Global Clearing

Management System
Reference Manual
15 October 2019

TA
 Summary of Changes, 15 October 2019

Summary of Changes, 15 October 2019

This document reflects changes associated with the Global Clearing Management System
Reference Manual. To locate these changes online, click the related hyperlinks.

Description of Change Where to Look

Updated references of “IPM Pre-edit and Utilities” Throughout
to “Clearing Optimizer”
Chapter 11—Business Service
Corrected the syntax/attribute for “Business Step 1b: Validate Syntax/Attribute of Selection
Activity” for PDS 0158 Elements
Chapter 13—Currency Conversion
Added a section providing an overview of the Acquirer Currency Conversion Rate File
Acquirer Currency Conversion Rate File
Added a section providing an overview of the Originating Institution Payment Transaction
Originating Institution Payment Transaction Currency Conversion Rate File
Currency Conversion Rate File
Modified wording to clarify where all of the Currency Conversion for First Presentments
currencies that Mastercard offers for regional Qualifying for Regional Settlement Service
settlement can be found
Adjusted section layouts and added sections to Acquirer Side Data Elements
detail usage of the Acquirer Currency Conversion
Rate File under Examples 1, 2, and 3
Added detail regarding the reconciliation amount
on transactions for which Mastercard does not
offer a regional settlement currency

Chapter 14—ICCR Service

Adjusted the Comments for Field IDs 8, 16, 21, ICCR Reports
22, and 23 under the Detail Record table
Chapter 16—Cross-Border Fee Manager Service
Adjusted the Comments for Field IDs 8, 16, 21, Cross-Border Fee Manager Service Reports
22, and 23 under the Detail Record table
Chapter 27—Acquirer Currency Conversion Rate File Format
Added a chapter detailing the Acquirer Currency Acquirer Currency Conversion Rate File Format
Conversion Rate File format
Chapter 28—Originating Institution Payment Transaction Currency Conversion Rate File
Format

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Global Clearing Management System Reference Manual • 15 October 2019 2
 Summary of Changes, 15 October 2019

Description of Change Where to Look

Added a chapter detailing the Originating Originating Institution Payment Transaction
Institution Payment Transaction Currency Currency Conversion Rate File Format
Conversion Rate File format

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Global Clearing Management System Reference Manual • 15 October 2019 3
 Contents

Contents

Summary of Changes, 15 October 2019........................................................... 2

Chapter 1: Overview of Global Clearing Management System......... 15

Definition of Global Clearing Management System.......................................................... 16
Who Participates in Clearing?...................................................................................... 16
Why Do Customers Perform Clearing?.........................................................................17
What is the Difference Between Clearing and Settlement?...........................................17
System Integration Diagram.........................................................................................18
Clearing Basics................................................................................................................. 18
Daily Clearing Cycle Schedule...................................................................................... 18
Settlement Times.........................................................................................................20
Characteristics of the IPM Format................................................................................ 20
Elements of Integrated Product Messages............................................................... 20
Customer Currency Conversion for Chargebacks (All Cycles)................................... 21
IPM Message Types................................................................................................. 21
Transferring Clearing Data........................................................................................... 21
Processing Cycles of Clearing Transactions................................................................... 22
Protection of Cardholder Confidential Information........................................................... 24
Distributed IPM Software................................................................................................. 25
Customer Requirements and Responsibilities in Clearing Transactions...............................26
Acquirer Responsibilities in Clearing Transactions......................................................... 26
Issuer Responsibilities in Clearing Transactions............................................................. 27
Global Clearing Management System Responsibilities in Clearing Transactions.............27
Establishing Global Clearing Management System Services...............................................28
Documents Related to Global Clearing Management System............................................28

Chapter 2: Clearing Processing Details........................................................... 30

Creating IPM Messages.................................................................................................... 32
IPM Message Construction Requirements.................................................................... 32
IPM Structure.............................................................................................................. 33
Supported and Unsupported Data Elements of IPM Format Messages.......................... 33
Handling of Unsupported Elements.........................................................................33
Handling of Supported Elements.............................................................................34
Customer-to-Customer Proprietary Data in the IPM Format..........................................35
Customer-Generated Files in the IPM Format............................................................... 36
Sequence of the Customer-Generated IPM File........................................................37
Files Generated by Mastercard..................................................................................... 38
Customer Clearing File Delivery Options.................................................................. 38

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Clearing File Delivery Options.................................................................................. 40

Global Clearing Management System Sequence of the File Generated by
Mastercard..............................................................................................................43
Merging of Clearing Information Between Cycles....................................................46
Delivery of Administrative Messages Following Clearing Cycles................................47
Sequence of the Early Reconciliation File................................................................. 48
Administrative, IPM Text Messages Used by Global Clearing Management System...50
Broadcast Text Messages Used by Global Clearing Management System..................51
No Data Text Messages Used by Global Clearing Management System.................... 51
Processing and Delivery of Clearing Files...........................................................................52
Clearing Times.............................................................................................................52
Methods of Transmitting Data to Global Clearing Management System....................... 53
Bulk IDs for Clearing Data............................................................................................53
Bulk IDs for the MPE....................................................................................................54
Record Descriptor Word at the Beginning of IPM Messages......................................... 56
Clearing Optimizer Software, Workstation Plus Version........................................... 56
MHPF MIP Load and Unload Modules..................................................................... 56
CONNECT:Direct..................................................................................................... 56
Mastercard Network through a MIP........................................................................ 56
Processing Cards That have Converted from Cirrus to the Visa/PLUS ATM Network...... 57
Automated Fuel Dispenser Processing.......................................................................... 58
Guiding Principles................................................................................................... 58
Multi-Clearing Presentments for Authorization Transactions.........................................59
Confirmation of Successful Receipt and Processing of Global Clearing Management
System Transmission Files................................................................................................. 60
Penalty for Late Global Clearing Management System Retransmission Request............ 60
Global Clearing Management System Rejection of Messages............................................60
Full IPM File Rejection by Global Clearing Management System................................... 61
Full Clearing File Rejections Delivered with Early Reconciliation................................ 62
Single Message Rejection.............................................................................................63
Single Message Rejections Delivered with Early Reconciliation................................. 64
Reconciling Single Message Rejections.................................................................... 65
Messages Supported by Mastercard for Mexico Domestic Transactions.........................65
Syntax Errors for Mexico Domestic Transactions.......................................................65
Syntax Error Returns for Mexico Domestic Transactions........................................... 66
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input
Sequence Report......................................................................................................... 66

Chapter 3: Processing Cycles and Regulations............................................88

Clearing Processing Cycles and Time Frames.................................................................... 90
Customer Requirements and Guidelines for Processing Transactions through Global
Clearing Management System..................................................................................... 90

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Customer Guidelines for First Presentments................................................................. 91

Currency Conversion of Global Clearing Management System Transactions.............91
Time Frame for First Presentments...........................................................................91
Risk Reduction Process Applied to Global Clearing Management System
Transactions............................................................................................................ 92
Retrieval Requests and Fulfillments.............................................................................. 93
Healthcare Retrieval Requests and Fulfillments.........................................................93
Chargeback Processing................................................................................................ 94
Time Frame for First Chargeback.............................................................................94
Time Frames for Second Presentments or Arbitration Chargebacks..........................95
Time Frames for Disputes Involving Arbitration........................................................95
Chargeback Timeliness Edits................................................................................... 96
Exclusion from Chargeback Timeliness Edits............................................................ 97
Processing Chargeback Messages............................................................................98
Identifying the Chargeback Cycle....................................................................... 98
Submitting the Transaction Amount for First Chargebacks, Second
Presentments, and Arbitration............................................................................ 99
Chargeback Procedures for Purchase with Cash Back Transactions....................100
DE 95 (card issuer reference data).....................................................................102
PDS 0262 (Documentation Indicator)................................................................ 103
DE 72 (Data Record)......................................................................................... 103
Getting Additional Information about Chargebacks.............................................. 103
Arbitration Following Chargebacks............................................................................ 105
Chargeback Infractions Worthy of Compliance Action............................................... 105
Transaction Research Request.........................................................................................105
Ways to Perform a Transaction Research Request....................................................... 106
Capabilities of the Transaction Investigator Tool......................................................... 106
Transaction Investigator Product Registration............................................................. 107
Accessing and Using the Transaction Investigator.......................................................107
How to Set User Preferences......................................................................................110
Understanding Fees for Transaction Research Requests.............................................. 111
Global Clearing Management System Transaction and Chargeback Analysis Reports...... 111

Chapter 4: Global Clearing Management System Transaction

Processing for Account Level Management Services............................ 121
Account Level Management...........................................................................................122

Chapter 5: Mastercard Contactless and PAN Mapping Service.........123

Overview of the Mastercard Contactless and PAN Mapping Service................................ 124
Mastercard Contactless Mapping Service Participation Guidelines.............................. 124
PAN Mapping Service..................................................................................................... 125

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Processing-only Participation in the Mastercard Contactless Mapping Service............. 125

Processing and Issuance of Non-card Form Factor Participation.................................. 125
Process Flow of the Mastercard PAN Mapping Service................................................ 125
Using the MPE to Identify Issuer Account Ranges Participating in the Contactless
Mapping Service........................................................................................................126
Identifying PAN Mapping within IPM Messages..........................................................127
Contents of PDS 0001 (Mastercard Mapping Service Account Number).................127
PDS 0001, Subfield 1 (Account Number Type)...................................................128
PDS 0001, Subfield 2 (Account Number).......................................................... 130
Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data input
Mode)...................................................................................................................130
Processing Transactions through the Mastercard Contactless Mapping Service........... 130
DE 22 Values Identify Contactless Transactions to Global Clearing Management
System..................................................................................................................131
Processing First Presentment/1240 Messages through the Mastercard
Contactless Mapping Service.................................................................................131
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration
Chargeback/1442 Messages through the Mastercard Contactless Mapping
Service.................................................................................................................. 132
Processing Second Presentment/1240 Messages through the Mastercard
Contactless Mapping Service.................................................................................134
Processing Fee Collection (Retrieval Fee Billing)/1740 Messages through the
Mastercard Contactless Mapping Service...............................................................134
Summary of the Contents of Elements Related to the Mastercard Contactless
Mapping Service................................................................................................... 135
Interchange Compliance Processing........................................................................... 136
MasterCom Processing.............................................................................................. 137

Chapter 6: Mastercard Digital Enablement Service................................ 138

Overview of Mastercard Digitial Enablement Service....................................................... 139
Mastercard Digital Enablement Service Process Flow.......................................................139
Using the MPE to Identify Issuer Account Ranges Participating in the Mastercard Digital
Enablement Service........................................................................................................ 143
Identifying Mastercard Digital Enablement Service Mapping within IPM Messages.......... 143
Contents of PDS 0001 (Mastercard Mapping Service Account Number)..................... 143
PDS 0001, Subfield 1 (Account Number Type)....................................................... 144
PDS 0001, Subfield 2 (Account Number)............................................................... 145
Processing First Presentment/1240 Messages through the Mastercard Digital
Enablement Service Mapping Service..............................................................................145
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration
Chargeback/1442 Messages through the Mastercard Digital Enablement Service............146
Processing Second Presentment/1240 Messages through the Mastercard Digital
Enablement Service........................................................................................................ 148

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Global Clearing Management System Reference Manual • 15 October 2019 7
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Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement

Service........................................................................................................................... 148
Summary of the Contents of Elements Related to the Mastercard Digital Enablement
Service........................................................................................................................... 149
Interchange Compliance Processing................................................................................150
MasterCom Processing................................................................................................... 151

Chapter 7: Mastercard In Control Platform.................................................152

Overview of the Mastercard In Control Platform............................................................. 153
Mastercard In Control Real Card Spend Control Service.................................................. 153
Global Clearing Management System Processing for the Mastercard In Control
Platform.........................................................................................................................154
Mastercard In Control Mapping Process..................................................................... 154

Chapter 8: Private Label Program....................................................................157

Overview of the Private Label Program........................................................................... 158
Private Label Addendum................................................................................................ 158
Private Label Card Activation Plus Initial Load................................................................. 159
Participation in the Private Label Program....................................................................... 159

Chapter 9: Clearing Chip Processing Service..............................................160

Clearing Chip Processing Service Overview..................................................................... 161
Chip to Magnetic Stripe Conversion............................................................................... 161

Chapter 10: Extended Decimal Precision Service..................................... 163

Extended Decimal Precision Service Overview................................................................. 164
Extended Decimal Precision Adjustment Amount Determination.....................................164

Chapter 11: Business Service..............................................................................168

Definition of Business Service......................................................................................... 170
Type of Business Service Arrangements...........................................................................171
Business-to-Business Business Service.........................................................................173
Customer-to-Customer Business Service.................................................................... 173
Intracountry Business Service..................................................................................... 173
Intercountry Business Service..................................................................................... 173
Intraregional Business Services................................................................................... 173
Interregional Business Services................................................................................... 173
Participating in Business Service Arrangements...............................................................174
Requirements for Customers Participating in Business Service Arrangements..............174
Business Service Features and Qualification Criteria........................................................ 174

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Additional Features for Business Service Arrangements.............................................. 176

Business Service Calendar and Transaction Timeliness............................................176
Interchange Rates and Fees Structure.................................................................... 176
Manual Cash Disbursement Accommodation Fee.................................................. 176
Procedures for Applying for a Business Service Arrangement.......................................... 177
Identifying Business Service within IPM Messages........................................................... 177
Contents of PDS 0158 (Business Activity)................................................................... 178
PDS 0158, Subfield 1 (Card Program Identifier)..................................................... 178
PDS 0158, Subfield 2 (Business Service Arrangement Type Code).......................... 179
PDS 0158, Subfield 3 (Business Service ID Code)................................................... 179
Account Management System (AMS) Region Codes......................................... 180
Intraregional ID Codes...................................................................................... 180
Interregional ID Codes...................................................................................... 181
PDS 0158, Subfield 4 (Interchange Rate Designator)..............................................183
Acquirer Creation of the Outbound Message with Business Activity........................... 183
Issuer Identification of Business Activity within the Inbound Message.........................184
Retrieval Request and Retrieval Fee Billing Transactions.............................................. 184
When Business Service is Submitted by the Customer................................................ 184
Using the MPE to Select the Card Program Identifier and Business Service Information... 185
Data and Message Content Validation by Global Clearing Management System........ 189
Step 1: Validate the Elements Used in the Selection Process...................................189
Step 1a: Validate Format Requirements................................................................. 190
Step 1b: Validate Syntax/Attribute of Selection Elements....................................... 190
Step 1c: Validate Content of Selection Elements....................................................191
Step 2: Determine Whether the Transaction Requires Business Service Processing.. 192
Step 3: Business Service Arrangement Selection.................................................... 193
Step 3a (Standard Process): Retrieve and Match Card Program Identifier and
Business Service Arrangement Participation........................................................... 193
Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program
Identifier and Business Service Arrangement Participation..................................... 194
Global Clearing Management System Validation of Business Service Arrangement..... 197
Step 4: Validate the Message Reason Code and Reversal Indicator for the Card
Program Identifier/Business Service Arrangement Combination............................. 198
Step 5: Validate the Processing Code and Reversal Indicator for the Card
Program Identifier/Business Service Arrangement Combination............................. 199
Step 6: Determine Whether IRD Validation is Required for the Transaction.............199
Interchange Rate Designator (IRD) Validation............................................................. 200
Step 7: Validate the Processing Code and Reversal Indicator for the IRD................ 200
Step 8: Validate Product Codes for the IRD............................................................201
Step 9: Validate CAB Programs for the IRD............................................................ 202
Step 10: Validate Transaction Currency for the Business Service............................. 203
Step 11: Check for Intracountry Business Service Overrides................................... 204
Enforcement of Business Service Arrangements......................................................... 204

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Default Business Service Arrangements................................................................. 205

Life Cycle Processing Supported by Global Clearing Management System.................. 205
Global Clearing Management System Edits, Fee Assignments, and Fee Calculation.... 208

Chapter 12: Settlement Service........................................................................ 212

Definition of Settlement Service..................................................................................... 213
Calculating Net Positions........................................................................................... 214
Settlement Service Levels................................................................................................214
Settlement Service Selection Process...............................................................................216
Settlement Service Selection...................................................................................... 217
Settlement Service Parameters................................................................................... 218
Settlement Service Participation and Criteria Selection............................................... 219
Intracurrency Settlement Service Selection................................................................. 220
Regional Settlement Service Selection........................................................................ 223
Settlement Date Cycle Calculation..................................................................................226
Fee Calculation Routines for Settlement Service Levels....................................................226
System-Provided Data in PDS 0159 (Settlement Data)..................................................... 227
Settlement Service Advisements..................................................................................... 228
Customer Settlement Advisements............................................................................ 228

Chapter 13: Currency Conversion.................................................................... 230

Overview of Currency Conversion Service Performed During Clearing Process.................231
Amount and Currency Definitions..............................................................................232
Rates Used for Currency Conversion.......................................................................... 232
Data Elements Calculated During Currency Conversion Process...................................... 234
Currency Conversion for First Presentments Qualifying for Regional Settlement
Service.......................................................................................................................234
Acquirer Side Data Elements...................................................................................... 234
Other Acquirer Calculation Considerations: Computed Cross Rates and Fixed
Interchange............................................................................................................... 242
Issuer Side Data Elements.......................................................................................... 243
Currency Conversion for First Presentments Qualifying for Intracurrency Settlement
Service.......................................................................................................................251
Rounding of Global Clearing Management System Currency Conversion................... 251
Customer Currency Conversion for Chargebacks (All Cycles).......................................... 252
Customer Requirements for Submitting First Chargeback Amounts............................252
Acquirer Processing of Second Presentments............................................................. 256
Processing of Arbitration Chargebacks.......................................................................256
Currency Conversion of Arbitrations.......................................................................... 257
Currency Conversion for Settlement of Fee Collection Messages.................................... 257
Currency Conversion for Reversals..................................................................................257
Currency Update/1644-640 Messages............................................................................ 258

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T057 Currency Conversion Rate File...........................................................................259

Acquirer Currency Conversion Rate File.......................................................................... 262
Originating Institution Payment Transaction Currency Conversion Rate File..................... 263
Clearing Detail File (IP755120-AA) to Facilitate Acquirer Reconciliation........................... 264

Chapter 14: ICCR Service...................................................................................... 265

ICCR Service Overview................................................................................................... 266
ICCR Enrollment.............................................................................................................266
ICCR Reports..................................................................................................................266
ICCR Bulk Files............................................................................................................... 269

Chapter 15: Reconciliation.................................................................................. 270

Options for Reconciliation of Clearing and Settlement Data............................................271
IPM Reconciliation Messages for Clearing and Settlement Data...................................... 271
Reconciliation Messages Generated by the Global Clearing Management System...... 271
Financial Messages Considered in Reconciliation........................................................ 272
Acknowledgement Messages Created by Global Clearing Management System.........272
Notification Messages................................................................................................273
Location of Reconciliation Totals................................................................................ 273
List of Optional Reconciliation Categories..............................................................274
Account Range Reconciliation Category........................................................... 285
Transaction Function Reconciliation Category................................................... 285
Customer Reconciliation Indicator 1 Reconciliation Category............................ 286
Functionality in the Reconciliation Messages......................................................... 287
File Currency Summary/1644-680 Message................................................................288
Financial Position Detail/1644-685 Message...............................................................288
Choosing Clearing Reconciliation Categories.........................................................289
Settlement Position Detail/1644-688 Message........................................................... 292
Choosing Settlement Reconciliation Categories..................................................... 292
Global Clearing Management System Reconciliation Reports..................................... 293
IPM Clearing Reports—Clearing Cycle Acknowledgement and Clearing Cycle
Notification Reports.............................................................................................. 296
IPM Clearing Reports—Clearing Cycle Summary................................................... 296
Clearing Cycle Acknowledgement Report Samples........................................... 297
Clearing Cycle Notification Report Samples.......................................................312
Clearing Cycle Summary Reconciliation Report (IP728010-AA).............................. 317
IPM Messages Created On Behalf of a Member Report (IP142110-AA).................. 341
On-behalf Service Fee Collection Report (IP142520-AA)........................................ 350
Miscellaneous Override Financial Adjustments Report (IP148320-AA).................... 351
Acquirer-funded Reward Presentments Created On Behalf of a Member Report
(IP170010-AA)...................................................................................................... 357
Consolidated On-Request XML Data File Distribution........................................ 357

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Using Both IPM Messages and Reports to Collect Information....................................359

Accumulating Reconciliation Totals............................................................................ 360
IPM Early Reconciliation File Option........................................................................... 362

Chapter 16: Cross-Border Fee Manager Service....................................... 363

Cross-Border Fee Manager Service Overview.................................................................. 364
Cross-Border Fee Manager Service Enrollment................................................................ 365
Cross-Border Fee Manager Service Reports..................................................................... 366
Cross-Border Fee Manager Service Bulk Files...................................................................368

Chapter 17: Mastercard Cardless ATM Program.......................................369

Mastercard Cardless ATM Program Overview..................................................................370

Chapter 18: Mastercard ATM Cash Pick-Up Service................................ 371

Mastercard ATM Cash Pick-Up Service Overview.............................................................372

Chapter 19: Fee Collection.................................................................................. 373

Fee Collection Overview................................................................................................. 374
Fee Collection Messages for Retrieval Fee Billing.............................................................374
Fee Collection Messages for Purposes Other Than Retrieval Fee Billing............................374
Presenting the Fee Collection/1740 Message.................................................................. 375
Returning and Resubmitting the Fee Collection/1740 Message.......................................375
Reason Codes for Fee Collection.................................................................................... 377
Global Clearing Management System Minimal Rounding........................................... 377
Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782.....378
Fee Collection (Clearing System-generated)/1740–783.............................................. 396

Chapter 20: Reversals............................................................................................ 405

How to Create Reversals................................................................................................ 406
Identification of Reversal Messages............................................................................406
Identification of Reversal Files.................................................................................... 406
How to Send Reversal Messages................................................................................ 406
How to Send Reversal Files—Full Files........................................................................ 407
How to Send Reversal Files—Partial Files.................................................................... 408
Using Mastercard Software Utilities to Create Reversals..............................................409
Having Mastercard Reverse Files.................................................................................409
Editing Reversal Messages.............................................................................................. 410
Reporting Reversal Rejects..............................................................................................410
Duplicate Global Clearing Management System Postings................................................410
Global Clearing Management System Editing for Duplicate Files................................ 410

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Reasons for Duplicate Global Clearing Management System Files or Postings.............410

Identification of Duplicate Global Clearing Management System Postings.................. 411

Chapter 21: Collection-Only Transaction Reporting............................... 412

Collection-only Transactions........................................................................................... 413
Global Collection Only Data Collection Program............................................................. 413
Collection-only Transactions that are Not Permitted for Global Collection Only.......... 414
Reversing Collection-only Data.................................................................................. 414
Editing Collection-only Data...................................................................................... 414
Reporting GCO Data Collection Program Rejects........................................................414
Collection-only Activity in Relation to Reconciliation Messages...................................415
IPM First Presentment/1240—Global Collection Only Format.......................................... 415
IPM 1240 Global Collection Only Data Elements........................................................ 415
Global Collection Only Mapping for Single Message System Transactions....................... 419
Mapping 0200 to 1240............................................................................................. 419

Chapter 22: Bilateral Settlement Activity....................................................427

Definition of Bilateral Settlement Agreement..................................................................428
Identification of Bilateral Settlement Transactions.......................................................428
Editing Bilateral Transactions.......................................................................................... 428
Global Clearing Management System Calculations for Bilateral Settlement Transactions. 429
Bilateral Transactions in Relation to Reconciliation Messages...........................................430

Chapter 23: Electronic and Mobile Commerce.......................................... 431

Electronic Commerce..................................................................................................... 432
Process for an Electronic Commerce Transaction........................................................ 432
Security of Electronic Commerce Transactions............................................................ 433
Universal Cardholder Authentication Field..................................................................433
Relationship between e-Commerce and Mastercard SecureCode/Identity Check........ 434
UCAF in Digital Secure Remote Payments.................................................................. 434
Mastercard Mobile Remote Payment Program Overview................................................. 435
DE 22 (Point of Service Data Code), Subfield 1 (Terminal Data: Card Data Input
Capability)................................................................................................................. 436
DE 22 (Point of Service Data Code), Subfield 7 (Card Data: Input Mode).................... 436
PDS 0194 (Remote Payments Program Data)..............................................................436

Chapter 24: Merchant Data Cleansing Suite of Services......................437

About the Merchant Data Cleansing Suite of Services.....................................................438
Mastercard Merchant Data Cleansing........................................................................ 438
Mastercard Merchant Data Cleansing Plus................................................................. 438

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Mastercard Merchant Data Advance.......................................................................... 439

Mastercard Merchant Data Fields...............................................................................439
Enrichment of First and Second Presentment/1240 Messages for the Merchant Data
Cleansing Suite of Services............................................................................................. 440
Attributes and Subfields of Private Data Subelements of the Merchant Data Cleansing
Suite of Services............................................................................................................. 443

Chapter 25: Acquirer Interchange Reporting.............................................444

Interchange Detail Report (IP755020-AA)....................................................................... 445

Chapter 26: Acquirer Clearing Detail Reporting...................................... 452

Clearing Detail Report (IP755120-AA)............................................................................ 453

Chapter 27: Acquirer Currency Conversion Rate File Format............ 459

Acquirer Currency Conversion Rate File Format.............................................................. 460

Chapter 28: Originating Institution Payment Transaction

Currency Conversion Rate File Format..........................................................467
Originating Institution Payment Transaction Currency Conversion Rate File Format......... 468

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Global Clearing Management System Reference Manual • 15 October 2019 14
 Overview of Global Clearing Management System

Chapter 1 Overview of Global Clearing Management

System
This section provides the reader with a basic understanding of what Global Clearing Management
System is, what message types it uses, and what components compose it or interact with it.

Definition of Global Clearing Management System....................................................................... 16

Who Participates in Clearing?...................................................................................................16
Why Do Customers Perform Clearing?..................................................................................... 17
What is the Difference Between Clearing and Settlement?....................................................... 17
System Integration Diagram..................................................................................................... 18
Clearing Basics..............................................................................................................................18
Daily Clearing Cycle Schedule...................................................................................................18
Settlement Times......................................................................................................................20
Characteristics of the IPM Format............................................................................................. 20
Elements of Integrated Product Messages............................................................................ 20
Customer Currency Conversion for Chargebacks (All Cycles)................................................21
IPM Message Types.............................................................................................................. 21
Transferring Clearing Data........................................................................................................ 21
Processing Cycles of Clearing Transactions................................................................................22
Protection of Cardholder Confidential Information........................................................................ 24
Distributed IPM Software.............................................................................................................. 25
Customer Requirements and Responsibilities in Clearing Transactions............................................26
Acquirer Responsibilities in Clearing Transactions......................................................................26
Issuer Responsibilities in Clearing Transactions.......................................................................... 27
Global Clearing Management System Responsibilities in Clearing Transactions..........................27
Establishing Global Clearing Management System Services........................................................... 28
Documents Related to Global Clearing Management System........................................................ 28

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Global Clearing Management System Reference Manual • 15 October 2019 15
 Overview of Global Clearing Management System
Definition of Global Clearing Management System

Definition of Global Clearing Management System

The Global Clearing Management System is the system that manages the clearing processing
of credit transactions and debit transactions (in offline mode). Global Clearing Management
System is a centralized clearing facility owned and operated by Mastercard for the daily
processing and routing of worldwide financial transactions between Mastercard and its
customers.
Clearing is the movement of data from the customer to Mastercard and from Mastercard to
the customer.
Global Clearing Management System processes clearing transactions using the Integrated
Product Messages (IPM) format, and its following functions include:
• Editing transactions for adherence to Mastercard processing standards.
• Performing currency conversion, assessing interchange fees, and calculating settlement
values for each transaction.
• Providing currency conversion rates for customer use.
• Routing clearing transactions (messages) to the appropriate customer or vendor.
• Providing acknowledgement messages to advise the originator of the transaction that
Global Clearing Management System received the transaction.
• Providing notification messages to advise the receiver of the transaction that Global
Clearing Management System has processed clearing transactions for that receiver.
• Providing error messages and reports to advise the originator of an invalid transaction that
Global Clearing Management System rejected the transaction.
• Creating reconciliation reports.
• Providing summarized settlement request information to the Settlement Account
Management (S.A.M.) system.
• Providing clearing information to other Mastercard systems such as the MasterCom®
electronic imaging system, and the Mastercard Consolidated Billing System (MCBS), and
Data Warehouse.
• Providing optional on-behalf services for customers such as Account Level Management,
mapping services—for both Mastercard®contactless and Mastercard In Control™
Commercialization, Clearing Chip Processing service, and several Clearing on-behalf
reports.

Who Participates in Clearing?

Customers participate in clearing. A customer can be an issuer, an acquirer, or both.
The issuer is the customer that maintains the contractual relationship with the cardholder.
The acquirer is the customer that has the contractual relationship with card acceptors to
process payment account transactions and to reimburse the card acceptors for those
transactions.
Mastercard allows an acquirer and an issuer involved in a transaction to clear and settle the
transaction.

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Global Clearing Management System Reference Manual • 15 October 2019 16
 Overview of Global Clearing Management System
Why Do Customers Perform Clearing?

Why Do Customers Perform Clearing?

Customers perform clearing to exchange transaction data. From the data provided in clearing,
Global Clearing Management System derives the amounts for settlement.
Settlement provides acquirers with the funds to reimburse their card acceptors and collects
funds from issuers.
Customers also use clearing data for some of their back-office processes, including posting to
cardholder accounts.
Customers that issue Mastercard cards and customers contracting with card acceptors to
accept cards must perform clearing to exchange transaction data.

What is the Difference Between Clearing and Settlement?

There are distinct differences between the clearing and settlement processes.
Clearing is the process of exchanging clearing data. For example, clearing includes sending
transactions from the acquirer to the issuer for posting to the cardholder account (also called
presentment). Global Clearing Management System accepts the data, edits it, assesses the
appropriate fees, and routes it to the appropriate receiver. The clearing messages contain data
but do not actually exchange or transfer funds.
Settlement is the process by which funds are exchanged. The funds represent the net
equivalent of monetary value from clearing processing. These funds are exchanged each day
between customers for the net monetary value of the cleared transactions. Mastercard
calculates in reconciliation currency the net position of each customer involved in the clearing
process and performs the following two settlement functions:
• Sending advisements
• Transferring funds (when applicable)
Global Clearing Management System manages clearing. The Mastercard Settlement Account
Management (S.A.M.) system supports settlement. Global Clearing Management System
feeds clearing data to S.A.M.

NOTE: For more information about settlement, refer to the Settlement Manual.

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Global Clearing Management System Reference Manual • 15 October 2019 17
 Overview of Global Clearing Management System
System Integration Diagram

System Integration Diagram

The System Integration diagram shows the systems with which Global Clearing Management
System interacts.

System Integration Diagram

Clearing Basics
To understand clearing through Global Clearing Management System, customers should
understand clearing basics.
• When clearing can occur
• When settlement occurs
• The Integrated Product Messages (IPM) format (the clearing message format)
• Clearing message types
• Means of transferring clearing data
• Processing cycles

Daily Clearing Cycle Schedule

The sending customer can submit transaction data for clearing to the St. Louis Operations
Center (Central Site) seven days a week, 24 hours a day.
With the implementation of six clearing cycle cutoffs in Global Clearing Management System,
processing customers have the option to receive clearing files four, five, or six times per day.
Each customer must receive data from a minimum of four cycles per day. Options can vary for
each clearing endpoint. Mastercard has established the initial default delivery cycles for all
processing customers as cycles one, two, four, and six.

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 Overview of Global Clearing Management System
Daily Clearing Cycle Schedule

NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists exclusively
for Mexico domestic switching transactions.

These four cycles are also the default delivery cycles for all endpoints, unless otherwise
specified. Processing customers will automatically receive clearing files at these default times,
unless they contact Mastercard to request different times. Processing customers may request
any combination of daily cycles that include four, five, or six cycles per day, adhering to the
requirements listed above. Processing customers that want to change their clearing cycle
cutoff times should complete section 4 of the Global Clearing Management System Parameter
Worksheet (Form 600).
The following table shows the daily schedule for the six primary clearing cycles and the
seventh clearing cycle designated for Mexico domestic switching transactions.

Business
Day Clearing 1 Clearing 2 Clearing 3 Clearing 4 Clearing 5 Clearing 6
Sunday No No No No No No
processing processing processing processing processing processing

Monday Sunday, Sunday, Monday, Monday, Monday, Monday,

16:00 21:00 00:00 03:00 06:00 08:00

Tuesday Monday, Monday, Tuesday, Tuesday, Tuesday, Tuesday,

18:00 21:00 00:00 03:00 06:00 08:00

Wednesday Tuesday, Tuesday, Wednesday, Wednesday, Wednesday, Wednesday,

18:00 21:00 00:00 03:00 06:00 08:00

Thursday Wednesday, Wednesday, Thursday, Thursday, Thursday, Thursday,

18:00 21:00 00:00 03:00 06:00 08:00

Friday Thursday, Thursday, Friday, Friday, Friday, Friday,

18:00 21:00
00:00 03:00 06:00 08:00

Saturday Friday, Friday, Saturday, Saturday, Saturday, Saturday,

00:00 03:00 06:00 08:00
18:00 21:00

The following table shows the daily schedule for the seventh clearing cycle designated for
Mexico domestic switching transactions.

Business Day Clearing 7 (Mexico domestic switching transactions)

Sunday No processing

Monday Monday, 11:00

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 Overview of Global Clearing Management System
Settlement Times

Business Day Clearing 7 (Mexico domestic switching transactions)

Tuesday Tuesday, 11:00

Wednesday Wednesday, 11:00

Thursday Thursday, 11:00

Friday Friday, 11:00

Saturday Saturday, 11:00

Refer to the Clearing Processing Details chapter of the Global Clearing Management System
Reference Manual for clearing file delivery options.

Settlement Times
Mastercard settles with most customers Monday through Friday following the sixth clearing
cycle cutoff. However, for intracurrency settlement participants, the option to settle after any
clearing cycle is available.
Customers receive settlement advisements from the Mastercard Settlement Account
Management (S.A.M.) system.
The deadline for U.S. dollar funds transfer is 14:00 St. Louis, Missouri, U.S.A. time.
Transactions processed in the Saturday clearing cycles are included in the Monday net
settlement totals. Advisements that customers receive on Monday report both Saturday and
Monday settlement totals. Settlement can occur only after clearing has already occurred.

NOTE: For more information about settlement, refer to the Settlement Manual.

Characteristics of the IPM Format

Customers send clearing data to Global Clearing Management System using the Integrated
Product Messages (IPM) format, which is based on the ISO 8583-1993 format and has the
following characteristics.
• Variable-length: A particular element in the message or the entire message can have a
different length based on the data it contains.
• Variable-format: The location of a particular element within a message can vary between
messages, depending on the other elements that are present in each message.
• Bit map orientation: The bit map indicates whether data elements are present or absent
from the message.

Elements of Integrated Product Messages

Integrated Product Messages (IPMs) contain four types of message elements.
• Message Type Identifier (MTI): Identifies the purpose of the message, such as Financial,
Administrative, or Fee Billing.

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 Overview of Global Clearing Management System
Customer Currency Conversion for Chargebacks (All Cycles)

• Two bit-maps: A series of binary digits (bits) that indicate the presence or absence of data
elements.
• Data elements: Message elements, defined within the ISO 8583-1993 specification that
may contain data.
• Private data subelements: Message elements that Mastercard defined to support data not
defined within the ISO 8583-1993 specification.

Customer Currency Conversion for Chargebacks (All Cycles)

Customers must meet specific requirements for submission of chargeback amounts (including
currency conversion of chargeback amounts) depending on the phase of the chargeback life
cycle.

IPM Message Types

The IPM message uses a combination of two elements to define the message type.
Message Type Identifier (MTI) + Data Element (DE) 24 (Function Code)
The MTI identifies the general ISO message type. Valid MTIs include the following.

MTI Description
1240 Presentment

1442 Chargeback

1644 Administrative

1740 Fee Collection

The Function Code more specifically defines the message’s purpose.

For example, the combination of an MTI value of 1644 plus a DE 24 (Function Code) value of
697 indicates a file header.
Mastercard documentation refers to IPM message types by stating the MTI value and then the
function code value, separated by a hyphen, as follows: File Header/1644-697.

NOTE: For more information about the construction of the IPM message, refer to the IPM
Clearing Formats manual and the Clearing Processing Details chapter of the Global Clearing
Management System Reference Manual.

Transferring Clearing Data

Customers can choose from multiple methods of transmitting data:
• Mastercard interface processor (MIP): A mid-range central processing unit (CPU) that
accesses the customer gateway to the Mastercard Network. The sending customer captures
data and transmits it to Global Clearing Management System at Central Site.

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 Overview of Global Clearing Management System
Processing Cycles of Clearing Transactions

• Mastercard File Express: Transfer through dial-up access between remote personal
computers and a Central Site–based mainframe using modems and communications
software developed and licensed by Mastercard. The Mastercard File Express Client Users’
Guide contains more information about this transmission method.
• CONNECT:Direct: Mastercard mainframe to customer mainframe using dedicated network
communication facilities. This facility supports all bulk data types.

Processing Cycles of Clearing Transactions

There are five processing cycles through which a clearing transaction may travel. Customers
can submit clearing transactions from any of these processing cycles in one file.
1. First Presentment
The acquirer presents transaction data to the issuer.
The following diagram illustrates the movement of data in processing a first presentment .

2. Retrieval Requests and Fulfillments

An issuer can request the transaction slip from the acquirer if there is any question about
the transaction that the original document or facsimile may resolve.
To complete this cycle, the acquirer either fulfills the issuer’s request or sends a message
documenting the inability to honor the request. Mastercard encourages the use of the
MasterCom® electronic imaging system to deliver transaction slips and other information
concerning the request.
3. Chargeback
After the initial presentment of the cardholder transaction from the acquirer to the issuer,
the issuer may determine that, for a given reason, the transaction may not be valid. The
issuer may return the transaction to the acquirer as a chargeback.
The issuer can submit a chargeback if the issuer or the cardholder disputes the first
presentment. The chargeback must be processed within the designated time frames after
receiving the first presentment (These time frames vary according to the chargeback
reason). This returns the transaction to the acquirer for possible remedy.
4. Second Presentment

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 Overview of Global Clearing Management System
Processing Cycles of Clearing Transactions

The acquirer may return the transaction with additional information as a second
presentment. The acquirer may return the second presentment to correct the original
defect or to indicate a disagreement with the issuer’s chargeback.
5. Arbitration Chargeback
If the issuer continues to dispute the item, it returns the transaction to the acquirer for the
second time as an arbitration chargeback. This cycle is not supported for ATM, Maestro, or
Cirrus transactions.

Arbitration
The final phase in the chargeback process is arbitration. A customer may petition Mastercard
to determine responsibility for a transaction after unsuccessful dispute resolution through the
chargeback process outlined above.

Compliance
The customers request that Mastercard resolve a rules violation or a dispute between the
customers when no remedy exists through the chargeback life cycle.

