other Charges .................................................................. 2-9
2.11 Sale or Change in Ownership or Control of Customer or Portfolio ......... 2-9
2.12 Suspension and Amendment of Membership or License or Both........... 2-10
2.13 Rights, Liabilities, and Obligations of Terminated Customers ................. 2-10
2.14 Failure of Principal or Association to Discharge Obligations .................. 2-12
2.15 System Liquidity......................................................................................... 2-13
2.16 Loss Allocation Among Customers ........................................................... 2-14
2.17 Limitation of Obligation ............................................................................ 2-14
2.18 Liability for Owned or Controlled Entities ............................................... 2-15
2.19 Risk of Loss ................................................................................................ 2-16
Compliance Zones............................................................................................. 2-17
ii

Table of Contents
Chapter 3 Customer Obligations

3.1 Standards ....................................................................................................... 3-1
3.1.1 Variances .............................................................................................. 3-1
3.1.2 Failure to Comply with a Standard...................................................... 3-2
3.1.2.1 Noncompliance Categories ......................................................... 3-2
3.1.2.1.1 Category APayment System Integrity ............................ 3-2
3.1.2.1.2 Category BVisible to Customers .................................... 3-3
3.1.2.1.3 Category CEfficiency and Operational Performance .... 3-3
3.1.2.2 Noncompliance Assessments...................................................... 3-3
3.1.2.3 Certification ................................................................................. 3-5
3.1.2.4 Review Process ........................................................................... 3-5
3.1.2.5 Resolution of Review Request .................................................... 3-5
3.1.3 Rules Applicable to Intracountry Transactions ................................... 3-5
3.1.4 Communication of Intracountry Fallback Rules.................................. 3-5
3.2 Conduct of Activity........................................................................................ 3-6
3.2.1 Conflict with Law ................................................................................. 3-6
3.2.2 Obligations of a Sponsor ..................................................................... 3-6
3.2.3 Affiliates ................................................................................................ 3-6
3.2.4 Materially Adverse Financial Condition or Discrepancy..................... 3-7
3.2.5 Compliance........................................................................................... 3-7
3.2.6 NondiscriminationEurope Region Only .......................................... 3-7
3.2.7 Acquirers............................................................................................... 3-8
3.3 Indemnity and Limitation of Liability ........................................................... 3-8
3.4 Choice of Laws ............................................................................................ 3-10
3.5 Examination and Audit................................................................................ 3-10
3.6 Provision and Use of Information .............................................................. 3-12
3.6.1 Obligation of Customer to Provide Information ............................... 3-12
3.6.1.1 Information to Cardholders ...................................................... 3-12
3.6.1.2 Information to Merchants ......................................................... 3-13
3.6.1.3 Transaction Currency Information ........................................... 3-13
3.6.2 Confidential Information of Customers ............................................. 3-13
3.6.3 Use of Corporation Information by a Customer ............................... 3-15
3.6.4 Confidential Information of the Corporation and the
Corporations Affiliates ................................................................................ 3-15
3.6.5 Data ProtectionEurope Region Only ............................................. 3-15
3.7 Quarterly Member Report ........................................................................... 3-16
iii
Table of Contents
3.7.1 Report Not Received .......................................................................... 3-16

3.7.2 Erroneous or Incomplete Report ....................................................... 3-16
3.7.3 Overpayment Claim ........................................................................... 3-17
3.8 Authorization Service .................................................................................. 3-17
3.8.1 Selective Authorization ...................................................................... 3-18
3.8.2 Authorization Routing ........................................................................ 3-18
3.8.3 Stand-In Processing Service ............................................................... 3-19
3.8.4 Issuer Performance Standards............................................................ 3-19
3.9 Additional Customer Obligations................................................................ 3-19
3.9.1 Safeguard Card Account and Transaction Information .................... 3-20
3.9.2 Satisfaction of Minimum Customer Obligations ................................ 3-20
3.9.3 Satisfaction of Minimum Financial Requirements ............................. 3-20
3.9.4 Integrity of Brand and Network ........................................................ 3-20
3.10 Limitation of Liability of Cardholders for Unauthorized Use................... 3-21
3.11 Pay-Per-Call Service................................................................................... 3-21
3.12 Encashment of MasterCard Travelers Cheques ........................................ 3-21
3.13 Accounts on a Card ................................................................................... 3-22
Chapter 4
Trademarks and Service Marks

4.1 Right to Use the Marks .................................................................................. 4-1
4.1.1 Licenses ................................................................................................ 4-1
4.1.2 Protection and Registration of the Marks ............................................ 4-1
4.1.2.1 Registration of a Card Face Design ............................................ 4-2
4.1.3 Misuse of a Mark .................................................................................. 4-2
4.2 General Rules for Use of the Marks ............................................................. 4-2
4.2.1 Use of the Marks .................................................................................. 4-2
4.2.2 Compliance........................................................................................... 4-3
4.2.3 Required Use ........................................................................................ 4-3
4.2.4 Review of Solicitations ......................................................................... 4-3
4.2.5 Signage System ..................................................................................... 4-3
4.2.6 Particular Use of a Mark ...................................................................... 4-4
4.2.6.1 Generic Use ................................................................................. 4-4
4.2.6.2 Use of Modifiers .......................................................................... 4-4
iv

Table of Contents
4.2.6.3 Use on Stationery ........................................................................ 4-4

4.2.6.4 Use on Non-Licensed Goods ...................................................... 4-4
4.2.6.5 Use on Checks ............................................................................ 4-4
4.2.6.6 Use on Cards ............................................................................... 4-5
4.2.7 Use of the MasterCard Word Mark ...................................................... 4-5
4.2.7.1 Use or Registration of Master Terminology ............................ 4-5
4.2.7.2 Use of MasterCard in a Corporate, Business or Domain
Name ....................................................................................................... 4-5
4.2.7.3 Use of MasterCard in Text .......................................................... 4-6
4.2.7.4 Registration Notice ...................................................................... 4-6
4.2.7.5 Program Names ........................................................................... 4-6
4.2.8 Use of the Interlocking Circles Device................................................ 4-6
4.2.8.1 Reproduction Standards .............................................................. 4-6
4.2.8.2 Variations Prohibited .................................................................. 4-7
4.2.8.3 Use or Registration of Similar Logos, Designs, and Names ...... 4-7
4.2.9 Use of Multiple Brand Marks ............................................................... 4-7
4.2.10 Use of the Card Face Design ............................................................. 4-7
4.2.10.1 In Advertising and Marketing Material ..................................... 4-7
4.2.10.2 In Merchant Advertising............................................................ 4-8
4.2.10.3 In Statement Enclosures ............................................................ 4-8
4.2.11 Use of the MasterCard Brand Mark on Other Cards ......................... 4-8
4.2.12 Use of a Competing Mark on Cards .................................................. 4-8
4.2.13 Use of Other Acceptance Marks on Cards ........................................ 4-9
4.2.14 Use on Mobile Payment Devices ..................................................... 4-10
Chapter 5
Merchants
5.1 The Merchant Agreement.............................................................................. 5-1
5.1.1 Verify Bona Fide Business Operation ................................................. 5-1
5.1.2 Required Terms .................................................................................... 5-1
5.1.2.1 Payment Facilitators .................................................................... 5-2
5.1.2.2 Gambling Merchants ................................................................... 5-2
5.1.3 Assessments for Merchant Agreement Noncompliance...................... 5-3
5.2 Acquirer Obligations ..................................................................................... 5-3
5.2.1 Acquiring Transactions......................................................................... 5-3
5.2.2 Merchant and Sub-merchant Compliance with the Standards ........... 5-3
5.2.3 Merchant Information .......................................................................... 5-3
5.2.4 Payments to Merchants ........................................................................ 5-4

Table of Contents
5.2.5 Supplying Materials .............................................................................. 5-4

5.3 Merchant Monitoring ..................................................................................... 5-4
5.4 Use of a Payment Facilitator ......................................................................... 5-4
5.4.1 Responsibility for Payment Facilitator and Sub-merchant Activity .... 5-5
5.4.2 High-Risk Payment Facilitators ............................................................ 5-6
5.4.3 Registration Requirements for Payment Facilitators ........................... 5-7
5.5 Payment Facilitator Obligations .................................................................... 5-8
5.5.1 Sub-merchant Screening Procedures ................................................... 5-8
5.5.2 MATCH Inquiry Required .................................................................... 5-9
5.5.3 Sub-merchant Agreement .................................................................... 5-9
5.5.3.1 Required Provisions .................................................................. 5-10
5.5.4 Obligations as Sponsor of Sub-merchants ........................................ 5-11
5.5.4.1 Submit Valid Transactions ........................................................ 5-11
5.5.4.2 Sub-merchant Compliance with the Standards ........................ 5-11
5.5.4.3 Maintaining Sub-merchant Information ................................... 5-11
5.5.4.4 Payments to Sub-merchants ..................................................... 5-12
5.5.4.5 Supplying Materials to Sub-merchants ..................................... 5-12
5.5.4.6 Sub-merchant Monitoring ......................................................... 5-12
5.6 Merchant Identification and Responsibility for Transactions .................... 5-12
5.7 Use of the Marks ......................................................................................... 5-13
5.7.1 Merchants Must Display the MasterCard Acceptance Mark ............. 5-14
5.7.2 Merchant Advertising and POI Materials........................................... 5-14
5.7.3 Local/Regional Acceptance Brands ................................................... 5-14
5.7.4 Direct Mail Cardholder Solicitation Merchants.................................. 5-15
5.8 Card Acceptance Requirements .................................................................. 5-16
5.8.1 Honor All Cards.................................................................................. 5-16
5.8.2 Merchant Acceptance ......................................................................... 5-16
5.8.3 Obtain an Authorization .................................................................... 5-17
5.8.4 Additional Cardholder Identification ................................................. 5-17
5.8.5 E-Commerce Transactions ................................................................. 5-17
5.8.6 Purchase With Cash Back Transactions ............................................ 5-17
5.9 Submitting Transactions .............................................................................. 5-17
5.9.1 Valid Transactions .............................................................................. 5-18
5.9.2 Submit Transactions within Three Business Days ............................ 5-18
5.10 Noncompliance Assessments .................................................................... 5-18
5.11 Prohibited Practices ................................................................................... 5-19
vi

Table of Contents
5.11.1
5.11.2
5.11.3
5.11.4
5.11.5
5.11.6
5.11.7
5.11.8
Discrimination .................................................................................. 5-19

Charges to Cardholders .................................................................... 5-19
Minimum/Maximum Transaction Amount Prohibited .................... 5-20
Scrip-dispensing Terminals .............................................................. 5-20
Prohibited Transactions.................................................................... 5-20
Other Forms of Payment.................................................................. 5-20
Illegal or Brand-damaging Transactions.......................................... 5-20
Disparagement.................................................................................. 5-21
5.12 Security Rules ............................................................................................ 5-21

5.12.1 Sale or Exchange of Information ..................................................... 5-21
5.13 Discounts or Other Benefits at the Point of Interaction .......................... 5-22
Chapter 6
Special Issuer Programs

6.1 Special Issuer ProgramsGeneral Requirements ........................................ 6-1
6.1.1 Prior Consent of the Corporation ........................................................ 6-1
6.1.2 Reservation of Rights ........................................................................... 6-1
6.1.3 Cardholder Communication ................................................................. 6-1
6.2 Affinity and Co-Brand Card Programs .......................................................... 6-2
6.2.1 Program Partners .................................................................................. 6-2
6.2.2 Ownership and Control of the Program ............................................. 6-3
6.2.3 Issuer Identification on Program Cards ............................................... 6-3
6.2.4 Program Name ..................................................................................... 6-4
6.2.5 Multiple Partners .................................................................................. 6-4
6.2.6 Accept All Cards without Discrimination ............................................ 6-4
6.2.7 Use of the MasterCard Acceptance Mark ............................................ 6-5
6.3 Brand Value Transactions and Proprietary Accounts .................................. 6-5
6.3.1 Proprietary Account Access ................................................................. 6-5
6.3.2 Fees and Reporting Requirements....................................................... 6-6
6.4 Remote Transaction Accounts ...................................................................... 6-6
6.4.1 Remote Transaction Account Requirements ....................................... 6-7
6.4.1.1 Remote Transaction MasterCard M/Chip Account Programs .... 6-7
6.5 Secured Card Programs ................................................................................. 6-7
6.5.1 Secured Card Program Requirements.................................................. 6-7
6.5.2 Refund of Fees ..................................................................................... 6-8

vii
Table of Contents
6.5.3 Secured Card Program Solicitation and Disclosure Requirements ..... 6-8
6.6 Prepaid Card Programs ................................................................................. 6-9
6.6.1 Responsibility for the Prepaid Card Program...................................... 6-9
6.6.2 Categories of Prepaid Card Programs ................................................. 6-9
6.6.2.1 Consumer Prepaid Card Programs ........................................... 6-10
6.6.2.2 Commercial Prepaid Card Programs ........................................ 6-10
6.6.2.3 Government Prepaid Card Programs ....................................... 6-10
6.6.3 Return of Unspent Value ................................................................... 6-10
6.6.4 Value Loading .................................................................................... 6-12
6.6.5 Communications and Marketing Materials ........................................ 6-12
6.6.6 Anti-Money Laundering ..................................................................... 6-13
6.6.7 Anonymous Prepaid Card Guidelines ............................................... 6-14
6.6.8 BINs .................................................................................................... 6-14
Chapter 7
Service Providers
7.1 Service Provider Categories .......................................................................... 7-1
7.1.1 Independent Sales Organization ......................................................... 7-3
7.1.2 Third Party Processor ........................................................................... 7-3
7.1.2.1 Type I .......................................................................................... 7-3
7.1.2.2 Type II ......................................................................................... 7-4
7.1.3 Data Storage Entity ............................................................................... 7-4
7.1.4 Service Provider Registration Facilitator .............................................. 7-4
7.2 Program Service............................................................................................. 7-4
7.3 General Obligations ...................................................................................... 7-5
7.3.1 Customer Responsibility and Control .................................................. 7-5
7.3.2 Notification to the Corporation............................................................ 7-5
7.3.3 Program Service Agreement ................................................................ 7-6
7.3.3.1 Before Entering Into a Program Service Agreement ................. 7-7
7.3.4 Disclosure of Standards ....................................................................... 7-8
7.3.5 Customer Point of Contact ................................................................... 7-8
7.3.6 Program Service for an Affiliates Program ......................................... 7-8
7.3.7 Use of the Marks .................................................................................. 7-9
7.3.8 Service Provider Identification on a Card ........................................... 7-9
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7.3.9 Program Materials................................................................................. 7-9

7.3.10 Fees ................................................................................................... 7-10
7.3.11 Settlement Account .......................................................................... 7-10
7.3.12 Transfer of Rights Prohibited ........................................................... 7-10
7.3.13 Use of Systems and Confidential Information................................. 7-10
7.3.14 Indemnification ................................................................................ 7-11
7.3.15 No Endorsement by the Corporation .............................................. 7-11
7.3.16 Audits ................................................................................................ 7-12
7.3.17 Settlement Failure Obligation .......................................................... 7-12
7.3.18 Data Security .................................................................................... 7-12
7.4 Merchant Acquiring Programs .................................................................... 7-12
7.4.1 Merchant Agreement .......................................................................... 7-13
7.4.2 Collection of Funds ............................................................................ 7-14
7.4.3 Access to Documentation .................................................................. 7-14
7.4.4 Authority to Terminate Merchant Agreement ................................... 7-14
7.5 Card Issuing Programs ................................................................................ 7-14
7.5.1 Card Application Approval ................................................................ 7-14
7.5.2 Cardholder Agreement ....................................................................... 7-14
7.5.3 Payment of Fees ................................................................................. 7-15
7.5.4 Program Receivables .......................................................................... 7-15
7.6 Service Provider Registration ...................................................................... 7-15
7.6.1 Registration Requirements for DSEs, ISOs and Type II TPPs .......... 7-15
7.6.1.1 SDP Program Noncompliance .................................................. 7-17
7.6.2 Registration Requirements for Type I TPPs ...................................... 7-17
7.6.3 Registration of a Service Provider Registration Facilitator ................ 7-17
7.6.4 Service Provider Registration Noncompliance .................................. 7-18
7.6.5 Prohibition from Acting as a Service Provider .................................. 7-18
7.6.6 Termination of Program Service Agreement or De-registration...... 7-18
7.7 Type I TPP Evaluation Program ................................................................. 7-18
7.7.1 Compliance with Type I TPP Evaluation Program Standards .......... 7-18
7.8 Confidential Information of Service Providers ........................................... 7-19

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Chapter 8
Sales Transactions and Cash Disbursements

8.1 Transaction Requirements ............................................................................. 8-1
8.1.1 Euro Migration...................................................................................... 8-2
8.2 Authorization Requirements ......................................................................... 8-2
8.2.1 Full and Partial Reversals ..................................................................... 8-2
8.2.1.1 Reversal for Conversion of Approval to Decline ....................... 8-3
8.2.2 Full and Partial Approvals and Account Balance Responses ............. 8-3
8.3 Card Acceptance Procedures ........................................................................ 8-4
8.3.1 Card Must be Present ........................................................................... 8-5
8.3.2 Determine Whether the Card is Valid ................................................. 8-5
8.3.2.1 Unsigned Cards ........................................................................... 8-6
8.3.2.2 Suspicious Cards ......................................................................... 8-6
8.3.3 Obtaining an Authorization ................................................................. 8-7
8.3.3.1 When to Obtain an Authorization .............................................. 8-7
8.3.3.2 Chip Transactions........................................................................ 8-8
8.3.3.3 Lodging, Cruise Line, and Vehicle Rental Transactions ............ 8-8
8.3.3.4 Adding a Gratuity ........................................................................ 8-9
8.3.4 Suspicious Transactions and Pick-up-card Response ....................... 8-10
8.3.5 Completing the Transaction............................................................... 8-10
8.3.5.1 TID Information Requirements................................................. 8-11
8.3.5.2 Prohibited Information.............................................................. 8-12
8.3.5.3 Cardholder Verification Method (CVM) ................................... 8-12
8.3.5.4 Give the Cardholder a Copy of the Receipt ............................ 8-13
8.3.6 Multiple TIDs and Partial Payment.................................................... 8-13
8.3.7 Specific Terms of a Transaction ........................................................ 8-14
8.3.7.1 Returned Products and Canceled Services ............................... 8-14
8.3.8 Charges for Loss, Theft, or Damage .................................................. 8-15
8.4 Requirements for Specific Transaction Types ............................................ 8-15
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ......... 8-15
8.4.1.1 Hybrid POS Terminal Display Requirements........................... 8-16
8.4.1.2 Offline-only Hybrid POS Terminals at Merchants with No
Fixed Location....................................................................................... 8-16
8.4.1.3 CVM Fallback ............................................................................ 8-17
8.4.1.4 CVM Failure ............................................................................... 8-18
8.4.1.5 Technical Fallback .................................................................... 8-18
8.4.2 Card-Not-Present Transactions .......................................................... 8-18
8.4.2.1 E-commerce Transactions ......................................................... 8-18
8.4.2.2 Recurring Payment Transactions .............................................. 8-19

Table of Contents
8.4.3 MasterCard PayPass Transactions ...................................................... 8-19

8.4.3.1 Processing MasterCard PayPass Transit Transactions.............. 8-20
8.4.3.1.1 Pre-funded........................................................................ 8-20
8.4.3.1.2 Real-time Authorized ....................................................... 8-20
8.4.3.1.3 Post-authorized Aggregated ............................................ 8-20
8.4.3.2 PayPass-only Acceptance ......................................................... 8-21
8.4.3.3 MasterCard PayPass M/Chip Transaction Offline
Authorization Limit Amounts................................................................ 8-22
8.4.4 Quick Payment Service (QPS) Program ............................................ 8-23
8.4.5 Purchase with Cash Back Transactions ............................................. 8-24
8.4.6 Unique Transactions .......................................................................... 8-25
8.4.7 Cardholder-Activated Terminal Requirements .................................. 8-25
8.4.8 Automated Fuel Dispenser Transactions ........................................... 8-25
8.4.9 Payment Transactions ........................................................................ 8-26
8.4.9.1 Gaming Payment Transactions ................................................. 8-27
8.4.10 MoneySend Payment Transactions .................................................. 8-27
8.4.10.1 MoneySend Payment Transaction Requirements ................... 8-28
8.4.11 Mobile Remote Payments ................................................................ 8-30
8.4.11.1 Mobile Remote Payments Program Requirements ................. 8-31
8.4.11.2 Mobile Remote Payment Transaction Requirements ............. 8-31
8.4.12 PIN-based Debit Transactions.......................................................... 8-32
8.4.13 Refund Transactions ......................................................................... 8-32
8.5 Requirements for Specific Merchant Categories......................................... 8-32
8.6 POI Currency Conversion ........................................................................... 8-33
8.7 Chargebacks for Reissued Cards................................................................. 8-34
8.8 Use of Automatic Billing Updater ............................................................... 8-34
8.9 Cash
8.9.1
8.9.2
8.9.3
8.9.4
Disbursements .................................................................................... 8-34

Nondiscrimination .............................................................................. 8-35
Maximum Cash Disbursement Amounts ........................................... 8-35
Discount or Service Charges .............................................................. 8-36
MasterCard Acceptance Mark Must Be Displayed ............................ 8-36

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Table of Contents
Chapter 9
Settlement
9.1 Definitions ..................................................................................................... 9-1
9.2 Net Settlement ............................................................................................... 9-1
9.3 Currency Conversion..................................................................................... 9-2
9.4 Interchange and Service Fees ....................................................................... 9-2
9.5 Establishment of Intracountry Interchange and Service Fees...................... 9-3
9.5.1 Default Intracountry Fees .................................................................... 9-3
9.5.2 Intraregional Fees ................................................................................. 9-4
9.5.3 Bilateral Agreement .............................................................................. 9-4
9.6 Cost Studies ................................................................................................... 9-5
9.6.1 Allocation of Expenses......................................................................... 9-5
9.6.2 Noncompliance with a Cost Study ...................................................... 9-5
Chapter 10 Asia/Pacific Region Rules

Organization of this Chapter............................................................................. 10-1
3.2 Conduct of Activity...................................................................................... 10-1
3.2.7 Acquirers............................................................................................. 10-1
4.1 Right to Use the Marks ................................................................................ 10-3
4.1.2 Protection and Registration of the Marks .......................................... 10-3
4.2.12 Use of a Competing Mark on Cards .......................................... 10-3
4.2.13 Use of Other Acceptance Marks on Cards ................................ 10-4
5.11.1 Discrimination .................................................................................. 10-4
5.11.2 Charges to Cardholders .................................................................... 10-5
5.11.3 Minimum/Maximum Transaction Amount Prohibited .................... 10-5
5.11.8 Disparagement.................................................................................. 10-6
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6.2 Affinity and Co-Brand Card Programs ........................................................ 10-7
6.2.5 Multiple Partners ................................................................................ 10-7
6.3 Brand Value Transactions and Proprietary Accounts ................................ 10-7
6.3.2 Fees and Reporting Requirements..................................................... 10-7
9.5 Establishment of Intracountry Interchange and Service Fees.................... 10-8
9.5.3 Bilateral Agreement ............................................................................ 10-8
Chapter 10a New Zealand Rules

Organization of this Chapter........................................................................... 10a-1
Definitions ....................................................................................................... 10a-1
2.6 Obligation to Issue Cards.......................................................................... 10a-1
2.7 Liability for Assigned ICAs and BINs........................................................ 10a-2
4.2 General Rules for Use of the Marks ......................................................... 10a-2
4.2.6 Particular Use of a Mark .................................................................. 10a-2
4.2.6.6 Use on Cards ........................................................................... 10a-2
5.1 The Merchant Agreement.......................................................................... 10a-2
5.1.2 Required Terms ................................................................................ 10a-2
5.8 Card Acceptance Requirements ................................................................ 10a-3
5.8.1 Honor All Cards................................................................................ 10a-3
5.8.2 Merchant Acceptance ....................................................................... 10a-3
5.11 Prohibited Practices ................................................................................. 10a-3
5.11.1 Discrimination ................................................................................ 10a-3
5.11.2 Charges to Cardholders .................................................................. 10a-4
9.4 Interchange and Service Fees ................................................................... 10a-4
9.5 Establishment of Intracountry Interchange and Service Fees.................. 10a-4
9.5.1 Default Intracountry Fees ................................................................ 10a-5
9.5.2 Intraregional Fees ............................................................................. 10a-5

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Table of Contents
Chapter 11 Canada Region Rules

5.2 Acquirer Obligations ................................................................................... 11-2
5.2.4 Payments to Merchants ...................................................................... 11-2
8.4.3 MasterCard PayPass Transactions...................................................... 11-3
Chapter 11a Canada Region Code of Conduct Related Rules

Definitions ....................................................................................................... 11a-1
3.6 Provision and Use of Information ............................................................ 11a-2
3.6.1 Obligation of Customer to Provide Information ............................. 11a-2
3.6.1.2 Information to Merchants ....................................................... 11a-2
3.8 Authorization Service ................................................................................ 11a-3
3.8.1 Selective Authorization .................................................................... 11a-3
3.13 Accounts on a Card ................................................................................. 11a-3
4.2.6.6 Use on Cards ........................................................................... 11a-3
4.2.13 Use of Other Acceptance Marks on Cards .................................... 11a-3
5.8.1 Honor All Cards................................................................................ 11a-4
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Chapter 12 Europe Region Rules

Definitions ......................................................................................................... 12-1
1.2 Eligibility to be a Customer......................................................................... 12-2
1.2.1 Principal or Affiliate ........................................................................... 12-2
2.3 Area of Use .................................................................................................. 12-3
2.3.1 Extending or Otherwise Modifying the Area of Use ........................ 12-3
2.3.2 Central Acquiring ............................................................................... 12-3
2.3.2.1 Central Acquiring Registration .................................................. 12-3
2.3.2.2 Central Acquirer Service Requirements .................................... 12-4
2.3.2.3 Intracountry Rules ..................................................................... 12-4
2.3.2.4 Centrally Acquired Merchants .................................................. 12-5
2.3.2.4.1 Updating of Merchant Details ......................................... 12-5
2.3.2.5 Registration Procedure .............................................................. 12-5
2.3.2.6 Extension of Registration .......................................................... 12-6
2.3.2.7 Interchange Fee Requirements ................................................. 12-6
2.3.2.8 Settlement of Disputes .............................................................. 12-6
2.3.2.9 Customer Noncompliance ........................................................ 12-7
2.6 Obligation to Issue Cards............................................................................ 12-7
3.1 Standards ..................................................................................................... 12-7
3.1.3 Rules Applicable to Intracountry Transactions ................................. 12-7
3.1.3.1 Order of Precedence ................................................................. 12-8
3.1.4 Communication of Intracountry Fallback Rules................................ 12-8
3.4 Choice of Laws ............................................................................................ 12-9
3.6.1 Obligation to Provide Information .................................................... 12-9
3.6.1.1 Information to Cardholders .................................................... 12-10
3.6.1.2 Information to Merchants ....................................................... 12-11
3.6.5 Data Protection................................................................................. 12-12
3.6.5.1 Processing of Transaction-Related Personal Data.................. 12-12
3.6.5.2 Data Subject Notice and Consent ........................................... 12-13
3.6.5.3 Data Subject Access to Personal Data .................................... 12-13
3.6.5.4 Integrity of Personal Data ....................................................... 12-14
3.8 Authorization Service ................................................................................ 12-14
3.8.3 Stand-In Processing Service ............................................................. 12-14
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3.8.4 Issuer Performance Standards.......................................................... 12-14

3.8.4.1 Issuer Failure Rate (Substandard Performance) ..................... 12-14
3.8.4.2 Calculation of the Issuer Failure Rate .................................... 12-14
3.8.4.3 Assessments for Substandard Performance............................ 12-15
4.1 Right to Use the Marks .............................................................................. 12-15
4.1.2 Protection and Registration of the Marks ........................................ 12-15
5.1 The Merchant Agreement.......................................................................... 12-15
5.1.2 Required Terms ................................................................................ 12-15
5.8 Card Acceptance Requirements ................................................................ 12-16
5.8.2 Merchant Acceptance ....................................................................... 12-16
5.11 Prohibited Practices ................................................................................. 12-16
5.11.2 Charges to Cardholders .................................................................. 12-16
5.13 Discounts or Other Benefits at the Point of Interaction ........................ 12-16
6.2 Affinity and Co-Brand Card Programs ...................................................... 12-16
6.2.5 Multiple Partners .............................................................................. 12-16
6.3 Co-Residing Applications .......................................................................... 12-17
6.3.1 Definitions ........................................................................................ 12-17
6.3.2 Basic Requirements .......................................................................... 12-17
6.3.3 Notification ....................................................................................... 12-17
8.1 Transaction Requirements ......................................................................... 12-17
8.1.1 Euro Migration.................................................................................. 12-17
8.2 Authorization Requirements ..................................................................... 12-18
8.2.2 Full and Partial Approvals and Account Balance Responses ......... 12-18
8.3 Card Acceptance Procedures .................................................................... 12-19
8.3.3 Obtaining an Authorization ............................................................. 12-19
8.3.3.1 When to Obtain an Authorization .......................................... 12-19
8.3.5 Completing the Transaction ............................................................. 12-19
8.3.5.1 TID Information Requirements............................................... 12-19
8.4 Requirements for Specific Transaction Types .......................................... 12-20
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 12-20
8.4.2 Card-Not-Present Transactions ........................................................ 12-20
8.4.5 Purchase with Cash Back Transactions ........................................... 12-21
8.4.9 Payment Transactions ...................................................................... 12-23
8.4.9.1 Gaming Payment Transactions ............................................... 12-23
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8.8 Use of Automatic Billing Updater ............................................................. 12-25

8.8.1 ABU Support by Acquirers ........................................................ 12-25
8.8.2 ABU Support by Issuers ............................................................ 12-25
8.9 Cash Disbursements .................................................................................. 12-25
8.9.2 Maximum Cash Disbursement Amounts ......................................... 12-25
Chapter 12a Europe Region Debit-related Rules

Definitions ....................................................................................................... 12a-1
4.2.6.6 Use on Cards ........................................................................... 12a-2
5.8.1 Honor All Cards................................................................................ 12a-2
5.8.6 Purchase with Cash Back Transactions ........................................... 12a-3
Chapter 12b SEPA Rules

Organization of this Chapter........................................................................... 12b-1
Definitions ....................................................................................................... 12b-1
2.1 Purpose of License; Eligibility................................................................... 12b-1
2.1.1 Single European Payments Area License ........................................ 12b-1
3.2 Conduct of Activity.................................................................................... 12b-2
3.2.6 Nondiscrimination ............................................................................ 12b-2
4.2 General Rules for Use of the Marks ......................................................... 12b-3
4.2.13 Use of Other Acceptance Marks on Cards .................................... 12b-3
8.1 Transaction Requirements ......................................................................... 12b-3
8.4 Requirements for Specific Transaction Types .......................................... 12b-3
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 12b-3

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Chapter 13 Latin America and the Caribbean Region Rules

3.2.7 Acquirers............................................................................................. 13-1
4.2.12 Use of a Competing Mark on Cards ................................................ 13-2
4.2.13 Use of Other Acceptance Marks on Cards ...................................... 13-2
5.11.1 Discrimination .................................................................................. 13-3
5.11.8 Disparagement.................................................................................. 13-5
9.3 Currency Conversion................................................................................... 13-7
Chapter 14 South Asia/Middle East/Africa Region Rules

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Table of Contents
Chapter 14a South Africa Rules

Definitions ....................................................................................................... 14a-1
4.2.6.6 Use on Cards ........................................................................... 14a-2
5.1.2 Required Terms ................................................................................ 14a-2
5.8.1 Honor All Cards................................................................................ 14a-2
8.4 Requirements for Specific Transaction Types .......................................... 14a-4
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 14a-4
Chapter 14b India Rules

Definitions ....................................................................................................... 14b-1
8.4.2 Card-Not-Present Transactions ........................................................ 14b-1
8.4.5 Purchase With Cash Back Transactions .......................................... 14b-2
Chapter 15 United States Region Rules

Definitions ......................................................................................................... 15-1
1.1 Types of Customers..................................................................................... 15-1
1.1.3 Affiliate................................................................................................ 15-1
1.5 Obligations, Rights and Responsibilities .................................................... 15-2
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Table of Contents
1.5.2 Obligation to Participate .................................................................... 15-2

2.7 Liability for Assigned ICAs and BINs.......................................................... 15-2
2.7.1 Settlement Liability for Debit Licensees ............................................ 15-2
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates ............. 15-3
2.11 Sale or Change in Ownership or Control of Customer Portfolio ............ 15-3
2.11.1 Change of Control of Issuer or Issuing Program ............................ 15-3
2.11.2 Change of Control of Acquirer or Acquiring Program ................... 15-4
3.2.7 Acquirers............................................................................................. 15-5
4.2 General Rules for Use of the Marks ......................................................... 15-11
4.2.12 Use of a Competing Mark on Cards .............................................. 15-11
4.2.13 Use of Other Acceptance Marks on Cards .................................... 15-11
5.11.1 Discrimination ................................................................................ 15-11
5.11.3 Minimum/Maximum Transaction Amount Prohibited .................. 15-13
5.11.8 Disparagement................................................................................ 15-14
6.2 Affinity and Co-brand Card Programs ...................................................... 15-14
7.2 Service Provider Categories ...................................................................... 15-14
7.1.2 Third Party Processor ....................................................................... 15-14
7.1.2.1 Type I ...................................................................................... 15-14
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Table of Contents
7.3 General Obligations .................................................................................. 15-15

7.3.2 Notification to the Corporation........................................................ 15-15
7.6 Service Provider Registration .................................................................... 15-16
7.6.2 Registration Requirements for Type I TPPs .................................... 15-16
8.9.1 Nondiscrimination ............................................................................ 15-17
8.2.1 Full and Partial Reversals ................................................................. 15-17
8.4.8 Automated Fuel Dispenser Transactions ......................................... 15-23
8.4.13 Refund Transactions ....................................................................... 15-23
Chapter 15a United States Region Debit-related Rules

Definitions ....................................................................................................... 15a-1
2.19 Risk of Loss .............................................................................................. 15a-2
4.2.6.6 Use on Cards ........................................................................... 15a-2
5.1.2 Required Terms ................................................................................ 15a-2
5.8.1 Honor All Cards................................................................................ 15a-3

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Chapter 15b United States Region PIN-based Debit Transaction

Rules
Definitions ....................................................................................................... 15b-1
3.9.6 PIN-based Debit Transactions ......................................................... 15b-2
4.2.6 Particular Use of a Mark .................................................................. 15b-2
4.2.6.6 Use on Cards ........................................................................... 15b-2
Appendix A Geographic Listing

A.1 Asia/Pacific Region ...................................................................................... A-1
A.2 Canada Region ............................................................................................. A-1
A.3 Europe Region ............................................................................................. A-2
A.3.1 Single European Payments Area (SEPA)............................................ A-3
A.4 Latin America and the Caribbean Region ................................................... A-3
A.5 South Asia/Middle East/Africa Region ........................................................ A-4
A.6 United States Region .................................................................................... A-5
Appendix B Transaction Identification Requirements

B.1 Transaction Date .......................................................................................... B-1
B.2 MasterCard PayPass Transactions ............................................................... B-1
B.2.1 Post-Authorized Aggregated PayPass Transit Transactions .............. B-3
B.2.2 PayPass-only Transactions ................................................................. B-5
B.3 Quick Payment Service Transactions .......................................................... B-7
B.4 Cardholder-activated Terminal (CAT) Transactions ................................... B-8
B.4.1 CAT Level Requirements .................................................................... B-9
B.4.1.1 Dual Capability for CAT 1 and CAT 2 .................................... B-10
B.4.1.2 CAT Level 1: Automated Dispensing Machines (CAT 1) ....... B-10
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Table of Contents
B.4.1.3
B.4.1.4
B.4.1.5
B.4.1.6
B.4.1.7
CAT
CAT
CAT
CAT
CAT
Level
Level
Level
Level
Level
2:
3:
4:
6:
7:
Self-Service Terminal (CAT 2) ........................... B-11

Limited Amount Terminals (CAT 3).................. B-12
In-Flight Commerce (IFC) Terminals (CAT 4) .. B-13
Electronic Commerce Transactions (CAT 6) .... B-17
Transponder Transactions (CAT 7)................... B-17
B.5 Payment Transactions ................................................................................ B-18

B.6 Mobile Remote Payment Transactions ...................................................... B-19
Appendix C Lodging Merchant Services

C.1 Guaranteed Reservations ............................................................................. C-1
C.2 Express Checkout ........................................................................................ C-2
C.3 Advance Resort Deposit .............................................................................. C-3

xxiii
Definitions
Access DeviceBoard, Board of Directors
Definitions
The following terms used in the MasterCard Rules manual have the meanings set forth
below.
Note
Additional defined terms appear in Chapter 9, Settlement; Chapter 10a, New

Zealand Rules; Chapter 12, Europe Region Rules; Chapter 12a, Europe
Region Debit-related Rules; Chapter 12b, SEPA Rules; Chapter 14a, South
Africa Rules; Chapter 14b, India Rules; Chapter 15, United States Region
Rules; Chapter 15a, United States Region Debit-related Rules; and Chapter
15b, United States Region PIN-based Debit Transaction Rules.
Access Device
A means other than a Card by which a Cardholder may access a MasterCard account in
accordance with the Standards. See Card.
Acquirer
A Customer in its capacity as an acquirer of a Transaction from a Merchant.
Activity(ies)
The undertaking of any act that can be lawfully undertaken only pursuant to License by
the Corporation.
Affiliate Member, Affiliate
A financial institution that is eligible and approved to be a Member pursuant to Rule 1.1.3
and is Sponsored by a Class A Member. Affiliate is an alternative term for Affiliate
Member. An Affiliate Member is also referred to as a Customer.
Area of Use
The country or countries in which a Customer is licensed to use the Mark(s), and, as a
rule, set forth in the License or in an exhibit to the License.
Association Member, Association
An entity that is eligible and approved to be a Member pursuant to Rule 1.1.1 and is a
Class A Member. Association is an alternative term for Association Member. An
Association Member is also referred to as a Customer.
Board, Board of Directors
The Board of Directors of MasterCard International Incorporated and MasterCard
Incorporated.

Definitions-1
Definitions
BylawsCustomer
Bylaws
The bylaws of MasterCard International Incorporated.
Card
A card issued by a Customer pursuant to License and in accordance with the Standards
that provides access to a credit, debit, or prepaid MasterCard account. Unless otherwise
stated herein, Standards applicable to a Card are also applicable to an Access Device and
a Mobile Payment Device.
Cardholder
The authorized user of a Card issued by a Customer.
Cardholder Communication
Any communication by or on behalf of an Issuer to a Cardholder or prospective
Cardholder. A Solicitation is one kind of Cardholder Communication.
Class A Member
An Association Member or a Principal Member. A Class A Member is also referred to as a
Customer.
Control
As used herein, Control has such meaning as the Corporation deems appropriate in its
sole discretion given the context of the usage of the term and all facts and circumstances
the Corporation deems appropriate to consider. As a general guideline, Control often
means to have, alone or together with another entity or entities, direct, indirect, legal, or
beneficial possession (by contract or otherwise) of the power to direct the management
and policies of another entity.
Corporation
MasterCard International Incorporated and its subsidiaries and affiliates. As used herein,
Corporation also means the President and Chief Executive Officer of MasterCard
International Incorporated, or his or her designee, or such officer(s) or other employee(s)
responsible for the administration and/or management of a program, service, product,
system or other function. Unless otherwise set forth in the Standards, and subject to any
restriction imposed by law or regulation or by the Board or by the MasterCard
Incorporated Certificate of Incorporation or by the MasterCard International Incorporated
Certificate of Incorporation (as each such Certificate of Incorporation may be amended
from time to time), each such person is authorized to act on behalf of the Corporation and
to so act in his or her sole discretion.
Customer
An alternative term for Member. A Customer may be a Principal Member, an Association
Member, or an Affiliate Member.
Definitions-2

Definitions
Customer ReportInterregional Transaction
Customer Report
Any report a Customer is required to provide to the Corporation, whether on a one-time
or repeated basis, pertaining to its Membership, Activities, use of any Mark, or any of such
matters. By way of example and not limitation, the Quarterly Member Report (QMR) is a
Customer Report.
Data Storage Entity (DSE)
A Service Provider that performs any one or more of the services described in Rule 7.1 as
DSE Program Service.
Electronic Money
Electronically (including magnetically) accessed monetary value as represented by a claim
on the Electronic Money Issuer which:
a. is issued on receipt of funds for the purpose of making transactions with payment
cards; and
b. accepted by the Electronic Money Issuer or a person other than the Electronic Money
Issuer.
Electronic Money Issuer
An Electronic Money Issuer with respect only to its issuing activities.
Electronic Money Institution
An entity authorized by applicable regulatory authority or other government entity as an
electronic money institution, e-money institution, small electronic money institution,
or any other applicable qualification under which an entity is authorized to issue or
acquire Electronic Money transactions under applicable law or regulation.
Independent Sales Organization
ISO Program Service.
Interchange System
The computer hardware and software operated by and on behalf of the Corporation for
the routing, processing, and settlement of Transactions, including, without limitation, the
MasterCard Worldwide Network, the Regional Service Center (RSC), the Regional Clearing
Management System (RCMS), the Global Clearing Management System (GCMS), and the
Settlement Account Management (S.A.M.) system.
Interregional Transaction
A Transaction that occurs at a Merchant located and doing business in a different
MasterCard region from the MasterCard region in which the Card was issued, except as
otherwise defined by the Corporation.
Definitions 3
Definitions
Intracountry TransactionMasterCard Acceptance Mark
Intracountry Transaction
A Transaction that occurs at a Merchant located and doing business in the same country
as the country in which the Card was issued, except as otherwise defined by the
Corporation. A Transaction qualifies as an Intracountry Transaction when it is completed
using a Card that bears the Marks either alone or in combination with the marks of
another eligible payment scheme, and it is processed as a Transaction, as shown by the
Card product identification in the Transaction record, via either the Interchange System or
a different network.
Intraregional Transaction
A Transaction that occurs at a Merchant located and doing business in a different country
from the country in which the Card was issued, within the same MasterCard region,
except as otherwise defined by the Corporation.
Issuer
A Customer in its capacity as an issuer of a Card. For the purpose of this definition, an
Issuer also means a principal debit Licensee and an affiliate debit Licensee.
License, Licensed
The contract between the Corporation and a Customer granting the Customer the right to
use one or more of the Mark(s) in accordance with the Standards. To be Licensed
means to have such a right pursuant to a License.
Licensee
A Customer or other person authorized in writing by the Corporation to use a Mark.
Marks
The names, logos, trade names, logotypes, trademarks, service marks, trade designations,
and other designations, symbols, and marks, including but not limited to the MasterCard
Brand Mark and the MasterCard Word Mark, that MasterCard International Incorporated
and/or its affiliates or subsidiaries own, manage, license, or otherwise control and make
available for use by Customers and other authorized entities. A Mark means any one of
the Marks.
MasterCard
MasterCard International Incorporated.
MasterCard Acceptance Mark
The MasterCard Acceptance Mark is a combined mark which includes the MasterCard
Brand Mark placed on the dark blue acceptance rectangle.
Definitions-4

Definitions
MasterCard Brand MarkOwnership
MasterCard Brand Mark

The MasterCard Word Mark as a custom lettering legend placed within the MasterCard
Interlocking Circles Device. The Corporation is the exclusive owner of the MasterCard
Brand Mark.
MasterCard Word Mark
The word MasterCard, which should be followed by a registered trademark symbol or
the local law equivalent. The Corporation is the exclusive owner of the MasterCard Word
Mark.
Member, Membership
A financial institution or other entity that has been granted membership in and has
become a member of the Corporation in accordance with the Standards. A Member is
also referred to as a Customer. Membership means membership in the Corporation.
Merchant
A commercial entity or person that, pursuant to a Merchant Agreement, is authorized to
accept Cards when properly presented.
Merchant Agreement
An agreement between a Merchant and a Customer that sets forth the terms pursuant to
which the Merchant is authorized to accept Cards.
Mobile Payment Device
A Cardholder-controlled mobile phone containing a payment application that is compliant
with the Standards. A Mobile Payment Device is differentiated from an Access Device in
that a Mobile Payment Device uses an integrated keyboard and screen to access a credit
or debit MasterCard Account. See Card.
Mobile Remote Payment
Mobile Remote Payment is a payment functionality that is initiated by an enrolled
Cardholder from a Cardholder-controlled mobile phone which is registered with the
Cardholders Issuer and used for entry of the Cardholders PIN or mobile-specific
credentials.
Ownership
As used herein, ownership has such meaning as the Corporation deems appropriate in its
sole discretion given the context of the usage of the term and all facts and circumstances
the Corporation deems appropriate to consider. As a general guideline, ownership often
means to own indirectly, legally, or beneficially more than fifty percent (50%) of an entity.

Definitions 5
Definitions
Payment FacilitatorService Provider Registration Facilitator
Payment Facilitator
A Merchant registered by an Acquirer to facilitate Transactions on behalf of Submerchants.
Point of Interaction (POI)
The location at which a Transaction occurs, as determined by the Corporation.
POS Terminal
An attended or unattended access device located in or at a Merchants premises that meets
the Corporations requirements, and that permits a Cardholder to initiate and effect a
Transaction for the purchase of products or services sold by such Merchant with a Card in
accordance with the Standards.
Principal Member, Principal
A financial institution that is eligible and approved to be a Member pursuant to Rule 1.1.2
and is a Class A Member. Principal is an alternative term for Principal Member. A
Principal Member is also referred to as a Customer.
Program
A Customers Card issuing program, Merchant acquiring program, or both.
Program Service(s)
Any service described in Rule 7.1 that directly or indirectly supports a Program. The
Corporation has the sole right in its discretion to determine whether a service is a Program
Service.
Remote Transaction
A non-face-to-face Transaction performed partially or wholly by means of electronic
communication, such as via phone order, the Internet, text messaging, facsimile, or the
like.
Rules
The Standards set forth in the MasterCard Rules manual.
Service Provider
A person that performs Program Service. The Corporation has the sole right in its sole
discretion to determine whether a person is a Service Provider and if so, the category of
Service Provider. A Service Provider is an agent of the Member that receives or otherwise
benefits from Program Service, whether directly or indirectly, performed by such Service
Provider.
Service Provider Registration Facilitator
A Service Provider that performs Service Provider identification and registration services.
Definitions-6

Definitions
Solicitation, SolicitSub-merchant
Solicitation, Solicit
An application, advertisement, promotion, marketing communication, Web site or the like
intended to solicit the enrollment of a person as a Cardholder or as a Merchant. To
Solicit means to use a Solicitation.
Special Issuer Program
Issuer Activity the Corporation deems may be undertaken only with the express prior
consent of the Corporation. As of the date of the publication of these Rules, Special
Issuer Programs include Affinity Card, Co-brand Card, Proprietary Account, Remote
Transaction account, secured Card, and prepaid Card Programs.
Sponsor, Sponsorship
The relationship described in the Standards between a Principal or Association and an
Affiliate that engages in Activity indirectly through the Principal or Association. In such
event, the Principal or Association is the Sponsor of the Affiliate and the Affiliate is
Sponsored by the Principal or Association. Sponsorship means the Sponsoring of a
Customer.
Standards
The Amended and Restated Certificate of Incorporation, Bylaws, Rules, and policies, and
the operating regulations and procedures of the Corporation, including but not limited to
any manuals, guides or bulletins, as may be amended from time to time.
Stand-In Parameters
A set of authorization requirements established by the Corporation or the Issuer that are
accessed by the MasterCard Worldwide Network using the Stand-In Processing Service to
determine the appropriate responses to authorization requests.
Stand-In Processing Service
A service offered by the Corporation in which the MasterCard Worldwide Network
authorizes or declines Transactions on behalf of and uses Stand-In Parameters provided
by the Issuer (or in some cases, by the Corporation). The Stand-In Processing Service
responds when the Issuer is unavailable, the Transaction cannot be delivered to the
Issuer, or the Issuer exceeds the response time parameters set by the Corporation.
Sub-licensee
A person authorized in writing to use a Mark either by a Licensee in accordance with the
Standards or by the Corporation.
Sub-merchant
A merchant that, pursuant to an agreement with a Payment Facilitator, is authorized to
accept Cards when properly presented.

Definitions 7
Definitions
Third Party Processor (TPP)Volume
Third Party Processor (TPP)

TPP Program Service.
Transaction
The sale of goods or services by a Merchant to a Cardholder pursuant to acceptance of a
Card by the Merchant.
Volume
The aggregate financial value of a group of Transactions. Volume does not mean the
number of Transactions.
Definitions-8

Participation
This chapter contains information about participation in the Corporation.
1.1 Types of Customers....................................................................................... 1-1

1.1.1 Association............................................................................................ 1-1
1.1.2 Principal ................................................................................................ 1-1
1.1.3 Affiliate.................................................................................................. 1-1
1.2 Eligibility to be a Customer........................................................................... 1-1
1.2.1 Principal or Affiliate ............................................................................. 1-1
1.2.2 Association............................................................................................ 1-2
1.2.3 Alternative Eligibility Criteria ............................................................... 1-2
1.3 Application to be a Customer ....................................................................... 1-3
1.4 Interim Participation ...................................................................................... 1-3
1.5 Obligations, Rights and Responsibilities ...................................................... 1-3
1.5.1 Obligation to Become a Customer ...................................................... 1-3
1.5.2 Obligation to Participate ...................................................................... 1-3
1.5.3 Right to Participate ............................................................................... 1-4
1.5.4 Membership Not Transferable ............................................................. 1-4
1.5.5 Customer Responsibilities .................................................................... 1-4
1.5.6 Enforcement of Payment of Fees and Other Obligations .................. 1-5
1.6 Termination of Membership ......................................................................... 1-5
1.6.1 Voluntary Termination ......................................................................... 1-5
1.6.2 Termination by the Corporation .......................................................... 1-5

1-i
Participation
1.1 Types of Customers

The Corporation has the following three types of Customers: Association,
Principal, and Affiliate.
1.1.1 Association
An Association is a Customer that participates directly in Activity but does not
directly issue or acquire without the express prior written consent of the
Corporation. An Association may Sponsor one or more Affiliates.
1.1.2 Principal
A Principal is a Customer that participates directly in Activity. A Principal may
Sponsor one or more Affiliates.
1.1.3 Affiliate
An Affiliate is a Customer that participates indirectly in Activity through the
Sponsorship of a Principal or Association. An Affiliate may not Sponsor any
other Customer.
Note
Additions to this Rule appear in Chapter 15, United States Region Rules.
1.2 Eligibility to be a Customer

The following are eligible to be a Customer of this Corporation.
1.2.1 Principal or Affiliate

Effective on or after 15 July 1993, any entity that is a financial institution
authorized to engage in financial transactions under the laws or government
regulations of the country (or any subdivision thereof) in which it is organized
or principally engaged in business may apply to be a Principal or an Affiliate
of the Corporation.

1-1
Participation
For purposes of this section, financial transactions means the making of

commercial or consumer loans, the extension of credit, the effecting of
transactions with payment services cards, or the taking of consumer or
commercial deposits.
Any such financial institution must have the requisite right, power, and
authority, corporate and otherwise, to function as a Customer of this
Corporation and to engage in Activity, and must have submitted business
plan(s) approved by the Corporation in accordance with Rule 1.5.5. Any such
financial institution also must be regulated and supervised by one or more
governmental authorities or agencies authorized and empowered to establish
or enforce rules regarding financial transactions and the financial condition,
activities, and practices of entities engaging in financial transactions. With
respect to any financial institution that does not take deposits, it is a further
requirement that financial transactions constitute substantially all of the
business conducted by it.
Note
A variation to this Rule appears in Chapter 12, Europe Region Rules.
1.2.2 Association
Any entity that is Controlled by one or more financial institutions eligible and
approved to be a Customer(s) as described in Rule 1.2.1 and that is engaged or
proposes to engage in Activity on behalf of or through one or more of those
Customers may apply to be an Association. Any such entity must have the
requisite right, power, and authority, corporate and otherwise, to function as a
Principal or Association of this Corporation, and must have submitted business
plan(s) approved by the Corporation in accordance with Rule 1.5.5.
1.2.3 Alternative Eligibility Criteria

The Corporation may adopt, consistent with the promotion of sound practices,
alternative eligibility criteria on a regional, country-by-country or other basis
for any reason. Any such entity must have submitted business plan(s)
approved by the Corporation in accordance with Rule 1.5.5.
1-2

Participation
1.3 Application to be a Customer
1.3 Application to be a Customer

Any entity eligible to be a Customer may apply to become a Customer. An
application to become a Customer must be made in the form and include all of
the information then required, and the entity must pay the fee or fees then
required. An applicant to be a Customer must agree, and by execution and
submission of an application to be a Customer agrees, that it will comply with
all applicable provisions of the Certificate of Incorporation and the Standards
of this Corporation as in effect from time to time, and with applicable law.
1.4 Interim Participation

Pending action on a properly completed and submitted application to be a
Customer, the Corporation may authorize the applicant to participate in
Activity on an interim basis as if the applicant were a Customer. The
continuation of such interim participation is subject to the subsequent approval
or disapproval of the application to be a Customer. As a condition of such
conditional authorization, the applicant must agree, and by commencement of
any Activity the applicant is deemed to have agreed, to comply during this
interim period (and thereafter as applicable) with the Standards and to
discontinue immediately any use of the Marks and Activity if the application is
disapproved. All damages, losses, costs, and liabilities arising directly or
indirectly, or consequentially, from or related to any interim participation in
Activity by the applicant and from the disapproval of the application to be a
Customer is solely at the applicants risk and expense, and the Corporation has
no responsibility for any such damages, losses, costs, or liabilities.
1.5 Obligations, Rights and Responsibilities

1.5.1 Obligation to Become a Customer
Subject to Rule 1.4, a financial institution or other entity that is eligible to be a
Customer may not participate in Activity unless and until it becomes a
Customer.
1.5.2 Obligation to Participate

Each Customer must participate as a Principal or Association or as an Affiliate,
or as a combination thereof.

1-3
Participation
Note
1.5.3 Right to Participate

Each Customer may only use a Mark that the Customer is authorized to use
pursuant to a License by the Corporation.
1.5.4 Membership Not Transferable

Membership in the Corporation is not transferable or assignable, whether by
sale, consolidation, merger, operation of law, or otherwise, without the express
written consent of the Corporation, provided however, that in the event that
the Cards issued by, the Ownership of, or any Activity of a Customer are
acquired by any person, whether by sale, consolidation, merger, operation of
law or otherwise, the obligations, but not the rights, of such Customer shall
transfer to the person acquiring such Customer.
1.5.5 Customer Responsibilities

Each Customer must:
1. At all times be entirely responsible for and Control all aspects of its
Activities, and the establishment and enforcement of all management and
operating policies applicable to its Activities, in accordance with the
Standards;
2. Not transfer or assign any part or all of such responsibility and Control or
in any way limit its responsibility or Control;
3. Ensure that all policies applicable to its Activities conform to the Standards
and comply with applicable laws and regulations;
4. Conduct meaningful and ongoing monitoring to ensure compliance with all
of the responsibilities set forth in this Rule;
5. Maintain a significant economic interest in each of its Activities; and
6. Operate Activities at a scale or volume of operations consistent with the
business plan(s) approved by the Corporation in connection with the
application to be a Customer or application for a License, or both, as the
case may be.
1-4

Participation
1.6 Termination of Membership
1.5.6 Enforcement of Payment of Fees and Other Obligations

The Corporation may apply any sum due to the Customer from the
Corporation toward the payment of any fee, assessment or other obligation(s)
owed to the Corporation by the Customer or, in the case of a Principal or
Association, owed to the Corporation by any Affiliate Sponsored by the
Principal or Association.

Membership in the Corporation may terminate in one of two ways: voluntary
termination and termination by the Corporation. The Corporation may
continue a License of a terminated Customer as set forth in Rule 2.13. Rights,
liabilities, and obligations of terminated Customers are set forth in Rule 2.14.
1.6.1 Voluntary Termination

A Customer may voluntarily terminate its Membership. A Customer that
participates in Activity as a Principal or Association and also participates in
Activity as an Affiliate may voluntarily terminate its participation in Activity as
either and continue to participate in Activity as the other.
In order to voluntarily terminate as a Customer, the Customer must give
written notice addressed to the Secretary of this Corporation by registered or
certified mail, return receipt requested, or by personal or reputable courier
service.
The notice must:
1. State that the notice is a notice of termination;
2. Be received by the Secretary;
3. Fix a date on which the termination will be effective, which must be at
least thirty days after the notice is received by the Secretary; and
4. Be otherwise in the form as may be required from time to time by the
Corporation.
1.6.2 Termination by the Corporation

A Customer may be terminated as a Customer by the Corporation. The
termination is effective upon delivery, or an inability to deliver after a
reasonable attempt to do so, of written or actual notice by the Corporation to
the Customer.

1-5
Participation
The Corporation may, at its sole discretion, effect such termination forthwith
and without prior notice if:
1. The Customer suspends payments within the meaning of Article IV of the
Uniform Commercial Code in effect at the time in the State of Delaware,
regardless of whether, in fact, the Customer is subject to the provisions
thereof; or
2. The Customer takes the required action by vote of its directors,
stockholders, members, or other persons with the legal power to do so, or
otherwise acts, to cease operations and to wind up the business of the
member, such Membership termination to be effective upon the date of the
vote or other action; or
3. The Customer fails or refuses to make payments in the ordinary course of
business or becomes insolvent, makes an assignment for the benefit of
creditors, or seeks the protection, by the filing of a petition or otherwise, of
any bankruptcy or similar statute governing creditors rights generally; or
4. The government or the governmental regulatory authority having
jurisdiction over the Customer serves a notice of intention to suspend or
revoke, or suspends or revokes, the operations or the charter of the
Customer; or
5. A liquidating agent, conservator, or receiver is appointed for the Member,
or the Customer is placed in liquidation by any appropriate governmental,
regulatory, or judicial authority; or
6. The Customers right to engage in Activity is suspended by the Corporation
due to the Members failure to comply with the Corporations AML Program
or applicable law or regulation, and such suspension continues for twentysix (26) consecutive weeks; or
7. A Customer fails to engage in Activity for twenty-six (26) consecutive
weeks; or
8. The Customer is no longer Licensed to use any of the Marks.
1-6

Participation
Compliance Zones
Compliance Zones
The following table identifies the noncompliance category that the Corporation
has assigned to the Standards described within this chapter. These
noncompliance categories are assigned for the purposes of noncompliance
assessments under the compliance framework in Rule 3.1.2.
Rule Number
Rule Title
Category
1.1
Types of Customers
1.2
Eligibility to be a Customer
1.3
Application to be a Customer
1.4
Interim Participation
1.5
Obligations, Rights and Responsibilities
1.6
Termination of Membership

1-7

This chapter contains information about licensing and rights and obligations
related to Licensed Activity by Customers.
2.1 Purpose of License; Eligibility....................................................................... 2-1

2.1.1 Single European Payments Area License ............................................ 2-1
2.2 License Application ....................................................................................... 2-1
2.3 Area of Use .................................................................................................... 2-1
2.3.1 Extending or Otherwise Modifying the Area of Use .......................... 2-2
2.3.2 Central AcquiringEurope Region Only ............................................ 2-4
2.3.3 Transfer of Cards to India Residents is Prohibited without a
License ........................................................................................................... 2-4
2.4 Special Conditions of Membership or License ............................................. 2-5
2.5 MasterCard Anti-Money Laundering Program .............................................. 2-6
2.6 Obligation to Issue Cards.............................................................................. 2-6
2.7 Liability for Assigned ICAs and BINs............................................................ 2-6
2.7.1 Settlement Liability for Debit Licensees .............................................. 2-7
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates ............... 2-7
2.8 Obligations of a Sponsor .............................................................................. 2-7
2.9 Name Change ................................................................................................ 2-7
2.10 Fees, Assessments, and Other Payment Obligations ................................. 2-8
2.10.1 Taxes and Other Charges .................................................................. 2-9
2.11 Sale or Change in Ownership or Control of Customer or Portfolio ......... 2-9
2.12 Suspension and Amendment of Membership or License or Both........... 2-10
2.13 Rights, Liabilities, and Obligations of Terminated Customers ................. 2-10
2.14 Failure of Principal or Association to Discharge Obligations .................. 2-12
2.15 System Liquidity......................................................................................... 2-13
2.16 Loss Allocation Among Customers ........................................................... 2-14
2.17 Limitation of Obligation ............................................................................ 2-14

2-i
2.18 Liability for Owned or Controlled Entities ............................................... 2-15

2.19 Risk of Loss ................................................................................................ 2-16
2-ii


2.1 Purpose of License; Eligibility

Each Customer, as a condition of Membership, must execute one or more
Licenses in such form as is required by the Corporation. Each Customer must
assist the Corporation in recording any License granted to the Customer if
required in the country of license or otherwise upon request of the
Corporation. The Corporation may add additional requirements or limitations
or other conditions to a License then in effect. In the event of an
inconsistency between a Standard and a provision in a License, the Standard
prevails and the License is deemed to be amended so as to be consistent with
the Standard.
2.1.1 Single European Payments Area License
Note
Rules on this topic appear in Chapter 12b, SEPA Rules.
2.2 License Application

An application for a License must be made in the form and include all
information then required. An applicant for a License must agree and, by
execution and submission of an application for a License agrees, and by use of
a Mark agrees, to comply with all provisions of the License pertaining to use of
a Mark and with the Standards of this Corporation as may be in effect from
time to time. A Licensee may not transfer or assign its License, whether by
sale, consolidation, merger, operation of law or otherwise, without the express
written consent of the Corporation, provided, however, that in the event that
the Cards issued by, the Ownership of, or any Activity of a Customer are
acquired by any person, whether by sale, consolidation, merger, operation of
law or otherwise, the obligations, but not the rights, of such Customer shall
transfer to the person acquiring such Customer.
2.3 Area of Use

Except as otherwise provided in the Standards, each Customer may use a Mark
solely in the Area of Use in which the Customer has been granted a License. If
the License does not specify an Area of Use, the License is deemed to
authorize the Customer to use the Mark only in the country or countries the
Corporation determines to be the Customers Area of Use.