Diagram of the Transaction Processing Cycles

The following diagram shows the relationships of customers during the first three cycles of
transaction processing.

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 Overview of Global Clearing Management System
Protection of Cardholder Confidential Information

Protection of Cardholder Confidential Information

Customers are required to protect all data files of and storage methods for cardholder
confidential information that is in electronic form and while the information is in storage per
the Payment Card Industry Data Security Standard (PCI DSS).
This protection should be performed by encryption or other appropriate compensating
controls. In addition, this information must be placed in secure areas with adequate controls
(which may include encryption or other appropriate compensating controls) to prevent
unauthorized access. Customers will dispose of confidential information in accordance with
customer policies, to avoid exposing or compromising cardholder confidential information.
Acquirers and issuers that use either the Clearing Optimizer—Mainframe or Clearing
Optimizer—Workstation Plus applications must ensure that data files of and the storage
methods used for cardholder confidential information are protected from unauthorized access
using PCI DSS.

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 Overview of Global Clearing Management System
Distributed IPM Software

Distributed IPM Software

Mastercard has developed the Clearing Optimizer software package to help customers to
interact with IPM formatted messages.
The software performs the following functions:
• Emulates many of the editing functions performed by Global Clearing Management System
at Central Site.
• Helps the customer to manipulate IPM messages.
• Parses or rebuilds IPM messages for use by other software tools.
• Provides a file of customer parameters for use in populating IPM messages.
Customers that choose to use this software install it at their sites on their own hardware.

NOTE: For more information about the distributed software, refer to either the Clearing
Optimizer—Mainframe manual or the Clearing Optimizer—Workstation Plus manual.

In addition to the distributed software described above, Mastercard will deliver Member Host
Preparation Facility (MHPF) communication software upon request. The purpose of the
software is to assist in the management of data transfers through a Mastercard Interface
Processor (MIP). The MHPF communication software performs the following functions:
• Transmits files through the TCP/IP transmission protocol.
• Provides modules to perform some very basic file structure edits on non-clearing files.
• Provides MIP Bulk File Advisement software to perform queries and reporting of bulk files
received and available for unloading from their MIP.

Bulk File Advisement Module (module not specific to clearing format files)

Module Description
MH410010 MIP Bulk File Advisement

NOTE: For more information about the MHPF software, refer to the File Transfer Manual and
the Data Communications Manual.

NOTE: Mastercard will deliver modules MH590010 and MH700010 solely to support the
existing compile and link edit processes for the driver routines that contain them. Customers
no longer will run the modules themselves.

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Global Clearing Management System Reference Manual • 15 October 2019 25
 Overview of Global Clearing Management System
Customer Requirements and Responsibilities in Clearing Transactions

Customer Requirements and Responsibilities in Clearing Transactions

All customers have certain rights and obligations in the processing and settlement of clearing
transactions and must accept such items received in clearing as specified in this manual.
All customers must present (submit) and accept specific messages electronically through
Global Clearing Management System. Chapter 2 of this manual and the IPM Clearing Formats
manual define the specific messages that customers are required to use for the clearing of
data.
An issuer receiving a presented transaction that is incomplete, invalid, or otherwise not in
conformance with the provisions of this manual or the IPM Clearing Formats manual has
specific rights to return the transaction to the acquirer (chargeback). The acquirer has specific
rights to present the transaction again to the issuer so that the acquirer can remedy the
transaction (second presentment). In turn, the issuer may originate another chargeback (an
arbitration chargeback) if the acquirer incorrectly presented it a second time.
All customers are responsible for sending, receiving, and balancing Global Clearing
Management System messages.
All customers should balance the daily net settlement advisement to their IPM reconciliation
messages, Global Clearing Management System reconciliation reports, or both.

NOTE: The daily net settlement advisement is the definitive authority about funds movement.
Differences between the Global Clearing Management System reconciliation messages and
reports and the settlement advisement may occur from time to time because of risk
management edits present in the settlement system.

NOTE: For more information about net settlement procedures, refer to the Settlement
Manual.

Acquirer Responsibilities in Clearing Transactions

There are a number of tasks for which acquirers are responsible during the processing and
settlement of clearing transactions.
Acquirers must perform the following:
• Ensure that presented data is accurate, complete, and in compliance with the Mastercard
rules. Further, acquirers are responsible for editing and monitoring all messages sent and
received.
• Edit and balance the prepared data before submission to Central Site through MIP,
Mastercard File Express, or CONNECT:Direct. Make any necessary corrections to the input
of data based on the edits, using the Clearing Optimizer software (if supported).
Customers using the Clearing Optimizer software must always work with the most current
version.
• Transmit the prepared data to Global Clearing Management System to await processing by
Central Site.
• Keep a transmission log or listing of each file sent to Global Clearing Management System.

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Global Clearing Management System Reference Manual • 15 October 2019 26
 Overview of Global Clearing Management System
Issuer Responsibilities in Clearing Transactions

• Verify the incoming acknowledgement messages from Global Clearing Management

System against outgoing file data, and resubmit any rejected items or files based on the
rejected messages that Global Clearing Management System returns.
• Receive all first chargeback and arbitration chargeback messages submitted by issuers. In
accordance with the Mastercard rules and procedures outlined in the Chargeback Guide,
the acquirer may either accept responsibility for the transactions or:
– Second present the transactions on receipt of a first chargeback, or
– File for arbitration on receipt of an arbitration chargeback
• Capture and process incoming retrieval requests.
• Initiate fee collection messages in accordance with the format and details defined in IPM
Clearing Formats.
• Edit and reconcile messages sent and received by balancing the IPM acknowledgement and
notification reconciliation messages or reports to their internal system reports of outgoing
and incoming data. Acquirers must ensure that they have reconciled all rejected and
accepted messages.

Issuer Responsibilities in Clearing Transactions

There are a number of tasks for which issuers are responsible during the processing and
settlement of clearing transactions.
Issuers must perform the following:
• Receive all financial records as presented by the acquirer and ensure that all data necessary
to identify the transaction is provided to the cardholder or is readily accessible for
transaction research and monitoring purposes.
• Reconcile net settlement figures.
• Initiate retrieval, chargeback, and fee collection messages in accordance with:
– The formats and details defined in IPM Clearing Formats.
– Mastercard chargeback rules and procedures outlined in the Chargeback Guide.
• Edit and reconcile retrieval, chargeback, and fee collection messages to ensure that the
issuer sends complete and accurate detail in compliance with Mastercard operating
standards. To reconcile messages sent, issuers must balance the IPM acknowledgement
reconciliation messages to their internal system reports of outgoing data sent to
Mastercard.
• Edit and reconcile messages received by balancing the IPM notification reconciliation
messages or reports to the issuer’s internal system reports of incoming data sent from
Mastercard.
• Capture and process retrieval request fulfillments when received.

Global Clearing Management System Responsibilities in Clearing Transactions

The Global Clearing Management System serves a variety of functions.
Global Clearing Management System performs the following:
• Edits, balances, and distributes clearing data received from each customer.

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 Overview of Global Clearing Management System
Establishing Global Clearing Management System Services

• Determines the net amount for each customer’s daily incoming and outgoing work. Global
Clearing Management System produces a net settlement figure in reconciliation currency
that it sends to the Mastercard Settlement Account Management (S.A.M.) system.
• Verifies and adjusts fee calculations when necessary.
• Rejects individual messages or entire files and then notifies the sending customer of the
rejection.
• Updates accepted file information for each customer sending files.
• Produces and sends clearing files to participating customers.
• Provides currency conversion rates to customers at their option.

Establishing Global Clearing Management System Services

Customers must provide Mastercard with various information.
• Current processing procedures
• Testing preferences
• Contacts
• Requested Global Clearing Management System clearing options
Customers provide this data to Mastercard through the Global Clearing Management System
Parameter Worksheet (Form 600).

NOTE: For a sample of the worksheet, refer to the Global Clearing Management System
Parameter Worksheet (Form 600).

Documents Related to Global Clearing Management System

These documents and resources provide information related to the subjects discussed in the
Global Clearing Management System Reference Manual.
• Authorization and clearing release documents
• Authorization Manual
• Chargeback Guide
• Customer Interface Specification
• Data Communications Manual
• File Transfer Manual
• Global Clearing Management System Parameter Table Layouts
• Interchange Manual
• IPM Clearing Format Error Numbers and Messages
• IPM Clearing Formats
• Clearing Optimizer—Mainframe
• Clearing Optimizer—Workstation Plus
• Mastercard Clearing Presentment Simulator Guide

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 Overview of Global Clearing Management System
Documents Related to Global Clearing Management System

• Mastercard Rules
• Quick Reference Booklet
• Security Rules and Procedures
• Transaction Processing Rules

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Global Clearing Management System Reference Manual • 15 October 2019 29
 Clearing Processing Details

Chapter 2 Clearing Processing Details

This section presents details about the functionality and support that Global Clearing Management
System provides. It addresses how to send and receive messages and how the system edits certain
transactions.

Creating IPM Messages.................................................................................................................32

IPM Message Construction Requirements................................................................................. 32
IPM Structure........................................................................................................................... 33
Supported and Unsupported Data Elements of IPM Format Messages.......................................33
Handling of Unsupported Elements......................................................................................33
Handling of Supported Elements..........................................................................................34
Customer-to-Customer Proprietary Data in the IPM Format...................................................... 35
Customer-Generated Files in the IPM Format............................................................................ 36
Sequence of the Customer-Generated IPM File.................................................................... 37
Files Generated by Mastercard..................................................................................................38
Customer Clearing File Delivery Options...............................................................................38
Clearing File Delivery Options...............................................................................................40
Global Clearing Management System Sequence of the File Generated by Mastercard.......... 43
Merging of Clearing Information Between Cycles................................................................ 46
Delivery of Administrative Messages Following Clearing Cycles............................................ 47
Sequence of the Early Reconciliation File.............................................................................. 48
Administrative, IPM Text Messages Used by Global Clearing Management System............... 50
Broadcast Text Messages Used by Global Clearing Management System.............................. 51
No Data Text Messages Used by Global Clearing Management System.................................51
Processing and Delivery of Clearing Files....................................................................................... 52
Clearing Times......................................................................................................................... 52
Methods of Transmitting Data to Global Clearing Management System....................................53
Bulk IDs for Clearing Data........................................................................................................ 53
Bulk IDs for the MPE.................................................................................................................54
Record Descriptor Word at the Beginning of IPM Messages...................................................... 56
Clearing Optimizer Software, Workstation Plus Version........................................................ 56
MHPF MIP Load and Unload Modules.................................................................................. 56
CONNECT:Direct.................................................................................................................. 56
Mastercard Network through a MIP..................................................................................... 56
Processing Cards That have Converted from Cirrus to the Visa/PLUS ATM Network...................57
Automated Fuel Dispenser Processing.......................................................................................58
Guiding Principles................................................................................................................ 58

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 Clearing Processing Details

Multi-Clearing Presentments for Authorization Transactions..................................................... 59

Confirmation of Successful Receipt and Processing of Global Clearing Management System
Transmission Files.......................................................................................................................... 60
Penalty for Late Global Clearing Management System Retransmission Request......................... 60
Global Clearing Management System Rejection of Messages........................................................ 60
Full IPM File Rejection by Global Clearing Management System................................................ 61
Full Clearing File Rejections Delivered with Early Reconciliation.............................................62
Single Message Rejection......................................................................................................... 63
Single Message Rejections Delivered with Early Reconciliation.............................................. 64
Reconciling Single Message Rejections................................................................................. 65
Messages Supported by Mastercard for Mexico Domestic Transactions..................................... 65
Syntax Errors for Mexico Domestic Transactions................................................................... 65
Syntax Error Returns for Mexico Domestic Transactions........................................................ 66
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input
Sequence Report...................................................................................................................... 66

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Global Clearing Management System Reference Manual • 15 October 2019 31
 Clearing Processing Details
Creating IPM Messages

Creating IPM Messages

The Global Clearing Management System processes the Integrated Product Messages (IPM)
format. IPM messages contain various data elements.

Element
Element Number Description
Message Type Identifier (MTI) ---- Describes the message class.

Primary Bit Map ---- A series of binary digits (bits) that indicate the
presence or absence of DE 1–DE 64.

Secondary Bit Map DE 1 A series of binary digits (bits) that indicate the
presence or absence of DE 65–DE 128.

Function Code DE 24 A three-position data element indicating the specific

purpose of a message within the message class. The
function code provides additional information about
the MTI or message class (such as first presentment,
second presentment partial, or first chargeback full).

Message Reason Code DE 25 A four-position data element indicating the reason

for sending the message. Most, but not all, IPM
messages require the message reason code.

Message Number DE 71 An eight-position data element that monitors the

integrity and continuity of the files being exchanged.

The IPM Clearing Formats manual documents the specifications for each data element and
private data subelement.

IPM Message Construction Requirements

Users must meet various requirements when constructing Integrated Product Messages (IPM)
messages.
• The file header and file trailer for each logical file must contain the same value in PDS 0105
(File ID).
• Every message must contain the message type identifier (MTI) in positions 1–4, followed by
both bit maps in positions 5–20, followed by the International Organization for
Standardization (ISO)-defined data elements (DE 1–DE 128) in ascending sequence.
• DE 24 (Function Code) and DE 71 (Message Number) must be present in every IPM
message.
• DE 71 must always contain 00000001 in the file header. For each subsequent message in
the logical file, the value in DE 71 must be greater than the value in the previous message
(The only exception to this occurs when Global Clearing Management System rejects a

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Global Clearing Management System Reference Manual • 15 October 2019 32
 Clearing Processing Details
IPM Structure

message, in which case Global Clearing Management System returns the message to the
customer with the original DE 71 value).

NOTE: Customers must not populate an element with all high values, such as hexadecimal FF,
or all low values, such as hexadecimal 00, within clearing messages. Global Clearing
Management System edits for all low and high values and will reject messages that contain
them.

IPM Structure
The structure of an IPM message has several identifying components.

Supported and Unsupported Data Elements of IPM Format Messages

Within the IPM ISO 8583-1993 format, there are data elements supported by Mastercard and
data elements not supported by Mastercard. There are also data elements that Mastercard
may support for future use.
Customers should refer to the IPM Clearing Formats manual for a description of the supported
data elements and private data subelements that customers may submit in IPM format
messages.
Mastercard does not reject customer-generated messages for including extraneous data or
unsupported elements. Global Clearing Management System simply drops the undefined
elements before sending such messages to the receiving customer. This protects the data
integrity and validity of files generated by Mastercard.
Customers managing their inbound clearing files should know that Mastercard limits the data
sent to customers to the data elements and private data subelements defined for use in the
IPM Clearing Formats manual.

Handling of Unsupported Elements

A message containing unsupported data elements or private data subelements results may not
be accepted by Global Clearing Management System.
Global Clearing Management System does not edit and does not include, in any accepted
message to the transaction destination, unsupported data elements or private data

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Global Clearing Management System Reference Manual • 15 October 2019 33
 Clearing Processing Details
Handling of Supported Elements

subelements, nor any data elements not supported for specific message type identifier (MTI)
and DE 24 (Function Code) combinations. This includes elements and subelements that
Mastercard will support in the future.
For example, the IPM Clearing Formats manual defines DE 17 (Capture Date) as an element
that Mastercard does not currently support and does not plan to support in the future. Global
Clearing Management System does not edit DE 17 or include it in any accepted message to
the transaction destination.
In addition to the above examples, some data elements are not valid for specific MTI and DE
24 combinations. For example, DE 55 (Integrated Circuit Card System Related Data) is a valid
data element for first presentment, second presentment, first chargeback, and arbitration
chargeback messages. However, it is not a valid data element for financial detail addendum
messages. Therefore, Global Clearing Management System would not forward it to the
transaction destination if it were included in a financial detail addendum message by the
sender of the message.
Mastercard follows the IPM Clearing Formats manual data element and private data
subelement specifications.
As shown in the following figure, Global Clearing Management System drops an unsupported
data element or private data subelement if Global Clearing Management System accepts the
message. An accepted message is one that Global Clearing Management System processes
because it does not fail format, syntax, content, or context edits.

Global Clearing Management System Handling of an Unsupported Element

Handling of Supported Elements

Global Clearing Management System accepts a message if it contains supported elements.
Global Clearing Management System includes a supported data element or private data
subelement if Global Clearing Management System accepts the message. For example,
Mastercard considers PDS 1000–1099, which contain customer-to-customer proprietary data,
to be supported elements. Global Clearing Management System always forwards proprietary
elements to the destination for accepted messages, and always returns them to the sender for
rejected messages. As shown in the following figure, Global Clearing Management System
forwards DE 38 (Approval Code) if the First Presentment/1240-200 is accepted.

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Global Clearing Management System Reference Manual • 15 October 2019 34
 Clearing Processing Details
Customer-to-Customer Proprietary Data in the IPM Format

Global Clearing Management System Handling of a Supported Element

Global Clearing Management System accepts a particular data element or private data
subelement if the element is all of the following:
• Parseable
• Identified as a recognized element for the transaction function (message type identifier
(MTI) and DE 24 [Function Code]), regardless of whether the field is mandatory, optional,
or conditional
• Valid
Valid means that the data element or private data subelement passes any format, syntax,
content, or context edits applied during the edit process. For example, a private data
subelement that the IPM Clearing Formats manual defines as containing only numeric digits
must contain only numeric digits to be considered valid. Chapters 7, 8, 9, and 10 of the IPM
Clearing Formats manual document the specifications for each data element and private data
subelement.
For example, within a first presentment, the IPM Clearing Formats manual defines:
• PDS 0165 (Settlement Indicator) as a mandatory field for a first presentment.
• PDS 0171 (Alternate Card Acceptor Description Data) as optional (that is, the transaction
originator may or may not include it) in a first presentment.

IF the transaction originator THEN Global Clearing

includes… AND… Management System will…
Both fields described above Both are valid Forward the fields to the
transaction destination.

Both fields described above Any field is invalid Reject the message and return
both fields.

Customer-to-Customer Proprietary Data in the IPM Format

Mastercard has allocated 100 private data subelement within the range of 1000 through
1099 for customer proprietary use. This enables customers to exchange customer-defined
proprietary data with other customers who process in the Integrated Product Message (IPM)
format.
Customers can use these private data subelements to exchange information that the IPM
format does not define and capture in other elements. Customers can present up to 999 bytes

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Global Clearing Management System Reference Manual • 15 October 2019 35
 Clearing Processing Details
Customer-Generated Files in the IPM Format

of non-binary data (including tags, lengths, and data for all PDS in the 1000–1099 range)
within a single IPM message.
To accommodate varying global business requirements, customers have two options for
presenting their data:
• Customers who want to use their own parsing routines to parse the proprietary data may
provide one string of up to 992 characters of data within a single private data subelement
in the 1000–1099 range. With this option, customers would provide a single private data
subelement tag (ID) and one length definition, followed by the desired data string. Global
Clearing Management System will leave this customer data intact.
• Customers who would like Mastercard to parse the proprietary data may use up to 100
individual private data subelement in the 1000–1099 range to define their data. With this
option, customers must use the normal tag-length-data private data subelement encoding
structure to define as many private data subelements as they choose to use. Customers
may provide up to 999 positions total (including tags, lengths, and data for all private data
subelements within the range) per message.
Customers may present proprietary data in private data subelements 1000–1099 in any of the
IPM message types for which the customer is the originator. They may include the customer-
to-customer proprietary private data subelements in any of the Additional Data DEs (DE 48,
DE 62, DE 123, DE 124, and DE 125), which are the carrier data elements for private data
subelements. Customers also should be prepared to receive private data subelements 1000–
1099 in any of the carrier data elements.
The contents of PDSs 1000–1099 must be in display format. The Global Clearing
Management System does not accommodate binary data in the private data subelements
dedicated for customer-to-customer proprietary data.
Customers must treat the data in the Customer-to-Customer Proprietary private data
subelements as confidential. Customers may disregard unsolicited Customer-to-Customer
Proprietary private data subelement data, and may discard it, provided this is done in a
manner, which preserves the confidentiality of the data.

Customer-Generated Files in the IPM Format

The Integrated Product Message (IPM) format provides a flexible structure for customer-
generated logical and physical files.
Logical File
logical file is an offline file that contains a single file header, followed by various IPM clearing
messages, followed by a single file trailer.
Physical File
A physical file is an offline transmission that is a single dataset or bulk file and that contains
one or more logical files. There is no transmission header or transmission trailer to enclose an
offline transmission.
A GCMS limitation requires that the number of logical files within a physical file must not
exceed 20,000. If the allowed limit is exceeded, then customers will be impacted by

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 Clearing Processing Details
Sequence of the Customer-Generated IPM File

Mastercard actions to split the logical files between multiple physical files, not receiving
reconciliation as expected, and could miss the preferred settlement cycle.
Offline
As used above, offline refers to an operating mode in which current active files are not being
viewed during the time the transaction is conducted.
Global Clearing Management System processes each logical file within a physical file
independently. The transmission originator determines whether to submit a single logical file
or multiple logical files within a physical file.
Logical Files within a Physical File

There are no requirements related to the grouping of IPM messages into logical files. For
example, one transmission originator may choose to create a separate logical file for each
ending customer ID. Another transmission originator may choose to create one logical file for
chargebacks and retrievals and another for presentments.

Sequence of the Customer-Generated IPM File

Customers must adhere to certain rules when constructing IPM files.
There are relatively few sequencing rules for customer-generated logical files. The customer
may construct its IPM outbound logical file using any message sequence, with the following
exceptions:
• A file must begin with a file header message and end with a file trailer message.
• The file ID in the header must match the file ID in the trailer.
• DE 71 (Message Number) in the file header message always must contain 00000001.
Subsequent DE 71 values must be incremented, so that each succeeding DE 71 value is
greater than the previous.
• Financial detail addendum messages must immediately follow the associated first
presentment messages.
IPM files may contain data from multiple customer IDs and may mix Global Collection Only
data with other clearing data.
For example, customer 004444 processes clearing data for customer IDs 002222 and 003333.

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 Clearing Processing Details
Files Generated by Mastercard

The following table specifies the contents of a possible clearing file that customer 004444 could send.

MTI-Function Code Description Endpoint, From:

1644-697 File Header 004444

1644-603 Retrieval Request 002222

1240-205 Second Presentment (Full) 003333

1240-200 First Presentment—Non-Global Collection Only 002222

1644-696 Financial Detail Addendum 002222

1740-700 Fee Collection 003333

1240-200 First Presentment—Global Collection Only 002222

1240-282 Second Presentment (Partial) 002222

1240-200 First Presentment—Global Collection Only 003333

1442-450 First Chargeback (Full) 003333

1442-451 Arbitration Chargeback (Full) 003333

1240-200 First Presentment 003333

1644-695 File Trailer 004444

Files Generated by Mastercard

Files generated by Mastercard (incoming to customers) have unique options, requirements,
and structure.

Customer Clearing File Delivery Options

Customers have multiple options from which they may choose to receive clearing files.
Customers have the option to receive clearing files four, five, or six times per day. Each
customer must receive data from a minimum of four cycles per day. In addition to the six
primary clearing cycles, a seventh clearing cycle exists exclusively for Mexico domestic
switching transactions. If a customer participates in the seventh cycle for the Mexico domestic
service, they must receive clearing files in the seventh clearing. All customers will continue to
receive the outbound from the sixth clearing including customers under the Mexico domestic
processing.
Clearing cycle options can vary for each clearing endpoint. The following table includes
additional requirements for the six clearing cycle cutoff option.
Additional Requirements for Seven Clearing Cycle Cutoff

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 Clearing Processing Details
Customer Clearing File Delivery Options

Location Requirements
U.S. region and Canada region • Must receive a clearing file after cycle 1.
customers • Must receive a clearing file after cycle 6.
• Must choose to receive clearing files after two or more of
the following cycles: cycle 2, cycle 3, cycle 4, or cycle 5.

Customers outside the U.S. and Canada • Must receive a clearing file after cycle 6.
regions • Must choose to receive clearing files after three or more
of the following cycles: cycle 1, cycle 2, cycle 3, cycle 4,
or cycle 5.

Customers processing Mexico Domestic • Must receive a clearing file after cycle 6.
transactions and participating in the • Must choose to receive clearing files after three or more
seventh clearing of the following cycles: cycle 1, cycle 2, cycle 3, cycle 4,
or cycle 5.
• Must receive a clearing file after cycle 7.

Mastercard has established the initial default delivery cycles for all processor customers as
cycles one, two, four, and six. These four cycles are also the default delivery cycles for all
endpoints unless otherwise specified.
Default Delivery Cycles

Cutoff Time (St. Louis

Cycle Number Time) File Delivery Default Cycle
1 18:00 Yes
2 21:00 Yes
3 00:00 No
4 03:00 Yes
5 06:00 No
6 (Final) 08:00 Yes
7 (Mexico domestic switching 11:00 Yes
transactions)

Customers automatically receive clearing files at these default times, unless they contact
Mastercard to request different times. Customersmay request any combination of daily cycles
that include four, five, or six cycles per day, adhering to the requirements listed above.

1 Cutoff time for Sunday is 16:00.

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 Clearing Processing Details
Clearing File Delivery Options

NOTE: The outbound delivery of the files of cycles one and two is extended by 1–3 hours on
release implementation dates only. The files from cycles three through six will be delivered at
the usual times. Release implementation dates occur four times a year and occur on a Friday
of the release implementation month. Although the files of cycles one and two are delivered
on a different calendar day from cycles three through six, Mastercard considers the delivery
of all six cycles of files to occur in one processing day.

The following table provides examples of the relationship between clearing cycle cutoff and
the receipt of clearing data.

AND the delivery cycles THEN the customer will

IF the customer location is… selected are… receive clearing data after…
U.S. or Canada regions Default cycles Cycles 1, 2, 4, and 6
U.S. or Canada regions From the available optional Any combination of four or more
cycles clearing cycles that include cycle
1 and cycle 6
Outside the U.S. and Canada Default cycles Cycles 1, 2, 4, and 6
regions
Outside the U.S. and Canada From the available optional Any combination of four or more
region cycles clearing cycles that include cycle
6

Customers that want to change their clearing cycle cutoff times should complete section 2 of
the Global Clearing Management System Parameter Worksheet (Form 600).

Clearing File Delivery Options

Customers have multiple options to choose from when receiving clearing data from Global
Clearing Management System.
Global Clearing Management System provides several options for organizing into separate
files incoming clearing data generated by Mastercard. Global Clearing Management System
will assign different endpoints to different categories of data. An endpoint is a numeric,
seven-digit identifier that is linked to a physical file delivery location defined to Mastercard.
Global Clearing Management System delivers one file to each endpoint after each clearing
cycle in which a customer chooses to receive data.
Following are the file delivery options:
Option 1: Customer ID
With this option, customers can specify different endpoints according to customer ID. The
following table is an example.

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Global Clearing Management System Reference Manual • 15 October 2019 40
 Clearing Processing Details
Clearing File Delivery Options

Customer ID Endpoint
001234 0000001

005678 0000002

002222 0000001

In this example, Global Clearing Management System will create one file for endpoint
0000001 and one file for endpoint 0000002 after each specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain transactions destined for customer IDs
001234 and 002222. The file created for endpoint 0000002 will contain transactions destined
for customer ID 005678.
A processor might choose to use this arrangement to group its customers into different files.
Option 2: Acquirer BIN
With this option, a customer can specify different endpoints according to acquirer bank
identification number (BIN). The following table is an example.

Acquirer BIN Endpoint

541234 0000001

543333 0000002

In this example, Global Clearing Management System will create one file for endpoint
0000001 and one file for endpoint 0000002 after each specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain transactions destined for acquirer BIN
541234. The file created for endpoint 0000002 will contain transactions destined for acquirer
BIN 543333.
Option 3: Acquirer BIN plus Card Program Identifier
With this option, a customer can specify different endpoints according to the combination of
acquirer BIN plus card program identifier. The following table is an example.

Acquirer BIN Card Program Identifier Endpoint

544444 Maestro (MSI) 0000001

544444 Mastercard (MCC) 0000002

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 Clearing Processing Details
Clearing File Delivery Options

In this example, Global Clearing Management System will create one file for endpoint
0000001 and one file for endpoint 0000002 after each specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain Maestro transactions destined for acquirer
BIN 544444. The file created for endpoint 0000002 will contain Mastercard transactions
destined for acquirer BIN 544444.
An acquirer might choose to use this arrangement to separate debit and credit activity.
Option 4: Issuer Account Range
With this option, a customer can specify different endpoints according to issuer account
range. The following table is an example.

Issuer Account Range Endpoint

541111 0000001

542222 0000002

In this example, Global Clearing Management System will create one file for endpoint
0000001 and one file for endpoint 0000002 after each specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain transactions destined for issuer account
range 541111. The file created for endpoint 0000002 will contain Mastercard transactions
destined for issuer account range 542222.
An issuer might choose to use this arrangement to separate consumer and corporate activity,
by assigning consumer account ranges to one endpoint and corporate account ranges to
another endpoint.
An issuer might also choose to use this arrangement to separate debit and credit activity, by
assigning one endpoint to Maestro or Cirrus account ranges and another endpoint to
Mastercard account ranges.
Option 5: Issuer Account Range plus Card Program Identifier
With this option, a customer can specify different endpoints based on the combination of
issuer account range plus card program identifier. The following table is an example.

Issuer Account Range Card Program Identifier Endpoint

545555 Cirrus (CIR) 0000001

545555 Mastercard (MCC) 0000002

In this example, Global Clearing Management System will create one file for endpoint
0000001 and one file for endpoint 0000002 after each specified clearing cycle cutoff.

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 Clearing Processing Details
Global Clearing Management System Sequence of the File Generated by Mastercard

The file created for endpoint 0000001 will contain Cirrus transactions destined for issuer
account range 545555. The file created for endpoint 0000002 will contain Mastercard
transactions destined for issuer account range 545555.
An issuer might choose to use this arrangement to separate Cirrus and Mastercard activity for
each account range.
Option 6: Issuer Account Range plus Card Program Identifier plus ATM versus POS
With this option, a customer can specify different endpoints according to the combination of
issuer account range, card program identifier, and whether the transaction is an ATM
transaction. The following table is an example.

Card Program
Issuer Account Range Identifier ATM/POS Endpoint
545555 Cirrus (CIR) ATM 0000001

545555 Mastercard (MCC) Not specified 0000002

547777 Maestro (MSI) ATM 0000001

547777 Maestro (MSI) POS 0000003

In this example, Global Clearing Management System will create one file for endpoint
0000001, one file for endpoint 0000002, and one file for endpoint 0000003 after each
specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain Maestro and Cirrus ATM transactions
destined for issuer account ranges 545555 and 547777. The file created for endpoint
0000002 will contain all Mastercard transactions destined for issuer account range 545555.
The file created for endpoint 0000003 will contain Maestro point-of-sale (POS) transactions
destined for issuer account range 547777.
An issuer could use this option to simulate the processing class concept by assigning one
endpoint to Maestro and Cirrus ATM transactions, one endpoint to Maestro POS transactions,
and one endpoint to Mastercard transactions, for each issuing account range.

Global Clearing Management System Sequence of the File Generated by Mastercard

Within a given Mastercard destination (a combination of endpoint and DE 93 [Destination
ID]), Global Clearing Management System sequences files generated by Mastercard as shown
in the Sequence of Files Generated by Mastercard table.

IPM MTI-Function Code

IPM Inbound Message Type Combination
1. File Header 1644-697

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Global Clearing Management System Reference Manual • 15 October 2019 43
 Clearing Processing Details
Global Clearing Management System Sequence of the File Generated by Mastercard

IPM MTI-Function Code

IPM Inbound Message Type Combination
2. Text Messages 1644-693

3. Currency Updates 1644-640

4. First Presentments 1240-200

5. Financial Detail Addendum (if required) 1644-696

6. Retrieval Requests 1644-603

7. Fee Collections (Retrieval Fee Billing) 1740-700

8. First Chargebacks, Full and Partial 1442-450

1442-453

9. Second Presentments, Full and Partial 1240-205

1240-282

10. Arbitration Chargebacks, Full and Partial 1442-451

1442-454

11. Fee Collections (non–Retrieval Fee Billing)—DDDD- 1740-700

generated, Returns, Resubmissions, Arbitration Returns,
1740-780
and Clearing System-Generated
1740-781
1740-782
1740-783

12. Message Exception and File Reject 1644-691

1644-699

13. File Currency Summary, Financial Position Details, and 1644-680

Settlement Position Details
1644-685
1644-688
1644-698

14. File Trailer 1644-695

When there are multiple message types (for example, multiple first presentments) for multiple
receiving customer IDs, the Global Clearing Management System sequences them as follows:

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 Clearing Processing Details
Global Clearing Management System Sequence of the File Generated by Mastercard

• All message types except 1644-693 (Text Message) and 1644-640 (Currency Update): first
by receiving customer ID and then by message type
• 1644-693 (Text Message) and 1644-640 (Currency Update) messages: once per processor
by the first occurring (lowest) customer ID and then by message type
If a customer or processor processes for multiple customer IDs, Global Clearing Management
System constructs files generated by Mastercard as shown in the following table. For example,
suppose that customer ID 004444, endpoint 1, processes for customer ID 002222 and
customer ID 003333. When processing for multiple customer IDs, Global Clearing
Management System would construct the receiver’s inbound file as shown in the following
table.
Example of Sequencing of Files Generated by Mastercard

Endpoint 1, to Customer ID
MTI-Function Code Description (ICA)
1644-697 File Header 004444

1644-693 Text Message 002222

1644-640 Currency Update 002222

1240-200 First Presentment 002222

1644-696 Financial Detail Addendum 002222

1240-282 Second Presentment (Partial) 002222

1644-685 Financial Position Detail 002222

1644-698 Settlement Position Detail 002222

1240-200 First Presentment 003333

1644-603 Retrieval Request 003333

1740-700 Fee Collection (Retrieval Fee Billing) 003333

1442-450 First Chargeback—Full Amount 003333

1240-205 Second Presentment 003333

1442-451 Arbitration Chargeback—Full Amount 003333

1740-700 Fee Collection (non–Retrieval Fee Billing) 003333

1644-685 Financial Position Detail 003333

1644-695 File Trailer 004444

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 Clearing Processing Details
Merging of Clearing Information Between Cycles

Merging of Clearing Information Between Cycles

Customers and processors may choose to receive clearing data less than six times per day. This
results in the merging of their clearing activity across cycle boundaries.
When the customer’s or processor’s next delivery cycle is completed, the clearing file delivered
will actually represent activity from two cycles, or even three cycles, if two consecutive cycles
have been skipped. In the following example, if a customer receives clearing data after cycles
1, 2, 5, and 6, the file delivered after cycle 5 will contain data from clearing cycles 3, 4, and 5.

NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists exclusively
for Mexico domestic switching transactions.

NOTE: Within the MTI-Function Code category, data will not necessarily be in ascending
clearing cycle sequence. For example, cycle 5 First Presentments might precede cycle 4 First
Presentments.

Example Illustrating Delivery Cycle 5 with Clearing Cycles 3, 4, and 5

MTI-Function Clearing Delivery

Code Description Cycle Cycle
1644-697 File Header 5 5

1644-693 Text Message 5 5

1644-640 Currency Update 5 5

1240-200 First Presentment 3, 4, 5 5

1644-696 Financial Detail Addendum (when present) 3, 4, 5 5

1644-603 Retrieval Request 3, 4, 5 5

1740-700 Fee Collection/Retrieval Fee Billing (DE 25 = 7614) 3, 4, 5 5

1442-450/453 First Chargeback, Full or Partial 3, 4, 5 5

1240-205/282 Second Presentment, Full or Partial 3, 4, 5 5

1442-451/454 Arbitration Chargeback, Full or Partial 3, 4, 5 5

1740-700/780/ Fee Collections/Other (other then DE 25 = 7614) 3, 4, 5 5

781/782/783

1644-691 Message Exception 3, 4, 5 5

1644-699 File Reject 3, 4, 5 5

1644-680 File Currency Summary 3, 4, 5 5

1644-685 Financial Position Detail 3, 4, 5 5

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 Clearing Processing Details
Delivery of Administrative Messages Following Clearing Cycles

MTI-Function Clearing Delivery

Code Description Cycle Cycle
1644-688 Settlement Position Detail 3, 4, 5 5

1644-695 File Trailer 5 5

The individual messages in a specific MTI-Function Code will continue to be sequenced as they
are today.

Delivery of Administrative Messages Following Clearing Cycles

Customers and processors that receive early reconciliation files will receive their early
reconciliation files as soon as Global Clearing Management System has processed their
outgoing files. They will receive their administrative messages, such as those from Mastercard
to customers, after the next available delivery cycle they have chosen.

NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists exclusively
for Mexico domestic switching transactions.

Customers and processors that elect to receive early reconciliation files may receive
information after all six cycles. For example, if a customer chooses to receive clearing files after
cycles 1, 2, 4, and 6, and to send files to Mastercard during cycles 3 and 5, the customer will
receive clearing files in all six cycles.
Customers and processors that choose to not receive early reconciliation will receive all of their
reconciliation messages, error messages, and messages from Mastercard to customers after
the next available delivery cycle they have chosen.
Global Clearing Management System will not recalculate or merge totals of reconciliation
messages that are held until the next available delivery cycle.
For example, if a customer or processor has selected cycles 1, 3, 4, and 6 as its delivery cycles
and has elected to not receive early reconciliation files, the following will apply:
• Reconciliation and error messages, if any, from cycle 1 will be delivered after cycle 1
processing.
• Reconciliation and error messages generated in clearing cycle 2 will be held, combined
with any reconciliation and error messages reconciliation and error messages generated
during cycle 3, and delivered after cycle 3 processing.
• Reconciliation and error messages generated in clearing cycle 4 will be delivered after cycle
4 processing.
• Reconciliation and error messages generated in clearing cycle 5 will be held, combined
with any generated during cycle 6, and delivered after cycle 6 processing.
The following table illustrates the differences of selecting receipt of early reconciliation
messages when both processors have chosen cycles 1, 3, 4, and 6 as their delivery cycles.
Early Reconciliation Customer and Non–Early Reconciliation Processor Example

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 Clearing Processing Details
Sequence of the Early Reconciliation File

IF the Processors that choose Processors that do not

current cycle AND both early reconciliation files choose early reconciliation
is… processors send in… will receive… files will receive…
Cycle 1 First Presentment Acknowledgement messages Acknowledgement messages
messages totaling for the USD 1,000 in First for the USD 1,000 in First
USD 1,000 Presentments when Global Presentments from cycle 1
Clearing Management System
processes the file

Cycle 2 First Presentment Acknowledgement messages Acknowledgement held for

messages totaling for the USD 2,000 in First the next delivery cycle
USD 2,000 Presentments when Global
Clearing Management System
processes the file

Cycle 3 First Presentment Acknowledgement messages Acknowledgement messages

messages totaling for the USD 3,000 in First for the USD 2,000 in First
USD 3,000 Presentments when Global Presentments from cycle 2
Clearing Management System
Acknowledgement messages
processes the file
for the USD 3,000 in First
Presentments from cycle 3

Cycle 4 First Presentment Acknowledgement messages Acknowledgement messages

messages totaling for the USD 4,000 in First for the USD 4,000 in First
USD 4,000 Presentments when Global Presentments from cycle 4
Clearing Management System
processes the file

Cycle 5 First Presentment Acknowledgement messages Acknowledgement held for

messages totaling for the USD 5,000 in First the next delivery cycle
USD 5,000 Presentments when Global
Clearing Management System
processes the file

Cycle 6 First Presentment Acknowledgement messages Acknowledgement messages

messages totaling for the USD 6,000 in First for the USD 5,000 in First
USD 6,000 Presentments when Global Presentments from cycle 5
Clearing Management System
Acknowledgement messages
processes the file
for the USD 6,000 in First
Presentments from cycle 6

Sequence of the Early Reconciliation File

Guidelines and processes exist for the generation and exchange of early reconciliation files
between Mastercard, Global Clearing Management System, and customers.
Customers electing to receive early reconciliation files generated by Mastercard will receive
one physical file for each physical file sent to Mastercard for processing. If the customer sends

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Global Clearing Management System Reference Manual • 15 October 2019 48
 Clearing Processing Details
Sequence of the Early Reconciliation File

a physical file containing two logical files, Global Clearing Management System will return
one early reconciliation Message file. The acknowledgement reconciliation messages for the
two logical files contained in the file sent to Mastercard will be contained in the single early
reconciliation message physical file.
For example, if the customer sends two logical files within a physical file, Global Clearing
Management System will send the acknowledgement reconciliation messages for the two
logical files within one physical file. Refer to the following figure for an illustration of this
example.
Number of Early Reconciliation Files Returned

The sequence number returned by Global Clearing Management System in the T113 early
reconciliation bulk file generated by Mastercard will match the sequence number sent by the
customer in the corresponding customer-generated R111 Global Clearing Management
System Data bulk file for those customers electing receipt of the early reconciliation files.
Mexico Domestic transactions for the seventh clearing is sent by customers under bulk type
RSP1 and Global Clearing Management System will use the sequence number from the RSP1
bulk file for early reconciliation and sent under the Bulk File T113 bulk to customers.
The sequence of an IPM early reconciliation message physical file generated by Mastercard is
similar to the sequence in the following table. Suppose that customer ID 004444, endpoint 1,
processes for customer IDs 002222, 003333, 005555, and 006666. When processing for
multiple customer IDs, Global Clearing Management System would construct the receiver’s
inbound file as shown in the following table.
For customers that participate in GCMS Early Reconciliation, a GCMS limitation requires that
the number of logical files within a phsyical file must not exceed 999. If the allowed limit is
exceeded, then customers will be impacted by not receiving early reconciliation for the
physical file amd could miss the preferred settlement cycle.
Sequencing of Files Generated by Mastercard Early Reconciliation

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Global Clearing Management System Reference Manual • 15 October 2019 49
 Clearing Processing Details
Administrative, IPM Text Messages Used by Global Clearing Management System

Endpoint 1, to Customer ID
MTI-Function Code Description (ICA)
1644-697 File Header 004444

1644-680 File Currency Summary 002222

1644-685 Financial Position Detail 003333

1644-691 Message Exception 005555

1644-685 Financial Position Detail 005555

1644-691 Message Exception 006666

1644-685 Financial Position Detail 006666

1644-695 File Trailer 004444

NOTE: This example assumes that data for all customers was received in two logical files. Each
logical file contains a file header, followed by various IPM clearing messages, followed by a
file trailer.

Customers can match the physical file sent to Mastercard with the early reconciliation file
shown below by the T113 Global Clearing Management System early reconciliation file. The
following table identifies the pairing of the early reconciliation files with the file sent by the
customer.

The customer should match the… With the…

T113 Global Clearing Management System R111 (or RSP1 for Mexico Domestico transactions
Early Reconciliation File received from under the seventh clearing cycle) Global Clearing
Mastercard Management System Data sent by the customer.

T121 Test—Global Clearing Management R119 (or RSP3 for Mexico Domestico transactions
System Early Reconciliation File received from under the seventh clearing cycle) Test—Global Clearing
Mastercard Management System Data sent by the customer.

Administrative, IPM Text Messages Used by Global Clearing Management System

Global Clearing Management System uses IPM text messages for certain functions.
• To transmit broadcast messages from the Global Clearing Management System to all
customers
• To transmit text messages (such as No Data messages) from the Global Clearing
Management System to a customer

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 Clearing Processing Details
Broadcast Text Messages Used by Global Clearing Management System

This message type contains 1644 in the MTI and 693 in DE 24 (Function Code) to identify it as
a text message.

Broadcast Text Messages Used by Global Clearing Management System

Global Clearing Management System distributes broadcast text messages in every clearing
cycle for the applicable period by the combination of customer or processor, endpoint, and
card program identifier.
Because broadcast text messages may contain time-critical information, these text messages
are not optional. Global Clearing Management System distributes them whether or not
customers have financial activity or other clearing data in the next available delivery cycle
based on options for the destination endpoint. If Global Clearing Management System has
acknowledgement, notification, or error messages ready to send at the time of the broadcast
message, Global Clearing Management System may include them in the same file as the
broadcast message. However, even if no such messages are ready to be sent, Global Clearing
Management System will send the broadcast message after the clearing cycle cutoff is
complete.

No Data Text Messages Used by Global Clearing Management System

If selected by the customer, Global Clearing Management System generates a No Data
message when there is no clearing data activity for the specified customer ID for the entire
delivery cycle.
For example, if the customer has chosen to receive clearing data from both cycles 5 and 6 in
one delivery, a No Data message would be delivered for the customer ID only if the customer
has no data to receive for either cycle. The message text in DE 72 (Data Record) will appear as
follows: NO DATA FOR THIS MEMBER AND/OR ENDPOINT FOR THIS CLEARING.
The Global Clearing Management System distributes No Data text messages by the
combination of customer or processor endpoint and delivery cycle. The Global Clearing
Management System generates these messages only if the customer or processor chooses to
receive them.
If the customer or processor does not choose to receive this No Data message and there is no
data for that customer or endpoint, the customer or processor will not receive an empty
dataset for specified delivery cycles. This No Data message also applies to the seventh clearing
cycle for Mexico domestic switching transactions.

NOTE: Mastercard recommends that customers using CONNECT:Direct choose to receive the
No Data file.

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 Clearing Processing Details
Processing and Delivery of Clearing Files

Processing and Delivery of Clearing Files

Clearing Times
The sending customer can submit transaction data for clearing to the St. Louis Operations
Center (Central Site) seven days a week, 24 hours a day.
Mastercard processes the data during one of six clearing periods Monday through Saturday.
The six cutoff times per processing day are 18:00 (16:00 on Sunday) and 21:00 the day before
the processing day, and 00:00, 03:00, 06:00, and 08:00 of the processing day (All times
shown are expressed as St.Louis time).
Customers may create and send clearing files as frequently as they want. Sending clearing files
earlier allows customers to have more transactions processed in earlier clearing cycle cutoffs,
thus ensuring the next available settlement of their accepted transactions.

NOTE: Mastercard does not recommend that customers send multiple single-record logical
files on a physical file. For alternative options, contact Global Customer Service. Sending in
multiple single-record logical files could cause processing of files to be significantly delayed.

Julian date refers to the day of the year expressed as a three-position number, with a range of
001 through 366 (for example, 001 on 1 January).
The file sequence subfield within PDS 0105 (File ID), a five-position file sequence number,
supports the frequent submission of files. It allows customers to have up to 99,999 files per
unique combination of PDS 0105, subfields one through three. PDS 0105 in the IPM format
consists of the subfields shown in the following table.
File ID Format for PDS 0105

Subfield Description Format

1 File Type n-3
File type 001 = Clearing system to customer
File type 002 = Customer Generated
File type 003 = Early Reconciliation

2 File Reference Date n-6

3 Processor ID n-11

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 Clearing Processing Details
Methods of Transmitting Data to Global Clearing Management System

Subfield Description Format

4 File Sequence Number n-5
For customer-generated files: Number assigned by
customer or processor. Must be unique for each Processor
ID and File Reference Date combination.
For files generated by Mastercard:
Positions 1–2 = Clearing Cycle
NOTE: This will be 99 if the customer receives
clearing files containing data from two or more
clearings.
Position 3 = Delivery Cycle (Values = 1–6)
Positions 4–5 = Sequence Number

NOTE: For additional information about customer delivery cycle options, refer to the Files
Generated by Mastercard section.

Methods of Transmitting Data to Global Clearing Management System

Customers transmit clearing data to Global Clearing Management System through certain
media and under certain conditions.
Mastercard supports several file transfer methods within Global Clearing Management
System. Refer to the File Transfer Manual for information about the specific methods.
For each transmission method, Global Clearing Management System performs edits to ensure
that the system does not process test files in the production environment. Therefore, if a
customer inadvertently sends a test file to the production environment, Global Clearing
Management System does not process it as production data.
Customers use the PDS 0122 (Processing Mode) to designate their outbound clearing files as
production (value P) or test (value T). All files generated by Mastercard will specify whether
Mastercard created them in production or in test mode, so that the customer can perform
checks for verifying that it does not process test files in the production environment.

Bulk IDs for Clearing Data

Customers transmitting IPM clearing data through the MIP should use PDS 0122 (Processing
Mode) and IPM bulk ID values.

Bulk Value in PDS 0122

Type Description (Processing Mode)
R111 Customer-generated production outbound IPM data to Central Site P

RSP1 Customer-generated production outbound IPM data to Central Site P

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 Clearing Processing Details
Bulk IDs for the MPE

Bulk Value in PDS 0122

Type Description (Processing Mode)
T112 Production IPM data generated by Mastercard from Central Site P

T113 Early Reconciliation Message file generated by Mastercard: If the P

customer chooses to receive this file, it provides early reconciliation
and error message details after each logical file from a customer is
processed

T121 Test bulk ID for the Early Reconciliation Message file generated by T
Mastercard

R119 Customer-generated test IPM data to Central Site T

RSP3 Customer-generated test IPM data to Central Site T

T120 Test IPM data generated by Mastercard from Central Site T

Bulk IDs for the MPE

Customers receiving the IPM MPE via the MasterCard interface processor (MIP) will receive IPM
bulk ID values.

Value in (PDS 0122

Bulk Type Description (Processing Mode)
T067 Production IPM MPE generated by MasterCard from Central Site
P
(daily updates)

T068 Production IPM MPE generated by MasterCard from Central Site

P
(full file replacement)

T167 Test IPM MPE generated by MasterCard from Central Site (daily
T
updates)

T168 Test IPM MPE generated by MasterCard from Central Site (full file
T
replacement)

Acknowledgement Bulk Files

After having applied the bank identification number (BIN) updates from the IPM MPE bulk files
listed above, acquirers must submit corresponding acknowledgement bulk files with the
following IPM bulk ID values to MasterCard.
• RMF5—Acknowledgement GCMS Parameter Extract Data–Daily Updates
• RMF7—Acknowledgement GCMS Parameter Extract Data Full File Replace

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 Clearing Processing Details
Bulk IDs for the MPE

• RMG5—Test—Acknowledgement GCMS–Parameter Extract File Daily Update

• RMG7—Test—Acknowledgement GCMS–Parameter Extract Full File Replace
The acknowledgement bulk files will contain header information from the MPE file being
acknowledged so that the two may be matched.

Layout of Acknowledgement Files—Daily Update MPE Files

Field Name Positions Attribute Comments and Values

IPM MPE File Identifier 1–15 an-15 Constant value: UPDATE FILE
followed by four spaces.

Date created 16–23 n-8 Date the IPM MPE Daily Update
file was generated.
Format: YYYYMMDD.

Time created 24–27 n-4 Time the IPM MPE Daily Update
file was generated.
Format: HHMM.

Filler 28–125 an-98 Spaces.

Layout of Acknowledgement Files—Full File Replace MPE Files

Field Name Positions Attribute Comments and Values

IPM MPE File Identifier 1–17 an-17 Constant value: REPLACEMENT
FILE followed by one space.

Module Identifier 18–31 an-14 Module that generated the IPM

MPE.

Filler 32–45 an-14 Constant value: CURRENT-DATE=

followed by one space.

Date created 46–54 an-9 Date the IPM MPE Full File
Replacement was generated.
Format: MM DD YY followed by
one space.

Filler 55–61 an-7 Constant value: TIME = followed

by one space.

Time created 62–69 an-8 Time the IPM MPE Full File
Replacement was generated.
Format: HH:MM:SS

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 Clearing Processing Details
Record Descriptor Word at the Beginning of IPM Messages

Field Name Positions Attribute Comments and Values

Filler 70–125 an-56 Spaces.

Record Descriptor Word at the Beginning of IPM Messages

A Record Descriptor Word (RDW) field appears before each IPM message.
The format of the data in both IPM clearing messages and IPM MPE messages (both full file
and updates) is Variable Blocked Spanned (VBS). Therefore, messages may be longer than the
Mastercard Network constraint of 1014 bytes. To accommodate customers delivering and
receiving these messages over the Network and through Mastercard File Express, a four-byte
Record Descriptor Word field immediately preceding each IPM message holds the length of
the data in each message.

Clearing Optimizer Software, Workstation Plus Version

The Clearing Optimizer software, Workstation Plus version, handles the Record Descriptor
Word (RDW) in the IPM clearing messages and in the IPM MPE messages correctly.
An RDW is present in all Variable Block Spanned (VBS) clearing files that Mastercard delivers to
customers or receives from customers. The customer’s method of file transfer determines how
the customer must hadnle the files.

MHPF MIP Load and Unload Modules

The Member Host Preparation Facility (MHPF) MIP load and unload modules handle the RDW
in the IPM clearing messages and in the IPM MPE messages correctly.
Additional information may be found in the File Transfer Manual.

CONNECT:Direct
The Record Descriptor Word (RDW) does not affect customers that send or receive IPM
clearing files, the IPM MPE file, or both through CONNECT:Direct.

Mastercard Network through a MIP

This table defines what to do with the Record Descriptor Word (RDW) based on the
communications software they use.

IF a customer… AND the customer… THEN the customer…

Sends IPM clearing files Uses Mastercard MHPF Can handle the RDW by installing the
through the Mastercard communications software optional JCL.
Network through a MIP
Job SMH1003R is the Customer Host
Bulk Load for Variable Length Data Files.

Does not use Mastercard Must delete then insert the RDW at the
MHPF communications beginning of each IPM clearing message
software before loading the IPM clearing file to
the MIP for delivery to Mastercard.

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 Clearing Processing Details
Processing Cards That have Converted from Cirrus to the Visa/PLUS ATM Network

IF a customer… AND the customer… THEN the customer…

Receives IPM clearing files, Uses Mastercard MHPF Can handle the RDW by installing the
the IPM MPE, or both communications software optional JCL.
through the Mastercard
Job SMH2003R is the Customer Host
Network through a MIP
Bulk Unload for Variable Length Data
Files.

Does not use Mastercard Must remove the RDW from the
MHPF communications beginning of each IPM clearing
software message, as the file is unloaded from
the MIP.

Processing Cards That have Converted from Cirrus to the Visa/PLUS ATM Network
Once cards are converted from Cirrus® to the Visa/PLUS ATM Network, customers must be
aware of the processing changes that occur.
In instances where an issuing account range has been converted from Cirrus to the Visa/PLUS
ATM Network, new transactions occurring after the conversion must be authorized and
processed by the Visa/PLUS ATM Network, not by the Single Message System. However,
transactions that were authorized by the Single Message System before the conversion to the
Visa/PLUS ATM Network must be cleared and settled by both Global Clearing Management
System and the Single Message System.
To accommodate customers that use the IPM MPE file for both authorization routing decisions
and clearing processing, when an issuer account range converts to the Visa/PLUS ATM
Network, Mastercard removes the account range from table IP0040T1 (Issuer Account Range)
in the IPM MPE file sent to customers, but still retains it in table IP0040T1 in the IPM MPE file
used by Global Clearing Management System. This procedure allows acquirers to stop sending
new authorization requests for the issuer account range to the Single Message System, but
still process clearing messages for previously authorized transactions by sending them to
Global Clearing Management System.
Acquirers that use the Clearing Optimizer software to process production clearing messages
before sending their files to Global Clearing Management System may receive error messages
from the Clearing Optimizer software for these transactions, even though they are accepted
when processed by Global Clearing Management System. To account for this condition,
Mastercard enhanced the Clearing Optimizer software to prevent customers from receiving
error messages when processing clearing messages for transactions authorized before an
issuer account range is converted from Cirrus to the Visa/PLUS ATM Network. This
enhancement consisted of adding the issuer account ranges that had been converted from
Cirrus to the Visa/PLUS ATM Network, to a Mastercard private use IPM MPE table IP9000T1.
The Clearing Optimizer software will use this table in its optimized table processing, to allow
Clearing Optimizer to accept clearing transactions involving these converted account ranges.

The following table describes distinctions between the two versions of the IPM MPE file in this context.

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 Clearing Processing Details
Automated Fuel Dispenser Processing

File Change
IPM MPE file sent to customers • Mastercard private use table IP9000T1—contains
issuer account ranges that have converted from
Cirrus to the Visa/PLUS ATM Network
• Table IP0090T1 (Issuer Account Range Card Program
Identifier and Business Service Arrangement
Participation)—contains issuer account ranges that
have converted from Cirrus to the Visa/PLUS ATM
Network.
• Table IP0040T1 (Issuer Account Range)—omits issuer
account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network, so that acquirers can
continue to understand that new authorizations for
these account ranges must be authorized and
processed through the Visa/PLUS ATM Network, and
not by Single Message System.

Optimized version of the IPM MPE (created • Table IP0090T1 (optimized version)—contains issuer
by the Clearing Optimizer software) account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network.
• Table IP0040T1 (optimized version)—contains issuer
account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network so that the Clearing
Optimizer software will no longer reject clearing
transactions for these issuer account ranges.

These changes are provided here to customers as a courtesy reminder of this feature;
therefore, no action is required.

Automated Fuel Dispenser Processing

This section describes the clearing impact for Automated Fuel Dispenser (AFD) processing.

Guiding Principles
Unless otherwise specified, these are suggested best practices for AFD processing and are not
mandatory.
• AFD transactions often clear for an amount that is different from the authorized amount.
Mastercard recommends (required in the Europe region) that AFD transactions be
submitted as preauthorizations (DE 61, subfield 7, [POS Transaction Status = 4]).
Mastercard recommends (required in the Canada, Europe, and U.S. regions) that acquirers
submit an AFD completion advice message to the issuer with the final transaction amount
after fueling is completed, regardless of the method used (1.00 AFD or maximum amount)
—even when the final purchase equals the authorized amount.
• If DE 38 (Approval Code) is contained in Authorization Request Response/0110 or
Authorization Advice Response/0130 message, the Mastercard also recommends that the
Trace ID (DE 15 [Settlement Date] and DE 63 [Network Data]) of the completion advice

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 Clearing Processing Details
Multi-Clearing Presentments for Authorization Transactions

response be used within the clearing presentment (Refer to the Automated Fuel Dispenser
Clearing Processing in the following section).
As an alternative, the Trace ID (DE 15 [Settlement Date] and DE 63 [Network Data]) of the
original preauthorization may be used for clearing presentment if that same Trace ID is
included in the AFD completion advice message within DE 48, subelement 63 (Trace ID).

Multi-Clearing Presentments for Authorization Transactions

Mastercard provides a multi-clearing indicator that is used when an authorized transaction will
have multiple presentments with partial amounts.
Mutli-clearing, single authorization transactions in a First Presentment/1240 message use two
values with DE 25.
DE 25 (Message Reason Code) provides the message receiver with the reason for sending the
message.
Values
The following values will be valid for First Presentment/1240 messages.

Value Description
1403 Previously approved authorization—partial amount, multi-clearing
1404 Previously approved authorization—partial amount, final clearing

Guiding Principles
• Multi-clearing is intended for improved open-to-buy (OTB) management of e-commerce
split shipments, but not limited to card-not-present merchants. Issuers should manage OTB
holds using the new multi-clearing reason codes and their own balance management
policies.
• Multi-clearing must include proper authorization matching data (DE 38 Approval Code, DE
63 Trace ID) or the presentment will be rejected. If the split shipment sequence is not
deterministic, e-commerce processors may not be able to identify which presentment is
final.
• Multi-presentment airline ticket and installment purchases are unaffected and will process
business as usual. Multi-clearing only applies to Mastercard credit and Debit Mastercard
transactions.

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 Clearing Processing Details
Confirmation of Successful Receipt and Processing of Global Clearing Management System Transmission Files

Confirmation of Successful Receipt and Processing of Global Clearing

Management System Transmission Files
Customers that send an inbound Global Clearing Management System transmission data file
to Mastercard will receive an automated corresponding outbound confirmation file from
Mastercard.
Customers that do not receive a confirmation file must contact the Global Customer Service
team to verify that their inbound file was received and processed successfully by Mastercard.

Penalty for Late Global Clearing Management System Retransmission Request

Customers that submit late Global Clearing Management System retransmissions requests will
be subject to an administrative fee.
If a customer is unable to process a Global Clearing Management System transmission and is
connected to the Mastercard Network, the customer must restage the data and unload it
again. If the customer is not connected to the Mastercard Network, the customer must
immediately request a recreate of the transmission.
Because satisfying late requests requires reprocessing in Global Clearing Management System,
Mastercard will charge each customer that requests the transmission of data no longer
available on the MIP. An administrative fee is charged per file of data requested. Refer to
2GC0001—Clearing Data Recreation fee in the Mastercard Consolidated Billing System
manual.

Global Clearing Management System Rejection of Messages

Global Clearing Management System will reject transactions containing inadequate message
elements.
In general, all transactions submitted to Global Clearing Management System for clearing
must pass specific Global Clearing Management System edits. The sending customer must
present all message elements with correct contents (for example, a numeric element must
contain only digits) and ensure that all required elements are present. If the sending customer
does not have an accurate description of required information, the customer should not
provide the element in the IPM message.

NOTE: Global Clearing Management System will reject the message if edits reveal that
required information is missing. In most cases, Global Clearing Management System will also
reject a message if an element contains all low values, all high values, all spaces, or all zeros.

Refer to the IPM Clearing Formats manual for specific exceptions to this policy. One such
exception is for Mexico Domestic transactions where, under certain conditions, the transaction
is not rejected but flagged for error and the transaction settles. This is referred to as syntax
error condition.

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 Clearing Processing Details
Full IPM File Rejection by Global Clearing Management System

NOTE: For information about the edits that apply to individual IPM messages, refer to the IPM
Clearing Formats manual.

When Global Clearing Management System encounters exception conditions at the single
message or file level, it generates appropriate error messages. Global Clearing Management
System creates the following types of IPM error messages:
• Full file rejection messages
• Single message rejection messages

NOTE: IPM reject messages contain no warning or adjustment conditions, only reject
conditions.

Global Clearing Management System can reject both a first presentment message and its
associated financial detail addendum messages, or it can reject just the associated financial
detail addendum messages, as follows:
• If Global Clearing Management System rejects an IPM first presentment message, it also
rejects and returns to the transaction originator all associated financial detail addendum
messages.
• If Global Clearing Management System rejects financial detail addendum messages, it does
not necessarily reject the associated first presentment message.

Full IPM File Rejection by Global Clearing Management System

If Global Clearing Management System rejects an entire IPM file, it does not forward the file
or any of its messages for further processing. Global Clearing Management System generates
the file reject messages to indicate that it has rejected the entire file.
The full file reject message provides the following:
• Up to 10 error codes describing the errors that caused the file to reject.
• The file ID of the rejected file, if it is present and the Global Clearing Management System
is able to parse it.
• Up to 200 positions of the rejected file’s first message.

NOTE: Global Clearing Management System does not return the IPM file reject message if the
header message of the rejected file is unparseable, nor if PDS 0105 (File ID), subfield 3
(Processor ID) is invalid. In these cases, Global Clearing Management System cannot
determine the receiver of the file reject message and therefore cannot notify the appropriate
customer of the file reject.

Example 1
Suppose that the transaction originator omits IPM messages between the file header and file
trailer messages. Because Global Clearing Management System requires data between the file
header and file trailer messages in a customer-submitted logical file, the absence of data
results in a file reject. The Global Clearing Management System would return a file reject
message to the transaction originator indicating the following:

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Full Clearing File Rejections Delivered with Early Reconciliation

• The file ID of the rejected file

• The appropriate error code
• Up to 200 positions of the first message (the header) in the rejected file
The Global Clearing Management System would not forward any of the messages to the
intended transaction destinations because it rejected the entire file.

Example 2
Suppose that the transaction originator includes a file ID in the file trailer message that does
not match the file ID in the file header message. The Global Clearing Management System
would return a file reject message to the transaction originator indicating the following:
• The file ID of the rejected file
• The field in error, with the appropriate error code
• Up to 200 positions of the first message in the rejected file
The Global Clearing Management System would not forward any of the messages to the
intended transaction destinations because it rejected the entire file.

Example 3
Suppose that the transaction originator includes PDS 0105 on a file header message that has
a duplicate file ID—that is, the file ID duplicates the ID of another clearing file submitted
within the previous 180 days. The Global Clearing Management System would return a file
reject message to the transaction originator indicating the following:
• The file ID of the rejected file
• The field in error, with the appropriate error code
• Up to 200 positions of the rejected file’s first message
The Global Clearing Management System would not forward any of the messages to the
intended transaction destinations because it rejected the entire file.

Full Clearing File Rejections Delivered with Early Reconciliation

If a customer receives the Early Reconciliation File, and Global Clearing Management System
rejects their entire clearing file, Global Clearing Management System sends the file reject
between a file header and a file trailer.

MTI-Function Code Description Endpoint 1, To:

1644-697 File Header 001111

1644-699 File Reject 001111

1644-695 File Trailer 001111

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 Clearing Processing Details
Single Message Rejection

If a customer processes for multiple customer IDs, Global Clearing Management System sends
a single file reject for that customer processor surrounded by a file header and a file trailer. For
example, if customer 004444, endpoint 1:
• Processes for customer IDs 001111, 002222, and 003333
• Sends a file with transactions for customer IDs 001111, 002222, and 003333, which
Global Clearing Management System rejects with a full file reject, and
• Receives the Early Reconciliation File
Global Clearing Management System would construct the file generated by Mastercard as
follows.

MTI-Function Code Description Endpoint 1, To

1644-697 File Header 004444

1644-699 File Reject 004444

1644-695 File Trailer 004444

Single Message Rejection

Global Clearing Management System generates IPM message exception messages when the
system encounters an exception condition as it is processing single messages.
• Up to 10 codes identifying the errors within the message being rejected and the associated
data elements, private data subelements, or both that caused the exception conditions.
• The file ID of the file containing the rejected message, if it is present and the Global
Clearing Management System can parse the data.
• The Acceptance Brand and Business Service ID being evaluated at the time of the reject.
The entire original message that the Global Clearing Management System rejected follows the
single message reject, if the message is parseable.

IF the message is rejected by… THEN…

Global Clearing Management System Global Clearing Management System provides the entire
original message unaltered.

The Clearing Optimizer application The Clearing Optimizer application provides the entire
original message, unaltered except for DE 71 (Message
Number) (Refer to the following information).

The Clearing Optimizer application assigns a new DE 71 value to the rejected original message
when returning it to the sending customer, although Global Clearing Management System
retains the DE 71 value from the original message. Customers also may use PDS 0138 (Source
Message Number ID) of the message exception message to identify the input source message

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 Clearing Processing Details
Single Message Rejections Delivered with Early Reconciliation

number. PDS 0138 will not be present if the original message is unparseable and Global
Clearing Management System cannot determine the DE 71 value from the original message.
If all detail messages in a logical file are rejected, the Global Clearing Management System
generates a Message Exception/1644-691 for each rejected detail message. Additionally, the
Global Clearing Management System generates a File Reject/1644-699 because none of the
individual messages were accepted.

Single Message Rejections Delivered with Early Reconciliation

If a customer receives the Early Reconciliation File and Global Clearing Management System
rejects individual messages in the customer’s clearing file, Global Clearing Management
System sends the message exception messages between a file header and a file trailer.
The rejected message follows its associated message exception message, as shown in the
following table.

MTI-Function Code Description Endpoint 1, to:

1644-697 File Header 001111

1644-691 Message Exception 001111

1240-200 Rejected First Presentment 001111

1644-691 Message Exception 001111

1644-696 Rejected Financial Detail Addendum 001111

1644-691 Message Exception 001111

1442-450 Rejected First Chargeback 001111

1644-685 Financial Position Detail 001111

1644-695 File Trailer 001111

If a customer processes for multiple customer IDs, Global Clearing Management System sends
all the message rejects for that customer surrounded by a file header and a file trailer. For
example, if customer 4444, endpoint 1, processes for customer IDs 1111 and 2222 and
receives the Early Reconciliation File, Global Clearing Management System would construct
the file generated by Mastercard as follows.

MTI-Function Code Description Endpoint 1, to

1644-697 File Header 004444

1644-691 Message Exception 001111

1240-200 Rejected First Presentment 001111

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 Clearing Processing Details
Reconciling Single Message Rejections

MTI-Function Code Description Endpoint 1, to

1644-691 Message Exception 001111

1240-205 Rejected Second Presentment 001111

1644-685 Financial Position Detail 001111

1644-691 Message Exception 002222

1644-603 Rejected Retrieval Request 002222

1644-680 File Currency Summary 002222

1644-695 File Trailer 004444

Reconciling Single Message Rejections

Customers should be prepared to administer the appropriate accounting procedures to handle
single message rejections and to reconcile incoming acknowledgment reconciliation data with
the previous outgoing data.
The customer may resubmit the rejected (corrected) messages mixed within a new file that
contains other messages or as a separate file. The customer may resubmit a rejected file with
the old file ID number only if the entire transmission is rejected.

Messages Supported by Mastercard for Mexico Domestic Transactions

Mastercard supports syntax errors, syntax error returns, retrieval request acknowledgement
messages, and late presentments for Mexico domestic transactions.

Syntax Errors for Mexico Domestic Transactions

Mexico domestic rules allow for transactions that meet certain conditions to be cleared and
settled. Under these conditions, transactions are not rejected, but are flagged as containing
one or more syntax errors.
When a transaction is flagged with a syntax error, the receiver of the transaction has the right
to return the transaction to the sender.
Mastercard will identify syntax errors in the following PDS 0005 (Message Error Indicator)
messages for all Mexico domestic point-of-sale (POS) and credit card payment transactions.
• First and Second Presentment/1240
• First and Arbitration Chargeback/1442
• Retrieval Request/1644
• Miscellaneous Fee Collection/1740
PDS 0005 will contain both the Mastercard-defined syntax error number and the local reason
code. For details about the syntax error identification, refer to PDS 0005 in Appendix E, IPM
Data Element and Private Data Subelement Definitions in the Dual Message System Release
11.Q4 Document.

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 Clearing Processing Details
Syntax Error Returns for Mexico Domestic Transactions

Transactions that are flagged only with syntax errors are not rejected, but will be cleared and
settled business as usual. However, transactions that are flagged with syntax errors and also
have other errors resulting from Clearing Platform edits will be rejected.

Syntax Error Returns for Mexico Domestic Transactions

The Clearing Platform will support the ability for the receiver of a Mexico domestic transaction
with a syntax error to return the syntax error to the sender within a given timeframe using the
same message format as used for the original transaction.
For example, an issuer may return a syntax error for a First Presentment/1240 message to the
acquirer using a First Presentment/1240 message. Likewise, an acquirer may return a syntax
error for a First Chargeback/1442 message to the issuer using a First Chargeback/1442
message.
When sending a syntax error return, the receiver must ensure that the message contains the
following values:
• DE 25 (Message Reason Code) containing one of the following message reason codes that
identifies a syntax error return:
– 1500 (for presentment messages only)
– 4890 (for chargeback messages only)
– 6390 (for retrieval request messages only)
– 7715 (for miscellaneous fee collection messages only)
• PDS 0005 (Message Error Indicator) containing the syntax error. While a transaction may
have multiple syntax errors, for syntax error return PDS 0005 will only identify a single
condition as the reason for the return.
• PDS 0225 (Syntax Return, Original Message Reason Code) containing the original message
reason code value from DE 25.

NOTE: Interchange and fees will be reversed on syntax error return messages. The receiver of
the returned syntax error can return the message and collect funds using a Miscellaneous Fee
Collection/1740 message, if applicable.

Error Detail—Input Sequence Report and Global Collection Only Error Detail—
Input Sequence Report
Global Clearing Management System reports rejected transaction data through the Error
Detail—Input Sequence report and the Global Collection Only Error Detail—Input Sequence
report. These reports provide all data elements of a rejected message, including data that fails
edits and data that passes edits, highlighting the data elements in error.
These reports include rejected transaction details at the following levels:
• Logical file to Mastercard
• Processing Mode (Test or Production)
• Source Message Number
• Source Currency
• Source Amount

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

• Transaction Function
• Global Collection Only separated from non–Global Collection Only rejected transactions
These reports are billable at USD 0.01 per line and are billed through the Mastercard
Consolidated Billing System (MCBS). The billing event numbers are as follows.

Report Number Description Billing Event Number

IP857010-AA Error Detail Report 2RP2219

IP857010-BB Global Collection Only Error Detail Report 2RP2220

The Error Detail—Input Sequence reports are optional. The Global Clearing Management
System transmits this report using bulk type T140 for production and bulk type T150 for test
reports.

NOTE: Customers that request these reports will receive them after each clearing cycle,
regardless of the customer’s file delivery options. For example, if data from clearing cycles 3
and 4 are merged for data delivery, Global Clearing Management System will produce a
report after clearing cycle 3 and a separate report after clearing cycle 4.

Figure: Error Detail—Input Sequence Report (IP857010-AA), Banner Page, page 1

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Error Detail—Input Sequence Report (IP857010-AA), Banner Page Field Descriptions

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Description A detailed description of the error encountered, or if no errors are

encountered, the literal FILE PROCESSED—NO ERRORS
ENCOUNTERED.

Figure: Error Detail—Input Sequence Report (IP857010-AA), File Level Reject, page 2

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Error Detail—Input Sequence Report (IP857010-AA), File Level Reject, page 2 Field
Descriptions

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers
and Messages manual for a list of the error codes established by
Mastercard and their corresponding descriptions.

Description A detailed description of the error encountered.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Element ID The number of the data element or private data subelement causing
the error condition.

Invalid Data (Does not print for file level rejects).

File Information If parseable, contains up to the first 200 positions of data in a reject
of an entire file (This information prints only for file-level rejects).

Figure: Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject,

page 3

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Figure: Error Detail—Input Sequence Report (IP857010-AA), continuation of page 3

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject, page 3

Field Descriptions

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Source Amount Monetary amount of the rejected message. For messages without a
DE 4 (Amount, Transaction) value (for example, retrieval fee billing or
financial detail addendum messages), the field will be zero.

MTI-Function Code The Message Type Identifier and the DE 24 (Function Code) value
associated with the rejected message.

Source Currency The alphabetic currency code associated with the monetary amount.

Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers
and Messages manual for a list of the error codes established by
Mastercard and their corresponding descriptions.

Description A detailed description of the error encountered.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Element ID The number of the data element or private data subelement causing
the error condition.

Invalid Data Listing of the contents of the data element or private data subelement
in error, within the rejected message (This information prints only for
message level rejects).

Message Details Details about the message.

Figure: Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject,

page 3 (alternate)

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject, page 3

(alternate) Field Descriptions

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers
and Messages manual for a list of the error codes established by
Mastercard and their corresponding descriptions.

Description A detailed description of the error encountered.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Element ID The number of the data element or private data subelement causing
the error condition.

Invalid Data Listing of the contents of the data element or private data subelement
in error, within the rejected message (This information prints only for
message level rejects).

Message Unparseable Contains up to the first 200 positions of the rejected message when
Global Clearing Management System cannot parse the message into
elements.

Figure: Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject,

page 4

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Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Error Detail—Input Sequence Report (IP857010-AA), Message Level Reject, page 4

Field Descriptions

Field Description
Run Date The date on which this report was produced.

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Message Type Identifies whether the message has a settlement indicator of settled
by Mastercard, bilateral (not settled by Mastercard), or Global
Collection Only.

Financial Detail Identifies messages that have monetary impact.

Non-Financial Detail Identifies messages that do not have monetary impact.

Unrecognizable Detail Identifies messages that cannot be parsed.

Currency The alphabetic currency code of the source currency.

Amount The net total of the source monetary amount of the messages.
Messages that do not include a DE 4 (Amount, Transaction) value are
not included in this field.

Count The total number of messages.

Figure: Global Collection Only Error Detail—Input Sequence Report (IP857010-BB),

Banner Page (page 1)

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Global Collection Only Error Detail—Input Sequence Report (IP857010-BB), Banner

Page Field Descriptions

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Description A detailed description of the error encountered, or if no errors are

encountered, the literal FILE PROCESSED–NO ERRORS ENCOUNTERED.

Figure: Global Collection Only Error Detail—Input Sequence Report (IP857010-BB),

Message Level Reject

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Figure: Global Collection Only Error Detail—Input Sequence Report (IP857010-BB),

continuation

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Global Collection Only Error Detail—Input Sequence Report (IP857010-BB), Message

Level Reject Field Descriptions

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Source Amount Monetary amount of the rejected message. For messages without a
DE 4 (Amount, Transaction) value (for example, retrieval fee billing or
financial detail addendum messages), the field will be zero.

MTI—Function Code The Message Type Identifier and the Function Code associated with
the rejected message.

Source Currency The alphabetic currency code associated with the monetary amount.

Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers
and Messages manual for a list of the error codes established by
Mastercard and their corresponding descriptions.

Description A detailed description of the error encountered.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Source Element ID Identifies the element for which Global Clearing Management System
encountered the reject condition.

Invalid Data Listing of the contents of the element within the rejected message.

Message Details Details about the message.

Figure: Global Collection Only Error Detail—Input Sequence Report (IP857010-BB),

Message Level Reject (alternate)

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Global Collection Only Error Detail—Input Sequence Report (IP857010-BB), Message

Level Reject (alternate) Field Descriptions

Field Description
Run Date The date on which this report was produced.

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers
and Messages manual for a list of the error codes established by
Mastercard and their corresponding descriptions.

Description A detailed description of the error encountered.

Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).

Element ID The number of the data element or private data subelement causing
the error condition.

Invalid Data Listing of the contents of the data element or private data subelement
in error, within the rejected message.

Message Unparseable Contains up to the first 200 positions of the rejected message when
Global Clearing Management System cannot parse the message into
elements.

Figure: Global Collection Only Error Detail—Input Sequence Report (IP857010-BB),

Message Level Reject

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Global Collection Only Error Detail—Input Sequence Report (IP857010-BB), Message

Level Reject, page 2 Field Descriptions

Field Description
Run Date The date on which this report was produced.

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 Clearing Processing Details
Error Detail—Input Sequence Report and Global Collection Only Error Detail—Input Sequence Report

Field Description
Page The page number within the report.

File ID The logical file ID of the customer-generated file to which the data in
this report pertains.

Processing Mode Type of processing (Production or Test) to be performed on this file.