2-1

2.3 Area of Use
A License that the Corporation deems to be inconsistent with this Rule is

deemed amended effective as of the granting of the License so as to be
consistent with this Rule.
Except as otherwise provided in the Standards, the ICA and BIN numbers
under which Cards are issued or acquired must reflect the country, from
among those specified in the Area of Use of the License, where such Activity is
conducted.
Note
A variation to this Rule appears in Chapter 12, "Europe Region Rules."
2.3.1 Extending or Otherwise Modifying the Area of Use

A Customer must apply to the Corporation for permission to extend or
otherwise modify the Area of Use of a License. Such application must be
made in the form and include all information then required. If the application
is approved, the Corporation will amend the License to reflect the change in
the Area of Use.
Notwithstanding the foregoing, and with the exception of India, where
conducting any of the following Activities is prohibited without a License in
India and written authorization from the Reserve Bank of India, a Customer is
not required to make such application to conduct any of the following
Activities, subject to (a) the Corporations right to prohibit or restrict or
condition any such Activity and (b) compliance by the Customer with
Standards, laws and regulations applicable to any such Activity:
1. Issue Cards outside of the Area of Use, provided that the Customer does
not use Solicitations or solicit outside of the Area of Use.
2. Solicit and issue Cards to citizens of any country within the Area of Use,
wherever such citizens reside. Any Card Solicitation, wherever conducted,
must be directed only to citizens of countries within the Customers Area of
Use.
3. Issue MasterCard Corporate Card Cards to employees of an entity on
whose behalf the Cards are issued, wherever such employees reside,
provided that the entity is multinational, having a presence and conducting
regular business in more than one country, including at least one country
in the Customers Area of Use.
4. Issue payroll or incentive Cards to employees of an entity on whose behalf
the Cards are issued, provided that the entity is multinational, having a
presence and conducting regular business in more than one country,
including at least one country in the Customers Area of Use, and:
2-2


2.3 Area of Use
a. The gross dollar volume (GDV) within a country in a calendar year

from the Customers and its Sponsored Affiliates total cross-border
issuance for all payroll and incentive Card Programs for all companies
served in that country does not exceed one percent of that countrys
MasterCard GDV in that calendar year, or
b. If the Customer has a License to issue Cards in a particular country
(Country A) but wishes to issue Cards into Country A from another
country in which the Customer is also licensed (Country B), the
Customers and its Sponsored Affiliates total cross-border issuance from
Country B into Country A in a calendar year may not exceed:
i.
10 percent of that Customers and its Sponsored Affiliates total

domestic MasterCard GDV in Country A in that calendar year, or
ii. if greater than the 10 percent described herein, the amount allowed
under the one percent threshold described above.
5. Acquire Transactions from Merchants located in a country within the Area
of Use, even if such Transactions arise from mail order, phone order, ecommerce, or recurring payment Transactions that the Merchant effects
with Cardholders in countries outside of the Area of Use.
6. Acquire mail order, phone order, e-commerce, or recurring payment
Transactions from Merchants located outside of the Area of Use if such
Transactions solely reflect sales to Cardholders residing within the Area of
Use.
7. Acquire airline Transactions in a country outside of the Area of Use, subject
to satisfying all of the following requirements:
a. The airline has a meaningful presence in at least one country within
the Area of Use; and
b. The ICA number under which airline Transactions are acquired must
reflect either the country in which the airline ticket office is located or
a country within the MasterCard region in which the airline ticket office
is located; and
c. The Customer authorizes, clears, and settles each local Transaction in
a manner that does not significantly disadvantage an Issuer in the same
country in the judgment of the Corporation.
8. Acquire e-commerce Transactions from a Merchant located in a country
outside of the Area of Use, subject to satisfying all of the following
requirements:
a. The ICA number under which e-commerce Transactions are acquired
must reflect the country in which the Merchant is located;
Note
A variation to this Rule provision appears in Chapter 12, Europe Region Rules.

2-3

2.3 Area of Use
b. The Merchant implements MasterCard SecureCode; and

c. The Customer authorizes, clears, and settles the Transaction through
the Interchange System; and
d. The Customer authorizes, clears, and settles each local Transaction in
a manner that does not significantly disadvantage an Issuer in the same
country in the judgment of the Corporation; and
e. The Customer, the Merchant, the Third Party Processor (if any), and the
Data Storage Entity (if any) comply with the MasterCard Site Data
Protection Program.
The Customer must apply for and receive permission from the Corporation
before acquiring e-commerce Transactions under this Rule 2.3.1,
paragraph 8.
A Merchants location generally is deemed to be the address set forth in the
Merchant Agreement. The location of a Merchant conducting e-commerce,
mail order, phone order, or recurring payment Transactions may be
determined based in full or in part on where the entity holds a license, pays
taxes, or maintains an address for purposes of receiving mail. Any
disagreement between Customers regarding a Merchant location may be
referred to the Corporation for final resolution.
As used in this Rule, a local Transaction means a Transaction by a
Cardholder residing in a country that takes place at a Merchant located in the
same country.
2.3.2 Central AcquiringEurope Region Only
Note
Rules on this topic appear in Chapter 12, Europe Region Rules.
2.3.3 Transfer of Cards to India Residents is Prohibited without

a License
An Issuer that reasonably believes that its Cardholders will distribute, transfer,
or in any way provide Cards to residents of India, that are issued by the Issuer
must become Licensed in India and receive written authorization from the
Reserve Bank of India.
2-4


2.4 Special Conditions of Membership or License
Unless the Issuer is Licensed in India and has written authorization from the
Reserve Bank of India, an Issuer that issues Cards to Cardholders that reside
outside of India must communicate to those Cardholders in the terms and
conditions of the cardholder agreement that such Cards must not be
distributed, transferred, or in any way provided to residents of India.
2.4 Special Conditions of Membership or License

The Corporation may condition initial or continued Membership or any License
or the conduct of any Activity on compliance with special conditions, such as
the establishment of escrow arrangements, the delivery of letters of credit, or
other arrangements that the Corporation deems necessary or appropriate.
The Corporation has the right at any time to require that a Customer enter into
a security arrangement with the Corporation. If a Customer does not enter
into a security arrangement with the Corporation that is satisfactory to the
Corporation, the Corporation has the right at any time to collect from the
Customer, in addition to any amount otherwise due and payable by the
Customer to the Corporation or to other Customers, such additional amount
from the Customer as the Corporation deems appropriate as collateral. The
Corporation has the right to collect any such additional amount by any means
available to the Corporation, including, by way of example and not limitation:
1. By taking any funds deposited by any persons from any account that the
Corporation is authorized to draw upon for any purpose.
2. By taking any funds due to such Customer from other Customers.
3. By taking any funds being paid by such Customer to other Customers.
In each case where the Corporation takes any such collateral, the Corporation
has the right, as it deems necessary or appropriate, to take ownership of such
collateral (such as by placing funds taken in an account in the Corporations
name as a secured party) and to apply such collateral as payment toward any
obligations of the Customer to the Corporation or otherwise owed by the
Customer under the Standards.
Each Customer hereby appoints and authorizes the Corporation to act as the
Customers attorney and agent for any and all purposes in connection with the
filing, recording, or other perfecting of the Corporations rights under the
Standards. This Rule constitutes a security agreement between each Customer
and the Corporation, and vests in the Corporation a security interest in any
collateral collected as provided in these Standards, granted contemporaneously
in exchange and as a condition for the continuation of the Customers
Membership and Licenses.

2-5

2.5 MasterCard Anti-Money Laundering Program
2.5 MasterCard Anti-Money Laundering Program

An application for Membership or License must be accompanied by affirmative
evidence satisfactory to the Corporation that the applicant is in compliance
with the MasterCard Anti-Money Laundering Program (the AML Program).
Each Customer must, at all times, be in compliance with the AML Program.
The Corporation has exclusive authority to determine at any time whether an
applicant or a Customer is in compliance with the AML Program. Each
applicant to be a Customer and each Customer must cooperate with any effort
by the Corporation to evaluate such applicants or Customers compliance with
the AML Program. The Corporation may condition initial or continued
Membership or License or both upon compliance with special conditions that
the Corporation deems necessary or appropriate to ensure continued
compliance with the AML Program by the applicant, Customer, and
Corporation, as the case may be.
2.6 Obligation to Issue Cards

Each Principal or Association, together with its Sponsored Affiliates, must have
issued and outstanding a reasonable number of Cards based on such criteria as
the Corporation may deem appropriate from time to time. In addition to any
other action that the Corporation deems appropriate, a Principal or Association
that does not issue and have outstanding the requisite number of Cards will be
assessed an additional 20% of the assessment paid on its acquiring volume for
each year in which the Card-issuing shortfall exists.
If an approved application for issuance of a payment card or device indicates
the applicants preference, by way of a checkmark or otherwise, to be issued a
Card, then the Issuer must issue a Card.
Note
Variations to this Rule appear in Chapter 10a, New Zealand Rules; Chapter
11a, Canada Region Code of Conduct Related Rules; Chapter 12, Europe
Region Rules; Chapter 13, Latin America and the Caribbean Region Rules;
Chapter 14a, South Africa Rules; and Chapter 15, United States Region
Rules.
2.7 Liability for Assigned ICAs and BINs

Each Principal or Association is responsible to the Corporation and to all other
Customers for Transactions arising from the use of the ICA(s)/BIN(s) that the
Corporation assigns to the Principal or Association.
2-6


2.8 Obligations of a Sponsor
Neither a Principal or Association nor any of its Sponsored Affiliates may use
the Principals or Associations BIN to issue Cards other than as specified by
the Corporation. By way of example and not limitation, a Customer may not
issue a consumer Program Card using a MasterCard Corporate Card BIN.
Note
Additions to this Rule appear in Chapter 10a, New Zealand Rules; Chapter
12a, Europe Region Debit-related Rules; Chapter 14a, South Africa Rules;
and Chapter 15a, United States Region Debit-related Rules.
2.7.1 Settlement Liability for Debit Licensees
Note
A Rule on this topic appears in Chapter 15, United States Region Rules.
2.7.2 Settlement Liability for Type I TPPs that Sponsor

Affiliates
Note
2.8 Obligations of a Sponsor

Each Principal or Association must advise the Corporation promptly if an
Affiliate ceases to be Sponsored by the Principal or Association or changes its
name or has a transfer of Ownership or Control.
2.9 Name Change

The Corporation must receive written notice at least sixty (60) calendar days
before the effective date of any proposed Customer name change. A Customer
that proposes to change its name must promptly undertake necessary or
appropriate action to ensure that its Membership and License(s) and Activities
disclose the true identity of the Customer.

2-7

2.10 Fees, Assessments, and Other Payment Obligations
2.10 Fees, Assessments, and Other Payment Obligations

Each Customer is responsible to timely pay to the Corporation all fees,
charges, assessments and the like applicable to Membership and Activity as
may be in effect from time to time, including those set forth in the applicable
regional MasterCard Consolidated Billing System manual.
If a Customer does not timely pay the Corporation or any other person any
amount due under the Standards, then the Corporation has the right,
immediately and without providing prior notice to the Customer, to assess and
collect from that Customer, on a current basis as the Corporation deems
necessary or appropriate, such amount, as well as the actual attorneys fees
and other costs incurred by the Corporation in connection with any effort to
collect such amount from that Customer.
The Corporation may assess and collect such amount at any time after the
applicable amount becomes due, by any means available to the Corporation,
which shall specifically include, by way of example and not limitation:
1. The taking or setoff of funds or other assets of the Customer held by the
Corporation;
2. The taking or setoff of funds from any account of the Customer upon
which the Corporation is authorized to draw;
3. The taking of funds due to the Customer from any other Customer; and
4. The taking of funds being paid by the Customer to any other Customer.
Each Customer expressly authorizes the Corporation to take the Customers
funds and other assets as authorized by this Rule, and to apply such funds and
other assets to any obligation of the Customer to the Corporation or any other
person under the Standards, and no Customer shall have any claim against the
Corporation or any other person in respect of such conduct by the
Corporation. Each Customer agrees upon demand to promptly execute,
acknowledge and deliver to the Corporation such instruments, agreements,
lien waivers, releases, and other documents as the Corporation may, from time
to time, request in order to exercise its rights under this Rule.
2-8


2.11 Sale or Change in Ownership or Control of Customer or Portfolio
2.10.1 Taxes and Other Charges

Each Customer must pay when due all taxes charged by any country or other
jurisdiction in which the Customer conducts Activity with respect to such
Activity. In the event the Corporation is charged taxes or other charges by a
country or other jurisdiction as a result of or otherwise directly or indirectly
attributable to Activity, the Customer is obligated to reimburse the Corporation
the amount of such taxes or other charges and the Corporation may collect
such taxes or other charges from the settlement account of the Principal or
Association responsible in accordance with the Standards for the Activity that
gave rise to the charge.
2.11 Sale or Change in Ownership or Control of Customer

or Portfolio
Note
A variation to this Rule appears in Chapter 15, United States Region Rules.
The Corporation must receive written notice at least thirty (30) calendar days
before the effective date of any proposed transfer or assignment of an Issuer or
Acquirer portfolio, or any proposed change of Control of a Customer. A
Customer must promptly provide the Corporation any information requested
by the Corporation relating to such an event or proposed event and the
Corporation may:
1. Suspend or impose conditions on Membership or any License granted to
the Customer or both.
2. Amend rights or obligations or both of a Customer.
3. Terminate the Membership of any Customer that:
a. transfers or attempts to transfer Control of the Customer to an entity
that is not a Customer; or
b. merges into or is consolidated with an entity that is not a Customer; or
c. sells all or substantially all of its assets; or
d. sells all or substantially all of its Issuer or Acquirer portfolio(s); or
e. experiences a change in Control or Ownership; or
f.
transfers or assigns, or attempts to transfer or assign, its Membership.

2-9

2.12 Suspension and Amendment of Membership or License or Both
2.12 Suspension and Amendment of Membership or

License or Both
The Corporation may, in its sole discretion:
1. Suspend the Membership of a Customer or any License granted to a
Customer or both; or
2. Amend the rights or obligations or both of a Customer; or
3. Amend the rights or obligations or both set forth in a License.
A Customer that has been suspended or whose License has been suspended
must continue to comply with the Standards and must also comply with such
additional requirements as the Corporation may impose from time to time. In
addition, if Membership is suspended or terminated for any reason, the
Corporation may continue a License of the suspended or terminated Customer
for purposes of the orderly winding up, continuation or transfer of the
suspended or terminated Customers business, resumption or reinstatement of
Membership, or other purpose. Such continuation of a License is subject to
such terms as may be required by the Corporation.
2.13 Rights, Liabilities, and Obligations of Terminated

Customers
Each License granted to a Customer is terminated effective at the time of the
termination of the Customers Membership. All of the following apply with
respect to a terminated Customer:
1. Except as otherwise set forth in the Standards, a terminated Customer has
no right to use any Mark or to otherwise engage or participate in any
Activity. A terminated Customer must immediately cease its use of all
Marks and must ensure that such Marks are no longer used by any of the
following:
a. The Customers Merchants;
b. Any Affiliate Sponsored by a terminated Principal or Association;
c. Any Service Providers that performs any service described in Rule 7.1,
which service directly or indirectly supports a Program of a terminated
Principal or Association and/or of any Affiliate Sponsored by a
terminated Principal or Association;
d. Merchants of an Affiliate Sponsored by a terminated Principal or
Association; or
2-10


2.13 Rights, Liabilities, and Obligations of Terminated Customers
e. Any other entity or person acting to provide, directly or indirectly,

service related to Activity undertaken pursuant to the authority or
purported authority of the terminated Customer.
2. A terminated Customer is not entitled to any refund of dues, fees,
assessments, or other payments and remains liable for, and must promptly
pay to this Corporation (a) any and all applicable dues, fees, assessments,
or other charges as provided in the Standards and (b) all other charges,
debts, liabilities, and other amounts arising or owed in connection with the
Customers Activities, whether arising, due, accrued, or owing before or
after termination of such Membership.
3. The terminated Customer must promptly cancel all Cards then outstanding
that were issued by the terminated Customer and, if the terminated
Customer is a Principal or Association, by all of that Customers Sponsored
Affiliates.
4. The terminated Customer must promptly cause all of its Cardholders and, if
the terminated Customer is a Principal or Association, the Cardholders of
its Sponsored Affiliates to be notified of the cancellation of Cards in
writing. Such notice must be in a form and substance satisfactory to the
Corporation.
5. If a terminated Customer does not take an action that this Rule or any
other Standard or that the Corporation otherwise requires, the Corporation
may take any such required action without prior notice to the terminated
Customer and on behalf of and at the expense of the Customer.
6. If a Principal or Association that Sponsors one or more Affiliates terminates
its Membership, such Principal or Association must cause each of its
Sponsored Affiliates to take the actions required of a terminated Customer
under this Rule, unless and to the extent that any such Affiliate become an
Affiliate Sponsored by a different Principal or Association within a period
of time acceptable to the Corporation.
7. If an Affiliate terminates its Membership or its Sponsorship by a Principal
or Association, the Sponsoring Principal or Association must cause the
Affiliate to take the actions required of a terminated Customer under this
Rule. If that Affiliate fails to so comply, the Corporation may take any
action that this Rule requires without notice to the Affiliate or the
Sponsoring Principal or Association on behalf of and at the expense of the
Sponsoring Principal or Association.
8. A terminated Customer has no right to present records of Transactions
effected after the date of termination to any other Customer, except as
permitted by the Standards.
9. A terminated Customer continues to have the rights and obligations set
forth in the Standards and License(s) with respect to its use of the Marks
and conduct of Activity until such time as the Corporation determines such
rights or obligations or both cease.
2-11

2.14 Failure of Principal or Association to Discharge Obligations
10. A terminated Customer has a continuing obligation to provide promptly to

the Corporation, on request, Customer Reports and any other information
about Activity.
11. A terminated Customer must, at the option of the Corporation, immediately
either destroy, or take such steps as the Corporation may require
regarding, all confidential and proprietary information of the Corporation
in any form previously received as a Customer.
This Rule does not apply in the event that the Corporation has approved:
1. A transfer of Membership of a Principal to an Affiliate Sponsored by a
Principal or Association; or
2. A transfer of Membership of an Affiliate to a Principal or Association; or
3. A transfer of Sponsorship of an Affiliate to a different Principal or
Association.
2.14 Failure of Principal or Association to Discharge

Obligations
Subject to the limitation set forth in Rule 2.17, if a Principal or Association fails
to discharge any obligation to any other Customer(s) arising from or in
connection with any Activity that it has conducted as a Customer, the
Corporation may satisfy such obligation(s) to the extent such obligation(s) is
not otherwise satisfied. To the extent the Corporation satisfies a Customers
settlement obligation, the satisfaction constitutes an automatic transfer, sale,
and absolute assignment to the Corporation, and not an assignment for
security purposes, of all right, title, and interest in the receivable. Such
satisfaction of the obligation also entitles the Corporation to all records and
documents related to the receivable, including the name and address of each
Cardholder obligated to satisfy any part of the receivable. The Customer must
promptly deliver all such records and documents to the Corporation or to the
Corporations designee. Any proceeds received by the Customer from any
receivable must be held in trust by the Customer and paid to the Corporation
as soon as practicable.
Any satisfaction of any Customer obligation by the Corporation may be
recovered by the Corporation through an assessment of any one or more of
the Customers.
The Corporation may take any action the Corporation deems necessary or
appropriate to protect its interest in the receivable and to protect the integrity
of the affairs of the Corporation, such as, by way of example and not
limitation, by:
2-12


2.15 System Liquidity
1. Rejecting Transaction authorization requests relating to use of the

Customers Cards.
2. Establishing a settlement account for monies due to and from the
Customer.
3. Without prior notice to the Customer, holding any monies due to the
Customer from the Corporation and net settlement and apply the monies to
the amounts the Customer owes to the Corporation and to other Customers
arising from Membership.
4. Listing some or all of a Customers Card account numbers on the Electronic
Warning Bulletin file, the international Warning Notice(s), or both, or in
other or similar publications.
5. Effecting chargebacks on behalf of the Customer.
6. Overseeing the disposition of unused Card stock and any other media
bearing security-sensitive information, including Card account information.
2.15 System Liquidity

If the Corporation requires funds to maintain system liquidity and, as set forth
in Rule 2.14, to meet any obligations that a Customer or Customers have failed
to discharge (for purposes of this Rule, Non-discharged Customer
Obligations), the Corporation may collect funds directly from the settlement
accounts of Customers upon reasonable notice to the Customers. In such
event, the funds will be collected by the Corporation by:
1. Decreasing the gross daily settlement amounts of outgoing volumes of
Principals or Associations by up to (five) 5 percent of the amount settled
on one or more days; and
2. Increasing the gross daily settlement amounts of incoming volumes of
Principals or Associations by up to (five) 5 percent of the amount settled
on one or more days.
This collection may continue as long as deemed necessary or appropriate to
satisfy Non-discharged Customer Obligations and to ensure system liquidity or
until the Corporation deems such collection no longer necessary or
appropriate.
Collected funds are treated as advance payments on the sums that may be
required from the Principals or Associations in the allocation among Customers
of loss related to a Non-discharged Customer Obligations. If the funds
collected from a Customer exceed the amount ultimately allocated to it in
connection with a Non-discharged Customer Obligations, the excess amount
will be returned to the Customer with interest. If the funds collected from a
Customer do not exceed the amount allocated to it, the Customer will pay any
2-13

2.16 Loss Allocation Among Customers
shortage to the Corporation with interest. Any interest payment by or to the

Corporation will be based on the average effective Federal Reserve Funds
Earning Credit Rate (or if such rate is not published, a rate that the Corporation
designates) during the time between the incidence of the Customer funding
and the final allocation.
2.16 Loss Allocation Among Customers

Any loss that the Corporation incurs, or for which the Corporation may
otherwise be responsible due to the failure of a Customer, whether or not
intentional, to perform any of its Membership obligations, may be allocated
among the Customers by the Corporation in such manner and at such time(s)
as the Corporation determines to be appropriate.
2.17 Limitation of Obligation

Except as otherwise set forth in the Standards, the Corporation has no
obligation with respect to the failure of a Principal or Association, for any
reason, to discharge any obligation arising out of or in connection with
Membership or any License or Activity, including, without limitation, any one
or more of the following obligations:
1. An obligation arising from a Transaction in which the Customer, taken
together with any of its sponsored Affiliates, acts as both the Issuer and the
Acquirer.
2. An obligation arising from a Transaction in which the Issuer and Acquirer
are related parties or are under common Control by one or more parents,
holding companies, or other entities.
3. Any obligation arising, or then existing, with respect to a Transaction
settled outside of the Corporations settlement system, if the Principal or
Association has failed with respect to its settlement obligation, and the
Corporation has not received actual written notice of the failure from or on
behalf of the intended settlement recipient by midnight of the local
business day following such failure. As used herein, Transactions settled
outside of the Corporations settlement system include, without limitation,
Transactions settled via:
a. A processor or any other entity or person net settling between two or
more Principals or Associations;
b. Indirect or consolidated settlement arrangements when the Corporation
is not directly settling with a Principal or Association;
c. Bilateral or other local settlement arrangements including those cleared
via the Corporations Interchange System; and
2-14


2.18 Liability for Owned or Controlled Entities
d. Any other arrangement that the Corporation deems to be an alternate

arrangement.
4. Any obligation arising, or then existing, with respect to a cross-border
Transaction, if the Principal or Association has failed to comply with the
Standards.
5. An obligation of its Affiliate.
6. Any obligation of a Principal or Association to any of its Affiliates.
2.18 Liability for Owned or Controlled Entities

Each Customer (referred to for purposes of this Rule as a Responsible
Customer) shall irrevocably and unconditionally guarantee, as a primary
obligor and not merely as a surety, to the Corporation and all other Customers,
the prompt payment and performance of the obligations (the Guaranteed
Obligations) of each of the Responsible Customers affiliated entities arising
under the Standards (as the term Standards is defined in the Rules, the
Maestro Global Rules, and the Cirrus Worldwide Operating Rules, respectively)
and from each such affiliated entitys MasterCard, Maestro, and Cirrus Activities
and use of any of the Marks (as defined in the Rules) and Service Marks (as
defined in the Maestro Global Rules and the Cirrus Worldwide Operating
Rules).
For purposes of this Rule, a Responsible Customers affiliated entity is defined
as follows:
1. A Customer that is Owned or Controlled by the Responsible Customer or is
owned or controlled by the Responsible Customer and another Customer
or Customers; or
2. A Customer that, with the Responsible Customer, is under common
Ownership by, or Control of, another entity; or
3. A Customer that Owns or Controls the Responsible Customer or shares
Ownership or Control of the Responsible Customer with another Customer
or Customers.
The obligations of each Responsible Customer under this Rule shall be
continuing, absolute, and unconditional and shall not be discharged or
impaired or otherwise affected by any act or omission (including any renewal,
extension, amendment, waiver or unenforceability of any of the Guaranteed
Obligations) that may vary the risk of such Responsible Customer or otherwise
operate as a discharge of the obligations of such Responsible Customer as a
matter of law or equity, and all defenses of the Responsible Customer with
respect thereto are waived to the fullest extent permitted by applicable law.

2-15

2.19 Risk of Loss
The Responsible Customers liability to the Corporation and all other

Customers is a primary obligation, while the Corporations liability, if any, to
another Customer is secondary, in that it only arises if a Responsible Customer
is unable to pay its Guaranteed Obligations in full. Any assessments imposed
on a Customer for liability under this Rule may be collected by the
Corporation, at its option, from the Customers settlement account or by any
other means available.
A Responsible Customer may not be exempted from this Rule except upon
written notice by the General Counsel of the Corporation.
2.19 Risk of Loss

Each Customer bears all risk of loss, and the Corporation bears no risk of loss
with respect to all amounts owed by the Customer under the Standards except
to the extent any such amount is received by the Corporation, free and clear.
Each Customer remains fully responsible for fulfillment of, and must take all
actions necessary to fulfill, all of its obligations under the Standards, regardless
of whether the Customer designates a third party to perform all or any part of
such obligations on the Customers behalf. The fact that the Customer has
paid any portion of the amount owed to such third party designee does not
discharge the Customers obligations to the Corporation.
The Corporation may draw on the Customers funds to fulfill any of the
Customers obligations under the Standards, regardless of whether those funds
are held or Controlled by the Customer or by any third party designee, to the
same extent the Corporation is entitled to draw on funds from any settlement
account or funds of the Customer under the Standards, and regardless of
whether those funds are commingled with any other funds. If the Corporation
draws on the Customers funds, the Corporation is not required to reimburse
the Customer or any third party (whether a third party designee of the
Customer or another Customer) for funds drawn which are owned by any of
them or otherwise subject to any of their rights. The Customer and any third
party (whether a third party designee of the Customer or another Customer)
bear all risk and liability related to the funds drawn and jointly and severally
indemnify and hold the Corporation harmless from all liability and claims
arising from any such draw of funds. Each Customer bears all risk of loss, and
the Corporation bears no risk of loss with respect to all amounts owed by the
Corporation to the Customer under the Standards once the payment is received
by the Customer or a third party designee of the Customer and regardless of
whether or how such Transactions are cleared and settled. Each Customer
must notify the Corporation promptly in writing if any third party designee
commingles funds received for or from the Customer in connection with the
Customers Transactions with any other funds.
2-16


Compliance Zones
Each Customer must notify the Corporation promptly in writing of the details
of any failure of the Customer or any third party designee of the Customer to
meet any of their obligations with respect to payment of funds owed under the
Standards.
If a Customers third party designee advances funds on behalf of the Customer
to pay the Corporation or any other party entitled to receive those funds under
the Standards, then such payment is deemed to be a payment by the
Customer, and the Customer and the third party designee of the Customer
jointly and severally bear all of the risks of loss and must jointly and severally
indemnify and hold the Corporation harmless from any and all liability and
claims arising from any such payment.
The Customer must:
1. Obtain the prior written agreement of any third party designee of the
Customer that may be given access to any funds owed by or to the
Customer pursuant to the Standards; and
2. Guarantee any such third party designees compliance with all its
obligations to the Corporation under this Rule.
Note
An addition to this Rule appears in Chapter 15a, United States Region Debitrelated Rules.
Compliance Zones
noncompliance categories are assigned for the purposes of noncompliance
assessments under the compliance framework in Rule 3.1.2.
Rule Number
Rule Title
Category
2.1
Purpose of License; Eligibility
2.2
License Application
2.3
Area of Use
2.4
Special Conditions of Membership or License
2.5
MasterCard Anti-Money Laundering Program
2.6
Obligation to Issue Cards
2.7
Liability for Assigned ICAs and BINs
2.8
Obligations of a Sponsor

2-17

Compliance Zones
Rule Number
Rule Title
Category
2.9
Name Change
2.10
Fees, Assessments, and Other Payment Obligations
2.11
Sale or Change in Ownership or Control of Customer or Portfolio
2.12
Suspension and Amendment of Membership or License or Both
2.13
Rights, Liabilities, and Obligations of Terminated Customers
2.14
Failure of Principal or Association to Discharge Obligations
2.15
System Liquidity
2.16
Loss Allocation Among Customers
2.17
Limitation of Obligation
2.18
Liability for Owned or Controlled Entities
2.19
Risk of Loss
2-18

Customer Obligations
This chapter contains information about Membership obligations.
3.1 Standards ....................................................................................................... 3-1

3.1.1 Variances .............................................................................................. 3-1
3.1.2 Failure to Comply with a Standard...................................................... 3-2
3.1.2.1 Noncompliance Categories ......................................................... 3-2
3.1.2.1.1 Category APayment System Integrity ............................ 3-2
3.1.2.1.2 Category BVisible to Customers .................................... 3-3
3.1.2.1.3 Category CEfficiency and Operational Performance .... 3-3
3.1.2.2 Noncompliance Assessments...................................................... 3-3
3.1.2.3 Certification ................................................................................. 3-5
3.1.2.4 Review Process ........................................................................... 3-5
3.1.2.5 Resolution of Review Request .................................................... 3-5
3.1.3 Rules Applicable to Intracountry Transactions ................................... 3-5
3.1.4 Communication of Intracountry Fallback Rules.................................. 3-5
3.2 Conduct of Activity........................................................................................ 3-6
3.2.1 Conflict with Law ................................................................................. 3-6
3.2.2 Obligations of a Sponsor ..................................................................... 3-6
3.2.3 Affiliates ................................................................................................ 3-6
3.2.4 Materially Adverse Financial Condition or Discrepancy..................... 3-7
3.2.5 Compliance........................................................................................... 3-7
3.2.6 NondiscriminationEurope Region Only .......................................... 3-7
3.2.7 Acquirers............................................................................................... 3-8
3.3 Indemnity and Limitation of Liability ........................................................... 3-8
3.4 Choice of Laws ............................................................................................ 3-10
3.5 Examination and Audit................................................................................ 3-10
3.6.1.2 Information to Merchants ......................................................... 3-13
3.6.1.3 Transaction Currency Information ........................................... 3-13
3.6.2 Confidential Information of Customers ............................................. 3-13
3.6.3 Use of Corporation Information by a Customer ............................... 3-15
Corporations Affiliates ................................................................................ 3-15
3-i
3.6.5 Data ProtectionEurope Region Only ............................................. 3-15

3.7 Quarterly Member Report ........................................................................... 3-16
3.7.1 Report Not Received .......................................................................... 3-16
3.7.2 Erroneous or Incomplete Report ....................................................... 3-16
3.7.3 Overpayment Claim ........................................................................... 3-17
3.8.2 Authorization Routing ........................................................................ 3-18
3.8.4 Issuer Performance Standards............................................................ 3-19
3.9.1 Safeguard Card Account and Transaction Information .................... 3-20
3.9.2 Satisfaction of Minimum Customer Obligations ................................ 3-20
3.9.3 Satisfaction of Minimum Financial Requirements ............................. 3-20
3.11 Pay-Per-Call Service................................................................................... 3-21
3.12 Encashment of MasterCard Travelers Cheques ........................................ 3-21
3.13 Accounts on a Card ................................................................................... 3-22
3-ii

3.1 Standards
3.1 Standards
From time to time, the Corporation promulgates Standards governing the
conduct of Customers and Activities. The Corporation has the sole right in its
sole discretion to interpret and enforce the Standards. The Corporation has the
right, but not the obligation, to resolve any dispute between or among
Customers including, but not limited to, any dispute involving the Corporation,
the Standards, or the Customers respective Activities, and any such resolution
by the Corporation is final and not subject to appeal or other reviews. In
resolving disputes between or among Customers, or in applying its Standards
to Customers, the Corporation may deviate from any process in the Standards
or that the Corporation otherwise applies, and may implement an alternative
process, if an event, including, without limitation, an account data compromise
event, is, in the sole judgment of the Corporation, of sufficient scope,
complexity and/or magnitude to warrant such deviation. The Corporation will
exercise its discretion to deviate from its Standards only in circumstances the
Corporation determines to be extraordinary. Any decision to alter or suspend
the application of any process(es) will not be subject to appeal, review or
other challenge. The Corporation reserves the right to limit, suspend or
terminate Membership or Membership privileges of any Customer that does
not comply with any Standard or with any decision of the Corporation with
regard to the interpretation and enforcement of any Standard, or that in any
respect violates any Standard or applicable law.
3.1.1 Variances
A variance is the consent by the Corporation for a Customer to act other than
in accordance with a Standard. Only a Customer may request a variance. Any
such request must specify the Rule(s) or other Standard(s) for which a variance
is sought. The request must be submitted to the Corporation in writing,
together with a statement of the reason for the request.
If the Customer claims to be prevented from fully complying with a Standard
because of law or regulation, the Customer must provide a copy of the law or
regulation and if such law or regulation is in a language other than English, a
complete certified English translation. As a condition of granting a variance for
that reason, the Corporation may require the Customer to undertake some
other form of permissible Activity.
The Corporation may assess a fee to consider and act on a variance request.

3-1
3.1 Standards
3.1.2 Failure to Comply with a Standard

Failure to comply with any Standard(s) adversely affects the Corporation and
its Customers and undermines the integrity of the MasterCard system.
Accordingly, a Customer that fails to comply with any Standard is subject to
assessments (noncompliance assessments) as set forth in the Standards. In
lieu of or in addition to the imposition of a noncompliance assessment, the
Corporation, in its sole discretion, may require a Customer to take such action
and the Corporation itself may take such action as the Corporation deems
necessary or appropriate to ensure compliance with the Standards and
safeguard the integrity of the MasterCard system. In the exercise of such
discretion, the Corporation may consider the nature, willfulness, number and
frequency of occurrences and possible consequences resulting from a failure to
comply with any Standard(s). The Corporation may provide notice and limited
time to cure such noncompliance before imposing a noncompliance
assessment.
3.1.2.1 Noncompliance Categories

From time to time, the Corporation establishes programs that address instances
of noncompliance with particular Standards, such as the Standards pertaining
to account data compromise events set forth in section 10.2 of the Security
Rules and Procedures manual. With respect to noncompliance with a Standard
not addressed in such a program, the Corporation has implemented a
compliance framework designed to group noncompliance with the Standards
into three (3) categories. Every instance of noncompliance not addressed in a
program established by the Corporation will fall within at least one of these
categories.
3.1.2.1.1 Category APayment System Integrity
Category A noncompliance affects payment system integrity. The Corporation
has the authority to impose monetary noncompliance assessments for Category
A noncompliance with the Standards. Payment system integrity violations
include, but are not limited to, noncompliance involving Membership and
License requirements, Merchant signing and monitoring requirements, or
protection of Card, account, or Transaction information.
3-2

3.1 Standards
3.1.2.1.2 Category BVisible to Customers

Category B noncompliance addresses conduct that is visible to customers. The
Corporation has the authority to impose monetary noncompliance assessments
for Category B noncompliance or, in the alternative, may provide notice and a
limited time to cure such noncompliance before imposing monetary
assessments. Visible to customers violations include, but are not limited to,
noncompliance involving the use of the Marks, identification of the Merchant
at the Point of Interaction, the setting of minimum and maximum Transaction
amounts, and the payment of Merchants and Sub-merchants for Transactions.
3.1.2.1.3 Category CEfficiency and Operational Performance
Category C noncompliance addresses efficiency and operational performance.
The Corporation has the authority to impose monetary noncompliance
assessments for Category C noncompliance or, in the alternative, may provide
notice and a limited time to cure such noncompliance before imposing
monetary assessments. Efficiency and operational performance violations
include, but are not limited to, noncompliance involving presentment of
Transactions within the required time frame, supplying Merchants with
materials required for Transaction processing, and the obligation to provide the
Corporation with requested information.
3.1.2.2 Noncompliance Assessments

The following schedule pertains to any Standard that does not have an
established compliance program. The Corporation may deviate from this
schedule at any time.
Noncompliance
Category
Assessment Type
Assessment Description
Per Violation
First violation: up to USD 25,000

Second violation within 12 months: up to USD 50,000
Third violation within 12 months: up to USD 75,000
Fourth and subsequent violations within 12 months:
Up to USD 100,000 per violation
Variable Occurrence
(by device or Transaction)
Up to USD 2,500 per occurrence for the first 30 days

Up to USD 5,000 per occurrence for days 3160
Up to USD 20,000 per occurrence for subsequent
violations

3-3
3.1 Standards
Noncompliance
Category
Assessment Type
Assessment Description
Variable Occurrence
(by number of Cards)
Up to USD 0.50 per card

Minimum USD 1,000 per month per card base
No maximum per month per card base
No maximum per month per Card base or per all Card
bases
Per Violation

Variable Occurrence

violations
Variable Occurrence
Up to USD 0.30 per Card

Minimum USD 1,000 per month per Card base
Maximum USD 20,000 per month per Card base
Maximum USD 40,000 per month per all Card bases
Per Violation

Variable Occurrence

violations
Variable Occurrence
Up to USD 0.15 per card

Minimum USD 1,000 per month per Card base
Maximum USD 10,000 per month per Card base
Maximum USD 20,000 per month per all Card bases
In the above table all days refer to calendar days and violations of a Standard
are tracked on a rolling 12-month basis.
3-4

3.1 Standards
3.1.2.3 Certification
A senior executive officer of each Principal and Association must, if requested
by the Corporation, promptly certify in writing to the Corporation the status of
compliance or noncompliance with any Standard by the Customer or by any of
such Customers Sponsored Affiliates.
3.1.2.4 Review Process

A Customer may request that the Secretary of this Corporation review an
assessment imposed by the Corporation for noncompliance with a Standard.
Such a request must be submitted in writing and signed by the Customers
principal contact. The request must be postmarked no later than 30 calendar
days after the date of the disputed assessment.
The Corporation may assess a USD 500 fee to consider and act on a request
for review of a noncompliance assessment.
3.1.2.5 Resolution of Review Request

When a Customer requests review of an assessment for noncompliance with a
Standard, the Secretary of this Corporation may take such action as he or she
deems necessary or appropriate or may elect not to act. The Secretary may
delegate authority to act or not to act with respect to any particular matter or
type of matter. If the Secretary or his or her designee elects to conduct further
inquiry into the matter, each Customer must cooperate promptly and fully. If
the Secretary or his or her designee makes a recommendation of action to
resolve the matter, such recommendation is final and not subject to further
review or other action.
3.1.3 Rules Applicable to Intracountry Transactions
Note
A Rule on this topic appears in Chapter 12, Europe Region Rules.
3.1.4 Communication of Intracountry Fallback Rules
Note

3-5
3.2 Conduct of Activity

Each Customer at all times must conduct Activity in compliance with the
Standards and with all applicable laws and regulations. Each Customer must
conduct all Activity and otherwise operate in a manner that is financially sound
and so as to avoid risk to the Corporation and to other Customers.
3.2.1 Conflict with Law

A Customer is not required to undertake any act that is unambiguously
prohibited by applicable law or regulation.
3.2.2 Obligations of a Sponsor

Each Principal and Association that Sponsors one or more Affiliates must cause
each such Affiliate to comply with all Standards applicable to the Activity of
that Affiliate. The Principal and Association is liable to the Corporation and to
all other Customers for all Activities of any Affiliate Sponsored by the Principal
and Association and for any failure by such Sponsored Affiliate to comply with
a Standard or with applicable law or regulation.
If an Affiliate Sponsored by a Principal and Association ceases to be so
Sponsored by that Principal and Association, such Principal and Association
nonetheless is obligated, pursuant to and in accordance with the Standards, to
acquire from other Customers the records of Transactions arising from the use
of Cards issued by that formerly Sponsored Affiliate and whether such
Transactions arise before or after the cessation of the Sponsorship.
3.2.3 Affiliates
Except to the extent any liability or obligation arising under a Standard has
been satisfied by a Principal and Association, each Affiliate is responsible for
the liabilities and obligations arising out of, or in connection with, its Activities,
regardless of any:
1. Action taken by such Affiliate to satisfy such liability or obligation with,
through or by a Principal and Association that Sponsors or Sponsored such
Affiliate, or
2. Agreement between any Principal and Association and such Affiliate.
3-6

In accordance with the Standards and in compliance with applicable laws and
regulations, each Principal and Association will have access to and may use or
otherwise process its Sponsored Affiliates confidential information and
Confidential Transaction Data (as defined in Rule 3.6.2) in connection with
authorization, settlement, clearing, fraud reporting, chargebacks, billing, and
other related activities.
3.2.4 Materially Adverse Financial Condition or Discrepancy

A Customer must promptly report to the Corporation any materially adverse
financial condition or discrepancy or suspected materially adverse financial or
discrepancy relating to the Customer or, in the case of a Principal and
Association, any Affiliate Sponsored by the Principal and Association. The
Member must refer or, if applicable, cause the Affiliate to refer, such
condition(s) or discrepancy(ies) to independent certified public accountants or
another person or firm satisfactory to the Corporation for evaluation and
recommendation as to remedial action, and promptly provide the Corporation
a copy of such evaluation and recommendation after receipt thereof.
3.2.5 Compliance
From time to time, the Corporation may develop means and apply criteria to
evaluate a Customers compliance with Rule 3.2. Each Customer must fully
cooperate with any effort by the Corporation and the Corporations
representatives to evaluate a Customers compliance with Rule 3.2.
In the event that the Corporation determines that a Customer is not complying
or may not on an ongoing basis comply with the requirements of Rule 3.2, the
Corporation may:
1. Impose special terms upon the Customer as the Corporation deems
necessary or appropriate until each condition or discrepancy is resolved to
the Corporations satisfaction so as to enable the Customer to be and to
remain in full compliance with Rule 3.2, or
2. Require the Customer to withdraw from Membership.
3.2.6 NondiscriminationEurope Region Only
Note
A Rule on this topic appears in Chapter 12b, SEPA Rules.

3-7
3.3 Indemnity and Limitation of Liability
3.2.7 Acquirers
Note
A Rule on this topic appears in Chapter 10, Asia/Pacific Region Rules, Chapter
13, Latin America and the Caribbean Region Rules, and Chapter 15, United
States Region Rules.

Each Customer (each, for the purposes of this Rule, an Indemnifying
Customer) must protect, indemnify, and hold harmless the Corporation and
the Corporations parent and subsidiaries and affiliated entities, and each of the
directors, officers, employees and agents of the Corporation and the
Corporations parent and subsidiaries and affiliated entities from any actual or
threatened claim, demand, obligation, loss, cost, liability and/or expense
(including, without limitation, actual attorneys fees, costs of investigation, and
disbursements) resulting from and/or arising in connection with, any act or
omission of the Indemnifying Customer, its subsidiaries, or any person
associated with the Indemnifying Customer or its subsidiaries (including,
without limitation, such Indemnifying Customers directors, officers, employees
and agents, all direct and indirect parents, subsidiaries, and affiliates of the
Indemnifying Customer, the Indemnifying Customers customers in connection
with issuing and/or acquiring Activity and/or other business, and the
Indemnifying Customers suppliers, including, without limitation, any Service
Providers, and other persons acting for, or in connection with the
Indemnifying Customer or a Merchant for which the Indemnifying Customer
acquires Transactions, and/or any such Merchants employees, representatives,
agents suppliers, customers, including any Data Storage Entity (DSE) with
respect to, or relating to:
1. Any programs and/or Activities of the Indemnifying Customer;
2. Any programs and/or activities of any person associated with the
Indemnifying Customer and/or its subsidiaries;
3. The compliance or non-compliance with the Standards by the
Indemnifying Customer;
4. The compliance or non-compliance with the Standards by any person
associated with the Indemnifying Customer and its subsidiaries;
5. Any other activity of the Indemnifying Customer;
3-8

6. Direct or indirect access to and/or use of the Interchange System (it being
understood that the Corporation does not represent or warrant that the
Interchange System or any part thereof is or will be defect-free or errorfree and that each Customer chooses to access and use the Interchange
System at the Customers sole risk and at no risk to the Corporation);
7. Any other activity of any person associated with the Indemnifying
Customer, its subsidiaries, or both that used and/or otherwise involved any
of the Marks or other assets;
8. Any failure of another Customer to perform as required by the Standards or
applicable law; or
9. The Corporations interpretation, enforcement, or failure to enforce any
Standard(s).
The Corporation does not represent or warrant that the Interchange System or
any other system, process or activity administered, operated, controlled or
provided by or on behalf of the Corporation (collectively, for purposes of this
Rule, the Systems) is free of defect and/or mistake and, unless otherwise
specifically stated in the Standards or in a writing executed by and between
the Corporation and a Customer, the Systems are provided on an as-is basis
and without any express or implied warranty of any type, including, but not
limited to, the implied warranties of merchantability and fitness for a particular
purpose or non-infringement of third party intellectual property rights. IN NO
EVENT WILL THE CORPORATION BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL
OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, OR ANY
OTHER COST OR EXPENSE INCURRED BY A CUSTOMER OR ANY THIRD PARTY
ARISING FROM OR RELATED TO USE OR RECEIPT OF THE SYSTEMS, WHETHER IN AN
ACTION IN CONTRACT OR IN TORT, AND EVEN IF THE CUSTOMER OR ANY THIRD
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH
CUSTOMER ASSUMES THE ENTIRE RISK OF USE OR RECEIPT OF THE SYSTEMS.
Only in the event the limitation of liability set forth in the immediately
preceding paragraph is deemed by a court of competent jurisdiction to be
contrary to applicable law, the total liability, in the aggregate, of the
Corporation to a Customer and anyone claiming by or through the Customer,
for any and all claims, losses, costs or damages, including attorneys fees and
costs and expert-witness fees and costs of any nature whatsoever or claims
expenses resulting from or in any way related to the Systems shall not exceed
the total compensation received by the Corporation from the Customer for the
particular use or receipt of the Systems during the twelve (12) months ending
on the date that the Corporation was advised by the Customer of the Systems
concern or the total amount of USD 250,000.00, whichever is less. It is
intended that this limitation apply to any and all liability or cause of action
however alleged or arising; to the fullest extent permitted by law; unless
otherwise prohibited by law; and notwithstanding any other provision of the
Standards.

3-9
3.4 Choice of Laws
A payment or credit by the Corporation to or for the benefit of a Customer that

is not required to be made by the Standards will not be construed to be a
waiver or modification of any Standard by the Corporation. A failure or delay
by the Corporation to enforce any Standard or exercise any right of the
Corporation set forth in the Standards will not be construed to be a waiver or
modification of the Standard or of any of the Corporations rights therein.
3.4 Choice of Laws

The substantive laws of the State of New York govern all disputes involving
the Corporation, the Standards, and/or the Customers and Activity without
regard to conflicts. Any action initiated by a Customer regarding and/or
involving the Corporation, the Standards and/or any Customer and Activity
must be brought, if at all, only in the United States District Court for the
Southern District of New York or the New York Supreme Court for the County
of Westchester, and any Customer involved in an action hereby submits to the
jurisdiction of such courts and waives any claim of lack of personal
jurisdiction, improper venue, and forum non conveniens.
This provision in no way limits or otherwise impacts the Corporations
authority described in Rule 3.1. Each Customer agrees that the Standards are
construed under, and governed by, the substantive laws of the State of New
York without regard to conflicts.
Note
3.5 Examination and Audit

The Corporation, at any time, and whether or not a Customer is subject to
periodic examination by banking regulatory authorities of the United States or
any state thereof, or to periodic examination by regulatory authorities of
another government, and at the Customers sole expense, may require that
Customer to be subjected to an examination and/or audit and/or periodic
examination and/or periodic audit by a firm of independent certified
accountants or by any other person or entity satisfactory to the Corporation.
The complete results of each such examination and/or audit will be provided
to the Corporation promptly upon completion.
3-10

3.5 Examination and Audit
Any accountants examination or audit undertaken in accordance with this Rule

must be at least as detailed and equivalent in scope and nature as an
examination or audit required of banks under the laws of the United States and
will address such matters relating to or arising from Activity as the Corporation
may require for the time period to be examined or audited. Such matters may
include, by way of example and not limitation:
1. The number of active and inactive Cards outstanding, the number of Cards
issued, the volume of Transactions, and the delinquency experience on
repayment.
2. The nature of any credit or other investigation conducted before issuance
of a Card, the guidelines and criteria employed to evaluate credit risk, and
the nature of credit decisions made.
3. The nature of collection procedures used, including the timing of collection
notices, the wording and frequency of such notices, and the procedures for
turning Card accounts over to collection services.
4. An evaluation of charge-off procedures used, including the procedures
employed during any period in which a Card account is carried without
payment, the disposition of a Card account after charge-off, collection
efforts by legal action, and the practices followed in the aging of Card
accounts.
5. An analysis of the geographic area covered by any Activity and the
adequacy of the credit investigation and enforcement facilities in light of
such geographic coverage.
6. An analysis of procedures used in evaluating prospective Merchants,
including investigation standards, review of financial statements, Dun &
Bradstreet reports, and/or similar or additional reports, and review of
personal credit reports on principals in the case of small Merchants.
7. An analysis of procedures used in evaluating a prospective Service
Provider, including investigation procedures and criteria, review of
financial statements, Dun & Bradstreet reports, and/or similar or additional
reports, and of review personal credit reports concerning principals of the
Service Provider.
8. An analysis of procedures used in connection and to ensure ongoing
compliance with the Corporations AML Program.
9. An analysis of practices in the manufacture, personalization and issuance
of Cards, including proper security measures for blank card stock, controls
imposed in the issuance of Cards, mailing procedures, information security
measures, and practices used to avoid duplicate issuance.
10. An analysis of policies and practices concerning the taking of reserves as
protection against losses due to any Activity and an analysis of whether
such policies and practices are at least as strict as that required of U.S.
banks on classified loans.
3-11
3.6 Provision and Use of Information
The Corporation has no liability or responsibility for any failure to cause an

examination or audit or both to be conducted or for the nature or quality of
any examination or audit or for any action taken or not taken following any
such examination or audit.
The Corporation reserves the right to audit a Customers Activity and
compliance with the Standards. The Customer must cooperate with and
promptly supply the Corporation with all information that the Corporation
deems necessary or appropriate in connection with any such audit. The
Corporation may assess a Customer the costs of any such audit.

3.6.1 Obligation of Customer to Provide Information
Upon request by the Corporation, and subject to applicable law or regulation,
a Customer must provide Customer Reports to the Corporation, or to the
Corporations designee; provided, compliance with the foregoing obligation
does not require a Customer to furnish any information, the disclosure of
which, in the opinion of this Corporations legal counsel, is likely to create a
significant potential legal risk to this Corporation and/or its Customer(s). To
the extent that a Customer is obligated to provide a Customer Report to the
Corporation that the Customer deems to disclose proprietary information of the
Customer, such information will be treated by the Corporation with the degree
of care deemed appropriate by the Corporation to maintain its confidentiality.
As an example of a Customer Report, each Acquirer must provide Transaction
Data to the Corporation in such form and manner as the Corporation may
require. As used herein, Transaction Data means any data or data element or
subelement that the Standards require to be used to clear and/or settle a
Transaction (whether cleared and/or settled via the Interchange System or
otherwise) or that the Corporation requires to be provided.
3.6.1.1 Information to Cardholders
3-12
Note
A Rule on this topic appears in Chapter 10, Asia/Pacific Region Rules; Chapter
12, Europe Region Rules; Chapter 14, South Asia/Middle East/Africa Region
Rules; and Chapter 15, United States Region Rules.

3.6.1.2 Information to Merchants
Note
Rules on this topic appears in Chapter 11a, Canada Region Code of Conduct
Related Rules and Chapter 12, Europe Region Rules.
3.6.1.3 Transaction Currency Information

Each Acquirer must inform the Corporation whether or not it submits
Transactions in a currency which is not the official currency of the country
where the Transactions took place, including Transactions on which POI
currency conversion has been performed. This information must be provided
annually and will include Merchant and service provider and any other
information required to be reported. When there is a change in the
currency(ies) in which Transactions are submitted, in relation to the Acquirer
itself or a Merchant, or in the use of a service provider, the Acquirer is
required to update its reported information no later than 30 days after the
change.
3.6.2 Confidential Information of Customers

The Corporation and its parents, subsidiaries and affiliates (herein collectively
referred to as the Corporations Affiliates) will not use or disclose confidential
information or Confidential Transaction Data furnished to it by Customers or
Merchants except to the extent that the use or disclosure is in compliance with
applicable law and as specifically provided herein. Confidential Transaction
Data means any information provided to the Corporation or any of the
Corporations Affiliates by a Customer or Merchant if that information enables
the Corporation or any of the Corporations Affiliates to determine an
individuals identity or includes a Card account number. The Corporation or
the Corporations affiliates may use and/or disclose confidential information
and Confidential Transaction Data only as follows:
1. For the benefit of the Customer supplying the information to support the
Customers Program and/or Activities;
2. As may be appropriate, to the Corporations and the Corporations
Affiliates staff, accountants, auditors, or counsel;
3. As may be required or requested by any judicial process or governmental
agency having or claiming jurisdiction over the Corporation or the
Corporations Affiliates;
4. As required for processing Transactions, including authorization, clearing,
and settlement;
5. For accounting, auditing, billing, reconciliation, and collection activities; or
3-13
6. For the purpose of processing and/or resolving chargebacks or other

disputes;
7. For the purpose of protecting against or preventing actual or potential
fraud, unauthorized transactions, claims, or other liability, including to third
parties providing these services;
8. For the purpose of managing risk exposures, franchise quality, and
compliance with the Standards;
9. For the purpose of providing other products or services to Customers or
other third parties, except that any Confidential Transaction Data provided
in such products or services will only be provided to a Customer and will
consist solely of Confidential Transaction Data provided to the Corporation
or to any of the Corporations Affiliates by that Customer;
10. For the purpose of administering sweepstakes, contests, or other marketing
promotions;
11. For preparing internal reports for use by the Corporation or the
Corporations Affiliates, staff, management, and consultants in operating,
evaluating, and managing Corporation business;
12. For preparing and furnishing compilations, analyses, and other reports of
aggregated information, and anonymizing confidential information and/or
Confidential Transaction Data, provided that such compilations, analyses,
or other reports do not identify any (i) Customer other than the Customer
for which the Corporation prepares the compilation, analysis, or other
report or (ii) Cardholder whose Transactions were involved in the
preparation of the compilation, analysis, or other report;
13. For the purpose of complying with applicable legal requirements;
14. For other purposes for which consent has been provided by the individual
to whom the confidential information and/or Confidential Transaction Data
relates.
Each Customer must ensure that it complies with the Standards and applicable
laws and regulations in connection with disclosing any Confidential
Transaction Data or confidential information to the Corporation or the
Corporations Affiliates to allow the uses and disclosures described herein,
including any laws requiring the Customer to provide notices to individuals
about information practices or to obtain consent from individuals to such
practices.
3-14

3.6.3 Use of Corporation Information by a Customer

The Corporation is not responsible and disclaims any responsibility for the
accuracy, completeness, or timeliness of any information disclosed by the
Corporation to a Customer; and the Corporation makes no warranty, express
or implied, including, but not limited to, any warranty of merchantability or
fitness for any particular purpose with respect to any information disclosed by
or on behalf of the Corporation to any Customer disclosed directly or indirectly
to any participant in a Customers Activity. Each Customer assumes all risk of
use of any information disclosed directly or indirectly to a Customer or to any
participant in a Customers Activity by or on behalf of the Corporation.

Corporations Affiliates
A Customer must not disclose confidential information of the Corporation or of
the Corporations parents, subsidiaries, and Affiliates (herein collectively
referred to as the Corporations Affiliates) except:
1. On a need-to-know basis to the Customers staff, accountants, auditors, or
legal counsel subject to standard confidentiality restrictions, or
2. As may be required by any court process or governmental agency having
or claiming jurisdiction over the Customer, in which event the Customer
must promptly provide written notice of such requirement to the Secretary
of the Corporation and to the extent possible, the Customer must seek
confidential treatment by the court or agency.
The obligation set forth herein continues following the termination of
Membership. Information provided to Customers by the Corporation or the
Corporations Affiliates is deemed confidential unless otherwise stated in
writing.
A Customer may use confidential or proprietary information and/or trade
secrets of the Corporation and the Corporations Affiliates solely for the
purpose of carrying out the Customers Activities.
3.6.5 Data ProtectionEurope Region Only
Note

3-15
3.7 Quarterly Member Report
3.7 Quarterly Member Report

Each Customer must complete and timely deliver to the Corporation the
Quarterly Member Report or such other Customer Report as the Corporation
may require be completed and returned by Customers from time to time (such
Customer Report being hereinafter referred to as the QMR) in the manner
and at such time as the Corporation requires.
3.7.1 Report Not Received

If the Corporation does not receive a Customers properly completed QMR
questionnaire when and how due, the Corporation may:
1. Impose on the Customer, after review of the Customers last submitted
QMR questionnaire and assessment paid, an assessment equal to, or
greater than, the Customers assessment for such calendar quarter;
2. Impose on the Customer a noncompliance assessment, as set forth in the
applicable regional MasterCard Consolidated Billing System manual;
3. If the Customers actual payment based on the QMR questionnaire
submitted by the Customer compared with the Corporations estimate of
payment due results in an underpayment by the Customer, collect the
amount of the underpayment due and impose an interest penalty of the
lower of two (2) percent per month or the highest rate permitted by law,
from the date the payment was first due through the date on which the
additional amount due is paid;
4. If the Customers actual payment based on the QMR questionnaire
submitted by the Customer compared with the Corporations estimate of
payment due results in an overpayment by the Customer, return the
amount of the overpayment, without interest or penalty thereon, as soon as
practicable after the overpayment amount is identified and calculated; and
5. Collect the assessment amount, and any penalties and interest due thereon,
from the Customers settlement account.
3.7.2 Erroneous or Incomplete Report

If a Customer submits an erroneous or incomplete QMR, the Corporation may:
1. Impose on the Customer, after review of the Customers previously
correctly submitted QMR and assessments paid thereon an assessment
equal to, or greater than, the Customers last properly paid assessment for
each calendar quarter for which it submitted an erroneous or incomplete
QMR;
2. Impose on the Customer a noncompliance assessment, as set forth in the
applicable regional MasterCard Consolidated Billing System manual;
3-16

3.8 Authorization Service
3. If the Corporations estimate of payment due results in an underpayment

by the Customer, collect the amount of the underpayment due and impose
on the Customer an assessment on the amount of the underpayment of the
lower of two (2) percent per month or the highest rate permitted by law,
from the date(s) the payment(s) was first due and payable through the
date(s) on which the additional amount(s) due is paid;
4. If the Corporations estimate of payment due results in an overpayment by
the Customer, return the amount of the overpayment, without penalty or
interest thereon, as soon as practicable after the overpayment amount is
identified and calculated; and
5. Collect of the assessment amount, and any interest, from the Customers
settlement account.
3.7.3 Overpayment Claim

If a Customer, after submitting a QMR, submits to the Corporation a claim
asserting an overpayment thereon, the Corporation may:
1. Accept the claim for review only if it is received by the Corporation no
later than one calendar quarter after the date of the claimed overpayment;
and
2. Provided the overpayment claim is submitted in a timely manner and
substantiated, return the amount of the overpayment to the Customer,
without interest or penalty thereon, as soon as practicable after the
overpayment amount is identified and calculated.
A Customer may request that the Corporations Secretary review the
Corporations actions and make a finding or recommendation. Such a request
must be received by the Secretary no later than 30 calendar days after the date
of the disputed action and any finding or recommendation by the Secretary
with regard to the matter will be final and not subject to appeal or other
similar action.

Each Principal and Association must provide, at its own expense and with
respect to Cards issued by the Principal and Association and any Affiliate
Sponsored by the Principal and Association, authorization services that comply
with the Standards.

3-17
Each Principal and Association must provide, at its own expense and with
respect to Merchants of the Principal and Association and any Affiliate
Sponsored by the Principal and Association, adequate and reasonable
authorization services that comply with the Standards and each such Merchant
must be instructed as to the proper use of such authorization services so as to
ensure that Cards are accepted or refused and that Transactions are effected or
refused in compliance with the Standards.
Note
Additions to this Rule appear in Chapter 12, Europe Region Rules.
3.8.1 Selective Authorization

Without the express prior written approval of the Corporation, a Customer may
not launch or maintain a Card Program that has the effect of selectively
authorizing Transactions or cash disbursement transactions arising from use of
the Program Cards at only a subset of MasterCard acceptance locations. A
Customer is not prohibited from authorizing or declining individual
Transactions or cash disbursement transactions based on:
1. The amount of funds or credit available in the Cardholder account;
2. Fraud or credit risks presented by individual Cardholder usage patterns;
3. Cash access restrictions to manage a secured or high credit risk account; or
4. Any other restriction on use the Corporation may permit.
Note
Additions to this Rule appear in Chapter 11a, Canada Region Code of Conduct
Related Rules and Chapter 15, "United States Region Rules."
3.8.2 Authorization Routing

An Acquirer must be capable of recognizing all active MasterCard bank
identification numbers (BINs) for purposes of obtaining Transaction
authorization, and obtain such authorization on behalf of each of its Merchants
as the Standards require.
3-18

3.9 Additional Customer Obligations
If the Acquirer uses MasterCard account range files provided by the

Corporation for this purpose, such files must be loaded and functioning on the
Acquirers host system and available to its Merchants for use within six
calendar days from the date that each updated file is distributed. Alternatively,
the Acquirer may submit all authorization requests containing an account
number with a BIN in the 510000 to 559999 range to the Interchange System
for routing to the Issuer.
3.8.3 Stand-In Processing Service

For all Card Programs, Issuers must use the Stand-In Processing Service and
the Stand-In Investigation Service (SIS). Stand-In Parameters must be set at or
above the Corporations default limits. For Debit MasterCard Card Programs,
Issuers may employ a blocking service which declines all Transaction
authorization requests during Stand-in processing.
In the event that fraudulent activity is detected with respect to a BIN or BIN
range, the Corporation, in its sole discretion and judgment, may take such
action as the Corporation deems necessary or appropriate to safeguard the
goodwill and reputation of the Corporations Marks. Such action may include,
by way of example and not limitation, declining some or all Transaction
authorization requests received by the Stand-in Processing Service relating to
the use of Cards issued under such BIN or BIN range.
Note
Variations to this Rule appear in Chapter 12, Europe Region Rules and Chapter
15, United States Region Rules.
3.8.4 Issuer Performance Standards
Note

Each Customer must comply with the following obligations.