Message Type Identifies whether the message has a settlement indicator of settled
by Mastercard, bilateral (not settled by Mastercard), or Global
Collection Only.

Financial Detail Identifies messages that have monetary impact.

Non–Financial Detail Identifies messages that do not have monetary impact.

Unrecognizable Detail Identifies messages that cannot be parsed.

Currency The alphabetic currency code of the source currency.

Amount The net total of the source monetary amount of the messages.
Messages that do not include a DE 4 (Amount, Transaction) value are
not included in this field.

Count The total number of messages.

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Global Clearing Management System Reference Manual • 15 October 2019 87
 Processing Cycles and Regulations

Chapter 3 Processing Cycles and Regulations

This section describes the processing cycles for clearing transactions and introduces the time frame
requirements associated with each processing cycle.

Clearing Processing Cycles and Time Frames................................................................................. 90

Customer Requirements and Guidelines for Processing Transactions through Global Clearing
Management System................................................................................................................90
Customer Guidelines for First Presentments.............................................................................. 91
Currency Conversion of Global Clearing Management System Transactions......................... 91
Time Frame for First Presentments....................................................................................... 91
Risk Reduction Process Applied to Global Clearing Management System Transactions.......... 92
Retrieval Requests and Fulfillments........................................................................................... 93
Healthcare Retrieval Requests and Fulfillments..................................................................... 93
Chargeback Processing.............................................................................................................94
Time Frame for First Chargeback..........................................................................................94
Time Frames for Second Presentments or Arbitration Chargebacks...................................... 95
Time Frames for Disputes Involving Arbitration.....................................................................95
Chargeback Timeliness Edits................................................................................................ 96
Exclusion from Chargeback Timeliness Edits.........................................................................97
Processing Chargeback Messages........................................................................................ 98
Identifying the Chargeback Cycle.................................................................................... 98
Submitting the Transaction Amount for First Chargebacks, Second Presentments, and
Arbitration...................................................................................................................... 99
Chargeback Procedures for Purchase with Cash Back Transactions.................................100
DE 95 (card issuer reference data)................................................................................. 102
PDS 0262 (Documentation Indicator).............................................................................103
DE 72 (Data Record)...................................................................................................... 103
Getting Additional Information about Chargebacks........................................................... 103
Arbitration Following Chargebacks.........................................................................................105
Chargeback Infractions Worthy of Compliance Action............................................................ 105
Transaction Research Request......................................................................................................105
Ways to Perform a Transaction Research Request....................................................................106
Capabilities of the Transaction Investigator Tool...................................................................... 106
Transaction Investigator Product Registration.......................................................................... 107
Accessing and Using the Transaction Investigator....................................................................107
How to Set User Preferences...................................................................................................110
Understanding Fees for Transaction Research Requests........................................................... 111

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 Processing Cycles and Regulations

Global Clearing Management System Transaction and Chargeback Analysis Reports................... 111

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 Processing Cycles and Regulations
Clearing Processing Cycles and Time Frames

Clearing Processing Cycles and Time Frames

The clearing process follows a particular process that occur over various cycles and time
frames.
The clearing process begins when the acquirer presents transaction data to the issuer for the
first time, for posting to the cardholder’s account. After the first presentment of the
cardholder transaction, the issuer may determine that, for one of the reasons specified in the
Chargeback Guide, the transaction may be invalid. The issuer may charge back the transaction
when procedures in the Chargeback Guide specifically allow the issuer to return the
transaction to the acquirer for possible remedy.
For each transaction between issuer and acquirer, the following cycles allow presentment,
retrieval, and chargeback processing:
• First presentment consists of one step—from the acquirer to the issuer.
• The retrieval process consists of two steps—retrieval request and fulfillment.
• Except in the case of ATM, Maestro®, and Cirrus® transactions, the chargeback cycle
consists of three steps: chargeback, second presentment, and arbitration chargeback.
Arbitration chargeback does not occur for ATM, Maestro, and Cirrus transactions.
If necessary, arbitration case filing follows the arbitration chargeback.
The Global Clearing Management System maintains a chargeback history file, which stores
selected information from all incoming chargeback transactions that Global Clearing
Management System accepts. The purpose of the chargeback history file is to track
chargeback cycles and documentation that customers send. Global Clearing Management
System edits chargeback messages against the chargeback history file to validate cycle
sequence, time frames, and documentation requirements.
Mastercard standards govern the clearing presentment, retrieval, and chargeback cycles for all
interchange transactions involving the Mastercard brand. These standards define specific time
frames, constraints, and thresholds.
Mastercard has designed Global Clearing Management System to support customization of
these standards related to customer agreements, such as business service arrangements.
Mastercard considers requests for such customization on a case-by-case-basis.

Customer Requirements and Guidelines for Processing Transactions through Global

Clearing Management System
Customers must use the message formats detailed in the IPM Clearing Formats manual for all
presented transactions and chargebacks for processing through Global Clearing Management
System.
Mastercard encourages customers to process all chargeback documentation through the
MasterCom® Chargeback Support Documentation (CSD) application of the MasterCom
electronic imaging system. Using the CSD application will help ensure timely delivery of the

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 Processing Cycles and Regulations
Customer Guidelines for First Presentments

items, maintain an audit trail for the life cycle of the chargeback, and retain subsequent
chargeback and second presentment rights.

Customer Guidelines for First Presentments

The first presentment occurs when the acquirer submits transaction data to the issuer for the
first time, for posting to the cardholder’s account.
To minimize subsequent retrievals, chargebacks, and second presentments, acquirers must
ensure that all presented clearing transactions contain accurate and complete data in the
applicable first presentment and addendum messages. To further minimize subsequent
chargebacks and second presentments, issuers must ensure that all transaction detail provided
by the acquirer is readily available to the cardholder and to internal operations.
The acquirer must send all presented transactions to Global Clearing Management System
using the messages and procedures that Mastercard specifies.

NOTE: For information about the message procedures for presentment of transactions, refer
to the IPM Clearing Formats manual.

The acquirer must present all cash disbursements, purchases, credits, unique, and Payment
Transactions for the full amount of the original transaction currency as agreed to by the
cardholder. The amount may not be increased (or reduced in the case of a credit or a Payment
Transaction) unless specifically authorized within this manual. Acquirers must promptly present
these transactions to issuers.

Currency Conversion of Global Clearing Management System Transactions

Mastercard will convert all transactions processed through Global Clearing Management
System into the equivalent reconciliation currency amount for settlement.
Mastercard (not the card acceptor or acquirer) will convert the transaction using the buy, mid,
fixed, and sell rates of the representative group of currencies most frequently traded. Other
arrangements are defined for those customers participating in bilateral agreements as
described in Chapter 1 of the Settlement Manual and intracurrency settlement agreements as
described in the Settlement Manual.

NOTE: For more information about currency conversions, refer to the Currency Conversion
chapter.

Time Frame for First Presentments

A variety of rules and guidelines exist for customers to follow when first presenting, or first
receiving, a Global Clearing Management System transaction.
Mastercard defines the presentment time frame as the time between the date of the
transaction and the date the transaction is presented to the issuer. Thus, the seven-day time
frame defined below for electronically-read transactions does not include the transaction date
but does include the St. Louis Operations Center (Central Site) business date of the First
Presentment/1240 message.
The following first presentment time frames apply:

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 Processing Cycles and Regulations
Risk Reduction Process Applied to Global Clearing Management System Transactions

• When the transaction was completed with electronically recorded card information
(whether card-read or key-entered), the acquirer has a maximum of seven calendar days
after the transaction date to present the transaction to the issuer.
• When the transaction was completed with manually recorded card information (whether
imprinted or handwritten), the acquirer has a maximum of 30 calendar days after the
transaction date to present the transaction to the issuer.
• For transactions effected at a U.S. region merchant with a card issued in the U.S. region,
when the transaction was completed with manually recorded card information (whether
imprinted or handwritten), the acquirer has a maximum of 14 calendar days after the
transaction date to present the transaction to the issuer.
• A payment transaction must be presented in clearing within one business day of the
authorization date.
• A contactless transit aggregated transaction must be presented in clearing within 14
calendar days of the authorization date.
Notwithstanding these time frames, the acquirer has a maximum of 30 calendar days (14
calendar days for intra-United States transactions) after the transaction date to present a
transaction when the acquirer must delay presentment:
• Because of the merchant’s delay in submitting the transaction, as permitted under Chapter
3, Transaction Records of Transaction Processing Rules;
• A national bank holiday of at least four consecutive days occurred, which prevented the
acquirer from presenting a card-read or key-entered transaction within the applicable
seven-calendar-day time frame.
An issuer must still accept transactions submitted beyond the applicable time frame if the
cardholder account is in good standing or the transaction can be otherwise honored and
posted.
If the message has no transaction date when processed through Global Clearing Management
System, the date 15 days before the date in PDS 0105 (File ID), subfield 2 (File Reference Date)
will be presumed (for rules administration) to be the transaction date, subject to subsequent
establishment of the actual date by support documentation.

Risk Reduction Process Applied to Global Clearing Management System Transactions

Mastercard is updating the risk-reduction process that is applied to clearing messages.
When a First Presentment/1240 message violates risk-reduction parameters and is rejected
with error numbers 2202 or 2203, the following currently occurs to notify the acquirer of the
rejection:
• Mastercard sends a Bulk Type T112 or T113 file to global acquirers (or a TY30 or TY34 file
for customers in Russia) and, optionally, the IP857010-AA Error Detail Report.
• The Global Customer Service team notifies acquirers.
To avoid duplicate communications, Mastercard will no longer require the Global Customer
Service team to contact the acquirer when a First Presentment/1240 message is rejected.
Upon receiving a T112/T113 or TY30/TY34 file, global acquirers should immediately check the
file for error number 2202 or 2203. If the T112/T113 or TY30/TY34 file contains either of

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 Processing Cycles and Regulations
Retrieval Requests and Fulfillments

these error numbers, acquirers must contact the Global Customer Service team to request a
risk-management approval code.

Retrieval Requests and Fulfillments

On occasion, the issuer may find it necessary to request a copy of the TID to satisfy a
cardholder’s inquiry or resolve an internal investigation. An acquirer is under obligation to
fulfill this request by providing a copy or substitute draft of the TID, or by providing a response
indicating the reason for its failure to honor the request.
Customers may not submit retrieval requests for ATM transactions.

NOTE: Refer to the MasterCom manuals for more information about retrieval requests and
fulfillments, including information about processing time frames and processing procedures.

Healthcare Retrieval Requests and Fulfillments

Mastercard has provided a means for issuers who must respond to an IRS request for
healthcare Inventory Information Approval System (IIAS) data.
The issuer instigates the retrieval request process through MasterCom® electronic imaging
system. The healthcare retreival request must be fulfilled by the acquirer outside of
MasterCom through a secure method (such as, sending a bulk file, a fax, or a hard copy to a
mailing address).
When the acquirer fulfills the retrieval request outside of MasterCom, the request within
MasterCom will cycle off their MasterCom request queue or the acquirer can use an
appropriate fulfillment response code.
Issuers can provide instructions to the acquirer for fulfilling this request through PDS 1046
(Member-to-Member Proprietary Data), to be sent in the Retrieval Request/1644 message. PDS
1046 is the preferred method. If the issuer sends more than one preferred method (for
example, both a fax and a hard copy to a mailing address), the acquirer can choose which
method to use to fulfill the request. For all IIAS—an accepted and widely adopted inventory
system that assists merchants with substantiation of qualified health care purchases including
cash back, healthcare, prescription, prepaid bill pay, and vision amounts—requests, the
acquirer is not allowed to send documentation through MasterCom to fulfill the request. The
ability to attach documentation for all IIAS requests has been disabled in MasterCom.
Used in this context for retrieval requests, PDS 1046 would be variable in length, with a
minimum of 16 positions and a maximum of 200. It would be preceded by the standard IPM
tag field of 1046 and a three-digit length value.
The suggested format for issuers requesting this information follows.
PDS 1046 (Member-to-Member Proprietary Data)

Sequence of
Information Positions Name Attribute Justification
1 1–16 Fulfillment Fax Number ans-16 left

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 Processing Cycles and Regulations
Chargeback Processing

Sequence of
Information Positions Name Attribute Justification
2 17–46 Contact Name ans-30 left

3 47–62 Contact Phone Number ans-16 left

4 63–122 Contact E-mail Address ans-60 left

5 123–152 Contact Street Address ans-30 left

6 153–177 Contact City ans-25 left

7 178–187 Contact Postal (ZIP) Code ans-10 left

8 188–190 Contact State, Province, or ans-3 left

Region

9 191–193 Contact Country (alpha) ans-3 left

NOTE: Because this format is only a recommendation and uses existing customer-to-customer
proprietary data fields within the IPM format, it is not documented in the IPM Clearing
Formats manual.

Chargeback Processing
The chargeback process begins when an issuer determines that, for a valid chargeback reason
specified in the Chargeback Guide, the transaction may be charged back to the acquirer for
possible remedy. The chargeback life cycle includes the first chargeback and, if necessary, a
second presentment, arbitration chargeback, if applicable, and arbitration case filing.
The required time frames applicable to each cycle are described below.

Time Frame for First Chargeback

First chargebacks are carried out within certain amount of time following the St. Louis
Operations Center (Central Site) processing date depending on various details.
The message reason code determines the timeliness requirements for the first chargeback. The
time frames for first chargebacks are 45, 60, 90, 120, and 540 calendar days after the Central
Site processing date, depending on the reason for the chargeback. For certain message reason
codes, Global Clearing Management System does not edit the time frame. The chargeback
time frame may begin with a day after the Central Site processing date.
When delayed delivery of goods or performance of services by a card acceptor results in a
subsequent dispute about the condition of the goods or the quality of the services,
Mastercard will calculate the period of 120 days using the delivery or performance date.

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 Processing Cycles and Regulations
Time Frames for Second Presentments or Arbitration Chargebacks

In cases that involve… Mastercard calculates the period of 120 days from…
Delayed delivery of goods or The latest anticipated date that the card acceptor was to provide the
performance of services that goods or services.
the cardholder asserts the card
acceptor never provided

Interrupted services The date that the services cease.

NOTE: In no case shall the

first chargeback exceed 540
days (approximately 18
months) from the Central
Site processing date of the
first presentment. The issuer
must prorate the chargeback
amount to reflect the
services received.

NOTE: For more information about chargeback life cycle support and the time frame
associated with each chargeback reason, refer to the Chargeback Guide.

Time Frames for Second Presentments or Arbitration Chargebacks

Second presentments or arbitration chargebacks are carried out within a certain amount of
time.
The time frame for a second presentment involving the Mastercard brand or arbitration
chargeback is 45 calendar days. Global Clearing Management System measures this as the
time between the St. Louis Operations Center (Central Site) processing date on which the
customer received the chargeback or second presentment and the Central Site processing
date on which Global Clearing Management System processed the transaction as a second
presentment or arbitration chargeback. Global Clearing Management System will reject any
second presentment or arbitration chargeback submitted more than 45 days after receipt of
the previous cycle.

Time Frames for Disputes Involving Arbitration

Disputes involving arbitration are carried out within a certain amount of time.
The acquirer may file an arbitration case to Mastercard, for a decision on the dispute, within
45 calendar days of the St. Louis Operations Center (Central Site) processing date of the
arbitration chargeback.

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 Processing Cycles and Regulations
Chargeback Timeliness Edits

Chargeback Timeliness Edits

The chargeback timeliness edits verify that second presentments and arbitration chargebacks
do not exceed the applicable time frames for submission.
The chargeback timeliness edits use the Central Site processing date found in PDS 0158
(Business Activity), as shown in the following table.

The life cycle timeliness edits will compare

the… To the…
Central Site processing date in PDS 0158 Retrieval history date in PDS 0243 (MasterCom
(Business Activity), subfield 5 (Business Date) Retrieval Response Data), subfield 1 (MasterCom
Issuer Retrieval Request Date)

Central Site processing date in PDS 0158, Chargeback History File business date in PDS 0158,
subfield 5 subfield 5

Central Site processing date in PDS 0158, Date in retrieval history in DE 31 (Acquirer Reference
subfield 5 Data), subfield 3 (Julian Processing Date YDDD)

Retrieval history in PDS 0243, subfield 1 Date in retrieval history in DE 31, subfield 3

Examples
Compare the following examples to understand the effect of the submission date and time on
chargeback processing. In both examples, the customer submits the second presentment with
a message reason code of 2008, which has the requirement of submission within 45 days
after the first chargeback.

Events Example 1 Example 2

Global Clearing Management System 05 July 05 July
processes the first chargeback (Central
Site processing date):

The customer submits the second Saturday, 18 August after the Saturday, 18 August before
presentment with a message reason sixth clearing. The file header the sixth clearing. The file
code of 2008. date is Saturday, 18 August. header date is Saturday, 18
August.

Global Clearing Management System Monday, 20 August. Saturday, 18 August.

attempts to process the second Therefore, the date in PDS Therefore, the date in PDS
presentment (Central Site processing 0158, subfield 5 is 20 August. 0158 (Business Activity),
date). subfield 5 (Business Date) is
18 August.

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 Processing Cycles and Regulations
Exclusion from Chargeback Timeliness Edits

Events Example 1 Example 2

Global Clearing Management System PDS 0158, subfield 5 date = PDS 0158, subfield 5 date =
compares the second presentment 20 August 18 August
processing date (date in PDS 0158,
First chargeback processing First chargeback processing
subfield 5), to the first chargeback
date = 05 July date = 05 July
processing date (date in the
Chargeback History File).

Global Clearing Management System 47 days 45 days

edits determine the time elapsed
between the first chargeback
processing date and the second
presentment processing date.

RESULT Global Clearing Management Global Clearing Management

System rejects the second System accepts the second
presentment because it is past presentment because it is
the 45-day time frame. within the 45-day time frame.

Exclusion from Chargeback Timeliness Edits

Under certain conditions, Mastercard may grant exclusions for individual account ranges or
acquiring BINs.
A customer experiencing severe operational difficulties because of a natural disaster may
contact the Global Customer Service team and apply for a hardship variance. Once approved
by Mastercard, the hardship variance waives timeliness edits applicable to all chargeback
reasons for the prescribed time frame.
To allow for situations in which the hardship affects only a portion of a customer’s activity or
affects a processing center located in another country, Mastercard may grant exclusions for
individual account ranges or acquiring BINs. Exclusions granted at the customer level will
cause timeliness edits to be waived for all of a customer’s activity. Mastercard may also grant a
hardship variance at the processor level, which will result in timeliness edits being waived for
all customers assigned to that processor.
To implement a chargeback exclusion systematically, the IPM format uses edit exclusion
indicators.
Edit exclusion indicators are codes that Global Clearing Management System uses to
designate a transaction.
Global Clearing Management System edits PDS 0260 (Edit Exclusion Indicator), subfield 1
(Exclusion Request Code) for valid values. If Global Clearing Management System receives a
first chargeback, second presentment, or arbitration chargeback transaction with an invalid
exclusion indicator in this private data subelement, Global Clearing Management System will
reject the message.
Global Clearing Management System may reject a transaction for a reason other than an
invalid exclusion indicator (such as an invalid processing code provided in DE 3 [Processing

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 Processing Cycles and Regulations
Processing Chargeback Messages

Code]) and also find that the exclusion indicator is invalid. In this case, Global Clearing
Management System will provide the IPM error code 2006 (INVALID EXCLUSION INDICATOR)
in addition to the other applicable error codes in the IPM error message that the system
returns to the sender of the transaction.

Processing Chargeback Messages

Customers must process all chargebacks, second presentments, and arbitration chargebacks
through Global Clearing Management System using the First Chargeback/1442, Second
Presentment/1240, and Arbitration Chargeback/1442 messages.
The IPM Clearing Formats manual shows the formats and data requirements for these
messages.
IPM messages are composed of data elements and private data subelements critical to the
exchange of transactions between acquirers and issuers. Customers must ensure that all of
the data contained within the messages specified above is accurate and complete.
The submitting customer must perform specific edits on the messages specified above. In
general, the customer must edit all fields for correct content, and the message must contain
all required fields.
If the customer processes the message and it does not pass the edit criteria when Global
Clearing Management System receives it, Global Clearing Management System will reject the
message as a single item reject.
Identifying the Chargeback Cycle
Customers must use a combination of message type identifier (MTI) and function code to
identify the current cycle of the chargeback.
The specific reason for the First Chargeback/1442, Second Presentment/1240, or Arbitration
Chargeback/1442 is in DE 25 (Message Reason Code).

DE 24 (Function
MTI Code) Description
1442 450 First Chargeback (Full)/1442 for the full First Presentment/1240 amount.
Initiated by the issuer.

453 First Chargeback (Partial)/1442 for part of the First Presentment/1240

amount. Initiated by the issuer.

1240 205 Second Presentment (Full)/1240 for the full First Presentment/1240
amount. Initiated by the acquirer.

282 Second Presentment (Partial)/1240 for part of the First Presentment/

1240 amount. Initiated by the acquirer.

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 Processing Cycles and Regulations
Submitting the Transaction Amount for First Chargebacks, Second Presentments, and Arbitration

DE 24 (Function
MTI Code) Description
1442 451 Arbitration Chargeback (Full)/1442 for the full First Presentment/1240
amount. Initiated by the issuer.

454 Arbitration Chargeback (Partial)/1442 for part of the First Presentment/

1240 amount. Initiated by the issuer.

An issuer may exercise one first chargeback per presented transaction within the applicable
time frame limit specified in the Chargeback Guide.
An acquirer may process a second presentment if it can provide additional information, as
specified in the Chargeback Guide, to correct the original defect that led to the chargeback.
An issuer may process an arbitration chargeback if it is determined that a transaction was
improperly presented for a second time or if the issuer does not receive supporting
documentation required with the second presentment.
Submitting the Transaction Amount for First Chargebacks, Second Presentments, and
Arbitration
Customers must submit three elements for first chargebacks, second presentments, and
arbitration.
For first chargebacks, second presentments, and arbitration chargebacks, the sender submits
the following:
• DE 4 (Amount, Transaction), which provides the amount of the current chargeback in
either U.S. dollars or the customer’s intracurrency settlement currency.
• DE 30 (Amount, Original), which provides the original amount from the first presentment,
in the original transaction currency.
• PDS 0149 (Currency Codes, Amounts, Original), which provides the currency code
associated with the original transaction amount in DE 30.
If the message is for a partial amount, the sender also may submit PDS 0268 (Amount, Partial
Transaction), which provides the partial amount being submitted as a chargeback or second
presentment, in the original transaction currency.

NOTE: Once an issuer or acquirer submits a transaction as a partial transaction, customers

must submit the transaction as partial in all subsequent phases of the chargeback cycle.

DE 30 consists of the following subfields:

• Subfield 1—Original Amount, Transaction
• Subfield 2—Original Amount, Reconciliation
PDS 0149 consists of the following subfields:
• Subfield 1—Currency Code, Original Transaction Amount
• Subfield 2—Currency Code, Original Reconciliation Amount

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 Processing Cycles and Regulations
Chargeback Procedures for Purchase with Cash Back Transactions

PDS 0268 consists of the following subfields:

• Subfield 1—Amount, Partial Transaction
• Subfield 2—Currency Code, Partial Transaction
The combination of DE 4 and these three elements provides the receiver of the transaction
with a complete history of the amounts involved in the chargeback cycle. The DE 4 amount
supports partial first chargebacks, second presentments, and arbitration chargebacks while
still providing the original amount of the transaction from the first presentment in the original
transaction currency.
Customers must meet the following specific requirements related to the amount, depending
on the phase of the chargeback life cycle.
• An issuer must not present a chargeback for an amount that exceeds the full amount of
the transaction presented by the acquirer. An issuer may present a chargeback for an
amount less than the full amount of the transaction. The only exceptions are the following:
– If the message must be converted to U.S. dollars, the chargeback may be for an amount
greater than the transaction amount originally presented by the acquirer.
– If the transaction uses message reason code 4853 (Cardholder Dispute—Credit Posted
as a Purchase) or 4860 (Credit Posted as a Purchase), the chargeback is for twice the
transaction amount originally presented by the acquirer.
• To charge back a transaction for an amount less than the full amount of the transaction,
the issuer uses function code 453 with MTI 1442. The issuer includes the partial amount in
PDS 0268.
• An acquirer must not second present a chargeback for an amount that exceeds the full
amount of the transaction charged back by the issuer. The acquirer may second present for
an amount less than the full amount of the transaction.
• To submit a second presentment for an amount less than the full amount of the
transaction, the acquirer uses function code 282 with MTI 1240. The acquirer includes the
partial amount in PDS 0268.
• An issuer must not submit an arbitration chargeback for an amount that exceeds the full
amount of the transaction presented by the acquirer. An issuer may present an arbitration
chargeback for an amount less than the full amount of the transaction.
• To submit an arbitration chargeback for an amount less than the full amount of the
transaction, the issuer uses function code 454 with MTI 1442. The issuer includes the
partial amount in PDS 0268.
Chargeback Procedures for Purchase with Cash Back Transactions
Issuers choosing to process chargebacks on purchases with cash back transactions for
Maestro® and Debit Mastercard® transactions should adhere to certain guidelines.
Chargebacks on Net Purchase Only
If only the net purchase or a portion of the net purchase of a purchase with cash back
transaction is to be charged back, the issuer should submit it as a First Chargeback (Partial)/
1442 or Arbitration Chargeback (Partial)/1442.

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 Processing Cycles and Regulations
Chargeback Procedures for Purchase with Cash Back Transactions

The following table identifies the message element criteria for processing chargebacks on
purchases with cash back transactions.

Message Element Requirement

DE 3 (Processing Code), subfield Should be populated with 09, purchase with cash back
1 (Cardholder Transaction Type)

DE 4 (Amount, Transaction) Should contain the amount to be charged back

DE 30 (Amounts, Original) Should contain the original transaction amount of the First
Presentment/1240

DE 54 (Amounts, Additional) Should be present and be populated with zeros

Chargebacks on Total Amount

If the entire transaction amount of a purchase with cash back transaction is to be charged
back, the issuer should submit it as a First Chargeback (Full)/1442 or Arbitration Chargeback
(Full)/1442.
The following table identifies the message element criteria for processing chargebacks on
purchase with cash back transactions.

Message Element Requirement

DE 3 (Processing Code), subfield Should be populated with 09, purchase with cash back
1 (Cardholder Transaction Type)

DE 4 (Amount, Transaction) Should contain the amount to be charged back

DE 30 (Amounts, Original) Should contain the original transaction amount of the First
Presentment/1240

DE 54 (Amounts, Additional) Should contain the cash back portion of the purchase with cash
back transaction

Message Reason Codes

Issuers must not submit chargebacks on the cash back amount on Debit Mastercard purchases
with cash back transactions for the following message reason codes.

DE 25 (Message
Reason Code) Description
4853 Cardholder Dispute—Defective Merchandise/Not as Described

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DE 95 (card issuer reference data)

DE 25 (Message
Reason Code) Description
4854 Cardholder Dispute—Not Elsewhere Classified (U.S. region only)

4855 Nonreceipt of Merchandise

4859 Services Not Rendered

4860 Credit Not Processed

If initiating a chargeback for the purchase amount or a portion thereof, the issuer should
submit a First Chargeback (Partial)/1442 or Arbitration Chargeback (Partial)/1442.
DE 95 (card issuer reference data)
DE 95 (card issuer reference data) is a control value of 10 positions that the issuer assigns with
its original chargeback and is used to track the chargeback throughout its life cycle.
The issuer may, at its option, include its customer ID number when defining the value for this
element. The card issuer reference data may be used to identify the originator, and in turn, the
originator may determine and direct the chargeback to the department or affiliate customer
that initiated the original chargeback.
The issuer provides DE 95 when processing retrieval or chargeback messages. The acquirer is
required to include the same data in a subsequent fulfillment of the retrieval request or
acquirer advisement. In the case of a chargeback, this applies to both Second Presentment/
1240 and Arbitration Chargeback/1442 case filings.
The unique card issuer reference data provides an audit trail of a chargeback’s processing life
cycle. It allows customers to locate the source documentation needed to rebill a cardholder or
recharge a card acceptor.
The issuer must not use the card issuer reference data number more than once in a 12-month
period. Global Clearing Management System edits validate all incoming chargebacks against
the chargeback history file to ensure that the incoming chargebacks do not contain a card
issuer reference data used previously with the same BIN. Acquirers must not modify the card
issuer reference data when second presenting a chargeback. Global Clearing Management
System will reject the chargeback or second presentment if it contains an invalid card issuer
reference data. Customers should always submit DE 95 in all chargeback life cycle
transactions, even though Global Clearing Management System does not perform the
validation edits for ATM chargeback life cycle transactions (DE 3 [Processing Code], subfield 1
[Cardholder Transaction Type], value of 01).

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 Processing Cycles and Regulations
PDS 0262 (Documentation Indicator)

PDS 0262 (Documentation Indicator)

The documentation indicator shows whether supporting documentation will be provided for
the current chargeback or fee collection cycle. The field is mandatory for First Chargeback/
1442, Second Presentment/1240, and Arbitration Chargeback/1442 messages.

THEN this PDS contains a value

IF supporting documentation… of…
Is neither required nor sent (for example, for a retrieval or fee 0
collection message)

Will follow the message 1

Global Clearing Management System will edit this private data subelement for all First
Chargeback/1442, Second Presentment/1240, and Arbitration Chargeback/1442 messages
and will reject the message if the indicator is not a 0 or a 1.
DE 72 (Data Record)
DE 72 (Data Record) is used during the different chargeback processing cycles to provide the
receiving customer with specific information about the item.

NOTE: For specific message text requirements for each type of message, refer to the
Chargeback Guide.

Getting Additional Information about Chargebacks

Elements which carry information about the previous cycle of the transaction provide
customers with additional information when processing exception items.
• DE 30 (Amounts, Original), PDS 0149 (Currency Codes, Amounts, Original), and PDS 0268
(Original and Amount, Partial Transaction)
For first chargebacks, second presentments, and arbitration chargebacks, the sender
submits DE 30 and PDS 0149, which provide the original amount and associated currency
code from the first presentment, in the original transaction currency. PDS 0268 provides
the partial amount being submitted as a chargeback or second presentment, in the original
transaction currency.
• PDS 0243 (MasterCom Retrieval Response Data)
This private data subelement contains information related to the issuer’s retrieval request,
the acquirer’s response, and any subsequent decisions made by the issuer, the MasterCom
system, or both. The information provided in this private data subelement is obtained from
MasterCom historical data supplied by Global Clearing Management System. This private
data subelement consists of the following eight subfields:
– PDS 0244 (MasterCom Chargeback Support Documentation Dates)

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 Processing Cycles and Regulations
Getting Additional Information about Chargebacks

– Subfield 1—MasterCom Chargeback Support Documentation Sender Processing

Date (First Chargeback/1442).
– Subfield 2—MasterCom Chargeback Support Documentation Sender Processing
Date (Second Presentment/1240).
This private data subelement contains each date that the customers sent Chargeback
Support Documentation (CSD) for the first two chargeback cycles. This information
indicates whether the customers provided CSD in the appropriate time frames. The
system provides this information if it is available.
– PDS 0260 (Edit Exclusion Indicator)
This private data subelement contains information about processing of edit exclusions
when Mastercard has granted deactivation of transaction life cycle editing to a particular
customer. Mastercard will notify the customer when the system excludes chargeback
cycle edits and will advise the customer of the reason for the exclusion. PDS 0260
consists of the following subfields:
– Subfield 1—Exclusion Request Code. This code identifies the originator request to
bypass edit sets during processing of the transaction.
– Subfield 2—Exclusion Reason Code. This code, which the Global Clearing
Management System assigns, indicates approval of, and the reason for, the edit
exclusion.
– Subfield 3—Exclusion Results Code. This code, which the Global Clearing
Management System assigns, indicates the edit set or sets that the Global Clearing
Management System actually bypassed when it processed the transaction.
– PDS 0262 (Documentation Indicator)
This private data subelement indicates whether supporting documentation will be
provided for the current chargeback cycle.
– PDS 0266 (First Chargeback/Fee Collection Return Data)
This private data subelement contains dates, reasons, and other information from a first
chargeback. When this PDS is present in a second presentment or an arbitration
chargeback, it provides information from the first chargeback of that transaction,
including the message text from the first chargeback.
– PDS 0267 (Second Presentment/Fee Collection Resubmission Data)
This private data subelement contains dates, amounts, reasons, and other information
from a second presentment. When this private data subelement is present in an
arbitration chargeback, it provides information from the second presentment of that
transaction, including the message text from the second presentment.
Both PDS 0266 and PDS 0267 contain the following information from the appropriate
chargeback cycle:
– Subfield 1—Message reason code (from DE 25 [Message Reason Code] of the first
chargeback or second presentment)
– Subfield 2—First return business date (from PDS 0158 [Business Activity], subfield 5
[Business Date] of the first chargeback or second presentment)

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Arbitration Following Chargebacks

– Subfield 3—Edit exclusion reason code (from PDS 260, subfield 2 of the first
chargeback or second presentment)
– Subfield 4—Edit exclusion results code (from PDS 260, subfield 3 of the first
chargeback or second presentment)
– Subfield 5—First return amount (from DE 4 [Amount, Transaction] of the first
chargeback or second presentment)
– Subfield 6—First return currency code (from DE 49 [Currency Code, Transaction] of
the first chargeback or second presentment)
– Subfield 7—First return data record (from DE 72 [Data Record] of the first chargeback
or second presentment)

Arbitration Following Chargebacks

When the acquirer and issuer have exhausted all of their rights under the previously
mentioned three-step chargeback cycle, the acquirer may petition Mastercard to resolve the
dispute in an arbitration case filing.
The customer may not file an arbitration case unless it has first exercised all of its rights under
the previous processing cycles noted in this chapter.

Chargeback Infractions Worthy of Compliance Action

Compliance addresses situations where there is a rules violation but no applicable chargeback
reason code.
A customer may proceed to compliance for any alleged violation that:
• Would result in a financial loss.
• Is directly related to a rule or other Standard that is published in a Mastercard bulletin or
manual and is currently effective.
• Is not addressed by a chargeback remedy defined in the Chargeback Guide.
Any customer may proceed to compliance within 180 calendar days from the date when the
infraction occurred.

NOTE: For more information about compliance procedures, refer to the Chargeback Guide.

Transaction Research Request

A transaction research request is a request by a customer for Mastercard to provide
information about a transaction.
Customers can use either of the following two methods to research information about
previous transactions:
• Transaction Investigator tool to conduct research about specific transactions or a range of
transactions for an account number. The report generated provides customers with
transactional data such as card number, card validation code 2 (CVC 2) response, point-of-

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 Processing Cycles and Regulations
Ways to Perform a Transaction Research Request

sale entry mode, cardholder present information, merchant advice code, and message type
identifier (MTI).
• If the transaction is over 180 days, customers can submit a request using the Authorization
Research Request (Form 074). The Global Customer Service team will perform the research
for you. The team provides information about authorization transactions, duplicate reports,
microfiche re-creation, currency conversion rates, BIN and ICA numbers, and conversions.

Ways to Perform a Transaction Research Request

Customers can choose between two methods to research information about previous
transactions.
• Mastercard Transaction Investigator tool: This tool allows customers to conduct research
about specific transactions or a range of transactions for an account number.
• Global Customer Service: Contact the Global Customer Service team to have the team
perform the research for you. The team provides information about clearing transactions.
To participate in this service, customers must complete the Clearing Transaction Research
Request (Form 949).

Capabilities of the Transaction Investigator Tool

The Mastercard Transaction Investigator tool enables users to complete variety of unique tasks.
The Mastercard Transaction Investigator tool allows users to search the Mastercard data
warehouse for first presentment transactions that a customer has processed either as an issuer
or an acquirer.
This capability:
• Provides secure access to proprietary clearing information.
• Retrieves relevant transaction data elements online with the option to view all available
data elements for a transaction message type.
• Returns the data within seconds after the customer electronically submits the request for
research.
In addition, users can print the transaction data or export the information into a Microsoft®
Excel file.
The transaction data is stored in the Mastercard data warehouse and is available to customers
for three years. Most transactions are available within 24 hours of the transaction time.
To access the Transaction Investigator Tool, customers must be licensed users. New users can
sign up for Mastercard Connect through the Online Registration System. Registration is free to
Mastercard customers.
Mastercard Connect Registration
To register for Mastercard Connect, follow these steps.
1. Log on to Mastercard Connect at www.mastercardconnect.com.
2. On the Mastercard Connect landing page, click the Sign Up link in the left panel.
3. Follow the instructions that appear on your screen.

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 Processing Cycles and Regulations
Transaction Investigator Product Registration

Initial access to Mastercard Connect requires only your user ID and password, which are
created during the enrollment process. A SecurID token is assigned, if required for a
Mastercard Connect product that requires higher security level access.
For any assistance with Masterc ard Connect enrollment or product registration, contact
Global Customer Service Support at [email protected].

Transaction Investigator Product Registration

After you have successfully registered and obtained your Mastercard Connect user ID and
password or if you are an existing Mastercard Connect user, follow these steps to register for
Transaction Investigator.

Procedure
1. Log on to Mastercard Connect at www.mastercardconnect.com.
2. Enter your User ID and Password.
3. Click Store on the main menu (located in the upper-right corner) on the Mastercard
Connect home page.
4. Scroll or search for Transaction Investigator.
5. Click Add to Shopping. A confirmation message appears.
6. Click Cart to display the cart, and then click Checkout to display the Order Details
window.
7. Under Order Details, click Review Order, and then click Place Order.
Once the Security Administrator approves the request, Transaction Investigator will appear
under the Applications menu on the Mastercard Connect home page.
For any assistance with Mastercard Connect enrollment or product registration, contact
Global Customer Service Support at [email protected].

Accessing and Using the Transaction Investigator

After becoming licensed for the Transaction Investigator Tool, follow these steps to access and
use the tool.

Procedure
1. Log on to Mastercard Connect using your Mastercard Connect user ID and PIN/SecurID.
2. From the Applications menu, click Transaction Investigator.
On selecting Transaction Investigator, a new browser window opens and displays the
Transaction Investigator home page.
Searches can be performed from this screen using an account number and dates
combination, Auth Only data or click Advanced Search for additional search criteria.

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 Processing Cycles and Regulations
Accessing and Using the Transaction Investigator

3. Click Advanced Search and select the Clearing View on the left pane.

Clearing Summary
A summary of clearing information is displayed here based on the criteria entered in the
search. The information displayed may contain several records. Clicking a record in the
grid will automatically highlight and display the corresponding data at the top of the other
open panel—Clearing Detail. Data elements that do not contain any data are indicated in
the display with the words No Data.

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 Processing Cycles and Regulations
Accessing and Using the Transaction Investigator

You can customize the data display using the sort feature on any column in the Clearing
Summary. By clicking the column heading, the sort direction can be toggled. The default
sort is by transaction date.
Clearing Detail
The clearing data detail is displayed here for the record selected in the Clearing Summary
grid.
To expand the data elements that contain subfield data, click the corresponding plus sign.
The subfield data is highlighted for the expanded data element.