3-19
3.9.1 Safeguard Card Account and Transaction Information

Each Customer, for itself and any third party that may be afforded access to
Transaction or Card account information, or both, by or on behalf of the
Customer, must safeguard and use or permit use of such information in
accordance with the Standards.
3.9.2 Satisfaction of Minimum Customer Obligations

Within one year of becoming a Principal and Association and at all times
thereafter, each Principal and Association must itself, taken together with any
Affiliate(s) Sponsored by the Principal and Association as if they were a single
Customer, have satisfied the minimum obligations as may be established from
time to time and as set forth in the Standards or in a Customer agreement or
License.
3.9.3 Satisfaction of Minimum Financial Requirements

Each Customer at all times must satisfy the minimum financial requirements
established by the Corporation from time to time. The Corporation, in its
discretion, may establish different or additional financial requirements for
1. A category of financial institutions, organizations, or corporations or other
entities that are eligible to become a Customer; or
2. An individual Customer or prospective Customer in the manner set forth in
the Standards should the Corporation determine that different or additional
requirements are reasonably appropriate to evidence the financial integrity
of a type of Customer or an individual Customer or prospective Customer.
3.9.4 Integrity of Brand and Network

A Customer may not directly or indirectly engage in or facilitate any action that
is illegal, or that, in the opinion of the Corporation and whether or not
addressed elsewhere in the Standards, damages or may damage the goodwill
or reputation of the Corporation or of any Mark, and the Customer will
promptly cease engaging in or facilitating such action upon request of the
Corporation.
3-20

3.10 Limitation of Liability of Cardholders for Unauthorized Use
In addition, a Customer may not place or cause to be placed on any Card or

on any POS Terminal or acceptance device any image, information,
application, or product that would in any way, directly or indirectly, have or
potentially have the effect of diminishing or devaluing the reputation or utility
of the Marks, a Card, or any of the Corporations products, programs, services,
networks, or systems.
Note
An addition to this Rule appears in Chapter 15, United States Region Rules.
3.10 Limitation of Liability of Cardholders for

Unauthorized Use
Note
11, Canada Region Rules; Chapter 14, South Asia/Middle East/Africa Region
Rules; and Chapter 15, United States Region Rules.
3.11 Pay-Per-Call Service

The use of a 900 or other pay-per-call telephone service to offer or solicit
for any Activity is prohibited.
3.12 Encashment of MasterCard Travelers Cheques

Each Customer must encash MasterCard Travelers Cheques issued in any
currency when presented for payment at any of its locations, provided:
1. Such encashment is permitted by law; and
2. The Customer has the ability (including a foreign exchange capability, with
respect to a currency other than U.S. currency MasterCard Travelers
Cheques presented for encashment) to encash such cheques as a result of
the business it normally conducts at a location.
If the encashing Customer encashes any other brand of travelers cheques at a
location, the Customer may impose terms and conditions for the encashment
of MasterCard Travelers Cheques that it uses to encash other brands of
travelers cheques.
3-21
3.13 Accounts on a Card
Note
A Rule on this topic appears in Chapter 11a, Canada Region Code of Conduct
Related Rules.
Compliance Zones
noncompliance categories are assigned for the purposes of assessments under
the compliance framework, as described in Rule 3.1.2.
Rule Number
Rule Title
Category
3.1.2.3
Certification
3.1.3
Rules Applicable to Intracountry Transactions
3.1.4
Communication of Intracountry Fallback Rules
3.2
Conduct of Activity
3.5
Examination and Audit
3.6.1
Obligation of Customer to Provide Information
3.6.1.1
Information to Cardholders
3.6.1.2
Information to Merchants
3.6.4
Confidential Information of the Corporation and the Corporations

Affiliates
3.6.5
Data ProtectionEurope Region Only
3.7
Quarterly Member Report
3.8
Authorization Service
3.8.1
Selective Authorization
3.8.2
Authorization Routing
3.8.4
Issuer Performance Standards
3.9.1
Safeguard Card Account and Transaction Information
3.9.2
Satisfaction of Minimum Customer Obligations
3.9.3
Satisfaction of Minimum Financial Requirements
3.9.4
Integrity of Brand and Network
3.10
Limitation of Liability of Cardholders for Unauthorized Use
3-22

Compliance Zones
Rule Number
Rule Title
Category
3.11
Pay-Per-Call Service
3.12
Encashment of MasterCard Travelers Cheques
3.13
Accounts on a Card

3-23

This chapter contains information about use of the Marks and competing
marks.
4.1 Right to Use the Marks .................................................................................. 4-1

4.1.1 Licenses ................................................................................................ 4-1
4.1.2 Protection and Registration of the Marks ............................................ 4-1
4.1.2.1 Registration of a Card Face Design ............................................ 4-2
4.1.3 Misuse of a Mark .................................................................................. 4-2
4.2 General Rules for Use of the Marks ............................................................. 4-2
4.2.1 Use of the Marks .................................................................................. 4-2
4.2.2 Compliance........................................................................................... 4-3
4.2.3 Required Use ........................................................................................ 4-3
4.2.4 Review of Solicitations ......................................................................... 4-3
4.2.5 Signage System ..................................................................................... 4-3
4.2.6 Particular Use of a Mark ...................................................................... 4-4
4.2.6.1 Generic Use ................................................................................. 4-4
4.2.6.2 Use of Modifiers .......................................................................... 4-4
4.2.6.3 Use on Stationery ........................................................................ 4-4
4.2.6.4 Use on Non-Licensed Goods ...................................................... 4-4
4.2.6.5 Use on Checks ............................................................................ 4-4
4.2.6.6 Use on Cards ............................................................................... 4-5
4.2.7 Use of the MasterCard Word Mark ...................................................... 4-5
4.2.7.1 Use or Registration of Master Terminology ............................ 4-5
Name ....................................................................................................... 4-5
4.2.7.3 Use of MasterCard in Text .......................................................... 4-6
4.2.7.4 Registration Notice ...................................................................... 4-6
4.2.7.5 Program Names ........................................................................... 4-6
4.2.8 Use of the Interlocking Circles Device................................................ 4-6
4.2.8.1 Reproduction Standards .............................................................. 4-6
4.2.8.2 Variations Prohibited .................................................................. 4-7
4.2.8.3 Use or Registration of Similar Logos, Designs, and Names ...... 4-7
4.2.9 Use of Multiple Brand Marks ............................................................... 4-7
4.2.10 Use of the Card Face Design ............................................................. 4-7
4.2.10.1 In Advertising and Marketing Material ..................................... 4-7
4.2.10.2 In Merchant Advertising............................................................ 4-8
4.2.10.3 In Statement Enclosures ............................................................ 4-8
4-i
4.2.11
4.2.12
4.2.13
4.2.14
Use
Use
Use
Use
of the MasterCard Brand Mark on Other Cards ......................... 4-8

of a Competing Mark on Cards .................................................. 4-8
of Other Acceptance Marks on Cards ........................................ 4-9
on Mobile Payment Devices ..................................................... 4-10
4-ii


4.1 Right to Use the Marks

4.1.1 Licenses
A right to use one or more Marks or to use the Interchange System to process
unbranded transactions is granted to Customers and other licensees only
pursuant to the terms of a License or other agreement with the Corporation.
Unless an interim License has been granted, a Mark must not be used in any
form or manner before the execution of a written License and, if applicable, a
License addendum.
No additional interest in the Marks is granted with the grant of a right to use
the Marks. A Licensee is responsible for all costs and liabilities resulting from
or related to its use of a Mark or the Interchange System.
Except as otherwise set forth in Rule 1.5.4, each License is non-exclusive and
non-transferable. The right to use a Mark may be sublicensed by a Licensee to
any Sub-licensee only in accordance with the Standards or otherwise with the
express written consent of the Corporation. A Customer or other Licensee that
is permitted to sublicense the use of a Mark to a Sub-licensee must ensure, for
so long as the sublicense is in effect, that the Mark is used by the Sub-licensee
in accordance with the Standards and/or other additional conditions for such
use required by the Corporation.
The right to use a Mark cannot be sublicensed or assigned, whether by sale,
consolidation, merger, amalgamation, operation of law, or otherwise, without
the express written consent of the Corporation.
The Corporation makes no express or implied representations or warranties in
connection with any Mark and the Corporation specifically disclaims all such
representations and warranties.
4.1.2 Protection and Registration of the Marks

Protection of the Marks is vital to the Corporation, its Customers and other
Licensees. Any use of a Mark must not degrade, devalue, denigrate, or cause
injury or damage to the Marks or the Corporation in any way.
By using any Mark, each Customer and other Licensee acknowledges the
Corporations sole ownership of the Marks and agrees not to challenge or
contest the Corporations exclusive ownership of the Marks, assist others in
doing so either directly or indirectly or otherwise take or assist others in taking
any acts or failing to take actions that would be inconsistent with that
ownership. All use of any Mark will inure solely to the benefit of the
Corporation.

4-1

4.2 General Rules for Use of the Marks
No Customer or other Licensee or Sub-licensee may register, attempt to register

or in any way make use of the Marks, or any mark or term that, in the sole
discretion of the Corporation, is deemed to be derivative of, similar to, or in
any way related to a Mark. In particular, no use of a Mark may be made on or
in connection with any card, device or other application associated with a
payment service that the Corporation deems to be competitive with any
Activity.
Without limitation, the foregoing shall specifically apply to registration or use
of any mark or term that incorporates, references or otherwise could be
confused or associated with a Mark currently or previously Licensed,
Sublicensed or otherwise used by a Customer, the Customers Sub-licensees
and permittees and their respective successors or assignees (including, without
limitation, by virtue of acquisition by merger or otherwise, bankruptcy or
voluntary or involuntary winding-up.)
Note
An addition to this Rule appears in Chapter 10, Asia/Pacific Region Rules;

Chapter 13, Latin America and the Caribbean Region Rules; Chapter 15,
United States Region Rules.
4.1.2.1 Registration of a Card Face Design

A Customer or other Licensee must not register or attempt to register any Card
face design that includes the MasterCard Brand Mark.
4.1.3 Misuse of a Mark

Each Customer and other Licensee must promptly notify the Corporation
whenever it learns of any misuse of any Mark or of any attempt to copy or
infringe any of the Marks.

4.2.1 Use of the Marks
A Mark may be used only pursuant to a License. This provision applies,
without limitation, to:
1. Use of a Mark for advertising or promotional purposes;
2. Placing orders for card stock or for any other materials bearing a Mark;
3. Displaying a Mark;
4-2


4. Issuing Cards;
5. Signing Merchants; and
6. Distributing or affixing decals.
A Mark may only be used by Customers and Licensees to identify and promote
Activities, in compliance with the Standards.
4.2.2 Compliance
Any use of a Mark must comply with the License, the Standards, and all of the
Corporations reproduction, usage, and artwork standards as may be in effect
from time to time.
4.2.3 Required Use

Each Customer must prominently display the applicable Mark in all advertising,
marketing, promotional, and collateral materials promoting a program or
service offered by the Corporation. The inclusion of the MasterCard Word
Mark in the headline or title, or the prominent display of the MasterCard Word
Mark on the first page of the offering, satisfies this requirement.
4.2.4 Review of Solicitations

The Corporation reserves the right to review samples and approve or refuse to
approve use of a Solicitation. Amended samples, if required as a result of this
review, also must be forwarded to the Corporation for review. Without the
express prior written consent of the Corporation, an Issuer may not use a
Solicitation or any other application, advertisement, promotion, marketing
communication, offer, or the like in which a Card Program is in any way
linked to a different payment card program.
4.2.5 Signage System

The Corporations interlocking circles signage system is employed when one
or more brands using the MasterCard interlocking circles device is accepted at
a point of interaction. The system requires the consecutive vertical or
horizontal display of the brand Marks in the following sequenceMasterCard,
MasterCard Electronic, Maestro, Cirrus. Of the four brands, only those brands
that are accepted at a particular point of interaction may be displayed there.
The MasterCard, Maestro, and Cirrus brands must be displayed on an ATM.
The MasterCard Electronic brand mark must not be displayed on an ATM.

4-3

4.2.6 Particular Use of a Mark

4.2.6.1 Generic Use
A generic term, such as bank card or payment card, does not function as a
Mark. Use of a Mark in a manner that would tend to genericize that Mark or
otherwise result in the loss of trademark rights is prohibited.
4.2.6.2 Use of Modifiers

A Customer is permitted to use its name or a geographical designation in
conjunction with the MasterCard Word Mark, such as California MasterCard
card program or First Issuer MasterCard Department. The Corporation may
prohibit the use of a modifier that it determines will impair the distinctiveness
of any Mark or create any likelihood of confusion or reflect poorly on the
Corporation.
4.2.6.3 Use on Stationery

Subject to the Standards, a Licensee is permitted to use a Mark on print or
electronic stationery, letterhead, envelopes, and the like for the purpose of
identifying its Program or service. If the MasterCard Word Mark is used, the
Licensees name must appear in close proximity to it, such as Superior
National Bank MasterCard Department.
4.2.6.4 Use on Non-Licensed Goods

A Mark may not be used in a manner likely to create the impression that any
good or service offered by the Licensee or Sub-licensee is sponsored,
produced, offered, approved, sold by, or otherwise affiliated with the
Corporation. Each Licensee must ensure that each of its Sub-licensees,
partners, Merchants, and other Program participants does not apply a Mark to
any good or service not expressly covered under the terms of a License.
4.2.6.5 Use on Checks

A Mark may not be placed on a check, except as permitted by a Master
Checking License.
4-4


4.2.6.6 Use on Cards

Standards governing the use of Marks on Cards, including but not limited to
multiple application EMV chip Cards and other Cards displaying co-residing
Marks, are set forth in the Card Design Standards System, available on
MasterCard Online, which are incorporated into these Rules by reference.
Note
An addition to this Rule appears in Chapter 11a, Canada Region Code of

Conduct Related Rules, Chapter 12a, Europe Region Debit-related Rules,
Chapter 12b, SEPA Rules, Chapter 10a, New Zealand Rules, Chapter 14a,
South Africa Rules, Chapter 15a, United States Region Debit-related Rules,
and Chapter 15b, United States Region PIN-based Debit Transaction Rules.
4.2.7 Use of the MasterCard Word Mark

The MasterCard Word Mark MasterCard must appear in English and must be
spelled correctly and as one word. The letters M and C must be
capitalized. MasterCard must not be abbreviated, hyphenated, used in the
plural or possessive, or translated from English into another language.
4.2.7.1 Use or Registration of Master Terminology

Except as expressly permitted in writing by the Corporation, the word Master
may not be used or registered as part of a trademark, service mark, corporate
name, business name, or Program name, whether preceding, following or
linked together as one word, or with a hyphen or slash, or in connection with
any financial or bank-related goods or services.

Name
The MasterCard Word Mark may not be used as part of a legal, corporate, or
business name, such as MasterCard Center, Inc. No Internet domain name
may be registered that includes the word MasterCard, except as expressly
permitted in writing by the Corporation.

4-5

4.2.7.3 Use of MasterCard in Text

The MasterCard Word Mark must be used as an adjective (as in your
MasterCard card) in the first or most prominent use subsequent to any use in
the title, headline, signature, or cover page of an offering, unless:
1. the word MasterCard is used as part of a Customers Program name (as in
Customer/Program name MasterCard); or
2. otherwise expressly approved in writing by the Corporation.
Use of the word MasterCard as a verb (MasterCard your gifts), in plural
(MasterCards) or in possessive form is prohibited.
4.2.7.4 Registration Notice

The MasterCard Word Mark must be accompanied by the registration notice
or the local law equivalent. (Refer to the reproduction, usage, and artwork
Standards for the correct use and placement of the registration mark.)
4.2.7.5 Program Names

Each MasterCard Program name, offering, and service must be referred to by
the full, legal name and include the appropriate registration notice.
4.2.8 Use of the Interlocking Circles Device

4.2.8.1 Reproduction Standards
The MasterCard interlocking circles device must be reproduced in accordance
with all of the following requirements:
1. All color, version, and other specifications set forth in the MasterCard
Brand Center Web site at www.mastercardbrandcenter.com and in the Card
Design Standards;
2. With a MasterCard brand name (such as MasterCard, MasterCard
Electronic, Maestro, or Cirrus) in custom lettering placed within the
circles, except as expressly permitted by the Corporation. Only a
permitted MasterCard brand name may be superimposed on any part of
the interlocking circles device; and
3. Accompanied by the registration notice or the local law equivalent in
close proximity to the Mark. If the maximum horizontal dimension of the
interlocking circles device is one inch or less, the registration notice may
be omitted.
4-6


4.2.8.2 Variations Prohibited

All modifications, alterations, and variations of the MasterCard interlocking
circles device are prohibited without the express written consent of the
Corporation.
4.2.8.3 Use or Registration of Similar Logos, Designs, and Names

A Customer, Licensee, or Sub-licensee may not use or seek to register any
logo, design, or decorative element that includes two or more interlocking,
adjoining, or adjacent circles, spheres, globes, or similar shapes that, in the
sole discretion of the Corporation, may be likely to cause confusion with, or
create a false association, connection or affiliation with, or dilute the
distinctiveness of the MasterCard interlocking circles device.
4.2.9 Use of Multiple Brand Marks

When two or more Marks that use the MasterCard interlocking circles device
are displayed together, they must have visual parity with one another.
When promoting any Mark with another acceptance mark in any media to
denote acceptance, no other acceptance mark, symbol or logo may be or
appear to be larger or more important than or more welcomed than the Mark.
To maintain visual parity, a Mark must be at least as prominent as, and appear
in at least the same frequency, size, and color treatment as, any other
acceptance mark displayed. To maintain parity within written text, the
MasterCard Word Mark must be at least as prominent as, and appear at least as
frequently as, any other acceptance mark mentioned.
4.2.10 Use of the Card Face Design

4.2.10.1 In Advertising and Marketing Material
An Issuer is permitted to depict a Card face for an advertising or marketing
purpose, subject to the following requirements:
1. The proportions of the Card face design, including typestyle and relative
positions of the legends, may not be altered or distorted.
2. The legend VALID THRU or the equivalent must be depicted on the Card
face design, unless the Card face design contains an effective date and an
expiration date, in which case the words VALID DATES must be depicted
in accordance with the requirements set forth in section 2.5.1.5 of the
Security Rules and Procedures manual and in the Card Design Standards
System.

4-7

3. The Card face design must bear account information (for example, the
account number, the effective date and/or expiration date) and all Card
face design requirements set forth in the Security Rules and Procedures
manual and in the Card Design Standards System.
The first six digits of the account number must be either a Bank
Identification Number (BIN) assigned to the Issuer by the Corporation or
the unassigned BIN 541275, which the Corporation has set aside for Issuer
use in advertising and marketing Card face designs.
4. The MasterCard Identification Area (or the MasterCard Brand Mark, if the
Card face design depicts a Card with the hologram on the Card back) must
be completely visible on at least one Card face design depicted in the
materials.
4.2.10.2 In Merchant Advertising

A Merchant is prohibited from using the Card face design to indicate
acceptance in Merchant advertising or other signage, other than signage for a
Co-brand Program in which the Merchant is a Co-brand Partner. A Merchant
may display an Issuer-specific Card face design in Merchant advertising and
any other signage that is not used to signify acceptance.
4.2.10.3 In Statement Enclosures

The Card face design must be displayed on statement enclosures used to offer
goods or services to cardholders through the use of a Customers Card. The
MasterCard Brand Mark may be used in lieu of the Card face design if the
Customers name is displayed on the statement enclosure.
4.2.11 Use of the MasterCard Brand Mark on Other Cards

The MasterCard Brand Mark may not be used on a promotional card or other
card without the prior written consent of the Corporation.
4.2.12 Use of a Competing Mark on Cards

Unless expressly permitted by the Corporation, none of the following marks or
any similar or related mark, or any mark owned by or affiliated with one of
these entities, may appear on a Card:
1. American Express
2. JCB
3. Diners Club
4. Discover
4-8


5. Visa
6. Any other name, logo, or mark identifying or in any way associated with a
payment service that the Corporation deems to be competitive with any
MasterCard product or Program.
Any such competitors credit or debit POI mark, logo, or name, regardless of
whether registered, may not appear on a Card, nor may a payment application
of any such competitor reside on the magnetic stripe or chip of a Card. The
appearance of the PLUS brand mark or the PLUS word mark on the back of a
Card is permitted where there is an effective PLUS agreement with the Issuer
executed before July 1996.
No Customer or other Licensee or Sub-licensee or any of its affiliates may
register, attempt to register, or in any way make use of any Marks or any mark
or term that the Corporation in its sole discretion deems to be derivative of,
similar to, dilutive of, or in any way related to a Mark on any Card, device, or
other application associated with a payment service that the Corporation
deems to be competitive with any Activity of the Corporation. Without
limitation, the foregoing shall specifically apply to registration or use of any
mark or term that incorporates, references, or otherwise could be confused or
associated with any Mark currently or previously Licensed, sublicensed (to the
extent sublicensing has been previously permitted), or used by a Customer, its
Sub-licensees and permittees, and their respective successors or assignees
(including, without limitation, by virtue of acquisition by merger or otherwise,
bankruptcy or voluntary or involuntary winding-up.)
Note
An addition to this Rule appears in Chapter 10, Asia/Pacific Region Rules;

Chapter 13, Latin America and the Caribbean Region Rules; and Chapter 15,
4.2.13 Use of Other Acceptance Marks on Cards

No acceptance mark may appear on a Card except as set forth in the
Standards, including the Card Design Standards System.
Note
An addition to this Rule appears in Chapter 10, Asia/Pacific Region Rules, as it

pertains to Australia; Chapter 11a; Canada Region Code of Conduct Related
Rules; Chapter 12b, SEPA Rules; Chapter 13, Latin America and the
Caribbean Region Rules; Chapter 15, United States Region Rules; and Chapter
15b, United States Region PIN-based Debit Transaction Rules.

4-9

Compliance Zones
4.2.14 Use on Mobile Payment Devices

Standards governing the use of Marks on Mobile Payment Devices are set forth
in the MasterCard PayPass Branding Standards, which are incorporated into
these Rules by reference. Information regarding the MasterCard PayPass
Branding Standards is available by e-mail from [email protected].
Compliance Zones
Section Number
Section Title
Category
4.1.1
Licenses
4.1.2
Protection and Registration of the Marks
4.1.3
Misuse of a Mark
4.2
General Rules for Use of the Marks
4-10

Merchants
This chapter contains information about Acquirer and Merchant obligations
and Card acceptance requirements.
5.1 The Merchant Agreement.............................................................................. 5-1

5.1.1 Verify Bona Fide Business Operation ................................................. 5-1
5.1.2 Required Terms .................................................................................... 5-1
5.1.2.1 Payment Facilitators .................................................................... 5-2
5.1.2.2 Gambling Merchants ................................................................... 5-2
5.1.3 Assessments for Merchant Agreement Noncompliance...................... 5-3
5.2 Acquirer Obligations ..................................................................................... 5-3
5.2.1 Acquiring Transactions......................................................................... 5-3
5.2.2 Merchant and Sub-merchant Compliance with the Standards ........... 5-3
5.2.3 Merchant Information .......................................................................... 5-3
5.2.4 Payments to Merchants ........................................................................ 5-4
5.2.5 Supplying Materials .............................................................................. 5-4
5.3 Merchant Monitoring ..................................................................................... 5-4
5.4 Use of a Payment Facilitator ......................................................................... 5-4
5.4.1 Responsibility for Payment Facilitator and Sub-merchant Activity .... 5-5
5.4.2 High-Risk Payment Facilitators ............................................................ 5-6
5.4.3 Registration Requirements for Payment Facilitators ........................... 5-7
5.5 Payment Facilitator Obligations .................................................................... 5-8
5.5.1 Sub-merchant Screening Procedures ................................................... 5-8
5.5.2 MATCH Inquiry Required .................................................................... 5-9
5.5.3 Sub-merchant Agreement .................................................................... 5-9
5.5.3.1 Required Provisions .................................................................. 5-10
5.5.4 Obligations as Sponsor of Sub-merchants ........................................ 5-11
5.5.4.1 Submit Valid Transactions ........................................................ 5-11
5.5.4.2 Sub-merchant Compliance with the Standards ........................ 5-11
5.5.4.3 Maintaining Sub-merchant Information ................................... 5-11
5.5.4.4 Payments to Sub-merchants ..................................................... 5-12
5.5.4.5 Supplying Materials to Sub-merchants ..................................... 5-12
5.5.4.6 Sub-merchant Monitoring ......................................................... 5-12
5.6 Merchant Identification and Responsibility for Transactions .................... 5-12
5.7 Use of the Marks ......................................................................................... 5-13
5-i
Merchants
5.7.1
5.7.2
5.7.3
5.7.4
Merchants Must Display the MasterCard Acceptance Mark ............. 5-14

Merchant Advertising and POI Materials........................................... 5-14
Local/Regional Acceptance Brands ................................................... 5-14
Direct Mail Cardholder Solicitation Merchants.................................. 5-15
5.8 Card Acceptance Requirements .................................................................. 5-16

5.8.1 Honor All Cards.................................................................................. 5-16
5.8.2 Merchant Acceptance ......................................................................... 5-16
5.8.3 Obtain an Authorization .................................................................... 5-17
5.8.4 Additional Cardholder Identification ................................................. 5-17
5.8.5 E-Commerce Transactions ................................................................. 5-17
5.8.6 Purchase With Cash Back Transactions ............................................ 5-17
5.9 Submitting Transactions .............................................................................. 5-17
5.9.1 Valid Transactions .............................................................................. 5-18
5.9.2 Submit Transactions within Three Business Days ............................ 5-18
5.10 Noncompliance Assessments .................................................................... 5-18
5.11.1 Discrimination .................................................................................. 5-19
5.11.4 Scrip-dispensing Terminals .............................................................. 5-20
5.11.5 Prohibited Transactions.................................................................... 5-20
5.11.6 Other Forms of Payment.................................................................. 5-20
5.11.7 Illegal or Brand-damaging Transactions.......................................... 5-20
5.11.8 Disparagement.................................................................................. 5-21
5.12 Security Rules ............................................................................................ 5-21
5.12.1 Sale or Exchange of Information ..................................................... 5-21
5-ii

Merchants
5.1 The Merchant Agreement

Each Customer in its capacity as an Acquirer must directly enter into a written
Merchant Agreement with each Merchant from which it acquires Transactions,
whether such Transactions are submitted to the Customer directly by the
Merchant or through a Service Provider acting for or on behalf of such
Member.
An Acquirer shall not submit into interchange any Transaction resulting from
the acceptance of a Card by an entity or person except pursuant to a Merchant
Agreement then in effect between the Acquirer and the entity or person.
The Merchant Agreement must reflect the Acquirers primary responsibility for
the Merchant relationship and must otherwise comply with the Standards.
5.1.1 Verify Bona Fide Business Operation

Before entering into, extending, or renewing a Merchant Agreement, an
Acquirer must verify that the Merchant from which it intends to acquire
Transactions is a bona fide business, has sufficient safeguards in place to
protect from unauthorized disclosure or use such Cardholder and Transaction
information as the Standards permit to be captured, and complies with
applicable laws, and that each Transaction will reflect bona fide business
between the Merchant or Sub-merchant and a Cardholder. Procedures for
verifying that a Merchant is a bona fide business are set forth in section 7.1 of
the Security Rules and Procedures manual.
5.1.2 Required Terms

Each Merchant Agreement must contain the substance of each of the Standards
set forth in Rules 5.6 through 5.12. The failure to include the substance of any
one or more of such Standards in the Merchant Agreement or the grant of a
variance by the Corporation with respect to any one or more such Standards
does not relieve an Acquirer from responsibility for chargebacks or
compliance.
Each Merchant Agreement may contain only such terms agreed to by the
Acquirer and the Merchant, provided that no such term conflicts with any
Standard.
Note
Additions to this Rule appear in Chapter 10a, New Zealand Rules; Chapter 12,
Europe Region Rules; Chapter 14a, South Africa Rules; and Chapter 15a,
United States Region Debit-related Rules.

5-1
Merchants
5.1.2.1 Payment Facilitators

Each Merchant Agreement with a Merchant registered as a Payment Facilitator
must additionally contain the substance of Rule 5.5 and a provision stating that
the Payment Facilitator accepts financial liability for all Transactions entered
into interchange on behalf of its Sub-merchants and will be responsible for the
handling of all disputed Transactions, credits, and customer service-related
expenses. The Merchant Agreement must provide for:
1. The Acquirers right to terminate the Payment Facilitator, and
2. The Payment Facilitators obligation to ensure the ongoing compliance of
each of its Sub-merchants with the Standards and
3. The Payment Facilitators obligation to terminate the written agreement
with a Sub-merchant for the conduct of activity deemed by the Payment
Facilitator, its Acquirer, or the Corporation to be in violation of the
Standards.
5.1.2.2 Gambling Merchants

Each Merchant Agreement with a gambling Merchant must incorporate the
following terms:
1. An Internet gambling Merchant must post a notice on its Web site(s) (in a
position such that the notice will be displayed before Card account
information is requested, such as a click-through notice) stating that
assertions have been made that Internet gambling may not be lawful in
some jurisdictions, including the United States, and suggesting that the
Cardholder check whether Internet gambling is lawful under applicable
law.
2. Unless the Merchant is a registered Payment Facilitator, an Internet
gambling Merchant must not sell chips or other value that can be used,
directly or indirectly, to gamble at locations other than those that the
Merchant wholly owns.
3. A Merchant must not credit winnings, unspent chips, or other value usable
for gambling to a Card account. Refer to section Rule 8.4.9.1 in Chapter 12
for Standards applicable to use of the Gaming Payment Transaction to
transfer winnings or unspent chips or other value usable for gambling to
Card accounts in some Europe Region countries.
4. All nonface-to-face gambling transactions (MCC 7995) must include the
indent-printed CVC 2 value in DE 48 (Additional DataPrivate Use),
subelement 92 of the Authorization Request/0100 message.
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Merchants
5.2 Acquirer Obligations
5.1.3 Assessments for Merchant Agreement Noncompliance

An Acquirer in violation of Rule 5.1 may be assessed up to USD 2,500 per day
with respect to each entity or person on whose behalf the Acquirer submits
Transactions into interchange with no Merchant Agreement being in effect
between the Acquirer and the entity or person, retroactive to the first day of
such noncompliant practice.

An Acquirer must satisfy all of the obligations set forth in this Rule 5.2.
5.2.1 Acquiring Transactions

Each Acquirer must acquire all Transactions properly presented to it from each
of its Merchants on such terms as set forth in the Merchant Agreement.
5.2.2 Merchant and Sub-merchant Compliance with the

Standards
The Acquirer is responsible for ensuring that each of its Merchants complies
with the Standards, and the Acquirer is itself responsible to the Corporation
and to other Customers for any Merchants or Sub-merchants failure to do so.
The Acquirer must take such actions that may be necessary or appropriate to
ensure a Merchants or Sub-merchants ongoing compliance with the Standards.
Failure by a Merchant, Sub-merchant, or Acquirer to comply with any Standard
may result in chargebacks, an assessment to the Acquirer, and/or other
disciplinary action.
5.2.3 Merchant Information

The Acquirer must maintain, on an ongoing basis, the names and addresses of
every Merchant participating in the Acquirers Program and promptly supply
the Corporation with any such information upon request.

5-3
Merchants
5.3 Merchant Monitoring
5.2.4 Payments to Merchants

Each Acquirer must pay each Merchant for all Transactions the Acquirer
acquires from the Merchant in accordance with the Merchant Agreement and
the Standards. This obligation is not discharged with regard to a Transaction
until the Merchant receives payment from the Acquirer that acquired the
Transaction, notwithstanding any Acquirer payment arrangement, including
any such arrangement between an Affiliate and a Principal or Association. A
Merchant Agreement may provide for an Acquirer to withhold amounts for
chargeback reserves or similar purposes in accordance with the Standards.
Note
An addition to this Rule appears in Chapter 11, Canada Region Rules.
5.2.5 Supplying Materials

Each Acquirer must regularly ensure that each of its Merchants is provided
with all materials necessary to effect Transactions in accordance with the
Standards and to signify MasterCard acceptance. These materials may include
sales slips, credit slips, terminals, authorization services, MasterCard acceptance
decals, signage, and the like.
Note
An addition to this Rule appears in Chapter 15a, United States Region Debitrelated Rules.
5.3 Merchant Monitoring

Each Acquirer must monitor on an ongoing basis the Activity and use of the
Marks of each of its Merchants for the purpose of deterring fraudulent and
other wrongful activity and to ensure ongoing compliance with the Standards.
Minimum Merchant monitoring Standards are set forth in the Security Rules
and Procedures manual.
5.4 Use of a Payment Facilitator

The Acquirer is liable for all acts and omissions by a Payment Facilitator and
any Sub-merchant.
5-4

Merchants
A Payment Facilitator may not be a Sub-merchant of any other Payment

Facilitator, nor may a Payment Facilitator be a Payment Facilitator for another
Payment Facilitator.
Unless otherwise approved by the Corporation, any Sub-merchant that exceeds
USD 100,000 in annual sales may not be or continue to be a Sub-merchant and
must enter into a Merchant Agreement directly with a Customer.
5.4.1 Responsibility for Payment Facilitator and Sub-merchant

Activity
The Acquirer is responsible for the Activity of the Payment Facilitator and each
of its Sub-merchants, and must comply with all of the following obligations
related to such Activity:
1. The Payment Facilitator and each of its Sub-merchants must be located
within the Acquirers licensed Area of Use as described in Rule 2.3. The
Acquirer must obtain an Extension of Area of Use of its license if either is
located elsewhere. The location of the Sub-merchant determines the
location of a Transaction, not the location of the Payment Facilitator.
2. Settlement funds accessed by the Payment Facilitator may only be used to
pay Sub-merchants.
3. An Acquirer may permit a Payment Facilitator to manage the following on
behalf of the Acquirer:
a. Verification that a Sub-merchant is a bona fide business operation, as
set forth in Rule 5.5.1, except that the Acquirer itself must make a
MATCH system inquiry about a prospective Sub-merchant prior to the
Payment Facilitator entering into an agreement with the Sub-merchant;
and
b. Retention of records concerning the investigation of any of its Submerchants, provided that such records are provided to the Acquirer
immediately upon request; and
c. Payment to a Sub-merchant for Transactions by the Sub-merchant, as
set forth in Rule 5.5.4.4; and
d. Ensuring that a Sub-merchant is supplied with materials necessary to
effect Transactions as set forth in Rule 5.5.4.5; and
e. Monitoring a Sub-merchants Activity on an ongoing basis to deter
fraud or other wrongful activity, as set forth in Rule 5.5.4.6.
4. Neither the Payment Facilitator nor the Sub-merchant may require a
Cardholder to waive a right to dispute a transaction.
5. The Acquirer must ensure that all Sub-merchants are identified with the
Card acceptor business code (MCC) that most closely reflects the Sub19692011 MasterCard. Proprietary. All rights reserved.
5-5
Merchants
merchants primary business, as set forth in the Quick Reference Booklet.

The Corporation shall have the ultimate authority to dictate the appropriate
MCC if any dispute shall arise. MCC 7995 must be assigned to any Submerchant that sells gambling chips or other value usable for gambling,
even if such sales is a minimal part of the Sub-merchants business.
(Alternatively, multiple MCCs may be used as appropriate.)
6. The Acquirer must provide to the Corporation a quarterly Activity report
for each Sub-merchant of the Payment Facilitator that includes:
a. Sub-merchant name and location as appears in DE 43 (Card Acceptor
Name/Location) of clearing records
b. Sub-merchant doing business as name or URL
c. Sub-merchant MCC(s)
d. Transaction sales count and amount for each MCC
e. Transaction chargeback count and amount for each MCC
5.4.2 High-Risk Payment Facilitators

A Payment Facilitator that proposes to sponsor as Sub-merchants one or more
entities conducting business that may be described under any one of the
following MCCs or any entity that, as a Merchant, was reported under the
Excessive Chargeback Program is deemed by the Corporation to be a HighRisk Payment Facilitator:
Telecom merchantsMCCs 4813, 4814, 4816, and 5967
Electronic commerce (e-commerce) adult content (videotext) merchants

MCCs 5967, 7273, and 7841
Nonface-to-face gambling merchantsMCC 7995
Nonface-to-face prescription drug merchantsMCC 5122 and MCC 5912
Nonface-to-face tobacco product merchantsMCC 5993
The acquirer must register each such entity in the MasterCard Registration
System (MRP) via MasterCard OnLine before accepting Transactions arising
from such entity, whether directly or through a Payment Facilitator, as
described in chapter 9 of the Security Rules and Procedures manual.
The Corporation, in its sole discretion, may de-register a Payment Facilitator if
it or any of its Sub-merchants is identified as generating excessive chargebacks
or fraudulent activity or of violating any Standard or applicable law.
The Corporation reserves the right to de-register a Payment Facilitator or Submerchant that in the opinion of the Corporation, participates in any activity
that may cause damage to the Corporation.
5-6

Merchants
Each Acquirer that has entered into a Merchant Agreement with a High-Risk
Payment Facilitator must ensure that the Corporation receives a monthly Submerchant Activity report that provides the information set forth in Rule 5.4.1,
part 6.
The Merchant monitoring requirements set forth in section 9.3 of the Security
Rules and Procedures manual apply to High-Risk Payment Facilitators.
5.4.3 Registration Requirements for Payment Facilitators

To propose a Merchant for registration as a Payment Facilitator, the Acquirer
must:
be a Customer in good standing with the Corporation, and
meet any and all capital requirements designated by the Corporation, and
if the entity is deemed to be a potential High-Risk Payment Facilitator, be

in good standing with all of the Corporations risk management programs.
To register a Merchant as a Payment Facilitator, the Acquirer must:

1. Submit all information and material required by the Corporation in
connection with the proposed registration within 60 calendar days of the
registration application submission date; and
2. Ensure that the Payment Facilitator is compliant with the MasterCard Site
Data Protection (SDP) Program in accordance with the implementation
schedule applicable to Merchants set forth in section 10.3.4 of the Security
Rules and Procedures manual. Before initiating registration, the Customer
must instruct the proposed Payment Facilitator to contact the Corporation
via e-mail at [email protected] and validate its compliance with the SDP
Program using the tools described in section 10.3.2 of the Security Rules
and Procedures manual, or if the proposed Payment Facilitator is not
compliant, provide a Corporation-approved compliance action plan. A
Corporation-approved compliance action plan does not exempt the
Acquirer or its Sponsoring Principal or Association if applicable from
responsibility and liability that arises from the noncompliance of the
Payment Facilitator or any of its sponsored Sub-merchants with any
Standard, including those relating to the disclosure and securing of
Cardholder account and Transaction data.
The Acquirer or if an Affiliate, its sponsoring Principal or Association, must use
the MasterCard Registration Program (MRP) system on MasterCard OnLine to
complete the registration procedure.

5-7
Merchants
5.5 Payment Facilitator Obligations
The Acquirer must receive the Corporations written or e-mail confirmation of

the Payment Facilitators registration before the Acquirer may submit
Transactions from the Payment Facilitator or any of its Sub-merchants into
interchange. In its sole discretion, the Corporation may approve or may reject
any application for the registration of a Payment Facilitator.
To maintain the registration of a Payment Facilitator, the Acquirer must submit
such information and material as may be required by the Corporation from
time to time, including but not limited to a copy of the agreement between the
Acquirer and Payment Facilitator. In its sole discretion, the Corporation may
decline to renew the registration of a Payment Facilitator.
The Corporation will collect all registration, renewal and any other applicable
fee(s) then in effect, if any, from the Acquirer or if an Affiliate, its Sponsoring
Principal or Association via the MasterCard Consolidated Billing System
(MCBS).
If the Acquirer ceases to accept Sub-merchant Transactions from or terminates
a Payment Facilitator, the Acquirer must notify the Corporation of the date and
reasons for such action within one week of the decision. In its sole discretion,
the Corporation may require an Acquirer to cease to accept Sub-merchant
Transactions from a Payment Facilitator at any time.

A Payment Facilitator is a Merchant and has all of the rights and
responsibilities of a Merchant under the Standards.
The Acquirer must ensure that its Payment Facilitator satisfies all of the
obligations set forth in this Rule 5.5.
5.5.1 Sub-merchant Screening Procedures

Before entering into, extending, or renewing an agreement with a Submerchant, a Payment Facilitator must verify that the entity is a bona fide
business, has sufficient safeguards in place to protect Cardholder and
Transaction information permitted by the Standards to be captured from
unauthorized disclosure or use, complies with applicable laws, and that each
Transaction submitted by the Sub-merchant will reflect bona fide business
between the Sub-merchant and a Cardholder.
In determining whether the entity is a bona fide business, the Payment
Facilitator must verify, at a minimum, that all of the following have been
completed:
5-8

Merchants
1. Credit check, background investigations, and reference checks of the Submerchant. If the credit check raises questions or does not provide
sufficient information, the Payment Facilitator also should conduct a credit
check of:
a. the owner, if the entity is a sole proprietor
b. the partners, if the entity is a partnership
c. the principal shareholders, if the entity is a corporation
2. Inspection of the entitys premises or Web sites and records to ensure that
it has the proper facilities, equipment, inventory, agreements, and
personnel required and if necessary, license or permit and other
capabilities to conduct business. If the entity has more than one set of
premises or Web site, the Payment Facilitator must inspect at least one of
them.
The Payment Facilitator must retain all records concerning the investigation of
any entity with which it has entered into a Sub-merchant agreement for a
minimum of two years after the date the agreement is terminated or expires.
5.5.2 MATCH Inquiry Required

Before entering into, extending, or renewing an agreement with a Submerchant, the Payment Facilitator must request that its Acquirer make an
inquiry to the MasterCard Member Alert to Control (High-risk) Merchants
(MATCH) system. The Acquirer must ensure that the Payment Facilitator does
not sponsor as a Sub-merchant any entity listed on the MATCH system as
having been terminated for a reason described in section 11.5.1 of the Security
Rules and Procedures manual.
The Acquirer must add each Sub-merchant terminated for any such reason to
the MATCH system per section 11.2.2 of the Security Rules and Procedures
manual.
5.5.3 Sub-merchant Agreement

Each Payment Facilitator must enter into a written agreement with each Submerchant which sets forth the terms applicable to the Sub-merchants
acceptance of Cards and otherwise complies with this Rule 5.5.3.
The Sub-merchant agreement must not interfere with or lessen the right of the
Payment Facilitator, the Acquirer, or the Corporation to terminate the
agreement at any time. The Corporation reserves the right to restrict a
Payment Facilitator from entering into a Sub-merchant agreement based on the
business of the entity or other criteria as the Corporation deems appropriate.

5-9
Merchants
5.5.3.1 Required Provisions

Each agreement between a Payment Facilitator and its sponsored Submerchant must contain the substance of each of the Standards set forth in
Rules 5.6 through 5.12, and specify that these Standards are applicable to Submerchants to the same extent as to Merchants. The failure of the Payment
Facilitator to include the substance of any one or more of such Standards in
the Sub-merchant agreement or the grant of a variance by the Corporation with
respect to any one or more such Standards does not relieve an Acquirer from
responsibility for chargebacks or compliance related to the Activity of or use of
the Marks by the Sub-merchant.
The Sub-merchant agreement must, in substance, include all of the following
provisions:
1. On an ongoing basis, the Sub-merchant is promptly to provide the
Payment Facilitator with the current address of each of its offices, all
doing business as (DBA) names used by the Sub-merchant, and a
complete description of goods sold and services provided.
2. In the event of any inconsistency between any provision of the Submerchant agreement and the Standards, the Standards will govern.
3. The Payment Facilitator is responsible for the Card acceptance policies and
procedures of the Sub-merchant, and may require any changes to its Web
site or otherwise that it deems necessary or appropriate to ensure that the
Sub-merchant remains in compliance with the Standards governing the use
of the Marks.
4. The Sub-merchant agreement automatically and immediately terminates if
the Corporation de-registers the Payment Facilitator or if the Payment
Facilitators Acquirer ceases to be a Customer for any reason or if such
Acquirer fails to have a valid License with the Corporation to use any Mark
accepted by the Sub-merchant.
5. The Payment Facilitator may, at its discretion or at the direction of its
Acquirer or the Corporation, immediately terminate the Sub-merchant
agreement for activity deemed to be fraudulent or otherwise wrongful by
the Payment Facilitator, its Acquirer, or the Corporation.
6. The Sub-merchant acknowledges and agrees:
a. to comply with all applicable Standards, as amended from time to time;
b. that the Corporation is the sole and exclusive owner of the Marks;
c. not to contest the ownership of the Marks for any reason;
d. the Corporation may at any time, immediately and without advance
notice, prohibit the Sub-merchant from using any of the Marks for any
reason;
5-10

Merchants
e. the Corporation has the right to enforce any provision of the Standards
and to prohibit the Sub-merchant and/or its Payment Facilitator from
engaging in any conduct the Corporation deems could injure or could
create a risk of injury to the Corporation, including injury to reputation,
or that could adversely affect the integrity of the Interchange System,
the Corporations Confidential Information as defined in the Standards,
or both; and
f.
the Sub-merchant will not take any action that could interfere with or
prevent the exercise of this right by the Corporation.
The Sub-merchant agreement must not contain any terms that conflict with any
Standard.
5.5.4 Obligations as Sponsor of Sub-merchants

A Payment Facilitator must fulfill all of the following obligations with respect to
each of its Sub-merchants.
5.5.4.1 Submit Valid Transactions

The Payment Facilitator must submit to its Acquirer records of valid
Transactions submitted by a Sub-merchant and involving a bona fide
Cardholder. The Payment Facilitator must not submit to its Acquirer any
Transaction that the Payment Facilitator or the Sub-merchant knows or should
have known to be fraudulent or not authorized by the Cardholder, or that
either knows or should have known to be authorized by a Cardholder
colluding with the Sub-merchant for a fraudulent purpose. For purposes of
this Rule, the Sub-merchant is deemed to be responsible for the conduct of its
employees, agents, and representatives.
5.5.4.2 Sub-merchant Compliance with the Standards

The Payment Facilitator is responsible for ensuring that each of its Submerchants complies with the Standards, including but not limited to the Card
acceptance requirements set forth in Rule 5.6. The Payment Facilitator must
take such actions that may be necessary or appropriate to ensure the Submerchants ongoing compliance with the Standards.
5.5.4.3 Maintaining Sub-merchant Information

The Payment Facilitator must maintain, on an ongoing basis, the names,
addresses, and URLs if applicable of each of its Sub-merchants. The Acquirer
must ensure that the Payment Facilitator promptly supplies the Corporation
with any such information upon request.

5-11
Merchants
5.6 Merchant Identification and Responsibility for Transactions
5.5.4.4 Payments to Sub-merchants

Each Payment Facilitator must pay each Sub-merchant for all Transactions the
Payment Facilitator submits to its Acquirer on the Sub-merchants behalf. This
obligation is not discharged with regard to a Transaction until the Submerchant receives payment from the Payment Facilitator with which the Submerchant has entered into an agreement, notwithstanding any payment
arrangement between the Sub-merchant and the Payment Facilitator or
between the Payment Facilitator and its Acquirer. A Sub-merchant agreement
may provide for a Payment Facilitator to withhold amounts for chargeback
reserves or similar purposes.
5.5.4.5 Supplying Materials to Sub-merchants

Each Payment Facilitator must regularly ensure that each of its Sub-merchants
is provided with all materials necessary to effect Transactions in accordance
with the Standards and to signify MasterCard acceptance. These materials may
include sales slips, credit slips, terminals, authorization services, MasterCard
acceptance decals, signage, and the like.
5.5.4.6 Sub-merchant Monitoring

Each Payment Facilitator must monitor on an ongoing basis the Activity and
use of the Marks of each of its Sub-merchants for the purpose of deterring
fraudulent and other wrongful activity and to ensure ongoing compliance with
the Standards. For purposes of this Rule, the minimum Merchant monitoring
Standards set forth in the Security Rules and Procedures manual apply with
respect to Sub-merchants.
5.6 Merchant Identification and Responsibility for

Transactions
An Acquirer must ensure that each of its Merchants prominently and
unequivocally informs the Cardholder of the identity of the Merchant at all
points of interaction, so that the Cardholder readily can distinguish the
Merchant from any other party, such as a supplier of products or services to
the Merchant. A Merchant Web site must:
1. Prominently display the name of the Merchant;
2. Prominently identify the name of the Merchant as displayed on the Web
site as both the Merchant and as the name that will appear on the
Cardholder statement; and
5-12

Merchants
5.7 Use of the Marks
3. Display Merchant name information as prominently as any other

information depicted on the Web site, other than images of the products or
services being offered for sale.
If the Cardholder is linked to a Payment Facilitators Web site from a Submerchants Web site for payment, the name of the Payment Facilitator must
appear in DE 43 (Card Acceptor Name/Location), subfield 1 (Card Acceptor
Name) in conjunction with the name of the Sub-merchant. If the Cardholder
accesses the Payment Facilitators Web site directly, and its name is visible to
the Cardholder throughout Transaction from selection of goods and/or services
to the completion of the checkout process, then the Payment Facilitators name
may appear in DE 43 without the name of the Sub-merchant. For Card-present
Transactions, both the Payment Facilitator name and the Sub-merchant name
must appear in DE 43, unless only the name of the Payment Facilitator is
known to the Cardholder.
A Merchant must ensure that the Cardholder understands that the Merchant is
responsible for the Transaction, including delivery of the products (whether
physical or digital) or provision of the services that are the subject of the
Transaction, and for customer service and dispute resolution, all in accordance
with the terms applicable to the Transaction.

A Merchant is only permitted to use a Mark in accordance with a Merchant
Agreement with its Acquirer. The Merchant Agreement must provide that:
1. Any use of a Mark by a Merchant in acceptance advertising, acceptance
decals, or signs, must be in accordance with the Standards, including the
Corporations reproduction, usage, and artwork Standards, as may be in
effect from time to time; and
2. The Merchants use or display of any Mark will terminate effective with the
termination of the Merchant Agreement or upon notification by the
Corporation to discontinue such use or display.
The Acquirer must ensure that its Merchant
1. Uses or displays the Marks in accordance with the Standards and
2. Ceases all use of the Marks and promptly returns any materials displaying
the Marks immediately upon termination of the Merchant Agreement or
notification by the Corporation to discontinue such use.
The use or display of any Mark does not give a Merchant any ownership or
interest in the Mark.

5-13
Merchants
5.7.1 Merchants Must Display the MasterCard Acceptance

Mark
An Acquirer must ensure that all of its Merchants prominently display the
MasterCard Acceptance Mark at the point of interaction to indicate that the
Merchant accepts Cards. No other Mark or mark may be used for this
purpose.
An Acquirer must ensure that each of its remote services Merchants display the
MasterCard Acceptance Mark wherever payment options are presented. An
Acquirer must provide its Merchants with the appropriate artwork in a format
authorized by the Corporation. A Mark may not appear on the Web site of a
supplier to a Merchant or of any other entity that is not itself a Merchant (such
as, by way of example and not limitation, an entity that is contracted by the
Merchant to deliver the products or provide the services that are subject of the
Transaction).
The MasterCard Acceptance Mark must be clearly visible to the public at the
point of interaction. The preferred location to post the MasterCard Acceptance
Mark at a physical point of interaction is the entrance, nearby window or door
of the Merchant or location, and on the first screen of an electronic point of
interaction. Where it is not possible to post signage at the entrance of the
Merchant or location, posting the MasterCard Acceptance Mark so that it can
easily and readily be seen within the location will satisfy the requirement.
Where it is not possible to post the MasterCard Acceptance Mark on the first
screen of an electronic point of interaction, posting the MasterCard Acceptance
Mark on the payment screen will satisfy the requirement.
5.7.2 Merchant Advertising and POI Materials

A Merchant may use the MasterCard Acceptance Mark in material or images at
the physical or electronic point of interaction to indicate acceptance.
Other acceptance marks, symbols, logos, or combinations thereof may appear
in the same material or image with the MasterCard Acceptance Mark, if no
other acceptance mark, symbol, or logo is more prominent or likely to cause
confusion concerning the acceptance of Cards.
5.7.3 Local/Regional Acceptance Brands

The MasterCard Acceptance Mark must be displayed as a free-standing mark,
and, as such, may not be displayed so as to suggest that it is either a
secondary means of payment to a local/regional acceptance brand, or
exclusively linked to a local/regional acceptance brand.
5-14

Merchants
Visual parity must be maintained between the MasterCard Acceptance Mark

and any local/regional acceptance mark also displayed at a point of interaction
or in Merchant advertising.
5.7.4 Direct Mail Cardholder Solicitation Merchants

Each Merchant Agreement with a Direct Mail Cardholder Solicitation Merchant
shall contain the entire following provision:
Merchant acknowledges that the trademark MasterCard and the corresponding
logotype are the property of MasterCard International Incorporated (herein,
the Corporation). Merchant shall not infringe upon the mark or logo, nor
otherwise use the mark or logo in such a manner as to create the impression
Merchants products or services are sponsored, produced, affiliated with,
offered, or sold by this Corporation.
Merchant shall not use the mark or logo on its stationery, letterhead,
envelopes, or the like nor in its solicitation; provided, however, that Merchant
may use one of the mark or logo in close proximity to the payment or
enrollment space in the solicitation in a size not to exceed 1 1/4 inches in
horizontal length if a logo is employed, or, if a mark is used, in type not to
exceed the size of the type used in the major portion of the text on the same
page; provided further that the legend, Accepted for Payment must
accompany the mark or logo used and must be the equivalent size of the mark
or logo. In no case, however, shall Merchant use any of the logo on the front
or first page of its solicitation. One truthful statement that Merchant is
directing or limiting its offer to MasterCard cardholders may appear in the
body of the solicitation, other than in close proximity to the payment or
enrollment space, subject to the limitation that:
1. only the word mark may be used;
2. the word mark may not
a. exceed in type size the size of any other type on the same page,
b. differ in color from the type used in the text (as differentiated from the
titles) on the same page,
c. be as large or as prominent as the name of Merchant,
d. be the first item appearing on any page, nor
e. in any other way be the most prominent element of the page;
3. Merchants name and/or logo must appear prominently on the same page
as the mark; and
4. the following disclaimer must appear in close proximity to the mark on the
same page and in an equal size and type of print:

5-15
Merchants
5.8 Card Acceptance Requirements
MasterCard International Incorporated is not affiliated in any way with

[Merchant] and has not endorsed or sponsored this offer.
Merchant further agrees to submit its first direct mail solicitation(s), prior to
mailing, to the MasterCard Law Department, to be reviewed only for
compliance with this Corporations trademark rules and shall furthermore not
distribute in any manner such solicitations until Merchant shall have obtained
this Corporations written approval of the manner in which it uses MasterCard
mark and logo on such solicitations. Merchant shall likewise, upon request,
submit to the Corporation any amended solicitations prior to mailing.

An Acquirer must ensure that each of its Merchants complies with the Card
acceptance requirements set forth in this Rule 5.8 and in section 2.1 of the
Chargeback Guide.
5.8.1 Honor All Cards

A Merchant must honor all valid Cards without discrimination when properly
presented for payment. A Merchant must maintain a policy that does not
discriminate among customers seeking to make purchases with a Card. A
Merchant that does not deal with the public at large (for example, a private
club) is considered to comply with this rule if it honors all valid and properly
presented Cards of Cardholders that have purchasing privileges with the
Merchant.
Note
Variations to this Rule appear in Chapter 10a, New Zealand Rules; Chapter
11a, Canada Region Code of Conduct Related Rules; Chapter 12a, Europe
Region Debit-related Rules; Chapter 14a, South Africa Rules; and Chapter
15a, United States Region Debit-related Rules.
5.8.2 Merchant Acceptance
5-16
Note
A Rule on this topic appears in Chapter 10a, New Zealand Rules; Chapter 12,
Europe Region Rules; Chapter 14a, South Africa Rules; and Chapter 15a,
United States Region Debit-related Rules. A variation to the Europe Region
Rule appears in Chapter 12a, Europe Region Debit-related Rules.

Merchants
5.9 Submitting Transactions
5.8.3 Obtain an Authorization

When required by the Standards or by the Acquirer, the Merchant must obtain
an authorization before completing a Transaction.
For specific Merchant authorization requirements, refer to sections 2.1.2
through 2.1.5 of the Chargeback Guide.
5.8.4 Additional Cardholder Identification

A Merchant must not refuse to complete a Transaction solely because a
Cardholder who has complied with the conditions for presentment of a Card at
the POI refuses to provide additional identification information, except as
specifically permitted or required by the Standards. A Merchant may require
additional identification from the Cardholder if the information is required to
complete the Transaction, such as for shipping purposes. A Merchant in a
country or region that supports use of the MasterCard Address Verification
Service (AVS) may require the Cardholders ZIP or postal code to complete a
Cardholder-Activated Terminal (CAT) Transaction, or the Cardholders address
and ZIP or postal code to complete a mail order, phone order, or e-commerce
Transaction.
5.8.5 E-Commerce Transactions

A Merchant must not refuse to complete an e-commerce Transaction solely
because the Cardholder does not have a digital certificate or other secured
protocol.