Global Collection-Only Data

Global Collection-Only data consists of Collection -only transactions neither issued nor
acquired in the United States. A GCO transaction is a transaction that is cleared and
settled outside the Mastercard Clearing system. This would include transactions that are
either:
– Acquired and issued by the same customer (On-Us)
– Acquired and issued by customers processing through the same processor (intra-
processor)
When a collection-only transaction occurs, the transaction is sent to Mastercard’s Global
Collection Management System GCMS with a settlement indicator (PDS165S01) value C
to indicate collection-only.

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 Processing Cycles and Regulations
How to Set User Preferences

When the Global Collection Only option is selected, the query searches for GCO
transactions from the GCO data store. The Clearing summary and details grids will display
the GCO transaction records.

How to Set User Preferences

You can set user preferences to customize the display of information in each panel within the
Transaction Investigator.

Procedure
1. Click the Customize box, from the panel tool bar.

2. From the Customize window, select the data elements that you want to hide from view.

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 Processing Cycles and Regulations
Understanding Fees for Transaction Research Requests

3. Click the Move Left arrow to move the selected data elements to the Hidden from View
panel. Use the Move Right arrow to move selected data elements to the My View panel.
4. Select the desired data element in the My View panel and click either the Up or Down
arrow to change the display order of the data elements.
5. Click Save.
6. Click Restore Default to reset the display to show all data elements.
7. Clicking on Search after entering the Cardholder account number and the date range, the
results may look similar to the following illustration. The Clearing Detail will display the
details corresponding to the highlighted transaction in the Clearing Summary grid.

Understanding Fees for Transaction Research Requests

A general research fee applies to each customer inquiry requesting information that is readily
available to the customer in a Mastercard publication, report, service, or other source.
Refer to the appropriate regional Mastercard Consolidated Billing System manual for fees and
billing information (The billing events 2AB1710, 2AB1711, and 2RP1778 apply).

Global Clearing Management System Transaction and Chargeback

Analysis Reports
These tables and figures provide details about Global Clearing Management System
transaction and chargeback analysis reports, such as the bulk types through which they are
transmitted, the versions in which they appear, and the descriptions of their fields.
The transaction and chargeback analysis reports include:
• Global Clearing Management System Transaction/Chargeback Analysis Report (IP776010-
AA)

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Global Clearing Management System Transaction and Chargeback Analysis Reports

• Chargeback Activity Summary—Acquirer (IP776020-AA)

• Dollar/Volume Summary Report—Acquirer (IP776030-AA)
The Global Clearing Management System uses the following bulk types to transmit these
reports:
• T783 (production)
• T784 (test)
These three reports have three versions with the same layout.

Version… Summarizes activity by…

-AA Acquirer

-BB Issuer

-CC Global Clearing Management System totals

Because the layouts are the same, the following shows only the -AA version.
These reports are available in the following media types:
• Mastercard Network/Bulk
• Mastercard File Express
• CONNECT:Direct
To request these reports, please contact the Global Customer Service team or refer to and
complete the Global Clearing Management System Parameter Worksheet (Form 600).
Figure: Global Clearing Management System Transaction/Chargeback Analysis Report
(IP776010-AA)

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Report IP776010-AA Field Descriptions

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Field Description
Report Name Constant; Value is always Mastercard Global Clearing Management System
Transaction/Chargeback Analysis..

Report Number Constant; Value is always IP776010-AA.

Customer ID Received from Global Clearing Management System customer master file.

Customer Name Name of the customer associated with the above member ID.

Report Subtitle Constant; Value is always Life Cycle Volume Analysis—Acquirer.

Run Date Current processing date.

Page Incremental number starting at 1 for each new ICA number/customer ID.

Period From The specific beginning and end dates of the reporting month.

Year-to-date Calendar year to date beginning with January through the current reporting
month.

Financial Detail Sent Total number of First Presentments/1240-200.

Dollar Volume Total U.S. dollar amount of First Presentments/1240-200.

First Chargeback Total number of First Chargebacks/1442-450 (full) and 1442-453 (partial).
Received

Chargeback Dollars Total U.S. dollar amount of 1442-450 (full) and 1442-453 (partial) messages.

Retrieval Reqst Recd Total number of Retrieval Request/1644-603 messages.

PCNT FNCL Value of the first Chargeback Received, Chargeback Dollars, and Retrieval
Reqst Recd fields as a percentage of the total First Presentments/1240-200
messages sent/received by the customer.

PCNT Global Clearing Value of fields 1 and 5 for the customer as compared with the total volume of
Management System corresponding activity processed by Global Clearing Management System for
all customers (IP776010-CC report).

Retrieval Volume

Retrieval ReqstRecd Total number of Retrieval Request/1644-603 messages processed for

(by acquirer) Sent (by MasterCom and manual (non-MasterCom) retrieval activity.
issuer)

Retrieval Volume

Fulfillments Sent Total number of fulfillments processed for MasterCom and manual (non-
MasterCom) fulfillment activity.

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Field Description
Retrieval Volume

CgbkRecd Total number of First Chargeback/1442-450 and 1442-453 messages sent/

received. Both MasterCom and manual (non-MasterCom) chargeback activity
is reported.

vs Retvls Recd Total number of First Chargeback/1442-450 and 1442-453 messages as a

percentage of total retrieval requests received (Retrieval Reqst Recd field).
Percentages are shown in the report for MasterCom, manual (non-
MasterCom), and total activity.

Reason Code Total number of First Chargeback/1442-450 and 1442-453 messages. Both
MasterCom and manual (non-MasterCom) activity is reported.

Retrieval Volume

Retrvls Recd vs Fin Total number of Retr. Rqst. Rcd. (Retrieval Request/1644-603 messages) as a
Sent percentage of Financial Detail Sent (First Presentment/1240-200 messages) for
MasterCom and manual (non-MasterCom) activity.

1st Cgbk Number of 45-day, 120-day, and total First Chargeback/1442-450 (Full) and
1442-453 (Partial) messages for all message reason codes received (by
acquirer) or sent (by issuer).

NOTE: Included in the 45-day count are transactions submitted with

message reason code, which are 60-day chargebacks, and included in
the 120-day count are ATM transactions submitted with reason code
4859, which are 180-day chargebacks.

2nd Pres Number of 45-day, 120-day, and Second Presentment/1240-205 (Full) for all
message reason codes received (by issuer) or sent and 1240-282 (Partial)
messages (by acquirer).

Arbitration Number of 45-day, 120-day, and total Arbitration Chargeback/1442-451(Full)

Chargeback and 1442-454 (Partial) messages for all reason codes received (by acquirer) or
sent (by issuer).

Total Volume Number of all first chargeback, second presentment, and arbitration
chargeback messages.

Total Total number of First Chargeback (1442-450 and 1442-453), Second

Presentment (1240-205 and 1240-282), and Arbitration Chargeback
(1442-451 and 1442-454) messages.

Average Ticket Total chargeback dollars divided by total chargeback volume. Total U.S. dollars
can be derived by adding the net U.S. dollar amount for chargebacks and
second presentments shown on the corresponding IP776030 Dollar Volume
Summary report.

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Figure: Chargeback Activity Summary—Acquirer (IP776020-AA)

Report IP776020-AA Field Descriptions

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Field Description
Report Name Constant; Value is always Mastercard Global Clearing Management
System Transaction/Chargeback Analysis..

Report Number Constant; Value is always IP776020-AA.

Customer ID Received from Global Clearing Management System customer master

file.

Customer Name Name of the customer associated with the above customer ID.

Report Subtitle Constant; Value is always Chargeback Activity Summary–Acquirer.

Run Date Current processing date.

Page Incremental number starting at 1 for each new ICA number/customer

ID.

Period From The specific beginning and end dates of the reporting month.

Reason Code All activity on this report is sorted by message reason code. Message
reason codes 4834 and 4859 include both ATM and non-ATM activity.
For a chargeback reason code, both MasterCom and manual (non-
MasterCom) activity is reported.

Percent of Cgbk Percentage of Total Chargeback Volume (for message reason code
specified) to the grand total of total chargeback volume processed.

Total Cgbk Volume Total number of first chargebacks, second presentments, and
arbitration chargebacks by message reason code.

Total Cgbk DollarAmount Total dollar amount of first chargebacks, second presentments, and
arbitration chargebacks by message reason code.

1st Cgbk Volume of First Chargeback/1442-450 (Full) and 1442–453 (Partial)

messages.

2nd Pres Volume of Second Presentment/1240-205 (Full) and 1240-282

(Partial) messages.

Arb Cgbk Volume of Arbitration Chargeback/1442-451 (Full) and 1442-454

(Partial) messages.

Grand Total Grand totals for all chargeback, second presentment, and arbitration
chargeback activity.

Figure: Dollar/Volume Summary Report—Acquirer (IP776030-AA)

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Report IP776030-AA Field Descriptions

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Field Description
Report Name Constant; Value is always Mastercard Global Clearing Management
System Transaction/Chargeback Analysis.

Report Number Constant; Value is always IP776030-AA.

Customer ID Received from Global Clearing Management System customer master

file.

Report Subtitle Constant; Value is always Dollar/Volume Summary—Acquirer.

Run Date Current processing date.

Page Incremental number starting at 1 for each new ICA number/customer

ID.

Period From The specific beginning and end dates of the reporting month.

Year-to-date Calendar year-to-date beginning with January through the current

reporting month.

Transactions The count of transactions.

Dollar Amount The dollar amount corresponding to the specified transactions.

Financial Detail Debits Total number and associated dollar volume of First Presentment/
1240-200 non-reversal debit messages.

Financial Detail Debit Reversals Total number and associated dollar volume of First Presentment/
1240-200 reversal debit messages.

Financial Detail Credits Total number and associated dollar volume of First Presentment/
1240-200 non-reversal credit messages.

Financial Detail Credit Total number and associated dollar volume of First Presentment/
Reversals 1240-200 credit reversal messages.

* Net Total (Transactions) Debits + credits - debit reversals - credit reversals.

* Net Total (Dollar Volume) Debits - credits - debit reversals + credit reversals.

Chargeback Debits Total number and associated dollar volume of non-reversal debit First
Chargeback/1442-450 (Full) and 1442-453 (Partial) and Arbitration
Chargeback/1442–451 (Full) and 1442-454 (Partial) messages.

Chargeback Debit Reversals Total number and associated dollar volume of reversal debit First
Chargeback/1442-450 (Full) and 1442-453 (Partial), and Arbitration
Chargeback/1442-451 (Full) and 1442-454 (Partial) messages.

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 Processing Cycles and Regulations
Global Clearing Management System Transaction and Chargeback Analysis Reports

Field Description
Chargeback Credits Total number and associated dollar volume of non-reversal credit First
Chargeback/1442-450 (Full) and 1442-453 (Partial) and Arbitration
Chargeback/1442-451 (Full) and 1442-454 (Partial) messages.

Chargeback Credit Reversals Total number and associated dollar volume of credit reversal First
Chargeback/1442-450 (Full) and 1442-453 (Partial) and Arbitration
Chargeback/1442-451 (Full) and 1442-454 (Partial) messages.

Representment Debits Total number and associated dollar volume of non-reversal debit
Second Presentment/1240-205 (Full) and 1240-282 (Partial) messages.

Representment Debit Reversals Total number and associated dollar volume of reversal debit Second
Presentment/1240-205 (Full) and 1240-282 (Partial) messages.

Representment Credits Total number and associated dollar volume of non-reversal credit
Second Presentment/1240-205 (Full) and 1240-282 (Partial) messages.

Representment Credit Total number and associated dollar volume of reversal credit Second
Reversals Presentment/1240–205 (Full) and 1240–282 (Partial) messages.

Retrieval Requests Total number and associated dollar volume of non-reversal Retrieval
Request/1644-603 messages.

Retrieval Request Reversals Total number and associated dollar volume of reversal Second
presentment/1240-205 (Full) and 1240-282 (Partial) messages.

Retrieval Request Fulfillments Total number and associated dollar volume of non-reversal
MasterCom and manual (non-MasterCom) fulfillment activity.

Retrieval Request Fulfillment Total number and associated dollar volume of reversal MasterCom
Reversals and manual (non-MasterCom) fulfillment activity.

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 Global Clearing Management System Transaction Processing for Account Level Management Services

Chapter 4 Global Clearing Management System

Transaction Processing for Account Level Management
Services
This section describes how Global Clearing Management System performs transaction processing
for applicable Account Level Management services.

Account Level Management........................................................................................................122

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 Global Clearing Management System Transaction Processing for Account Level Management Services
Account Level Management

Account Level Management

Mastercard Account Level Management is a platform that enables specialized processing so
that Mastercard can manage capabilities at the individual card account level.
Mastercard Account Level Management provides issuers the flexibility of qualifying cardholder
accounts for competitive interchange as well as upgrading cardholder accounts to a different
card product. The following are the key capabilities of Account Level Management
functionality. Availability of, and distinctions of, are based on location:
• Enhanced Value (United States, Canada, and select countries in the Europe region)
• Product Graduation Plus (United States, Australia, and select countries in the Europe
region)
• Product Graduation Select (select countries in the Latin America and Caribbean and Europe
regions)
• High Value (United States)
• Spend Shortfall (World Mastercard and World Elite Mastercard) (United States)
• Small Business Spend Processing (United States)
Refer to the Account Level Management User Manual for detailed information.

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 Mastercard Contactless and PAN Mapping Service

Chapter 5 Mastercard Contactless and PAN Mapping

Service
This chapter describes both how Global Clearing Management System performs transaction
processing for Mastercard contactless and the PAN Mapping Service.

Overview of the Mastercard Contactless and PAN Mapping Service............................................. 124

Mastercard Contactless Mapping Service Participation Guidelines........................................... 124
PAN Mapping Service..................................................................................................................125
Processing-only Participation in the Mastercard Contactless Mapping Service..........................125
Processing and Issuance of Non-card Form Factor Participation............................................... 125
Process Flow of the Mastercard PAN Mapping Service.............................................................125
Using the MPE to Identify Issuer Account Ranges Participating in the Contactless Mapping
Service................................................................................................................................... 126
Identifying PAN Mapping within IPM Messages...................................................................... 127
Contents of PDS 0001 (Mastercard Mapping Service Account Number)..............................127
PDS 0001, Subfield 1 (Account Number Type)............................................................... 128
PDS 0001, Subfield 2 (Account Number)....................................................................... 130
Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data input Mode).......... 130
Processing Transactions through the Mastercard Contactless Mapping Service........................ 130
DE 22 Values Identify Contactless Transactions to Global Clearing Management System.... 131
Processing First Presentment/1240 Messages through the Mastercard Contactless
Mapping Service................................................................................................................ 131
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/
1442 Messages through the Mastercard Contactless Mapping Service............................... 132
Processing Second Presentment/1240 Messages through the Mastercard Contactless
Mapping Service................................................................................................................ 134
Processing Fee Collection (Retrieval Fee Billing)/1740 Messages through the Mastercard
Contactless Mapping Service............................................................................................. 134
Summary of the Contents of Elements Related to the Mastercard Contactless Mapping
Service...............................................................................................................................135
Interchange Compliance Processing........................................................................................136
MasterCom Processing........................................................................................................... 137

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 Mastercard Contactless and PAN Mapping Service
Overview of the Mastercard Contactless and PAN Mapping Service

Overview of the Mastercard Contactless and PAN Mapping Service

Mastercard supports account level processes for Mastercard contactless and PAN Mapping
Service.
Mastercard contactless cards and non-card form factors that contain a proximity chip offer
consumers a fast and convenient way to pay. Using proximity chip payment technology,
consumers can pay for their purchases at the point of sale by tapping their Mastercard
contactless card or non-card form factor on a Mastercard contactless terminal. The Mastercard
contactless card or non-card form factor transmits the card information to the terminal. The
Mastercard contactless terminal interacts with existing authorization mechanisms to initiate
and complete the authorization. The increased speed and convenience make Mastercard
contactless a very attractive way to pay, especially in high-traffic venues such as mass transit
stations, movie theaters, and fast food restaurants.

Mastercard Contactless Mapping Service Participation Guidelines

Participation in the Mastercard contactless and PAN Mapping Service, including definitions of
Mastercard contactless account number and primary account number (PAN), requires a user to
follow various guidelines.
Mastercard contactless account number is a unique number encoded on the proximity chip of
a Mastercard contactless card or non-card form factor that the Mastercard PAN Mapping
Service associates with the PAN.
PAN is the number that is embossed, encoded, or both, on a Mastercard card that identifies
the issuer and the particular cardholder account.
Mastercard recommends that a unique account number be used for Mastercard contactless
transactions. This unique account number is the optimal way to avoid the risk of cross-
contamination. Use of a unique account number in the Mastercard contactless chip is
accepted by the issuer only if the value in DE 22 (Point of Service Data Code), subfield 7 (Card
Data Input Mode) indicates proximity (for example, from a Mastercard contactless contactless
chip). This comparison allows blocking of the authorization for transactions presented through
non-proximity channels such as magnetic stripe, mail order/telephone order (MO/TO), and the
Internet.
Implementation of a separate Mastercard contactless account number requires the issuer to:
• Allocate an extra account number to provide Mastercard contactless functionality for an
existing PAN.
• Establish a cross-reference between the PAN and the Mastercard contactless account
number so that they are managed together, if required.
Mastercard recognizes that the use of a separate Mastercard contactless account number for
some issuers may not be viable; therefore, Mastercard created the Mastercard PAN Mapping
Service. This optional service helps issuers process Mastercard contactless transactions by
translating Mastercard contactless account numbers into PANs that issuers can process with

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 Mastercard Contactless and PAN Mapping Service
PAN Mapping Service

minimal impact. Mastercard contactless account numbers eligible for the service may belong
to a Mastercard issuer.
Through the Mastercard PAN Mapping Service, Mastercard can provide Mastercard contactless
issuance and processing services as described in this chapter.

PAN Mapping Service

Processing-only Participation in the Mastercard Contactless Mapping Service

Issuers may choose to offer the Mastercard contactless Mapping Service by creating the
mapping file themselves. This choice is referred to as Processing-only participation.
In this scenario, the issuers provide Mastercard with a file mapping their cardholders’ PAN to
Mastercard contactless account numbers. The issuer or Mastercard then provides each
cardholder with a Mastercard contactless card or non-card form factor containing a
Mastercard contactless account number.
When the Mastercard contactless card or non-card form factor is used at a Mastercard
contactless terminal, the transaction first comes to Mastercard, where the Mastercard
contactless account number is replaced with the cardholder’s PAN.

Processing and Issuance of Non-card Form Factor Participation

Individual consumers may request a Mastercard contactless card or non-card form factor from
a secure Web site. This process is referred to as Processing and Issuance of Non-card Form
Factor participation.
Cardholders use a secure Web site to request or register a Mastercard contactless card or non-
card form factor and enter the PAN they would like to associate with it. The Web site
performs some security checks on the information entered and then approves the request.
Mastercard then provides the cardholder with the Mastercard contactless card or non-card
form factor requested. Upon receipt, the cardholder returns to the Web site and registers the
Mastercard contactless card or non-card form factor to activate the Mastercard contactless
account number. Mastercard collects the information provided through the Web site and
creates the file mapping of the Mastercard contactless account number to the PAN.

Process Flow of the Mastercard PAN Mapping Service

Mastercard maintains a Mastercard PAN Mapping Service database that maps Mastercard
contactless account numbers to PANs.
The Mastercard contactless Mapping Service database is used by the Mastercard Network and
Global Clearing Management System, so that the acquirer can always process transactions
using the Mastercard contactless account number and the issuer can always process using the
PAN.
1. When a consumer taps an eligible Mastercard contactless card or non-card form factor on
a Mastercard contactless terminal, the card or non-card form factor transmits the
Mastercard contactless account number to the terminal.

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 Mastercard Contactless and PAN Mapping Service
Using the MPE to Identify Issuer Account Ranges Participating in the Contactless Mapping Service

2. The Mastercard contactless terminal passes the Mastercard contactless account number
and other authorization information to the acquirer.
3. The acquirer initiates an authorization message containing the Mastercard contactless
account number and sends it to the Mastercard Network.
4. The Mastercard Network maps the Mastercard contactless account number to the
cardholder’s PAN before sending the transaction to the issuer.
5. The issuer responds with an authorization response message containing the PAN.
6. The Mastercard Network maps the cardholder’s PAN back to the Mastercard contactless
account number and sends the response message on to the acquirer.
7. The acquirer forwards the Mastercard contactless account number and other authorization
response information to the Mastercard contactless terminal.
8. The Mastercard Network logs all authorizations for which it performed the Mastercard
PAN Mapping Service and makes this information available to Global Clearing
Management System.
9. The acquirer sends to Global Clearing Management System the corresponding clearing
message, containing the Mastercard contactless account number.
10. Global Clearing Management System maps the Mastercard contactless account number to
the PAN using either the authorization logs or the Mastercard PAN Mapping Service
database before sending the clearing message to the issuer for posting.
11. Issuers can send to Global Clearing Management System subsequent retrieval and
chargeback messages containing the cardholder’s PAN, and Global Clearing Management
System maps the cardholder’s PAN to the Mastercard contactless account number before
sending the message to the acquirer.
Refer to the Authorization Manual for detailed information about using this service for
authorization processing.

Using the MPE to Identify Issuer Account Ranges Participating in the Contactless
Mapping Service
The IPM MPE table IP0040T1—Issuer Account Range contains the Mapping Service Indicator
field. This field identifies issuer account ranges that require the Mastercard PAN Mapping
Service.
This field contains one of the following values for each issuer account range.

Value Description
space The issuer account range does not participate in the Mastercard PAN Mapping
Service.

1 The issuer account range consists of PAN account numbers owned by an issuer, in
which the issuer actively participates in the PAN Mapping Service. Every transaction
containing this account range is to be mapped.

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 Mastercard Contactless and PAN Mapping Service
Identifying PAN Mapping within IPM Messages

Value Description
2 The issuer account range consists of PAN account numbers owned by an issuer, in
which the issuer actively participates in the PAN Mapping Service. Not all transactions
containing this account range are to be mapped because the issuer is phasing in the
PAN Mapping Service.

3 The issuer account range consists of contactless account numbers provided by

Mastercard, assigned to an issuer that participates in the Processing Only option of
the PAN Mapping Service.

4 The issuer account range consists of PAN account numbers provided by Mastercard,
assigned to an issuer that participates in the Processing and Issuance of Non-card
Form Factor option of the contactless Mapping Service by permitting its cardholders
to request a contactless card or non-card form factor through the website.

5 The issuer account range consists of contactless account numbers provided by

Mastercard, assigned to a merchant that sponsors the contactless card or non-card
form factor. The issuer passively participates in the PAN Mapping Service.

6 The issuer account range consists of contactless account numbers provided by

Mastercard, and Mastercard sponsors the contactless card or non-card form factor.
The issuer passively participates in the PAN Mapping Service.

Before distributing contactless non-card form factors to consumers, Mastercard adds to the
IPM MPE file issuer account ranges that consist of contactless account numbers. The IPM MPE
file contains valid Global Clearing Management System Product IDs, country codes, and other
fields necessary for processing for these issuer account ranges. They are assigned to
participate in all the default interregional, intraregional, and intracountry business services that
are relevant to their assigned country codes.

NOTE: If an issuer account range contains a value of 1-6 in this new field in the IPM MPE,
acquirers must send ALL transactions involving this issuer account range to Mastercard for
authorization and clearing because only the Mastercard systems contain the data needed to
map a contactless account number to a PAN. Transactions processed in an On-Us or
intraprocessor mode will not have access to this mapping data.

Identifying PAN Mapping within IPM Messages

Contents of PDS 0001 (Mastercard Mapping Service Account Number)
Global Clearing Management System provides PDS 0001 in any First Presentment/1240,
Retrieval Request/1644, Fee Collection (Retrieval Fee Billing)/1740, First Chargeback/1442,
Second Presentment/1240, or Arbitration Chargeback/1442 message in which it maps
between a contactless account number and a PAN.
This element indicates to the receiver of the message that Global Clearing Management
System performed the PAN Mapping Service for the transaction, and therefore, the sender of
the message has processed the transaction using a different value in DE 2. PDS 0001 is for
information only. The receiver of the message is not required to recognize PDS 0001 and must

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 Mastercard Contactless and PAN Mapping Service
PDS 0001, Subfield 1 (Account Number Type)

not retain and return PDS 0001 in future life cycle messages, although customers may choose
to store and use it within their internal systems to help resolve processing questions that may
occur.
PDS 0001 contains the following two subfields.

Number Name Description

1 Account Number Type This subfield indicates whether subfield 2 contains
a contactless account number or a PAN. It also
indicates the participation option and whether
Global Clearing Management System performed
the PAN Mapping Service using authorization logs
or another source.

2 Account Number In messages received by issuers, this subfield

contains the contactless account number and DE
2 (Primary Account Number [PAN]) contains the
PAN.
In messages received by acquirers, this subfield
contains the PAN and DE 2 contains the
contactless account number.

PDS 0001, Subfield 1 (Account Number Type)

Technical details about PDS 0001 (Mastercard Mapping Service Account Number), subfield 1
(Account Number Type).
Position 1 of this subfield contains the following.
• A value of 1–6, or the value 8 or 9 if the number in subfield 2 is a virtual account number.
• The value T if the account number in subfield 2 is a real card number.
Position 2 of this subfield contains the value space if Global Clearing Management System
performed the mapping service according to the authorization logs. It contains a C if Global
Clearing Management System performed the mapping service according to a source other
than the authorization logs (This position will contain a C in all retrieval and chargeback
messages).
Values for this subfield are listed in the following table.

Value Description
TC Subfield 2 contains a PAN. Mapping was based on a source other than the
authorization logs.

1 Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Every transaction containing this
account range is to be mapped. Mapping was based on the authorization logs.

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 Mastercard Contactless and PAN Mapping Service
PDS 0001, Subfield 1 (Account Number Type)

Value Description
1C Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Every transaction containing this
account range is to be mapped. Mapping was based on a source other than the
authorization logs.

2 Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Not all transactions in this issuer
account range are mapped, because the issuer is phasing in the PAN Mapping Service.
Mapping was based on the authorization logs.

2C Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Not all transactions in this issuer
account range are mapped, because the issuer is phasing in the PAN Mapping Service.
Mapping was based on a source other than the authorization logs.

3 Subfield 2 contains a contactless account number provided by Mastercard and is

assigned to an issuer that is actively participating in the PAN Mapping Service. Mapping
was based on the authorizations logs.
3C Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to an issuer that is actively participating in the PAN Mapping Service. Mapping
was based on a source other than the authorization logs.
4 Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to an issuer that is passively participating in the PAN Mapping Service by
permitting its cardholders to request a contactless card or device via that Web site.
Mapping was based on the authorization logs.
4C Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to an issuer that is passively participating in the contactless Mapping Service
by permitting its cardholders to request a contactless card or device via the Web site.
Mapping was based on a source other than the authorization logs.
5 Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to a merchant that sponsors the contactless card or device. The issuer is
passively participating in the PAN Mapping Service. Mapping was based on the
authorization logs.
5C Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to a merchant that sponsors the contactless card or device. The issuer is
passively participating in the PAN Mapping Service. Mapping was based on a source
other than the authorization logs.
6 Subfield 2 contains a contactless account number provided by Mastercard, and
Mastercard sponsors the contactless card or device. The issuer is passively participating
in the PAN Mapping Service. Mapping was based on the authorization logs.
6C Subfield 2 contains a contactless account number provided by Mastercard, and
Mastercard sponsors the PAN card or device The issuer is passively participating in the
contactless Mapping Service. Mapping was based on a source other than the
authorization logs.

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 Mastercard Contactless and PAN Mapping Service
PDS 0001, Subfield 2 (Account Number)

PDS 0001, Subfield 2 (Account Number)

PDS 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number)
technical details are listed here.
Subfield 2 contains a virtual or real account number or a PAN. When issuers receive PDS 0001,
the subfield 2 always contains a virtual account number.
This subfield is 6–19 digits in length.

Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data input Mode)
Currently, issuers only receive values A or M when sent by the acquirer.
For the mapping of contactless M/Chip and Contact M/Chip transactions in the PAN Mapping
Service, Mastercard will pass through the values (C and M) as provided by the acquirer.
The issuer must send the same values (either the C or M value), which are the original values
sent by the acquirer, in any subsequent First Chargeback/1442 or Arbitration Chargeback/
1442 messages.

Processing Transactions through the Mastercard Contactless Mapping Service

Transactions involving Mastercard contactless account numbers must be sent to the
Mastercard Network for authorization and to Global Clearing Management System for
clearing, because these are the only systems that have access to the Mastercard PAN Mapping
Service database needed to map between Mastercard contactless account numbers and PANs.
1. The Mastercard Network maps a Mastercard contactless account number to a PAN before
sending the authorization message to the issuer, and it maps the PAN back to the
Mastercard contactless account number before sending the authorization response to the
acquirer. In both the authorization and authorization response messages, the Mastercard
Network provides data fields indicating that the Mastercard Authorization System
performed the Mastercard PAN Mapping Service.
2. The acquirer receives an authorization response message containing the Mastercard
contactless account number in DE 2 (Primary Account Number [PAN]), and the PAN in DE
48 (Additional Data—Private Use), subelement 33 (contactless Mapping Information). The
acquirer is not required to recognize or store the PAN.
3. The acquirer populates DE 2 in the IPM First Presentment/1240 message with the
Mastercard contactless account number captured by the Mastercard contactless terminal.
4. Global Clearing Management System performs the Mastercard PAN Mapping Service for
the First Presentment/1240 and any subsequent life cycle transactions. All clearing
messages received by the issuer contain the PAN in DE 2, the Mastercard contactless
account number in PDS 0001 (Mastercard Mapping Service Account Number), and a value
of A or M in DE 22 (Point of Service Data Code), subfield 7 (Card Data Input Mode). All
clearing messages received by the acquirer contain the Mastercard contactless account
number in DE 2, the PAN in PDS 0001, and the acquirer’s originally submitted value in DE
22, subfield 7.

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 Mastercard Contactless and PAN Mapping Service
DE 22 Values Identify Contactless Transactions to Global Clearing Management System

DE 22 Values Identify Contactless Transactions to Global Clearing Management

System
These are the requirements to perform the Mastercard contactless Mapping Service for various
messages.
To perform the PAN Mapping Service for First Presentment/1240 messages, Global Clearing
Management System requires that the First Presentment/1240 contain DE 22 (Point of Service
Data Code), subfield 7 (Card Data Input Mode) with a value of A or M to indicate PAN entry
through a contactless mode. The acquirer must provide one of these values in a First
Presentment/1240 message when DE 2 contains a contactless account number.
To perform the PAN Mapping Service for First Chargeback/1442 and Arbitration Chargeback/
1442 messages, Global Clearing Management System requires that the chargeback message
contain DE 22, subfield 7 with a value of A or M, which are the original values sent by the
acquirer, to indicate that Global Clearing Management System performed the PAN Mapping
Service for the first presentment. The issuer receives this value in the First Presentment/1240
message and must provide it in any subsequent chargeback message to identify to Global
Clearing Management System when to map a PAN back to a contactless account number.
Therefore, issuers that participate in PAN mapping must be able to receive and provide DE 22,
subfield 7, value A (PAN auto-entry through contactless magnetic stripe) or M (PAN auto-entry
through contactless M/Chip), which are the original values sent by the acquirer, in IPM clearing
messages, even if they do not issue contactless cards.

Processing First Presentment/1240 Messages through the Mastercard Contactless

Mapping Service
When processing a First Presentment/1240, Global Clearing Management System validates the
contents of DE 2 (Primary Account Number [PAN]) against IPM MPE table IP0040T1.
If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a service-
eligible Mastercard contactless account number (indicated by a value of 1 to 6 in the Mapping
Service Indicator field. Global Clearing Management System checks DE 22 (Point of Service
Data Code), subfield 7 (Card Data: Input Mode) to ensure that it is present and that it contains
a value of A or M to indicate PAN entry through a contactless mode. If DE 22, subfield 7
contains A or M, Global Clearing Management System continues processing. If DE 22, subfield
7 does not contain A or M, Global Clearing Management System rejects the transaction
because this would be a fraudulent use of the Mastercard contactless account number.
1. Global Clearing Management System first attempts to match to the Mastercard PAN
Mapping Service authorization log according to the combination of Mastercard contactless
account number and Banknet Reference Number and Date. The Mastercard contactless
account number is in DE 2. The Banknet Reference Number and Date are present in DE 63
(Transaction Life Cycle ID), subfield 2 (Trace ID) in the IPM First Presentment/1240.
2. If Global Clearing Management System does not find a match in the Mastercard PAN
Mapping Service authorization log, or if DE 63 is not present in the First Presentment/
1240, Global Clearing Management System attempts to match to the Mastercard PAN
Mapping Service database using the Mastercard contactless account number in DE 2.

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 Mastercard Contactless and PAN Mapping Service
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442 Messages
through the Mastercard Contactless Mapping Service

3. If Global Clearing Management System cannot match the First Presentment/1240 message
to either the Mastercard PAN Mapping Service authorization log or the Mastercard PAN
Mapping Service database, Global Clearing Management System rejects the transaction.
After successfully mapping the Mastercard contactless account number to a PAN, Global
Clearing Management System uses the PAN in its processing. For example, it uses business
services in which the issuer of the PAN participates, and it delivers the transaction to the
endpoint associated with the issuer of the PAN, as opposed to the Mastercard contactless
account number. If the transaction contains no errors, Global Clearing Management System
modifies the data as follows before sending the First Presentment/1240 to the issuer:
• Moves the Mastercard contactless account number from DE 2 to PDS 0001 (Mastercard
Mapping Service Account Number), subfield 2 (Account Number).
• Populates DE 2 with the PAN
• Passes through the value received from the acquirer in DE 22, subfield 7.
Global Clearing Management System also logs the mapped transaction to a Mastercard PAN
Mapping Service First Presentment history file. Any acknowledgement reconciliation messages
or reporting created for the acquirer is based on the Mastercard contactless account number.
Any notification reconciliation messages or reporting created for the issuer is based on the
PAN.
If the transaction is rejected for any existing Global Clearing Management System error, Global
Clearing Management System sends the rejected transaction back to the acquirer with the
acquirer’s originally submitted values in DE 2.
Issuers will be allowed to use value A (for Contactless Magnetic Stripe transactions), M (for
Contactless M/Chip transactions), R (for Digital Secure Remote Payment containing EMV data
transactions), S (for Digital Secure Remote Payment containing UCAF data transactions or
Card on File, Electronic Commerce tokenization) or T (for Card on File tokenization) for
chargebacks and retrieval requests.

Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration

Chargeback/1442 Messages through the Mastercard Contactless Mapping Service
The issuer populates DE 2 (Primary Account Number [PAN]) with the PAN in all retrieval and
chargeback messages.
In addition, for First Chargeback/1442 and Arbitration Chargeback/1442 messages, the issuer
must also populate DE 22 (Point of Service Data Code), subfield 7 (Card Data: Input Mode)
with A or M. This value is needed to indicate that Global Clearing Management System must
map the PAN in DE 2 to a Mastercard contactless account number.
For First Chargeback/1442 and Arbitration Chargeback/1442 messages, Global Clearing
Management System attempts to match the PAN in DE 2 to the Mastercard PAN Mapping
Service First Presentment history file if DE 22, subfield 7 is present and contains a value of A or
M.
Global Clearing Management System attempts to match to the history file using the following
fields.

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 Mastercard Contactless and PAN Mapping Service
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442 Messages
through the Mastercard Contactless Mapping Service

Matching Criteria for Retrieval Requests and Chargebacks

Global Clearing Management System

attempts to match this combination of fields To this combination of fields in the
in the retrieval request or chargeback Mastercard PAN Mapping Service First
message… Presentment history file
DE 2 (Primary Account Number) PAN

DE 31 (Acquirer Reference Data) DE 31

DE 30 (Amounts, Original) subfield 1 (Original DE 4 (Amount, Transaction)

Amount, Transaction)

PDS 0149 (Currency Codes, Amounts, Original), DE 49 (Currency Code, Transaction)

subfield 1 (Currency Code, Original Transaction
Amount)

DE 12 (Date and Time, Local Transaction), subfield DE 12, subfield 1

1 (Date)

If the chargeback message does not contain DE 22, subfield 7 with a value of A, C or M,
Global Clearing Management System assumes that it did not perform the Mastercard PAN
Mapping Service at the time of the First Presentment/1240. Global Clearing Management
System continues processing the Retrieval Request/1644, First Chargeback/1442, or
Arbitration Chargeback/1442 as it normally does and delivers the message to the acquirer
with the PAN in DE 2 and the issuer’s submitted values in DE 22. If, upon receipt, the acquirer
does not recognize the transaction because the First Presentment/1240 had actually been
submitted with a Mastercard contactless account number, the acquirer must follow existing
dispute resolution rules and procedures that apply when the PAN is not recognized.
If Global Clearing Management System does successfully match the message to the
Mastercard PAN Mapping Service First Presentment history file, and the message is a First
Chargeback/1442, Global Clearing Management System validates that the chargeback
amount is greater than the regional limit for reason code 4837.
If the mapped retrieval or chargeback transaction contains no errors, Global Clearing
Management System modifies the data as follows before sending the message to the
acquirer:
• Move the PAN from DE 2 to PDS 0001, subfield 2
• Populate DE 2 with the contactless account number
• Populate DE 94 (Transaction Originator Institution ID Code) and DE 33 (Forwarding
Institution ID Code) with customer ID information related to the contactless account
number
• Move the value originally submitted by the acquirer in the First Presentment/1240 message
to DE 22, subfield 7 if the issuer provided the other DE 22 subfields in the retrieval or
chargeback

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 Mastercard Contactless and PAN Mapping Service
Processing Second Presentment/1240 Messages through the Mastercard Contactless Mapping Service

When Global Clearing Management System logs the Retrieval Request/1644, First
Chargeback/1442, or Arbitration Chargeback/1442 message to its existing Retrieval or
Chargeback history files, it logs both the PAN and the Mastercard contactless account number.
Any acknowledgement reconciliation messages or reports created for the issuer are based on
the PAN. Any notification reconciliation messages or reports created for the acquirer are based
on the Mastercard contactless account number.

Processing Second Presentment/1240 Messages through the Mastercard Contactless

Mapping Service
Details about the processing of Second Presentment/1240 messages through the Mastercard
contactless Mapping Service are described here.
The acquirer populates DE 2 (Primary Account Number [PAN]) with the Mastercard contactless
account number in the Second Presentment/1240. Global Clearing Management System
attempts to match all Second Presentment/1240 messages to the existing Chargeback history
file as usual. If Global Clearing Management System is unable to match the message to the
Chargeback history file, it rejects the Second Presentment/1240.
If Global Clearing Management System successfully matches the Second Presentment/1240 to
the Chargeback history file, and the Chargeback history file indicates that DE 2 contains a
Mastercard contactless account number, Global Clearing Management System maps it to the
PAN and uses the PAN in its processing. For example, it uses business services in which the
issuer of the (PAN) participates, and it delivers the transaction to the endpoint associated with
the issuer of the PAN as opposed to the Mastercard contactless account number. If the
transaction contains no errors, Global Clearing Management System modifies the data as
follows before sending the Second Presentment/1240 to the issuer:
• Move the Mastercard contactless account number from DE 2 to PDS 0001 (Mastercard
Mapping Service Account Number), subfield 2 (Account Number)
• Populate DE 2 with the PAN
Any acknowledgement reconciliation messages or reports created for the acquirer are based
on the Mastercard contactless account number. Any notification reconciliation messages or
reports created for the issuer are based on the PAN.