Refer to sections 2.1.12 and 2.4 of the Chargeback Guide for purchase with
cash back Transaction requirements.
Note
Variations to this Rule appear in Chapter 12, Europe Region Rules, Chapter
14a, South Africa Rules; and Chapter 14b, India Rules.
5.9 Submitting Transactions

An Acquirer must ensure that each of its Merchants comply with the
requirements for submitting Transactions to the Acquirer set forth in this Rule
5.9.
5-17
Merchants
5.10 Noncompliance Assessments
5.9.1 Valid Transactions

A Merchant must submit to its Acquirer records of valid Transactions only
between the Merchant and a bona fide Cardholder.
A Merchant must not submit to its Acquirer a Transaction that the Merchant
knows or should have known to be fraudulent or not authorized by the
Cardholder, or that it knows or should have known to be authorized by a
Cardholder colluding with the Merchant for a fraudulent purpose. For
purposes of this Rule, the Merchant is deemed to be responsible for the
conduct of its employees, agents, and representatives.
5.9.2 Submit Transactions within Three Business Days

A Merchant must submit records of valid Transactions to its Acquirer no later
than three bank business days after the Transaction date, except:
1. The record must not be presented until after the products are shipped or
the services are performed unless, at the time of the Transaction, the
Cardholder agrees to a properly disclosed delayed delivery of the products
or services.
2. When the Merchant receives Cardholder authorization for a delayed
presentment (in which case the words Delayed Presentment must be
noted on the Transaction Information Document [TID]).
3. When the Merchant is obligated by law to retain the TID or return it to a
buyer upon timely cancellation, in which case the Merchant should present
the record within 10 business days after the Transaction date.
4. When the Merchant has multiple locations and uses a central facility to
accumulate and present records to the Acquirer, in which event the
Merchant must present the record in accordance with applicable law and,
in any event, within 30 calendar days of the Transaction date.
5.10 Noncompliance Assessments

If the Corporation becomes aware of a Merchants noncompliance with any
Standard, the Corporation may notify the Acquirer of such noncompliance and
may assess the Acquirer, and the Acquirer must promptly cause the Merchant
to discontinue the noncompliant practice. A notification by the Corporation
with respect to at any one location of a Merchant requires the Acquirer to
ensure that the Merchant is in compliance with the Standards at all locations of
the Merchant that are subject to the Merchant Agreement(s).
A Customer may request that the Corporations Secretary review an assessment
for a Merchants noncompliance with a Standard.
5-18

Merchants
5.11 Prohibited Practices

An Acquirer must ensure that none of its Merchants engage in any of the
prohibited practices set forth in this Rule 5.11.
5.11.1 Discrimination
A Merchant must not engage in any acceptance practice that discriminates
against or discourages the use of a Card in favor of any other acceptance
brand.
Note
An addition to this Rule appears in Chapter 10a, New Zealand Rules. A

variation to this Rule appears in Chapter 10, Asia/Pacific Region Rules,
Chapter 13, Latin America and the Caribbean Region Rules, and Chapter 15,
5.11.2 Charges to Cardholders

A Merchant must not directly or indirectly require any Cardholder to pay a
surcharge or any part of any Merchant discount or any contemporaneous
finance charge in connection with a Transaction. A Merchant may provide a
discount to its customers for cash payments. A Merchant is permitted to
charge a fee (such as a bona fide commission, postage, expedited service or
convenience fees, and the like) if the fee is imposed on all like transactions
regardless of the form of payment used, or as the Corporation has expressly
permitted in writing. For purposes of this Rule:
1. A surcharge is any fee charged in connection with a Transaction that is not
charged if another payment method is used.
2. The Merchant discount fee is any fee a Merchant pays to an Acquirer so
that the Acquirer will acquire the Transactions of the Merchant.
Note
Variations to this Rule appear in Chapter 10, Asia/Pacific Region Rules,

Chapter 10a, New Zealand Rules, Chapter 11a, Canada Region Code of
Conduct Related Rules, and Chapter 12, Europe Region Rules, and Chapter

5-19
Merchants
5.11.3 Minimum/Maximum Transaction Amount Prohibited

A Merchant must not require, or indicate that it requires, a minimum or
maximum Transaction amount to accept a valid and properly presented Card.
Note
A variation to this Rule appears in Chapter 10, Asia/Pacific Region Rules;

Chapter 13, Latin America and the Caribbean Region Rules; and Chapter 15,
5.11.4 Scrip-dispensing Terminals

Cards must not be accepted at terminals that dispense scrip.
5.11.5 Prohibited Transactions

A Merchant must not submit for payment into interchange, and a Customer
must not accept from a Merchant for submission into interchange, any
Transaction that:
1. Represents the refinancing or transfer of an existing Cardholder obligation
that is deemed to be uncollectible, or
2. Arises from the dishonor of a Cardholders personal check, or
3. Arises from the acceptance of a Card at a terminal that dispenses scrip.
5.11.6 Other Forms of Payment

A Merchant must not accept any payment from a customer in any other form
(for example, cash or check) with respect to a charge for products or services
reflected on a TID resulting from the use of a Card. A Merchant also must not
accept a Card as payment for products or services for which the Merchant has
received or expects to receive payment in any other form, whether from the
customer or a third party.
5.11.7 Illegal or Brand-damaging Transactions

A Merchant must not submit for payment into interchange, and an Acquirer
must not accept from a Merchant for submission into interchange, any
Transaction that is illegal, or in the sole discretion of the Corporation, may
damage the goodwill of the Corporation or reflect negatively on the Marks.
The Corporation considers any of the following activities to be in violation of
this Rule:
5-20

Merchants
5.12 Security Rules
1. The sale or offer of sale of a product or service other than in full

compliance with law then applicable to the Acquirer, Issuer, Merchant,
Cardholder, Cards, or the Corporation.
2. The sale of a product or service, including an image, which is patently
offensive and lacks serious artistic value (such as, by way of example and
not limitation, images of nonconsensual sexual behavior, sexual
exploitation of a minor, nonconsensual mutilation of a person or body
part, and bestiality), or any other material that the Corporation deems
unacceptable to sell in connection with a Mark.
An Acquirer that has been notified of a Merchants noncompliance with this
Rule and that fails promptly to cause the noncompliant practice to cease, or
that has been notified multiple times regarding violations of this Rule, is
subject, at the Acquirers expense, and in addition to any other noncompliance
assessment or other discipline, or both, to any one or more of the following:
1. A Fraud Management Program (FMP) Level 3 Member review as described
in the Security Rules and Procedures manual
2. An audit at the sole expense of the Acquirer by a third party selected by
the Corporation, of the Acquirers acquiring practices
The Corporation may list a Merchant which the Corporation determines is
noncompliant with this Rule on the MATCH system. (See chapter 11 of the
Security Rules and Procedures manual.)
5.11.8 Disparagement
Note
A Rules on this topic appears in Chapter 10, Asia/Pacific Rules, Chapter 13,
Latin America and the Caribbean Region Rules, and Chapter 15, United States
Region Rules.
5.12 Security Rules

An Acquirer must ensure that each of its Merchants and the Merchants DSEs
comply with all of the requirements set forth in this Rule 5.12.
5.12.1 Sale or Exchange of Information

A Merchant must not sell, purchase, provide, exchange or in any manner
disclose Card account number, Transaction, or personal information of or
about a Cardholder to anyone other than its Acquirer, to the Corporation, or in
response to a valid government demand.
5-21
Merchants
5.13 Discounts or Other Benefits at the Point of Interaction
This prohibition applies to Card imprints, TIDs, carbon copies, mailing lists,
tapes, database files, and all other media created or obtained as a result of a
Transaction.
5.13 Discounts or Other Benefits at the Point of

Interaction
Note
11, Canada Region Rules; Chapter 12, Europe Region Rules; Chapter 13,
Latin America and the Caribbean Region Rules; and Chapter 14, South
Asia/Middle East/Africa Region Rules.
Compliance Zones
the compliance framework described in Rule 3.1.2.
Rule Number
Rule Title
Category
5.1
The Merchant Agreement
5.2.1
Acquiring Transactions
5.2.2
Merchant and Sub-merchant Compliance with the Standards
5.2.3
Merchant Information
5.2.4
Payments to Merchants
5.2.5
Supplying Materials
5.3
Merchant Monitoring
5.4
Use of a Payment Facilitator
5.5
Payment Facilitator Obligations
5.5.1
Sub-merchant Screening Procedures
5.5.2
MATCH Inquiry Required
5.5.3
Sub-merchant Agreement
5.5.4.1
Submit Valid Transactions
5.5.4.2
Sub-merchant Compliance with the Standards
5-22

Merchants
Compliance Zones
Rule Number
Rule Title
Category
5.5.4.3
Maintaining Sub-merchant Information
5.5.4.4
Payments to Sub-merchants
5.5.4.5
Supplying Materials to Sub-merchants
5.5.4.6
Sub-merchant Monitoring
5.6
Merchant Identification and Responsibility for Transactions
5.7
Use of the Marks
5.8.1
Honor All Cards
5.8.2
Merchant Acceptance
5.8.3
Obtain an Authorization
5.8.4
Additional Cardholder Identification
5.8.5
E-commerce Transactions
5.8.6
Purchase With Cash Back Transactions
5.9.1
Valid Transactions
5.9.2
Submit Transactions Within Three Business Days
5.11.1
Discrimination
5.11.2
Charges to Cardholders
5.11.3
Minimum/Maximum Transaction Amount Prohibited
5.11.4
Scrip-dispensing Terminals
5.11.5
Prohibited Transactions
5.11.6
Other Forms of Payment
5.11.7
Illegal or Brand-damaging Transactions
5.12
Security Rules
5.13
Discounts or Other Benefits at the Point of Interaction

5-23

This chapter contains information about Special Issuer Programs.
6.1 Special Issuer ProgramsGeneral Requirements ........................................ 6-1

6.1.1 Prior Consent of the Corporation ........................................................ 6-1
6.1.2 Reservation of Rights ........................................................................... 6-1
6.1.3 Cardholder Communication ................................................................. 6-1
6.2 Affinity and Co-Brand Card Programs .......................................................... 6-2
6.2.1 Program Partners .................................................................................. 6-2
6.2.2 Ownership and Control of the Program ............................................. 6-3
6.2.3 Issuer Identification on Program Cards ............................................... 6-3
6.2.4 Program Name ..................................................................................... 6-4
6.2.5 Multiple Partners .................................................................................. 6-4
6.2.6 Accept All Cards without Discrimination ............................................ 6-4
6.2.7 Use of the MasterCard Acceptance Mark ............................................ 6-5
6.3 Brand Value Transactions and Proprietary Accounts .................................. 6-5
6.3.1 Proprietary Account Access ................................................................. 6-5
6.3.2 Fees and Reporting Requirements....................................................... 6-6
6.4 Remote Transaction Accounts ...................................................................... 6-6
6.4.1 Remote Transaction Account Requirements ....................................... 6-7
6.4.1.1 Remote Transaction MasterCard M/Chip Account Programs .... 6-7
6.5 Secured Card Programs ................................................................................. 6-7
6.5.1 Secured Card Program Requirements.................................................. 6-7
6.5.2 Refund of Fees ..................................................................................... 6-8
6.5.3 Secured Card Program Solicitation and Disclosure Requirements ..... 6-8
6.6 Prepaid Card Programs ................................................................................. 6-9
6.6.1 Responsibility for the Prepaid Card Program...................................... 6-9
6.6.2 Categories of Prepaid Card Programs ................................................. 6-9
6.6.3 Return of Unspent Value ................................................................... 6-10
6.6.4 Value Loading .................................................................................... 6-12
6-i
6.6.5
6.6.6
6.6.7
6.6.8
Communications and Marketing Materials ........................................ 6-12

Anti-Money Laundering ..................................................................... 6-13
Anonymous Prepaid Card Guidelines ............................................... 6-14
BINs .................................................................................................... 6-14
6-ii


6.1 Special Issuer ProgramsGeneral Requirements
6.1 Special Issuer ProgramsGeneral Requirements

The Rules set forth in this Chapter 6 apply to Special Issuer Programs that the
Corporation may identify as such from time to time.
6.1.1 Prior Consent of the Corporation

A Customer may not conduct a Special Issuer Program without the express
prior written consent of the Corporation and each Customer must operate each
Special Issuer Program in accordance with the Standards as may be in effect
from time to time. A Special Issuer Program name and Special Issuer Program
Card design must be reviewed and approved by the Corporation in accordance
with the Standards.
A request for approval must be submitted to the Corporation via the Special
Issuer Program registration process. Registration forms, which are available to
Issuers or their designated agents on MasterCard Online, must include a
detailed description of the Card Program.
6.1.2 Reservation of Rights

The Corporation reserves the right:
1. To approve or reject any Special Issuer Program application; and
2. To require that any previously approved Special Issuer Program be
modified; and
3. To withdraw its approval of any Special Issuer Program and require the
Special Issuer Program to be wound up and terminated.
A Customer may request that the Corporations Secretary review the rejection
or withdrawal of the approval of a Special Issuer Program by written request to
the Corporations Secretary within 30 days of receipt of the notice of rejection
or withdrawal of approval. Any decision by the Corporations Secretary with
respect to such termination is final and not appealable.
6.1.3 Cardholder Communication

A Customer is required to provide each Cardholder offered a Card to be issued
as part of a Special Issuer Program with the terms and conditions of the
Special Issuer Program.

6-1

6.2 Affinity and Co-Brand Card Programs
The Corporation determines whether any Cardholder Communication,

including, by way of example and not limitation, a Solicitation, disclosure or
other information about a Special Issuer Program, is satisfactory and in
compliance with the Standards. As a condition of the commencement or
continuation of a Special Issuer Program, the Customer must comply with the
Corporations Cardholder Communication requirements.
Each Cardholder Communication must clearly communicate the identity of the
Member as the Card Issuer and otherwise must be clear and truthful and must
not reflect poorly on the Corporation or any Mark.
Each Special Issuer Program Solicitation must:
1. Refer prominently to the offering exclusively as a Card and not position the
offering as anything other than a Card; and
2. Prominently and integrally feature the MasterCard Word Mark and
MasterCard Brand Mark; and
3. Clearly and conspicuously disclose the identity of the Card Issuer.
Each Solicitation about a Special Issuer Program, including any material
modification of a prior Solicitation, must be approved in writing by the Issuer
prior to final production and first use.

Affinity Card Programs and Co-brand Card Programs are Special Issuer
Programs. This Rule 6.2 is applicable to both.
6.2.1 Program Partners

Subject to compliance with the Standards, an Issuer may use the area on a
Card that the Standards reserve for the identification of the Issuer to instead or
additionally identify a person or entity other than the Issuer. Such person or
entity is referred to herein as a Partner. There are two types of Partners: an
Affinity Group, which is an educational or other not-for-profit entity that
promotes an institution or activities, and a Co-brand Partner, which is a forprofit company organized to engage in commercial activity.
Notwithstanding Rule 1.5.1, a financial institution that is eligible to be a
Customer may be a Co-brand Partner only if such entity is not a Customer.
6-2


6.2.2 Ownership and Control of the Program

An Affinity Card Program or Co-brand Card Program must be entirely owned
and Controlled by the Issuer at all times and a Partner may not own or Control
any part of the Program or the Program receivables. The Corporation
exclusively determines if an Issuer is in compliance with the foregoing
requirements. In making such a determination, the Corporation may consider
such factors as:
1. Whether the Customer establishes the Program policies and guidelines,
such as Cardholder credit and eligibility decisions;
2. The Members role in setting fees and rates;
3. What the Member has at risk;
4. Whether the Member actively ensures that the Program policies and
guidelines are implemented;
5. The ownership and Control of the Program receivables;
6. Whether all or a substantial portion of the receivables are financed with the
Partner; and
7. The extent to which the Member, and not the Partner, is portrayed as the
owner of the Program.
6.2.3 Issuer Identification on Program Cards

The following Issuer identification requirements apply to all Affinity Card
Program and Co-brand Card Program Cards:
1. Neither the Card design nor any information appearing on the Card may
state or infer that anyone other than the Customer is the Issuer of the Card.
2. Issuer identification consisting of the Issuers name or the Issuers name
and logo must be clearly visible either on the Card face or on the Card
back. The name or logo or both of a Partner may appear on the Card face
in addition to the Issuer identification or on the Card back.
3. A Card that bears only the Partners name or logo on the Card face, but
that otherwise satisfies the Issuer identification Standards is deemed (in the
absence of other circumstances) to comply with these requirements.
4. In addition to, or in lieu of, appearing on the upper portion of the Card
face, the name of the Partner may be present on the fourth line of the
Account Information Area.

6-3

5. If the Issuer identification does not appear on the Card face, the following
statement must prominently appear and be clearly legible on the Card
back: This card is issued by (FULL, TRUE ISSUER NAME) pursuant to
license by MasterCard International. The location of this statement on the
Card is at the Issuers discretion.
6. For Programs in which more than one Partner participates, Issuer
identification on the card back must be equal or greater in size than the
identification of any Partner on the Card back. See Multiple Partners.
7. The Issuers customer service telephone number must appear on the back
of all Cards.
6.2.4 Program Name

An Issuer may apply to the Corporation for permission to have a Card Program
name appear in addition to or in lieu of the Issuer name or the Partners name
or both on the Card face and, with such permission, may use such a Card
Program name.
6.2.5 Multiple Partners

Except as may be otherwise set forth in the Standards, if a Program involves
more than one Partner, only one Partners name or logo or both may appear
on the Card face. The name or logo or both of any additional Partner(s) may
appear only on the Card back.
Note
Variations to this Rule appear in Chapter 10, Asia/Pacific Region Rules;

Chapter 12, Europe Region Rules; Chapter 13, Latin America and the
Caribbean Region Rules; and Chapter 15, United States Region Rules.
6.2.6 Accept All Cards without Discrimination

A Merchant that accepts any Affinity Card Program Cards or Co-brand Card
Program Cards must accept all other validly presented Cards, without limitation
or exception.
6-4


6.3 Brand Value Transactions and Proprietary Accounts
6.2.7 Use of the MasterCard Acceptance Mark

A MasterCard Acceptance Mark displayed at the POI must appear apart from
any Partner identification and must at least have parity in size and prominence
with any Program logo, Program name, or the like, and with any competing
mark also displayed. The Corporation has the right to require the modification
or removal of any POI display of a Program name or logo that the Corporation
determines does not comply with this Rule or reflects negatively on any Mark.

A Brand Value Transaction (BVT) means a Member or third party transaction
that originates by the use of a Card to access a proprietary account, proprietary
application, or both. A BVT is not a Transaction. A BVT is a transaction that:
1. Accesses a proprietary account through use of an Affinity Card Program
Card or Co-brand Card Program Card at the Partners own Merchant
locations or at other Merchants that participate in the Partners services; or
2. Accesses proprietary stored value residing on a Cards magnetic stripe or
chip; or
3. Uses a non-payment application residing on a Card, such as a loyalty
application, an electronic coupon, medical information, or paperless
ticketing. The technology employed by the non-payment application (for
example, a chip or magnetic stripe) must not facilitate or otherwise enable
the use of a competitive payment product for the non-payment benefit or
service.
Note
6.3.1 Proprietary Account Access

The Corporation exclusively determines if a proprietary account number may
be used on a Card as a BVT. A proprietary account number that the
Corporation determines may be used on a Card as a BVT may have one or
more of the following characteristics:
1. The proprietary account number is different from the Card account
number. The proprietary account number may appear on the Card face,
be encoded on the Card, or be cross-referenced in the Customer or a
Partners system.

6-5

6.4 Remote Transaction Accounts
2. The proprietary account number is used in a system or network for

authorization and settlement that is distinct from the Interchange System
and is not used in the Interchange System.
3. Any billing related to use of the proprietary account number is distinct
from any billing for the Card account, whether as part of a common
statement or in a separate statement.
Access to a proprietary account by means of an Affinity Card Program Card or
Co-brand Card Program Card is authorized only with the prior written consent
of the Corporation. In addition, such a Program Card must afford the
Cardholder access to the same proprietary account that the Partner previously
established for the Cardholder, for payment of the same particularly defined
set of transactions that were previously payable by other means. The
Corporation must approve, in advance and in writing, of the locations,
services, and parties for which the proprietary account access feature is
available.
6.3.2 Fees and Reporting Requirements

From time to time, the Corporation may establish, implement, and collect fees,
assessments, or both arising from or related to BVTs, proprietary accounts, or
both.
If a BVT involves an Affinity Card Program or a Co-brand Card Program, the
Customer must separately report to the Corporation the number of Cards
outstanding, the proprietary account sales volume on such Cards, and any
other requested information in the form and at such times as the Corporation
requires.
Note
A variation to this Rule appears in Chapter 10, Asia/Pacific Region Rules.
6.4 Remote Transaction Accounts

A Remote Transaction account means a Card account that is intended primarily
to be used to engage in Remote Transactions. Subject to the requirements set
forth below, a Customer is not required to issue a physical Card in connection
with or which links to a Remote Transaction account. A Program using
Remote Transaction accounts is a Special Issuer Program, is subject to the
Standards, and has all rights accorded to Cards under the Standards except
those Standards that relate to the physical characteristics or use of a Card.
6-6


6.5 Secured Card Programs
6.4.1 Remote Transaction Account Requirements

An Issuer of a Remote Transaction account must comply with the all of the
following requirements:
1. A Remote Transaction account program may not be conducted or marketed
without the express prior written consent of the Corporation.
2. A Remote Transaction account must be assigned a 16-digit account
number, in conformance with the Standards applicable to Cards, and must
be assigned a Card Validation Code 2 (CVC 2) value and an expiration or
valid through date.
3. A Remote Transaction account must be enhanced with Address Verification
Service (AVS) if the account is issued for use in an area where AVS is
available.
4. Effective 13 April 2012, partial approval authorization service must be
supported for all prepaid MasterCard and all Debit MasterCard (including
prepaid) Remote Transaction account ranges.
Before activating a Remote Transaction account, the Issuer must communicate
in writing to the Cardholder the account number, the expiration or valid
through date of the account, the identity of the Issuer, and instructions as to
the manner in which the Remote Transaction account may be used.
6.4.1.1 Remote Transaction MasterCard M/Chip Account Programs

A Remote Transaction MasterCard M/Chip account means an EMV chip-based
Remote Transaction account that a Cardholder uses to effect remote chip-read
Transactions. Remote Transaction M/Chip account Programs must adhere to
all applicable M/Chip Standards as may be developed and amended from time
to time.

A secured Card means a Card for which a line of credit is secured by an
amount held on deposit. A secured Card Program is a Special Issuer Program.
6.5.1 Secured Card Program Requirements

A secured Card Program must be, and the Corporation exclusively determines
whether a secured Card Program is:
1. Structured so as to avoid undue risk to the Corporation and its Customers,
and
6-7

2. Operated in a manner that does not reflect poorly on the Corporation or

the Marks.
6.5.2 Refund of Fees

If a Customer promises, directly or indirectly, to refund any fee paid by an
applicant for a secured Card if the Card is not so issued, the Customer must
ensure that such refund is made promptly and in any event within 30 days
following the submission of the application and without any further action by
the applicant.
6.5.3 Secured Card Program Solicitation and Disclosure

Requirements
The following Solicitation and disclosure requirements apply to a secured Card
Program:
1. A Customer that conducts a secured Card Program without the use of an
Service Provider may use a Program name to identify such a Program, in
addition to or in lieu of the Customers name, subject to the prior written
approval of the Corporation.
2. A Solicitation may not reference consumers who have filed, or are
contemplating filing, for bankruptcy relief. Any reference within a
Solicitation to a consumers credit problem may be included only in the
general disclosure to the consumer.
3. Each Solicitation for a secured Card must clearly and conspicuously
disclose that the Card is a secured Card and that the consumer must
establish a deposit account. The Solicitation also must specify that the
credit line will be equal to either
a. The amount of the security deposit, or
b. A specified percentage of the security deposit.
4. No Solicitation may refer to a specific credit line limit unless the Issuer
a. Regularly issues secured Cards with such a credit limit, or
b. Has in effect a policy that
6-8
i.
permits the regular issuance of secured Cards with such a credit

limit, and
ii.
is compatible with the Issuers policy governing its issuance of

secured Cards with lower credit limits.


6.6 Prepaid Card Programs

disclose what an applicant will receive by responding to the Solicitation. If
the applicant may not be issued a secured Card after responding to a
Solicitation, that fact must be clearly and conspicuously disclosed in the
Solicitation.
disclose any and all application or other fees the applicant must pay, or
could be required to pay, to be issued a secured Card. All such fees must
be made payable to the Issuer and not to any other person or entity.

A Prepaid Card Program means:
1. A Card account that accesses value maintained by an Issuer or a third party
designated by the Issuer on behalf of the owner of the funds in the Card
account, the value of which shall be fully available to the owner of the
funds in the Card account at all times; or
2. Any other permitted form of Electronic Money.
Typically, and by regulatory requirement in some markets, the funds are
maintained in an omnibus, segregated trust, or pooled account.
6.6.1 Responsibility for the Prepaid Card Program

The Issuer is responsible for its Prepaid Card Programs, the Prepaid Card
Program funds associated with those Prepaid Card Programs, and for the
actions (or inaction) of any agents it uses in connection with such Prepaid
Card Programs. The Corporation exclusively determines if an Issuer is in
compliance with the foregoing requirements.
6.6.2 Categories of Prepaid Card Programs

The Corporation categorizes Prepaid Card Programs into three categories:
consumer, commercial, and government. The Corporation may adopt
additional and/or review the current categories of Prepaid Card Programs from
time to time in its sole discretion.

6-9

6.6.2.1 Consumer Prepaid Card Programs

Consumer Prepaid Card Programs are Prepaid Card Programs in which the
funds may be deposited in the prepaid Card account by the consumer, a
commercial entity and/or a government entity. In the case of Consumer
Prepaid Card Programs, the funds deposited in the prepaid Card account are
owned by the consumer.
6.6.2.2 Commercial Prepaid Card Programs

Commercial Prepaid Card Programs are Prepaid Card Programs in which the
funds are deposited in the prepaid Card account by a commercial entity. In
the case of Commercial Prepaid Card Programs, the funds deposited in the
prepaid Card account may be owned by the commercial entity or by the
consumer or other third party designated by the commercial entity or such
consumer. If the commercial entity permits a consumer to deposit funds in the
prepaid Card account owned by the commercial entity, the Commercial
Prepaid Card Program becomes a Consumer Prepaid Card Program and all
relevant Consumer Prepaid Card Program requirements apply.
6.6.2.3 Government Prepaid Card Programs

Government Prepaid Card Programs are Prepaid Card Programs in which the
funds are deposited in the prepaid Card account by a government entity.
Government Prepaid Card Programs are designed to deliver government
payments to a person, including, but not limited to, segmented non-taxable
wages, social benefits, pensions and emergency assistance, as governed by
applicable law. In the case of Government Prepaid Card Programs, the funds
deposited in the prepaid Card account may be owned by the government
entity or by the consumer or other third party designated by the government
entity or such consumer. If the government entity permits a consumer to
deposit funds in the prepaid Card account owned by the government entity,
the Government Prepaid Card Program becomes a Consumer Prepaid Card
Program and all relevant Consumer Prepaid Card Program requirements apply.
6.6.3 Return of Unspent Value

Issuers must return any unspent funds in the prepaid Card account to the
owner of that account in compliance with applicable law or regulation. In
instances where applicable law or regulation does not provide time frames
concerning the return of unspent funds, Issuers must comply with the
requirements set forth in this Rule 6.6.3. Subject to applicable law or
regulation, an Issuer has no obligation to return unspent funds in the prepaid
Card account if the identity of the owner of the unspent funds has not been
provided to the Issuer.
6-10


6.6.3.1 Consumer Prepaid Card Programs

Issuers of Consumer Prepaid Card Programs must provide the consumer with a
minimum of twelve months from the date of the last value load or thirty
calendar days after the expiration date, whichever comes later, to request the
return of unspent funds, less any applicable fees imposed by the Issuer or any
other lawful offsets. Prominent disclosure must be made to the consumer as to
how and when to request the refund of unspent funds and as to any fees that
apply to the Prepaid Card Program. Once the consumer submits a refund
request, the consumer must receive a refund of unspent funds within thirty
calendar days of the date on which the refund request was received by the
Issuer.
6.6.3.2 Commercial Prepaid Card Programs

Issuers of Commercial Prepaid Card Programs must provide the commercial
entity or individual or other third party designated by the commercial entity or
consumer with a minimum of thirty calendar days, or as otherwise approved
by the Corporation, to spend the funds in the prepaid Card account, after
which time the funds may revert to the commercial entity or, as otherwise
agreed between the commercial entity and the Issuer or its agents (if any), to
the Issuer or its agents.
6.6.3.3 Government Prepaid Card Programs

If the owner of the funds in the prepaid Card account is a government entity,
then the Issuer of the Government Prepaid Card Program must provide the
government entity with a minimum of thirty calendar days, or as otherwise
approved by the Corporation, to spend the funds in the prepaid Card account,
after which time the funds may revert to the government entity or, as
otherwise agreed between the government entity and the Issuer or it agents (if
any), to the Issuer or its agents.
If the owner of the funds in the prepaid Card account is a consumer, then the
Issuer of the Government Prepaid Card Program must provide the consumer
with a minimum of twelve months from the date of the last value load or thirty
calendar days after the expiration date, whichever comes later, to request the
return of unspent funds, less any applicable fees imposed by the Issuer or any
other lawful offsets. Prominent disclosure must be made to the consumer as to
how and when to request the refund of unspent funds and as to any fees that
apply to the Prepaid Card Program.
Once the consumer submits a refund request, the consumer must receive a
refund of unspent funds within thirty calendar days of the date on which the
refund request was received by the Issuer.

6-11

6.6.4 Value Loading

Subject to the restrictions set forth below, the maximum load value and load
parameters associated with a prepaid Card account are established by the
Issuer of the Prepaid Card Program and are subject to review and approval by
the Corporation.
For Consumer or Commercial Prepaid Card Programs, the Corporation permits
a maximum load value of USD 5000 or the local currency equivalent per day.
If an Issuer needs to increase the above-referenced maximum daily amount or
otherwise structure the loading of funds into the prepaid Card account, the
Corporation will evaluate the proposed Prepaid Card Program on a case-bycase basis. However, funds deposited into the prepaid Card account via
Automatic Clearing House (ACH), Bankers Automated Clearing Services
(BACS), Clearing House Automated Payment System (CHAPS), or any other
electronically transferred payroll payments may exceed the above-referenced
maximum daily amount.
The Corporation reserves the right to reduce the maximum amount described
above in certain circumstances and/or in connection with certain Prepaid Card
Programs.
Prepaid Card Programs for which the Issuer does not collect, store or
otherwise validate the consumers identity are subject to the MasterCard
Anonymous Prepaid Cards Guidelines, available on MasterCard OnLine.
6.6.5 Communications and Marketing Materials

If an Issuers prepaid Cards are intended to be used by Cardholders for
personal, family or household use, then the Issuer must provide Cardholders
with the terms and conditions of the Prepaid Card Program on or before any
purchase is made or activation fees are incurred. If the Issuers prepaid Cards
are intended to be used by Cardholder for business use, then the Issuer must
provide the commercial entity or government entity, as the case may be, with
the terms and conditions of the Prepaid Card Program on or before any
purchase is made or activation fees are incurred. Thereafter, the Issuer must
provide the respective Cardholder, commercial entity or government entity
with any amendment or modifications thereto and, in particular, make clear
and conspicuous disclosures with respect to all fees to be incurred by the Card
account holder to obtain, use, reload, maintain and/or cash out the balance in
the prepaid Card account or for any other use, as required by the Standards
and applicable law.
6-12


Issuers must submit all communications and marketing materials including, but
not limited to, printed materials and copies or electronic versions of Web sites
and mobile applications, if any, for all Prepaid Card Programs to the
Corporation via e-mail at [email protected] for review and
approval prior to the launch or subsequent modification of the Prepaid Card
Program and prior to any marketing of the Prepaid Card Program. The
Corporation review is limited to compliance with the Standards for Issuer
communications. Each Issuer is responsible for ensuring that its Prepaid Card
Program communication and marketing materials comply with applicable law
and the Standards. Communication and marketing materials include, but are
not limited to, card carriers, press releases, Web sites, welcome letters,
consumer applications, and terms and conditions.
Issuers of prepaid Cards intended to be used by Cardholders for personal,
family or household use must inform Cardholders that, in the event that the
available amount in the prepaid Card account is less than the purchase
amount, some Merchants may not allow the Cardholder to combine multiple
payment types (such as cash, check or another payment card) to complete the
Transaction. Issuers of prepaid Cards intended to be used by Cardholders for
business use must inform the commercial entity or government entity, as the
case may be, of the foregoing.
Issuers of prepaid Cards intended to be used by Cardholders for personal,
family or household use must inform Cardholders if their prepaid Cards are
linked to a selective authorization Program. Issuers of prepaid Cards intended
to be used by Cardholders for business use must inform the commercial entity
or government entity, as the case may be, of the foregoing. Refer to the
Selective Authorization Communications Policy available on MasterCard
OnLine for additional information.
6.6.6 Anti-Money Laundering

Issuers of Prepaid Card Programs must do so in compliance with the
MasterCard Anti-Money Laundering Program (the AML Program). The AML
Program requires Issuers to have an anti-money laundering compliance
program that, at a minimum, includes policies, procedures, and controls for
customer identification and ongoing due diligence, appropriate limitations on
anonymous activities, suspicious activity monitoring and reporting, recordkeeping procedures, independent controls testing and sanction screening.
Issuers must screen their Cardholders pursuant to the economic and trade
sanctions requirements of the Office of Foreign Assets Control (OFAC) of the
U.S. Department of the Treasury.

6-13

Compliance Zones
The Corporation may perform periodic reviews of the Issuers anti-money

laundering compliance program to ensure ongoing compliance with the AML
Program. As part of this periodic review, Issuers may be subject to enhanced
due diligence procedures which may include onsite examinations and/or the
use of a third party reviewer.
Any violation of the AML Program and requirements could lead to
noncompliance assessments, immediate Prepaid Card Program or Membership
suspension, and/or termination.
6.6.7 Anonymous Prepaid Card Guidelines

Refer to the MasterCard Anonymous Prepaid Cards Guidelines available on
MasterCard OnLine for additional information regarding anonymous prepaid
card policies.
6.6.8 BINs
Issuers must use a dedicated BIN(s) and associated prepaid product codes in
conjunction with their Prepaid Card Programs.
Compliance Zones
Section Number
Section Title
Category
6.1.1
Prior Consent of the Corporation
6.1.3
Cardholder Communication
6.2.1
Program Partners
6.2.2
Ownership and Control of the Program
6.2.3
Issuer Identification on Program Cards
6.2.4
Program Name
6.2.5
Multiple Partners
6.2.6
Accept All Cards without Discrimination
6.2.7
Use of the MasterCard Acceptance Mark
6.3.1
Proprietary Account Access
6-14


Compliance Zones
Section Number
Section Title
Category
6.3.2
Fees and Reporting Requirements
6.4.1
Remote Transaction Account Requirements
6.5.1
Secured Card Program Requirements
6.5.2
Refund of Fees
6.5.3
Secured Card Program Solicitation and Disclosure Requirements
6.6
Prepaid Card Programs

6-15
Service Providers
This chapter contains Rules that apply to Customers that use Service Providers
to provide Program Service.
7.1 Service Provider Categories .......................................................................... 7-1

7.1.1 Independent Sales Organization ......................................................... 7-3
7.1.2 Third Party Processor ........................................................................... 7-3
7.1.2.1 Type I .......................................................................................... 7-3
7.1.2.2 Type II ......................................................................................... 7-4
7.1.3 Data Storage Entity ............................................................................... 7-4
7.1.4 Service Provider Registration Facilitator .............................................. 7-4
7.2 Program Service............................................................................................. 7-4
7.3 General Obligations ...................................................................................... 7-5
7.3.1 Customer Responsibility and Control .................................................. 7-5
7.3.2 Notification to the Corporation............................................................ 7-5
7.3.3 Program Service Agreement ................................................................ 7-6
7.3.3.1 Before Entering Into a Program Service Agreement ................. 7-7
7.3.4 Disclosure of Standards ....................................................................... 7-8
7.3.5 Customer Point of Contact ................................................................... 7-8
7.3.6 Program Service for an Affiliates Program ......................................... 7-8
7.3.7 Use of the Marks .................................................................................. 7-9
7.3.8 Service Provider Identification on a Card ........................................... 7-9
7.3.9 Program Materials................................................................................. 7-9
7.3.10 Fees ................................................................................................... 7-10
7.3.11 Settlement Account .......................................................................... 7-10
7.3.12 Transfer of Rights Prohibited ........................................................... 7-10
7.3.13 Use of Systems and Confidential Information................................. 7-10
7.3.14 Indemnification ................................................................................ 7-11
7.3.15 No Endorsement by the Corporation .............................................. 7-11
7.3.16 Audits ................................................................................................ 7-12
7.3.17 Settlement Failure Obligation .......................................................... 7-12
7.3.18 Data Security .................................................................................... 7-12
7.4 Merchant Acquiring Programs .................................................................... 7-12
7.4.1 Merchant Agreement .......................................................................... 7-13
7.4.2 Collection of Funds ............................................................................ 7-14
7.4.3 Access to Documentation .................................................................. 7-14
7.4.4 Authority to Terminate Merchant Agreement ................................... 7-14
7-i
Service Providers
7.5 Card Issuing Programs ................................................................................ 7-14

7.5.1 Card Application Approval ................................................................ 7-14
7.5.2 Cardholder Agreement ....................................................................... 7-14
7.5.3 Payment of Fees ................................................................................. 7-15
7.5.4 Program Receivables .......................................................................... 7-15
7.6 Service Provider Registration ...................................................................... 7-15
7.6.1 Registration Requirements for DSEs, ISOs and Type II TPPs .......... 7-15
7.6.1.1 SDP Program Noncompliance .................................................. 7-17
7.6.2 Registration Requirements for Type I TPPs ...................................... 7-17
7.6.3 Registration of a Service Provider Registration Facilitator ................ 7-17
7.6.4 Service Provider Registration Noncompliance .................................. 7-18
7.6.5 Prohibition from Acting as a Service Provider .................................. 7-18
7.6.6 Termination of Program Service Agreement or De-registration...... 7-18
7.7 Type I TPP Evaluation Program ................................................................. 7-18
7.7.1 Compliance with Type I TPP Evaluation Program Standards .......... 7-18
7.8 Confidential Information of Service Providers ........................................... 7-19
7-ii

Service Providers
7.1 Service Provider Categories

As of the date of this publication of the Standards, there are four categories of
Service Providers: Independent Sales Organization (ISO), Third Party Processor
(TPP), Data Storage Entity (DSE), and Service Provider Registration Facilitator
(SPRF).
A Service Provider is categorized by the Corporation based upon the
Corporations understanding of the nature of the Program Service(s) performed
or to be performed, as described below. A Service Provider may only perform
the Program Service(s) it is registered to perform.
Any person proposed by a Customer to perform both TPP Program Service
and DSE Program Service is categorized by the Corporation as a TPP.
A person that performs any one or
more of the following Program
Services
Is categorized as this type of Service

Provider
ISO Program Service:
Independent Sales Organization (ISO)
Merchant and/or Cardholder

Solicitation, including application
processing
Cardholder and/or Merchant customer

service not involving access to Card
data, Transaction data, or both,
including the collection of any fee or
other obligation associated with the
Customers Program
Merchant education and training Any

other service determined by the
Corporation in its sole discretion to be
ISO Program Service

7-1
Service Providers

Services

Provider
TPP Program Service:
Third Party Processor (TPP)
POI terminal operation with electronic

data capture
Authorization services, including but

not limited to authorization routing,
payment gateway and switching
services, voice authorization, and call
referral processing
Clearing file preparation and

submission
Settlement processing (excluding

possession, ownership, or control of
settlement funds, which is not
permitted)
Cardholder and/or Merchant statement

preparation
Cardholder and/or Merchant customer

service involving access to Card data,
Transaction data, or both
Fraud control and risk monitoring,

including but not limited to fraud
screening and fraud scoring services
Chargeback processing
Mobile Remote Payment
Any other services determined by the

Corporation in its sole discretion to be
TPP Program Service
Data Storage Entity (DSE)
DSE Program Service:
7-2
Merchant Web site hosting
External hosting of payment

applications, such as Web site
shopping carts
Any other services involving the

storage, transmission or processing of
Card data, Transaction data or both not
identified by the Corporation as TPP
Program Service

Service Providers

Services

Provider
Service Provider Registration Facilitator

Identification of persons the Standards (SPRF)
obligate a Customer to register as a
Service Provider
SPRF Program Service:
Assisting a Customer to register Service

Providers other than SPRFs
7.1.1 Independent Sales Organization

Any Independent Sales Organization (ISO) is a Service Provider that performs
any one or more of the services described in Rule 7.1 as ISO Program Service.
7.1.2 Third Party Processor

A Third Party Processor (TPP) is a Service Provider that performs any one or
more of the services described in Rule 7.1 as TPP Program Service.
All TPPs must comply with applicable Standards, including these Service
Provider Rules, in order to remain in good standing as a TPP.
TPPs are subcategorized as follows.
7.1.2.1 Type I
The first TPP subcategory is a Type I TPP. The Corporation determines, in its
sole discretion, if a TPP is a Type I TPP. Type 1 TPPs generally are those that
perform Program Service for a large number of Customers or that otherwise
could significantly impact the integrity of the Interchange System.
As a condition of continued Type I TPP registration by the Corporation, a Type
I TPP must comply with the Corporations Type I TPP Evaluation Program
requirements and applicable Standards, including these Service Provider Rules.
Note

7-3
Service Providers
7.2 Program Service
7.1.2.2 Type II
The second TPP subcategory is a Type II TPP. A Type II TPP is any TPP that
the Corporation does not deem to be a Type I TPP. A Type II TPP must
comply with applicable Standards, including these Service Provider Rules.
The Corporation at any time may reclassify a Type II TPP as a Type I TPP.
7.1.3 Data Storage Entity

A Data Storage Entity (DSE) is a Service Provider that performs any one or
more of the services described in Rule 7.1 as DSE Program Service.
7.1.4 Service Provider Registration Facilitator

A Service Provider Registration Facilitator (SPRF) is a Service Provider that
performs Service Provider registration services, which is deemed by the
Corporation to be a Program Service.
7.2 Program Service

Before a person commences to perform Program Service that directly or
indirectly supports or otherwise benefits a Customers Program(s), the
Customer must cause such a person to be registered by the Corporation as a
Service Provider.
A Service Provider may perform only the type of Program Service that it is
registered to perform. A corporate affiliate of a Customer that is Owned and
Controlled by the Customer or by the Customers ultimate parent and which
performs Program Service exclusively for the Customer and not for any other
Customer is deemed not to be a Service Provider.
The Customer must ensure that any person performing Program Service that
directly or indirectly supports or otherwise benefits the Customers Program(s),
and whether or not such person is registered by the Corporation as a Service
Provider:
1. Complies with all Standards applicable to the Program Service provided
(including, by way of example and not limitation, data use and protection,
confidentiality and privacy Standards) for so long as such person performs
such Program Service. This Customer obligation arises and continues
regardless of the nature of the Program Service performed and whether the
person is performing Program Service pursuant to an agreement or other
arrangement with the Customer, a Merchant, a Service Provider of the
Customer, or any other person.
7-4

Service Providers
7.3 General Obligations
2. Promptly provides to the Corporation any information requested by the

Corporation pertaining to the Program Service or the performance thereof.
For the avoidance of doubt: Program Service in support of or otherwise
benefitting an Affiliates Program(s) is deemed to be Program Service in
support of or otherwise benefitting the Program(s) of the Principal or
Association that Sponsors such Affiliate; and Program Service in support of or
otherwise benefitting an affiliate debit Licensees Program(s) is deemed to be
Program Service in support of or otherwise benefitting the Principal Debit
Licensee that Sponsors such affiliate debit Licensee.

Each Service Provider and each Customer that registers a Service Provider must
comply with all of the following.
7.3.1 Customer Responsibility and Control

The Customer must at all times be entirely responsible for and must itself
manage, direct, and control all aspects of its Program and all Program Service
performed by any Service Provider and establish and enforce all Program
management and operating policies applicable to Program Service in
accordance with the Standards. A Customer must not transfer or assign any
part or all of such responsibilities or in any way limit its responsibility with
regard to any of its Service Providers. A Customer must conduct meaningful
monitoring of its Service Providers to ensure ongoing compliance by its Service
Providers with applicable Standards.
7.3.2 Notification to the Corporation
Note
Each Principal or Association must advise the Corporation promptly when any
of its Service Providers ceases to perform Program Service in connection with
the Customers Program(s) or undergoes a change of name or transfer of
Ownership or Control.
Each Type I TPP must advise the Corporation promptly in writing when it:
1. Commences to perform or ceases to perform any Program Service for any
Customer, and on an ongoing basis, inform the Corporation of all ICA
numbers pertaining to which it is performing any Program Service;
7-5
Service Providers
2. Undergoes a change of name or transfer of Ownership or Control;

3. Fails or refuses to make payments in the ordinary course of business;
4. Makes an assignment for the benefit of creditors; or
5. Seeks bankruptcy protection or similar protection.
A Customer may not receive Program Service by or from any other entity or
person except as set forth in the Standards.
7.3.3 Program Service Agreement

This Rule 7.3.3 is not applicable with respect to a Service Provider whose
provision of Program Service to the Customer consists only of DSE Program
Service.
Prior to the commencement of the performance of Program Service by a
person in support of a Customer Program, the Customer and the Service
Provider must enter into a written agreement describing the Program Service to
be performed (the Program Service agreement). The Program Service
agreement must be updated from time to time as appropriate to reflect the
Program Service that the Service Provider performs in support of or otherwise
benefitting, directly or indirectly, the Customer Program(s) and may not
contradict, or be inconsistent with, the Standards.
The Program Service agreement must reflect the Customers responsibility, as
described in this chapter, for establishing all management and operating
policies and must not include any provision that limits, or attempts to limit, the
Customers responsibility for the Program. The Program Service agreement
must, in substance, include all of the following provisions:
1. The Service Provider has received, understands, and agrees to comply with
all applicable Standards, including these Service Provider Rules.
2. On an ongoing basis, the Service Provider is promptly to provide the
Customer with the current address of each of its offices.
3. In the event of any inconsistency between any provision of the Program
Service agreement and the Standards, the Standards will govern.
4. The Program Service agreement automatically and immediately terminates
if the Corporation de-registers the Service Provider or if the Customer
ceases to be a Customer for any reason or if the Customer fails to have a
valid License by the Corporation to use any Mark pertaining to the
Program Service to be performed by the Service Provider.
5. The Service Provider acknowledges and agrees
a. to comply with all Standards, as amended from time to time, applicable
to the Program Service to be provided;
7-6

Service Providers
b. that the Corporation is the sole and exclusive owner of the Marks;
c. not to contest the ownership of the Marks for any reason;
d. the Corporation may at any time, immediately and without advance
notice, prohibit the Service Provider from using any of the Marks for
any reason;
e. the Corporation has the right to enforce any provision of the Standards
and to prohibit a Service Provider from engaging in any conduct the
Corporation deems could injure or could create a risk of injury to the
Corporation, including injury to reputation, or that could adversely
affect the integrity of the Interchange System, the Corporations
Confidential Information as defined in the Standards, or both; and
f.
the Service Provider will not take any action that could interfere with
or prevent the exercise of this right by the Corporation.
7.3.3.1 Before Entering Into a Program Service Agreement

Before entering into, extending, or renewing a Program Service agreement, a
Customer must verify that the Service Provider is a bona fide business, has
sufficient safeguards in place to protect Card and Transaction data permitted
by the Standards to be captured from unauthorized disclosure or use, and
complies with applicable laws.
In determining whether the Service Provider is a bona fide business, the
Customer must verify, at a minimum, that all of the following have been
completed:
1. Credit check, background investigations, and reference checks of the
Service Provider. If the credit check of the Service Provider raises
questions or does not provide sufficient information, the Customer also
should conduct a credit check of:
a. the owner, if the Service Provider is a sole proprietor
b. the partners, if the Service Provider is a partnership
c. the principal shareholders that together own or control Service Provider
if the Service Provider is a corporation
2. Inspection of the Service Providers premises and records to ensure that the
Service Provider has the proper facilities, equipment, inventory,
agreements, and personnel required and if necessary, the appropriate
license or permit and other capabilities to conduct business. If the Service
Provider conducts or plans to conduct business in more than one set of
premises, the Customer must inspect at least one of them.

7-7
Service Providers
The Corporation does not require a Customer to conduct a credit check of a

public or private company that has annual sales revenue in excess of USD 50
million (or the foreign currency equivalent), provided that the Customer
reviews, and finds satisfactory for the purposes of the Program Services being
considered, the Service Providers most recent annual report, including audited
financial statements. A private company that does not have a recent audited
financial statement is subject to a credit check and inspection even if its annual
revenue exceeds USD 50 million.
The Customer must retain all records concerning the investigation of any
Service Provider with which it has entered into a Program Service agreement to
receive Program Services for a minimum of two years after the date the
agreement is terminated or expires.
7.3.4 Disclosure of Standards

Before a Customer proposes a person to be registered as a Service Provider by
the Corporation, the Customer must provide the proposed Service Provider
with the Standards then in effect applicable to Service Provider and Program
Service the proposed Service Provider is expected to perform, including these
Service Provider Rules. After registration, the Customer must promptly provide
a Service Provider with any change to the Standards applicable to such
Program Service, including any change to these Service Provider Rules.
7.3.5 Customer Point of Contact

A Service Provider must promptly provide a name and title of, and a telephone
number for an employee of the Customer upon request by a Cardholder or a
Merchant, or if the Service Provider is unable or unwilling to respond to a
question to the Cardholders or Merchants satisfaction.
7.3.6 Program Service for an Affiliates Program

Program Service performed in support of an Affiliates Program(s) is deemed to
be performed in support of the Program(s) of the Principal and Association
that Sponsors the Affiliate. For that reason, an Affiliate wishing to receive
Program Service from a Service Provider must obtain the prior written consent
of the Affiliates Sponsoring Principal and Association.
7-8

Service Providers
7.3.7 Use of the Marks

A Service Provider must not use any Mark on its own behalf, whether in
connection with Program Service or otherwise. A Service Provider may not
suggest or in any manner create an impression that the Service Provider is a
Customer or a representative of the Corporation, or that the Service Provider is
anything other than a Service Provider of the Customer.
The Service Provider must not create an impression that the Corporation in any
way endorses the Service Provider or Program Service the Service Provider
performs.
The Service Provider may use one or more of the Marks in connection with the
Program Service it performs, provided that:
1. The Marks are used in accordance with the Standards, including all
reproduction, usage and artwork Standards that may be in effect from time
to time; and
2. The Marks are used according to the express written instructions of the
Customer; and
3. The Marks are used solely in connection with the provision of Program
Service.
The Service Provider may use the Marks on its stationery, letterhead, or
business cards only if accompanied, in close proximity, by a clear statement
that identifies the Service Provider as an agent for a Customer and that
includes the name by which the Customer identifies itself to the public (for
example, Service Provider is an authorized representative of Bank XYZ).
7.3.8 Service Provider Identification on a Card

The name of a non-Customer Service Provider may appear on a Card only if
that Service Provider does not provide acquiring Program Service for or in
connection with any Customer Program or Activity.
7.3.9 Program Materials

A Customer must approve all Program documents and other materials before
any distribution, disclosure, or other use thereof by a Service Provider. The
Program materials may not state or imply that the Service Provider is
participating in, or conducting any activity not expressly permitted by the
Standards. Program materials include, by way of example, Merchant
applications, Card applications, Merchant Agreements, Cardholder agreements,
Merchant statements, Cardholder statements, marketing materials, and
Cardholder Communications, including Solicitations.

7-9
Service Providers
7.3.10 Fees
A Customer must approve, in advance, any fee or other obligation associated
with the Customers Program and a Service Provider may not collect or attempt
to collect any such fee or obligation without the express prior written approval
of the Customer. Any fee must be clearly and conspicuously disclosed in
writing to the Merchant or Card applicant, as appropriate, prior to any request
or demand for payment of the fee.
7.3.11 Settlement Account

A Service Provider must not have access to any account for funds then or
subsequently due to a Merchant for Activity and/or funds withheld from a
Merchant for chargebacks arising out of Activity. A Customer must not assign
or otherwise transfer an obligation to pay or reimburse a Merchant to a Service
Provider if the obligation arises from Activity.
7.3.12 Transfer of Rights Prohibited

A Service Provider must not subcontract, sublicense, assign, license, franchise,
or in any other manner extend or transfer to any third party any right or
obligation the Service Provider may have in connection with performing
Program Service for a Customer, and any such transfer is null and void ab
initio. A Service Provider may perform Program Service to a Customer only
using the Service Providers own employees or employees of a different
Service Provider that is confirmed also to be registered by the Corporation to
provide Program Service for that same Customer.
7.3.13 Use of Systems and Confidential Information

A Service Provider performing Program Service and each Service Provider
Registration Facilitator must agree to:
1. Use any of the Corporations equipment and software (Systems),
including but not limited to any MasterCard Interface Processor (MIP) or
Network Interface Processor (NIU) used to connect to the Interchange
System, and any of the Corporations information identified or reasonably
understood to be confidential or proprietary (Corporations Confidential
Information) solely in order to perform Program Service on behalf of the
Customer and not for any other purpose;
2. Treat the Systems and Corporations Confidential Information in at least as
careful and confidential a manner as the Service Provider treats its own and
the Customers systems and proprietary information;
7-10

Service Providers
3. Acknowledge that access to the Systems and Corporations Confidential

Information does not provide the Service Provider with any right, title,
interest, or copyright therein or any license to use, sell, exploit, copy or
develop them further;
4. Limit access to the Systems and Corporations Confidential Information to
those Service Provider employees with a need to have access or to know
in order to enable the Service Provider to perform Program Service and to
implement and to maintain reasonable and appropriate safeguards to
prevent unauthorized access to the Systems or disclosure of Corporations
Confidential Information, including those set forth in section 10.6 of the
Security Rules and Procedures manual;
5. Immediately cease any and all use of the Systems and Corporations
Confidential Information upon request of the Corporation or the Customer
or upon the earlier of the termination or completion of the Service
Providers performance of Program Service, and to immediately deliver all
Systems and all Corporations Confidential Information to the Corporation;
6. Immediately advise the Customer and the Corporation if any unauthorized
person seeks to gain or gains access to the Systems or Corporations
Confidential Information, whether by legal proceedings or otherwise.
The obligations set forth in this Rule survive the termination or expiration of
the Program Service agreement.
7.3.14 Indemnification
Program Service performed by any person or entity, which Program Service
directly or indirectly supports or otherwise benefits a Customers Program(s),
and regardless of whether such third party is or was registered with the
Corporation as a Service Provider or whether such third party is itself a
Customer, is Activity and thereby subjects the Customer to the indemnification
and other obligations set forth in Rule 3.3.
7.3.15 No Endorsement by the Corporation

In no event does compliance with these Service Provider Rules or enforcement
or any lack of or delay in enforcement thereof or the registration of a Service
Provider imply, suggest or otherwise mean that the Corporation endorses any
Service Provider or the nature or quality of Program Service or other
performance, or that the Corporation approves of, is a party to, or a participant
in, any act or omission by a Service Provider or other entity acting for or on
behalf of a Customer.

7-11
Service Providers
7.4 Merchant Acquiring Programs
7.3.16 Audits
The Corporation or its designee may conduct one or more or regular or
periodic financial and procedural audits of the Customer, its Service
Provider(s), or both, at any time and from time to time for the purpose of
determining compliance with the Standards, including these Service Provider
Rules. The Customer bears all costs of any such audit or audits. The
Customer and its Service Provider(s) each must fully cooperate with and
promptly supply the Corporation with all information and material upon
request.
7.3.17 Settlement Failure Obligation

A Service Provider that becomes aware of a settlement failure by the
Customer(s) for which the Service Provider performs Program Service must
promptly, and in no event later than 24 hours after becoming aware of such
failure, notify the Corporation in writing of such failure.
7.3.18 Data Security

A Service Provider must comply with all Standards and applicable laws and
regulations pertaining to the storage and/or safeguarding and/or transmission
of Card and Transaction data. If a Service Provider reasonably believes that an
unauthorized person accessed or may have accessed Card account,
Cardholder, or Transaction information in the possession or control of the
Service Provider or any of the Service Providers DSEs, the Service Provider
must promptly notify the Customer(s) for which it provides Program Service in
writing of such belief and the Customer must promptly notify the Corporation
in writing of such belief.
A Service Provider must promptly submit in writing to the Corporation and to
each Customer for which the Service Provider is registered to provide Program
Service the identity of any DSE that engages, or proposes to engage, in the
processing, transmission, or storage of Card account data, Transaction data, or
both, for or on behalf of the Service Provider, whether directly or indirectly,
regardless of the manner or duration of such activities.

In addition to complying with the general obligations set forth in Rule 7.3,
each Customer and each Service Provider that performs Program Service with
respect to that Customers Merchant acquiring Programs also must comply with
this Rule 7.4.
7-12

Service Providers
7.4.1 Merchant Agreement

The Merchant Agreement establishing the terms of an acquiring relationship
between the Acquirer and a Merchant must:
1. Be signed by the Customer with no separate or other agreement between
the Service Provider and the Merchant regarding Activity. The Service
Provider may be a party to the Merchant Agreement, in which case the
Merchant Agreement must contain the substance of all of the following:
a. For purposes of the Merchant Agreement and performance of the
Merchant Agreement by the Service Provider, (i) the Service Provider is
the exclusive agent of the Customer; (ii) the Customer is at all times
and entirely responsible for, and in control of, Service Provider
performance; and (iii) the Customer must approve, in advance, any fee
payable to or obligation of the Merchant arising from or related to
performance of the Merchant Agreement.
b. The Merchant Agreement is not effective and may not be modified in
any respect without the express written agreement of the Customer.
c. The Service Provider may not have access, directly or indirectly, to any
account for funds or funds due to a Merchant and/or funds withheld
from a Merchant for chargebacks arising from, or related to,
performance of this Merchant Agreement. The Customer may not
assign or otherwise transfer an obligation to pay or reimburse a
Merchant arising from, or related to, performance of the Merchant
Agreement to a Service Provider.
d. The Service Provider may not subcontract, sublicense, assign, license,
franchise, or in any manner extend or transfer to any third party, any
right or obligation of the Service Provider set forth in the Merchant
Agreement. The Customer may not waive, forgive, release, assign, or
fail to insist on strict performance of each requirement set forth in these
parts 1 through 4.
2. Confirm the Customers responsibility for the Program and for the
Merchants Program participation and confirm that the Merchant Agreement
does not contain any provision that could be deemed to limit such
responsibility.
3. Not take effect or state or imply that it takes or has taken effect prior to
being signed by the Customer.
4. Disclose the Customers name and sufficient information to enable the
Merchant to contact the Customer directly by telephone or in writing.

7-13
Service Providers
7.5 Card Issuing Programs
7.4.2 Collection of Funds

Discount rates (or similar charges called by other terms) due to a Customer
from a Merchant must be collected directly by the Customer and not by the
Service Provider.
7.4.3 Access to Documentation

The Customer at all times must maintain prompt and unrestricted physical
access to all original, executed Merchant Agreements and completed
inspection reports. The Customer must forward true and complete copies of
any one or more of these documents to the Corporation promptly upon
request.
7.4.4 Authority to Terminate Merchant Agreement

A Customer may not limit or in any manner condition its authority to terminate
any Merchant Agreement to accommodate a Service Provider or otherwise.
7.5 Card Issuing Programs

In addition to complying with the General Obligations set forth in Rule 7.3,
each Customer and each Service Provider that provides Program Service with
respect to that Customers Card issuing Programs also must comply with this
Rule 7.5.
7.5.1 Card Application Approval

The Customer itself, and not a Service Provider, must approve of a Card
applicants participation in a Card Program.
7.5.2 Cardholder Agreement

The Cardholder agreement must disclose the Customers name and sufficient
information to enable the Cardholder to contact the Customer directly by
telephone or in writing. The Service Provider must not be a party to the
Cardholder agreement.
7-14

Service Providers
7.6 Service Provider Registration
7.5.3 Payment of Fees

All Program payments other than application fees for initial Program
participants must be collected directly by the Customer and not by the Service
Provider.
7.5.4 Program Receivables

A Service Provider may own Program receivables or participate in a financing
vehicle involving Program receivables so long as the Corporation determines
that the Customer continues to own and control the Program. Ownership of
Program receivables by the Service Provider does not in any way limit the
Customers obligation to comply with the Standards.

The following sets forth Service Provider registration requirement.
7.6.1 Registration Requirements for DSEs, ISOs and Type II

TPPs
Each Principal and Association, for itself and each of its Sponsored Affiliates,
must use the MasterCard Registration Program (MRP) system on MasterCard
OnLine to register any Service Provider not designated by the Corporation as a
Type I TPP. A Customer may elect to register a person as an SPRF for the
purpose of having that SPRF perform Service Provider registration
requirements for DSE, ISO and Type II TPP Service Providers on the
Customers behalf. The following requirements apply:
1. The Principal and Association must submit all information and material
required by the Corporation in connection with the proposed registration
within 60 days of the registration application submission date.
2. A Service Provider performing TPP Program Service that also wishes to
provide ISO Program Service to one or more Customers must be distinctly
proposed for registration by the Corporation on behalf of each Customer
wishing to receive ISO Program Service from that Service Provider.