Processing Fee Collection (Retrieval Fee Billing)/1740 Messages through the

Mastercard Contactless Mapping Service
A Fee Collection (Retrieval Fee Billing)/1740 message is used only when an issuer has
requested a hardcopy retrieval document, the acquirer fulfills the request through MasterCom,
and the acquirer seeks to collect the delivery fee from the issuer as reimbursement for costs
associated with delivering the hardcopy document to the issuer.
The acquirer populates DE 2 (Primary Account Number [PAN]) with the service-eligible
Mastercard contactless account number in the Fee Collection (Retrieval Fee Billing)/1740.
Global Clearing Management System validates the contents of DE 2 against IPM MPE table
IP0040T1, as usual. If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2
contains a service-eligible Mastercard contactless account number, Global Clearing
Management System maps the Mastercard contactless account number in DE 2 to the PAN
using the Mastercard PAN Mapping Service First Presentment history file.

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 Mastercard Contactless and PAN Mapping Service
Summary of the Contents of Elements Related to the Mastercard Contactless Mapping Service

If Global Clearing Management System cannot match the Fee Collection (Retrieval Fee Billing)/
1740 message to the Mastercard PAN Mapping Service First Presentment history file, Global
Clearing Management System rejects the transaction.
After successfully mapping the Mastercard contactless account number to a PAN, Global
Clearing Management System uses the PAN in its processing. For example, it uses business
services in which the issuer of the PAN participates, and it delivers the transaction to the
endpoint associated with the issuer of the PAN, as opposed to the Mastercard contactless
account number. If the transaction contains no errors, Global Clearing Management System
modifies the data as follows before sending the message to the issuer:
• Move the Mastercard contactless account number from DE 2 to private data subelement
(PDS) 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number)
• Populate DE 2 with the PAN
Any acknowledgement reconciliation messages or reports created for the acquirer are based
on the Mastercard contactless account number. Any notification reconciliation messages or
reports created for the issuer are based on the PAN.

Summary of the Contents of Elements Related to the Mastercard Contactless

Mapping Service
This table summarizes the contents of the elements that are affected when Global Clearing
Management System performs the Mastercard contactless Mapping Service.

Clearing PDS 0001,

Message Scenario DE 2 Subfield 2 DE 22, subfield 7 DE 94 and DE 33
First From acquirer to contactless Not present A or M As provided by
Presentment/ Mastercard account acquirer
1240 number

Retrieval From issuer to PAN Not present As provided by As provided by

Request/1644 Mastercard issuer issuer

From Mastercard contactless PAN A or M, if issuer Customer IDs

to acquirer account provided other DE associated with
number 22 values in the the contactless
retrieval account number

Fee Collection From acquirer to contactless Not present DE 22 not in As provided by

(Retrieval Fee Mastercard account message layout acquirer
Billing)/1740 number

From Mastercard PAN contactless DE 22 not in As provided by

to issuer account message layout acquirer
number

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Global Clearing Management System Reference Manual • 15 October 2019 135
 Mastercard Contactless and PAN Mapping Service
Interchange Compliance Processing

Clearing PDS 0001,

Message Scenario DE 2 Subfield 2 DE 22, subfield 7 DE 94 and DE 33
First From Mastercard contactless PAN A, C, or M, if Customer IDs
Chargeback/ to acquirer account issuer provided associated with
1442 number other DE 22 the contactless
values in the account number
chargeback

Second From acquirer to contactless Not present A or M As provided by

Presentment/ Mastercard account acquirer
1240 number

From Mastercard PAN contactless A or M As provided by

to issuer account acquirer
number

Arbitration From issuer to PAN Not present A or M As provided by

Chargeback/ Mastercard issuer
1442
From Mastercard contactless PAN A, C, or M, if Customer IDs
to acquirer account issuer provided associated with
number other DE 22 the contactless
values in the account number
chargeback

Interchange Compliance Processing

Mastercard performs the Mastercard contactless Mapping Service for First Presentment/1240
messages, which are analyzed during the interchange compliance process.
As described in the Authorization Manual, transactions for which the Mastercard
Authorization System performs the Mastercard PAN Mapping Service do not contain magnetic
stripe data when they are sent to the issuer and logged by the Mastercard Network.
Therefore, U.S.-acquired First Presentment/1240 messages for which Mastercard performs the
Mastercard PAN Mapping Service may not pass the magnetic stripe quality test within the
interchange compliance process. This test requires validation of the magnetic stripe presence
at the time of the authorization for specific incentive interchange programs, unless the
transaction is exempt.
Mastercard modified the interchange compliance magnetic stripe quality test to exempt
transactions in which PDS 0001 is present in the IPM First Presentment/1240 message. The
presence of PDS 0001 indicates that Mastercard performed the Mastercard PAN Mapping
Service; and therefore, magnetic stripe data is not expected to be present in the authorization
message.

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 Mastercard Contactless and PAN Mapping Service
MasterCom Processing

MasterCom Processing
All customers have been assigned a MasterCom endpoint to help with the routing of retrieval
and chargeback documentation through the MasterCom system.
The MasterCom system is PC-based and electronically transmits a copy of the requested TID
through the MasterCom server. The result is a clear copy that the issuer and the cardholder
can read, and proof for the acquirer that it fulfilled the request. Once again, Mastercard
strongly recommends that customers use the MasterCom system to ensure timely delivery of
items and to retain subsequent chargeback and presentment rights.

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Global Clearing Management System Reference Manual • 15 October 2019 137
 Mastercard Digital Enablement Service

Chapter 6 Mastercard Digital Enablement Service

This chapter describes the Mastercard Digital Enablement Service (MDES) as it pertains to the
clearing process.

Overview of Mastercard Digitial Enablement Service....................................................................139

Mastercard Digital Enablement Service Process Flow....................................................................139
Using the MPE to Identify Issuer Account Ranges Participating in the Mastercard Digital
Enablement Service.....................................................................................................................143
Identifying Mastercard Digital Enablement Service Mapping within IPM Messages.......................143
Contents of PDS 0001 (Mastercard Mapping Service Account Number).................................. 143
PDS 0001, Subfield 1 (Account Number Type).................................................................... 144
PDS 0001, Subfield 2 (Account Number)............................................................................145
Processing First Presentment/1240 Messages through the Mastercard Digital Enablement
Service Mapping Service..............................................................................................................145
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442
Messages through the Mastercard Digital Enablement Service.....................................................146
Processing Second Presentment/1240 Messages through the Mastercard Digital Enablement
Service........................................................................................................................................ 148
Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement Service.... 148
Summary of the Contents of Elements Related to the Mastercard Digital Enablement Service......149
Interchange Compliance Processing............................................................................................ 150
MasterCom Processing................................................................................................................151

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 Mastercard Digital Enablement Service
Overview of Mastercard Digitial Enablement Service

Overview of Mastercard Digitial Enablement Service

MDES is a secure, globally-scalable digitization platform for the management, generation, and
provisioning of digital payment credentials onto mobile devices, PCs, servers, and other form
factors. MDES provides simpler, more secure digital payment experiences.
MDES was developed to facilitate the financial industry transition from consumer account
credentials stored on payment cards to digital credentials provisioned into mobile devices.
These digitized credentials enable consumers to perform payments via existing contactless
point-of-sale (POS) and other POS systems and via new remote payment methods, such as in-
app payments.
MDES technology has been enhanced to allow the digitization of cardholder credentials stored
on servers, facilitating more secure browser-based electronic commerce (e-commerce) and in-
app transactions.

Mastercard Digital Enablement Service Process Flow

Mastercard maintains a PAN mapping database that maps tokens to PANs.This database is
used by both the Authorization and Clearing Platforms, so that the acquirer can always
process using the token and the issuer can always process using the PAN.
The following explains the dual message system process flow when a transaction is generated
using a token.
1. The cardholder initiates a transaction with a token in one of the following ways:
– Taps a device to a contactless reader at a point-of-sale (POS) terminal.
– Initiates a Digital Secure Remote Payment (DSRP) with a mobile wallet or web-based
payment application that uses MDES.
– Uses a device provisioned with a token that is able to leverage the magnetic stripe
reader at a POS terminal (for dynamic magnetic stripe data transactions).
– Initiates an e-commerce transaction with a payment application ot a web site hosted by
a Digital Activity Customer (DAC), such as a wallet peovider or token requestor, that
uses MDES static tokens that do not have dynamic payment credentials.
– Initiates a credential-on-file transaction.
For contactless or dynamic magnetic stripe data, the token and associated chip or dynamic
magnetic stripe data are transmitted to the terminal, and subsequently, the merchant and
the acquirer. For DSRP, the token and associated chip data are transmitted to the merchant
or merchant payment gateway, which forwards the data to the acquirer. For static tokens,
the DAC, when the DAC is not a merchant, provides the cardholder’s token to the
merchant or the merchant payment gateway. The merchant or merchant payment
gateway forwards the data to the acquirer.
2. The acquirer initiates an authorization request containing the token and chip or dynamic
magnetic stripe data and sends it to the Mastercard Network. The acquirer will provide DE

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 Mastercard Digital Enablement Service
Mastercard Digital Enablement Service Process Flow

22 (POS Entry Mode), subfield 1 (POS Terminal PAN Entry Mode) with one of the following
values:
– 07 (PAN auto-entry via contactless M/Chip)
– 09 (PAN/Token entry via electronic commerce containing DSRP cryptogram in DE 55
[Integrated Circuit Card System-Related Data])
– 10 (Credential on File)
– 81 (PAN/Token entry via electronic commerce with optional AAV or DSRP cryptogram in
UCAF)
– 90 (PAN auto-entry via magentic stripe)—The full track data has been read from the
data encoded 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.
– 91 (PAN auto-entry via contactless magnetic stripe)—The full track data has been
transmitted by the acquirer within the authorization request in DE 35 or DE 45 and
forwarded to the issuer without alteration or truncation.
For electronic commerce (e-commerce) transactions using static tokens, the acquirer will
initiate an authorization request containing the token and DE 22, subfield 1 with one of
the following values:
– 81
– 82 (PAN auto-entry via server [issuer, acquirer, or third party vendor system])

NOTE: For static tokens, cryptography data will not be present in transactions.
3. For secure element and Mastercard Cloud-Based Payment tokens, the Authorization
Platform performs either chip or dynamic CVC 3 data pre-validation, and maps the token
to the primary account number. For static tokens, the Authorization Platform maps the
token to the PAN.
4. If the cryptography validation and PAN mapping are successful, the Authorization Platform
then sends the issuer the authorization request.
5. The issuer responds with an authorization response message, and the Authorization
Platform maps the PAN back to the token and provides the response to the acquirer.
6. The acquirer forwards the token and other authorization response information to the
contactless terminal or merchant payment gateway.
7. The Authorization Platform logs all authorizations for which it performed MDES services
and makes this information available to the Clearing Platform.
8. The acquirer sends the first presentment message to the Clearing Platform containing the
token in DE 2 (Primary Account Number). The acquirer provides DE 22, subfield 7 (Card
Data: Input Mode) with one of the following values:
– A (PAN auto-entry via contactless magnetic stripe)
– B (Magnetic stripe reader inout; track data captured and passed unaltered)
– M (PAN auto-entry via contactless M/Chip)
– R (PAN entry via electronic commerce, including remote chip)
– S (Electronic commerce)
For static tokens, the acquirer provides DE 22, subfield 7 with one of the following values:

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 Mastercard Digital Enablement Service
Mastercard Digital Enablement Service Process Flow

– 7 (Credential on file)
– S (Electronic commerce)
– T (PAN auto-entry via server [issuer, acquirer, or third party vendor system])
9. The Clearing Platform maps the token to the PAN using either the authorization logs or
the PAN mapping database and sends the first presentment to the issuer containing:
– DE 2 with the cardholder’s PAN
– DE 14 (Data, Expiration)—If provided on a presentment from the acquirer, DE 14 will
not be present in the presentment message to the issuer when MDES has been applied.
– DE 22, subfield 7 with the value provided by the acquirer.
The Clearing Platform no longer converts values, but passes through these values.
– PDS 0001 (Mastercard Mapping Service Account Number), subfield 1 (Account Number
Type) with one of the following values:
– C (C followed by a space), indicating that subfield 2 (Account Number) contains the
MDES secure element device token used at the point of sale. The account range is
owned by an issuer. Mapping was based on the authorization log.
– CC (value CC), indicating that subfield 2 contains the MDES secure element device
token used at the point of sale. The account range is owned by an issuer. Mapping
was based on a source other than the authorization log.
– H (value H followed by a space), indicating that subfield 2 contains the MDES
Cloud-Based Payments token device account number used at the point of sale. The
account range is owned by an issuer. Mapping was based on the authorization log.
– HC (value HC), indicating that subfield 2 contains the MDES Cloud-Based Payments
token device account number used at the point of sale. The account range is owned
by an issuer. Mapping was based on a source other than the authorization log.
PDS 0001, subfield 2 (Account Number) contains the token.
For static tokens, PDS 0001, subfield 1 will be the following:
– O (O followed by a space), indicating that subfield 2 contains the MDES Card on File
token submitted by the acquirer. The account range is owned by Mastercard.
Mapping was based on the authorization log.
– OC, indicating that subfield 2 conatins the MDES Card on File token submitted by
the acquirer. The account range is owned by Mastercard. Mapping was based on a
source other than the authorization log.
PDS 0001, subfield 2 contains the token.
– PDS 0058 (Token Assurance Level) (if applicable)
– PDS 0059 (Token Requestor ID)
– PDS 0207 (Wallet Identifier) (if applicable)
On a first presentment, if there is no match on the authorization logs or PAN mapping
database for the token, the Clearing Platform will reject the first presentment with existing
error number 2358 (DE2 PRIMARY ACCOUNT NUMBER [PAN] INVALID. THE PAN
MAPPING SERVICE CANNOT MAP DE2 TO ANOTHER ACCOUNT NUMBER).
10. Issuers send subsequent retrieval and chargeback messages containing the cardholder’s
PAN in DE 2. For all Retrieval Request/1644 messages, the Clearing Platform attempts to

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 Mastercard Digital Enablement Service
Mastercard Digital Enablement Service Process Flow

match the PAN in DE 2 to the MDES First Presentment history file. For First Chargeback/
1442 and Arbitration Chargeback/1442 messages, the Clearing Platform attempts to
match the PAN in DE 2 to the MDES First Presentment history file. If a match is found, the
Clearing Platform will map the cardholder’s PAN to the token before sending the message
to the acquirer. Acquirers will receive retrieval requests or chargeback messages that have
had MDES performed with the following:
– DE 2 with the token
– DE 22, subfield 7 with the original value provided by the acquirer in the first
presentment
– PDS 0001, subfield 1, value TC (Subfield 2 contains a PAN. Mapping was based on a
source other than the authorization logs.); PDS 0001, subfield 2 containing the
cardholder’s PAN
– PDS 0058 (Token Assurance Level) (if applicable)
– PDS 0059 (Token Requestor ID)
– PDS 0207 (Wallet Identifier) (if applicable)
If DE 2 in the Retrieval Request/1644 message or First Chargeback/1442 message cannot
be matched to a First Presentment/1240 message in the MDES First Presentment History
File, the Clearing Platform assumes that it did not perform MDES at the time of the First
Presentment/1240 message. The Clearing Platform continues processing the Retrieval
Request/1644 message, First Chargeback/1442 message, or Arbitration Chargeback/1442
message and delivers the message to the acquirer with the PAN in DE 2. If, upon receipt,
the acquirer does not recognize the transaction because the First Presentment/1240
message had actually been submitted with an MDES token, the acquirer must follow
existing dispute resolution rules and procedures that apply when the PAN is not
recognized.
11. Within second presentments, the acquirer provides the token in DE 2. The Clearing
Platform attempts to match all Second Presentment/1240 messages to the existing
Chargeback history file. If the Clearing Platform is unable to match the message to the
Chargeback history file, it rejects the Second Presentment/1240 message. If the Clearing
Platform successfully matches the Second Presentment/1240 message to the Chargeback
history file, and the Chargeback history file indicates that DE 2 contains an MDES token,
the Clearing Platform maps it to the PAN and uses the PAN in its processing. The Clearing
Platform sends the Second Presentment/1240 message to the issuer containing:
– DE 2 with the cardholder’s PAN
– DE 22, subfield 7 with the value provided by the acquirer
– PDS 0001, subfield 1 with one of the following values:
– C (followed by a space)
– CC
– H (H followed by a space)
– HC
– O (O followed by a space)
– OC
– PDS 0058 (if applicable)

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 Mastercard Digital Enablement Service
Using the MPE to Identify Issuer Account Ranges Participating in the Mastercard Digital Enablement Service

– PDS 0059
– PDS 0207 (if applicable)

Suspended or Deactivated Tokens

When a token has been suspended or deactivated from use, Mastercard will permit these
transactions to pass through to the issuer for clearing. If the cardholder disputes the
transaction, the issuer can chargeback under message reason code 4808 (Requested/Required
Authorization Not Obtained). This processing is consistent with that applied for non-token
transactions. Mastercard will not block the transaction in clearing but rather allow the dispute
resolution process to occur. For transactions including a token, Mastercard will not enforce
error number 2358 (DE2 PRIMARY ACCOUNT NUMBER [PAN] INVALID. THE PAN MAPING
SERVICE CANNOT MAP DE2 TO ANOTHER ACCOUNT NUMBER) and will allow the
deactivated or suspended tokens to pass through to the issuer for clearing.

Using the MPE to Identify Issuer Account Ranges Participating in the

Mastercard Digital Enablement Service
The IPM MPE table IP0040T1—Issuer Account Range—contains the Mapping Service Indicator
field. This field identifies issuer account ranges that require MDES with value C (Mastercard
Digital Enablement Service Account Range).
Mastercard adds the applicable MDES token account ranges to the IPM MPE before
generating tokens for use in smart devices. The IPM MPE file contains valid Global Clearing
Management System Product IDs, country codes, and other fields necessary for processing for
these account ranges. They are assigned to participate in all the default interregional,
intraregional, and intracountry business services that are relevant to their assigned country
codes.

NOTE: If an issuer account range contains a value of C in the Mapping Service Indicator field
in the IPM MPE, acquirers must send ALL transactions involving this issuer account range to
Mastercard for authorization and clearing because only the Mastercard systems contain the
data needed to map an MDES token to a PAN. Transactions processed in an On-Us or
intraprocessor mode will not have access to this mapping data.

Identifying Mastercard Digital Enablement Service Mapping within

IPM Messages
This section identifies MDES mapping within IPM messages.

Contents of PDS 0001 (Mastercard Mapping Service Account Number)

The Clearing Platform provides PDS 0001 (Mastercard Mapping Service Account Number) in
any First Presentment/1240, Retrieval Request/1644, Retrieval Request Acknowledgement/
1644, Fee Collection (Retrieval Fee Billing, Handling Fees, and Other than Retrieval Fee Billing/

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 Mastercard Digital Enablement Service
PDS 0001, Subfield 1 (Account Number Type)

Handling Fees)/1740, First Chargeback/1442, Second Presentment/1240, or Arbitration

Chargeback/1442 message in which it maps between an MDES token and a PAN.
This element indicates to the receiver of the message that the Clearing Platform performed
the MDES PAN mapping service for the transaction, and therefore, the sender of the message
has processed the transaction using a different value in DE 2 (Primary Account Number [PAN]).
PDS 0001 is for information only. The receiver of the message must not retain and return PDS
0001 in future life cycle messages, although customers may choose to store and use it within
their internal systems to help resolve processing questions that may occur.
PDS 0001 contains the following two subfields.

Number Name Description

1 Account Number Type This subfield indicates whether subfield 2 contains an
MDES token or a PAN. It also indicates whether the
Clearing Platform performed MDES PAN mapping using
authorization logs or another source.
2 Account Number In messages received by issuers, this subfield contains the
MDES token and DE 2 contains the PAN.
In messages received by acquirers, this subfield contains
the PAN and DE 2 contains the MDES token.

PDS 0001, Subfield 1 (Account Number Type)

Technical details about PDS 0001 (Mastercard Mapping Service Account Number), subfield 1
(Account Number Type).
Position 1 of this subfield contains the following:
• A value of C if the number in subfield 2 is an MDES secure element token
• Value H if the number is in subfield 2 is an MDES Cloud-Based Payments token
• A value of O if the number in subfield 2 is a static token
• The value T if the account number in subfield 2 is a PAN
Position 2 of this subfield contains a space if the Clearing Platform performed the mapping
service according to the authorization logs. It contains a C if the Clearing Platform performed
the mapping service according to a source other than the authorization logs (This position will
contain a C in all retrieval and chargeback messages).
Values for this subfield are listed in the following table.

Value Description
C Space Subfield 2 contains the MDES token used at the point of sale. The account range is
owned by an issuer. Mapping was based on the authorization log.

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 Mastercard Digital Enablement Service
PDS 0001, Subfield 2 (Account Number)

Value Description
CC Subfield 2 contains the MDES token used at the point of sale. The account range is
owned by an issuer. Mapping was based on a source other than the authorization log.

H Space Subfield 2 contains the MDES token used at the point of sale. The account range is
owned by an issuer. Mapping was based on the authorization log.

TC Subfield 2 contains a PAN. Mapping was based on a source other than the
authorization logs.

O Subfield 2 contains the MDES Card on File token submitted by the acquirer. The
account range is owned by Mastercard. Mapping was based on the authorization log..

OC Subfield 2 contains the MDES Card on File token submitted by the acquirer. The
account range is owned by Mastercard. Mapping was based on a source other than the
authorization log.

PDS 0001, Subfield 2 (Account Number)

PDS 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number)
technical details are listed here.
Subfield 2 contains a token or a PAN. When issuers receive PDS 0001, subfield 2 always
contains a token. When acquirers receive PDS 0001, subfield 2 always contains a PAN.
This subfield is 6–19 digits in length.

Processing First Presentment/1240 Messages through the Mastercard

Digital Enablement Service Mapping Service
When processing a First Presentment/1240, the Clearing Platform validates the contents of DE
2 (Primary Account Number [PAN]) against IPM MPE table IP0040T1, as usual.
If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a service-
eligible MDES token (indicated by a value of C in the Mapping Service Indicator field):
1. The Clearing Platform first attempts to match to the MDES authorization log according to
the combination of MDES token and Banknet Reference Number and Date. The MDES
token is in DE 2. The Banknet Reference Number and Date are present in DE 63
(Transaction Life Cycle ID), subfield 2 (Trace ID) in the IPM First Presentment/1240.
2. If the Clearing Platform does not find a match in the MDES authorization log, or if DE 63
is not present in the First Presentment/1240, the Clearing Platform attempts to match to
the PAN Mapping database using the MDES token in DE 2.
3. If the Clearing Platform cannot match the First Presentment/1240 message to either the
MDES authorization log or the PAN mapping database, the Clearing Platform rejects the
transaction.

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 Mastercard Digital Enablement Service
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442 Messages
through the Mastercard Digital Enablement Service

4. The Clearing Platform will validate and when incorrect, reject the First Presentment/1240
message containing PDS 0052 (Electronic Commerce Security Level Indicator), subfield 1
(Security Protocol), subfield 2 (Cardholder Authentication), and subfield 3 (UCAF
Collection Indicator) values if they do not match the correct security level indicator (SLI)
value determined during Authorization processign.
After successfully mapping the MDES token to the PAN, the Clearing Platform uses the PAN in
its processing. For example, it uses business services in which the issuer of the PAN
participates, and it delivers the transaction to the endpoint associated with the issuer of the
PAN, as opposed to the MDES token. If the transaction contains no errors, the Clearing
Platform modifies the data as follows before sending the First Presentment/1240 to the issuer:
• Moves the MDES token from DE 2 to PDS 0001 (Mastercard Mapping Service Account
Number), subfield 2 (Account Number).
• Populates DE 2 with the PAN.
• Passes through the value received from the acquirer in DE 22 (POS Entry Mode), subfield 7
(Card Data: Input Mode).
The Clearing Platform also logs the mapped transaction to a MDES First Presentment history
file. Any acknowledgement reconciliation messages or reporting created for the acquirer is
based on the MDES token. Any notification reconciliation messages or reporting created for
the issuer is based on the PAN.
If the transaction is rejected for any existing Clearing Platform error, the Clearing Platform
sends the rejected transaction back to the acquirer with the acquirer’s originally submitted
values in DE 2 and DE 22.

Processing Retrieval Request/1644, First Chargeback/1442, and

Arbitration Chargeback/1442 Messages through the Mastercard Digital
Enablement Service
For all Retrieval Request/1644 messages, the Clearing Platform attempts to match the PAN in
DE 2 (Primary Account Number [PAN]) to the MDES First Presentment history file.
For First Chargeback/1442 and Arbitration Chargeback/1442 messages, the Clearing Platform
attempts to match the PAN in DE 2 to the MDES First Presentment history file. If a match is
found, the Clearing Platform will map the cardholder’s PAN to the token before sending the
message to the acquirer.
The Clearing Platform attempts to match to the history file using the following fields.
Matching Criteria for Retrieval Requests and Chargebacks

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 Mastercard Digital Enablement Service
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442 Messages
through the Mastercard Digital Enablement Service

The Clearing Platform attempts to match this To this combination of fields in the MDES
combination of fields in the retrieval request First Presentment history file
or chargeback message...
DE 2 (Primary Account Number) PAN
DE 31 (Acquirer Reference Data) DE 31
DE 30 (Amounts, Original) subfield 1 (Original DE 4 (Amount, Transaction)
Amount, Transaction)
PDS 0149 (Currency Codes, Amounts, Original), DE 49 (Currency Code, Transaction)
subfield 1 (Currency Code, Original Transaction
Amount)
DE 12 (Date and Time, Local Transaction), subfield DE 12, subfield 1
1 (Date)

If the mapped retrieval or chargeback transaction contains no errors, the Clearing Platform
modifies the data as follows before sending the message to the acquirer:
• Move the PAN from DE 2 to PDS 0001 (Mastercard Mapping Service Account Number),
subfield 2 (Account Number)
• Populate DE 2 with the MDES token
• Populate DE 94 (Transaction Originator Institution ID Code) and DE 33 (Forwarding
Institution ID Code) with customer ID information related to the MDES token
When the Clearing Platform logs the Retrieval Request/1644, First Chargeback/1442, or
Arbitration Chargeback/1442 message to its existing Retrieval or Chargeback history files, it
logs both the primary account number and the MDES token. Any acknowledgement
reconciliation messages or reports created for the issuer are based on the PAN. Any
notification reconciliation messages or reports created for the acquirer are based on the MDES
token.
If DE 2 in the Retrieval Request/1644 message or First Chargeback/1442 message cannot be
matched to a First Presentment/1240 message in the MDES First Presentment history file, the
Clearing Platfrom assumes that it did not perfrom MDES at the time of the Fist Presentment/
1240 message. The Clearing Platform continues processing the Retrieval Request/1644
message, First Chargeback/1442 message, or Arbitration Chargebaxk/1442 message and
delivers the message to the acquirer with the PAN in DE 2. If, upon receipt, the acquirer does
not recognize the trasnaction because the First Presentment/1240 message had actually been
submitted with an MDES token, the acquirer must follow existing dispute resolution rules and
procedures that apply when the PAN is not recognized.

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 Mastercard Digital Enablement Service
Processing Second Presentment/1240 Messages through the Mastercard Digital Enablement Service

Processing Second Presentment/1240 Messages through the

Mastercard Digital Enablement Service
Details about the processing of Second Presentment/1240 messages through MDES are
described here.
The acquirer populates DE 2 (Primary Account Number [PAN]) with the MDES token in the
Second Presentment/1240. The Clearing Platform attempts to match all Second Presentment/
1240 messages to the existing Chargeback history file. If the Clearing Platform is unable to
match the message to the Chargeback history file, it rejects the Second Presentment/1240.
If the Clearing Platform successfully matches the Second Presentment/1240 to the
Chargeback history file, and the Chargeback history file indicates that DE 2 contains an MDES
token, the Clearing Platform maps it to the PAN and uses the PAN in its processing. For
example, it uses business services in which the issuer of the (PAN) participates, and it delivers
the transaction to the endpoint associated with the issuer of the PAN as opposed to the MDES
token. If the transaction contains no errors, the Clearing Platform modifies the data as follows
before sending the Second Presentment/1240 to the issuer:
• Move the MDES token from DE 2 to PDS 0001 (Mastercard Mapping Service Account
Number), subfield 2 (Account Number)
• Populate DE 2 with the PAN
Any acknowledgment reconciliation messages or reports created for the acquirer are based on
the MDES token. Any notification reconciliation messages or reports created for the issuer are
based on the PAN.

Processing Fee Collection/1740 Messages through the Mastercard

Digital Enablement Service
Fee Collection/1740 messages initiated with MDES tokens: The acquirer populates DE 2
(Primary Account Number [PAN]) with the service-eligible MDES token in the Fee Collection/
1740.
The Clearing Platform validates the contents of DE 2 against IPM MPE table IP0040T1, as
usual. If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a
service-eligible MDES token, the Clearing Platform maps the MDES token in DE 2 to the PAN
using the MDES First Presentment history file.
If the Clearing Platform cannot match the Fee Collection/1740 message to the MDES First
Presentment history file, the Clearing Platform rejects the transaction.
After successfully mapping the MDES token to a PAN, the Clearing Platform uses the PAN in
its processing. For example, it uses business services in which the issuer of the PAN
participates, and it delivers the transaction to the endpoint associated with the issuer of the
PAN, as opposed to the MDES token. If the transaction contains no errors, the Clearing
Platform modifies the data as follows before sending the message to the issuer:

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 Mastercard Digital Enablement Service
Summary of the Contents of Elements Related to the Mastercard Digital Enablement Service

• Move the MDES token from DE 2 to PDS 0001 (Mastercard Mapping Service Account
Number), subfield 2 (Account Number)
• Populate DE 2 with the PAN
Any acknowledgement reconciliation messages or reports created for the acquirer are based
on the MDES token. Any notification reconciliation messages or reports created for the issuer
are based on the PAN.
Fee Collection 1740/messages initiated with the PAN: The issuer populates DE 2 with the PAN
in the Fee Collection/1740 message. The Clearing Platform attempts to match the PAN in DE 2
to the MDES First Presentment history file. If a match found, the Clearing Platform will map
the cardholder’s PAN to the MDES token before sending the message to the acquirer. If the
Clearing Platform cannot match the Fee Collection/1740 message to the First Presentment
history file, the Clearing Platform will continue processing the Fee Collection/1740 message as
a non-PAN mapped transaction. DE 2 in the Fee Collection/1740 message to the acquirer will
contain the PAN.

Summary of the Contents of Elements Related to the Mastercard

Digital Enablement Service
This table summarizes the contents of the elements that are affected when the Clearing
Platform performs MDES processing.

Clearing Scenario DE 2 PDS 0001, DE 22, DE 94 and DE

Message Subfield 2 subfield 7 33
First From acquirer Token Not present A, B, M, R, S, As provided by
Presentment/ to Mastercard or T acquirer
1240
From PAN Token A, B, M, R, S, As provided by
Mastercard to or T acquirer
issuer
Retrieval From issuer to PAN Not present As provided by As provided by
Request/1644 Mastercard issuer issuer
From Token PAN A, B, M, R, S, Customer IDs
Mastercard to or T if issuer associated with
acquirer provided other the token
DE 22 values in
the retrieval
Fee Collection From acquirer Token Not present DE 22 not in As provided by
(Retrieval Fee to Mastercard message layout acquirer
Billing)/1740
From PAN Token DE 22 not in As provided by
Mastercard to message layout acquirer
issuer

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 Mastercard Digital Enablement Service
Interchange Compliance Processing

Clearing Scenario DE 2 PDS 0001, DE 22, DE 94 and DE

Message Subfield 2 subfield 7 33
First From issuer to PAN Not present A, B, M, R, S, As provided by
Chargeback/ Mastercard or T issuer
1442
From Token PAN A, B, M, R, S, Customer IDs
Mastercard to or T associated with
acquirer the token
Second From acquirer Token Not present A, B, M, R, S, As provided by
Presentment/ to Mastercard or T acquirer
1240
From PAN Token A, B, M, R, S, As provided by
Mastercard to or T acquirer
issuer
Arbitration From issuer to PAN Not present A, B, M, R, S, As provided by
Chargeback/ Mastercard or T issuer
1442
From Token PAN A, B, M, R, S, Customer IDs
Mastercard to or T associated with
acquirer the token

Interchange Compliance Processing

MDES is performed for First Presentment/1240 messages, which are analyzed during the
interchange compliance process.
As described in the Authorization Manual, transactions for which the Authorization Platform
performs the MDES do not contain magnetic stripe data when they are sent to the issuer and
logged by the Authorization Platform. Therefore, U.S.-acquired First Presentment/1240
messages for which Mastercard performs the MDES may not pass the magnetic stripe quality
test within the interchange compliance process. This test requires validation of the magnetic
stripe presence at the time of the authorization for specific incentive interchange programs,
unless the transaction is exempt.
Mastercard modified the interchange compliance magnetic stripe quality test to exempt
transactions in which PDS 0001 (Mastercard Mapping Service Account Number) is present in
the IPM First Presentment/1240 message. The presence of PDS 0001 indicates that Mastercard
performed a PAN mapping; and therefore, magnetic stripe data is not expected to be present
in the authorization message.

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 Mastercard Digital Enablement Service
MasterCom Processing

MasterCom Processing
All customers have been assigned a MasterCom endpoint to help with the routing of retrieval
and chargeback documentation through the MasterCom system.
The MasterCom system is PC-based and electronically transmits a copy of the requested TID
through the MasterCom server. The result is a clear copy that the issuer and the cardholder
can read, and proof for the acquirer that it fulfilled the request. Once again, Mastercard
strongly recommends that customers use the MasterCom system to ensure timely delivery of
items and to retain subsequent chargeback and presentment rights.

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 Mastercard In Control Platform

Chapter 7 Mastercard In Control Platform

This chapter describes the optional Mastercard In Control processing services as they pertain to
clearing processing.

Overview of the Mastercard In Control Platform..........................................................................153

Mastercard In Control Real Card Spend Control Service...............................................................153
Global Clearing Management System Processing for the Mastercard In Control Platform.............154
Mastercard In Control Mapping Process..................................................................................154

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 Mastercard In Control Platform
Overview of the Mastercard In Control Platform

Overview of the Mastercard In Control Platform

The Mastercard In Control platform is a powerful and flexible system that provides a number
of advanced authorization, transaction routing, and alert notification capabilities designed to
assist issuers in creating new and enhanced payment products for their consumer and
commercial cardholders.
Mastercard In Control fully integrates patented payment technologies with unparalleled global
processing capabilities. With the integration of this capability into Mastercard core processing,
issuers can benefit from cost efficiencies and speed-to-market for new commercial product
development.
With the Mastercard In Control platform, issuers can leverage off-the-shelf solutions and
create customized offerings to meet the needs of their customers.
Among the advanced features issuers can leverage to support their commercial card portfolios
are:
• Enhanced authorization controls that direct how, when, and where cards may be used.
• Personalized real-time communication about transaction activities through a robust alert
functionality.
• Improved levels of security, control, data capture, and traceability on every purchase
through a limited use number feature that allows authorization, spending limits, and
usability controls to be set on a transaction-by-transaction basis.
• Provides enhanced purchase controls for Mastercard commercial cards. In addition to other
capabilities, this service platform allows for the generation of a unique Mastercard In
Control virtual card number for every transaction.
• Provides cardholders the ability to establish spend-control rules for their pre-existing
payment cards to be applied during the authorization process.
Participation in Mastercard In Control is optional.

Mastercard In Control Real Card Spend Control Service

The Mastercard In Control Real Card Spend Control service provides cardholders with the
ability to establish spend control rules for their pre-existing payment cards.
The spend control rules for cardholders’ payment cards:
• Are enforced during the authorization process.
• Can be defined for both card-present and card-not-present transaction environments.
• May result in an alert notification being generated to the cardholder or the transaction
being declined on their behalf (depending on the cardholder’s pre-defined response rules).

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 Mastercard In Control Platform
Global Clearing Management System Processing for the Mastercard In Control Platform

Global Clearing Management System Processing for the Mastercard In

Control Platform
The Mastercard In Control service processes normally in Global Clearing Management System,
with certain exceptions.
• Transactions with the Mastercard In Control virtual card number (VCN) in DE 2 (Primary
Account Number) are rejected back to the acquirer if mapping to the cardholder’s real card
number (RCN) cannot be performed. An example would be an unauthorized, fraudulent
clearing transaction using a Mastercard In Control account number.
• PDS 0001 (Mastercard Mapping Service Account Number) is included in the transaction
messages sent to the issuer when PAN Mapping has been performed. PDS 0001 contains
the Mastercard In Control VCN. PDS 0001 is not included in transaction messages sent to
the acquirer when PAN mapping has been performed.
• Chargebacks are not rejected back to the issuer if there is no mapping for the transaction.
Mastercard attempts to map every chargeback, and if this is not successful, processing will
proceed as usual.
• A Spend Control RCN Switch has been added to the IPM Mastercard Parameter Extract
(MPE) Table IP0040T1—Issuer Account Range. This switch is set to Y when the account
range participates in Mastercard In Control Real Card Spend Control services. Rules for the
Real Card Spend Control service are enforced during the authorization process. Refer to the
Authorization Manual for more information.
For In Control First Presentment/1240 messages:
• If PDS 0502 (Custom Identifier) is present in the First Presentment/1240 message, then the
values will be overlaid with the value OTHER1 in subfield 1 (Custom Identifier Type) and the
Virtual Account Number in subfield 2 (Custom Identifier Detail).
• If PDS 0502 is not present in the First Presentment/1240 message, then PDS 0502 is added
to the message and sent to the issuer. The values are OTHER1 in subfield 1 (Custom
Identifier Type) and the Virtual Account Number in subfield 2 (Custom Identifier Detail).

Mastercard In Control Mapping Process

The mapping processes for both acquirer-initiated and issuer-initiated transactions are
described in the Mapping Process for Acquirer-initiated Transactions and Mapping Process for
Issuer-initiated Transactions tables.
Mastercard supports a virtual card number (VCN) as an optional service for Mastercard In
Control participants. This added layer of security protects issuers and cardholders against the
risk of fraudulent acquisition and use of an Mastercard In Control account number.
Mastercard maps the VCN to the PAN for processing for acquirer-initiated transactions.
Mapping Process for Acquirer-initiated Transactions

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 Mastercard In Control Platform
Mastercard In Control Mapping Process

Stage Description
1. The VCN is sent to the Global Clearing Management System.