7-15
Service Providers
3. A Service Provider that performs services involving the storage,

transmission, or processing of Card, Cardholder, or Transaction data must
comply with the MasterCard Site Data Protection (SDP) Program in
accordance with the implementation schedule set forth in section 10.3.4 of
the Security Rules and Procedures manual. Before initiating registration,
the Customer must instruct the proposed Service Provider to contact the
Corporation via e-mail at [email protected] and validate its compliance
with the SDP Program using the tools described in section 10.3.2 of the
Security Rules and Procedures manual. For any proposed Type II TPP that
is not compliant, the Corporation must be provided and must approve a
compliance action plan. A Corporation-approved compliance action plan
does not exempt the Principal and Association from responsibility and
liability that arises from the Principal and Associations or any of its
Sponsored Affiliates or their Type II TPPs noncompliance with any
Standard, including those relating to the disclosure and securing of Card,
Cardholder, and Transaction data. The registration of a proposed DSE will
not be deemed complete until its compliance is validated.
4. The Corporation collects the applicable fee(s) then in effect from the
Customer that proposes the registration via the MasterCard Consolidated
Billing System (MCBS).
5. The Principal and Association must receive the Corporations written or email confirmation of the registration before the Principal and Association or
any of its Sponsored Affiliates receives Program Service from an ISO or
Type II TPP or any of their Service Providers or Merchants receive Program
Service from a DSE and before the ISO or Type II TPP commences
performing such Program Service or represents itself to any person as
authorized to provide such Program Service on behalf of the Principal and
Association or any of its Sponsored Affiliates. In its sole discretion, the
Corporation may approve or may reject any application for the registration
of a Service Provider.
6. To maintain the registration of a Service Provider, the Customer must
submit such information and material as may be required by the
Corporation from time to time, including but not limited to a copy of the
Program Service Agreement, if applicable. The renewal fee then in effect
is debited from the Customer via MCBS. In its sole discretion, the
Corporation may decline to renew the registration of a Service Provider.
If the Customer terminates an ISO or Type II TPP, the Customer must notify
the Corporation or its SPRF of the termination date and of the reasons for the
termination. This notification must be received by the Corporation or its SPRF
within one week of the decision to terminate. In its sole discretion, the
Corporation may require a Customer to terminate a Service Provider at any
time.
7-16

Service Providers
7.6.1.1 SDP Program Noncompliance

Each Principal and Association that has registered or proposed the registration
of a Type II TPP to provide Program Service for it and/or for one or more of
its Sponsored Affiliates must promptly notify each of its Merchants and other
person that directly or indirectly may benefit from or otherwise be impacted,
as the case may be, by the Program Service if the registered or proposed TPP
is not or will not be fully compliant with SDP Program requirements applicable
to it as a TPP by and after the date performance of the Program Service
commences. Such notification must include, with respect to the registered or
proposed TPP:
1. The name and address of the TPP;
2. A description of the Program Service to be or being provided by the TPP;
3. A description of SDP Program requirements the TPP is not compliant with;
and
4. A specific date by which the TPP will become fully compliant with
applicable SDP Program requirements, or, in the alternative, the date by
which the TPP will cease providing Program Service.
The application of a DSE will not be approved until such time as the DSE
becomes fully compliant with SDP Program requirements.
7.6.2 Registration Requirements for Type I TPPs

A TPP that the Corporation designates as a Type I TPP, upon receiving
notification of such designation, must apply to be registered by the
Corporation as a Type I TPP and must be registered by the Corporation as a
Type I TPP before commencing to provide TPP Program Service. A Type I
TPP that also wishes to provide ISO Program Service to one or more
Customers must be distinctly proposed to the Corporation or a Service
Provider Registration Facilitator for registration by each Customer wishing to
receive ISO Program Service from that Type I TPP.
Post-registration by the Corporation of a Type I TPP, on a quarterly basis, the
applicable fee is charged by the Corporation directly to the Type I TPP.
Renewal of Type I TPP registration status is at the sole discretion of the
Corporation.
7.6.3 Registration of a Service Provider Registration Facilitator

A Customer itself must request that a person be registered by the Corporation
as a Service Provider Registration Facilitator (SPRF) and a person must be
registered by the Corporation as an SPRF before commencing to provide
Service Provider registration Program Service.
7-17
Service Providers
7.7 Type I TPP Evaluation Program
7.6.4 Service Provider Registration Noncompliance

A Principal and Association that fails to comply with these Service Provider
registration requirements, including the failure to complete a Service Provider
registration within 60 days as set forth in Rule 7.6.1, is subject to
noncompliance assessments of up to USD 25,000 for each 30-day period of
noncompliance.
7.6.5 Prohibition from Acting as a Service Provider

The Corporation reserves the right to prohibit, either for a fixed period of time
or permanently, a Service Provider, its owners, officers, and/or employees
from performing Program Service or acting as a DSE or both.
7.6.6 Termination of Program Service Agreement or

De-registration
On the effective date of the termination or expiration of the Program Service
agreement(s), or upon notice by the Corporation, or upon expiration or deregistration of a person as a Service Provider, the person must immediately
cease all use of the Corporations Marks and Systems as a Service Provider and
cease performing Program Service.
7.7 Type I TPP Evaluation Program

7.7.1 Compliance with Type I TPP Evaluation Program
Standards
Each Type I TPP is required to comply with the Type I TPP Evaluation
Program requirements and fully cooperate with any effort by the Corporation
to determine such compliance. The Corporation requires all Type I TPPs to
participate fully in each such review.
7-18

Service Providers
7.8 Confidential Information of Service Providers
7.8 Confidential Information of Service Providers

The Corporation will not disclose confidential information furnished to it by a
Customer or Service Provider pursuant to these Service Provider Rules, except
to the Customer or Service Provider supplying the information, or as part of a
general statistical compilation that does not reveal individual Customer or
Service Provider data, or as may be required by any court process or
governmental agency having or asserting jurisdiction over the Corporation, or
as otherwise described in Rule 3.6.2.
The registration and Type I TPP Evaluation Program compliance status of a
Type I TPP, including the identity of the Customer(s) for which the Type I TPP
performs Program Service, the nature of Program Service the Type I TPP
performs, and the results of any Type I TPP evaluation are not confidential
information.
The identities of a Service Provider Registration Facilitator and the Customer(s)
for which the Service Provider Registration Facilitator performs registration
services are not confidential information.
In addition, and notwithstanding the aforesaid, as a condition of the
registration or renewal of registration of a Service Provider, the Customer and
Service Provider each agree that the Corporation may disclose such
information of and about the Customer and Service Provider as the
Corporation deems necessary or appropriate.
Compliance Zones
Rule Number
Rule Title
Category
7.1
Service Provider Categories
7.2
Program Service
7.3.1
Customer Responsibility and Control
7.3.2
Notification to the Corporation
7.3.3
Program Service Agreement
7.3.4
Disclosure of Standards
7.3.5
Customer Point of Contact
7.3.6
Program Service for an Affiliates Program

7-19
Service Providers
Compliance Zones
Rule Number
Rule Title
Category
7.3.7
Use of the Marks
7.3.8
Service Provider Identification on a Card
7.3.9
Program Materials
7.3.10
Fees
7.3.11
Settlement Account
7.3.12
Transfer of Rights Prohibited
7.3.13
Use of the Systems and Confidential Information
7.3.16
Audits
7.3.17
Settlement Failure Obligation
7.3.18
Data Security
7.4.1
Merchant Agreement
7.4.2
Collection of Funds
7.4.3
Access to Documentation
7.4.4
Authority to Terminate Merchant Agreement
7.5.1
Card Application Approval
7.5.2
Cardholder Agreement
7.5.3
Payment of Fees
7.5.4
Program Receivables
7.6
Service Provider Registration
7.7.1
Compliance with Type I TPP Evaluation Program Standards
7-20


This chapter contains Rules that apply to the cash disbursements that
Customers provide.
8.1 Transaction Requirements ............................................................................. 8-1

8.1.1 Euro Migration...................................................................................... 8-2
8.2 Authorization Requirements ......................................................................... 8-2
8.2.1 Full and Partial Reversals ..................................................................... 8-2
8.2.1.1 Reversal for Conversion of Approval to Decline ....................... 8-3
8.2.2 Full and Partial Approvals and Account Balance Responses ............. 8-3
8.3 Card Acceptance Procedures ........................................................................ 8-4
8.3.1 Card Must be Present ........................................................................... 8-5
8.3.2 Determine Whether the Card is Valid ................................................. 8-5
8.3.2.1 Unsigned Cards ........................................................................... 8-6
8.3.2.2 Suspicious Cards ......................................................................... 8-6
8.3.3 Obtaining an Authorization ................................................................. 8-7
8.3.3.1 When to Obtain an Authorization .............................................. 8-7
8.3.3.2 Chip Transactions........................................................................ 8-8
8.3.3.3 Lodging, Cruise Line, and Vehicle Rental Transactions ............ 8-8
8.3.3.4 Adding a Gratuity ........................................................................ 8-9
8.3.4 Suspicious Transactions and Pick-up-card Response ....................... 8-10
8.3.5 Completing the Transaction............................................................... 8-10
8.3.5.1 TID Information Requirements................................................. 8-11
8.3.5.2 Prohibited Information.............................................................. 8-12
8.3.5.3 Cardholder Verification Method (CVM) ................................... 8-12
8.3.5.4 Give the Cardholder a Copy of the Receipt ............................ 8-13
8.3.6 Multiple TIDs and Partial Payment.................................................... 8-13
8.3.7 Specific Terms of a Transaction ........................................................ 8-14
8.3.7.1 Returned Products and Canceled Services ............................... 8-14
8.3.8 Charges for Loss, Theft, or Damage .................................................. 8-15
8.4.1.1 Hybrid POS Terminal Display Requirements........................... 8-16
Fixed Location....................................................................................... 8-16
8.4.1.3 CVM Fallback ............................................................................ 8-17
8.4.1.4 CVM Failure ............................................................................... 8-18
8-i
8.4.1.5 Technical Fallback .................................................................... 8-18

8.4.2 Card-Not-Present Transactions .......................................................... 8-18
8.4.2.1 E-commerce Transactions ......................................................... 8-18
8.4.2.2 Recurring Payment Transactions .............................................. 8-19
8.4.3 MasterCard PayPass Transactions ...................................................... 8-19
8.4.3.1 Processing MasterCard PayPass Transit Transactions.............. 8-20
8.4.3.1.1 Pre-funded........................................................................ 8-20
8.4.3.1.2 Real-time Authorized ....................................................... 8-20
8.4.3.1.3 Post-authorized Aggregated ............................................ 8-20
8.4.3.2 PayPass-only Acceptance ......................................................... 8-21
Authorization Limit Amounts................................................................ 8-22
8.4.4 Quick Payment Service (QPS) Program ............................................ 8-23
8.4.5 Purchase with Cash Back Transactions ............................................. 8-24
8.4.6 Unique Transactions .......................................................................... 8-25
8.4.7 Cardholder-Activated Terminal Requirements .................................. 8-25
8.4.9 Payment Transactions ........................................................................ 8-26
8.4.9.1 Gaming Payment Transactions ................................................. 8-27
8.4.10 MoneySend Payment Transactions .................................................. 8-27
8.4.10.1 MoneySend Payment Transaction Requirements ................... 8-28
8.4.11 Mobile Remote Payments ................................................................ 8-30
8.4.11.1 Mobile Remote Payments Program Requirements ................. 8-31
8.4.11.2 Mobile Remote Payment Transaction Requirements ............. 8-31
8.4.12 PIN-based Debit Transactions.......................................................... 8-32
8.4.13 Refund Transactions ......................................................................... 8-32
8.5 Requirements for Specific Merchant Categories......................................... 8-32
8.6 POI Currency Conversion ........................................................................... 8-33
8.7 Chargebacks for Reissued Cards................................................................. 8-34
8.8 Use of Automatic Billing Updater ............................................................... 8-34
8.9 Cash
8.9.1
8.9.2
8.9.3
8.9.4
Disbursements .................................................................................... 8-34

Nondiscrimination .............................................................................. 8-35
Maximum Cash Disbursement Amounts ........................................... 8-35
Discount or Service Charges .............................................................. 8-36
MasterCard Acceptance Mark Must Be Displayed ............................ 8-36
8-ii



Each Customer must, in accordance with the Standards, comply with each of
the following five requirements:
1. Accept and present to the Issuer records of Transactions arising from the
use of a Card issued by any other Customer from any Merchant that the
Customer has authorized to honor Cards;
2. Accept and pay for records of Transactions received from another
Customer arising from the use of any Card or Access Device issued by it;
3. Present to the Issuer records of the cash disbursement transactions the
Customer acquires; and
4. Maintain, directly or indirectly, a functional twenty-four-hour per day
operating connection to the Interchange System, and not force any other
Customer wishing to operate multilaterally using the Interchange System
into bilateral agreements.
5. Ensure that each Cross-border Transaction (that is, one that takes place at a
Merchant located outside the country where the Card was issued) is
processed through the Interchange System, unless one of the following
conditions exist:
a. The Customer has applied for and received prior written approval from
the Corporation to effect other arrangements;
b. The Customer has applied for and received certification from the
Corporation with the network processing standards for any bilateral or
multilateral arrangement entered into on or after 1 June 2009; or
c. Applicable law requires other arrangements, and only to the extent
otherwise so required.
As used in paragraph 5 above, processed means authorized, when required,
and cleared through the Interchange System.
If a Cross-border Transaction is not processed through the Interchange System
and meets one of the conditions contained in requirement five, parts (a)
through (c) above, Customers shall also provide the Corporation with a report
with respect to such Cross-border Transactions in a form as required by the
Corporation on a time frame as prescribed by the Corporation. Such report and
all information contained therein shall be subject to Rule 3.6.2.
Note
A variation to this Rule provision appears in Chapter 12b, SEPA Rules.

8-1

In the event that any Customer is a party to a bilateral or multilateral

arrangement established before 1 June 2009 and such Customer has not
applied for and received prior written approval from the Corporation to effect
such arrangement, then such Customer must:
1. Register such bilateral or multilateral arrangement with the Corporation no
later than 31 August 2009 and provide such other information as the
Corporation may request in connection with an evaluation of the relevant
arrangement against the network processing standards specified by the
Corporation from time to time.
2. If such arrangement fails to meet or exceed such network processing
standards, work with the Corporation in a good faith and timely manner to
make such adjustments as may be required in order to achieve compliance.
Note

The authorization services provided by Principals and Associations as set forth
in Rule 3.8 must comply with the following requirements.

Effective for Transactions occurring on or after 8 November 2011, an Issuer
receiving a Reversal Request/0400 message or an Acquirer Reversal
Advice/0420 message must release any hold placed on the Cardholders
account for the amount specified within 60 minutes of matching the reversal
message to the original authorization request message.
A reversal message sent for the full Transaction amount cancels the original
authorization request.
8-2
Note


8.2.1.1 Reversal for Conversion of Approval to Decline

Effective for Transactions occurring on or after 8 November 2011, an Acquirer
or Merchant may convert an approval authorization request response (herein,
an Issuer-approved authorization) into a decline for a Card-Not-Present
(CNP) Transaction believed, in good faith, by the Acquirer or Merchant to be
fraudulent solely in accordance with the following procedure:
1. The Acquirer or Merchant must determine whether to proceed with a
Transaction believed, in good faith, to be fraudulent within 72 hours of
sending the original authorization request message.
2. Upon deciding not to proceed with the Transaction and still within 72
hours of the original authorization request, the Acquirer or Merchant must:
a. Generate a reversal message for the full transaction amount that
includes a reason code indicating that the Transaction was declined by
the Acquirer or the Merchant due to perceived fraud;
b. Disclose to the Cardholder that the transaction cannot be completed at
that time, and provide the Cardholder with valid customer service
contact information (phone number or e-mail address) to respond to
Cardholder calls or e-mail messages related to the cancelled order. The
contact information should be that of the Acquirer, Merchant, or third
party provider that made the decision not to proceed with the
Transaction. Sharing the specific reason(s) for the decline is not
recommended or required.
The fraud potential of a Transaction typically is determined through fraud
screening and fraud scoring services that involve the storage, transmission or
processing of Card or Transaction data in compliance with the Payment Card
Industry Data Security Standard (PCI DSS). The Acquirer must register any
third party provider of such services as a Third Party Processor (TPP) as set
forth in Rule 7.6.1. The systematic decline by an Acquirer or Merchant of CNP
Transactions arising from particular Cards, Issuers, or geographic locations is a
violation of Rule 5.8.1.
8.2.2 Full and Partial Approvals and Account Balance

Responses
Effective in 2020 with Release 20.1, Customers must provide partial approval
and account balance response authorization services as set forth below:
1. Issuers must support:
a. Partial approval for all prepaid MasterCard and all Debit MasterCard
(including prepaid) Card account ranges; and
b. Account balance response for all prepaid MasterCard and all prepaid
Debit MasterCard Card account ranges.
8-3

8.3 Card Acceptance Procedures
2. Acquirers must support:

a. For Merchants properly identified with MCC 5542, partial approval for
all prepaid MasterCard and all Debit MasterCard (including prepaid)
Card account ranges; and
b. For Merchants properly identified with any of the MCCs listed below,
with respect to Card-present Transactions conducted at attended POS
Terminals, partial approval and account balance response for all
prepaid MasterCard and all Debit MasterCard (including prepaid) Card
account ranges.
Note
MCC
Description
5310
Discount Stores
5311
Department Stores
5411
Grocery Stores, Supermarkets
5541
Service Stations (with or without Ancillary Services)
5612
Womens Ready to Wear Stores
5691
Mens and Womens Clothing Stores
5732
Electronic Sales
5812
Eating Places, Restaurants
5814
Fast Food Restaurants
5912
Drug Stores, Pharmacies
5999
Miscellaneous and Specialty Retail Stores
Additions to this Rule appear in Chapter 12, Europe Region Rules and Chapter

This Rule 8.3 sets forth requirements for Card acceptance and the authorization
and completion of Transactions performed by Merchants and of cash
disbursements performed by a Customers teller or other authorized agent
(herein collectively referred to as cash disbursement agents).
8-4


8.3.1 Card Must be Present

A Card, Access Device, or Mobile Payment Device must be presented to the
Merchant or cash disbursement agent for all Transactions except in the case of
mail order Transactions, phone order Transactions, nonface-to-face unique
Transactions, non-face-to-face Payment Transactions, e-commerce
Transactions, and recurring payment Transactions.
If a Card is presented to a Merchant and the magnetic stripe cannot be read by
the POS Terminal, the Merchant should complete the Transaction by using a
manual imprinter (unless the Card is unembossed) and/or electronic key entry
of the Card information.
If a chip Card is presented at a hybrid POS Terminal, the Transaction must be
completed in accordance with the Rule 8.4.1 and Standards set forth in the
M/Chip Requirements manual.
8.3.2 Determine Whether the Card is Valid

When a Card is presented at an attended POS Terminal or to a cash
disbursement agent, the Merchant or cash disbursement agent must complete
the following steps to determine the validity of the Card:
1. Check the valid date and the expiration date on the front of the Card. If the
Card is expired or not yet valid, obtain an authorization from the Issuer.
Expiration and valid dates are each expressed as follows:
a. When an expiration date is expressed in a month/year format,
Transactions are valid through and including the last day of the month
and year.
b. When a valid date is expressed in a month/year format, Transactions
that occur before the first day of the month and year are invalid.
c. When a valid date is expressed in a month/day/year format,
Transactions that occur before the day, month, and year are invalid.
2. Compare the first four digits of the Card account number on the Card front
with the four digits printed below the Card account number, to ensure the
same digits appear in the same sequence.
3. Compare the four-digit truncated Card account number imprinted in the
signature panel with the last four digits of the account number on the front
of the Card.
4. Unless a hybrid POS Terminal is used, compare the Card account number
on the Card front with the number displayed or printed from the POI
Terminal.
5. If a photograph of the Cardholder is present on the Card, compare the
photograph on the Card with the person presenting the Card.
8-5

6. Check that the Card is signed.

7. For cash disbursements and face-to-face unique Transactions (with the
exception of truck stop Transactions and Card-read Transactions where a
non-signature CVM is used), request personal identification of the
Cardholder in the form of an unexpired, official government document (for
example, a passport, identification document, or drivers license) that bears
the Cardholders signature, the Cardholders photograph, or both. Compare
the signature, if present, on the personal identification with the signature
on the Card. Compare the photograph, if present, with the person
presenting the Card.
The Cardholder may retain control of the Card during a chip Transaction
performed with PIN as the CVM.
Neither the foregoing procedures nor those described in Rules 8.3.2.1 or
8.3.2.2 apply when an Access Device or a Mobile Payment Device is
presented.
8.3.2.1 Unsigned Cards

If a Card is presented to a Merchant and the Card is not signed, the Merchant
must:
1. Obtain an authorization from the Issuer;
2. Ask the Cardholder to provide identification (but not record the Cardholder
identification information); and
3. Require the Cardholder to sign the Card.
The Merchant must not complete the Transaction if the Cardholder refuses to
sign the Card.
8.3.2.2 Suspicious Cards

If a Card is presented and the Merchant believes that there is a discrepancy in
the signature, or if the last four digits of the account number on the front of
the Card do not match the four-digit truncated account number on the
signature panel or displayed on the POS Terminal, or if the photographic
identification is uncertain, the Merchant must contact its Acquirer for
instructions.
If any unexpired Card does not have a MasterCard or Debit MasterCard
hologram, as applicable, or MasterCard HoloMag, the Merchant must pick up
the Card and contact its Acquirers Code Ten operator to advise it of the pickup and to receive mailing instructions.
8-6



With respect to securing authorizations of Transactions, an Acquirer must treat
all Transactions at a Merchant location in the same manner.
If a Card is presented in a face-to-face Transaction, the Merchant must use its
best efforts, by reasonable and peaceful means, to retain the Card while
making an authorization request. This requirement does not apply when an
Access Device or Mobile Payment Device is presented.

The Merchant must obtain an online or voice authorization from the Issuer for:
1. All non-face-to-face Transactions, regardless of the Transaction amount.
2. All face-to-face Transactions, Card-read or key-entered, occurring at
locations with a POS Terminal that has both online and magnetic striperead capability, regardless of the Transaction amount, including:
a. MasterCard PayPass magnetic stripe Transactions.
b. Chip Transactions when required by the Card or the POS Terminal,
including MasterCard PayPass M/Chip Transactions.
c. Purchase with cash back Transactions, for the full Transaction amount
inclusive of DE 4 (Amount, Transaction) and DE 54 (Additional
Amounts).
Note
An addition to this Rule appears in Chapter 12, Europe Region Rules.
3. Any other Transaction for which any of the following conditions apply:
a. The Transaction amount exceeds the published floor limit applicable to
the Merchant.
b. The Card is expired or not yet valid.
c. The Card is not signed.
d. The Merchants POS Terminal is unable to read the magnetic stripe or
the chip (if one is present) on the Card.
e. The Card cannot be imprinted on the Transaction receipt because of a
malfunction, although the Card is present and embossed.
f.
The Card account number is listed in the applicable Warning Bulletin.
g. The Merchant is suspicious of the Transaction for any reason.

8-7

An online or voice authorization from the Issuer is not required in the

following instances:
1. Transactions at a Cardholder-activated terminal (CAT) 3 device
2. Chip Transactions authorized offline by the Cards EMV chip, including
MasterCard PayPass M/Chip Transactions.
3. POS Terminal failure or telecommunication failure. A POS Terminal failure
occurs when the POS Terminal itself is unable to read the Card or to
accept key-entry of the Card data. In the event of a POS Terminal failure or
telecommunication failure, the published floor limits apply.
4. Refund Transactions.
8.3.3.2 Chip Transactions

When an authorization is required for a chip Transaction, before completing
the Transaction, the Merchant must obtain a Transaction Certificate (TC) and
related data.
A nonface-to-face chip Transaction effected using a Cardholder-controlled
remote device is considered valid if the Acquirer has received an Application
Authentication Cryptogram (AAC) and the Issuers approval of the Merchants
8.3.3.3 Lodging, Cruise Line, and Vehicle Rental Transactions

Lodging, cruise line, and vehicle rental Merchants may request an authorization
for an estimated Transaction amount, and may submit subsequent
authorization requests for any additional estimated amounts as needed.
Vehicle rental Merchants may not include charges in a Transaction that
represent either:
the vehicle insurance deductible amount or
an amount to cover potential or actual damages when the Cardholder

waives insurance coverage at the time of the rental
Vehicle rental Merchants must disclose to the Cardholder at the time of the
rental the amount for which the authorization was obtained.
Charges for loss, theft or damage must be processed separately, as set forth in
Rule 8.3.8.
When the Transaction is completed (that is, when the customer checks out of
the hotel or motel, departs the cruise ship, or returns the vehicle) and the final
Transaction amount is determined, the following will apply.
8-8


IF
THEN
The authorization request message

The Transaction amount may not exceed
contains the Partial Approval Terminal
the approved amount.
Support Indicator, and the authorization
request response message contains a value
of 10 (Partial Approval) in DE 39 and a
partial approval amount in DE 6.
The POS Terminal is not online-capable
and the final Transaction amount does
not exceed the published floor limit
applicable to the Merchant
The Merchant is not required to obtain an

authorization, but must check the Card
account number against the applicable
Warning Bulletin.
The final Transaction amount does not

exceed the Merchants estimated amount
by 15 percent
The Merchant is not required to request a

secondary authorization. The initial
authorization guarantees the full amount of
the Transaction.
The final Transaction amount exceeds the The Merchant must request a secondary
Merchants estimated amount by 15
authorization for the additional amount.
percent
The final Transaction amount exceeds the The Merchant must obtain an authorization
Merchants applicable floor limit, and a
for the total Transaction amount.
previous authorization was not obtained
because the Merchants estimate did not
exceed the floor limit.
The total authorized amount is the cumulative amount of all authorization

request approvals related to the Transaction, plus 15 percent.
8.3.3.4 Adding a Gratuity

The following procedures apply to Transactions in which the Cardholder adds
a gratuity, either before or after authorization approval is obtained.
IF
THEN
The authorization request message

The Transaction amount may not exceed
contains the Partial Approval Terminal
the approved amount.
Support Indicator and the authorization
request response message contains a value
of 10 (Partial Approval) in DE 39 and a
partial approval amount in DE 6
The POS Terminal is not online-capable,
the Transaction amount is below the
published floor limit applicable to the
Merchant, and the Cardholder adds a
gratuity in an amount less than or equal to
20 percent of the Transaction amount
The Merchant is not required to obtain an

authorization even though the total
Transaction amount may exceed the
Merchants floor limit.
8-9

IF
THEN
The Merchant obtained an authorization

for a Transaction, and the Cardholder
adds a gratuity in an amount greater than
20 percent of the Transaction amount
The Merchant must request a secondary

authorization for the additional amount.
The Transaction amount is below the

The Merchant must obtain an authorization
Merchants applicable floor limit and the for the total Transaction amount.
Cardholder adds a gratuity in an amount
greater than 20 percent of the Transaction
amount, which causes the Transaction
amount to exceed the Merchants floor
limit.
The total authorized amount is the cumulative amount of all authorization

request approvals related to the Transaction, plus 20 percent.
8.3.4 Suspicious Transactions and Pick-up-card Response

To report a suspicious Transaction, the Merchant must:
Include a value of 1 (Suspected fraud (merchant suspiciouscode 10) in

DE 61, subfield 8 (Transaction Security) of the authorization request
message, or
Contact the authorization center, state This is a Code Ten, and await
instructions. The Acquirer may adopt a term other than Code Ten for
use when a Merchant is suspicious, subject to approval by the Corporation.
If the Merchant receives a capture card or pick-up-card response to an

authorization request, the Merchant must not complete the Transaction. The
Merchant must retain the Card by reasonable and peaceful means, contact the
Acquirers authorization center for further instructions, and use its best efforts,
by reasonable and peaceful means, to comply with those instructions.

Upon completing a Transaction, a Merchant must produce a Transaction
receipt, also called a Transaction Information Document (TID), in accordance
with the requirements described in section 3.11 of the Security Rules and
Procedures manual.
All products and services purchased in the same Transaction and all cash
disbursed in a cash disbursement transaction must be included on a single
TID.
8-10


A copy of the TID must be provided to the Cardholder, unless the Cardholder
chooses not to receive a Transaction receipt with respect to a QPS or
MasterCard PayPass Transaction that does not exceed the eligible chargeback
protection amount. For an electronic commerce Transaction or non-face-toface recurring payment Transaction, the receipt may be sent to the Cardholder
by e-mail or other electronic means.

All of the following information must be included on the TID:
1. A description and the price of each product and service purchased,
including applicable taxes, in detail sufficient to identify the Transaction.
Note
A variation to this provision of the Rule appears in Chapter 12, Europe Region
Rules.
2. The total Transaction amount and Transaction currency. If no currency is

identified on the TID, the Transaction is deemed to have taken place in the
currency that is legal tender at the POI. If the Merchant offers multiple
currencies, the TID must reflect all of the following information:
a. The total of products and services purchased in the Transaction in the
Merchants local currency;
b. The converted Transaction amount in the currency chosen and agreed
to by the Cardholder and the Merchant;
c. The currency symbol or code of each;
d. The method agreed to by the Cardholder for the conversion of the total
amount from the Merchants local currency to the Transaction currency
(for example, conversion rate).
e. Either of the following statements:
i. I have chosen not to use the MasterCard currency conversion
process and I will have no recourse against MasterCard concerning
the currency conversion or its disclosure.
ii. I understand that MasterCard has a currency conversion process
and that I have chosen not to use the MasterCard Currency
conversion process and I will have no recourse against MasterCard
with respect to any matter related to the currency conversion or
disclosure thereof.
(For additional requirements relating to POI currency conversion, see Rule
8.6.)
3. The Transaction date. (For Transaction date requirements, see Rule B.1 in
Appendix B of this manual.)
8-11

4. For Card-present Transactions, a legible imprint of the Card or an

electronic recording of the Card-read or key-entered Card information. If a
Cardholder presents an unembossed Card, the Merchant must obtain an
electronic recording of the Card-read or key-entered Card information.
If the TID is produced by a POS Terminal, the Card account number must
be truncated and the Card expiration date must be omitted, in accordance
with section 3.11.4 of the Security Rules and Procedures manual.
5. The Merchant location.
6. The authorization number, if an online or voice authorization is obtained
from the Issuer. If more than one authorization is obtained over the course
of the Transaction (as may occur for lodging, cruise line, or vehicle rental
Transactions), all authorization numbers, the amounts authorized, and the
date of each authorization must be entered on the TID.
7. For unique Transactions processed in a face-to-face environment (with the
exception of truck stop Transactions and card-read Transactions where a
non-signature CVM is used)A description of the unexpired, official
government document provided as identification by the Cardholder,
including any serial number, expiration date, jurisdiction of issue, customer
name (if not the same name as present on the Card), and customer
address.
The Transaction certificate is not required on the TID for a chip Transaction.
However, if the Acquirer elects to record this information, the Merchant must
include the Transaction certificate in its entirety on the TID.
8.3.5.2 Prohibited Information

The TID or any other Acquirer or Merchant document must not reflect:
The PIN, any part of the PIN, or any fill characters representing the PIN; or
The Card validation code 2 (CVC 2).
8.3.5.3 Cardholder Verification Method (CVM)

In a face-to-face environment, the Merchant must give the Cardholder the
option of a signature-based Transaction. Unless the Cardholder uses a PIN at a
hybrid POS Terminal or other POI where the Corporation permits the use of
PIN as a CVM, the Cardholder must sign the TID. This requirement does not
apply with respect to a QPS or MasterCard PayPass Transaction that is equal to
or less than the applicable chargeback protection amount.
8-12


For each signature-based Transaction, unless an Access Device or Mobile

Payment Device was presented, the Merchant must compare the signature on
the TID with the signature on the Card to determine whether they appear to
be the same. If the Merchant believes that the signature on the Card does not
match the signature on the TID, the Merchant must contact the Acquirer for
instructions. The signature would not match if name appearing on the Cards
signature panel is different from the name appearing on the TID (for example,
if the Card were signed Jan H. Hanley and the TID showed Bob Hanley or
F. Hanley). The signature would be acceptable if the Cardholders first
and/or middle name(s) is abbreviated on the TID (such as J. H. Hanley) or if a
title such as Mr., Mrs., or Dr. is missing or is included.
In a non-face-to-face Transaction environment, the Merchant may complete the
Transaction without obtaining a CVM.
No CVM is required for a refund Transaction. However, when a PIN is used as
the CVM for a refund Transaction conducted at a hybrid POS Terminal, the
Merchant must obtain a successful PIN validation.
8.3.5.4 Give the Cardholder a Copy of the Receipt

The Merchant must provide the Cardholder with a true and completed copy of
the TID. This requirement does not apply if the Cardholder has chosen not to
receive a receipt for a QPS or MasterCard PayPass Transaction that is equal to
or less than the applicable chargeback protection amount.
8.3.6 Multiple TIDs and Partial Payment

A Merchant is prohibited from using two or more TIDs, also known as a split
ticket, to avoid an authorization request. Examples of split tickets include
deposit and balance payments and installment payment arrangements.
All products and services purchased in a single Transaction must be included
in one total amount on a single TID, with the following exceptions:
More than one payment method may be used, provided that an

authorization is obtained for and the TID reflects only the portion of the
Transaction to be paid by means of a Card.
Multiple products or services may be purchased and individually billed in

separate Transactions to the same Card account, provided an authorization
is obtained for each product or service purchased.

8-13

A Merchant is prohibited from effecting a Transaction where only a part of the

total purchase amount is included on a single TID, except when:
The customer pays a portion of the Transaction amount by means of a

Card and pays the remaining balance by another payment method, such as
cash or check.
The products or services will be delivered or performed after the

Transaction date, one TID represents a deposit, and the second TID
represents payment of the balance. The Merchant must note the words
deposit and balance on the TIDs as appropriate. The second TID is
contingent on the delivery or performance of the products or services, and
must not be presented until after the goods or services are delivered or
performed.
The Cardholder has agreed in writing to be billed by the Merchant in

installments, and has specified the installment payment schedule and/or
each installment payment amount to be billed to the Card.
8.3.7 Specific Terms of a Transaction

The Merchant may impose specific terms governing a Transaction by, for
example:
1. Printing the specific terms on the TID in close proximity to the Cardholder
signature line before presenting the TID to the Cardholder for signature; or
2. Disclosing the specific terms by other means, such as by signage or
literature, provided the disclosure is sufficiently prominent and clear so that
a reasonable person would be aware of and understand the disclosure
before the Transaction is completed.
Specific Transaction terms may include, for example, such words as Exchange
Only, In-Store Credit Only, or Original Packaging Required for Returns.
Specific terms may address such matters as late delivery, delivery charges, or
insurance charges.
In the event of a dispute, and subject to compliance with other Standards, such
specific terms shall be given effect, provided that such specific terms were
disclosed to and accepted by the Cardholder before completion of the
Transaction.
8.3.7.1 Returned Products and Canceled Services

A Merchant is not required to accept the return of products or the cancellation
of services unless a right of return or cancellation was a condition of the
Transaction.
8-14


8.4 Requirements for Specific Transaction Types
Upon a partial or entire return of products or cancellation of service, or if the

Merchant agrees to a price adjustment, the Merchant may not provide the
refund or adjustment by cash, check, or any means other than a credit the
same Card account used for the original purchase. A cash or check refund is
permitted for involuntary refunds by airlines or other Merchants only when
required by law.
The Cardholder must be provided a copy of the refund Transaction TID. The
refund Transaction TID must contain the date; a description of the returned
products, canceled services, or adjustment made; the amount of the credit; and
the Merchants signature.
8.3.8 Charges for Loss, Theft, or Damage

A charge for loss, theft, or damage must be processed as a separate
Transaction from the underlying rental, lodging, or similar Transaction. The
Cardholder must authorize the charge after being informed of the loss, theft, or
damage.
The Merchant must provide a reasonable estimate of the cost of repairs and
obtain agreement from the Cardholder prior to processing the Transaction. The
Transaction must be Card-present, a CVM must be obtained, and the TID must
include a statement indicating that the estimated amount charged for repairs
will be adjusted upon completion of the repairs and submission of the invoice
for such repairs.
The final amount of the Transaction relating to the repairs may not exceed the
Merchants estimated amount by more than 15 percent (or less, as directed by
local ordinances). If the actual cost of repairs is less than the estimated
amount, the Merchant must credit the difference to the Cardholder by
processing a refund Transaction to the same Card account within 30 days.

8.4.1 Chip Transactions and Acceptance at Hybrid POS
Terminals
To be valid, a chip Transaction or cash disbursement must occur at a hybrid
POS Terminal and obtain authorization by the Issuer or the chip, resulting in
the generation of a unique Transaction Certificate (TC). The Acquirer must
send the TC and related EMV chip data in DE 55 (Integrated Circuit Card [ICC]
System-Related Data) of the Authorization Request/0100 or Financial
Transaction Request/0200 message and in DE 55 of the First Presentment/1240
message.
8-15

A chip/PIN Transaction is a chip Transaction effected at a PIN-capable hybrid

POS Terminal with a PIN-preferring chip Card (as such terms are defined in
the M/Chip Requirements manual) and completed with offline or online PIN as
the CVM. The Cardholder may retain control of the Card while a chip/PIN
Transaction is performed.
Customers must comply with the Card and hybrid POS Terminal requirements
set forth in the M/Chip Requirements manual and EMV chip specifications, and
in section 4.8 of the Security Rules and Procedures manual.
For information about chip and chip/PIN liability shifts, see section 3.5 of the
Chargeback Guide.
Note
Additional Rules on this topic appear in Chapter 10, Asia/Pacific Region Rules;
Chapter 11, Canada Region Rules; Chapter 12, Europe Region Rules; Chapter
12b, SEPA Rules; Chapter 13, Latin America and the Caribbean Region Rules;
Chapter 14, South Asia/Middle East/Africa Region Rules; and Chapter 14a,
South Africa Rules.
8.4.1.1 Hybrid POS Terminal Display Requirements

A hybrid POS Terminal must:
1. Display to the Cardholder all mutually supported application labels or
preferred names. Multiple matching applications must be displayed in the
Issuers priority sequence.
2. Allow the Cardholder to select the application to be used when multiple
matching applications exist.
3. Display to the Cardholder the Transaction amount and Transaction
currency, if different from the Merchants or cash disbursement agents
local currency. Refer to Rule 8.6 for additional requirements relating to
currency conversion.

Fixed Location
Acquirers may process a chip Transaction that takes place at the offline-only
hybrid POS Terminal of a Merchant with no fixed location (for example,
aboard a plane, train or ship) although the POS Terminals authorization
request is declined, if all the following conditions are satisfied:
1. The POS Terminal has no online capability and does not perform fallback
procedures from chip to magnetic stripe.
2. The POS Terminal prompted for PIN as the CVM and the EMV chip
provided offline verification of the PIN entered by the Cardholder.
8-16


3. The POS Terminal recommended Transaction approval.

4. The Card declined the offline authorization request.
5. The Merchant is identified under one of the following MCCs:
a. MCC 4111 (TransportationSuburban and Local Commuter Passenger,
including Ferries)
b. MCC 4112 (Passenger Railways)
c. MCC 5309 (Duty Free Stores)
6. The Acquirer provides in the First Presentment/1240 message:
a. The value of F (Offline Chip) in DE 22 (Point of Service Entry Mode),
subfield 7 (Card Data Input Mode).
b. The Application Authentication Cryptogram (AAC) in DE 55.
The Acquirer processes such declined Transactions at the risk of receiving
authorization-related chargebacks.
8.4.1.3 CVM Fallback

The following requirements apply with respect to Cardholder verification
method (CVM) fallback from PIN to signature on a chip Transaction:
1. When a PIN-preferring chip Card is used at a PIN-capable hybrid POS
Terminal, the Cardholder may be verified by signature if PIN verification
(offline or online) fails for any reason other than PIN decline by the Issuer
or by Stand-In, provided signature is identified as a permitted CVM during
the EMV Transaction process. PIN-capable hybrid POS Terminals may
support the PIN override function as described in the EMV chip
specifications.
2. CVM fallback Transactions must be authorized and identified as being
completed with signature as the CVM.
3. The Issuer is liable for lost, stolen and never-received-issue fraudulent CVM
fallback Transactions completed with authorization approval, provided that
the Merchant complied with the Card acceptance procedures (for example,
a CVM was used). The Acquirer is liable for lost, stolen and neverreceived-issue fraudulent CVM fallback Transactions completed without
authorization approval.

8-17

8.4.1.4 CVM Failure

CVM failure occurs when a chip Transaction is completed without successful
Cardholder verification, such as when offline PIN is the selected CVM but
offline PIN verification does not take place (for example, the Merchant uses
the PIN bypass functionality or the Cards offline PIN is locked because of
incorrect PIN entries) and the Cards settings do not allow CVM fallback. Card
and POS Terminal settings typically require such Transactions to be sent online
to the Issuer for authorization with an indicator that Cardholder verification
was not successful. Issuers may decide whether to approve or decline such
Transactions at their own risk.
8.4.1.5 Technical Fallback

In both the chip and the chip/PIN environment, a technical failure involving
either the EMV chip or the hybrid POS Terminal may result in a technical
fallback Transaction. A technical fallback Transaction:
1. May be initiated with the magnetic stripe only if the chip cannot be read.
2. May be completed by means of a manual imprinter or electronic key entry
of the Card data only if both the chip and the magnetic stripe cannot be
read.
3. May be completed with signature or, where applicable, PIN as the CVM.
4. Must be authorized online by the Issuer and properly identified as being
captured with a fallback technology.
The Issuer is liable for fraudulent magnetic stripe-read and paper-based
technical fallback Transactions completed with authorization approval,
provided that the Merchant complied with the Card acceptance procedures (for
example, a CVM was used). The Acquirer is liable for fraudulent magnetic
stripe-read and paper-based technical fallback Transactions completed without
authorization approval.
Note
Rules on this topic appear in Chapter 12, Europe Region Rules and Chapter
14b, India Rules.
8.4.2.1 E-commerce Transactions

A Merchant must not refuse to complete an e-commerce Transaction solely
because the Cardholder does not have a digital certificate or other secured
protocol.
8-18


8.4.2.2 Recurring Payment Transactions

A recurring payment Transaction is a payment made in connection with an
agreement between a Cardholder and a Merchant whereby the Cardholder has
authorized the Merchant to bill the Cardholders Card account on a continued,
periodic basis (such as monthly, quarterly, or annually) without a specified end
date. Each payment may be for a variable or a fixed amount.
Each recurring payment Transaction must contain a value of 4 (Standing
order/recurring transactions) in DE 61 (Point-of-Service [POS] Data), subfield 4
(POS Cardholder Presence) in the authorization request message.
The Acquirer should ensure that the Merchant retains the Cardholders written
agreement to the terms of a recurring payment Transaction arrangement. The
Merchant must not deliver products or perform services pursuant to a recurring
payment Transaction arrangement after receiving notification of its cancellation
by the Cardholder or Issuer or that the Card on file is not to be honored.

For MasterCard PayPass Transactions equal to or less than the applicable
chargeback protection amount:
1. Use of signature as the CVM is at the Merchants option; and
2. The provision of a TID to the Cardholder is at the Merchants option. The
Merchant must provide a TID at the Cardholders request.
Chargeback protection applies with respect to message reason codes 4802
(Requested/Required Information Illegible or Missing) and 4837 (No
Cardholder Authorization).
For MasterCard PayPass Transaction identification requirements, see Rule B.2
in Appendix B of this manual. For chargeback protection amount information,
see Appendix C of the Chargeback Guide.
Note
The phrases tap the PayPass card or device and PayPass tap refer to the
same series of actions: a Cardholder touching the MasterCard PayPass Card to a
PayPass POS Terminal, resulting in the PayPass POS Terminal reading the Card
data and then flashing a light and making a sound.
Note
A Rule on this topic appears in Chapter 11, Canada Region Rules.

8-19

8.4.3.1 Processing MasterCard PayPass Transit Transactions

MasterCard PayPass transit Transactions are limited to specific MCCs and can
be pre-funded, real-time authorized, or post-authorized aggregated.
8.4.3.1.1 Pre-funded
A pre-funded MasterCard PayPass transit Transaction occurs when:
1. The Cardholder purchases value redeemable for future travel with a transit
Merchant, whereby the Merchant sends an Authorization Request/0100
message for the amount of value purchased; and
2. The Transaction is effected by use of the contactless interface of a
MasterCard PayPass Card.
The purchased value is held by the transit Merchant in an account linked to
the Cardholders MasterCard PayPass Card account. Any tap performed with
the MasterCard PayPass Card following the purchase of value will reduce the
value held with the transit Merchant, but will not result in a Transaction.
8.4.3.1.2 Real-time Authorized
A real-time authorized MasterCard PayPass transit Transaction occurs when the
transit Merchant sends an Authorization Request/0100 message each time a
Cardholder taps a MasterCard PayPass Card at the Merchants POS Terminal.
8.4.3.1.3 Post-authorized Aggregated
A post-authorized aggregated MasterCard PayPass transit Transaction occurs
when the transit Merchants Acquirer generates a First Presentment/1240
message combining one or more PayPass taps performed with one MasterCard
PayPass Card account number at one transit Merchant.
In order for the transit Merchant to receive chargeback protection, all of the
following must occur:
1. The Merchant must send an Authorization Request/0100 message for USD
1 (or the approximate equivalent in one whole unit of local currency; for
example, EUR 1 or JPY 1).
2. The Issuer must approve the Transaction.
3. The combined amount of the PayPass taps must be equal to or less than
the applicable chargeback protection amount.
4. The maximum time period from the first PayPass tap until the First
Presentment/1240 message is generated must be 14 calendar days or less.
Upon the Cardholders request, the Merchant must provide a list of the
PayPass taps that were combined into a First Presentment/1240 message.
8-20


For post-authorized aggregated MasterCard PayPass transit Transaction

identification requirements, see Rule B.2.1 in Appendix B.
8.4.3.2 PayPass-only Acceptance

Where approved by the Corporation (either on a country-by-country or caseby-case basis), Acquirers may sponsor Merchants that deploy POS Terminals
that utilize only the MasterCard PayPass contactless payment functionality. The
Acquirer must ensure that each POS Terminal with contact Card acceptance
functionality subsequently deployed by any such Merchants accepts Cards.
The Corporation has approved the following for PayPass-only acceptance:
1. Merchants that deploy single-vehicle parking meters (MCC 7523)
2. Merchants that deploy single-ride bus fare collection devices (MCC 4131)
3. Merchants that use the following MCCs:
a. MCC 4111TransportationSuburban and Local Commuter Passenger,
including Ferries
b. MCC 4112Passenger Railways
c. MCC 4789Transportation Servicesnot elsewhere classified
4. Merchants located in Belgium, Canada, Germany, Italy, Poland, the
Netherlands, Spain, Switzerland, Turkey, Ukraine, or the United Kingdom,
or the United States that deploy any type of parking meters, including
multiple-vehicle parking meters (MCC 7523).
5. Merchants located in Germany, Poland, Spain, Switzerland, Turkey,
Ukraine, or the United Kingdom that deploy select first vending machines
(MCC 5499).
6. Subject to Corporation approval on a case-by-case basis, Merchants
operating mass events, festivals, and sport arenas located in Poland under
the following MCCs:
a. MCC 7941Athletic Fields, Commercial Sports, Professional Sports
Clubs, Sports Promoters
b. MCC 7929Bands, Orchestras, and Miscellaneous Entertainers not
elsewhere classified
7. Merchants located in Poland that use MCC 5994News Dealers and
Newsstands.

8-21

POS Terminals that utilize only the MasterCard PayPass contactless payment
functionality at Merchants using the following MCCs are not required to
provide a Transaction receipt at the time the Transaction is conducted;
however, the Merchant must have a means by which to provide a receipt to
the Cardholder upon request. If such means involves the storage, transmission,
or processing of Card data, then it must comply with the Payment Card
Industry Data Security Standard (PCI DSS). The manner in which to request a
receipt must be clearly displayed at the Merchant location.
MCC 4111TransportationSuburban and Local Commuter, Passenger,
including Ferries
MCC 4112Passenger Railways
MCC 4131Bus Lines
MCC 4789Transportation Servicesnot elsewhere classified
MCC 7523Automobile Parking Lots and Garages
For PayPass-only Transaction identification requirements, see Rule B.2.2 in

Appendix B.

Authorization Limit Amounts
If a MasterCard PayPass M/Chip Transaction occurs at a Merchant using an
MCC listed below and located in Australia, Hong Kong, Macao, Malaysia, New
Zealand, or Singapore, and the Transaction exceeds the applicable offline
authorization limit amount, the Transaction must be authorized online by the
Issuer. If the Transaction amount is equal to or less than the applicable offline
authorization limit amount, the Transaction may be authorized offline by the
EMV chip.
In this country
The MasterCard PayPass M/Chip

Transaction offline authorization limit
amount is
Australia
AUD 100
Hong Kong
HKD 500
Macao
MOP 500
Malaysia
MYR 150
New Zealand
NZD 80
Singapore
SGD 100
The amounts specified above apply only at Merchants in the following MCCs.
For all other Merchants, see Chapter 5 of the Quick Reference Booklet.
8-22


MCC
Description
4111
TransportationSuburban and Local Commuter, Passenger, Including

Ferries
4121
Limousines and Taxicabs
4131
Bus Lines
4784
Bridges and Road Fees, Tolls
5411
5499
Miscellaneous Food StoresConvenience Stores, Markets, and Specialty

Stores
5541
5735
Record Shops
5814
5912
5942
Book Stores
5994
News Dealers and Newsstands
7216
Dry Cleaners
7523
Automobile Parking Lots and Garages
7542
Car Washes
7832
Motion Picture Theaters
7841
Video Entertainment Rental Stores
8.4.4 Quick Payment Service (QPS) Program

For Quick Payment Service (QPS) Transactions equal to or less than the
applicable chargeback protection amount:
1. Use of signature as the CVM is at the Merchants option; and
2. The provision of a Transaction receipt to the Cardholder is at the
Merchants option. The Merchant must provide a receipt at the
Cardholders request.
Chargeback protection applies with respect to message reason codes 4802 and
4837.
For QPS Transaction identification requirements, see Appendix B of this
manual. For chargeback protection amount information, see Appendix C of the
Chargeback Guide. For additional QPS Program requirements, see the Quick
Payment Service Program Guide.

8-23

8.4.5 Purchase with Cash Back Transactions

Purchase with cash back is an optional service that a Merchant may offer, with
the prior approval of its Acquirer, at the POI in a Card-present, face-to-face
Transaction environment only. The following requirements apply to purchase
with cash back Transactions:
1. A purchase with cash back Transaction is a Transaction arising from the
use of a Debit MasterCard Card but not any other type of Card.
2. In a purchase with cash back Transaction, cash may only be provided in
combination with a purchase.
3. Acquirers and Merchants that choose to provide purchase with cash back
Transactions first must establish an education program for Merchant
employee staff, including but not limited to POS Terminal operators.
4. Acquirers or Merchants may establish a minimum and maximum cash back
amount of the purchase with cash back Transaction, provided that:
a. Any such minimum or maximum amount is applied uniformly to all
Cardholders.
b. Any minimum amount is not greater than the minimum amount
established for any other payment means accepted at the Merchant
location.
c. Any maximum amount is not less than the maximum amounts
established for any other payment means at the merchant location, and
is not more than USD 100 or the local currency equivalent.
5. The authorization and clearing messages of each purchase with cash back
Transaction must comply with the following requirements:
a. The Transaction must be identified with a value of 09 (purchase with
cash back) in DE 3 (Processing Code), subfield 1 (Cardholder
Transaction Type).
b. The purchase amount, cash back amount, and total Transaction amount
must be in the same currency.
c. The total Transaction amount (inclusive of the purchase and cash back
amounts) must be transmitted in DE 4 (Amount, Transaction).
d. The cash back amount must be transmitted in DE 54 (Amounts,
Additional).
8-24
Note
Variations to this Rule appears in Chapter 12, Europe Region Rules"; Chapter
14a, South Africa Rules; and Chapter 14b, India Rules.


8.4.6 Unique Transactions

Acquirers must properly identify unique Transactions in authorization and
clearing messages. The following types of Transactions are defined as unique
Transactions and must be processed using the appropriate MCC:
Gambling Transactions (MCC 7995)
GamblingHorse Racing, Dog Racing (MCC 9754)
Money TransferCustomer Financial Institution (MCC 6534)
Money TransferMerchant (MCC 4829)
Quasi CashCustomer Financial Institution (MCC 6050)
Quasi CashMerchant (MCC 6051)
Remote Stored Value LoadCustomer Financial Institution (MCC 6529)
Remote Stored Value LoadMerchant (MCC 6530)
Truck Stop Transactions (MCC 7511)
All unique Transactions have a floor limit of zero and must be authorized
online by the Issuer. For MCC descriptions, see the Quick Reference Booklet.
8.4.7 Cardholder-Activated Terminal Requirements

A Cardholder-activated terminal (CAT) Transaction occurs at an unattended
electronic POS Terminal or by means of a Cardholder-controlled electronic
device (including but not limited to transponders, personal computers, and
mobile phones). Since no Merchant representative is present at the time of the
Transaction, a CAT Transaction is a non-face-to-face Transaction. Examples of
CATs may include ticket dispensing machines, vending machines, automated
fuel dispensers, toll booths, and parking meters. For CAT Transaction
identification and processing requirements, see Rule B.4 in Appendix B.

If an Issuer approves an authorization request for a Cardholder-activated
automated fuel dispenser Transaction identified with MCC 5542 and CAT level
2 (an AFD Transaction) occurring at a Merchant located in the U.S. region,
then within 60 minutes of the time that the authorization request message was
sent, the Acquirer must send an authorization advice message advising the
Issuer of the Transaction amount.

8-25

If after approving an authorization request for an AFD Transaction the Issuer

has placed a hold on Cardholder funds in excess of USD 1, then within 60
minutes of receiving the Acquirers authorization advice (0120 or 0420)
message, the Issuer must release any hold amount that exceeds the
Transaction amount specified.

A Payment Transaction is a transfer of funds to a Card account via the
Interchange System. A Payment Transaction is not a credit that reverses a
previous purchase Transaction.
If Payment Transactions are to be conducted pursuant to a Customer-toCustomer, intracountry, or intercountry business service arrangement, the
business service arrangement must be agreed to in writing, in advance, by the
Corporation. The Corporation reserves the right to audit or to monitor any
Payment Transaction Program at any time.
Each Payment Transaction must comply with all requirements set forth herein.
1. A Payment Transaction must not be effected in a manner that is
inconsistent with an expressed Cardholder preference.
2. Each Payment Transaction must be authorized separately and distinctly by
the Issuer of the Card account to which the funds are to be transferred,
and must be identified as a Payment Transaction in the Authorization
Request/0100 message, as described in Payment Transaction
Authorization in Chapter 9 of the Authorization Manual.
3. A Payment Transaction must be effected on the date agreed upon by the
Merchant and the person whose Card account is to be funded.
4. Separate Payment Transaction requests must be effected separately and
may not be aggregated as a single Payment Transaction. Conversely, a
Payment Transaction may not be separated into two or more Payment
Transactions.
5. Each Payment Transaction must be authorized, cleared, and settled
distinctly and separately.
6. A Payment Transaction may not be effected for any of the following
reasons:
a. To authenticate a Card account or a Cardholder, for example, by
effecting or attempting to effect a Payment Transaction for a nominal
amount.
b. For any illegal purpose or any other purpose deemed by the
Corporation to be impermissible.
c. To transfer the proceeds from a Transaction to a Merchant.
8-26


7. A Payment Transaction must be submitted to the Corporation for clearing

within one day of the Issuers approval of the authorization request.
8. Funds for the Payment Transaction must be deemed collected and in the
control of the Acquirer before the Payment Transaction is submitted to the
Interchange System.
9. A Payment Transaction only may be reversed for reason of a documented
clerical error. In such an event, the error must be reversed within three
calendar days of the date the Payment Transaction was submitted to the
Interchange System. Reversible clerical errors include, by way of example
and not limitation, the erroneous capture of Transaction data, a duplicate
Transaction, or an error caused by the transposition of data.
10. A Merchant effecting Payment Transactions must honor all valid Cards
without discrimination.
Note
Regional Rules on this topic appear in Chapter 12, Europe Region Rules.
8.4.10 MoneySend Payment Transactions

A MoneySend Payment Transaction is a transfer of funds to a Card account via
the MasterCard MoneySend platform through the Interchange System. A
MoneySend Payment Transaction is not a credit that reverses a previous Card
purchase. A MoneySend Payment Transaction must not be sent to a Card
issued in India that is linked to a credit account.
All Issuers in the countries listed below must properly process and authorize
MoneySend Payment Transactions.
Country Code
Country
Country Code
Country
008
Albania
807
Macedonia
051
Armenia
470
Malta
031
Azerbaijan
498
Moldova
070
Bosnia and
Herzegovina
499
Montenegro
100
Bulgaria
616
Poland
196
Croatia
642
Romania
191
Cyprus
643
Russian Federation

8-27

Country Code
Country
Country Code
Country
203
Czech Republic
688
Serbia
268
Georgia
703
Slovakia
348
Hungary
705
Slovenia
376
Israel
792
Turkey
398
Kazakhstan
804
Ukraine
900
Kosovo
The Corporation reserves the right to audit or to monitor any MoneySend

Payment Transaction Program at any time.
8.4.10.1 MoneySend Payment Transaction Requirements

Acquirers that send MoneySend Payment Transactions and issuers that receive
MoneySend Payment Transactions pursuant to the MasterCard MoneySend
platform must comply with all of the requirements set forth herein.
1. Only Acquirers and Issuers approved and registered by the Corporation
may effect MoneySend Payment Transactions pursuant to the MasterCard
MoneySend platform. In the countries listed below, only Acquirers must
register with the Corporation.
Albania
Hungary
Romania
Armenia
Israel
Russian Federation
Azerbaijan
Kazakhstan
Serbia
Bosnia and Herzegovina
Kosovo
Slovakia
Bulgaria
Macedonia
Slovenia
Croatia
Malta
Turkey
Cyprus
Moldova
Ukraine
Czech Republic
Montenegro
Georgia
Poland
2. A MoneySend Payment Transaction must be effected on the date agreed

with the person whose Card account is to be debited (the sender), and
must not be effected in a manner that is inconsistent with the senders
expressed preference(s).
3. The Acquirer must submit an authorization request to the Issuer for each
MoneySend Payment Transaction. MoneySend Payment Transaction
authorizations must be either approved or declined for the full Transaction
amount. No partial approvals will be permitted.
8-28


4. Separate MoneySend Payment Transaction requests must be effected

separately and may not be aggregated as a single Payment Transaction.
Conversely, a MoneySend Payment Transaction may not be separated into
two or more Payment Transactions. Each MoneySend Payment Transaction
must be authorized, cleared, and settled distinctly and separately.
5. A MoneySend Payment Transaction may not be effected for any of the
following reasons:
a. To authenticate a Card account or a Cardholder, for example, by
effecting or attempting to effect a MoneySend Payment Transaction for
a nominal amount; or
b. For any illegal purpose or any other purpose deemed by the
Corporation to be impermissible; or
c. To transfer the proceeds from a Transaction to a Merchant; or
d. To transfer funds to a Merchant, a commercial entity, or a commercial
Card.
6. A MoneySend Payment Transaction must be submitted to the Corporation
for clearing within one (1) calendar day of the Issuers approval of the
7. Funds for the MoneySend Payment Transaction must be deemed collected
and in the control of the Acquirer before the MoneySend Payment
Transaction is submitted for authorization.
8. A MoneySend Payment Transaction may only be reversed by the acquirer
for reason of a documented clerical error at the issuers sole discretion. In
such an event, the error must be reversed within one (1) calendar day of
the date the MoneySend Payment Transaction was authorized. Reversible
clerical errors include, by way of example and not limitation, the erroneous
capture of Transaction data, a duplicate Transaction, or an error caused by
the transposition of data.
9. A participating Issuer must not decline a MoneySend Payment Transaction
based solely on the Transaction type and/or the Acquirer originating the
Transaction.
10. An Issuer may, approve or reject the Acquirers request to correct a clerical
error and/or, except for the countries listed below, establish its own
maximum MoneySend Payment Transaction amount.
Albania
Hungary
Romania
Armenia
Israel
Russian Federation
Azerbaijan
Kazakhstan
Serbia
Kosovo
Slovakia
Bulgaria
Macedonia
Slovenia

8-29

Croatia
Malta
Turkey
Cyprus
Moldova
Ukraine
Czech Republic
Montenegro
Georgia
Poland
11. An Issuer must make the transferred funds available to the Cardholder
without unnecessary delay. If funds will not be available immediately upon
receipt of the clearing record, the Issuer must disclose to the Cardholder
the period of time after which funds will become available.
12. Upon Issuer approval of a MoneySend Payment Transaction authorization
request, the MoneySend Payment Transaction is deemed irrevocable and
should not be charged back. The issuer may file a compliance case under
limited circumstances. See Chapter 5, Compliance Procedures of the
Chargeback Guide for additional information regarding a MoneySend
Payment Transaction compliance case.
13. The Acquirer must ensure that the amount of the MoneySend Payment
Transaction in the clearing message matches the amount in the
14. The Issuer must identify each MoneySend Payment Transaction on the
Cardholders periodic billing statement, including the amount and the date
of posting to the Card account.
15. MoneySend Payment Transaction must be identified using one of the
following MCCs:
a. MCC 6536Intracountry MoneySend Payment Transaction
b. MCC 6537Intercountry MoneySend Payment Transaction
The Acquirer must also submit a Payment Transaction Detail addendum with a
MoneySend Payment Transaction. The addendum provides the Issuer with
enhanced data, including Transaction details.
8.4.11 Mobile Remote Payments

The Standards for Mobile Remote Payments apply in countries where Mobile
Remote Payment Transactions are supported. The applicability of these
Standards in a country will be announced in a regional and/or country-specific
bulletin.
8-30


A Mobile Remote Payment Transaction is a payment to a Merchant initiated by

a Cardholder using the Mobile Remote Payment functionality on the
Cardholders Mobile Device. Solely for purposes of this Rule 8.4.11, a Mobile
Device is a Cardholder-controlled mobile phone that has been registered with
the Cardholders Issuer and which is used for entry of the Cardholders PIN or
mobile-specific credentials.
8.4.11.1 Mobile Remote Payments Program Requirements

To participate in Mobile Remote Payments, an Acquirer must comply with the
following requirements:
1. Register with the Corporation to participate in the Mobile Remote Payments
Program, as described in the Mobile Remote Payments Program Guide.
2. Provide implementation and registration for participating Merchants or
delegate a specific implementation and registration function to a
Corporation-approved provider.
3. Properly identify a Mobile Remote Payment transaction, as described in
Rule B.5 in Appendix B.
Acquirers must ensure that all participating Merchants:
1. Comply with the requirements set forth in the Mobile Remote Payments
Program Guide, and this Rule 8.4.11.
2. Provide clear instructions about how to obtain a mailing address, and a
contact telephone number or e-mail address, for Cardholder queries
resulting from Mobile Remote Payment Transactions. This information may
be provided in the confirmation message, but must be readily accessible to
a Cardholder, and remain displayed for at least ninety (90) calendar days
after the last day on which a Transaction was performed.
3. Provide a function for Cardholders to confirm a Mobile Remote Payment.
This confirmation function must be provided before the sale has been
completed and any charges levied.
4. Provide a confirmation of payment message after the Cardholder confirms
the Transaction. The confirmation message must include the Transaction
date, Transaction amount, Merchant reference, specific Transaction
reference, and contact details for Cardholder inquiries.
8.4.11.2 Mobile Remote Payment Transaction Requirements

Mobile Remote Payment Transactions must be properly identified in all
authorization and clearing messages, and are subject to the Standards
governing Transactions, except as otherwise provided herein. The following
additional requirements apply:

8-31

8.5 Requirements for Specific Merchant Categories
1. The completed copy of the TID may be provided to the Cardholder

electronically (such as through e-mail). Information provided on an
electronically-produced TID must comply with all TID requirements.
2. The floor limit for all Mobile Remote Payment Transactions is zero.
3. All Mobile Remote Payment Transactions must either:
a. Use online PIN as the CVM, or
b. The Issuer may choose to implement mobile-specific credentials and a
method of generating an Account holder Authentication Value (AAV),
as an alternative to using PIN as the CVM for Mobile Remote Payment
Transactions. An Issuer choosing to implement this method must
provide clear communication to the Cardholder regarding the process
by which a Mobile Remote Payment Transaction is conducted without
the use of PIN as the CVM.
Refer to the Mobile Remote Payments Program Guide for additional
information.
Note
Rules on this topic appear in Chapter 15b, United States Region PIN-based
Debit Transaction Rules.

Refer to Rule 8.3.8 for Card acceptance requirements relating to refund
Transactions. See Rule 8.6 in relation to Merchants that offer POI currency
conversion.
Note
8.5 Requirements for Specific Merchant Categories

Effective 12 October 2012, the following requirements apply to Transactions
effected at Merchants identified with the following card acceptor business
codes (MCCs):
8-32
MCCs 3351 through 3441 (Car Rental Agencies)


MCCs 3501 through 3999 (LodgingHotels, Motels, Resorts)
MCC 4411 (Cruise Lines)
MCC 7011 (LodgingHotels, Motels, Resortsnot elsewhere classified)
MCC 7512 (Automobile Rental Agencynot elsewhere classified)
1. As specified by the Corporation, the Acquirer must use a unique identifier

from the original approved authorization of a Transaction in any additional
authorizations requested in connection with the same Transaction. The
unique identifier must also be included in the Transaction clearing record.
2. Upon receipt of the Transaction clearing record, the Issuer must use the
unique identifier to match the original and any additional approved
authorization(s) to the Transaction.
3. Upon matching all authorizations to the clearing record, the Issuer must
release any hold placed on the Cardholders account in connection with
the original and any additional approved authorization(s) that is in excess
of the Transaction amount.

A Merchant may offer currency conversion at the POI to Cardholders. If
currency conversion is offered, the Merchant must:
1. Before initiation of the Transaction, (i) clearly and conspicuously inform
the Cardholder that the Cardholder has the right to choose the method of
currency conversion to be applied to the Transaction or cash disbursement
(for example, by the Merchant, or by the Corporation); and (ii) obtain the
Cardholders choice of currency conversion method; and
2. If the Cardholder chooses the option of currency conversion by the
Merchant, clearly and conspicuously inform the Cardholder of the same
elements that are set forth in part 2 of Rule 8.3.4.1, and obtain the
Cardholders consent to those elements before completion of the
Transaction.
The following additional requirements apply:
1. The pre-conversion currency and amount must be provided in DE 54
(Amounts, Additional) of the First Presentment/1240 message in
accordance with the technical specifications provided in the IPM Clearing
Formats manual.
2. No specific currency conversion method may be implemented as the
default option. As an exception to the preceding requirement, when POI
currency conversion is offered on the Internet, a currency conversion
option may be pre-selected.
8-33

3. Screen messages at unattended POS Terminals must not require the

Cardholder to select yes or no when choosing the currency. Indirect
means, such as the colors red and green, must not be used to influence the
Cardholders choice.
4. At attended POS Terminals that require the Cardholder to choose between
yes and no, the Merchant must verbally explain the offer to the Cardholder
before presenting it on the POS Terminal. This requirement also applies
with respect to
5. If the Cardholder chooses currency conversion by the Corporation, the
Merchant must complete the Transaction in the currency in which the
products, services, or both were priced. Transaction receipt requirements
relating to currency conversion are set forth in part 2 of Rule 8.3.4.1.
6. The same currency conversion method must be used for a refund
Transaction as was used for the original Transaction.

Upon reissuing a Card with the same primary account number and a new
expiration date, the Issuer must include the expiration date in all Transaction
chargeback records.
Note

A cash disbursement may be provided only by a Customer at its offices and
through its authorized agents. For purposes of this Rule, an authorized agent is
a financial institution authorized to provide cash disbursement services on
behalf of a Customer pursuant to written agreement with the Customer.
The Customer and each of its authorized cash disbursement agents must
complete cash disbursement transactions as set forth in this chapter. (Refer to
the Cirrus Worldwide Operating Rules for Standards governing the use of
automated teller machines.)
8-34


Each Customer and each of its authorized cash disbursement agents must
comply with the following requirements at each office at which any cash
disbursement services are afforded:
1. Not discriminate against or discourage the use of Cards in favor of any card
or device bearing or otherwise issued or used in connection with another
acceptance brand; and
2. Provide cash disbursement services to all Cardholders on the same terms
and regardless of the Issuer.
Note

A Customer and each of its authorized cash disbursement agents may limit the
amount of a face-to-face cash disbursement provided to any one Cardholder in
one day at any individual office. Such limit may not be less than USD 5,000
per Cardholder in one day and uniformly must be applied to all Cardholders.
If compliance with this Rule would cause hardship to one or more (but not all)
of such individual offices that are required or permitted to provide cash
disbursement services, the Customer may establish a maximum cash
disbursement amount of less than USD 5,000 per person in one day at each
such office, provided that the maximum cash disbursement amount:
1. Is not less than USD 1,000;
2. Is not less than the maximum cash disbursement amount established for
any other acceptance brand at the office; and
3. Applies only at those offices where the Customer can, if requested by the
Corporation, demonstrate that a higher maximum would create a hardship.
Note

8-35

Compliance Zones
8.9.3 Discount or Service Charges

The Customer and each of its authorized cash disbursement agents must
disburse all cash disbursements at par without any discount and without any
service or other charge to the Cardholder, except as may be imposed to
comply with applicable law. Any charge imposed must be charged to and
paid by the Cardholder separately and must not be included in the total
amount of the cash disbursement.
8.9.4 MasterCard Acceptance Mark Must Be Displayed

A Customer and each of its authorized cash disbursement agents must display
the MasterCard Acceptance Mark to indicate that Cards are accepted as
required by the Standards at each place where the Customer or any such agent
provides cash disbursements.
Compliance Zones
Rule Number
Rule Title
Category
8.1
Transaction Requirements
8.2
Authorization Requirements
8.2.1
Full and Partial Reversals
8.2.1.1
Reversal for Conversion of Approval to Decline
8.2.2
Full and Partial Approvals and Account Balance Responses
8.3
Card Acceptance Procedures
8.3.5.1
TID Information Requirements
8.3.5.2
Prohibited Information
8.3.6
Multiple TIDs and Partial Payment
8.3.7
Specific Terms of a Transaction
8.3.8
Charges for Loss, Theft, or Damages
8.4
Requirements for Specific Transaction Types
8.4.12
PIN-based Debit Transactions
8.4.14
Euro Migration
8-36


Compliance Zones
Rule Number
Rule Title
Category
8.7
Chargebacks for Reissued Cards
8.9
Cash Disbursements
8.9.1
Nondiscrimination
8.9.2
Maximum Cash Disbursement Amounts
8.9.3
Discount or Service Charges
8.9.4
MasterCard Acceptance Mark Must Be Displayed

8-37
Settlement
This chapter contains information about settlement procedures.
9.1 Definitions ..................................................................................................... 9-1

9.2 Net Settlement ............................................................................................... 9-1
9.3 Currency Conversion..................................................................................... 9-2
9.4 Interchange and Service Fees ....................................................................... 9-2
9.5 Establishment of Intracountry Interchange and Service Fees...................... 9-3
9.5.1 Default Intracountry Fees .................................................................... 9-3
9.5.2 Intraregional Fees ................................................................................. 9-4
9.5.3 Bilateral Agreement .............................................................................. 9-4
9.6 Cost Studies ................................................................................................... 9-5
9.6.1 Allocation of Expenses......................................................................... 9-5
9.6.2 Noncompliance with a Cost Study ...................................................... 9-5

9-i
Settlement
9.1 Definitions
9.1 Definitions
As used in the Rules set forth in this chapter 9, the following terms have the
meanings described:
Interchange fee means an amount paid by the Acquirer to the Issuer with
respect to the interchange of a Transaction. All references to interchange
fees in this chapter 9 mean both the levels of the fees and all qualifying
criteria and conditions for their applicability.
Intracountry issuing Volume means the issuing Volume resulting from

Intracountry Transactions.
Intracountry acquiring Volume means the acquiring Volume resulting

from Intracountry Transactions.
Service fee means an amount paid by the Issuer to the Acquirer with
respect to the interchange of a cash disbursement. All references to service
fees in this chapter 9 mean both the levels of the fees and all qualifying
criteria and conditions for their applicability.
Intracountry cash disbursement means a cash disbursement that occurs in

the same country as the country in which the Card was issued, except as
otherwise defined by the Corporation.
Intraregional cash disbursement means a cash disbursement that occurs

in a different country from the country in which the Card was issued,
within the same MasterCard region, except as otherwise defined by the
Corporation.
Interregional cash disbursement means a cash disbursement that occurs

in a different MasterCard region from the MasterCard region in which the
Card was issued, except as otherwise defined by the Corporation.
9.2 Net Settlement

A Customer that uses the Interchange System for the authorization and clearing
of Transactions and cash disbursements is required to net settle in accordance
with the Corporations settlement Standards. However, an Acquirer and an
Issuer may, with respect to a particular Transaction or cash disbursement,
agree to settle directly between themselves pursuant to a bilateral agreement.
Standards describing net settlement and bilateral agreement rights and
obligations are set forth in the Settlement Manual.

9-1
Settlement
9.3 Currency Conversion
If the Corporation does not support the local currency of a particular country
in the regional settlement service, then each Customer engaged in Intracountry
Transaction Activity in that country must participate in the Corporations
intracurrency settlement service for that country, if such an intracurrency
settlement service exists.

The Corporation converts all Transactions and cash disbursements processed
through use of the Interchange System into the applicable settlement currency.
The Acquirer must submit each Transaction or cash disbursement in the
currency in which it occurred. However, if two Customers elect not to settle a
Transaction or cash disbursement by using the Interchange System and instead
elect to settle directly between themselves in accordance with a bilateral
agreement, any currency that the Corporation supports is acceptable for
settlement.
Note
An addition to this Rule appears in Chapter 13, Latin America and the
Caribbean Region Rules.
9.4 Interchange and Service Fees

A Transaction or cash disbursement cleared and settled between Customers
gives rise to the payment of the appropriate interchange fee or service fee, as
applicable. The Corporation has the right to establish default interchange fees
and default service fees (hereafter referred to as interchange fees, service
fees, or collectively, fees), it being understood that all such fees set by the
Corporation apply only if there is no applicable bilateral interchange fee or
service fee agreement between two Customers in place. The Corporation
establishes all fees for Interregional Transactions and interregional cash
disbursements and Intraregional Transactions and intraregional cash
disbursements, and may establish fees for Intracountry Transactions and
intracountry cash disbursements. The Corporation will inform Customers, as
applicable, of all fees it establishes and may periodically publish fee tables.
Unless an applicable bilateral interchange fee or service fee agreement
between two Customers is in place, any intraregional or interregional fees
established by the Corporation are binding on all Customers.
9-2
Note
A variation to this Rule appears in Chapter 10a, New Zealand Rules.

Settlement
9.5 Establishment of Intracountry Interchange and Service Fees
9.5 Establishment of Intracountry Interchange and Service

Fees
This Rule 9.5 is applicable only to Intracountry Transactions and intracountry
cash disbursements.
If intracountry interchange and service fees are not established by the
Corporation, such fees may be established in one of two ways: by agreement
of Customers in the country as set forth in Rule 9.5.1, or by application of
intraregional interchange and service fees to Intracountry Transactions and
intracountry cash disbursements as set forth in Rule 9.5.2. Such fees may also
be established by bilateral agreement between two Customers as set forth in
Rule 9.5.3.
For any Transaction or cash disbursement that is subject to a bilateral
agreement between two Customers, the interchange and service fees set forth
in the bilateral agreement prevail.
For any Transaction or cash disbursement that is not subject to a bilateral
agreement between two Customers, the default intracountry fees established
by the Corporation apply, or if none, the default intracountry fees established
by Customers pursuant to these Rules apply, or if none, the intraregional fees
apply, or if none, the interregional fees apply. Any multilateral Customer fee
agreement must comply with all requirements set forth in Rule 9.5.1. The
Corporation reserves the right to determine if multiple bilateral agreements are
deemed to be a multilateral agreement.
Note
Additions to this Rule appear in Chapter 10, Asia/Pacific Region Rules and
Chapter 13, Latin America and the Caribbean Region Rules.
9.5.1 Default Intracountry Fees

If permitted by local law, default fees applicable to Intracountry Transactions
and intracountry cash disbursements for a country may be established by the
affirmative vote of Customers that hold a License for the country and represent
at least 75 percent of the intracountry issuing Volume (excluding on-us
Volume) and at least 75 percent of the intracountry acquiring Volume
(excluding on-us Volume) in the preceding calendar year. To be effective, and
in addition to the foregoing, intracountry fallback fees must be agreed to by at
least two Acquirers and at least two Issuers Licensed to engage in Activity in
the country. Once effective, intracountry fallback fees remain in effect until
revised by Customers pursuant to these Rules or by the Corporation.

9-3
Settlement
Intracountry default fees established by Customers must be established with

the purpose of encouraging the widespread use and acceptance of Cards, must
be justifiable, must not jeopardize the integrity of the Interchange System, must
not conflict with the Standards, and must be reviewed periodically (typically,
every one to three years) and revised as appropriate.
Customers that establish intracountry default fees must promptly provide the
Corporation with a copy of such fees and any subsequent change to the fees.
Customers must be notified of intracountry default fees and any change thereto
well in advance of the effective date, unless exceptional circumstances make
this impossible. Exceptional circumstances generally must relate to events
beyond the control of Customers; in the event of dispute or uncertainty, the
Corporation determines if notice was effective. Intracountry default fees that
have not been provided to and acknowledged by the Corporation as effective
as of a certain date are not effective.
Note
9.5.2 Intraregional Fees

In the event that no bilaterally agreed interchange fee or service fee applies
and no default interchange fee or service fee has been otherwise established
pursuant to these Rules, the applicable intraregional fee or if none, the
interregional fee, applies to Intracountry Transactions and intracountry cash
disbursements.
Note
9.5.3 Bilateral Agreement

Any two Customers may establish by bilateral agreement the interchange and
service fees applicable to Transactions and cash disbursements between them.
All such fees must be submitted promptly to the Corporation. When
applicable to Transactions and cash disbursements processed through the
Interchange System, they must be submitted to the Corporation sufficiently in
advance of the effective date to allow the Corporation to incorporate the fees
into future Interchange System releases as necessary or appropriate.
9-4

Settlement
9.6 Cost Studies
Note
An addition to this Rule appears in Chapter 10, Asia/Pacific Region Rules.
9.6 Cost Studies

The Corporation or its agent(s) may conduct one or more cost studies on a
country-specific or regional or other basis for the purpose of establishing
interchange and service fees. In order to ensure a sufficient quantity and level
of data quality and representativeness as the Corporation deems necessary or
appropriate, the Corporation may designate any number of Customers to
participate in cost studies. All Customers so designated are required to
participate and must provide and be able to certify that the Customer has
provided the Corporation or its agent(s) with complete and accurate
information in the form and manner and for such period of time and by a date
as requested.
9.6.1 Allocation of Expenses

The Corporation may allocate expenses related to any cost study among
Customers conducting Activity in the country or region or other area that is the
subject of the cost study. The expenses may be allocated as the Corporation
deems appropriate and the decision of the Corporation is binding on all
Customers in that country or region or other area.
9.6.2 Noncompliance with a Cost Study

A Customer designated to participate in a cost study that fails to fully and
timely participate is subject to assessments and other disciplinary action at the
sole discretion of the Corporation.

9-5
Settlement
Compliance Zones
Compliance Zones
Rule Number
Rule Title
Category
9.2
Net Settlement
9.3
Currency Conversion
9.4
Interchange and Service Fees
9.5
Establishment of Intracountry Interchange and Service Fees
9.6
Cost Studies
9-6

10
Asia/Pacific Region Rules

This chapter contains Rules that apply only to the Asia/Pacific Region.

3.2.7 Acquirers............................................................................................. 10-1
4.2.12 Use of a Competing Mark on Cards .......................................... 10-3
4.2.13 Use of Other Acceptance Marks on Cards ................................ 10-4
5.11.1 Discrimination .................................................................................. 10-4
5.11.8 Disparagement.................................................................................. 10-6
6.3 Brand Value Transactions and Proprietary Accounts ................................ 10-7
6.3.2 Fees and Reporting Requirements..................................................... 10-7
9.5.3 Bilateral Agreement ............................................................................ 10-8

10-i

Organization of this Chapter

The Rules in this Chapter 10 are variances and additions to the global Rules
that apply in the Asia/Pacific Region.
Refer to Appendix A for the Asia/Pacific Region geographic listing.

3.2.7 Acquirers
This Rule applies in American Samoa, Guam, and the Northern Mariana Islands
only:
An Acquirer must not prohibit its Merchant from requesting or encouraging a
customer to use a payment card with an acceptance brand other than a
MasterCard or other form of payment or a Card of a different product type
than the Card the consumer initially presents, or otherwise prohibit its
Merchant from engaging in actions consistent with Rule 5.11.1 of this
Chapter 10.

The Issuer must provide information to its Cardholders as set forth below.
1. Card Solicitations. Each Issuer of Cards must disclose, clearly and
conspicuously, in all Solicitations any amounts relating to the MasterCard
Issuer Cross-border Assessment and/or the MasterCard Currency
Conversion Assessment that the Issuer charges, or will charge, to the
Cardholder.
2. Cardholder Communications. Each Issuer of Cards must disclose, clearly
and conspicuously, in all existing Cardholder Communications, including
Cardholder agreements and account agreements, any amounts relating to
the MasterCard Issuer Cross-border Assessment and/or the MasterCard
Currency Conversion Assessment that the Issuer charges, or will charge, to
the Cardholder.

10-1

3. Periodic Billing Statement. Each Issuer of Cards must provide adequate

disclosure on each applicable periodic billing statement, such that the
Cardholder can readily determine from the billing statement any amounts
that the Issuer charges to the Cardholder relating to the MasterCard Issuer
Cross-border Assessment and/or the MasterCard Currency Conversion
Assessment during that billing cycle, either in gross or on a per Transaction
basis.
4. Currency Conversion Procedure. The Corporation further recommends and
encourages Issuers to inform their Cardholders that part of the
Corporations currency conversion procedure includes use of either a
government-mandated exchange rate or a wholesale exchange rate,
selected by the Corporation, and that the government-mandated exchange
rate or wholesale exchange rate that the Corporation uses for a particular
Transaction is the rate the Corporation selects for the applicable currency
on date that the Transaction is processed (the Central Site Business Date),
which may differ from the rate selected on the date the Transaction
occurred or on the date the Transaction is posted to the Cardholders
account.
For information about the MasterCard Currency Conversion Assessment, refer
to the GCMS Reference Manual. For information about the MasterCard Crossborder Assessment, refer to the MasterCard Consolidated Billing System
Asia/Pacific Region manual.

Unauthorized Use
The following applies with respect to Asia/Pacific Region Cardholders.
1. Limitation on Amount. Subject to laws of the country within which a Card
is issued, the liability of a Cardholder for unauthorized use of a Card
(regardless of the type of account to which Transactions initiated with such
Card are posted):
a. shall not exceed USD 0 if the conditions set forth in paragraph 2 below
have been met; or
b. shall be in accordance with the corresponding Cardholder agreement if
the conditions set forth in paragraph 2 below have not been met.
2. Conditions to USD 0 Liability. The liability limitations set forth in clause (a)
of paragraph 1, above, shall apply only if:
a. the Cardholder has exercised vigilant care in safeguarding such card
from risk of loss, theft, or unauthorized use;
b. the Cardholder immediately and without delay notifies the Issuer upon
discovery of the loss, theft, or unauthorized use;
10-2


c. the Cardholder has not reported two or more incidents of unauthorized

use to the Issuer in the immediately preceding 12-month period;
d. the account to which Transactions initiated with such card are posted is
in good standing; and
e. the Cardholder has complied with the terms and conditions of the
corresponding Cardholder agreement.
3. Effect of Other Applicable Law or Agreement. If country, provincial, or
local law, or an agreement between a Cardholder and the Issuer of a Card
Card are posted) imposes lesser liability than that provided in this Rule, the
lesser liability shall govern.
4. Unauthorized Use. For purposes of this Rule, unauthorized use means
the use of a Card (regardless of the type of account to which Transactions
initiated with such Card are posted) by a person other than the Cardholder
who does not have actual, implied, or apparent authority for such use, and
from which the Cardholder receives no benefit.
5. Non-applicability. This Rule shall not apply to Cards issued
a. to an entity other than a natural person;
b. primarily for business, commercial, or agricultural purposes; or
c. if a PIN is used as the Cardholder verification method for unauthorized
Transaction(s).

Rule 4.1.2 of Chapter 4, Trademarks and Service Marks is modified as it
applies to debit Cards issued in American Samoa, Guam, and Northern Mariana
Islands, to include the following:
No use of a Mark may be made on or in connection with any card, device or
deems to be competitive with any Activity except as set forth in this chapter.

Rule 4.2.12 of Chapter 4, Trademarks and Service Marks, is modified as it
applies to de bit Cards issued in American Samoa, Guam, and Northern
Mariana Islands, to include the following:

10-3

A competing debit point-of-sale mark may appear on a debit Card as set forth
in the Card Design Standards or as otherwise agreed to by the Corporation.

The following addition to Rule 4.2.13 of Chapter 4 Trademarks and Service
Marks applies in Australia:
The EFTPOS acceptance mark may appear only on the back of Cards issued in
Australia that provide access to a deposit account at the time of issuance.
When appearing on the back of a Card, the EFTPOS acceptance mark is
limited to acceptance solely within Australia. See the Card Design Standards
for information regarding the placement of the EFTPOS acceptance mark on a
Card.
applies to debit Cards issued in American Samoa, Guam, and Northern Mariana
Islands, to include the following:
Other debit point-of-sale marks may appear on a debit Card as set forth in the
Card Design Standards or as otherwise agreed to by the Corporation.

Except as provided in Rule 5.11.1 below, an Acquirer must ensure that none of
its Merchants engage in any of the prohibited practices set forth in this Rule
5.11.
Rule 5.11.1 of Chapter 5, Merchants as it applies in American Samoa, Guam,
and the Northern Mariana Islands is replaced with the following:
A Merchant may request or encourage a customer to use a payment card with
an acceptance brand other than MasterCard or other form of payment or a
Card of a different product type (e.g., traditional cards, premium cards,
rewards cards) than the Card the consumer initially presents. Except where
prohibited by law, it may do so by methods that include, but are not limited
to:
a. offering the customer an immediate discount from the Merchants list,
stated, or standard price, a rebate, a free or discounted product or service,
or any other incentive or benefit if the customer uses a particular payment
card with an acceptance brand other than MasterCard or other particular
form of payment;
10-4


b. offering the customer an immediate discount from the Merchants list,

or any other incentive or benefit if the customer, who initially presents a
Card, uses instead another payment card or another form of payment;
c. expressing a preference for the use of a particular payment card or form of
payment;
d. promoting the use of a particular general purpose payment card with an
acceptance brand other than MasterCard or the use of a particular form or
forms of payment through posted information, through the size,
prominence, or sequencing of payment choices, or through other
communications to customers (provided that the Merchant will abide by
the Standards relating to the display of the Marks including, but not limited
to, the MasterCard Acceptance Mark); or
e. communicating to customers the reasonably estimated or actual costs
incurred by the Merchant when a customer uses particular payment cards
or forms of payment or the relative costs of using different general purpose
payment cards or forms of payment.

and the Northern Mariana Islands is replaced with the following:
finance charge in connection with a Transaction. A Merchant is permitted to

and the Northern Mariana Islands is modified to include the following:
A Merchant may set a minimum Transaction amount to accept a Card that
provides access to a credit account, under the following conditions:

10-5

1. the minimum Transaction amount does not differentiate between Issuers;

and
2. the minimum Transaction amount does not differentiate between
MasterCard and another acceptance brand; and
3. the minimum Transaction amount does not exceed USD 10 (or any higher
amount established by the Federal Reserve by regulation).
A Merchant may set a maximum Transaction amount to accept a Card that
1. the Merchant:
a. is a department, agency or instrumentality of the U.S. Government; or
b. is a corporation owned or controlled by the U.S. Government; or
c. is a Merchant whose primary business is reflected by one of the
following MCCs:
i.
MCC 8220Colleges, Universities, Professional Schools, Junior

Colleges; or
ii. MCC 8244Schools, Business and Secretarial; or

iii. MCC 8249Schools, Trade and Vocational; and
2. the maximum Transaction amount does not differentiate between Issuers;
and
3. the maximum Transaction amount does not differentiate between
MasterCard and another acceptance brand.
A Merchant must not disparage the Corporation or any of the Corporations
products, programs, services, networks, or systems.

Interaction
A discount or other point of interaction benefit may be applied at a POI upon
presentation of a particular Card for payment. Promotion of any such discount
or other benefit at the POI is permitted provided such promotion does not
result in discrimination against other Card Programs. The determination of
whether any promotion discriminates against other Card Programs is at the
10-6



Rule 6.2.5 of Chapter 6, Special Issuer Programs, is modified such that up to
two Partners names or logos or both may appear on the face of the Card
subject to the following conditions:
1. the Card design shall comply in all respects with the Card design
requirements published in the Card Design Standards System
2. the MasterCard Brand Mark is not obscured by the proliferation of other
names or logos or both and the presence of multiple logos does not in any
way damage or impair the strength of the MasterCard brand;
3. the decision as to whether any given Card design conforms to these
conditions is reserved to the Corporations staff.

6.3.2 Fees and Reporting Requirements
Rule 6.3.2 of Chapter 6, Special Issuer Programs, is modified such that for
Programs that are approved for proprietary account access, any proprietary
account fees that may be in effect may be waived on a case-by-case basis at
the sole discretion of the Corporation.

Terminals
Rule 8.4.1 of Chapter 8, "Sales Transactions and Cash Disbursements is
modified to include the following.
For purposes of these Rules, a counterfeit Transaction is a type of fraudulent
Transaction; chip-capable means the ability to become EMV compliant; and
EMV-compliant means in compliance with the EMV standards then in effect.
1. New Chip Capable Terminals. All new ATMs and POI terminals deployed
by Regional Customers and capable of accepting EMV chip Cards (credit or
debit) must be EMV-compliant.

10-7

2. Incentive Interchange Rate. An incentive interchange rate applies to

intraregional chip Transactions to:
a. Compensate the Issuers of Cards with an increased intraregional
interchange of ten basis points when the Card is used at a non-EMV
compliant terminal.
b. Compensate the Acquirers using EMV-compliant terminals with a
reduced intraregional interchange of ten basis points when a non
EMV-compliant Card is used at that terminal.
3. Chip Cards. All new and reissued EMV chip Cards (credit or debit) must
be EMV-compliant in accordance with the Standards.
4. Chip Liability Shift. The liability for intraregional counterfeit Transactions
in which one Regional Customer (either the Issuer or the Acquirer) is not
yet EMV-compliant is borne by the nonEMV-compliant Regional
Customer.
An interregional chip liability shift is in effect between the Asia/Pacific and
South Asia/Middle East/Africa Regions. All countries within each of these
regions participate.

Fees
9.5.3 Bilateral Agreement
Rule 9.5.3 of Chapter 9, Settlement, is modified to include the following:
All interchange fees applicable to Intracountry Transactions contained in a
bilateral agreement must not exceed the maximum interchange fee set by the
Corporation (the MasterCard maximum interchange fee).
10-8

10a
New Zealand Rules

This chapter contains Rules that apply only in New Zealand.

Definitions ....................................................................................................... 10a-1
4.2.6.6 Use on Cards ........................................................................... 10a-2
5.1.2 Required Terms ................................................................................ 10a-2
5.8.1 Honor All Cards................................................................................ 10a-3
5.11.1 Discrimination ................................................................................ 10a-3
9.4 Interchange and Service Fees ................................................................... 10a-4
9.5 Establishment of Intracountry Interchange and Service Fees.................. 10a-4
9.5.1 Default Intracountry Fees ................................................................ 10a-5
9.5.2 Intraregional Fees ............................................................................. 10a-5

10a-i
New Zealand Rules


The Rules in this Chapter 10a are variances and additions to the global Rules
that apply in New Zealand.
Except for Rule 5.9.1 and Rule 5.9.2 of this Chapter 10a, which apply to all
Cards, the Rules in this Chapter 11a apply to Cards issued in New Zealand by
New Zealand Customers and presented for payment at Merchant locations in
New Zealand. Customers and Merchants in New Zealand must continue to
comply with the global rules for Cards issued by Customers outside of New
Zealand and presented for payment at Merchant locations in New Zealand.
For the avoidance of doubt, the Rules in this Chapter 10a do not apply to
(i) Cirrus-only cards; or (ii) Maestro-only cards.
Definitions
Solely for the purposes of this Chapter 10a, the following terms have the
meanings set forth below:
1. Debit or Debit MasterCard Card or Debit Card shall mean any
MasterCard consumer device, program, or card issued in New Zealand, by
a New Zealand Customer, that when presented for payment in New
Zealand, accesses, debits, holds, or settles funds from a consumers
demand deposit or asset account.
Debit or Debit MasterCard Card shall include consumer signature debit
programs, stored value programs, prepaid cards, payroll cards, electronic
benefit transfer cards, and deferred debit cards that access, debit, hold, or
settle funds from the users demand deposit or asset account less than
fourteen days after the date of purchase. Debit shall not include any
point-of-sale device that accesses, debits, hold, or settles funds from the
users demand deposit or asset account fourteen or more days after the
date of the purchase.
2. Other MasterCard Card shall mean any MasterCard device, program, or
card that is not defined as debit or Debit MasterCard Card.

Rule 2.6 of Chapter 2, Licensing and Licensed Activities, does not apply in
New Zealand.

10a-1
New Zealand Rules


Rule 2.7 of Chapter 2, Licensing and Licensed Activities, is modified as
follows:
Customers must use specific and unique bank identification numbers (BINs)
for Debit MasterCard Cards. Acquirers must provide a complete list of the
BINs that apply to Debit MasterCard Cards to Merchants upon any form of
reasonable request.

Rule 4.2.6.6 of Chapter 4, Trademarks and Service Marks, is modified as
follows:
Customers must display (i) the Debit MasterCard Hologram instead of the
MasterCard Global Hologram on the front of all Debit MasterCard Cards issued
in New Zealand, in the position required for the MasterCard Global Hologram,
or (ii) the Debit word mark on the card front if the Debit MasterCard
Hologram is on the Card back.
Debit MasterCard Cards must conform to the Standards set forth in the Security
Rules and Procedures manual and the Card Design Standards System.

Rule 5.1.2 of Chapter 5, Merchants, is modified to include the following:
Merchant Agreements must provide the Merchant with the option, and the
applicable Merchant discount rate for each option, to elect to accept Debit
MasterCard Cards only, Other MasterCard Cards only, or both Debit MasterCard
Cards and Other MasterCard Cards. A Merchant may choose to stop accepting
Debit MasterCard Cards or Other MasterCard Cards by providing no less than
30 days advance written notice to its Acquirer.
10a-2

New Zealand Rules


Rule 5.8.1 of Chapter 5, Merchants, is modified as follows:
Honor All Debit MasterCard Cards. Subject to Rule 5.11.1 of this Chapter 10a,
Merchants that choose to accept Debit MasterCard Cards must honor all valid
Debit MasterCard Cards without discrimination when properly presented for
payment. Merchants must maintain a policy that does not discriminate among
customers seeking to make purchases with a Debit MasterCard Card.
Honor All Other MasterCard Cards. Subject to Rule 5.11.1 of this Chapter 10a,
Merchants that choose to accept Other MasterCard Cards must honor all Other
MasterCard Cards without discrimination when properly presented for
payment. Merchants must maintain a policy that does not discriminate among
customers seeking to make purchases with Other MasterCard Cards.

Merchants that accept Cards may choose to accept Debit MasterCard Cards
only, Other MasterCard Cards only, or both Debit MasterCard cards and Other
MasterCard cards.
Acquirers must advise the Corporation when a New Zealand merchant chooses
not to accept either Debit MasterCard Cards or other MasterCard Cards.

The Corporation will not consider steering at the point of sale by offering
discounts, promotions, or financial incentives to encourage an alternate form
of payment (including as between Cards and EFT POS cards, or cards from
different schemes, or different types of Cards) of itself to constitute a breach of
Rule 5.11.1 or any other rule. Further, the Corporation will not consider
merchant surcharging pursuant to Rule 5.11.2 of this Chapter 10a to constitute
a breach of Rule 5.11.1.

10a-3
New Zealand Rules


Rule 5.11.2 of Chapter 5, Merchants, does not apply in New Zealand.
If a Merchant applies a surcharge for payment by Card, the amount or method
of calculation of the surcharge must be clearly indicated to the Cardholder at
the time of purchase and must bear reasonable relationship to the Merchants
cost of accepting Cards.

Rule 9.4 of Chapter 9, Settlement, is modified to exclude Intracountry
Transactions from the list of Transactions for which the Corporation may
establish default interchange and service fees.

Fees
Rule 9.5 of Chapter 9, Settlement, is replaced in its entirety with the
following:
This Rule 9.5 is applicable only to Intracountry Transactions and intracountry
cash disbursements.
Intracountry Transactions
The Corporation will establish and publish on its Web site containing content
specific to New Zealand and in such other manner as the Corporation deems
appropriate, maximum interchange fees for all Intracountry Transactions
(herein, the MasterCard maximum interchange fee). Issuers and Acquirers
may negotiate bilateral interchange fees (subject to any MasterCard maximum
interchange fee) and Issuers may determine interchange fees applicable to
their Intracountry Transactions (subject to any bilateral agreements and subject
to any MasterCard maximum interchange fee). Issuers must ensure that with
respect to each of their Intracountry Transactions, neither a negotiated bilateral
interchange fee nor an interchange fee set by the Issuer results in an
interchange amount with respect to that Intracountry Transaction that exceeds
the interchange amount payable pursuant to the maximum interchange fee set
by the Corporation.
10a-4

New Zealand Rules

An Issuer must promptly notify the Corporation of the interchange fees

applicable to its Intracountry Transactions, said fees must not exceed the
maximum interchange fee set by the Corporation. If an Issuer does not
provide the Corporation with an interchange fee that applies to each of its
Intracountry Transactions, then the Corporation will process the Transaction on
the basis of a zero interchange fee.
Each Issuer must publish the intracountry interchange fees notified to the
Corporation on its Web site except for those interchange fees which are
subject to a bilateral agreement. The Corporation either will publish on its
Web site containing content specific to New Zealand the Issuers intracountry
interchange fees (except for those interchange fees which are subject to a
bilateral agreement) or will provide a link from its Web site to the relevant
page of the Issuers Web site.
9.5.1 Default Intracountry Fees

Rule 9.5.1 of Chapter 9, Settlement, is modified to exclude default fees
established for Intracountry Transactions by the affirmative vote of Customers
that hold a License for the country and represent at least 75 percent of the
intracountry issuing Volume (excluding On-Us Volume) and at least 75 percent
of the intracountry acquiring Volume (excluding On-Us Volume) in the
preceding calendar year. For the avoidance of doubt, Rule 9.5.1 applies in its
entirety to intracountry cash disbursements.
9.5.2 Intraregional Fees

Rule 9.5.2 of Chapter 9, Settlement, is modified to exclude intraregional or
interregional fees from applying by default to Intracountry Transactions. For
the avoidance of doubt, Rule 9.5.2 applies in its entirety to intracountry cash
disbursements.

10a-5
11
Canada Region Rules

This chapter contains Rules that apply only to the Canada Region.

5.2 Acquirer Obligations ................................................................................... 11-2
5.2.4 Payments to Merchants ...................................................................... 11-2
8.4.3 MasterCard PayPass Transactions...................................................... 11-3

11-i
Canada Region Rules


that apply in the Canada Region.

Unauthorized Use
The following applies with respect to Canada Region Cardholders:
1. Limitation on amount. The liability of a Cardholder for unauthorized use
of a Card (regardless of the type of account to which Transactions initiated
with such Card are posted) shall not exceed
a. CAD 0 if the conditions set forth in paragraph 2, below, have been
met, or
b. if the conditions set forth in paragraph 2 have not been met, the lesser
of CAD 50 or the amount of money, property, labor, or services
obtained by the unauthorized use before notification to the Issuer.
2. Conditions to CAD 0 liability. The liability limitations set forth in clause
(i) of paragraph 1, above, shall apply only if
a. the Cardholder has exercised reasonable care in safeguarding such
Card from risk of loss or theft;
b. the Cardholder has not reported two or more incidents of unauthorized
use to the Issuer in the immediately preceding 12-month period; and
c. the account to which Transactions initiated with such Card are posted
is in good standing.
3. Effect of other applicable law agreement. If federal, provincial or local
law, or an agreement between a Cardholder and the Issuer of a Card
Card are posted) imposes lesser liability than that provided in this Rule, the
lesser liability shall govern.
4. Unauthorized use. For purposes of this Rule, unauthorized use means
5. Nonapplicability. This Rule shall not apply to Cards issued
a. to an entity other than a natural person; or
b. primarily for business, commercial, or agricultural purposes.

11-1
Canada Region Rules


5.2.4 Payments to Merchants
Each Customer that acquires Transactions from Canadian Merchants must have
a deposit account for each Merchant from which it acquires such Transactions,
and the proceeds of such Transactions must be deposited by the Customer in
such Merchants deposit account.

Interaction
The use of an Affinity Card Program or Co-Brand Card Program Card to
activate a discount or other benefit at the POI that is not available on similar
purchases with the use of any other Card is permitted for Transactions effected
wholly within the Region. The determination of whether any such discount or
other POI benefit practice complies with the Standards is at the sole discretion
of the Corporations staff.

Terminals
modified to include the following:
For purposes of these Rules, EMV chip-compliant means operating any chip
device including cards, ATMs, point-of-interaction (POI) terminals, electronic
cash registers (ECRs), PIN pads, and terminals that are in accordance fully with
the Standards relative to EMV standards; and chip/PIN-compliant means
issuing hybrid PIN-preferring Cards or operating hybrid PIN-capable terminals
as such terms are defined in section 2.10.1.1 of the Chargeback Guide.
1. Chip Liability Shift. The liability for Canada intraregional counterfeit
Transactions in which one Customer (either the Issuer or the Acquirer) is
not yet EMV chip-compliant is borne by the non-EMV chip-compliant
Customer. Message reason code 4870 (Chip Liability Shift) does not apply
to:
11-2

Canada Region Rules

a. intraregional MasterCard PayPass Transactions under the chargeback

protection amount and
b. until 31 December 2012, Transactions occurring at automated fuel
dispenser Transactions identified with MCC 5542.
2. Chip/PIN Liability Shift. The liability for Canada intraregional lost, stolen,
and never-received-issue Transactions in which one Customer (either the
Issuer or the Acquirer) is not yet able to support chip/PIN Transactions will
be borne by the non-chip/PIN-compliant Customer. Message reason code
4871 (Chip/PIN Liability Shift) does not apply to:
a.
intraregional MasterCard PayPass Transactions under the chargeback

protection amount and
b. until 31 December 2012, Transactions occurring at automated fuel

dispenser Transactions identified with MCC 5542.
Refer to Appendix C of the Chargeback Guide for chargeback protection
amount information.

Proof of a Cardholder Verification Method (signature or PIN) is not a valid
second presentment remedy under message reason code 4837 (No Cardholder
Authorization) for an intraregional MasterCard PayPass Transaction that
exceeds the chargeback protection amount.

2 (an AFD Transaction) occurring at a Merchant located in the Canada
region, then within 60 minutes of the time that the authorization request
message was sent, the Acquirer must send an authorization advice message
advising the Issuer of the Transaction amount.
has placed a hold on Cardholder funds in excess of CAD 1, then within 60
Transaction amount.

11-3
11a
Canada Region Code of Conduct Related Rules

This chapter contains Rules that apply only to the Canada Region.

Definitions ....................................................................................................... 11a-1
3.6 Provision and Use of Information ............................................................ 11a-2
3.6.1 Obligation of Customer to Provide Information ............................. 11a-2
3.6.1.2 Information to Merchants ....................................................... 11a-2
3.8 Authorization Service ................................................................................ 11a-3
3.8.1 Selective Authorization .................................................................... 11a-3
3.13 Accounts on a Card ................................................................................. 11a-3
4.2.6.6 Use on Cards ........................................................................... 11a-3
4.2.13 Use of Other Acceptance Marks on Cards .................................... 11a-3
5.8.1 Honor All Cards................................................................................ 11a-4

11a-i


that apply to:
1. Cards issued in the Canada Region and presented for payment in the
Canada Region;
2. Transactions that take place in the Canada Region; and
3. Merchants and Acquirers of those Transactions.
Customers and Merchants must continue to comply with the global Rules with
respect to Cards (as defined in the global Rules) issued by Customers outside
of the Canada Region and presented for payment at Merchant locations in the
Canada Region, unless otherwise agreed by the Corporation.
Definitions
Solely for purposes of Rules in this Chapter 11a, the following terms have the
meanings set forth below:
1. Card shall mean a card issued by a Customer pursuant to License and in
accordance with the Standards that provides access to a credit and debit
MasterCard account. Unless otherwise stated herein, this definition does
not include an Access Device or a Mobile Payment Device.
2. Cardholder shall mean the authorized user of a Card issued by a
Customer.
3. Debit MasterCard Card or Debit Card shall mean any Card issued in the
Region, by a Regional Customer, that when presented for payment in
Canada, accesses, debits, holds, or settles funds from a consumers demand
deposit account.
4. Other Card shall mean any Card that is not defined as a Debit Card or
Debit MasterCard Card.
5. Premium Card shall mean a Card that is issued in the Region by a
Regional Customer to a well-defined class of Cardholders in accordance
with MasterCard requirements and specification for same.
6. Transaction shall mean the sale of goods or services by a Merchant to a
Cardholder pursuant to acceptance of a Card by the Merchant.

11a-1


Rule 2.6 of Chapter 2, Licensing and Licensed Activities, is modified to
include the following:
Premium Cards may only be provided to a well-defined class of Cardholders,
based on individual spending and/or income thresholds. An Issuer may only
provide a Premium Card to a person that has applied for or consented to
receiving a Premium Card.

Acquirers must provide a minimum of ninety (90) days notice to Merchants of
any fee increases, or the introduction of a new fee related to any Card or
Transaction. A Merchant may opt out of its Merchant Agreement, without
penalty by the Acquirer, within ninety (90) days of receiving notice of the fee
increase or introduction of a new fee. A Merchant may not opt out of the
Merchant Agreement if the fee increase is made in accordance with a predetermined fee schedule, provided such fee schedule is included in the
Merchant Agreement.
An Acquirer must obtain the Merchants express consent each time a Card with
new Marks, or a Card with Marks not previously accepted by the Merchant,
will be accepted by the Merchant.
Acquirers must provide monthly statements to Merchants that include sufficient
level of detail and are easily understood. Merchant statements must include:
1. The discount rate for each Card associated with a unique interchange
program;
2. Interchange rates, and if applicable, all other rates charged to the Merchant
by the Acquirer;
3. The number and volume of Transactions associated with a unique
interchange program;
4. The total amount of fees applicable to each rate; and
5. Details of each fee that relate to the Corporation.
11a-2



Rule 3.8.1 of Chapter 3, Customer Obligations is modified to include the
following:
For the purpose of effecting a Transaction, an Issuer must not place competing
domestic applications of other payment card networks on a Debit Card. An
issuer may place complementary domestic applications on a Debit Card.

An Issuer must not issue a Card that provides access to a Debit Card account
and to an Other Card account on the same Card. A Card may be either a
Debit Card or an Other Card, but must not be both a Debit Card and an Other
Card.

Rule 4.2.6.6 of Chapter 4, Trademarks and Service Marks, is modified to
Clear and Conspicuous Debit Identifier. Customers must display:
1. the Debit MasterCard Hologram instead of the MasterCard Global

Hologram on all Debit MasterCard Cards issued in Canada, in the position
required for the MasterCard Global Hologram, or
2. the Debit word mark on the Card front if the Debit MasterCard Hologram
is on the Card back. Debit MasterCard Cards must conform to the
Standards set forth in the Card Design Standards.

Rule 4.2.13 of Chapter 4, Trademarks and Service Marks, is modified to

11a-3

When the Marks appear on a Debit Card that contains other acceptance marks,
no other acceptance mark, symbol or logo may be or appear to be larger or
more important than the Marks. To maintain visual parity, the Marks must be
at least as prominent as and be at least the same size and color treatment as
any other acceptance mark on the Card. When other acceptance marks appear
on a Debit Card, those marks must appear on the same side of the Debit Card
as the Marks.

Rule 5.8.1 of Chapter 5, Merchants, is replaced with the following:
Honor All Debit MasterCard Cards. Merchants that choose to accept Debit
MasterCard Cards must honor all valid Debit MasterCard Cards without
discrimination when properly presented for payment. The Merchant must
maintain a policy that does not discriminate among customers seeking to make
purchases with a Debit MasterCard Card.
Honor All Other MasterCard Cards. Merchants that choose to accept Other Cards
must honor all Other Cards without discrimination when properly presented
for payment. The Merchant must maintain a policy that does not discriminate
among customers seeking to make purchases with another Card.

In addition to a discount for cash, a Merchant may provide a discount to its
customers for other forms of payment, including differential discounts for other
payment brands. Such discounts must be clearly communicated at the Point of
Interaction.
11a-4

12
Europe Region Rules

This chapter contains Rules that apply only in the Europe Region.

Definitions ......................................................................................................... 12-1
1.2 Eligibility to be a Customer......................................................................... 12-2
1.2.1 Principal or Affiliate ........................................................................... 12-2
2.3 Area of Use .................................................................................................. 12-3
2.3.1 Extending or Otherwise Modifying the Area of Use ........................ 12-3
2.3.2 Central Acquiring ............................................................................... 12-3
2.3.2.1 Central Acquiring Registration .................................................. 12-3
2.3.2.2 Central Acquirer Service Requirements .................................... 12-4
2.3.2.3 Intracountry Rules ..................................................................... 12-4
2.3.2.4 Centrally Acquired Merchants .................................................. 12-5
2.3.2.4.1 Updating of Merchant Details ......................................... 12-5
2.3.2.5 Registration Procedure .............................................................. 12-5
2.3.2.6 Extension of Registration .......................................................... 12-6
2.3.2.7 Interchange Fee Requirements ................................................. 12-6
2.3.2.8 Settlement of Disputes .............................................................. 12-6
2.3.2.9 Customer Noncompliance ........................................................ 12-7
3.1 Standards ..................................................................................................... 12-7
3.1.3 Rules Applicable to Intracountry Transactions ................................. 12-7
3.1.3.1 Order of Precedence ................................................................. 12-8
3.1.4 Communication of Intracountry Fallback Rules................................ 12-8
3.4 Choice of Laws ............................................................................................ 12-9
3.6.1 Obligation to Provide Information .................................................... 12-9
3.6.1.1 Information to Cardholders .................................................... 12-10
3.6.1.2 Information to Merchants ....................................................... 12-11
3.6.5 Data Protection................................................................................. 12-12
3.6.5.1 Processing of Transaction-Related Personal Data.................. 12-12
3.6.5.2 Data Subject Notice and Consent ........................................... 12-13
3.6.5.3 Data Subject Access to Personal Data .................................... 12-13
12-i
Europe Region Rules
3.6.5.4 Integrity of Personal Data ....................................................... 12-14

3.8 Authorization Service ................................................................................ 12-14
3.8.3 Stand-In Processing Service ............................................................. 12-14
3.8.4 Issuer Performance Standards.......................................................... 12-14
3.8.4.1 Issuer Failure Rate (Substandard Performance) ..................... 12-14
3.8.4.2 Calculation of the Issuer Failure Rate .................................... 12-14
3.8.4.3 Assessments for Substandard Performance............................ 12-15
5.1 The Merchant Agreement.......................................................................... 12-15
5.1.2 Required Terms ................................................................................ 12-15
5.8 Card Acceptance Requirements ................................................................ 12-16
5.8.2 Merchant Acceptance ....................................................................... 12-16
5.13 Discounts or Other Benefits at the Point of Interaction ........................ 12-16
6.2 Affinity and Co-Brand Card Programs ...................................................... 12-16
6.3 Co-Residing Applications .......................................................................... 12-17
6.3.1 Definitions ........................................................................................ 12-17
6.3.2 Basic Requirements .......................................................................... 12-17
6.3.3 Notification ....................................................................................... 12-17
8.1.1 Euro Migration.................................................................................. 12-17
8.3 Card Acceptance Procedures .................................................................... 12-19
8.3.3 Obtaining an Authorization ............................................................. 12-19
8.3.3.1 When to Obtain an Authorization .......................................... 12-19
8.3.5 Completing the Transaction ............................................................. 12-19
8.3.5.1 TID Information Requirements............................................... 12-19
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 12-20
8.4.2 Card-Not-Present Transactions ........................................................ 12-20
12-ii

Europe Region Rules
8.4.5 Purchase with Cash Back Transactions ........................................... 12-21

8.4.9 Payment Transactions ...................................................................... 12-23
8.4.9.1 Gaming Payment Transactions ............................................... 12-23
8.8 Use of Automatic Billing Updater ............................................................. 12-25
8.8.1 ABU Support by Acquirers ........................................................ 12-25
8.8.2 ABU Support by Issuers ............................................................ 12-25
8.9.2 Maximum Cash Disbursement Amounts ......................................... 12-25

12-iii
Europe Region Rules


that apply in the Europe Region.
Refer to Appendix A for the Europe Region geographic listing.
Definitions
Solely for the purposes of Rules in this Chapter 12 and in Chapters 12a and
12b, the following terms have the meanings set forth below.
1. Commercial Card means in the EEA a Card issued to an undertaking or
public sector entity or one of its employees and that is intended for use in
connection with business expenses made by that undertaking or public
sector entity or by its employee, or a Card issued to a self-employed
natural person engaged in a business activity and that is intended for use
for business expenses. Cards fitting the above definition that are in
issuance in the EEA after 31 December 2010 must be identifiable as
Commercial Cards.
2. Consumer Card means in the EEA a Card issued to a natural person that
is not used primarily for business expenses.
3. Credit Card means in the EEA a Consumer Card that allows the
cardholder to make purchases with a certain credit amount, which can be
settled in full by the end of a specified period (which typically is interestfree) or can be settled in part, with the remaining balance being taken as
credit and charged with interest. A Credit Card may be linked to a current
account at a deposit-taking institution or to an account that has been set
up specifically for the use of the Credit Card. Credit Cards include charge
(or delayed debit) Cards. A charge (or delayed debit) Card is a Card that
allows the Cardholder to make purchases but does not offer credit, the
amount of the debit having to be settled in full only after a specified
period (which typically is interest-free). A charge (or delayed debit) Card
may be linked to a current account at a deposit-taking institution or to an
account that has been set up specifically for the use of the charge (or
delayed debit) Card.

12-1
Europe Region Rules

4. Debit Card means in the EEA a Consumer Card that allows a cardholder
to charge purchases directly to a current account at a deposit-taking
institution. The Debit Card serves as a device to access funds in a current
account. A Debit Card Transaction is always directly charged to a current
account i.e. no later than two business days after the clearing of the
Transaction, whereas a Credit (or charge or delayed debit) Card
Transaction may be settled by the end of a specified period or charged to a
current account more than two business days after the clearing of that
Transaction. Cards fitting the above definition that are in issuance in the
EEA after 31 December 2010 must be identifiable as Debit Cards.
5. European Economic Area (EEA) means the following countries: Austria,
Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and United
Kingdom.
6. Intra-SEPA Transaction means a Transaction completed using a Card
issued in a country or territory included in the SEPA geographic listing in
Appendix A at a point of interaction located in a country or territory
included in the SEPA geographic listing in Appendix A.
7. Non-Intracountry Transaction means a Transaction completed at a
Merchant located outside the country in which the Card is issued.
8. Payment Scheme means MasterCard Incorporated, including all of its
subsidiaries and affiliates, its products and services, the Standards that
govern the products and services, and its Customers.

1.2.1 Principal or Affiliate
In the EEA, Rule 1.2.1 of Chapter 1, Participation, is modified as follows:
It is not required that financial transactions constitute substantially all of the
business conducted by a financial institution located in the EEA that does not
take deposits.
12-2

Europe Region Rules

2.3 Area of Use
2.3 Area of Use

Rule 2.3 of Chapter 2, Licensing and Licensed Activities, is modified as
follows:
An Issuer must use an ICA for Card issuance that accurately reflects the Area of
Use in the corresponding License. An Issuer must use a BIN or BIN range for
Card issuance that accurately reflects the Area of Use in the corresponding
License. Different ranges within a BIN may be linked to ICAs assigned for
different Areas of Use.
2.3.1 Extending or Otherwise Modifying the Area of Use

Rule 2.3.1, paragraph 8, part (a) of Chapter 2, Licensing and Licensed
Activities, is modified with respect to Merchants located and acquired in the
Europe Region as follows:
The ICA number under which e-commerce Transactions are acquired must
reflect either the country in which the Merchant is located or another country
in the Europe Region.
2.3.2 Central Acquiring

The rules in this section apply in the Europe Region in place of Rule 2.3.1,
paragraphs 5, 6, 7, and 8.
Provided that they comply with the provisions of this Rule, Customers that
hold a License may centrally acquire Transactions of Merchants as described in
Rule 2.3.2.4, including those undertaken in countries for which the Customer
does not hold a License. Customers must not acquire Transactions from
Merchants situated outside their Area of Use, except pursuant to this Rule
2.3.2.
This Rule 2.3.2 applies to central acquiring in the Europe Region by Customers
with a License for any Europe Region country.
2.3.2.1 Central Acquiring Registration

Customers must have completed the central acquiring registration process
before they centrally acquire. The central acquiring registration letter specifies
the countries in which a Customer may centrally acquire intraregional
Merchant Transactions.

12-3
Europe Region Rules

2.3 Area of Use
2.3.2.2 Central Acquirer Service Requirements

The Customer must authorize, clear and settle centrally acquired Transactions
in a manner that does not disadvantage the Cardholder, the Merchant or the
Issuer involved in the Transaction in comparison with non-centrally acquired
Transactions. The Customer must also comply with the requirements defined
below.
1. Authorizations
Central Acquirers must provide Issuers with all information required in the
authorization request, as set forth in the Customer Interface Specification
manual.
A central Acquirer must be able to provide local language voice
authorization services, itself or through a local Acquirer, at the cost of a
local call if the authorization system is not available or in a country where
Transactions cannot be authorized electronically. If the central Acquirer
and local Acquirer cannot agree on a price for these services, the following
rates will apply:
Voice authorization: EUR 4
Call referral: EUR 8.
2. Clearing
Central Acquirers must provide details in the clearing record of the
location, city and country where the Transaction took place.
For specific Merchant sectors, central Acquirers must provide additional
information in the clearing record if required by the Europe Region, using
the message formats detailed in the IPM Clearing Formats manual.
2.3.2.3 Intracountry Rules

Central Acquirers must comply with the intracountry rules of a country in
which they centrally acquire Transactions.
The Corporation will provide central Acquirers, on request, with the
intracountry rules of the country or countries covered by the request. The
administrative fee for this service, as set forth in the MasterCard Consolidated
Billing SystemEurope SEPA Region or MasterCard Consolidated Billing
SystemEurope non-SEPA Region manual as applicable, or elsewhere, must be
paid at the time when the request is made and before the rules are sent.
12-4

Europe Region Rules

2.3 Area of Use
2.3.2.4 Centrally Acquired Merchants

An Acquirer may centrally acquire Transactions from any Merchant located in
any one of the following Western or Central European countries: Andorra,
Austria, Belgium, Bulgaria, Channel Islands, Czech Republic, Cyprus, Denmark,
Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland,
Ireland, Isle of Man, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,
Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino,
Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom,
Vatican City.
In all other Europe Region countries, an Acquirer may only centrally acquire
Transactions of a Merchant that:
1. Operates in more than two Europe Region countries either directly; or
through wholly-owned subsidiaries; or through a joint venture that requires
consolidation on the balance sheet of the central company; or under the
same brand name through franchise and/or management contracts.
2. Operates a centrally managed delivery system that services subsidiaries and
local operators and is used to process orders, reservations, sales or
payments; supports the delivery of services (for example, tickets/contracts)
or goods; and manages stock or service availability.
3. Operates a centrally managed accounting system that monitors treasury
and cash management and payment collections and is used to channel and
support payment system authorizations.
2.3.2.4.1 Updating of Merchant Details
To ensure correct system implementation and transaction monitoring, central
Acquirers must inform the Corporation of any changes to the Merchant details
of any Merchant (excluding Merchants in Western and Central European
countries) where Transactions are centralized, including changes to the
Merchants name and address and to the MCC used for centrally acquired
Transactions. The changes must be communicated by submitting a central
acquiring application form that contains the new details. If changes to
Merchant details are not communicated within 30 business days of receipt of a
warning letter, the assessment for centrally acquiring Transactions from a nonnotified Merchant will be applied.
2.3.2.5 Registration Procedure

To register to centrally acquire in the Western and Central European countries
listed in Rule 2.3.2.4 above, the Customer must submit to the Corporation a
single application form covering all such Western and Central European
countries. The central acquiring registration letter will cover all such Western
and Central European countries.

12-5
Europe Region Rules

2.3 Area of Use
To register to centrally acquire in other countries, the Customer must submit to

the Corporation an application form for each Merchant and country where the
Customer wishes to centrally acquire Transactions.
2.3.2.6 Extension of Registration

In the Western and Central European countries listed in Rule 2.3.2.4 above, a
central Acquirer is not required to comply with any formal procedures in order
to extend its central acquiring Activities to a new country in Western and
Central Europe.
In all other countries, a Customer that wishes to extend its central acquiring
Activities to a new Merchant or country must follow the registration procedure
set forth in Rule 2.3.2.5 above.
2.3.2.7 Interchange Fee Requirements

If a central Acquirer acquires an Intracountry Transaction, the following
principles apply to the interchange fee:
1. The central Acquirer may agree upon bilateral interchange fees with the
Issuer; and
2. Unless a bilateral agreement applicable to an Intracountry Transaction has
been established between two Customers, the interchange fees applicable
to an Intracountry Transaction set forth in Rule 9.5 will apply.
If a central Acquirer acquires a Non-Intracountry Transaction, the following
principles apply to the interchange fee:
1. The central Acquirer may agree upon bilateral interchange fees with the
Issuer; and
2. Unless a bilateral agreement applicable to a Non-Intracountry Transaction
has been established between two Customers, the interchange fees
applicable to a Non-Intracountry Transaction set forth in Rule 9.4 will
apply.
2.3.2.8 Settlement of Disputes

Any disputes relating to central acquiring will be resolved by the Corporation
in accordance with the Standards.
12-6

Europe Region Rules

2.3.2.9 Customer Noncompliance

The following are examples of violations of the central acquiring rules for
which noncompliance assessments may be applied:
1. Engaging in central acquiring without first registering,
2. Engaging in central acquiring in non-notified countries or of non-notified
Merchants (not applicable for Western and Central European countries).
3. Failure to comply with intracountry rules (including application of incorrect
interchange fees) resulting in financial loss to another party.
4. Incorrect data in network messages (including incorrect country code)
resulting in financial loss to another party.

the EEA.
3.1 Standards
3.1.3 Rules Applicable to Intracountry Transactions
The following are additional Rules applicable to intracountry Transactions.
Refer to Rule 9.5 of Chapter 9, Settlement, regarding the establishment of
intracountry interchange fees and intracountry service fees.
The Corporation may establish Rules for Intracountry Transactions. The
Corporation will inform Customers of all Rules it establishes.
If Rules for Intracountry Transactions are not established by the Corporation,
the following two options apply as regards establishment of the rules to be
applied to Intracountry Transactions. Customers may change from one option
to another upon notice in writing to the Corporation, and fulfillment of any
requirements associated with the new option.
Global Rules (including Europe Region Rules)
Customers may apply the Rules (including the Europe Region Rules) to
Intracountry Transactions. If the other option does not apply, then this option
applies by default.

12-7
Europe Region Rules

3.1 Standards
Intracountry Fallback Rules (75 percent Rule)
If permitted by local law, Customers holding Licenses for the country

(including SEPA Licenses) and representing, during the year preceding the
agreement, at least 75 percent of each of the Card issuing and acquiring
intracountry Volumes (excluding on-us Volumes), have the power to agree on
fallback Rules applicable to all Intracountry Transactions, including those
acquired by Customers outside the country. Intracountry fallback rules must
be agreed by at least two Issuers and at least two Acquirers Licensed to engage
in Activity in the country.
The percentage is calculated separately for each Card product, as determined
by the Card product identifier and functionality (for example, POS vs. cash
disbursement).
Intracountry fallback rules remain in effect until changed or challenged. If
intracountry fallback rules are challenged because the Customers agreeing to
them no longer meet the 75 percent threshold, the Rules (including the Europe
Region Rules) will apply in their place, as from the date when the Corporation
has determined that the 75 percent threshold is no longer met.
Intracountry fallback rules must be non-discriminatory, justifiable and not in
conflict with the Rules (including the Europe Region Rules and any Rules
established by the Corporation for Intracountry Transactions). Intracountry
fallback Rules must not discriminate against Cardholders (including
international Cardholders) or jeopardize the integrity of the Payment Scheme.
3.1.3.1 Order of Precedence

For any Intracountry Transaction, the intracountry Rules established by the
Corporation apply, or if none, the intracountry fallback rules established by
Customers pursuant to the preceding Rule apply, or if none, the intraregional
Rules apply, or if none, the interregional Rules apply.
3.1.4 Communication of Intracountry Fallback Rules

Customers that agree to intracountry fallback rules must provide the
Corporation with a copy of such rules as well as with any subsequent changes
to those rules. The Corporation must be notified of intracountry fallback rules
well in advance of their effective dates, unless exceptional circumstances make
this impossible. Exceptional circumstances must be related to events beyond
the control of the Customers, such as a change in laws or regulations,
compliance with which requires immediate action.
Intracountry fallback rules that have not been provided to and acknowledged
by the Corporation are not applicable.
12-8

Europe Region Rules

3.4 Choice of Laws
The Corporation will endeavor to publish intracountry fallback rules and their
revisions at least three calendar months prior to their effective dates. If
exceptional circumstances apply, the period will not be less than one calendar
month before the effective date. If necessary, the initially notified effective
date will be delayed to respect these time frames.
3.4 Choice of Laws

Rule 3.4 of Chapter 3, Customer Obligations, is replaced in its entirety by the
following:
Licenses are governed by and construed according to the applicable law
mentioned in the particular License, without reference to conflict-of-laws or
similar provisions that would mandate or permit application of the substantive
law of any other jurisdiction
The courts mentioned in the particular License have exclusive jurisdiction for
the resolution of any dispute relating to rights and obligations deriving from
Licenses.
Licenses concluded after 1 January 2007 specify English law and courts.
The Standards are governed by and construed according to English law,
without reference to conflict-of-laws or similar provisions that would mandate
or permit the application of substantive law of any other jurisdiction. English
courts have exclusive jurisdiction for the resolution of any dispute relating to
the Standards between two Customers holding Licenses for countries in the
Europe Region.

3.6.1 Obligation to Provide Information
Rule 3.6.1 of Chapter 3, Customer Obligations, is modified to include the
following.
The Customer must provide to the Europe Region the following information on
its plans to issue chip Cards and/or acquire chip Transactions:
1. Number of chip Cards; and
2. Number of chip terminals.