2. The Global Clearing Management System maps the VCN to the cardholder PAN.
The PAN is used during the clearing process.
1. The first attempt to match to the mapping service authorization log according to the
combination of VCN, Banknet Reference Number, and Banknet Date.
– VCN is in DE 2 (Primary Account Number [PAN])
– The Banknet Reference Number and Date are present in DE 63 (Transaction Life
Cycle ID), subfield 2 (Trace ID) in First Presentment/1240 messages.
2. If Global Clearing Management System does not find a match in the mapping service
authorization log, or if DE 63 is not present in the First Presentment/1240 message,
Global Clearing Management System attempts to match to the mapping service
database using the VCN and registration flag.
3. If Global Clearing Management System cannot match the First Presentment/1240
message, Global Clearing Management System rejects the transaction.

3. The issuer receives the cardholder’s PAN in DE 2 (Primary Account Number [PAN]) and the
VCN in PDS 0001 (Mastercard Mapping Service Account Number).

Mapping Process for Issuer-initiated Transactions

Stage Description
1. The RCN is sent in DE 2.
This DE 2 account number is used during the clearing process.

2. Clearing recognizes the transaction as a mapped transaction by checking the virtual

presentment history table and maps the cardholder’s PAN to the VCN.

3. The acquirer receives the VCN in DE 2.

NOTE: The acquirer only receives the masked RCN in PDS 0001 (Mastercard
Mapping Service Account Number) for retrieval and chargeback requests.

NOTE: Transactions that contain the VCN in DE 2 and which cannot be mapped are rejected
back to the sender.

When acquirers receive PDS 0001, the subfield 2 (Account Number) always contains a real,
masked card number. The real card number (RCN) will be masked according to PCI guidelines
as follows:
• Display the first six digits

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 Mastercard In Control Platform
Mastercard In Control Mapping Process

• Fill the remaining digits of the real card number with zeros
• Display the final four digits (for example: 1234560000001234 for a 16-digit PAN or
1234560000000001234 for a 19-digit PAN)

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 Private Label Program

Chapter 8 Private Label Program

This section describes the Mastercard Private Label Program that offers customers a superior private
label transaction processing solution.

Overview of the Private Label Program........................................................................................ 158

Private Label Addendum............................................................................................................. 158
Private Label Card Activation Plus Initial Load.............................................................................. 159
Participation in the Private Label Program....................................................................................159

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 Private Label Program
Overview of the Private Label Program

Overview of the Private Label Program

The Mastercard Private Label Program leverages the existing Mastercard payment system
infrastructure to provide efficient authorization, clearing, and settlement services for private
label card transactions, in addition to value-added products and services that issuers may use
in conjunction with their private label programs.
Mastercard has extensive network reach, acceptance, and standardized formats that provide
issuers with a robust network processing solution for private label card transactions, thereby
addressing the infrastructure limitations of a closed-loop processing model.
In addition to providing a superior private label transaction processing solution, the
Mastercard Private Label Program provides issuers with the ability to use many of the world-
class, value-added services offered by Mastercard. Issuers may optionally benefit from the
array of Mastercard risk management solutions, enhanced transaction processing services, and
portfolio performance management expertise to facilitate financial improvement of their
portfolios.
These services are provided exclusively for transactions originating from the approved private
label card portfolios of Mastercard issuers.

Private Label Addendum

Private Label Program participants have conveyed the need to obtain the same data they
receive in their closed-loop processing model when they process transactions through the
Private Label Program. The receipt of this custom data is integral to customers meeting their
business needs as participants in a private label program.
There are two addenda messages that support the Private Label Program:
• Private Label Common Data—supports data fields common to the transaction
• Private Label Line Item Detail—supports data fields specific to the individual items being
purchased and included in the transaction
The Private Label Common Data and Private Label Line Item Detail addenda messages will be
optional for Private Label First Presentment/1240 messages. The Private Label Common Data
addendum message will be conditionally required if the Private Label Line Item Detail
addendum message is provided. In addition, the Private Label Common Data addendum
message must precede the Private Label Line Item Detail addendum message. If the Private
Label Common Data or Private Label Line Item Detail addendum messages are submitted and
rejected, the corresponding First Presentment/1240 message will not be rejected.
Layouts for the Private Label Common Data and Private Label Line Item Detail addendum
messages can be found in the IPM Clearing Formats manual.

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 Private Label Program
Private Label Card Activation Plus Initial Load

Private Label Card Activation Plus Initial Load

Mastercard has expanded the existing card activation at the point-of-sale terminal (POS)
functionality to allow card activation messages to be submitted with an initial load. Customers
can offer this functionality, making private label cards more attractive to their merchants, by
enabling activation of prepaid cards with or without a predefined amount.
Acquirers that want to offer the private label card activation plus initial load functionality must
be able to support and value C09 (Card Activation) for PDS 0043 (Program Registration ID) in
First Presentment/1240 messages.
Private label card issuers that want to offer the private label card activation plus initial load
functionality must be able to support and receive value C09 for PDS 0043 in First
Presentment/1240 messages.

Participation in the Private Label Program

Issuers and acquirers are not required to participate in the Mastercard Private Label Program.
Those issuers and acquirers that choose to participate in the program are required to support
all provisions of the program.

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Global Clearing Management System Reference Manual • 15 October 2019 159
 Clearing Chip Processing Service

Chapter 9 Clearing Chip Processing Service

This chapter describes the optional Clearing Chip Processing Service for issuers that choose the Chip
to Magnetic Stripe Conversion service.

Clearing Chip Processing Service Overview..................................................................................161

Chip to Magnetic Stripe Conversion............................................................................................161

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 Clearing Chip Processing Service
Clearing Chip Processing Service Overview

Clearing Chip Processing Service Overview

Mastercard provides a Clearing Chip Processing service to assist issuers that want to migrate
to Mastercard chip technology while minimizing the impact and cost of upgrading their host
systems and operations. This On-behalf Service allows issuers to take advantage of the latest
chip technology.
Chip to Magnetic Stripe Conversion Service is offered in both the Global Clearing
Management System and Authorization System. For additional information about
Authorization System Chip to Magnetic Stripe Conversion refer to the Authorization Manual.
Clearing and Authorization System On-behalf Services are optional for issuers.

NOTE: Clearing and Authorization System On-behalf Services must be requested individually.

Chip to Magnetic Stripe Conversion

The Chip to Magnetic Stripe Conversion service removes chip-related data in DE 55
(Integrated Circuit Card [ICC] System-related Data) if it is present when DE 14 (Date
Expiration) is greater than or equal to the floor expiration date.
The issuer receives the First Presentment/1240–200 message containing PDS 0071 (Chip to
Magnetic Stripe Conversion Indicator), subfield 1 (On-behalf Service) with a value of 01,
indicating chip to Magnetic Stripe Conversion, and subfield 2 (On-behalf Service) with a value
of C, S, or M (based on value in DE 22 [Point of Service Data Code)]) indicating that the
conversion of the chip transaction to a magnetic stripe transaction has been completed.

The following lists the actions for the chip to Magnetic Stripe Conversion service.

If Chip to Magnetic Stripe Conversion is Y for Then the Global Clearing Management
clearing issuer account range… System will…
DE 55 Remove DE 55

PDS 0071 (Chip to Magnetic Stripe Conversion

Indicator) Will contain
Subfield 1 (On-behalf Service) 01 = Chip to Magnetic Stripe Conversion

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 Clearing Chip Processing Service
Chip to Magnetic Stripe Conversion

Subfield 2 (On-behalf Service) C = Conversion of the Chip transaction to

magnetic transaction has been completed when
DE 22 is 05
S = Conversion of the Chip transaction to
magnetic transaction has been completed when
DE 22 is 07
M = Conversion of the Chip transaction to
magnetic transaction has been completed when
DE 22 is 80

Subfield 3 (On-behalf Service) Blank = No value present

NOTE: The Chip to Magnetic Stripe Conversion service affects issuers only. Acquirers are not
affected by this service.

The Chip to Magnetic Stripe Conversion service is optional for issuers.

Issuers must contact their regional Mastercard representative to request this service and
identify the account range for which the Chip to Magnetic Stripe Conversion service will
support.

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 Extended Decimal Precision Service

Chapter 10 Extended Decimal Precision Service

Conditional Extended Decimal Precision Service provides participating customers with interchange
calculated to six decimal positions for each transaction.

Extended Decimal Precision Service Overview.............................................................................. 164

Extended Decimal Precision Adjustment Amount Determination................................................. 164

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 Extended Decimal Precision Service
Extended Decimal Precision Service Overview

Extended Decimal Precision Service Overview

The Extended Decimal Precision (EDP) service provides participating customers with
interchange calculated to six decimal positions for each transaction. Qualified transactions are
totaled using a defined set of criteria, and then rounded. In the European Union countries, if
the transactions are identified as regulated, the totaled amount is truncated.
Participation in the EDP service is established at the business service arrangement level.
Transactions qualified for the EDP service have the following attributes:
• EDP adjustment amounts are distributed in Fee Collection Messages with a message reason
code of 7827 (Extended decimal precision adjustment amount).
• EDP adjustment amounts are applied to settlement on the next available settlement date.
• Customers receive PDS 0147 (Extended Precision Amounts).
• Customers can select to receive Reconciliation Messages, which provide EDP totals by:
– Debits, Extended Precision Amount in Reconciliation Currency (PDS 0397)
– Credits, Extended Precision Amount in Reconciliation Currency (PDS 0398)
– Amount, Net Extended Precision in Reconciliation Currency (PDS 0399)

NOTE: Regardless of selected reconciliation options, customers receive separate reconciliation

messages 1644-685 (Financial Position Detail) and 1644-688 (Settlement Position Detail) from
GCMS for EDP and non-EDP transactions.

Extended Decimal Precision Adjustment Amount Determination

Once daily, after the last clearing cycle, Mastercard calculates the EDP adjustment amount as
follows.
• For each Transaction Originator (Sender)/Destination (Receiver) Institution ID pair and
reconciliation currency, the amounts in PDS 0146 (Amounts, Transaction Fee), subfield 7
(Amount, Fee, Reconciliation) are summed.
• For each Transaction Originator (Sender)/Destination (Receiver) Institution ID pair and
reconciliation currency, the amounts in PDS 0147 (Extended Precision Amounts), subfield 7
(Interchange Amount, Fee, Reconciliation) are summed.
• The totaled amounts of PDS 0146, subfield 7 are subtracted from the totaled amounts of
PDS 0147, subfield 7 to calculate the EDP adjustment amount in sender and receiver
reconciliation currency.

EDP Adjustment Amount Calculation Example

All transactions in this example have the following characteristics:
• First Presentment/1240 messages
• Transaction currency is EUR
• Sender Reconciliation Currency is EUR

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Global Clearing Management System Reference Manual • 15 October 2019 164
 Extended Decimal Precision Service
Extended Decimal Precision Adjustment Amount Determination

• Receiver Reconciliation Currency is EUR

• Assume 1 EUR = 1.25 USD (mid currency conversion rate)

Sender Receiver
Interchange Interchange
Sender Fee Amount, Receiver Amount,
Amount in Fee, in Fee Amount Fee, in
Recon Recon in Recon Recon
Currency Currency Currency Currency
(PDS 0146, (PDS 0147, (PDS 0146, (PDS 0147,
Transaction Sender Receiver SF 7) SF 7) SF 7) SF 7)
1 Acquirer 1 Issuer 1 -5.00 -5.003987 5.00 5.003987
2 Acquirer 1 Issuer 1 -10.00 -10.001234 10.00 10.001234
3 Acquirer 1 Issuer 1 -20.00 -20.005841 20.00 20.005841
4 Acquirer 2 Issuer 2 -6.00 -6.001223 6.00 6.001223
5 Acquirer 2 Issuer 2 -7.00 -7.003589 7.00 7.003589
6 Acquirer 3 Issuer 1 -8.00 -8.001899 8.00 8.001899
7 Acquirer 2 Issuer 1 -11.00 -11.002651 11.00 11.002651
8 Acquirer 2 Issuer 1 -30.00 -30.003877 30.00 30.003877
9 Acquirer 2 Issuer 1 -40.00 -40.002445 40.00 40.002445
10 Acquirer 4 Issuer 3 -50.00 -50.008511 50.00 50.008511
11 Acquirer 4 Issuer 3 -20.00 -20.007688 20.00 20.007688

EDP Calculation: PDS 0146, subfield 7 and PDS 0147, subfield 7 summed by Sender/Receiver
pairs:

Receiver Receiver
Sender Sender Net Sender Net Receiver Net Net
Net Fee Interchange Adjustment Net Fee Interchange Adjustment
Amount Amount, in Recon Amount Amount, in Recon
in Recon Fee, in Currency in Recon Fee, in Currency
Currency Recon (PDS 0147, Currency Recon (PDS 0147,
(PDS Currency SF 7 minus (PDS Currency SF 7 minus
0146, SF (PDS 0147, PDS 0146, 0146, SF (PDS 0147, PDS 0146,
Sender Receiver 7) SF 7) SF 7) 7) SF 7) SF 7)
Acquirer Issuer 1 -35.00 -35.011062 -0.011062 35.00 35.011062 0.011062
1
Acquirer Issuer 2 -13.00 -13.004812 -0.004812 13.00 13.004812 0.004812
2

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 Extended Decimal Precision Service
Extended Decimal Precision Adjustment Amount Determination

Receiver Receiver
Sender Sender Net Sender Net Receiver Net Net
Net Fee Interchange Adjustment Net Fee Interchange Adjustment
Amount Amount, in Recon Amount Amount, in Recon
in Recon Fee, in Currency in Recon Fee, in Currency
Currency Recon (PDS 0147, Currency Recon (PDS 0147,
(PDS Currency SF 7 minus (PDS Currency SF 7 minus
0146, SF (PDS 0147, PDS 0146, 0146, SF (PDS 0147, PDS 0146,
Sender Receiver 7) SF 7) SF 7) 7) SF 7) SF 7)
Acquirer Issuer 1 -8.00 -8.001899 -0.001899 8.00 8.001899 0.001899
3
Acquirer Issuer 1 -81.00 -81.008973 -0.008973 81.00 81.008973 0.008973
2
Acquirer Issuer 3 -70.00 -70.016199 -0.016199 70.00 70.016199 0.016199
4

Net EDP adjustment of the Acquirer

Net EDP adjustment amount of Acquirer 1 in USD = 0.011062 * 1.25 = 0.013827 = 0.01 USD
(DR)
Net EDP adjustment amount of Acquirer 2 in USD = 0.013785 * 1.25 = 0.017231 = 0.01 USD
(DR)
Net EDP adjustment amount of Acquirer 3 in USD = 0.001899 * 1.25 = 0.002373 = 0.00 USD
(DR)
Net EDP adjustment amount of Acquirer 4 in USD = 0.016199 * 1.25 = 0.020248 = 0.02 USD
(DR)
Net EDP adjustment of the Issuer
Net EDP adjustment amount of Issuer 1 in USD = 0.021934 * 1.25 = 0.027417 = 0.02 USD
(CR)
Net EDP adjustment amount of Issuer 2 in USD = 0.004812 * 1.25 = 0.006015 = 0.00 USD
(CR)
Net EDP adjustment amount of Issuer 3 in USD = 0.016199 * 1.25 = 0.020248 = 0.02 USD
(CR)
The EDP adjustment amounts are reported per Institution ID in Fee Collection Messages,
Message Type Indicator (MTI) = 1740, and Function Code (DE 24) = 783, with Message
Reason Code (DE 25) = 7827.
The Fee Collection Messages are processed through GCMS on the following GCMS Central
Site Business Date.
Using the example above, GCMS builds Fee Collection Messages as follows.

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Global Clearing Management System Reference Manual • 15 October 2019 166
 Extended Decimal Precision Service
Extended Decimal Precision Adjustment Amount Determination

DE 3 (Processing
DE 93 (Transaction Code), SF 1
Destination (Cardholder DE 4 (Amount, DE 49 (Currency Code,
Institution ID Code) Transaction Type) Transaction) Transaction)
Acquirer 1 19 000000000001 840
Acquirer 2 19 000000000001 840
Acquirer 4 19 000000000002 840
Issuer 1 29 000000000002 840
Issuer 3 29 000000000002 840

Balancing Reconciliation Messages to Transactions

• Accumulate financial transactions by selected reconciliation options and currency.
• Sum PDS 0146, subfield 7 debits and match to the debits’ fee amount received in PDS
0392 (Debits, Fee Amounts in Reconciliation Currency).
• Sum PDS 0146, subfield 7 credits and match to the credits’ fee amount received in PDS
0393 (Credits, Fee Amounts in Reconciliation Currency).
• Net PDS 0146, subfield 7 debits and credits and match to the net fee amount received in
PDS 0395 (Amount, Net Fee in Reconciliation Currency).
• Sum PDS 0147, subfield 7 debits and match to the debits’ fee amount received in PDS
0397 (Debits, Extended Precision Amount in Reconciliation Currency).
• Sum PDS 0147, subfield 7 credits and match to the credits’ fee amount received in PDS
0398 (Credits, Extended Precision Amount in Reconciliation Currency).
• Net PDS 0147, subfield 7 debits and credits and match to the net fee amount received in
PDS 0399 (Amount, Net Extended Precision in Reconciliation Currency).

Balance Reconciliation Messages to Clearing Acknowledgement and Notification

Cycle Reports
The net sum of PDS 0394 (Amount, Net Transaction) and PDS 0395 (Amount, Net Fee) will
match to the IP727010-AA Clearing Cycle Acknowledgement and IP727020-AA Clearing
Cycle Notification Reports.

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Global Clearing Management System Reference Manual • 15 October 2019 167
 Business Service

Chapter 11 Business Service

This section defines business service and describes the types of business service options Mastercard
offers.

Definition of Business Service...................................................................................................... 170

Type of Business Service Arrangements....................................................................................... 171
Business-to-Business Business Service..................................................................................... 173
Customer-to-Customer Business Service................................................................................. 173
Intracountry Business Service.................................................................................................. 173
Intercountry Business Service.................................................................................................. 173
Intraregional Business Services................................................................................................ 173
Interregional Business Services................................................................................................ 173
Participating in Business Service Arrangements............................................................................174
Requirements for Customers Participating in Business Service Arrangements.......................... 174
Business Service Features and Qualification Criteria..................................................................... 174
Additional Features for Business Service Arrangements........................................................... 176
Business Service Calendar and Transaction Timeliness........................................................ 176
Interchange Rates and Fees Structure.................................................................................176
Manual Cash Disbursement Accommodation Fee...............................................................176
Procedures for Applying for a Business Service Arrangement....................................................... 177
Identifying Business Service within IPM Messages........................................................................177
Contents of PDS 0158 (Business Activity)................................................................................178
PDS 0158, Subfield 1 (Card Program Identifier).................................................................. 178
PDS 0158, Subfield 2 (Business Service Arrangement Type Code)....................................... 179
PDS 0158, Subfield 3 (Business Service ID Code)................................................................ 179
Account Management System (AMS) Region Codes...................................................... 180
Intraregional ID Codes...................................................................................................180
Interregional ID Codes...................................................................................................181
PDS 0158, Subfield 4 (Interchange Rate Designator).......................................................... 183
Acquirer Creation of the Outbound Message with Business Activity........................................183
Issuer Identification of Business Activity within the Inbound Message..................................... 184
Retrieval Request and Retrieval Fee Billing Transactions........................................................... 184
When Business Service is Submitted by the Customer.............................................................184
Using the MPE to Select the Card Program Identifier and Business Service Information................ 185
Data and Message Content Validation by Global Clearing Management System..................... 189
Step 1: Validate the Elements Used in the Selection Process............................................... 189
Step 1a: Validate Format Requirements.............................................................................. 190

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Global Clearing Management System Reference Manual • 15 October 2019 168
 Business Service

Step 1b: Validate Syntax/Attribute of Selection Elements....................................................190

Step 1c: Validate Content of Selection Elements................................................................ 191
Step 2: Determine Whether the Transaction Requires Business Service Processing...............192
Step 3: Business Service Arrangement Selection................................................................. 193
Step 3a (Standard Process): Retrieve and Match Card Program Identifier and Business
Service Arrangement Participation..................................................................................... 193
Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program Identifier
and Business Service Arrangement Participation.................................................................194
Global Clearing Management System Validation of Business Service Arrangement..................197
Step 4: Validate the Message Reason Code and Reversal Indicator for the Card Program
Identifier/Business Service Arrangement Combination........................................................ 198
Step 5: Validate the Processing Code and Reversal Indicator for the Card Program
Identifier/Business Service Arrangement Combination........................................................ 199
Step 6: Determine Whether IRD Validation is Required for the Transaction......................... 199
Interchange Rate Designator (IRD) Validation.......................................................................... 200
Step 7: Validate the Processing Code and Reversal Indicator for the IRD............................. 200
Step 8: Validate Product Codes for the IRD........................................................................ 201
Step 9: Validate CAB Programs for the IRD.........................................................................202
Step 10: Validate Transaction Currency for the Business Service..........................................203
Step 11: Check for Intracountry Business Service Overrides................................................ 204
Enforcement of Business Service Arrangements...................................................................... 204
Default Business Service Arrangements.............................................................................. 205
Life Cycle Processing Supported by Global Clearing Management System...............................205
Global Clearing Management System Edits, Fee Assignments, and Fee Calculation.................208

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 Business Service
Definition of Business Service

Definition of Business Service

A business service is an arrangement with Mastercard between two or more customers that
defines, in a manner consistent with Mastercard Standards (or the standards of the other
applicable brand), the card program identifier, business rules, and interchange processing
requirements for transactions occurring between the participating customers.
An arrangement can be either mandated by Mastercard Standards or voluntarily entered into
by the participating customers. Business service processing in Global Clearing Management
Service (Global Clearing Management System) supports current mandated arrangements as
well as current and future voluntary arrangements.
Business service functionality provides for flexibility and customization of transaction
processing. The particular processing options and fee structures are based on:
• Mutual participation in the arrangement—both the issuer and acquirer agree to participate
in the business service arrangement.
• The business rules that are defined by Mastercard for the particular business service
arrangement and interchange program.
Mastercard defines a set of qualification criteria and editing rules for each card program
identifier within a business service arrangement. Card program identifiers include any of the
Mastercard family of brands, including, but not limited to, Mastercard, Cirrus, and Maestro.
Mastercard may agree to add additional brands (that are not Mastercard brands) as business
needs dictate. The qualification criteria and editing rules are parameter-based and maintained
in tables to provide for timely updates and to permit implementation of changes outside the
normal Mastercard release schedule.

NOTE: Most major changes, such as changes that affect all customers globally or all customers
within a specific region, will continue to be implemented in a standard release schedule.

In Global Clearing Management System, business services allow customers to customize

interchange rules, options, and fee structures for transactions that involve a given card
program. The customization also may be based on:
• The acquirer’s business country code—the country code associated with the acquiring BIN
involved in the transaction. Mastercard establishes the country codes and includes them on
the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE) file.
• The issuer’s business country code—the country code associated with the issuing account
range involved in the transaction. Mastercard establishes the country codes and includes
them on the IPM MPE.
• The interchange program rules that the particular business service agreement and
interchange program define. These business rules include:
– Specific product identification codes
– Timeliness requirements (such as submission time frames for first presentments)
– Authorization code requirements
– Card acceptor business code (MCC) requirements

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Global Clearing Management System Reference Manual • 15 October 2019 170
 Business Service
Type of Business Service Arrangements

– Processing code requirements

– Other business service and business service ID criteria
The purpose of business service functionality is to:
• Support customers by reducing the development and testing effort required to establish
new business arrangements and interchange programs and rates, thereby allowing
Mastercard to react to changing market situations quickly.
• Support customers in their business relationships with other customers, including
mandated business relationships, such as intraregional and interregional interchange
programs. For example, Global Clearing Management System can assess fees for business
service transactions in local currencies. This can simplify the calculation and reconciliation
of expected fees for customers.

NOTE: For more information about processing cycles, time frames, and thresholds for clearing
transactions, refer to the Processing Cycles and Regulations chapter of the Global Clearing
Management System Reference Manual.

Type of Business Service Arrangements

Business service arrangements may exist at many levels of customer business relationships.
Customers may participate in multiple business service arrangements under a single customer
ID.
There are five types of business service arrangements, each with a defined hierarchy or priority
to determine how the system processes transactions.
All customers participate in at least one intraregional business service arrangement and at
least five interregional business service arrangements. These arrangements consist of the
interchange programs and rates defined by Mastercard (such as International Standard
interchange and International Electronic interchange).
The following are the types of arrangements that Mastercard defines:

Business Service Description System Geography Arrangement

Arrangement Selection Type Code
Hierarchy (PDS 0158s2)
Business-to- An arrangement between First priority None 8
Business all the customers (acquirers
and issuers) that participate
in a given business
initiative. The interchange is
defined by Mastercard. This
business service type has no
geographic or business
region boundaries.

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Global Clearing Management System Reference Manual • 15 October 2019 171
 Business Service
Type of Business Service Arrangements

Business Service Description System Geography Arrangement

Arrangement Selection Type Code
Hierarchy (PDS 0158s2)
Customer-to- An arrangement involving a First priority None 8
Customer pair of customers, or group
of customers (This business
service type has no
geographic or business
region boundaries).

NOTE: If both Business-

to-Business and
Customer-to-Customer
Business Service
arrangements are valid,
then the Customer-to-
Customer Business
Service Arrangement will
have priority over the
Business-to-Business
Service Arrangement.

Intracountry An arrangement involving Second priority Single Country 4

all customers within a
single country.
Intercountry An arrangement involving Third priority Two or more 3
(formerly customers in multiple Countries or
Subregional) countries or business Regions
regions. Participants are not
required to be within a
single business region.
Intraregional An arrangement involving Fourth priority Single Region 2
all customers within a
business region.
Interregional An arrangement involving Fifth priority Two Regions: 1
all customers in different From and To
business regions.

Business service arrangements are established in accordance with local laws and regulations.
For questions about participation in, or the hierarchy of business arrangement qualification,
please contact your Mastercard representative.

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Global Clearing Management System Reference Manual • 15 October 2019 172
 Business Service
Business-to-Business Business Service

Business-to-Business Business Service

Business-to-Business arrangement leverages Business Service Level 8. This arrangement reflects
the relationship between all customers that are part of the business initiative.
As an example, all acquirers globally and participating issuers could be part of Business-to-
Business arrangement. The same criteria is used by all participating acquirers and issuers
regardless of where the transaction is acquired or issued. This arrangement is not the same as
Customer-to-Customer arrangement. Mastercard defines the interchange criteria and
interchange rate.

Customer-to-Customer Business Service

Customer-to-Customer arrangements reflect specific business relationships among customers.
Participating customers work with Mastercard to establish common processing standards,
interchange programs and rates, and qualifying criteria for the arrangement.
Global Clearing Management System supports customers’ participation in multiple Customer-
to-Customer arrangements.

Intracountry Business Service

The intracountry business service supports business arrangements available to all customers
within the same country. Customers work with Mastercard to establish common processing
standards, interchange programs and rates, and qualifying criteria for the arrangement.

Intercountry Business Service

Intercountry business service arrangements allow all customers within multiple countries or
business regions to enter into an agreement with Mastercard to apply unique fees and editing
rules to transactions among participating customers.

NOTE: The definition of the rules for all customer defined arrangements must be consistent
with Mastercard standards (or the standards of the other applicable brands) and established
in accordance with the Mastercard Rules.

Intraregional Business Services

Intraregional business service arrangements apply to all customers within a single region. All
customers currently participate in at least one intraregional business service arrangement,
depending on the country that is defined for customers’ issuing account ranges, acquiring
BINs, or both.
Intraregional arrangements consist of the interchange programs and rates defined by
Mastercard, such as the International Electronic Interchange (IEI) and the Issuer/Acquirer Chip
incentive interchange rate programs.

Interregional Business Services

Interregional business service arrangements apply to all customers in two different regions. All
customers currently participate in at least five interregional business service arrangements,

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Global Clearing Management System Reference Manual • 15 October 2019 173
 Business Service
Participating in Business Service Arrangements

depending on the country that is defined for the customers’ issuing account ranges, acquiring
BINs, or both.
Interregional arrangements consist of the International interchange programs and rates
defined by Mastercard (such as International Electronic Interchange [IEI] and Corporate
Purchasing Data Rate II).
The geographic designation for Interregional arrangements consists of a from region and a to
region.
• The from region is defined as the region associated to the value in DE 31 (Acquirer
Reference Data), subfield 2 (Acquirer Reference ID), or in the absence of DE 31, the value in
DE 94 (Transaction Originator Institution ID Code) of the message.
• The to region is defined as the region associated to the value in the DE 2 (Primary Account
Number [PAN]), or in the absence of DE 2 the value in DE 93 (Transaction Destination
Institution ID Code) of the message.

Participating in Business Service Arrangements

Customers may participate in business service arrangements at the individual issuing account
range and acquiring BIN levels. Once the issuer and acquirer are identified, Global Clearing
Management System selects the appropriate business service arrangement for each message
on the basis of those in common between the issuer and acquirer.

NOTE: A customer is considered a participant in a business service if at least one issuing

account range or acquiring BIN is participating.

Requirements for Customers Participating in Business Service Arrangements

There are various technical requirements for customer participation in business service
arrangements.
Participants must:
• Issue cards or acquire transactions.
• Format all transactions using the appropriate IPM message format.
• Recognize from the IPM MPE or from internal host database tables the parameters used in
determining business service arrangement participation.
• Use an approved Mastercard method of file transfer to submit transactions (such as the
Mastercard interface processor [MIP], CONNECT:Direct, or Mastercard File Express).
• Participate in mandatory testing.

Business Service Features and Qualification Criteria

Each business service has specific requirements—or criteria—that transactions must meet to
be processed within that arrangement. When transactions are exchanged between

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 Business Service
Business Service Features and Qualification Criteria

participating customers of an arrangement, Global Clearing Management System validates

the transaction against the established criteria and determines whether the transaction
qualifies.

Additionally, IRDs are defined within the arrangement, each with its own unique set of qualification
criteria and corresponding interchange fee structure. The criteria available for customization within an
arrangement are described in the following table.

Qualification Criteria Description

Card Program Identifier The set of card program identifiers in PDS 0158 (Business Activity),
subfield 1 (Card Program Identifier) that are valid for the arrangement.
Each of the remaining business service setup parameters have unique
values for each card program identifier.

Global Clearing The set of clearing product codes in PDS 0002 (Global Clearing
Management System Product Management System Product Identifier), derived from DE 2 (Primary
Identifier Account Number [PAN]) that are valid for the card program identifier
within the business service arrangement.

Transaction Function The set of transaction functions (Message Type Identifier plus DE 24
[Function Code]) that are valid for the card program identifier within
the business service arrangement.

Processing Code/ The set of Processing Codes in DE 3 (Processing Code), subfield 1

Reversal Indicator (Cardholder Transaction Type) that are valid for each transaction
function established for the card program identifier within the business
service arrangement. Also defines whether reversals in PDS 0025
(Message Reversal Indicator), subfield 1 (Message Reversal Indicator)
are permitted for the processing code.

Cardholder From Account ID The set of Cardholder From Account ID codes in DE 3 (Processing
Code), subfield 2 (Cardholder From Account Type Code) that are valid
for each transaction function established for the card program
identifier within the business service arrangement.

Cardholder To Account ID The set of Cardholder To Account ID codes in DE 3 (Processing Code),

subfield 3 (Cardholder To Account Type Code) that are valid for each
transaction function established for the card program identifier within
the business service arrangement.

Message Reason Codes/ The set of Message Reason Codes in DE 25 (Message Reason Code)
Reversal Indicator that are valid for each card program identifier within the business
service arrangement. Defines whether reversals are permitted for the
message reason code.

Geography The valid geographical usage for the brand, expressed as a set of valid
regions, country codes, or a combination of both.

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 Business Service
Additional Features for Business Service Arrangements

Qualification Criteria Description

Card Acceptor Business The set of CAB programs that are valid for each card program identifier
(CAB) Programs within the business service arrangement.

Additional Features for Business Service Arrangements

Options such as timeliness editing and authorization code requirements may be defined for a
business service. In addition, interchange fee structures and optional addendum message
requirements must be defined for transactions to be exchanged within the arrangement.

Business Service Calendar and Transaction Timeliness

A business service calendar is established by the participants of each arrangement, defining
the processing days and holidays to be observed within the arrangement. Global Clearing
Management System uses the information in the calendar for calculating transaction
timeliness, when applicable.
If requested, Global Clearing Management System will perform transaction timeliness editing
according to the number of days permitted, considering any excluded days as specified in the
business service calendar. Several types of dates may be excluded from the interchange
timeliness calculation:
• Non-processing days (days of the week such as Sundays)
• Holidays
• Transaction date
• File header date

NOTE: When two or more conditions occur on the same day (for example, Sunday = excluded
date, and Processing Date = not excluded), exclusions take precedence and the day will not be
counted in the timeliness calculation.

Interchange Rates and Fees Structure

Customer arrangements define, in accordance with Mastercard Standards, interchange rate
designators (IRDs) and corresponding interchange rate structures to be applied to transactions
exchanged between participating customers.
In addition, participating customers can specify whether Global Clearing Management System
should calculate interchange fees for bilaterally settled transactions that qualify for the
business service. For more information about bilaterally settled transactions, refer to the
Bilateral Settlement Activity chapter of the Global Clearing Management System Reference
Manual.

Manual Cash Disbursement Accommodation Fee

Customers that participate in an intracountry business service arrangement may establish an
accommodation fee for manual (non-ATM) cash disbursements. The issuer pays an

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 Business Service
Procedures for Applying for a Business Service Arrangement

accommodation fee to the acquirer for transactions involving a manual (non-ATM) cash
disbursement.
Customer-defined manual cash disbursement fees may be calculated as a percentage of the
transaction amount, a unit fee in local currency or U.S. dollars, a minimum cash disbursement
accommodation fee, or any combination thereof.

Procedures for Applying for a Business Service Arrangement

Customers should contact the Global Customer Service team or the appropriate Mastercard
regional office for information about initiating a business service arrangement or modifying an
arrangement currently recognized by Mastercard and processed within Global Clearing
Management System.
Certain business service arrangements will be documented and signed by participating
customers. All agreements requiring signatures must be signed and submitted to Mastercard
before business service testing may begin. In addition, each business service arrangement is
subject to and conditioned on the prior written approval of Mastercard.

NOTE: Customers that require additional assistance to support unique local requirements
should contact the appropriate regional office.

Identifying Business Service within IPM Messages

Global Clearing Management System uses the IRD submitted by the sender of the message
and the parameters established within the system to select or validate various information for
each transaction:
• PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)
• PDS 0158, subfield 2 (Business Service Type)
• PDS 0158, subfield 3 (Business Service ID)
Depending on the business activity for the transaction, Global Clearing Management System
applies appropriate processing rules, in accordance with the business service.
The sending customer optionally may submit the business service arrangement type and ID
code in the message. In this situation, Global Clearing Management System will validate only
that the values submitted in PDS 0158, subfields 2 and 3 are applicable for the message.
Global Clearing Management System will either select the card program identifier or validate
the customer-submitted card program identifier value in PDS 0158, subfield 1. If the system
finds the transaction does not qualify for the submitted business service and interchange rate
designator, the transaction will be rejected.

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 Business Service
Contents of PDS 0158 (Business Activity)

Contents of PDS 0158 (Business Activity)

Global Clearing Management System selects or validates the values in PDS 0158 (Business
Activity) for each applicable financial transaction.
The first four subfields are as follows.

Subfield Description Definition For example...

1 Card Program Three-position code that identifies MCC = Mastercard® card
Identifier Mastercard or other applicable
brand under whose umbrella
transactions are processed.

2 Business Service One-position code that identifies 2 = Intraregional

Arrangement the interchange relationship for the
Type Code business arrangement.

3 Business Service Unique, six-position code that 010001 = U.S. intraregional

ID Code identifies the specific interchange business service
arrangement assigned to the
transaction.

4 Interchange Code that specifies the interchange 70 = U.S. intraregional

Rate Designator rate to apply to the transaction. Merit III
interchange rate

When sending transactions to Global Clearing Management System, customers must submit
an interchange rate designator in subfield 4 and may populate subfields 1, 2, and 3 with
either spaces or the appropriate business service data. Global Clearing Management System
will reject any transaction that contains invalid data in PDS 0158, subfields 1 through 4. For all
other valid transactions, Global Clearing Management System will populate subfields 1, 2, and
3 with the system-selected information, and will also populate subfields 5 through 12 of PDS
0158 before forwarding the transaction to the receiving customer.
Global Clearing Management System derives the information according to evaluation of the
message contents against the qualification criteria for business service arrangements in
common between the issuer and acquirer. If Global Clearing Management System cannot find
a business service in which to process the transaction, the Global Clearing Management
System will reject the transaction.

PDS 0158, Subfield 1 (Card Program Identifier)

The use of PDS 0158 (Business Activity), subfield 1 (Card Program Identifier) by transaction
originators is conditional; if used, it may require Mastercard to exercise alternate card program

2 Refer to PDS 0158—Business Activity in the IPM Clearing Formats manual for format exceptions to subfield 4.

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 Business Service
PDS 0158, Subfield 2 (Business Service Arrangement Type Code)

edits, which use the BIN in the Acquirer Reference Data (ARD) to obtain and validate the card
program.

PDS 0158, Subfield 2 (Business Service Arrangement Type Code)

This table indicates the business service type (located in PDS 0158, subfield 2 [Business Service
Arrangement Type Code]) currently defined.

PDS 0158, Subfield 2 Value Business Service Type

1 Interregional

2 Intraregional

3 Intercountry

4 Intracountry

8 Business-to-Business Arrangement or Customer-

to-Customer Agreement

PDS 0158, Subfield 3 (Business Service ID Code)

PDS 0158, subfield 3 (Business Service ID Code) is a six-position value that identifies the
business service to which the transaction is assigned for reconciliation and rules
considerations.

Type Type Description

Code ID Code ID Code Description
1 Interregional FFTTnn FF = from acquiring region

TT = to issuing region

nn = unique number the corporation

assigned to each interregional business
service

2 Intraregional RRnnnn RR = business region

nnnn = unique number the corporation

assigned to each intraregional business
service

3 Intercountry nnnnnn nnnnnn = unique ID the corporation assigned to

each intercountry business service

4 Intracountry CCCnnn CCC = ISO numeric country code

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 Business Service
Account Management System (AMS) Region Codes

Type Type Description

Code ID Code ID Code Description
nnn = unique number the corporation
assigned to each intracountry business
service

8 Customer-to- Nnnnnn Nnnnnn = unique number the corporation

Customer or assigned to each customer-to-customer
Business-to- arrangement on file
Business

Account Management System (AMS) Region Codes

This table lists the Mastercard billing/clearing codes, Account Management System (AMS)
region codes, and corresponding descriptions.

Global Clearing
Management System Code
and MCBS (billing) Code AMS Region Code Description
01 1 United States

02 A Canada

03 B Latin America and the Caribbean

04 C Asia/Pacific

05 D Europe

06 E Middle East/Africa

Intraregional ID Codes
This table lists and describes the intraregional ID codes found in PDS 0158, subfield 3
(Business Service ID Code).

Intraregional ID Code Description

010001 Intraregional business service 0001 for Region 1 (Global Clearing
Management System region 01).

020001 Intraregional business service 0001 for Region A (Global Clearing

Management System region 02).