12-9
Europe Region Rules


The following additional Rules apply in the Europe Region.
The Issuer must provide information to its Cardholders as set forth below, in
addition to any information required under applicable laws or regulations.
The Europe Region may ask an Issuer to certify its compliance with these
Standards.
1. Before the Card is Used
The Issuer must make information available to Cardholders as to where the
Card may be used (that is, wherever, at home or abroad, the relevant Mark
is displayed). The Issuer must also provide the following information to
the Cardholder:
a. The price of the Card.
b. Specific charges, if any, to be paid to the Issuer for the kind(s) of
service (both at home and abroad) provided through the Card.
Examples of these charges are: cash advance fee, ATM usage fee, and
interest rate(s) to be applied to credit Card accounts.
c. The basis for calculation of the exchange rate.
d. Notice that exchange rates can fluctuate and that they may change
between the time when the transaction is made and the time when it is
billed to the Cardholders account.
e. For credit and charge Cards, information concerning any auxiliary
charges applicable to the account linked to the Card: for example, fees
for additional statements, account excess fees and late payment fees.
f.
The Cardholders liability, including the cost, if the Card is lost or

stolen. This information must be stated clearly in the body of the
product literature. The Cardholder must also be told what to do if the
Card is lost or stolen.
g. The standard limit, if any, up to which the Cardholder can use the
Card.
h. Information concerning when the Transaction is likely to be billed to
the Cardholders account.
i.
Information required to be provided by Rule 3.6.5.2 herein.
2. At the Time of Billing the Transaction

As applicable, the following information must be provided to the
Cardholder:
a. Transaction type (for example sale, ATM cash withdrawal, cash
advance), and location (if technically feasible).
b. Amount in Transaction currency.
12-10

Europe Region Rules

c. Amount in billing currency.

d. Exchange rate applied.
e. Total commission applied (if applicable).
f.
Interest rate applied (if applicable).

This additional Rule applies only in the EEA.
An Acquirer:
must inform existing and prospective Merchants that interchange fees and
rules set by the Corporation are available on the MasterCard public Internet
site (www.mastercard.com);
must inform existing and prospective Merchants that they may apply
different surcharges to Credit Card Transactions, Commercial Card
Transactions, Debit Card Transactions and Maestro transactions, while
respecting Rule 5.11.2 (Charges to Cardholders) of this Chapter 12.
must inform existing and prospective Merchants that they are not obliged
to accept Maestro cards and/or the cards of any other network as a
condition for accepting Cards;
may not prohibit existing or prospective Merchants from entering into a

Merchant Agreement with any other Acquirer with respect to Credit Card
Transactions, Commercial Card Transactions, Debit Card Transactions,
Maestro transactions and/or the transactions of other card networks, unless
the Merchant elects to enter into a Merchant Agreement solely with the
Acquirer.
must provide to existing and prospective Merchants pricing information

that specifies separately (including separately from those of any other card
network) the financial terms to be applied to Credit Card Transactions,
Commercial Card Transactions, Debit Card Transactions and Maestro
transactions, unless the Merchant elects that the Acquirer shall not have to
provide such separate pricing information; and
must indicate on Merchant invoices the number of Transactions, Volume

and total amount of the Merchant service charge separately (including
separately from those of any other card network) for Credit Card
Transactions, Commercial Card Transactions, Debit Card Transactions and
Maestro transactions, unless the Merchant elects that the Acquirer shall not
have to provide such separate invoice information.

12-11
Europe Region Rules

3.6.5 Data Protection

The following are additional Standards relating to Personal Data. The following
definitions are solely for the purposes of Rule 3.6.5 of this chapter:
1. Controller means the entity which alone or jointly with others determines
the purposes and the means of the Processing of Personal Data.
2. Data Subject means a Cardholder or Merchant, or other natural or legal
person (to the extent a legal person is subject to national data protection
law) whose Personal Data are processed by a Customer in the EEA or
Switzerland and the Corporation.
3. EU Privacy Directive means, collectively, Directive 95/46/EC of the
European Parliament and of the Council of 24 October 1995 on the
protection of individuals with regard to the processing of personal data
and on the free movement of such data and Directive 2002/58/EC of the
European Parliament and of the council of 12 July 2002 concerning the
processing of personal data and the protection of privacy in the electronic
communications sector, as may be amended from time to time.
4. Personal Data means any information relating to an identified or
identifiable natural person; an identifiable natural person is one who can
be identified, directly or indirectly, in particular, by reference to an
identification number or to one or more factors specific to his or her
physical, physiological, mental, economic, cultural, or social identity.
5. Processor means the entity which processes Personal Data on behalf of a
Controller.
6. Processing of Personal Data means any operation or set of operations
which is performed upon Personal Data, whether or not by automatic
means, such as collection, recording, organization, storage, adaptation or
alteration, retrieval, consultation, use, disclosure by transmission,
dissemination or otherwise making available, alignment or combination,
blocking, erasure or destruction of such data.
7. Transaction-related Personal Data means Personal Data required for
authorizing, recording, settling and clearing a Transaction processed by the
Corporation.
3.6.5.1 Processing of Transaction-Related Personal Data

With regard to Transaction-related Personal Data, Customers in the EEA or
Switzerland must comply with the applicable national legislation implementing
the EU Privacy Directive or any other applicable data protection law.
Customers are Controllers with regard to the Processing of Personal Data for
the purposes of authorizing, recording, clearing and settling transactions, and
the Corporation acts as a Processor for these purposes.
12-12

Europe Region Rules

The Corporation will, to the extent it acts as a Processor, only undertake

Processing of Personal Data in accordance with the Standards and will comply
with security obligations equivalent to those imposed on the Customers as
Controllers by Article 17 of the EU Privacy Directive 95/46, as implemented by
national legislation.
3.6.5.2 Data Subject Notice and Consent

Customers in the EEA or Switzerland must ensure that Data Subjects are
properly informed and, if necessary, have given proper consent in accordance
with applicable laws and regulations that Personal Data relating to them may
be used, disclosed or otherwise processed by the applicable Customer and the
Corporation as set forth for the purposes provided for in Rule 3.6.2.
In accordance with applicable laws and regulations, Customers in the EEA or
Switzerland must ensure that Data Subjects are properly informed, at a
minimum:
1. that Data Subjects have the right to (a) request access to and receive
information about the Personal Data maintained by the applicable
Customers, or the Corporation, (b) update and correct inaccuracies in the
Personal Data, and (c) have the Personal Data blocked or deleted as
appropriate.
2. that Data Subjects may withdraw any consent they previously provided to
the applicable Customer or the Corporation or object at any time on
legitimate grounds to the Processing of Personal Data;
3. about the choices and means that Data Subjects have for limiting the
Processing of Personal Data by the Corporation;
4. that Personal Data may be processed outside the EEA or Switzerland; and
5. about the categories of recipients of Personal Data.
3.6.5.3 Data Subject Access to Personal Data

In accordance with applicable laws and regulations, Customers in the EEA or
Switzerland must develop and implement appropriate procedures for handling
requests by Data Subjects for access to, correction and/or deletion of Personal
Data maintained by the applicable Customer or the Corporation. The
Corporation will cooperate with Customers in responding to such requests and
will provide access to Personal Data maintained by the Corporation to assist
Customers in complying with requests for access to such Personal Data.
If an access request is made directly to the Corporation, Customers must
cooperate with the Corporation in promptly responding to the request.

12-13
Europe Region Rules

3.6.5.4 Integrity of Personal Data

Each Customer in the EEA or Switzerland must take reasonable steps to ensure
that Personal Data the Customer provides to the Corporation is reliable for its
intended use and is accurate, complete and current.

Rule 3.8.3 of Chapter 3, Customer Obligations, does not apply if on or before
17 September 2008, the Issuer commenced its use of an alternative on-behalf
authorization service that meets the Corporations performance standards.
3.8.4 Issuer Performance Standards

The following additional Standards apply in the Europe Region. Issuers that fail
to meet performance standards may be subject to the assessments set forth in
Rule 3.8.4.3 below and will be mandated to implement the Stand-In Processing
Service. Chip Issuers mandated to implement the Stand-In Processing Service
will also be required to register for M/Chip Cryptogram Validation in Stand-In.
3.8.4.1 Issuer Failure Rate (Substandard Performance)

An Issuer failure rate that exceeds one percent (1%) for Transactions for two
months in any six-month period is substandard performance. The Issuer
failure rate will not apply to an Issuer or its processor until:
a. After the fourth calendar month of operation; or
b. Upon processing five thousand (5,000) Transactions in a calendar month;
whichever occurs first.
3.8.4.2 Calculation of the Issuer Failure Rate

The Issuer failure rate is calculated according to the formula below:
The sum of the following ISO 8583 response codes:
a. 31 issuer signed off
b. 82 time out at Issuer EM
c. 96 system malfunction
divided by the total Transactions processed through the Issuer connection to
the Interchange System.
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Europe Region Rules

3.8.4.3 Assessments for Substandard Performance

An Issuer that fails to meet the Corporations performance standards may be
subject to the following assessments.
Occurrence
Assessment
First occurrence
USD 15,000
Second occurrence within the twelve (12)

month period following the first occurrence
USD 15,000
Third and any subsequent occurrence within

the twelve (12) month period following the
second occurrence
USD 20,000
After completion of a full calendar year without any violations, a subsequent

violation is counted as a first violation.

include the following additional Standard.
MasterCard Europe sprl is the exclusive owner of the Eurocard and
eurocheque marks. Customers must not, either by act or omission, do
anything inconsistent with the exclusive ownership of the Eurocard or
eurocheque marks, or do anything that may harm the Eurocard or eurocheque
marks.

Rule 5.1.2 of Chapter 5, Merchants, is modified to include the following
additional Rule that applies in the EEA:
Each Merchant Agreement with a Merchant located in the EEA must contain a
term requiring the Merchant to respond to Cardholder disputes and handle
chargebacks in accordance with the Chargeback Guide.

12-15
Europe Region Rules


The following additional Rule applies in the Europe Region.
Merchants that accept Cards must accept all types of Cards (for example,
consumer Cards, MasterCard Corporate Card Cards, World MasterCard
Cards, Debit MasterCard Cards, etc.).

Rule 5.11.2 of Chapter 5, Merchants and Sales Transactions, does not apply in
the EEA.
If a Merchant applies a surcharge for payment by Card, the amount or method
of calculation of the surcharge must be clearly indicated to the Cardholder at
the POI location and must bear a reasonable relationship to the Merchants
cost of accepting Cards.

Interaction
The following additional Rule applies in the Europe Region.
A discount or other benefit may be applied at a POI location in the Europe
Region upon simple presentation of a particular Card for payment. The
promotion at the POI of a discount or other benefit that may be accessed by
any particular Card is prohibited.

Rule 6.2.5 of Chapter 6, Special Issuer Programs, is modified to allow more
than one Partners name or logo or both to appear on the Card face.
12-16

Europe Region Rules

6.3 Co-Residing Applications
6.3 Co-Residing Applications

Rule 6.3 of Chapter 6, Special Issuer Programs, is replaced in its entirety with
the following.
6.3.1 Definitions
Co-residing application means a Customer or third party proprietary
application or function unrelated to the Payment Scheme that co-resides on a
Card.
Any of a Customers proprietary intracountry payment functions or brands,
whether stored value, debit or credit, is a co-residing application if it resides
on a chip embedded on a Card. If such a function or brand does not reside
on the chip, the Rules for co-residing applications do not apply.
6.3.2 Basic Requirements

Customers may not use any Mark as part of the identification of any coresiding application without the Corporations prior written approval.
Co-residing payment applications may not use or be associated with any
competitive brand (for example, American Express, JCB, Diners Club, Visa).
6.3.3 Notification
The Corporation must be notified of co-residing payment applications with the
form provided in the Cirrus Worldwide Operating Rules. Principals and
Associations may provide notification of co-residing applications on behalf of
their Sponsored Affiliate. If a co-residing payment application is discontinued,
the Corporation must be notified without delay.

Transactions submitted into interchange that take place in countries that
convert to the euro must be submitted in the euro. To allow a grace period for
exceptional cases, the Interchange System will not reject Transactions
submitted in currencies that have been replaced by the euro within six months
after the transition period.

12-17
Europe Region Rules

Within this six-month period, Issuers may not reject or charge back
Transactions submitted in currencies that the euro has replaced exclusively on
grounds that such Transactions have not been submitted in euro.
Provided that the national currency of a country that converts to the Euro is
still valid and accepted by the Interchange System, the greater of the euro floor
limit or the floor limit in the national currency applies to intracountry
Transactions, regardless of the Transaction currency.

Responses
Effective for Transactions occurring on or after 11 April 2014, Customers in the
United Kingdom must provide partial approval and account balance response
authorization services as set forth below:
1. Issuers must support:
a. Partial approval for all prepaid MasterCard and all Debit MasterCard
(including prepaid) Card account ranges; and
b. Account balance response for all prepaid MasterCard and all prepaid
Debit MasterCard Card account ranges.
2. Acquirers must support:
a. For Merchants properly identified with MCC 5542, partial approval for
all prepaid MasterCard and all Debit MasterCard (including prepaid)
Card account ranges; and
b. For Merchants properly identified with any of the MCCs listed below,
with respect to Card-present Transactions conducted at attended
terminals, partial approval and account balance response for all
prepaid MasterCard and all Debit MasterCard (including prepaid) Card
account ranges.
12-18
MCC
Description
5310
Discount Stores
5311
Department Stores
5411
5541
5612
Womens Ready to Wear Stores

Europe Region Rules

MCC
Description
5691
Mens and Womens Clothing Stores
5732
Electronic Sales
5812
5814
5912
5999

Rule 8.3.3.1 of Chapter 8, Sales Transactions and Cash Disbursements, is
The Merchant must obtain an online authorization from the Card Issuer for a
magnetic stripe Transaction if the Card has a service code of X2X (Positive
Online Authorization Required).
The service code is encoded in the magnetic stripe in positions 5.1 through
5.3, in accordance with ISO 7813. Refer to section 3.10 of the Security Rules
and Procedures manual for more information about service code values.

Rule 8.3.5.1 of Chapter 8, Sales Transactions and Cash Disbursements, is
An electronically-generated terminal receipt may show the Transaction amount
in the Transaction currency and a maximum of one different currency. The
Transaction amount in a different currency must be printed at the bottom of
the receipt with a clear indication that it is being provided only for information
purposes.

12-19
Europe Region Rules


Terminals
modified to include the following with respect to chip Transactions effected
wholly within the Region.
For purposes of these Rules, EMV-compliant means in compliance with the
EMV standards then in effect.
1. Chip Liability Shift. The liability for intraregional counterfeit fraudulent
Transactions in which one Regional Customer (either the Issuer or the
Acquirer) is not yet EMV-compliant is borne by the nonEMV-compliant
Regional Customer.
2. Chip/PIN Liability Shift. The liability for intraregional lost, stolen, and never
received fraudulent Transactions in which one Regional Customer (either
the Issuer or the Acquirer) is not yet able to support chip/PIN Transactions
is borne by the non-chip/PIN-compliant Regional Customer.
3. PIN Entry Device Mandate. All new, replaced, or upgraded chip terminals
must have a PIN pad. These terminals must at a minimum support offline
PIN (encrypted and clear text) for processing chip Transactions. New,
replaced, or upgraded hybrid terminals will not pass the Acquirer Terminal
Integration Process unless they are equipped with a PIN pad.
The PIN pad mandate does not apply to CAT Level 2 and 3 hybrid POS
Terminals.
4. Technical Fallback. At Cardholder-activated terminals (CATs) Level 1 and 2,
if both the Card and the CAT support chip technology, the Transaction
may only be completed using the chip. Technical fallback is not permitted
at such terminals.
5. Presentment Data. For each chip Transaction, the Acquirer must send EMV
chip data in DE 55 (Integrated Circuit Card [ICC] System-Related Data) of
the First Presentment/1240 message.

The Issuer must not authorize card-not-present (CNP) Transactions (that is,
mail order/telephone order [MO/TO] and electronic commerce [e-commerce]
Transactions) if the CVC 2 transmitted by the Acquirer does not match the CVC
2 on file with the Issuer corresponding to the Card number in question (that is,
DE 48, subelement 87 of the Authorization Request Response/0110 message =
N).
12-20

Europe Region Rules

The Acquirer must ensure that a CNP Merchant that has exceeded 100 basis
points in fraudulent CNP Transactions for two consecutive calendar months:
1. For all MO/TO Transactions, captures and transmits the CVC 2 value to the
Issuer for validation; and
2. For all e-commerce Transactions, captures and transmits the CVC 2 value to
the Issuer for validation or becomes MasterCard SecureCode-enabled.
Acquirers must ensure that Merchants comply with this requirement within 120
days following the second trigger month.
Refer to section 3.9 of the Security Rules and Procedures manual for additional
CVC 2 requirements.

The following additional Rules apply in the Europe Region.
Merchants in the Europe Region may at their option support purchase with
cash back Transactions on all types of Cards other than Debit MasterCard
Cards in accordance with the Rules in this section.
The following Acquirer and Merchant requirements apply to purchase with
cash back Transactions:
1. Cash may be provided only when combined with a purchase Transaction.
The purchase, cash back, and total Transaction components of the
purchase with cash back Transaction must be in the same currency.
2. Purchase with cash back is available only for chip/PIN and chip/signature
Transactions.
3. The Acquirer must obtain positive online authorization of the full
Transaction amount; support for authorization of the purchase amount only
is optional.
4. An offer of purchase with cash back that is promoted at the point of
interaction (POI) must be available to all Cardholders and the Merchant
may prompt the Cardholder to use this service.
If a Merchant decides to provide purchase with cash back only upon
presentation of particular Cards, then the Merchant must not promote the
service at the POI location or prompt the Cardholder to use purchase with
cash back.
5. Before the Merchant first offers purchase with cash back Transactions to
Cardholders, the Acquirer and Merchant must establish an education
program for retail employee staff, including but not limited to POS terminal
operators.

12-21
Europe Region Rules

6. The maximum cash back amount of the purchase with cash back
Transaction is GBP 100 in the United Kingdom and EUR 100 or the local
currency equivalent in other Europe Region countries, with the exception
of Germany, where the maximum is EUR 200.
7. Acquirers or Merchants may establish a lower maximum cash back amount,
provided that:
Any such maximum amount is applied uniformly; and
Any maximum amount is not lower than the maximum amount

established for any other payment means on which purchase with cash
back is offered at the Merchant location.
8. Acquirers or Merchants may establish a minimum cash back amount,

provided that:
Any such minimum amount is applied uniformly; and
Any minimum amount is not greater than the minimum amount

established for any other payment means on which purchase with cash
back is offered at the Merchant location.
9. The First Presentment/1240 message of each purchase with cash back

Transaction must be submitted as follows:
A value of 09 (purchase with cash back) must be present in DE 3

(Processing Code), subfield 1 (Cardholder Transaction Type).
The total transaction amount (inclusive of the purchase amount and

cash back amount) must be transmitted in DE 4 (Amount, Transaction).
The cash back amount must be transmitted in DE 54 (Amounts,

Additional).
The following Issuer requirements apply to purchase with cash back

Transactions:
1. An Issuer that intends to support purchase with cash back Transactions
must properly personalize the chip on its Cards.
2. Issuers should use partial authorization to approve only the purchase
amount of magnetic stripe Transactions, if they have implemented partial
authorization. The cash back amount of a magnetic stripe Transaction
must under no circumstances be authorized.
3. When using message reason codes 4853, 4855, 4859, and 4860 to submit a
chargeback of a purchase with cash back Transaction, the Issuer may
charge back only the purchase amount or a portion thereof, using Function
Code of 453 (Partial Amount) in the First Chargeback/1442 message. An
Issuer must not charge back the cash back amount or any portion thereof
under any of these message reason codes.
12-22

Europe Region Rules


In addition to the Payment Transaction Rules described in Rule 8.4.9 of
Chapter 8, Sales Transactions and Cash Disbursements, the following
requirements apply to Gaming Payment Transactions:
1. The Gaming Payment Transaction may only be used to transfer winnings
or unspent chips or other value usable for gambling to the same Card that
the Cardholder used to place the bet or purchase value used or usable for
gambling.
2. The Gaming Payment Transaction must be properly identified in
authorization and clearing messages using MCC 7995, a Transaction type
value of 28, and a Payment Transaction program type value of C04.
3. The Gaming Payment Transaction must not exceed EUR 5000.
4. Gaming Payment Transactions may not be processed by Acquirers in
Andorra, Cyprus, Latvia, and San Marino.
5. Electronic commerce Merchants that process Gaming Payment Transactions
must be MasterCard SecureCode-enabled, and must seek Cardholder
authentication during authorization of the Transaction in which the bet is
placed or the value to be used for gambling is purchased. The MasterCard
Advanced Registration Program (MARP) is not available for such
Merchants.
6. Mail order and telephone order Merchants may process Gaming Payment
Transactions.
7. Gaming Payment Transactions must not be processed to any type of
MasterCard Corporate Card.
8. Anti-Money-Laundering requirements:
a. The Acquirer must consider its Merchants that submit Gaming Payment
Transactions as higher risk under its anti-money laundering compliance
program.
b. In addition to any requirement under applicable local law or
regulation, the Acquirer must satisfy the Corporation requirement to
design and implement processes to conduct enhanced customer due
diligence reviews of Merchants that submit Gaming Payment
Transactions.
c. The Acquirer must ensure that Merchants that submit Gaming Payment
Transactions have appropriate controls in place to identify their own
customers and block suspicious activities or Cards.

12-23
Europe Region Rules

d. The Acquirer must have robust procedures and ongoing controls in

place to monitor Transactions conducted by Merchants that submit
Gaming Payment Transactions and to detect and report any potentially
suspicious activity.
9. Gaming Payment Transactions may only be processed by Europe Region
Acquirers in countries where such Transactions are not prohibited by
applicable law and only to Cards issued in the following countries:
Country Code
Country
Country Code
Country
020
Andorra
428
Latvia
040
Austria
442
Luxembourg
056
Belgium
470
Malta
100
Bulgaria
492
Monaco **
196
Cyprus
528
Netherlands
203
Czech Republic
578
Norway
208
Denmark
642
Romania
233
Estonia
674
San Marino
250
France
703
Slovak Republic
280
Germany
705
Slovenia
292
Gibraltar
724
Spain
300
Greece
752
Sweden
348
Hungary
756
Switzerland
352
Iceland
792
Turkey
372
Ireland
826
United Kingdom
380
Italy
10. Issuers in the countries listed must support the Gaming Payment
Transaction in authorization and clearing messages.
11. Gaming Payment Transactions will not be authorized in MasterCard StandIn or Down Option Services. Authorization is entirely under the control of
the Issuer.
12-24

Europe Region Rules


The following Rule applies in the Republic of Ireland.
Each Customer located in the Republic of Ireland must use the Automatic
Billing Updater for all Cards issued in the Republic of Ireland, excluding nonreloadable prepaid Cards in the BIN range of 539366 to 539585, as follows.
Information about ABU may be found on MasterCard OnLine in the Payment
Programs product under Automatic Billing Updater.
8.8.1 ABU Support by Acquirers

Acquirers must be capable of sending, receiving and processing ABU data, and
must ensure that the acquiring host processing system used by the Acquirer
incorporates ABU functionality.
Acquirers are required to register each Merchant located in the ROI that
conducts recurring payment Transactions in the ABU program.
Acquirers must submit Card account number queries to ABU on behalf of each
registered Merchant before submitting an authorization request message.
Acquirers must then take appropriate action based on any response codes
received from ABU.
Acquirers must submit account inquiry updates on behalf of each enrolled
Merchant no less than once every 180 days.
8.8.2 ABU Support by Issuers

Issuers must be able to send, receive and process ABU data. All of the types of
Card account changes defined in the ABU Reference Guide, excluding any such
account changes to non-reloadable prepaid Cards, must be submitted to ABU.

Rule 8.9.2 of Chapter 8, Sales Transactions and Cash Disbursements, is
modified so that the maximum cash disbursement transaction amounts of USD
5,000 and USD 1,000 therein stated are replaced in the Europe Region by
EUR 5,000 and EUR 1,000, respectively.

12-25
12a
Europe Region Debit-related Rules

This chapter contains debit-related Rules that apply only to the Europe Region.

Definitions ....................................................................................................... 12a-1
4.2.6.6 Use on Cards ........................................................................... 12a-2
5.8.1 Honor All Cards................................................................................ 12a-2

12a-i


that apply to:
1. Debit MasterCard Cards issued in a Debit MasterCard Country and
presented for payment in the Europe Region;
2. Debit MasterCard Transactions that take place in the Europe Region; and
3. Merchants and Acquirers of those Transactions.
The rules set forth in Intracountry Debit MasterCard Rules for the United
Kingdom also apply to Transactions effected with a Debit MasterCard Card that
take place wholly within the United Kingdom.
Customers and Merchants must continue to comply with the global Rules with
respect to Cards issued by Customers outside of the Europe Region and
presented for payment at Merchant locations in the Europe Region, unless
otherwise agreed by the Corporation.
Definitions
The defined terms provided in Chapter 12 apply to Rules in this Chapter 12a.
Solely for the purposes of Rules in this Chapter 12a, the following terms have
the meanings set forth below.
1. Debit MasterCard Card means a Debit Card as defined in the Definitions
section of Chapter 12.
Cards offering credit facilities for which the Cardholder has to enter into
a written credit agreement with the Card issuing institution that would
qualify as consumer credit under the applicable legislation governing
consumer credit are explicitly excluded. Overdraft facilities linked to an
Account are excluded from the above definition of credit facilities.
2. Other Card shall mean any MasterCard-branded device, program, or card
that does not qualify as a Debit MasterCard Card.
3. Debit MasterCard Country shall mean a country designated by the
Corporation, in its sole discretion, as a participant in the Intracountry Debit
MasterCard Program. Only a country so designated is a Debit MasterCard
Country.

12a-1


Transaction/BIN Identification. Debit MasterCard Card Issuers must use specific
and unique bank identification numbers (BINs) for Debit MasterCard Cards.
Acquirers must provide a complete list of the BINs that apply to Debit
MasterCard Cards to their Merchants upon any form of reasonable request.

Debit MasterCard Hologram. Debit MasterCard Card Issuers must replace the
MasterCard Global Hologram with the Debit MasterCard Hologram.

When the Debit MasterCard Hologram is on the Card back, placement of the
word Debit on the Card front is recommended.
Debit MasterCard Cards must conform to the Standards set forth in the Security
Rules and Procedures and Card Design Standards manuals.

Rule 5.8.1 of Chapter 5, Merchants, is modified as follows.
1. If Debit MasterCard Cards are Accepted. Merchants in a Debit MasterCard
Country that choose to accept Debit MasterCard Cards issued in the Europe
Region but not Other Cards issued in the Europe Region must honor all
valid Debit MasterCard Cards issued in the Europe Region without
discrimination, when properly presented for payment. The Merchant must
not discriminate among customers seeking to make purchases with a Debit
MasterCard Card issued in the Europe Region.
12a-2


2. If Other Cards are Accepted. Merchants in a Debit MasterCard Country that

choose to accept Other Cards must honor all valid Debit MasterCard Cards
issued in the Europe Region and all valid Other Cards issued in the Europe
Region and all valid Cards without discrimination, when properly
presented for payment. The Merchant must not discriminate among
customers seeking to make purchases with another Card.

Rule 5.8.2 of Chapter 12, Europe Region Rules, is modified to permit
Merchants in a Debit MasterCard Country to choose to accept only Debit
MasterCard Cards issued in the Europe Region or both Debit MasterCard Cards
and Other Cards issued in the Europe Region. Acquirers must inform existing
and prospective merchants that they have this right.
A merchant may choose to stop accepting Other Cards issued in the Europe
Region by providing no less than 30 days advance written notice to its
Acquirer.
Acquirers must identify to the Corporation any Merchant in a Debit MasterCard
Country that chooses to accept Debit MasterCard Cards but not Other Cards
issued in the Europe Region, and inform the Corporation of the reason for the
Merchants decision.
Merchants may request signage for the purpose of indicating their acceptance
of Debit MasterCard Cards at www.mastercardweacceptdebit.com.

A Merchant must offer purchase with cash back Transactions on all Europeissued Debit MasterCard Cards if the Merchant offers this transaction type on
any other debit brand.

12a-3
12b
SEPA Rules
This chapter contains Rules that apply only within the Single European
Payments Area (SEPA).

Definitions ....................................................................................................... 12b-1
2.1 Purpose of License; Eligibility................................................................... 12b-1
2.1.1 Single European Payments Area License ........................................ 12b-1
3.2 Conduct of Activity.................................................................................... 12b-2
3.2.6 Nondiscrimination ............................................................................ 12b-2
4.2.13 Use of Other Acceptance Marks on Cards .................................... 12b-3
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 12b-3

12b-i
SEPA Rules

The Rules in this Chapter 12b are variances and additions to the global Rules
that apply within the Single European Payments Area (SEPA).
Definitions
The defined terms provided in Chapter 12 apply to Rules in this Chapter 12b.
Solely for the purposes of Rules in this Chapter 12b, the following term has the
meaning set forth below.
SEPA Cards Framework (SCF) means the SEPA Cards Framework as
published by the European Payments Council, as it may be amended from
time to time.

2.1.1 Single European Payments Area License
The following additional Rules apply within SEPA:
1. Any entity that is eligible to become a Customer in one of the SEPA
countries may request a SEPA License.
2. The Standards applicable to other Licenses also apply to SEPA Licenses,
unless otherwise provided.
3. The SEPA License may be granted to a Principal or Association or an
Affiliate.
4. A Principal or Association holding a SEPA License may Sponsor Affiliate in
one or more SEPA countries. The Affiliate(s) may receive either a SEPA
License or a License.
5. If a SEPA License is held by a Customer that will undertake Activities in
one or more SEPA countries via separate legal entities, the separate legal
entities must also sign Licenses.
6. The SEPA License may cover all of the countries in SEPA. If the SEPA
License will cover both Switzerland and an EEA country, any Customer
legal entity or SEPA Licensee that will be active both in Switzerland and in
an EEA country must be regulated both in Switzerland and in an EEA
country. The holder of a SEPA License must meet all local legal
requirements in each country in which it intends to undertake Activities.

12b-1
SEPA Rules
7. Each Principal or Association is assigned a separate ICA for each SEPA

country in which it is active, must use that ICA only for its Activity in that
country, and must not undertake Activity in that country before the
relevant ICA has been implemented.
The Principal or Association is assigned a separate BIN or BIN range for
each SEPA country in which it is active, must use that BIN or BIN range
only for its Activity in that country, and must not undertake Activity in the
country before the relevant BIN or BIN range has been implemented. For
Card issuance, different ranges within a BIN may be linked to ICAs
assigned for different SEPA countries.
8. With regard to Intracountry Transactions, the holder of a SEPA License
must comply with the applicable intracountry rules and fees.

following:
A Customer must not, directly or indirectly, prevent or discriminate against the
use of MasterCard as a brand for Intracountry Transactions or Intra-SEPA
Transactions.
By way of example but not limitation:
1. A single certification must be valid for both intracountry and intra-SEPA use
of the MasterCard payment application at the terminal.
2. The prevalence of any particular chip-based payment application at
terminal or Acquirer system level must not be mandated or implemented.
3. If the MasterCard payment application is supported by both the Card and
the terminal, its use must not be blocked or impaired by technical or other
means.
4. If the MasterCard payment application is supported by both the Card and
the terminal, the Cardholder must be given the opportunity to complete
the Transaction with the MasterCard payment application, in an EMV
environment and in all other cases where the terminal is technically
capable of providing that choice to the Cardholder. In an EMV
environment, if the Cardholder is not able to choose a payment
application, the priority order defined by the Issuer in the chip must be
respected.
12b-2

SEPA Rules
5. Neither the Cardholders chosen payment application nor the Issuers

priority order may be disregarded or overridden by technical or other
means.

1. The Marks may co-reside on Cards with other payment scheme marks
upon written agreement with the Corporation. If Cards bear multiple
payment scheme marks in addition to the Marks, only one of the additional
payment scheme marks may be placed on the Card front.
2. Effective 1 January 2011, only the marks of payment schemes that are SCFcompliant may co-reside on Cards with the Marks.

Paragraph 5 in Rule 8.1 of Chapter 8, Sales Transactions and Cash
Disbursements that applies to Cross-border Transactions, does not apply to
Intra-SEPA Transactions.

Terminals
The following additional Rules apply within SEPA:
1. An Issuer of Cards that does not support both magnetic stripe and EMV
chip technology must have an EMV migration project registered with
MasterCard Customer Implementation Services.
2. An Acquirer with any POS Terminals deployed that do not support both
magnetic stripe and EMV chip technology must have an EMV migration
project registered with MasterCard Customer Implementation Services.
(Note: This requirement does not apply with respect to terminals at
Merchants located in the Netherlands until 1 October 2012.)

12b-3
SEPA Rules
3. Cards and POS Terminals must support both magnetic stripe and EMV chip
technology. As an exception to the preceding Rule, nonreloadable prepaid
Cards are not required to support EMV chip technology. (Note: Terminals
at Merchants located in the Netherlands are not required to support EMV
chip technology until 2013.)
4. Hybrid POS Terminals must support the use of PIN as the CVM for intraSEPA chip Transactions.
12b-4

13
Latin America and the Caribbean Region Rules

This chapter contains Rules that apply only in the Latin America and the
Caribbean Region.

3.2.7 Acquirers............................................................................................. 13-1
4.2.12 Use of a Competing Mark on Cards ................................................ 13-2
4.2.13 Use of Other Acceptance Marks on Cards ...................................... 13-2
5.11.1 Discrimination .................................................................................. 13-3
5.11.8 Disparagement.................................................................................. 13-5
9.3 Currency Conversion................................................................................... 13-7

13-i


that apply in the Latin America and the Caribbean Region.
Refer to Appendix A for the Latin America and the Caribbean Region
geographic listing.

include the following.
A Customer that is Licensed to acquire Transactions in the United States that
extends its Area of Use to acquire Transactions in Puerto Rico is not required
to issue Cards in Puerto Rico if its acquiring Activity in Puerto Rico is limited to
only the Transactions of Merchants located in Puerto Rico that are also located
and have headquarters in the United States, and with whom the Customer has
an existing acquiring relationship in the United States.

3.2.7 Acquirers
This rule applies in Puerto Rico and the U.S. Virgin Islands only:
Merchant from engaging in actions consistent Rule 5.11.1 of this Chapter 13.

13-1


Rule 4.1.2 of Chapter 4, Trademarks and Service Marks is modified as it
applies to debit Cards issued in Puerto Rico and the U.S. Virgin Islands:

applies to debit Cards issued in Puerto Rico and the U.S. Virgin Islands, to

applies to debit Cards issued in Puerto Rico and the U.S. Virgin Islands, to

Except as provided in Rule 5.11.1 below, an Acquirer must ensure that none of
5.11.
13-2


Rule 5.11.1 of Chapter 5, Merchants as it applies in Puerto Rico and the U.S.
Virgin Islands is replaced with the following:
to:
form of payment;
payment;

13-3


Virgin Islands is replaced with the following:

Virgin Islands is modified to include the following:
and
1. the Merchant:
following MCCs:
i. MCC 8220Colleges, Universities, Professional Schools, Junior
Colleges; or
13-4



2. The maximum Transaction amount does not differentiate between Issuers;
and
3. The maximum Transaction amount does not differentiate between

Interaction
A Card may access a discount or other benefit at a point of interaction (POI)
located in the Latin America and the Caribbean Region, and the Merchant may
promote such discount or other benefit at the POI, provided such promotion
does not disparage other Card Programs.

Rule 6.2.5 of Chapter 6, Special Issuer Programs, is modified such that for
Affinity Card Programs and Co-brand Card Programs issued by Customers in
the LAC Region, more than one Partners name or logo or both may appear on
the face of the Card subject to the following conditions:
1. The Card design shall comply in all respects with the Card design
guidelines,
2. In no way may any Partner name and/or logo, or combination, obscure in
any way the fact that the card is a Card, and
3. The decision as to whether any given Card design conforms to these

13-5


Terminals
For purposes of these Rules, EMV chip-capable means the ability to become
compliant; and EMV chip-compliant means operating any chip device
including cards, ATMs, point-of-interaction (POI) terminals, electronic cash
registers (ECRs), PIN pads, and terminals that are in accordance fully with the
Standards relative to EMV standards.
1. New Terminals. All new ATMs and POI terminals must be EMV-compliant.
2. Critical Fraud Percentage. The Acquirer of a Merchant located in the Latin
America and Caribbean Region with a ratio of fraud and counterfeit
volume to Card sales volume that equals or exceeds the Standards must
replace any magnetic-stripe-only POI or ECR terminal at such Merchant
with an EMV-capable terminal, either POI or ECR.
3. Intraregional Chip Liability Shift. The liability for Latin America and
Caribbean intraregional counterfeit fraudulent Transactions in which one
Customer (either the Issuer or the Acquirer) is not yet EMV chip-compliant
is borne by the non-EMV chip-compliant Customer.
4. Incentive Interchange Rate. An incentive interchange rate applies to
intraregional international chip Transactions to:
a. Compensate the Issuers of Cards with an increased intraregional
interchange of ten basis points when the Card is used at a non-EMV
chip-compliant terminal.
b. Compensate the Acquirers using EMV-compliant terminals with a
reduced intraregional interchange of ten basis points when a non-EMV
chip-compliant Card is used at that terminal.
5. Domestic Chip Liability Shifts. The liability for domestic counterfeit
fraudulent Transactions in which one Customer (either the Issuer or the
Acquirer) is not yet EMV chip-compliant is borne by the non-EMV chipcompliant Customer in the following countries: Brazil, Colombia,
Venezuela.
13-6



Rule 9.3 of Chapter 9, Settlement, is modified to include the following.
Within the country in which the Card was issued, if that country is within the
LAC Region, and if the Transaction currency is the same as the currency of the
Issuer and is not U.S. dollars, the Acquirer must accept payment for the
Transaction in the local currency, unless the Acquirer and Issuer have agreed
otherwise, or unless local law requires otherwise.
Noncompliance by any Customer with this requirement will result in the
imposition of a USD 50 fine for each USD 1,000 of affected settlement volume,
payable monthly for the volume in the prior month.

Fees
Rule 9.5 of Chapter 9, Settlement, is modified to include the following.
Integrated Service for Intracurrency Settlement (ISIS) certification is a standard
feature of the certification process for Card Programs in which an LAC Region
Customer participates. All Principals or Associations in the LAC Region and
Service Providers providing Program Services to Principals or Associations in
the LAC Region must settle Transactions through ISIS at the applicable
intracountry interchange rate and conditions with each LAC Region Customer
that chooses to use ISIS as its settlement platform of choice for intracountry
Transactions.

13-7
14
South Asia/Middle East/Africa Region Rules

This chapter contains Rules that apply only to the South Asia/Middle East/Africa
Region.


14-i


that apply in the South Asia/Middle East/Africa (SAMEA) Region.
Refer to Appendix A for the South Asia/Middle East/Africa Region geographic
listing.

Cardholder.
and conspicuously, in all new and existing Cardholder Communications,
including Cardholder agreements and account agreements, any amounts
relating to the MasterCard Issuer Cross-border Assessment and/or the
MasterCard Currency Conversion Assessment that the Issuer charges, or
will charge, to the Cardholder.
basis.

14-1


account.
SAMEA Region manual.

Unauthorized Use
The following applies with respect to SAMEA Region Cardholders.
1. Limitation on amount. Subject to the laws of the country within which a
Card is issued, the liability of a Cardholder for unauthorized use of a Card
Card are posted)
a. shall not exceed USD 0 if the conditions set forth in paragraph 2,
below, have been met or,
b. shall be in accordance with the corresponding Cardholder agreement if
the conditions set forth in paragraph 2 have not been met.
2. Conditions to USD 0 liability. The liability limitations set forth in clause (a)
of paragraph 1, above, shall apply only if
a. the Cardholder has exercised vigilant care in safeguarding such Card
from risk of loss, theft, or unauthorized use;
b. the Cardholder immediately and without delay notifies the Issuer upon
discovery of the loss, theft, or unauthorized use;
c. the Cardholder has not reported two or more incidents of unauthorized
use to the Issuer in the immediately preceding 12-month period;
d. the account to which Transactions initiated with such Card are posted
is in good standing; and
14-2


e. the Cardholder has complied with the terms and conditions of the
corresponding Cardholder agreement.
3. Effect of other applicable law or agreement. If country or local law or an
agreement between a Cardholder and the Issuer of a Card (regardless of
the type of account to which Transactions initiated with such Card are
posted) imposes lesser liability than that provided in this Rule, the lesser
liability shall govern.
5. Nonapplicability. This Rule shall not apply to Cards issued
a. to an entity other than a natural person;
b. primarily for business, commercial, or agricultural purposes; or
c. if a PIN or MasterCard SecureCode is used as the Cardholder
verification method for unauthorized Transaction(s).

Interaction
A discount or other benefit may be applied at a POI located in the SAMEA
Region upon presentation of a particular Card for payment. Promotion of any
such discount or other POI benefit is permitted provided such promotion does
not result in discrimination against other Card Programs. The determination of
whether any promotion discriminates against other Card Programs is at the

Terminals
For purposes of these Rules, a counterfeit Transaction is a type of fraudulent
Transaction.

14-3

1. New Terminals. All new or retrofitted ATMs and POI terminals deployed
by Regional Customers must be EMV-capable.
2. Incentive Interchange Rate. An incentive interchange rate is applied to
intraregional Transactions to:
a. Compensate Issuers of EMV-compliant Cards with an increased
intraregional interchange of ten basis points when the Card is used at a
nonEMV-compliant terminal
b. Compensate Acquirers using EMV-compliant terminals with reduced
intraregional interchange of 10 basis points when a nonEMVcompliant Card is used at that terminal.
3. Chip Liability Shift for SAMEA. The liability for SAMEA intraregional
counterfeit Card Transactions in which one member (either the Issuer or
the Acquirer) is not yet EMV-compliant will be borne by the nonEMVcompliant member.
An interregional chip liability shift is in effect between the Asia/Pacific and
South Asia/Middle East/Africa Regions. All countries within each of these
regions participate.
14-4

14a
South Africa Rules

This chapter contains Rules that apply only in South Africa.

Definitions ....................................................................................................... 14a-1
4.2.6.6 Use on Cards ........................................................................... 14a-2
5.1.2 Required Terms ................................................................................ 14a-2
5.8.1 Honor All Cards................................................................................ 14a-2
8.4 Requirements for Specific Transaction Types .......................................... 14a-4
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals ....... 14a-4

14a-i
South Africa Rules


that apply to Cards issued in South Africa by South Africa Customers and
presented for payment at Merchant locations in South Africa.
Customers and Merchants in South Africa must continue to comply with the
global Rules for Cards issued by Customers outside of South Africa and
presented for payment at Merchant locations in South Africa.
Definitions
meanings set forth below.
1. Debit or Debit MasterCard Card or Debit Card shall mean any Access
Device, Program, or Card issued in South Africa, by a Customer licensed in
South Africa, that when presented for payment in South Africa, accesses,
debits, holds, or settles funds from a consumers deposit, current, saving,
asset or other type of money account. Debit or Debit MasterCard Card
shall include consumer signature and/or PIN debit Programs, stored value
Programs, prepaid Cards, payroll Cards and electronic benefit transfer
Cards. Zero floor limits apply and all Transactions are authorized online.
2. Other Card shall mean any Access Device, Program, or Card that is not
defined as debit or Debit MasterCard Card.

South Africa.

Transaction/BIN Identification. Issuers must use specific and unique bank
identification numbers (BINs) for Debit MasterCard Cards. Acquirers must
provide a complete list of the BINs that apply to Debit MasterCard Cards to
Merchants upon any form of reasonable request.

14a-1
South Africa Rules


Clear and Conspicuous Debit Identifier. Issuers must display

Hologram on the front of all Debit MasterCard Cards issued in South Africa
in the position required for the MasterCard Global Hologram, or
Standards set forth in the Security Rules and Procedures manual and the
Card Design Standards System.

In addition to the Standards set forth in Chapter 5, Merchant Agreements must
provide the Merchant with the option, and the applicable Merchant discount
rate for each option, to elect to accept Debit MasterCard Cards only, Other
Cards only, or both Debit MasterCard Cards and Other Cards. A Merchant may
choose to stop accepting Debit MasterCard Cards or Other Cards by providing
no less than 30 days advance written notice to its Acquirer.

Rule 5.8.1 of Chapter 5, Merchants, is modified as follows.
14a-2

South Africa Rules

1. Honor All Debit MasterCard Cards. Merchants that choose to accept Debit
maintain a policy that does not discriminate among customers seeking to
make purchases with a Debit MasterCard Card.
2. Honor All Other MasterCard Cards. Merchants that choose to accept Other
Cards must honor all Other Cards without discrimination when properly
presented for payment. The Merchant must maintain a policy that does
not discriminate among customers seeking to make purchases with another
Card.

only, Other Cards only, or both Debit MasterCard Cards and Other Cards.
Acquirers must advise the Corporation when a Merchant chooses not to accept
either Debit MasterCard Cards or Other Cards.
Merchants may request signage for the purpose of indicating their acceptance
of Debit MasterCard Cards at www.mastercardweacceptdebit.com.

Rule 5.8.6 of Chapter 5, Merchants and Sales Transactions, is modified to
A Merchant that has received prior approval from its Acquirer may offer a
purchase with cash back Transaction with or without an accompanying
purchase to a Debit MasterCard Cardholder for intracountry, Card-present,
face-to-face Transactions conducted in South Africa.
PIN verification must be obtained for each purchase with cash back
Transaction without an accompanying purchase.

14a-3
South Africa Rules


Terminals
The liability for South Africa intracountry counterfeit Card Transactions in
which one Customer (either the Issuer or the Acquirer) is not yet EMVcompliant will be borne by the nonEMV-compliant Customer.
14a-4

14b
India Rules
This chapter contains Rules that apply only in India.

Definitions ....................................................................................................... 14b-1
8.4.2 Card-Not-Present Transactions ........................................................ 14b-1
8.4.5 Purchase With Cash Back Transactions .......................................... 14b-2

14b-i
India Rules

The Rules in this Chapter 14b are variances and additions to the global Rules
that apply to Cards issued in India by India Customers and presented for
payment at Merchant locations in India.
Customers and Merchants in India must continue to comply with the global
Rules for Cards issued by Customers outside of India and presented for
payment at Merchant locations in India.
Definitions
Solely for the purposes of this Chapter 14b, the following terms have the
Debit or Debit MasterCard Card or Debit Card shall mean any Access
Device, Program, or Card issued in India, by a Customer licensed in India, that
when presented for payment in India, accesses, debits, holds, or settles funds
from a consumers deposit, current, saving, asset or other type of money
account. Debit or Debit MasterCard Card shall include consumer signature
debit Programs, stored value Programs, prepaid Cards, payroll Cards and
electronic benefit transfer Cards.

Electronic commerce and IVR Transactions effected at a Merchant located in
India with a Card issued in India must be authenticated. An authenticated
Transaction occurs when:
a. The Merchant is Universal Cardholder Authentication Field (UCAF)enabled;
b. The Issuer provided the UCAF data for that Transaction;
c. All other authorization and clearing requirements applicable to the
Transaction were satisfied; and
d. The Authorization Request Response/0110 message reflected the Issuers
approval of the Transaction.

14b-1
India Rules
For purposes of this Rule, an IVR Transaction is a phone order Transaction

conducted by means of an interactive voice response (IVR) phone system.
Each IVR Transaction must contain a value of 2 (SecureCode phone order) in
DE 61 (point-of-service [POS] Data), subfield 7 (POS Transaction Status) of the
Authorization Request/0100 message.
Refer to section 3.4 of the Chargeback Guide for chargeback rights applicable
to electronic commerce Transactions under the MasterCard SecureCode liability
shift program.
An Issuer may not use message reason codes 4837, 4849 or 4863 to charge
back an IVR Transaction that occurs at a Merchant located in India, if:
a. The Merchant is UCAF-enabled;
b. The Issuer provided the UCAF for that Transaction;
c. All other phone order authorization and clearing requirements were
satisfied, including the presence of a value of 2 (SecureCode phone order)
in DE 61 (Point-of-Service [POS] Data), subfield 7 (POS Transaction Status)
of the Authorization Request/0100 message;
d. The Authorization Request Response/0110 message reflected the Issuers
approval of the Transaction.
All Issuers and all Acquirers of e-commerce Merchants must participate in the
Activation During Shopping (ADS) method of cardholder enrollment in
MasterCard SecureCode. Cardholders must complete enrollment on the first
attempt, and the Issuer must not allow a Cardholder to opt-out of the
SecureCode enrollment process. Effective 1 January 2011, this requirement also
applies to Acquirers of IVR Merchants.
Refer to the MasterCard SecureCode Member Enrollment and Implementation
Guide for more information about MasterCard SecureCode and UCAF.

The maximum daily cash back amount per Debit MasterCard Card shall be in
accordance with applicable law including circulars published by the Reserve
Bank of India.
A Merchant that has received prior approval from its Acquirer may offer:
a. A purchase with cash back Transaction to a Cardholder for intracountry,
Card-present, face-to-face Transactions conducted in India; and
14b-2

India Rules
b. A purchase with a cash back Transaction to a Cardholder with no

accompanying purchase for intracountry, Card-present, face-to-face
Transactions conducted in India.

14b-3
15
United States Region Rules

This chapter contains Rules that apply only in the United States Region.

Definitions ......................................................................................................... 15-1
1.1 Types of Customers..................................................................................... 15-1
1.1.3 Affiliate................................................................................................ 15-1
1.5 Obligations, Rights and Responsibilities .................................................... 15-2
1.5.2 Obligation to Participate .................................................................... 15-2
2.7 Liability for Assigned ICAs and BINs.......................................................... 15-2
2.7.1 Settlement Liability for Debit Licensees ............................................ 15-2
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates ............. 15-3
2.11 Sale or Change in Ownership or Control of Customer Portfolio ............ 15-3
2.11.1 Change of Control of Issuer or Issuing Program ............................ 15-3
2.11.2 Change of Control of Acquirer or Acquiring Program ................... 15-4
3.2.7 Acquirers............................................................................................. 15-5
4.2 General Rules for Use of the Marks ......................................................... 15-11
4.2.12 Use of a Competing Mark on Cards .............................................. 15-11
15-i
4.2.13 Use of Other Acceptance Marks on Cards .................................... 15-11

5.11.1 Discrimination ................................................................................ 15-11
5.11.3 Minimum/Maximum Transaction Amount Prohibited .................. 15-13
5.11.8 Disparagement................................................................................ 15-14
6.2 Affinity and Co-brand Card Programs ...................................................... 15-14
7.2 Service Provider Categories ...................................................................... 15-14
7.1.2 Third Party Processor ....................................................................... 15-14
7.1.2.1 Type I ...................................................................................... 15-14
7.3 General Obligations .................................................................................. 15-15
7.3.2 Notification to the Corporation........................................................ 15-15
7.6 Service Provider Registration .................................................................... 15-16
7.6.2 Registration Requirements for Type I TPPs .................................... 15-16
8.9.1 Nondiscrimination ............................................................................ 15-17
8.2.1 Full and Partial Reversals ................................................................. 15-17
8.4.8 Automated Fuel Dispenser Transactions ......................................... 15-23
8.4.13 Refund Transactions ....................................................................... 15-23
15-ii



that apply in the United States Region.
Definitions
Solely for the purposes of this Chapter 15, the following terms have the
1. Affiliate means a financial institution that is eligible and approved to be a
Customer pursuant to Rule 1.1.3 and is Sponsored by a Principal,
Association, or a Type I TPP.
2. Sponsor means the relationship described in the Standards between a
Principal, Association, or a Type I TPP and an Affiliate that engages in
Activity indirectly through the Principal, Association, or Type I TPP. In
such event, the Principal, Association, or the Type I TPP is the Sponsor of
the Affiliate and the Affiliate is Sponsored by the Principal, Association, or
the Type I TPP.
3. Sponsorship means the relationship between a Principal, Association, or
a Type I TPP that Sponsors an Affiliate and that Affiliate.
4. Acquiring Activity Fee means a fee assessed by the Corporation in
connection with a Change of Control, as such term is defined in Rule
2.11.2, of an Acquirer or the acquiring business of a Customer.
5. TPP Acquiring Fee means a fee assessed by the Corporation in
connection with a Change of Control, as such term is defined in Rule
7.3.2 of this Chapter 15, of a TPP.

1.1.3 Affiliate
Rule 1.1.3 of Chapter 1, Participation, is modified to include the following:
An Affiliate that participates indirectly in Activity through the Sponsorship of a
Principal, Association, or through the Sponsorship of a Type I TPP.
An Affiliate must be Sponsored by a Principal or Association to participate in
Acquirer Activity.

15-1


1.5.2 Obligation to Participate
Rule 1.5.2 of Chapter 1, Participation is modified to include the following:
An Affiliate that is Sponsored by a Type I TPP may not also participate in
Activity as a Principal or Association.

1. Any Customer that does not issue or have outstanding any cards of a
competing card program within the U.S. Region is not obligated to issue
Cards to customers in the U.S. Region before it may acquire Transactions
from Merchants located in the U.S. Region.
2. A Customer that is Licensed to acquire Transactions in the United States
that extends its Area of Use to acquire Transactions in Puerto Rico is not
required to issue Cards in Puerto Rico if its acquiring Activity in Puerto
Rico is limited to only the Transactions of Merchants located in Puerto Rico
that are also located and have headquarters in the United States, and with
whom the Customer has an existing acquiring relationship in the United
States.

2.7.1 Settlement Liability for Debit Licensees
A debit Licensee is granted a License limited to the issuance of Debit
MasterCard Cards. Notwithstanding the foregoing, a principal debit Licensee is
not responsible for the Debit MasterCard Card Program obligations of any
affiliate debit Licensee that it Sponsors if such an affiliate debit Licensee
becomes unable or unwilling to discharge its settlement obligations.
15-2


2.11 Sale or Change in Ownership or Control of Customer Portfolio
2.7.2 Settlement Liability for Type I TPPs that Sponsor

Affiliates
Unless otherwise provided in the Standards, a Type I TPP is not responsible
for the Issuer Activity settlement obligations of an Affiliate that the Type I TPP
Sponsors should such an Affiliate be unable or unwilling to discharge its Issuer
Activity settlement obligations. The Corporation assumes no liability for any
settlement failure dispute that arises between a Type I TPP and an Affiliate
Sponsored by such Type I TPP.
2.11 Sale or Change in Ownership or Control of Customer

Portfolio
Rule 2.11 of Chapter 2, Licensing and Licensed Activities is replaced in its
entirety with the following.
2.11.1 Change of Control of Issuer or Issuing Program

In the event that an Issuer will undergo a change of Control, as the term
Control is defined in the Definitions chapter of this manual, the Issuer must
notify the Corporation in writing of such change(s) at least 90 days prior to the
effective date thereof. The Issuer must promptly provide the Corporation any
information requested by the Corporation relating to such an event or
proposed event and the Corporation may:
the Issuer or both.
2. Amend the rights or obligations or both of the Issuer.
3. Terminate the Membership any Issuer that:
a. transfers or attempts to transfer Control of the Issuer to an entity that is
not a Customer;
b. merges into or is consolidated with an entity that is not a Customer;
c. sells all or substantially all of its assets;
d. sells all or substantially all of its Issuer portfolio(s);
e. experiences a change in Control or Ownership; or
f.
transfers or assigns, or attempts to transfer or assign, its Membership.

15-3

2.11 Sale or Change in Ownership or Control of Customer Portfolio
2.11.2 Change of Control of Acquirer or Acquiring Program

In the event that an Acquirer or the acquiring business of a Customer that is
both an Issuer and an Acquirer will undergo a Change of Control, as such
term is defined herein, the Acquirer must notify the Corporation in writing of
such change(s) at least 90 days prior to the effective date thereof. The Acquirer
must promptly provide the Corporation any information requested by the
Corporation relating to such an event or proposed event and the Corporation
may:
the Acquirer or both.
2. Amend rights or obligations or both of the Acquirer.
3. Terminate the Membership of the Acquirer.
4. Assess an Acquiring Activity Fee. The Acquiring Activity Fee will be
determined based on one or more factors which shall include, but not be
limited to:
a. The Transaction volume acquired annually by the Acquirer; or
b. Any other factor(s) that could significantly impact the integrity of the
MasterCard system.
For purposes of this Rule, a Change of Control shall mean an Acquirer or the
acquiring business of a Customer that is both an Issuer and an Acquirer:
1. Merges with another entity, where such other entity is the surviving entity;
2. Undergoes a transfer involving 10 percent (10%) or more of any class of its
voting securities (including any options, warrants, or convertible securities
that convert into voting securities) or ownership interest;
3. Undergoes a change in ownership of 10 percent (10%) or more of
outstanding shares;
4. Transfers 10 percent (10%) or more of its assets, in each case in a single
transaction, or a series of related transactions;
5. Undergoes a change in ownership of a controlling interest;
6. Undergoes a change which results in a third party having the power to
exercise, directly or indirectly, a controlling influence over its management
or policies based on the totality of facts and circumstances;
7. Sells, transfers or closes down a specified division or line of its business
which is related to or is in connection with the Corporations business;
8. Offers all or a portion of the company to the public in an initial public
offering; or
9. Undergoes a financial restructuring giving effective control to bondholders.
15-4



3.2.7 Acquirers
Merchant from engaging in actions consistent with Rule 5.11.1 of this
Chapter 15.

Cardholder.
and conspicuously, in all new and existing Cardholder Communications,
including Cardholder agreements and account agreements, any amounts
relating to the MasterCard Issuer Cross-border Assessment and/or the
MasterCard Currency Conversion Assessment that the Issuer charges, or
will charge, to the Cardholder.
basis.

15-5


account.
United States Region manual.

following:
An Issuer may geographically restrict Card usage to the United States for Debit
MasterCard Card Programs, except in the case of a prepaid Card program,
subject to the following requirements:
1. The Issuer must inform the Cardholder clearly in writing of the geographic
scope of the Card;
2. The Issuer must also inform the Cardholder clearly in writing that he/she
has the option of enabling expanded geographic use of the Card upon the
Cardholders request. An Issuer must comply with requests from
Cardholders for expanded geographic use of a Card. If the Issuer cannot
expand a Cards use to a specific country or a select group of countries as
requested by the Cardholder, the Issuer must enable the Card for global
use and must inform the Cardholder accordingly; and
3. The geographic restriction must be clearly printed on the Card back, for
example, For use only in the United States. To enable for use outside the
United States, please call (Issuer).
For additional information, refer to the Card Design Standards manual.
15-6


For purposes of this rule, if an Issuer chooses to geographically restrict Debit

MasterCard Card usage to the United States, the Issuer must permit Debit
MasterCard Card usage in the U.S. Region, Puerto Rico, U.S. Virgin Islands,
American Samoa, Guam, and the Northern Mariana Islands.

Rule 3.8.3 of Chapter 3, Customer Obligations, is replaced in its entirety by
the following:
For all Card Programs, Issuers must use the Stand-In Processing Service,
including the Stand-In Investigation Service. For all Card Programs except
Debit MasterCard Card Programs, Stand-In Parameters must be set at or above
the Corporations default limits.
For Debit MasterCard Card Programs, the following requirements apply:
1. For all Transactions identified with a TCC of C, P, T, U, or Z, the
Transaction category code (TCC) limit may be set below the Corporations
default value.
2. For all Card-not-present Transactions, the TCC limit may be set below the
Corporations default value.
3. For Card-present Transactions identified with a TCC of A, F, H, O, R, or X
and effected with a Debit MasterCard Gold Card or Debit MasterCard
Platinum Card, the TCC limit may be set below the Corporations default
value to an amount no less than USD 100.
4. For Card-present Transactions identified with a TCC of A, C, F, H, O, R, or
X and effected with a Debit MasterCard BusinessCard Card or Debit
MasterCard Professional Card, the TCC limit may be set below the
Corporations default value to an amount no less than USD 400.
5. For Debit MasterCard Card Programs, the accumulative limit(s) may be set
below the Corporations default values as follows.

15-7

Day
Minimum Transaction Recommended

Count
Transaction Count
Minimum Transaction
Amount
USD 50
12
USD 100
18
USD 150
24
USD 200
6. For Debit MasterCard Gold Card and Debit MasterCard Platinum Card
Programs, the accumulative limit(s) may be set below the Corporations
default values as follows.
Day

Count
Transaction Count
Minimum Transaction
Amount
USD 100
12
USD 200
18
USD 300
24
USD 400
7. For Debit MasterCard BusinessCard Card and Debit MasterCard

Professional Card Programs, the accumulative Limit(s) may be set below
the Corporations default values as follows.
Day

Count
Transaction Count
Minimum Transaction
Amount
USD 750
USD 1,000
USD 1,000
USD 1,000
15-8



3.9.4 Integrity of Brand and Network
following:
Pursuant to this Rule, with respect to any potentially illegal Internet gambling
Transaction attempted on or after 1 June 2010, the Issuer of the Card must
either employ a method of systemic Transaction blocking or decline all such
Transaction authorization requests on an individual basis.
An Internet gambling Transaction that may be potentially illegal when
involving a U.S. region Cardholder is any Transaction that the Acquirer has
identified in the authorization request message as both:
a. a gambling Transaction, by the use of MCC 7995 in DE 18 (Merchant
Type), and
b. an e-commerce Transaction, by the use of a value of 6 (electronic
commerce Transaction) in DE 61 (Point of Service [POS] Data), subfield 10
(Cardholder-Activated Terminal Level Indicator).
Issuers may approve, on an individual basis, any Internet gambling Transaction
authorization requests identified with MCC 9754 (GamblingHorse Racing,
Dog Racing) that involve a U.S. region Cardholder. In using MCC 9754, the
Acquirer asserts that the Transaction involves gambling activity deemed by the
Acquirer to be legal in the U.S. region and indemnifies the Corporation in
connection with all such gambling activity. Such indemnity applies regardless
of the Acquirers or the Merchants compliance with the Corporations Internet
Gambling Policy or the Standards.

Unauthorized Use
The following applies with respect to United States Region Cardholders.
1. Limitation on amount. The liability of a Cardholder for unauthorized use
of a Card (regardless of the type of account to which Transactions initiated
with such Card are posted, except as set forth in paragraph 5 below) shall
not exceed:
a. USD 0 if the conditions set forth in paragraph 2, below, have been met
or,

15-9

b. if the conditions set forth in paragraph 2 have not been met, the lesser
of USD 50 or the amount of money, property, labor, or services
obtained by the unauthorized use before notification to the Issuer.
2. Conditions to USD 0 liability. The liability limitations set forth in clause
(a) of paragraph 1, above, shall apply only if
a. the Cardholder has exercised reasonable care in safeguarding such
Card from risk of loss or theft;
b. the Cardholder has not reported two or more incidents of unauthorized
use to the Issuer in the immediately preceding 12-month period; and
c. the account to which Transactions initiated with such Card are posted
is in good standing.
3. Effect of other applicable law or agreement. If federal, state or local law,
or an agreement between a Cardholder and the Issuer of a Card (regardless
of the type of account to which Transactions initiated with such Card are
posted) imposes lesser liability than that provided in this Rule, the lesser
liability shall govern.
5. Non-applicability. This Rule shall not apply:
a. to Cards issued to an entity other than a natural person or primarily for
business, commercial, or agricultural purposes, except that the Rule
shall apply to the Card Programs for small businesses described on
www.mastercardbusiness.com; or
b. if a PIN is used as the Cardholder verification method for unauthorized
Transaction(s); or
c. to any Card issued or sold to a person until such time as that persons
identity is registered by or on behalf of the Issuer in connection with
the issuance and/or use of such Card, which registration may include
appropriate customer identification program requirements.
15-10



Rule 4.1.2 of Chapter 4, Trademarks and Service Marks is modified to include
the following:



Except as provided in Rule 5.11.1 below, an acquirer must ensure that none of
5.11.

15-11


to:
form of payment;
payment;
Notwithstanding the foregoing, a Merchant may not offer a discount or other
benefit to a Cardholder if the Cardholder uses a particular Issuers Card at the
Point of Interaction (POI), unless the discount or other benefit is available for
all other Cards of the same product type or is accessed 1) after the Transaction
has been completed (for example, a credit on the billing statement or a
rebate); or 2) at the time of or after the Transaction and is effected by a
separate instrument and not by the Card (for example, a coupon or a
voucher). A Merchant at the POI must not promote a discount or other benefit
for use of a particular Issuers Card.
15-12




Rule 5.11.3 of Chapter 5, Merchants is modified to include the following:
and
1. the Merchant:
following MCCs:
i.
MCC 8220Colleges, Universities, Professional Schools, Junior

Colleges; or


15-13

6.2 Affinity and Co-brand Card Programs
2. The maximum Transaction amount does not differentiate between Issuers;

and
3. The maximum Transaction amount does not differentiate between
6.2 Affinity and Co-brand Card Programs

Rule 6.2.5 of Chapter 6, Special Issuer Programs, is modified such that more
than one Affinity Card or Co-brand Card Program logo may appear on the face
of the Card, subject to the discretion of the Corporation, which is charged with
the responsibility of ensuring that:
1. The card is clearly identifiable as a Card product;
2. The Mark remains prominent on the Card face; and
3. The Mark is not obscured by the proliferation of other names and/or logos;
and
4. The presence of multiple logos does not in any way damage or impair the
strength of the MasterCard brand.
The decision as to whether any given Card design conforms to these

7.1.2 Third Party Processor
7.1.2.1 Type I
Rule 7.1.2.1 of Chapter 7, Service Providers is modified to include the
following:
15-14


In addition to engaging in TPP Program Service, a Type I TPP in the U.S.

Region may Sponsor an Affiliate to engage in Issuer Activity. A Type I TPP that
Sponsors an Affiliate for such purpose must comply with (i) all Standards
applicable to a Type I TPP, (ii) subject to Rule 2.7.2, all Standards applicable to
a Principal Issuer, and (iii) such additional or alternative Standards and/or
other requirements that the Corporation may determine to be necessary or
appropriate from time to time.

7.3.2 Notification to the Corporation
Rule 7.3.2 of Chapter 7, Service Providers is modified to include the
following:
In the event a TPP performing acquiring Program Service for a U.S. Region
Customer will undergo a Change of Control, as such is defined below, the
TPP must notify the Corporation in writing of such change by sending an email message to [email protected] at least 90 days prior to the
effective date thereof. The TPP must promptly provide the Corporation any
information requested by the Corporation relating to such an event or
proposed event. The Corporation will, in writing, either:
1. Reaffirm the TPPs registration status; or
2. Reaffirm the TPPs registration status and establish additional conditions to
the registration, including the assessment of a TPP Acquiring Activity Fee.
The TPP Acquiring Activity Fee will be determined based on one or more
of the following factors, which shall include, but not be limited to:
a. Transaction volume processed annually by the TPP;
b. The number of Customers for which the TPP performs Program
Service; or
c. Any other factor(s) relating to the TPPs performance of Program
Service that could significantly impact the integrity of the MasterCard
system.
Alternatively, the Corporation may, in its sole discretion, terminate or suspend
the TPPs registration.
For purposes of this Rule, a Change of Control shall mean the TPP:
1. Merges with another entity, where such other entity is the surviving entity;
2. Undergoes a transfer involving ten percent (10%) or more of any class of
its voting securities (including any options, warrants, or convertible
securities that convert into voting securities) or ownership interest;
15-15

3. Undergoes a change in ownership of ten percent (10%) or more of

outstanding shares;
4. Transfers ten percent (10%) or more of its assets, in each case in a single
transaction, or a series of related transactions;
5. Undergoes a change in ownership of a controlling interest,
6. Undergoes a change which results in a third party having the power to
exercise, directly or indirectly, a controlling influence over the
management or policies of the TPP based on the totality of facts and
circumstances;
7. Sells, transfers, or closes down a specified division or line of its business
which is related to or is in connection with the Corporations business;
8. Offers all or a portion of the company to the public in an initial public
offering; or
9. Undergoes a financial restructuring giving effective control to bondholders.
In the event that the TPP fails to provide the written notice set forth above, the
Corporation may promptly take either or both of the following actions:
1. Suspend the TPPs registration; or
2. Terminate the TPPs registration upon written notice from the Corporation.
Such termination is effective upon delivery, or inability to deliver after a
reasonable attempt to do so, of written or actual notice by the Corporation
to the TPP.

7.6.2 Registration Requirements for Type I TPPs
Rule 7.6.2 of Chapter 7, Service Providers is modified to include the
following:
In addition to TPPs that the Corporation designates to be prospective Type I
TPPs, a TPP or other entity in the U.S. Region may become a Type I TPP if
such TPP or other entity:
1. Is registered by the Corporation as a Type I TPP; and
2. Agrees to comply with all Standards applicable to Type I TPPs and to
Principals and any additional requirements that the Corporation may deem
necessary or appropriate from time to time; and
15-16


3. Provides affirmative evidence satisfactory to the Corporation that it is in

compliance with the MasterCard Anti-Money Laundering Program (the AML
Program); and
4. Pays applicable fees.

Rule 8.9.1 of Chapter 8, Cash Disbursements, is modified to include the
following:
Subject to compliance with the Standards, each Customer within the U.S.
Region must provide cash disbursement services to all Cardholders at all of the
Customers offices where teller services are provided.

Rule 8.1 of Chapter 8, Sales Transactions and Cash Disbursements is modified
to include the following:
A Type I TPP that Sponsors an Affiliate for the purpose of Issuer Activity must
process all Transactions of such Affiliate(s) arising in connection with such
Issuer Activity, through the Interchange System. For purposes of this U.S.
Region Rule 8.1, processed means authorization as required by the Standards
and clearing and settlement through the Interchange System.

Customers must provide full and partial reversal authorization services as set
forth below:
1. For all Debit MasterCard Card account ranges, Issuers must support full
and partial reversals.

15-17

2. For all Card account ranges, an Issuer receiving a Reversal Request/0400 or

Reversal Advice/0420 message must release any hold placed on the
Cardholders account for the amount specified within 60 minutes of
matching the reversal message to a previous authorization request
message.
3. The Acquirer of a Merchant must ensure that for any approved amount that
will not be included in a Transaction presentment, the Merchant initiates,
as applicable, a full or partial reversal:
a. Within 24 hours of the original authorization request in a card-present
environment, and
b. Within 72 hours of the original authorization request in a card-notpresent environment.
This requirement does not apply until 12 October 2012 and only applies
with respect to full reversals if the Merchant is identified with any of the
following card acceptor business codes (MCCs):
MCCs 3351 through 3441 (Car Rental Agencies)
MCCs 3501 through 3999 (LodgingHotels, Motels, Resorts)
MCC 4411 (Cruise Lines)
MCC 7011 (LodgingHotels, Motels, Resortsnot elsewhere classified)
MCC 7512 (Automobile Rental Agencynot elsewhere classified).
4. The Acquirer of a Merchant properly identified under an MCC listed in the

table below and that accepts Debit MasterCard Cards must support full and
partial reversals performed at the POI and whenever, for technical reasons,
the Acquirer is unable to communicate the authorization response to the
Merchant, for all Debit MasterCard Card account ranges, by the date
indicated:
15-18
Effective Date
MCC
Description
1 May 2010
4812
Telecommunication Equipment including Telephone

Sales
4814
Telecommunication Services
5111
Stationery, Office Supplies
5200
Home Supply Warehouse Stores
5300
Wholesale Clubs
5310
Discount Stores
5311
Department Stores
5331
Variety Stores


Effective Date
MCC
Description
5399
Miscellaneous General Merchandise Stores
5411
5499
Miscellaneous Food StoresConvenience Stores,

Markets, Specialty Stores and Vending Machines
5541
5542
Fuel Dispenser, Automated
5732
Electronic Sales
5734
Computer Software Stores
5735
Record Shops
5812
5814
5912
5921
Package Stores, Beer, Wine, and Liquor
5941
Sporting Goods Stores
5942
Book Stores
5943
Office, School Supply and Stationery Stores
5964
Direct MarketingCatalog Merchants
5965
Direct MarketingCombination CatalogRetail

Merchants
5966
Direct MarketingOutbound Telemarketing Merchants
5967
Direct MarketingInbound Telemarketing Merchants
5969
Direct MarketingOther Direct Marketersnot

5999
7829
Motion Picture-Video Tape Production-Distribution
7832
7841
8011
Doctorsnot elsewhere classified
8021
Dentists, Orthodontists
8041
Chiropractors
8042
Optometrists, Ophthalmologists
8043
Opticians, Optical Goods, and Eyeglasses
8062
Hospitals

15-19

Effective Date
1 November 2010
1 May 2011
Note
MCC
Description
8099
Health Practitioners, Medical Servicesnot elsewhere

classified
4111
TransportationSuburban and Local Commuter

Passenger, including Ferries
4816
Computer Network/Information Services
4899
Cable, Satellite, and Other Pay Television and Radio

Services
7996
Amusement Parks, Carnivals, Circuses, Fortune Tellers
7997
ClubsCountry Membership
7999
Recreation Servicesnot elsewhere classified
8999
Professional Servicesnot elsewhere classified
9399
Government Servicesnot elsewhere classified
Acquirers of Merchants in the MCCs listed in this table with an effective date of
1 May 2010 or 1 November 2010 must support these requirements in all standalone terminal software updates performed after 1 May 2010 and for all standalone terminals that are deployed after 1 May 2010.
For the purposes of this section, stand-alone terminals are terminals that are
not integrated into a Merchants POS system, such that the Transaction amount
must be manually entered into the terminal.

Responses
Customers must provide partial approval and account balance response
authorization services as set forth below:
1. For all Debit MasterCard Card account ranges, Issuers must support partial
approvals.
2. For all Debit MasterCard Card prepaid account ranges, Issuers must
support account balance responses.
3. For all Debit MasterCard Card account ranges, the Acquirer of a Merchant
properly identified with MCC 5542 (Fuel Dispenser, Automated) and that
accepts Debit MasterCard Cards must support partial approvals.
4. Effective as indicated, the Acquirer of a Merchant properly identified under
an MCC listed in the table below and that accepts Debit MasterCard Cards
must:
15-20


a. For all Debit MasterCard Card account ranges, support partial approvals
for Card-present Transactions occurring at attended terminals, and
b. For all Debit MasterCard Card prepaid account ranges, support account
balance responses for Card-present Transactions occurring at attended
terminals.
Effective Date
MCC
Description
1 May 2010
4812
Telecommunication Equipment including Telephone

Sales
4814
Telecommunication Services
5111
Stationery, Office Supplies
5200
Home Supply Warehouse Stores
5300
Wholesale Clubs
5310
Discount Stores
5311
Department Stores
5331
Variety Stores
5399
Miscellaneous General Merchandise Stores
5411
5499
Miscellaneous Food StoresConvenience Stores,

Markets, Specialty Stores and Vending Machines
5541
5542
Fuel Dispenser, Automated
5732
Electronic Sales
5734
Computer Software Stores
5735
Record Shops
5812
5814
5912
5921
Package Stores, Beer, Wine, and Liquor
5941
Sporting Goods Stores
5942
Book Stores
5943
Office, School Supply and Stationery Stores
5964
Direct MarketingCatalog Merchants
5965
Direct MarketingCombination CatalogRetail

Merchants

15-21

Effective Date
1 November 2010
1 May 2011
Note
MCC
Description
5966
Direct MarketingOutbound Telemarketing Merchants
5967
Direct MarketingInbound Telemarketing Merchants
5969
Direct MarketingOther Direct Marketersnot

5999
7829
Motion Picture-Video Tape Production-Distribution
7832
7841
8011
Doctorsnot elsewhere classified
8021
Dentists, Orthodontists
8041
Chiropractors
8042
Optometrists, Ophthalmologists
8043
Opticians, Optical Goods, and Eyeglasses
8062
Hospitals
8099
Health Practitioners, Medical Servicesnot elsewhere

classified
4111
TransportationSuburban and Local Commuter

Passenger, including Ferries
4816
Computer Network/Information Services
4899
Cable, Satellite, and Other Pay Television and Radio

Services
7996
Amusement Parks, Carnivals, Circuses, Fortune Tellers
7997
ClubsCountry Membership
7999
Recreation Servicesnot elsewhere classified
8999
Professional Servicesnot elsewhere classified
9399
Government Servicesnot elsewhere classified
Acquirers of Merchants in the MCCs listed in this table with an effective date of
1 May 2010 or 1 November 2010 must support these requirements in all standalone terminal software updates performed after 1 May 2010 and for all standalone terminals that are deployed after 1 May 2010.
For the purposes of this section, stand-alone terminals are terminals that are
not integrated into a Merchants POS system, such that the Transaction amount
must be manually entered into the terminal.
15-22



2 (an AFD Transaction) occurring at a Merchant located in the U.S. region,
then within 60 minutes of the time that the authorization request message was
sent, the Acquirer must send an authorization advice message advising the
Issuer of the Transaction amount.
has placed a hold on Cardholder funds in excess of USD 1, then within 60
Transaction amount specified.

A Debit MasterCard Card Issuer must post funds due to a Cardholder as a
result of a refund Transaction to the Cardholders account within one business
day of Transaction settlement. The Issuer may place a temporary hold on such
funds to the extent allowed under applicable law if the Issuer determines that
the circumstances or account history warrant the delay.

15-23
15a
United States Region Debit-related Rules

This chapter contains debit-related Rules that apply only in the United States
Region.

Definitions ....................................................................................................... 15a-1
2.19 Risk of Loss .............................................................................................. 15a-2
4.2.6.6 Use on Cards ........................................................................... 15a-2
5.1.2 Required Terms ................................................................................ 15a-2
5.8.1 Honor All Cards................................................................................ 15a-3

15a-i


resulting from the settlement of In Re Visa Check/MasterMoney Antitrust
Litigation. These Rules apply to Debit MasterCard Cards and Other Cards
issued in the U.S. Region by U.S. Region Customers and presented for payment
at Merchant locations in the U.S. Region. Customers and Merchants in the U.S.
Region must continue to comply with the global Rules for Cards issued by
Customers outside of the U.S. Region and presented for payment at Merchant
locations in the Region.
With respect to Debit MasterCard Cards, these Rules apply where signature is
used as the Cardholder verification method (CVM) or where no CVM is
required. For Rules applicable to Debit MasterCard Cards where PIN is used
as the CVM, refer to Chapter 15b.
Definitions
1. Debit or Debit MasterCard Card or Debit Card shall mean any Access
Device, Program, or Card issued in the Region, by a Regional Customer,
that when presented for payment in the United States, accesses, debits,
holds, or settles funds from a consumers demand deposit or asset account.
Debit or Debit MasterCard Card shall include consumer signature debit
Programs, stored value Programs, prepaid Cards, payroll Cards, electronic
benefit transfer Cards, and deferred debit Cards that access, debit, hold, or
settle funds from the users demand deposit or asset account less than
fourteen days after the date of purchase. Debit shall not include any
point-of-sale device that accesses, debits, hold, or settles funds from the
users demand deposit or asset account fourteen or more days after the
date of the purchase.
2. Other Card shall mean any Access Device, Program, or Card that is not
defined as debit or Debit MasterCard Card.

Transaction/BIN Identification. Customers must use specific and unique bank
identification numbers (BINs) for Debit MasterCard Cards.

15a-1

2.19 Risk of Loss
2.19 Risk of Loss

In addition to the Rules in Chapter 2, Licensing and Licensed Activities, the
following applies:
The Risk of Loss Rule applies with respect to affiliate debit Licensees in the
same manner as it applies to Customers.

Clear and Conspicuous Debit Identifier. Customers must display

Hologram on the front of all Debit MasterCard Cards issued in the United
States, in the position required for the MasterCard Global Hologram, or
Standards set forth in the Security Rules and Procedures manual and the
Card Design Standards System.

In addition to the Standards set forth in Chapter 5, Merchant Agreements must
provide the Merchant with the option, and the applicable Merchant discount
rate for each option, to elect to accept Debit MasterCard Cards only, Other
Cards only, or both Debit MasterCard Cards and Other Cards. With respect to
any contract existing on or before 1 January 2004, under which a Merchant
accepts Cards, a Merchant may choose to stop accepting Debit MasterCard
Cards or Other Cards by providing no less than 30 days advance written notice
to its Acquirer.
15a-2



Honor All Debit MasterCard Cards. Merchants that choose to accept Debit
maintain a policy that does not discriminate among customers seeking to make
purchases with a Debit MasterCard Card.
Honor All Other MasterCard Cards. Merchants that choose to accept Other Cards
must honor all Other Cards without discrimination when properly presented
for payment. The Merchant must maintain a policy that does not discriminate
among customers seeking to make purchases with another Card.

only, Other Cards only, or both Debit MasterCard Cards and Other Cards.
Acquirers must advise the Corporation when a Merchant in the Region chooses
not to accept either Debit MasterCard Cards or Other Cards.
Merchants that request signage for the purpose of indicating their acceptance
of Debit MasterCard Cards must display such signage for a minimum of three
months. The signage may be requested at
www.mastercardweacceptdebit.com.
Acquirers must provide a complete list of the BINs that apply to Debit
MasterCard Cards to Merchants upon any form of reasonable request.

15a-3
15b
United States Region PIN-based Debit

Transaction Rules
This chapter contains Rules that apply only to PIN-based Debit MasterCard
Transactions occurring in the United States Region.

Definitions ....................................................................................................... 15b-1
3.9.6 PIN-based Debit Transactions ......................................................... 15b-2
4.2.6 Particular Use of a Mark .................................................................. 15b-2
4.2.6.6 Use on Cards ........................................................................... 15b-2

15b-i
United States Region PIN-based Debit Transaction Rules


Rules in this Chapter 15b are variances and additions to the global Rules that
apply in the U.S. Region. These Rules relate to Debit MasterCard Cards where
a PIN is used as the Cardholder verification method.
Definitions
Solely for the purposes of this Chapter 15b, the following terms have the
1. Debit or Debit MasterCard Card shall mean any Access Device or Card
that, when presented for payment in the United States, accesses, debits,
holds, or settles funds from a demand deposit or asset account and where
PIN is used as the Cardholder verification method.
2. Service Marks shall mean (i) from an issuing perspective, the MasterCard
Word Mark and/or the MasterCard Brand Marks as those terms are defined
in the Definitions chapter of this manual, and (ii) from an acquiring
perspective, the MasterCard Word Mark and/or the MasterCard Brand
Marks as those terms are defined in the Definitions chapter of this manual
and the MAESTRO trademarks, trade names, service marks, logotypes, and
trade designations made available for use pursuant to License by the
Corporation.
3. Maestro Service Marks shall mean the MAESTRO trademarks, trade
names, service marks, logotypes, and trade designations made available for
use pursuant to license by the Corporation.
4. Cirrus Service Marks shall mean the CIRRUS trademarks, trade names,
service marks, logotypes, and trade designations made available for use
pursuant to license by the Corporation.

15b-1
United States Region PIN-based Debit Transaction Rules


Customers may choose to issue Debit MasterCard Cards where a PIN is used as
the Cardholder verification method and/or acquire Transactions effected with
such Cards as defined in this Chapter 15b. If Customers so choose, the rules
contained in the Maestro Global Rules will apply to such Transactions except
1. for the requirements contained in sections 1.2 Eligibility to be a Customer,
1.3 Application to be a Customer (as those requirements relate to issuing
Activity), 1.7 Termination of License, 4.5 Display on Cards, and 6.1.1 b.1.
Eligible Cards, of that rulebook, and
2. that when the term Member appears in the text of the Maestro Global
Rules, the definition of that term contained in the Definitions chapter of
this manual applies, and
3. that when the term Service Marks appears in the text of the Maestro
Global Rules, the definition of that term contained in part 2 of the
Definitions section in this Chapter 15b applies.

1. The Maestro and/or Cirrus Service Marks must not appear on Debit
MasterCard Cards issued on or after 1 June 2006. Effective 1 June 2007, the
Maestro and/or Cirrus Service Marks must not appear on Debit MasterCard
Cards.
2. Issuers that display regional debit brands on their Debit MasterCard Cards
must place the MasterCard Brand Mark on the back (in equal size and
prominence with those regional debit brands) as well as on the front of the
Card. Refer to the Card Design Standards manual for additional
information.
15b-2

Geographical Regions
A.1 Asia/Pacific Region ...................................................................................... A-1

A.2 Canada Region ............................................................................................. A-1
A.3 Europe Region ............................................................................................. A-2
A.3.1 Single European Payments Area (SEPA)............................................ A-3
A.4 Latin America and the Caribbean Region ................................................... A-3
A.5 South Asia/Middle East/Africa Region ........................................................ A-4
A.6 United States Region .................................................................................... A-5

A-i
A.1 Asia/Pacific Region
A.1 Asia/Pacific Region

The Asia/Pacific Region includes the following countries or territories.
American Samoa
Brunei Darussalam
China
Cocos (Keeling) Islands
Timor-Leste
French Polynesia
Heard and McDonald Islands
Indonesia
Kiribati
Lao Peoples Democratic Republic
Malaysia
Micronesia, Federated States of
Nauru
New Zealand
Norfolk Island
Palau
Philippines
Samoa
Solomon Islands
Thailand
Tonga
U.S. Minor Outlying Islands
Viet Nam
Australia
Cambodia
Christmas Island
Cook Islands
Fiji
Guam
Hong Kong
Japan
Korea, Republic of
Macao
Marshall Islands
Mongolia
New Caledonia
Niue
Northern Mariana Islands
Papua New Guinea
Pitcairn
Singapore
Taiwan
Tokelau
Tuvalu
Vanuatu
Wallis and Futuna
A.2 Canada Region

The Canada Region is composed of Canada.

A-1
A.3 Europe Region
A.3 Europe Region

The Europe Region includes the following countries or territories.
Albania
Antarctica
Austria
Belarus
Channel Islands (Guernsey,
Jersey)
Cyprus
Denmark (Faroe Islands)
Faroe Islands
Francea
Germany, Republic of
Greece
Hungary
Ireland
Israel
Kazakhstan
Kyrgyzstan
Liechtenstein
Luxembourg
Malta
Monaco
Netherlands
Poland
Romania
San Marino
Slovakia
Spain
Svalbard and Jan Mayen
Switzerland
Turkey
Ukraine
Uzbekistan
a
A-2
Andorra
Armenia
Azerbaijan
Belgium
Bulgaria
Croatia
Czech Republic
Estonia
Finland (Aland Islands)
Georgia
Gibraltar
Greenland
Iceland
Isle of Man
Italy
Kosovo
Latvia
Lithuania
Macedonia
Moldova, Republic of
Montenegro, Republic of
Norway (Svalbard, Jan Mayen)
Portugal
Russian Federation
Serbia
Slovenia
St. Helena, Ascension and Tristan Da Cunha
Sweden
Tajikistan
Turkmenistan
United Kingdom (Falkland Islands, Malvinas)
Vatican City
Includes Mayotte, Guadeloupe, Martinique, French Guiana, St. Martin, and St. Barthlemy.

A.4 Latin America and the Caribbean Region
Changes in allegiance or national affiliation of a part of any of the countries

listed in this appendix shall not affect the geographic coverage of the
definition.
A.3.1 Single European Payments Area (SEPA)

The Single European Payments Area includes the following countries or
territories.
Andorra
Greece
Netherlands
Austria
Hungary
Norway
Belgium
Iceland
Poland
Bulgaria
Ireland
Portugal
Channel Islands
Isle of Man
Romania
Cyprus
Italy
San Marino
Czech Republic
Latvia
Slovakia
Denmark
Liechtenstein
Slovenia
Estonia
Lithuania
Spain
Finland
Luxembourg
Sweden
France
Malta
Switzerland
Germany
Monaco
United Kingdom
Gibraltar
Vatican City
A.4 Latin America and the Caribbean Region

The Latin America and the Caribbean Region includes the following countries
or territories.
Anguilla
Antigua and Barbuda
Argentina
Aruba
Bahamas
Barbados
Belize
Bermuda
BES Islandsb
Bolivia
Brazil
Cayman Islands
Chile
Colombia
Costa Rica
Curacao
Dominica
Dominican Republic
Ecuador
El Salvador
Grenada
Guatemala
Guyana
Haiti

A-3
A.5 South Asia/Middle East/Africa Region
Honduras
Jamaica
Mexico
Montserrat
Nicaragua
Panama
Paraguay
Peru
Puerto Rico
St. Kitts-Nevis
St. Lucia
St. Maarten
St. Vincent and the Grenadines
Suriname
Trinidad and Tobago
Turks and Caicos Islands
Uruguay
Venezuela
Virgin Islands, British
Virgin Islands, U.S.
Bonaire, St. Eustatius and Saba.
A.5 South Asia/Middle East/Africa Region

The South Asia/Middle East/Africa Region includes the following countries or
territories.
Afghanistan
Angola
Bangladesh
Bhutan
Bouvet Island
Burkina Faso
Cameroon
Central African Republic
Comoros
Cte DIvoire
Djibouti
Equatorial Guinea
Ethiopia
Gambia
Guinea
India
Jordan
Kuwait
Lesotho
Libyan Arab Jamahiriya
Malawi
Mali
A-4
Algeria
Bahrain
Benin
Botswana
British Indian Ocean Territory
Burundi
Cape Verde
Chad
Congo
Democratic Republic of the Congo
Egypt
Eritrea
Gabon
Ghana
Guinea-Bissau
Iraq
Kenya
Lebanon
Liberia
Madagascar
Maldives
Mauritania

A.6 United States Region
Mauritius
Mozambique
Nepal
Nigeria
Pakistan
Qatar
Rwanda
Saudi Arabia
Seychelles
Somalia
Sri Lanka
Syrian Arab Republic
Togo
Uganda
Western Sahara
Zambia
Morocco
Namibia
Niger
Oman
Palestinian Territory, Occupied
Reunion
Sao Tome and Principe
Senegal
Sierra Leone
South Africa
Swaziland
Tanzania, United Republic of
Tunisia
United Arab Emirates
Yemen
Zimbabwe
A.6 United States Region

The United States Region is composed of the United States.

A-5
Transaction Identification Requirements
B.1 Transaction Date .......................................................................................... B-1

B.2 MasterCard PayPass Transactions ............................................................... B-1
B.2.1 Post-Authorized Aggregated PayPass Transit Transactions .............. B-3
B.2.2 PayPass-only Transactions ................................................................. B-5
B.3 Quick Payment Service Transactions .......................................................... B-7
B.4 Cardholder-activated Terminal (CAT) Transactions ................................... B-8
B.4.1 CAT Level Requirements .................................................................. B-10
B.4.1.1 Dual Capability for CAT 1 and CAT 2 .................................... B-10
B.4.1.2 CAT Level 1: Automated Dispensing Machines (CAT 1) ....... B-10
B.4.1.3 CAT Level 2: Self-Service Terminal (CAT 2) ........................... B-11
B.4.1.4 CAT Level 3: Limited Amount Terminals (CAT 3).................. B-12
B.4.1.5 CAT Level 4: In-Flight Commerce (IFC) Terminals (CAT 4) .. B-13
B.4.1.6 CAT Level 6: Electronic Commerce Transactions (CAT 6) .... B-17
B.4.1.7 CAT Level 7: Transponder Transactions (CAT 7)................... B-17
B.5 Payment Transactions ................................................................................ B-18
B.6 Mobile Remote Payment Transactions ...................................................... B-19

B-i


The Transaction date appearing in DE 12 (Date and Time, Local Transaction) is
specified as follows.
For the following transaction
The transaction date is the date on

which
Face-to-Face
The products or services are exchanged.
NonFace-to-Face
The products are shipped or services

performed.
Vehicle Rental
The vehicle is returned, or, if applicable,

the prepayment date.
Lodging
Checkout occurred, or if applicable, the

prepayment date.
No-show
The Cardholder was expected to arrive at

the lodging Merchant and failed to appear.
Airline/Railway
The airline or railway ticket was issued.
Cruise Line
The transportation documents were issued.
On-board Cruise Line
The passenger disembarks.
Refund
The Merchant grants a credit or price

adjustment.
All in-flight commerce transactions except The flight departs from the originating city.
in-flight commerce mailed purchases
The transaction date for in-flight commerce
mailed purchases is the shipment date
unless otherwise disclosed to the
cardholder.
Post-authorized Aggregated MasterCard
PayPass Transit
One or more MasterCard PayPass taps

performed with one MasterCard PayPass
account number and occurring with one
transit Merchant are aggregated in a First
Presentment/1240 message.

A properly identified MasterCard PayPass Transaction occurs when the
following values are present in the Authorization Request/0100 or Financial
Transaction Request/0200 message. A Transaction must not be identified as a
MasterCard PayPass Transaction if the Card information is contact chip-read,
magnetic stripe-read, or key-entered.

B-1

Data Element
Subfield
Value
22 (Point of Service [POS]

Entry Mode
1 (POS Terminal PAN Entry One of the following:

Mode)
07 (PAN auto-entry via
contactless M/Chip)
contactless magnetic
stripethe full track
data had been read from
the data on the card and
transmitted within the
authorization request in
DE 35 [Track 2 Data] or
DE 45 [Track 1 Data]
without alteration or
truncation)
61 (Point-of-Service [POS]
Data)
11 (POS Card Data Terminal One of the following:

Input Capabilities)
3 (Contactless M/Chip)
4 (Contactless Magnetic
Stripe)
A properly identified PayPass Transaction occurs when the following are

present in the First Presentment/1240 message.
Data Element
Subfield
Value
22 (Point of Service Data

Code)
1 (Terminal Data: Card Data One of the following:

Capability)
A (PAN auto-entry via
stripe)
22 (Point-of-Service Data
Code)
B-2
7 (Card Data: Input Mode)
M (PAN auto-entry via

contactless M/Chip)
One of the following:

stripe)

contactless M/Chip)
N (Contactless input,
PayPass Mapping
Service applied [This
value is visible only to
issuer; acquirers use
value A or M.])


B.2.1 Post-Authorized Aggregated PayPass Transit

Transactions
A properly identified post-authorized aggregated PayPass transit Transaction
occurs when the following values are present in the Authorization
Request/0100 or Financial Transaction Request/0200 message.
Data Element
Subfield
18 (Merchant Type)
Entry Mode)
Value
4111 (TransportationSuburban and Local

Commuter Passenger,
including Ferries)
4131 (Bus Lines)

Mode)
contactless M/Chip)
data has been read from
truncation.)
48 (Additional DataPrivate 1 (Transaction Category
Use)
Code [TCC])
X (Airline and Other

Transportation Services)
Data
1 (POS Terminal
Attendance)
1 (Unattended terminal)
3 (POS Terminal Location)
0 (On premises of card
acceptor facility)
4 (POS Cardholder
Presence)
0 (Cardholder present)
5 (POS Card Presence)
0 (Card present)
6 (POS Card Capture

Capabilities)
0 (Terminal/Operator has no
7 (POS Transaction Status)
0 (Normal request)
10 (Cardholder-Activated
Terminal Level)
0 (Not a CAT transaction)

card capture capability)
B-3

Data Element
Subfield
Value

Input Capability)
Stripe)
A properly identified post-authorized aggregated PayPass transit Transaction

occurs when the following values are present in the First Presentment/1240
message.
Data Element
Subfield
Value

Code)

Capability)
stripe)

contactless M/Chip)
3 (Terminal Data: Card

Capture Capability)
0 (No capture capability)
4 (Terminal Operating
Environment)
2 (On card acceptor
5 (Card Present Data)
1 (Card present)
premises; unattended
terminal)
7 (Card Data: Input Mode) One of the following:
26 (Card Acceptor Business

Code [MCC])
B-4

stripe)

contactless M/Chip)
PayPass Mapping
Service applied [This
value A or M.])
4111 (TransportationSuburban and Local

Commuter Passenger,
including Ferries)
4131 (Bus Lines)


B.2.2 PayPass-only Transactions

A properly identified PayPass-only Transaction at an unattended POS Terminal
occurs when the following values are present in the Authorization
Request/0100 or Financial Transaction Request/0200 message.
Data Element
Subfield
18 (Merchant Type)
Entry Mode)
Value
An MCC approved to be
PayPass-only as published
from time to time in the
Global Operations Bulletin.

Mode)
contactless M/Chip)
Data

data has been read from
truncation.)
1 (POS Terminal
Attendance)
1 (Unattended terminal)
0 (On premises of card
acceptor facility)
1 (Off premises of card
acceptor facility
[merchant terminal
remote location])
4 (POS Cardholder
Presence)
0 (Card present)
7 (POS Transaction Status)
0 (Normal request)

B-5

Data Element
Subfield
Value
Terminal Level)
1 (Authorized Level 1
CAT: Automated
dispensing machine with
PIN)
CAT: Self-service
terminal)
CAT: Limited-amount
terminal)
Input Capability)
Stripe)
A properly identified PayPass-only Transaction at an unattended POS Terminal

occurs when the following values are present in the First Presentment/1240
message.
Data Element
Subfield
Value

Code)

Capability)
stripe)
Environment)

contactless M/Chip)
2 (On card acceptor
premises; unattended
terminal)
4 (Off card acceptor
premises; unattended)
6 (Off cardholder
premises; unattended)
B-6
1 (Card present)


B.3 Quick Payment Service Transactions
Data Element
Subfield
Value
7 (Card Data: Input Mode) One of the following:

Code [MCC])

stripe)

contactless M/Chip)
An MCC approved to be
PayPass-only as published
from time to time in the
Global Operations Bulletin.
B.3 Quick Payment Service Transactions

A properly identified QPS Transaction occurs when the following values are
present in the First Presentment/1240 message.
Data Element
Subfield
Value

Code)

Capability)
2 (Magnetic stripe reader
capability)
5 (Integrated circuit card
[ICC] capability)

stripe)
B (Magnetic strip reader
and key entry capability)
C (Magnetic stripe
reader, ICC, and key

entry capability)
D (Magnetic stripe
reader and ICC
capability)
E (ICC and key entry
capability)
contactless M/Chip)

B-7

B.4 Cardholder-activated Terminal (CAT) Transactions
Data Element
Subfield
Value
Environment)
1 (On card acceptor
premises; attended
terminal)
3 (Off card acceptor
premises; attended
terminal)
5 (Cardholder Present Data) 0 (Cardholder present)
1 (Card present)
7 (Card Data: Input Mode)
2 (Magnetic stripe reader
input)

Code [MCC])
PDS 0044 (Program
Participation Indicator)

stripe)
B (Magnetic strip reader

input; track data
captured and passed
unaltered)
C (Online Chip)
F (Offline Chip)

contactless M/Chip)
PayPass Mapping
Service applied) (This
value A or M.)
An eligible Quick Payment

Service (QPS) MCC.
I (Ineligible for chargeback)

A CAT Transaction must be identified with the appropriate CAT level indicator
value in authorization and clearing messages, as follows:
B-8
CAT Level 1: Automated Dispensing Machines (CAT 1)
CAT Level 2: Self-Service Terminals (CAT 2)


CAT Level 3: Limited Amount Terminals (CAT 3)
CAT Level 4: In-Flight Commerce Terminals (CAT 4)
CAT Level 6: Electronic Commerce Transactions (CAT 6)
CAT Level 7: Transponder Transactions (CAT 7)
In Authorization Request/0100 and Authorization Request Response/0110

messages, the CAT level indicator is located in DE 61 (Point-of-Service Data),
subfield 10 (Cardholder-Activated Terminal Level). In First Presentment/1240,
Chargeback/1442, Second Presentment/1240, and Arbitration Chargeback/1442
messages, the CAT level indicator is located in PDS 0023 (Terminal Type). For
additional requirements, see the Customer Interface Specification and the IPM
Clearing Formats manuals.
Messages used at CATs must communicate to the Cardholder, at a minimum,
the following:
Invalid Transaction;
Unable to Route;
Invalid PINre-enter (does not apply to CAT 2, CAT 4, CAT 6, or CAT 7);
and
Capture Card (if Card retention is available).
The First Presentment/1240 message of a CAT Transaction must contain one of

the following values in DE 22 (Point of Service Data Code), subfield 7 (Card
Data: Input Mode):
A(PAN auto-entry via contactless magnetic stripe)
B(Magnetic stripe reader input, with track data captured and passed
unaltered; does not apply to CAT 3)
C(Online Chip)
F(Offline Chip)
M(PAN auto-entry via contactless M/Chip)
N(Contactless input, PayPass Mapping Service applied [This value is

visible only to Issuer; Acquirers use value A or M])
S(Electronic commerce; applies to CAT 6 only)
2(Magnetic stripe reader input; applies to CAT 3 only)

B-9

B.4.1 CAT Level Requirements

The following requirements apply to the specific CAT levels indicated.
B.4.1.1 Dual Capability for CAT 1 and CAT 2

A CAT device may have dual capability as a CAT 1 and a CAT 2. Dual
capability allows a CAT device to identify each Transaction as CAT 1 or CAT 2,
depending on the presence of a PIN (online or offline).
IF
THEN
A Cardholder is prompted for a PIN and

enters a PIN (online or offline)
The Acquirer must identify the Transaction

with the CAT Level 1 indicator.
A Cardholder is not prompted for a PIN

and does not enter a PIN (online or
offline)
The Acquirer must identify the Transaction

with the CAT Level 2 indicator.
A CAT 1 device that supports offline PIN, but not online PIN, must have dual
capability as a CAT 2 device and comply with all CAT 2 requirements
(including support of No CVM).
B.4.1.2 CAT Level 1: Automated Dispensing Machines (CAT 1)

The following CVM requirements apply to CAT 1 devices:
1. CAT 1 devices must accept PIN as the CVM.
2. CAT 1 devices must support online PIN and may also support offline PIN.
a. Online PIN is the mandatory CVM for magnetic stripe Transactions.
b. PIN (online or offline) is the mandatory CVM for chip Transactions.
3. CAT 1 devices must not support only offline PIN as CVM.
4. CAT 1 devices must not perform the CVM fallback.
5. CAT 1 devices must not accept signature or No CVM as the CVM.
6. The Standards relating to PIN and key management security apply to CAT
1 devices.
The following authorization requirements apply to CAT 1 devices:
1. CAT 1 devices must have online capability.
a. All magnetic stripe Transactions, regardless of amount, must be
authorized online by the Issuer on a zero floor limit basis.
b. Chip Transactions greater than USD 100, or its local currency
equivalent, must be authorized online by the Issuer.
B-10


2. CAT 1 devices may have offline capability. Chip Transactions less than or
equal to USD 100, or its local currency equivalent, may be authorized
offline by the EMV chip.
3. Limit-1 processing does not apply.
4. The MIP X-Code authorization response must be a decline. The Issuer is
liable for Transactions that are approved under acquirer MIP X-Code, up to
the MIP X-Code limits specified by the Corporation.
The following additionally apply to CAT 1 devices:
1. There is no maximum amount limit for Transactions authorized online by
the Issuer. The maximum amount limit for Transactions authorized offline
by the EMV chip is USD 100, or its local currency equivalent.
2. A CAT 1 hybrid POS Terminal must be capable of performing fallback
procedures from chip to magnetic stripe, unless it is prohibited by a
region.
3. CAT 1 devices may support Address Verification Service (AVS) and CVC 2
validation.
4. Chargeback rights apply to Transactions at CAT 1 devices under message
reason codes 4808 and 4847, and do not apply with respect to message
reason codes 4837 and 4863.
5. Card retention at CAT 1 devices is not required; however, if the capability
is available, the Merchant may do so only at the Issuers specific direction
and in accordance with the procedures set forth in Chapter 5, Card
Recovery and Return Standards, of the Security Rules and Procedures
manual.
B.4.1.3 CAT Level 2: Self-Service Terminal (CAT 2)

1. CAT 2 devices must accept No CVM as the CVM.
2. CAT 2 devices must not accept signature or PIN (online or offline) as the
CVM.
1. All magnetic stripe Transactions, regardless of amount, must be authorized
online by the issuer on a zero floor limit basis.
2. Chip Transactions must be authorized either online by the Issuer or for
Transactions less than or equal to USD 100 or its local currency equivalent,
may be authorized offline by the EMV chip.

B-11

4. The issuer is liable for Transactions that are approved under acquirer MIP
X-Code, up to the MIP X-Code limits specified by the Corporation.
1. There is no maximum amount limit for Transactions authorized online by
the Issuer. The maximum amount limit for Transactions authorized offline
by the EMV chip is USD 100, or its local currency equivalent.
2. A CAT 2 hybrid POS Terminal must be capable of performing fallback
procedures from chip to magnetic stripe, unless it is prohibited by a
region.
3. CAT 2 devices may support AVS and CVC 2 validation.
reason codes 4808, 4837, 4840, and 4847, and do not apply with respect to
message reason codes 4862, 4863, and 4871.
5. Card retention at CAT 2 devices is not required; however, if the capability
is available, the Merchant may do so only at the Issuers specific direction
and in accordance with the procedures set forth in Chapter 5 of the
Security Rules and Procedures manual.
B.4.1.4 CAT Level 3: Limited Amount Terminals (CAT 3)

2. CAT 3 devices may accept offline PIN as the CVM for chip Transactions, in
accordance with the security requirements for PIN and key management.
3. CAT 3 devices must not accept signature as the CVM.
4. Use of CAT 3 devices is restricted to the following MCCs:
4784Bridges and Road Fees, Tolls
7523Automobile Parking Lots and Garages
7542Car Washes
5499Miscellaneous Food Stores-Convenience Stores, Markets, and

Specialty Stores, solely for PayPass-only Transactions occurring within
Germany, Poland, Slovenia, Spain, Switzerland, Turkey, and the United
Kingdom

1. The CAT 3 device must not have online capability. Chip Transactions may
be authorized offline by the EMV chip.
2. The CAT 3 device must check the Card account number against the
Electronic Warning Bulletin when the device has such capability.
B-12


3. Limit-1 and X-code processing does not apply.

The following maximum Transaction amount requirements apply to CAT 3
devices:
1. At PayPass-only CAT 3 devices located in:
a. Belgium, Germany, Italy, the Netherlands, Slovenia, and Spain, the
maximum Transaction amount is EUR 25
b. Poland, the maximum Transaction amount is PLN 50
c. Switzerland, the maximum Transaction amount is CHF 40
d. Turkey, the maximum Transaction amount is TRY 35
e. the United Kingdom, the maximum Transaction amount is GBP 15
2. For intra-European CAT 3 Transactions, the maximum Transaction amount
is EUR 50 for magnetic stripe and chip Transactions.
3. For Hong Kong domestic Transactions occurring at CAT 3 devices
identified with MCC 7523 (Automobile Parking Lots and Garages), the
maximum Transaction amount is HKD 500.
4. For all other CAT 3 devices, the maximum Transaction amount is USD 40,
or its local currency equivalent, for magnetic stripe and chip Transactions.
1. A CAT 3 device that also is an EMV hybrid device is prohibited from
performing fallback procedures from EMV chip to magnetic stripe.
reason codes 4808, 4837, and 4847, and do not apply with respect to
message reason codes 4863 and 4871.
3. There is no card retention requirement for CAT 3 devices.
B.4.1.5 CAT Level 4: In-Flight Commerce (IFC) Terminals (CAT 4)

CVM.
1. Prior to authorization, the Merchant must conduct a Mod-10 check digit
routine to verify Card authenticity and must confirm that the Card account
number is within a valid MasterCard BIN range (51xxxx to 55xxxx).
online by the Issuer on a zero floor limit basis.
B-13

3. Chip Transactions must be authorized either online by the Issuer or offline

by the EMV chip.
4. Online authorization by the Issuer may occur either air-to-ground during
the Transaction or in a delayed batch.
5. An authorization request may not contain a key-entered Card account
number or expiration date.
6. The Acquirer must convert all refer to card issuer and capture card
messages received from Issuers to decline.
8. The Issuer is liable for Transactions that are approved under acquirer MIP
The following requirements also apply with respect to CAT 4 devices:
1. Acquirers must ensure timely delivery and installation of the IFC Blocked
Gaming File to gambling service providers. IFC Blocked Gaming File
access is required before every gambling Transaction.
2. Transactions at CAT 4 devices are conducted on interactive video terminals
by passengers on airline flights.
3. Use of CAT 4 devices is restricted to the following six MCCs:
4899Cable, Satellite, and Other Pay Television and Radio Services
5309Duty Free Stores
5964Direct MarketingCatalog Merchants
7299Other Servicesnot elsewhere classified
7994Video Game Arcades/Establishments
7995Gambling Transactions
4. For each flight, Acquirers must generate one Authorization Request/0100

message per MCC for each Card account. Flight is defined as one or
more segments of a continuous air flight with the same flight number.
5. The Authorization Request/0100 message must contain a Transaction
category code (TCC) of U for gambling Transactions or R for any other
Transactions.
6. DE 43 must include the airline Merchant name and flight identification in
subfield 1. The city field description must contain the Merchant customer
service telephone number for mailed purchases and gambling Transactions;
for all other CAT 4 Transactions, this information is optional. The
telephone number is not required to be toll-free.
B-14


7. For all transactions at CAT 4 devices, except mailed purchase Transactions,

the Transaction date is defined as the date that the flight departs from the
originating city. The Transaction date for mailed purchases is defined as
the shipment date unless otherwise disclosed to the Cardholder.
8. The Acquirer must ensure that the Merchant provides full disclosure to the
Cardholder via the CAT 4 device before the initiation of any Transactions,
as detailed below. The CAT 4 device must prompt the Cardholder to
acknowledge these disclosure terms before initiating Transaction(s).
Disclosure must include the following:
a. Full identification of the Merchant and provision for recourse in terms
of Cardholder complaints or questions
b. Notification that Transactions will be billed upon the Issuers approval
of the authorization request
c. For mailed purchase Transactions only, any additional shipping or
handling charges
d. Policy on refunds or returns
e. Provision for a paper TID
For gambling Transactions (where permitted), Merchants must additionally
disclose the following:
a. Maximum winnings (USD 3,500) and maximum losses (USD 350)
b. Notification that the total net Transaction amount (whether a net win or
loss) will be applied to the Card account
c. Notification that Cardholder must be at least 18 years of age to play
d. Notification that some Issuers may not allow gambling
9. The Acquirer must ensure that the Merchant can provide an itemized TID
to the Cardholder by printing a TID at the passengers seat, printing a TID
from a centralized printer on the plane, or mailing a TID to the Cardholder.
The device must describe any mailed TID offer and, if accepted, must
require the Cardholder to input his or her name and address. For gambling
Transactions, the Merchant must provide a printed TID. Each TID must
contain:
a. Identification of the passengers flight, seat number, and date of
departure
b. Itemized Transaction detail
c. Gambling Transaction specified as a net win or net loss
d. The truncated Card account number
10. The Acquirer must not submit declined Transactions into clearing.

B-15

11. No surcharges or service fees may be assessed on any Transaction,

including gambling Transactions.
The following additional requirements apply with respect to gambling
Transactions:
1. Gambling Transactions are not permitted at CAT 4 devices acquired within
the Europe Region.
2. Net gambling losses cannot exceed USD 350 per flight per Card account.
Net payouts to Cardholders for gambling wins cannot exceed USD 3,500
per flight per Card account. The Merchant must monitor losses and
winnings throughout the flight to ensure compliance.
3. A gambling win Transaction will result in posting of net winnings (credit)
to the Card account. Under no circumstance may winnings be paid in cash
or other form of payment.
4. Before participating in gambling Activity, the Acquirer must undertake all
reasonable and necessary steps to assure itself and, if requested, the
Corporation, that such gambling Activity will be effected in full compliance
with all applicable laws and regulations. By participating in gambling
Activity, the Acquirer agrees to indemnify, defend, and hold the
Corporation harmless with respect to any claim, damage, loss, fine,
penalty, injury, or cause of action arising or resulting from or attributable to
the Acquirers gambling Activity.
5. The Card account number must be checked against the IFC Blocked
Gaming File. Cardholders whose Card account numbers are listed on the
IFC Blocked Gaming File must be prohibited from initiating gambling
Transactions. Updates to the IFC Blocked Gaming File will be effective on
the first and the 15th day of each month. The Corporation must receive
Card account ranges or BINs that Issuers choose to list on the next
effective updated IFC Blocked Gaming File at least two weeks before the
effective date.
6. All gambling losses authorized post-flight must be submitted for
authorization for the net amount. All gambling Transactions authorized
during the flight will be for the full wager amount (USD 350 or a lower
amount predetermined by the airline and gambling Merchant). No
gambling wins will be submitted for authorization.
7. Gambling Transactions submitted for clearing must be for the net amount
won or lost. Gambling win Transactions will be submitted as a refund
Transaction (DE 3, subfield 1 must contain a value of 20). Interchange will
be paid to Issuers by Acquirers on gambling win Transactions. An
Acquirer may resubmit a gambling Transaction for a different amount
within the specified Transaction limits if it previously was rejected for
exceeding the specified Transaction limitsUSD 3,500 for wins and USD
350 for losses.
B-16



1. There is no maximum amount limit for any Transaction at CAT 4 devices,
except for gambling Transactions.
2. A CAT 4 device that also is a hybrid POS Terminal is prohibited from
performing fallback procedures from EMV chip to magnetic stripe.
4. There are no chargeback restrictions for Transactions at CAT 4 devices.
5. There is no Card retention requirement for CAT 4 devices.
B.4.1.6 CAT Level 6: Electronic Commerce Transactions (CAT 6)

Refer to Chapter 9, Authorization Services Details, of the Authorization
Manual for requirements regarding the identification of electronic commerce
Transactions.
B.4.1.7 CAT Level 7: Transponder Transactions (CAT 7)

CVM.
online by the Issuer on a zero floor limit basis.
2. Chip Transactions must be authorized either online by the Issuer or offline
by the EMV chip.
4. The Issuer is liable for Transactions that are approved under Acquirer MIP
1. There is no maximum amount limit for Transactions at CAT 7 devices.
2. A CAT 7 device that also is a hybrid POS Terminal is prohibited from
performing fallback procedures from chip to magnetic stripe.
4. There are no chargeback restrictions for Transactions at CAT 7 devices.
5. There is no card retention requirement for CAT 7 devices.

B-17


The Acquirer must identify each Payment Transaction with the following
values.
For this type of message
In field
Use this value
Authorization Request/0100 message
DE 3 (Processing Code),
subfield 1 (Cardholder
Transaction Type)
28
DE 18 (Card Acceptor
Business Code)
One of the following;
6532if the Payment
Transaction is processed
by a Customer or its
authorized agent.
6533if the Payment
Transaction is processed
by a Merchant.
A value specified for

Payment Transactions in
the applicable Customerto-Customer
intracountry, or
intercountry business
service arrangement, if
one is in place.
DE 48 (Additional Data
Payment Transaction
Private Use), subfield 77
program type
(Payment Transaction Type
Indicator)
DE 48 (Additional Data P
Private Use), TCC
(Transaction Category Code)
First Presentment/1240 message
DE 3 (Processing Code),
subfield 1 (Cardholder
Transaction Type)
28
DE 26 (Card Acceptor
Business Code)
As described for DE 18
(Merchant Type) in the
Authorization Request/0100
message
DE 48 (Additional Data
Private Use), PDS 0043
(Program Registration ID)
Payment Transaction
program type
The value used for the Payment Transaction program type must be that which
best describes the purpose of the Payment Transaction.
B-18


The Acquirer also should provide either the customer service phone number in
PDS 0170 (Card Acceptor Inquiry Information), subfield 1 (Customer Service
Phone Number) or the URL address in PDS 0175 (Card Acceptor URL) in the
clearing message.
A Payment Transaction Detail addendum may also be submitted with a
Payment Transaction. This addendum provides the Issuer and Cardholder with
enhanced data about the Merchant, the recipient of funds, and other
Transaction details.

A properly identified Mobile Remote Payment Transaction occurs when the
following values are present in the Authorization Request/0100 and Financial
Transaction Request/0200 messages.
Data Element
Subfield
Value
22 (Point of Service [POS]

Entry Mode)
1 (POS Terminal PAN Entry 82 (PAN auto-entry via

Mode)
server)
48 (additional DataPrivate 23 (Payment Initiation

01 (Mobile phone or
Use)
Channel), position 1 (Device Smartphone)
Type)
Data
48 (Mobile Payment
Indicators), position 1
1 (Issuer domain)
2 (Off premises of card
acceptor facility [cardholder

terminal including home PC,
Internet, mobile phone,
PDA])
4 (POS Cardholder
Presence)
5 (Electronic order [home
1 (Card not present)
6 (POS Card Capture

Capabilities)
0 (Terminal/operator has no
Terminal Level)
6 (Electronic commerce)

PC, Internet, mobile phone,

PDA])
card capture capability)
B-19

A properly identified Mobile Remote Payment Transaction occurs when the

following values are present in the First Presentment/1240 message.
Data Element
Subfield

Code)
7 (Card Data: Input Mode) T (PAN auto-entry via server

[issuer, acquirer, or third
party vendor system])
PDS 0052 (Electronic

Commerce Security Level
Indicator)
B-20
Value
8 (Cardholder
Authentication Method)
If online PIN was

transmitted: 2 (PIN)
9 (Cardholder
Authentication Entity)
If online PIN was

transmitted: 3 (Authorizing
agentOnline PIN)
3 (UCAF Collection
Indicator)
If AAV is transmitted: 2 (Full

UCAF)
PDS 0194 (Remote Payments

Program Data)
1 (Issuer domain)
PDS 0198 (Device Type

Indicator)
01 (Mobile phone or
Smartphone)

Lodging Merchant Services

This appendix provides Card acceptance requirements relating to the
Guaranteed Reservations, Express Checkout, and Advance Resort Deposit
services.
C.1 Guaranteed Reservations ............................................................................. C-1

C.2 Express Checkout ........................................................................................ C-2
C.3 Advance Resort Deposit .............................................................................. C-3

C-i


A hotel, motel, resort, or other lodging Merchant participating in the
Guaranteed Reservations service is obligated to have a room available when
the Cardholder arrives (until checkout time the next day). The Cardholder is
obligated to cancel a confirmed reservation before 18:00 at the hotel, motel, or
resort (Merchants local time). If the cardholder fails to cancel the confirmed
reservation, the Merchant can charge the Cardholder a no-show charge equal
to one nights lodging.
The following procedure applies:
1. A Cardholder contacts a participating Merchant and requests to guarantee a
room with his or her Card. The reservation clerk explains the terms of the
MasterCard Guaranteed Reservations service, specifically including the fact
that an authorization will be performed at the time of arrival and the
cancellation procedure that the Cardholder must follow to avoid being
charged a no-show charge equal to one nights lodging.
2. The clerk records the Card and Cardholder information; confirms the room
rate and location; issues the Cardholder a reservation confirmation number;
and advises the Cardholder to retain it. The Merchant is recommended also
to confirm the guaranteed reservation in writing, advising the Cardholder
of his or her confirmation number and cancellation procedures.
3. If a Cardholder who has guaranteed his or her reservation by use of his or
her Card contacts the Merchant to cancel the reservation within the agreed
upon period, then the Merchant is obligated to cancel the guaranteed
reservation and issue the Cardholder a cancellation number that verifies
that the reservation has been canceled. The Cardholder should be advised
to retain the cancellation number. The Merchant is recommended to
confirm the cancellation in writing, advising the Cardholder of the
cancellation number.
4. A Cardholder who has guaranteed a reservation by use of his or her Card
arrives within the specified period (until checkout time the next day), the
Merchant is obligated to provide a room. If the Merchant is unable to
provide a room, then the Merchant must provide, at no additional charge,
a comparable room for one night, transportation to the other lodging, and
a three-minute domestic or long distance phone call as the Cardholder
deems necessary to advise of a change of location.
5. Before the Cardholders expected arrival, the Merchant shall prepare a
registration card and assign a room number on that card.
6. If the Cardholder does not cancel and does not stay at the Merchant
location, then the Merchant may bill the Cardholder for one nights room
rate. The following procedure should be followed:

C-1

a. The Merchant must obtain authorization from the Issuer and include on
the TID the date of no show, assigned room number, and the words
guaranteed reservation/no-show in place of the Cardholders
signature.
b. The Merchant must retain the no-show registration card, reflecting the
assigned room number, for six months from the date that the TID is
submitted to the Acquirer.
7. The Corporation reserves the right to prevent the Acquirer from allowing a
specific Merchant to participate in the MasterCard Guaranteed Reservations
service where in the opinion of the Corporation, the Merchant has abused
the privilege.

A Merchant participating in the Express Checkout service must follow these
procedures:
1. At the time of check-in, inquire whether the Cardholder would like to use
the Express Checkout service or routinely provide the necessary form
(Express Checkout Authorization Form) in its welcome package.
2. Have the Cardholder complete and sign the Express Checkout
Authorization Form, which should state clearly that the Cardholder directs
the Merchant to bill the Card for the Transaction amount and process the
TID without a Cardholder signature.
3. Imprint a TID with the Card account number and follow normal
authorization procedures.
4. On
the
the
the
the Cardholders departure, the Merchant must complete the TID using
checkout date as the Transaction date, indicating the total amount of
bill and print legibly in the space allotted for the customers signature
words signature on fileexpress checkout.
5. Mail a copy of the itemized bill, TID, and the Express Checkout
Authorization Form to the Cardholder at the address noted on the
authorization form within three business days of the date the Cardholder
checked out.
6. Retain and make available to the Corporation and the Issuer all pertinent
records pertaining to the itemized bill and authorization requests in the
event of a dispute.
C-2



A Merchant participating in the Advance Resort Deposit service must follow
these procedures:
1. Explain the terms of the advance resort deposit reservation, cancellation,
and refund policies to the Cardholder.
2. Request the Card account and Cardholder address information and confirm
the room rate and location.
3. Obtain authorization from the Issuer and include on the TID the
reservation confirmation number and the words advance deposit in place
of the Cardholders signature. The Merchant is recommended to note on
the TID any special terms and conditions regarding its refund policy.
4. Mails a letter of confirmation, a copy of the TID (including the reservation
confirmation number) and information concerning its cancellation and
refund policies to the Cardholder.
5. If a Cardholder cancels his or her reservation in accordance with the
agreed upon procedures, the Merchant is obligated to cancel the
reservation and issue a credit to the Cardholder.

C-3

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What are the procedures for guaranteed reservations and no-shows?

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What are the procedures for express checkouts?

What are the procedures for express checkouts?

MasterCard Rules

The information contained in this document is proprietary to

Trademark notices and symbols used in this manual reflect the

For printed documents, MasterCard will bill Principal. Please refer to

MasterCard provides details about the standards used for this

A translation of any MasterCard manual, bulletin, release, or other

19692011 MasterCard. Proprietary. All rights reserved.

Summary of Changes, 7 December 2011

Updated Standards relating to Changes of Control

Updated Standards regarding the removal of the prohibition against competing

Updated Standards for Debit Cards

Updated Travel and Entertainment Merchant Standards

Updated Standards for Unique transactions

Updated Standards regarding Merchant Point-of-Sale practices

19692011 MasterCard. Proprietary. All rights reserved.

Updated Standards for Remote Transaction accounts

Updated Standards for U.S. Region Third Party Processors

Added information regarding Transaction identification requirements

Added information regarding Card acceptance requirements relating to the

Clarified wording where appropriate

19692011 MasterCard. Proprietary. All rights reserved.

Cross-reference, 7 December 2011

The text to appear as follows in this update

Appeared here in the 15 July 2011 MasterCard Rules

8.1 Transaction Requirements

8.2 Authorization Requirements

New section heading

8.2.1 Full and Partial Reversals

8.2.1.1 Reversal for Conversion of Approval to

8.2.2 Full and Partial Approvals and Account

8.3 Acceptance Procedures

8.3.1 Card, Access Device, or Mobile Payment

8.3.2 If a Card is Presented, Determine Whether CBG 2.1.1.2

8.3.2.2 Suspicious Cards

8.3.3 Obtaining an Authorization

CBG 2.1.2.1, 2.1.2.2

8.3.3.1 When to Obtain an Authorization

8.3.3.2 Chip Transactions

8.3.3.3 Lodging, Cruise Line, and Vehicle Rental

CBG 2.1.3, 2.1.3.3, 2.1.3.4

8.3.3.4 Adding a Gratuity

CBG 2.1.4, 2.1.4.1

8.3.4 Suspicious Transactions and Pick-up-card

CBG 2.1.2.4, 2.1.2.5

8.3.5 Completing the Transaction

CBG 2.1.6, 2.1.6.1

8.3.5.1 TID Information Requirements

8.3.5.2 Prohibited Information

8.3.5.3 Cardholder Verification Method (CVM)

19692011 MasterCard. Proprietary. All rights reserved.

The text to appear as follows in this update

Appeared here in the 15 July 2011 MasterCard Rules

8.3.5.4 Give the Cardholder a Copy of the

8.3.6 Multiple TIDs and Partial Payment

8.3.7 Specific Terms of a Transaction

8.3.8 Returned Products and Cancelled Services