030001 Intraregional business service 0001 for Region B (Global Clearing

Management System region 03).

040001 Intraregional business service 0001 for Region C (Global Clearing

Management System region 04).

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 Business Service
Interregional ID Codes

Intraregional ID Code Description

050001 Intraregional business service 0001 for Region D (Global Clearing
Management System region 05). This business service will be used for
POS transactions (Mastercard POS, Maestro POS, payment
transactions, purchase with cashback, and Mastercard manual cash
disbursements).

050002 Intraregional business service 0002 for Region D (Global Clearing

Management System region 05). This business service will be used for
ATM transactions (Mastercard ATM, Maestro ATM, Maestro manual
cash disbursements, and Cirrus).

060001 Intraregional business service 0001 for Region E (Global Clearing

Management System region 06).

Interregional ID Codes
This table lists and describes the interregional ID codes found in PDS 0158, subfield 3
(Business Service ID Code).

Interregional ID Code Description

010201 Interregional business service 01 for Region 1 to Region A (Global
Clearing Management System region 01 to 02)

010301 Interregional business service 01 for Region 1 to Region B (Global

Clearing Management System region 01 to 03)

010401 Interregional business service 01 for Region 1 to Region C (Global

Clearing Management System region 01 to 04)

010501 Interregional business service 01 for Region 1 to Region D (Global

Clearing Management System region 01 to 05)

010601 Interregional business service 01 for Region 1 to Region E (Global

Clearing Management System region 01 to 06)

020101 Interregional business service 01 for Region A to Region 1 (Global

Clearing Management System region 02 to 01)

020301 Interregional business service 01 for Region A to Region B (Global

Clearing Management System region 02 to 03)

020401 Interregional business service 01 for Region A to Region C (Global

Clearing Management System region 02 to 04)

020501 Interregional business service 01 for Region A to Region D (Global

Clearing Management System region 02 to 05)

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 Business Service
Interregional ID Codes

Interregional ID Code Description

020601 Interregional business service 01 for Region A to Region E (Global
Clearing Management System region 02 to 06)

030101 Interregional business service 01 for Region B to Region 1 (Global

Clearing Management System region 03 to 01)

030201 Interregional business service 01 for Region B to Region A (Global

Clearing Management System region 03 to 02)

030401 Interregional business service 01 for Region B to Region C (Global

Clearing Management System region 03 to 04)

030501 Interregional business service 01 for Region B to Region D (Global

Clearing Management System region 03 to 05)

030601 Interregional business service 01 for Region B to Region E (Global

Clearing Management System region 03 to 06)

040101 Interregional business service 01 for Region C to Region 1 (Global

Clearing Management System region 04 to 01)

040201 Interregional business service 01 for Region C to Region A (Global

Clearing Management System region 04 to 02)

040301 Interregional business service 01 for Region C to Region B (Global

Clearing Management System region 04 to 03)

040501 Interregional business service 01 for Region C to Region D (Global

Clearing Management System region 04 to 05)

040601 Interregional business service 01 for Region C to Region E (Global

Clearing Management System region 04 to 06)

050101 Interregional business service 01 for Region D to Region 1 (Global

Clearing Management System region 05 to 01)

050201 Interregional business service 01 for Region D to Region A (Global

Clearing Management System region 05 to 02)

050301 Interregional business service 01 for Region D to Region B (Global

Clearing Management System region 05 to 03)

050401 Interregional business service 01 for Region D to Region C (Global

Clearing Management System region 05 to 04)

050601 Interregional business service 01 for Region D to Region E (Global

Clearing Management System region 05 to 06)

060101 Interregional business service 01 for Region E to Region 1 (Global

Clearing Management System region 06 to 01)

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 Business Service
PDS 0158, Subfield 4 (Interchange Rate Designator)

Interregional ID Code Description

060201 Interregional business service 01 for Region E to Region A (Global
Clearing Management System region 06 to 02)

060301 Interregional business service 01 for Region E to Region B (Global

Clearing Management System region 06 to 03)

060401 Interregional business service 01 for Region E to Region C (Global

Clearing Management System region 06 to 04)

060501 Interregional business service 01 for Region E to Region D (Global

Clearing Management System region 06 to 05)

NOTE: The IPM MPE contains a complete list of business service arrangements.

PDS 0158, Subfield 4 (Interchange Rate Designator)

For transactions that involve Mastercard card programs, the originator of the message must
submit a valid interchange rate designator (IRD) value in PDS 0158 (Business Activity), subfield
4 (Interchange Rate Designator).
PDS 0158, subfields 1 through 3 may contain spaces. Global Clearing Management System
will populate these subfields with the system-derived values. If the system cannot find a
business service in which to process the transaction, the Global Clearing Management System
will reject the transaction.
For transactions that involve card programs other than Mastercard, the originator of the
message must submit a valid IRD value in PDS 0158, subfield 4, if required by the
arrangement. Spaces may be submitted in PDS 0158, subfields 1–3, and Global Clearing
Management System will populate these subfields with the system-derived values.

NOTE: If PDS 0158, subfield 4 is CS, and the merchant or acquirer country is not China (CHN),
or the issuer country is China (CHN), the Clearing Platform will reject the chargeback message
with error number 2709 (PDS0158S4 INTERCHANGE RATE DESIGNATOR INVALID WHEN
MERCHANT OR ACQUIRER COUNTRY IS NOT CHINA OR ISSUER COUNTRY IS CHINA).

Acquirer Creation of the Outbound Message with Business Activity

Acquirers must use various information to create outbound messages with business activity.
The acquirer:
• Uses information provided by Mastercard to identify the country codes of the sender and
receiver of the transaction.
• Uses information provided by Mastercard to identify the business arrangements in which
the sender and receiver participate.
• Provides the appropriate interchange rate designator (IRD) in PDS 0158, subfield 4
(Interchange Rate Designator) to designate an interchange arrangement within the
specified business arrangement.

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 Business Service
Issuer Identification of Business Activity within the Inbound Message

Issuer Identification of Business Activity within the Inbound Message

The issuer identifies the business service information within the transaction.

Location of the business service information used by the issuer

PDS 0158, subfield 1—Card Program Identifier

PDS 0158, subfield 2—Business Service Arrangement Type Code

PDS 0158, subfield 3—Business Service ID Code

PDS 0158, subfield 4—Interchange Rate Designator (IRD)

PDS 0158, subfield 5—Business Date (Global Clearing Management System provides this field)

PDS 0158, subfield 6—Business Cycle (Global Clearing Management System provides this field)

PDS 0158, subfield 7—Card Acceptor Classification Override Indicator

PDS 0158, subfield 8—Product Class Override Indicator

PDS 0158, subfield 9—Corporate Incentive Rates Apply Indicator

PDS 0158, subfield 10—Special Conditions Indicator

PDS 0158, subfield 11—Mastercard Assigned ID Override Indicator

PDS 0158, subfield 12—Future Use Account Level Management Account Category Code

PDS 0158, subfield 13—Future use

PDS 0158, subfield 14—Future use

PDS 0158, subfield 15—Future use

Retrieval Request and Retrieval Fee Billing Transactions

PDS 0158 (Business Activity) is not required in retrieval request or retrieval fee billing
transactions.

When Business Service is Submitted by the Customer

The sending customer may submit business service arrangement information in the message.
• PDS 0158, subfield 1—Card Program Identifier
• PDS 0158, subfield 2—Business Service Arrangement Type Code
• PDS 0158, subfield 3—Business Service ID Code
When the sending customer submits business service arrangement information in the private
data subelements listed above, Global Clearing Management System validates only that the
submitted arrangement information is applicable for the message. Global Clearing

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 Business Service
Using the MPE to Select the Card Program Identifier and Business Service Information

Management System either selects the card program identifier, if not submitted by the
customer, or validates the customer-submitted card program identifier value in PDS 0158,
subfield 1. If the submitted information in PDS 0158, subfield 2 and PDS 0158, subfield 3 is
not valid for the message or for the Global Clearing Management System-selected or
customer-submitted card program identifier in PDS 0158, subfield 1, Global Clearing
Management System rejects the message.

IF the sender submits… THEN…

Business service arrangement • Both the Business Service Arrangement Type Code (PDS
information (PDS 0158, subfield 2 and 0158, subfield 2) and Business Service ID Code (PDS
subfield 3) 0158, subfield 3) must be submitted together.
• The Card Program Identifier (PDS 0158, subfield 1) must
contain spaces or a valid card program identifier for the
business service arrangement information provided.
• If IRD validation is required for the message, the IRD also
must be present in the message. Global Clearing
Management System validates the transaction against
the qualification criteria for the IRD.

Using the MPE to Select the Card Program Identifier and Business
Service Information
Global Clearing Management System can select or validate the business activity (PDS 0158,
subfields 1–4) for all financial transactions. The following outlines the steps that Global
Clearing Management System follows to select the business activity for financial transactions
using the IPM Mastercard Parameter Extract (MPE). This includes selection or validation of the
card program identifier, selection or validation of the business service arrangement, and
validation of the interchange rate designator (IRD), if applicable.

Step Action
Data and Message Content Validation
1a. Validate format requirements of the elements used in the selection process

1b. Validate syntax and attributes of elements used in the selection process

1c. Validate content of elements used in the selection process

3 Card Program Identifier (PDS 0158, subfield 1) may be spaces or may contain a card program identifier value when
submitting business service information in PDS 0158, subfield 2 and PDS 0158, subfield 3.

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 Business Service
Using the MPE to Select the Card Program Identifier and Business Service Information

Step Action
2. Determine whether the transaction requires business service processing

Business Service Arrangement Selection

3a. Retrieve and Validate Issuer Card Program Identifier and Business Service Arrangement
Participation (Standard Process)

3b. Retrieve and Validate Issuer Card Program Identifier and Business Service Arrangement
Participation (Central Acquiring Process)
Global Clearing Management System determines whether Central Acquiring logic applies to
an intra-European or inter-European transaction by comparing the acquiring BIN country
code (found in table IP0041T1) with the merchant country code (found in DE 43 [Card
Acceptor Name/Location], subfield 6 [Card Acceptor Country Code] of the transaction). If
these country codes are the same, the Standard Process (defined in Step 3a above) applies. If
the country codes are not the same, the Central Acquiring Process applies, as defined in this
subsection.

Business Service Arrangement Validation

4. Validate MTI/Function Code/Processing Code/Reversal Indicator Combination

5. Validate MTI/Function Code/Message Reason Code combination

6. Determine whether IRD validation is required for the transaction

IRD Validation
7. Validate MTI/Function Code/Processing Code/Reversal Indicator combination for the IRD

8. Validate product codes

9. Validate CAB programs

10. Validate transaction currency

11. Determine whether the issuer account range is exempt from Central Acquiring

The following diagrams depict the flow:

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 Business Service
Using the MPE to Select the Card Program Identifier and Business Service Information

Data and Message Content Validation

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 Business Service
Using the MPE to Select the Card Program Identifier and Business Service Information

Business Service Arrangement Selection and Validation

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 Business Service
Data and Message Content Validation by Global Clearing Management System

IRD Validation

Data and Message Content Validation by Global Clearing Management System

These steps describe the process of validating the data and message content.

Step 1: Validate the Elements Used in the Selection Process

Certain elements must be present and valid in each message to begin the process of selecting
the card program identifier and business service arrangement. These are the elements used to

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 Business Service
Step 1a: Validate Format Requirements

validate the qualification criteria for card program identifiers and business service
arrangements.
The format requirements, syntax/attribute definitions, and content of these critical elements
are defined by Mastercard.

Step 1a: Validate Format Requirements

Global Clearing Management System validates that all the elements necessary for selection are
present and valid using Table IP1102T1 Mandatory Field Edits.
The columns in the figure that follows show the elements used in the selection process. The
rows in this figure show whether each of these elements is mandatory, conditional, or
optional for each transaction function.

Table IP1102T1 Format Requirements for Elements Used in Selection

If one of the elements shown in the previous figure is mandatory for a message but not
present, Global Clearing Management System rejects the message with the following error
message (where <fldname> represents the name of the missing element):
735 - <fldname> MUST BE PRESENT

Step 1b: Validate Syntax/Attribute of Selection Elements

Global Clearing Management System edits the syntax/attribute requirements for all the
elements used in the selection process.
• IP0006T1 Data Element Attributes
• IP0007T1 Data Element Subfield Attributes
• IP0008T1 PDS Attributes
• IP0009T1 PDS Subfield Attributes
Syntax/Attribute Requirements for Elements Used in the Selection Process

4 All of the above elements may not be present in all messages.

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 Business Service
Step 1c: Validate Content of Selection Elements

Name Element Syntax/Attribute Table ID

MTI First four positions n-4 IP0006T1

PAN DE 2 n…19; LLVAR IP0006T1

Processing Code DE 3 n-6 IP0007T1

Function Code DE 24 n-3 IP0006T1

Message Reason Code DE 25 n-4 IP0006T1

Card Acceptor Business DE 26 n-4 IP0006T1

Code

Acquirer Reference Data DE 31 n-23; LLVAR IP0007T1

Card Acceptor Name/ DE 43 ans…99; LLVAR IP0007T1

Location

Transaction Destination DE 93 n…11; LLVAR IP0006T1

Institution ID Code

Transaction Originator DE 94 n…11; LLVAR IP0006T1

Institution ID Code

Message Reversal PDS 0025 an…7; TAGLLLVAR IP0009T1

Indicator

File Reversal Indicator PDS 0026 an…7; TAGLLLVAR IP0009T1

Business Activity PDS 0158 ans…30; TAGLLLVAR IP0009T1

Settlement Method PDS 0165 ans...30; TAGLLLVAR IP0009T1

Indicator

Step 1c: Validate Content of Selection Elements

Global Clearing Management System edits the content of the elements to ensure the values
submitted are valid system values.

Name Element Table Name Table ID

PAN DE 2 Issuer Account Range Table IP0040T1

Processing Code DE 3, subfield 1 DE 3 Processing Code, subfield 1 IP2048T1

Cardholder Transaction Type

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 Business Service
Step 2: Determine Whether the Transaction Requires Business Service Processing

Name Element Table Name Table ID

Cardholder From DE 3, subfield 2 DE 3 Processing Code, subfield 2 IP2054T1
Account Cardholder From Account Type
Code

Cardholder To DE 3, subfield 3 DE 3 Processing Code, subfield IP2055T1

Account 3, Cardholder To Account Type
Code

Card Acceptor DE 26 Card Acceptor Business Codes IP0075T1

Business (CAB) Code (MCCs)

Acquirer Reference ID DE 31, subfield 2 BIN Table IP0041T1

Card Acceptor DE 43, subfield 6 Country Codes Table IP0028T1

Country Code

Transaction DE 93 Expanded Customer ID Master IP0072T1

Destination Institution Table
ID Code

Transaction Originator DE 94 Expanded Customer ID Master IP0072T1

Institution ID Code Table

Message Reversal PDS 0025 PDS 0025 Message Reversal IP2059T1

Indicator Indicator, subfield 1 Message
Reversal Indicator

The IP2nnnT1 series tables contain valid values based on card program identifier/business
service arrangement combination. They contain some entries for which the Card Program
Identifier field contains all spaces and the Business Service Arrangement Type and Business
Service ID fields contain all zeros. These entries represent the default valid values. At this stage
of validation, when Global Clearing Management System is trying to ensure that all of the
mandatory fields are present and contain valid values, Global Clearing Management System
uses these default valid values.
Later, after Global Clearing Management System assigns a specific card program identifier/
business service arrangement combination, Global Clearing Management System may
perform edits that require a specific subset of valid values depending on the business service.
For these types of edits, Global Clearing Management System uses the IP2nnnT1 table entries
that contain specific values in the Card Program Identifier, Business Service Arrangement Type,
and Business Service ID fields.

Step 2: Determine Whether the Transaction Requires Business Service Processing

Not all messages require business service processing. Table IP0092T1 identifies the transaction
functions that are eligible for business service processing. If the switch in the table is equal to

5 The table includes card acceptor business codes that are active and life cycled. If the CAB code provided by the
customer is in life cycle status, First Presentment/1240 non-reversal messages will be rejected.

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 Business Service
Step 3: Business Service Arrangement Selection

Y for the transaction function, Global Clearing Management System performs business service
processing.
Mastercard defines the following as the specific transaction functions that are eligible.

MTI Function Description Requires Business Service

Code (DE 24) Processing Switch
1240 200 First Presentments Y

1644 695 File Trailer N

1644 696 Financial Detail Addendum (inherits N

business service from associated First
Presentment)

1644 697 File Header N

1442 450, 453 First Chargebacks Y

1240 205, 282 Second Presentments Y

1442 451, 454 Arbitration Chargebacks Y

1644 603 Retrieval Requests Y

1740 700, 780, 781, Fee Collections Y

782, 783

1740 790 Fee Collection Fund Transfer Y

Step 3: Business Service Arrangement Selection

There are two processes for selecting business service arrangements.

Step 3a (Standard Process): Retrieve and Match Card Program Identifier and Business
Service Arrangement Participation
Global Clearing Management System retrieves the card program identifier and business
service arrangement participation information for both customers in the message.

To Retrieve Card Program Use Element Table Name Table ID

Identifier and Business Service
Arrangement Participation
Combinations for the…
Issuer (applies to Presentments, DE 2 (expanded Issuer Account Range Card IP0090T1
Chargebacks, and Fee Collection to 19 positions) Program Identifier and Business
Retrieval Fee Billing messages) Service Arrangement
Participation

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Global Clearing Management System Reference Manual • 15 October 2019 193
 Business Service
Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program Identifier and Business Service
Arrangement Participation

To Retrieve Card Program Use Element Table Name Table ID

Identifier and Business Service
Arrangement Participation
Combinations for the…
Acquirer (applies to Presentments, DE 31, subfield 2 Acquiring BIN Card Program IP0091T1
Chargebacks, and Fee Collection Identifier and Business Service
Retrieval Fee Billing messages) Arrangement Participation

Receiver (applies only to Fee DE 93 (expanded Customer Business Service IP0056T1

Collection messages other than Fee to 11 positions) Arrangements
Collection Retrieval Fee Billing)

Sender (applies only to Fee DE 94 (expanded Customer Business Service IP0056T1

Collection messages other than Fee to 11 positions) Arrangements
Collection Retrieval Fee Billing)

Using the tables listed above, Global Clearing Management System finds all card program
identifier/business service arrangement combinations in common between the two customers.
If none are in common, Global Clearing Management System rejects the transaction.
If the two customers have one or more card program identifier/business service arrangement
combinations in common, Global Clearing Management System evaluates each card program
identifier/business service arrangement combination that is in common between the
customers against the characteristics of the transaction. This process begins with Step 4 as
described in the Business Service Arrangement Validation subsection later in this section. If
one arrangement fails the validation, Global Clearing Management System returns to Step 3a
to evaluate the next higher priority issuer card program identifier/business service arrangement
combination.

Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program
Identifier and Business Service Arrangement Participation
Currently, Central Acquiring logic applies only to presentments and chargebacks for which the
issuer, the acquirer, and the card acceptor are in the Europe region. Central Acquiring logic
does not apply to ATM or manual cash advance transactions.
For Central Acquiring, the acquiring bank identification numbers (BINs) do not show all the
relevant intracountry business service arrangements in table IP0091T1. Such an approach
would be too restrictive for acquirers as they would need to wait until they were set up in
table IP0091T1 for a new intracountry arrangement before they could successfully submit
transactions in that market. Therefore, for Central Acquiring situations, Global Clearing
Management System considers only the issuing account range participation as defined in table
IP0090T1.
Global Clearing Management System determines whether Central Acquiring logic applies to
an intra-European transaction by comparing the acquiring BIN country code (found in table
IP0041T1) with the merchant country code (found in DE 43 [Card Acceptor Name/Location],
subfield 6 [Card Acceptor Country Code] of the transaction). If these country codes are the

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Global Clearing Management System Reference Manual • 15 October 2019 194
 Business Service
Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program Identifier and Business Service
Arrangement Participation

same, the Standard Process (defined in Step 3a above) applies. If the country codes are not
the same, the Central Acquiring Process applies, as defined in this subsection.
For the Central Acquiring process, Global Clearing Management System retrieves the card
program identifier and business service arrangement participation information for the issuer
only.

To Retrieve Card Program Use Element Table Name Table ID

Identifier and Business Service
Arrangement Participation
Combinations for the…
Issuer (applies to presentments and DE 2 (expanded Issuer Account Range Card IP0090T1
chargebacks) to 19 positions) Program Identifier and Business
Service Arrangement
Participation

Global Clearing Management System then evaluates each card program identifier/business
service arrangement combination in which the issuer participates, in the sequence in which
they are provided in table IP0090T1, to determine whether the acquirer accepts the card
program identifier, and whether the geography and Central Acquiring permission are
appropriate.
To determine whether the acquirer accepts the card program identifier of the card program
identifier/business service arrangement combination being evaluated, Global Clearing
Management System checks all the table IP0041T1 entries for the acquiring BIN. If the
contents of the Card Program Identifier field in any of the acquiring BIN table IP0041T1 entries
match the card program identifier of the card program identifier/business service arrangement
combination being evaluated, Global Clearing Management System considers the
arrangement eligible for further processing. Otherwise, Global Clearing Management System
discards the current arrangement and returns to Step 3b to evaluate the next higher priority
issuer card program identifier/business service arrangement combination.

NOTE: Table 94 is called only when the business service level equals 4 Intra or 3 Inter. It is not
called for M2M.

To validate the geography of the arrangement, Global Clearing Management System looks up
the issuer’s card program identifier/business service arrangement combination in table
IP0094T1 Geographic Restrictions. Table IP0094T1 restricts business service arrangements at
either the country code level or the region level.
If table IP0094T1 has no entry for the card program identifier/business service arrangement
combination, Global Clearing Management System considers the card program identifier/
business service arrangement combination to have no geographic restrictions and, therefore,
it is eligible for further processing.
If table IP0094T1 has at least one entry for the card program identifier/business service
arrangement combination, the business service arrangement combination has at least one

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Global Clearing Management System Reference Manual • 15 October 2019 195
 Business Service
Step 3b (Central Acquiring Process): Retrieve and Validate Issuer Card Program Identifier and Business Service
Arrangement Participation

geographic restriction. Global Clearing Management System evaluates each of these entries to
ensure that the transaction meets at least one of the table IP0094T1 geographic restrictions as
follows:
• If the table IP0094T1 entry contains a country code in the Country field, Global Clearing
Management System compares the merchant country code (found in DE 43, subfield 6 of
the transaction) with the Country field in table IP0094T1.
• If the table IP0094T1 entry contains a region code on the Region field, Global Clearing
Management System determines the region associated with the merchant country code of
the transaction and compares it with the Region field in table IP0094T1.
• If the merchant country or region matches the table IP0094T1 country or region, Global
Clearing Management System considers the card program identifier/business service
arrangement combination eligible for further processing.
• If none of the table IP0094T1 entries for the business service arrangement matches the
merchant country/region of the transaction, Global Clearing Management System discards
the current arrangement and returns to Step 3b to evaluate the next higher priority issuer
card program identifier/business service arrangement combination.
If the issuer arrangement being evaluated is not a Customer-to-Customer arrangement,
Global Clearing Management System evaluates the issuer card program identifier/business
service arrangement combination against the characteristics of the transaction. This process
begins with Step 4 as described in the Business Service Arrangement Validation subsection
later in this section.
If the arrangement fails the validation, Global Clearing Management System returns to Step
3b to evaluate the next higher priority issuer card program identifier/business service
arrangement combination. If the issuer arrangement being evaluated is a Customer-to-
Customer arrangement, Global Clearing Management System continues its Central Acquiring
process by validating acquirer participation in this customer-to-customer business service
arrangement. Global Clearing Management System does this by looking up the combination
of acquirer BIN, Customer-to-Customer business service arrangement, and card program
identifier in table IP0091T1.
If no matching entry is in table IP0091T1, the acquirer does not participate in the Customer-
to-Customer business service arrangement; therefore, it cannot be used. Global Clearing
Management System discards the current Customer-to-Customer business service
arrangement and returns to Step 3b to evaluate the next higher priority issuer card program
identifier/business service arrangement combination. If a matching entry is in table IP0091T1
for the Customer-to-Customer business service arrangement, Global Clearing Management
System continues its Central Acquiring process by validating Central Acquiring permission. To
do this, Global Clearing Management System looks up the issuer’s Customer-to-Customer
business service arrangement in table IP0089T1 Business Service Switches.
• If the table IP0089T1 entry contains a Y in the Central Acquired Switch field, the Customer-
to-Customer business service arrangement cannot be used, because an appropriate
intracountry business service arrangement should be used instead for the centrally acquired
transactions. Therefore, Global Clearing Management System discards the current

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Global Clearing Management System Reference Manual • 15 October 2019 196
 Business Service
Global Clearing Management System Validation of Business Service Arrangement

Customer-to-Customer arrangement and returns to Step 3b to evaluate the next higher

priority issuer card program identifier/business service arrangement combination.
• If the table IP0089T1 entry contains an N in the Central Acquired Switch field, or table
IP0089T1 has no entry for the specified Customer-to-Customer business service
arrangement, Global Clearing Management System evaluates this M2M business service
arrangement against the characteristics of the transaction beginning with Step 4, within
the Central Acquiringing process. If current M2M fails validation, Global Clearing
Management System returns to Step 3B.

Global Clearing Management System Validation of Business Service Arrangement

Global Clearing Management System validates the qualification criteria for a card program
identifier/business service arrangement combination.
If the transaction does not meet all of the qualification criteria for the arrangement, including
criteria for the submitted IRD, Global Clearing Management System discards the current card
program identifier/business service arrangement combination and returns to Step 3 to
evaluate the next higher priority card program identifier/business service arrangement
combination. This process continues until the transaction qualifies for an arrangement, or
there are no more arrangements in common.
Global Clearing Management System evaluates business service arrangements according to
the sequence in which the entries appear in the optimized table IP0090T1, because the entries
are provided in this table in sequence by the correct priority. This process allows Global
Clearing Management System to select the most appropriate card program identifier/business
service combination for the transaction.
When the transaction satisfies all qualifying criteria for a card program identifier/business
service arrangement combination, including IRD criteria, Global Clearing Management System
assigns this information to the message in private data subelement (PDS) 0158 (Business
Activity).

NOTE: Global Clearing Management System evaluates all original and reversal financial
transactions, with the exception of Global Collection Only transactions, against the
qualification parameters for all eligible card program identifiers and business service
arrangements unless otherwise noted.

NOTE: Global Collection Only transactions bypass all qualification criteria except for Message
Reason Code validation. Selection of the card program identifier and business service
arrangement for Global Collection Only transactions is based only on issuing Account Range
and Acquirer BIN (or sending and receiving customer ID) participation and priority, and
Message Reason Code validation.

When Global Clearing Management System is unable to select an arrangement for the
message or to validate the customer-submitted arrangement information in PDS 0158, Global
Clearing Management System rejects the message. Global Clearing Management System
generates a Message Exception/1644 message with an error code indicating the fields in error
and the reason for the error. Global Clearing Management System generates one Message
Exception/1644 message with one error code for each card program identifier and business

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Global Clearing Management System Reference Manual • 15 October 2019 197
 Business Service
Step 4: Validate the Message Reason Code and Reversal Indicator for the Card Program Identifier/Business
Service Arrangement Combination

service arrangement combination evaluated (Or if IRD validation is required for the message,
Global Clearing Management System generates one Message Exception/1644 message with
an error code for each card program identifier/business service arrangement/IRD combination
evaluated).

Step 4: Validate the Message Reason Code and Reversal Indicator for the Card
Program Identifier/Business Service Arrangement Combination
In some messages, such as First Presentment/1240 messages, DE 25 (Message Reason Code) is
an optional field. If DE 25 is not present in the message, Global Clearing Management System
performs this step using spaces for the message reason code.
Global Clearing Management System first looks up the combination of Card Program
Identifier, Business Service Arrangement Type, and Business Service ID in table IP0088T1 to
determine whether it is masked to another business service arrangement.
• If table IP0088T1 has no entry that matches all of these values, the business service
arrangement is not masked and Global Clearing Management System will perform all table
lookups using the actual card program identifier and business service arrangement values.
• If table IP0088T1 has an entry that matches all of these values, Global Clearing
Management System obtains the related Masked Card Program Identifier, Masked Business
Service Arrangement Type, and Masked Business Service ID and will perform table
IP0097T1 and IP0098T1 lookups using these masked values instead of the actual card
program identifier and business service arrangement values.
Global Clearing Management System then looks up the combination of message type
identifier (MTI), Function Code, Message Reason Code, Card Program Identifier, Business
Service Arrangement Type, and Business Service ID, in table IP0097T1. When performing this
lookup, Global Clearing Management System uses the masked card program identifier and
business service arrangement values if table IP0088T1 indicates that the business service
arrangement is masked.
If table IP0097T1 has no entry that matches all of these values, Global Clearing Management
System discards the current arrangement and returns to Step 3 to select the next card
program identifier/business service arrangement combination.
If table IP0097T1 has an entry that matches all of these values, Global Clearing Management
System obtains the value in the table IP0097T1 Reversal Indicator field.
• If this value is B, the table IP0097T1 entry is valid for both reversal and non-reversal
transactions, and Global Clearing Management System continues processing with Step 5.
• If this value is R, the table IP0097T1 entry is valid only for reversal transactions. If the
transaction is a reversal, indicated by PDS 0025 (Message Reversal Indicator), subfield 1
(Message Reversal Indicator) being present in the transaction and containing a value of R,
Global Clearing Management System continues processing with Step 5. If the transaction is
not a reversal, Global Clearing Management System discards the current arrangement and
returns to Step 3 to select the next card program identifier/business service arrangement
combination.
• If this value is N, the table IP0097T1 entry is valid only for non-reversal transactions. If the
transaction does not contain PDS 0025, subfield 1 with a value of R, it is not a reversal and

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Global Clearing Management System Reference Manual • 15 October 2019 198
 Business Service
Step 5: Validate the Processing Code and Reversal Indicator for the Card Program Identifier/Business Service
Arrangement Combination

Global Clearing Management System continues processing with Step 5. Otherwise, Global
Clearing Management System discards the current arrangement and returns to Step 3 to
select the next card program identifier/business service arrangement combination.

Step 5: Validate the Processing Code and Reversal Indicator for the Card Program
Identifier/Business Service Arrangement Combination
Global Clearing Management System first looks up the value in DE 3 (Processing Code),
subfield 2 (Cardholder From Account Type Code) of the transaction in table IP2054T1 and
obtains its related masked value. The masked value is located immediately following the actual
value. Global Clearing Management System will perform table IP0098T1 and IP0052T1
lookups using the masked DE 3, subfield 2 value in place of the actual DE 3, subfield 2 value.
Global Clearing Management System then looks up the combination of message type
identifier (MTI), Function Code, Processing Code, Card Program Identifier, Business Service
Arrangement Type, and Business Service ID, in table IP0098T1. Global Clearing Management
System uses the masked DE 3 and masked business service arrangement values where
appropriate.
If table IP0098T1 has no entry that matches all of these values, Global Clearing Management
System discards the current arrangement and returns to Step 3 to select the next card
program identifier/business service arrangement combination.
If table IP0098T1 has an entry that matches all of these values, Global Clearing Management
System obtains the value in the table IP0098T1 Reversal Indicator field.
• If this value is B, the table IP0098T1 entry is valid for both reversal and non-reversal
transactions, and Global Clearing Management System continues processing with Step 6.
• If this value is R, the table IP0098T1 entry is valid only for reversal transactions. If the
transaction is a reversal, indicated by PDS 0025 (Message Reversal Indicator), subfield 1
(Message Reversal Indicator) being present in the transaction and containing a value of R,
Global Clearing Management System continues processing with Step 6. If the transaction is
not a reversal, Global Clearing Management System discards the current arrangement and
returns to Step 3 to select the next card program identifier/business service arrangement
combination.
• If this value is N, the table IP0098T1 entry is valid only for non-reversal transactions. If the
transaction does not contain PDS 0025, subfield 1 with a value of R, it is not a reversal and
Global Clearing Management System continues processing with Step 6. Otherwise, Global
Clearing Management System discards the current arrangement and returns to Step 3 to
select the next card program identifier/business service arrangement combination.

Step 6: Determine Whether IRD Validation is Required for the Transaction

Global Clearing Management System looks at the table IP0098T1 entry found in Step 5
validation and checks the Requires IRD Validation Switch field.
• If this field contains Y, Global Clearing Management System performs IRD validation
(beginning with Step 7) and determines the correct interchange fee using the IRD

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Global Clearing Management System Reference Manual • 15 October 2019 199
 Business Service
Interchange Rate Designator (IRD) Validation

submitted in PDS 0158 (Business Activity), subfield 4 (Interchange Rate Designator) of the
transaction.
• If this field contains N, Global Clearing Management System performs IRD validation
(beginning with Step 8) and determines the correct interchange fee using an IRD value of
spaces.

Interchange Rate Designator (IRD) Validation

The interchange rate designator (IRD) must be validated.

Step 7: Validate the Processing Code and Reversal Indicator for the IRD
If IRD validation is not required for the transaction, Global Clearing Management System
omits Step 7 and continues processing with Step 8.
Otherwise, Global Clearing Management System looks up the combination of message type
identifier (MTI), Function Code, Processing Code, Card Program Identifier, Business Service
Arrangement Type, Business Service ID, and interchange rate desigator (IRD), in table
IP0052T1. To perform this lookup, Global Clearing Management System uses:
• The masked value for DE 3 (Processing Code), subfield 2 (Cardholder From Account Type
Code), as described in Step 5.
• The actual (unmasked) values for the card program identifier/business service arrangement
combination.
• The actual interchange rate designator in the IRD field.
If table IP0052T1 has no entry that matches all of these values, Global Clearing Management
System discards the current arrangement and returns to Step 3 to select the next card
program identifier and business service arrangement combination.
If table IP0052T1 has an entry that matches all of these values, Global Clearing Management
System obtains the value in the table IP0052T1 Reversal Indicator field.
• If this value is B, the table IP0052T1 entry is valid for both reversal and non-reversal
transactions, and Global Clearing Management System continues processing with Step 8.
• If this value is R, the table IP0052T1 entry is valid only for reversal transactions. If the
transaction is a reversal, indicated by PDS 0025 (Message Reversal Indicator), subfield 1
(Message Reversal Indicator) being present in the transaction and containing a value of R,
Global Clearing Management System continues processing with Step 8. If the transaction is
not a reversal, Global Clearing Management System discards the current arrangement and
returns to Step 3 to select the next card program identifier/business service arrangement
combination.
• If this value is N, the table IP0052T1 entry is valid only for non-reversal transactions. If the
transaction does not contain PDS 0025, subfield 1 with a value of R, it is not a reversal and
Global Clearing Management System continues processing with Step 8. Otherwise, Global
Clearing Management System discards the current arrangement and returns to Step 3 to
select the next card program identifier/business service arrangement combination.

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Global Clearing Management System Reference Manual • 15 October 2019 200
 Business Service
Step 8: Validate Product Codes for the IRD

Step 8: Validate Product Codes for the IRD

Global Clearing Management System looks up the combination of Card Program Identifier,
Business Service Arrangement Type, Business Service ID, and interchange rate designator (IRD)
in Masked Business Services and Interchange Rate Designators table (IP0087T1) to see
whether it is masked to another business service arrangement and IRD.
Spaces are used in the IRD field for look-up when IRD validation is not required as described in
Step 6.
• If there is no entry in table IP0087T1 that matches all of these values, the Business Service
Arrangement is not masked and Global Clearing Management System performs table
IP0096T1 look-up using the actual Card Program Identifier, Business Service Arrangement
Type, Business Service ID, IRD, and Global Clearing Management System Product ID values.
• If there is an entry in table IP0087T1 that matches all of these values, Global Clearing
Management System obtains the related Masked Card Program Identifier, Masked Business
Service Arrangement Type, Masked Business Service ID, Masked Interchange Rate
Designator, and Global Clearing Management System Product ID and performs table
IP0096T1 look-up using these masked values instead of the actual Card Program Identifier,
business service arrangement, and IRD values.

NOTE: Product code validation process is bypassed when the message is a life cycle
transaction and the Product reassignment switch on table IP0040T1 is set to Y or the message
is a first presentment and the first presentment reassignment switch on table IP0040T1 is Y.

Global Clearing Management System looks up the value in DE 2 (Primary Account Number) of
the transaction in table IP0040T1 by finding the table entries for which the DE 2 PAN falls
within the Issuer Account Range—Low and Issuer Account Range—High values in table
IP0040T1. There may be more than one entry in table IP0040T1 for the issuer account range.
Global Clearing Management System chooses the table IP0040T1 entry for which the Card
Program Identifier matches the card program identifier of the card program identifier/business
service arrangement combination being evaluated. From this table IP0040T1 entry, Global
Clearing Management System obtains the related Global Clearing Management System
Product ID for use in table IP0096T1.
The Product Class feature provides the ability to vary interchange rates by product grouping,
while maintaining common interchange structures. The Product Class Override Indicator is
used in the interchange product override functionality. Override of interchange rates by
product code is accomplished by assigning a Product Class Override Indicator to one or more
product codes that would be associated with a given interchange rate value.
An example would be Product Class Override Indicator MCC (Consumer) being used to
indicate a specific rate for a given IRD and Product Class Override Indicator. This Product Class
Override Indicator MCC would be used for product codes MDS, MDH, MCE, MCC, MCG,
MPL, and MDP, thereby avoiding the repetition of each of these product code rates in the
appropriate tables in the member profile extract (MPE). This helps Mastercard to limit the
number of entries in the MPE tables, reducing the delivery time to our customers.
Please refer to the IPM Clearing Formats manual to learn about the Product Class Override
Indicator associated with each product code.

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Global Clearing Management System Reference Manual • 15 October 2019 201
 Business Service
Step 9: Validate CAB Programs for the IRD

Global Clearing Management System looks up the combination of Card Program Identifier,
Business Service Arrangement Type, Business Service ID, IRD, and Global Clearing
Management System Product ID, in table IP0096T1. To perform this lookup, Global Clearing
Management System uses:
• The actual (unmasked) values for the card program identifier/business service arrangement
combination or use masked values, if found
• The interchange rate designator in the IRD field (if IRD validation is required), or a space in
the IRD field (if IRD validation is not required), as described in Step 6
• The Global Clearing Management System Product ID from table IP0040T1 in the product ID
field

IF… THEN…
There is no entry in table IP0096T1 that matches Global Clearing Management System discards the
all the values mentioned in the previous bullet list current business service arrangement and returns
to Step 3 to select the next card program
identifier/business service arrangement
combination.

There is an entry in table IP0096T1 that matches Global Clearing Management System proceeds to
all the values mentioned in the previous bullet list Step 9 to continue validating the IRD.

There is an entry in table IP0096T1 that matches Global Clearing Management System discards the
all the values mentioned in the previous bullet list, current business service arrangement and returns
and to Step 3 to select the next Card Program
Identifier/Business Service Arrangement
• the Card Program Identifier associated with
combination. This is because ATM transactions
this entry is other than CIR,
involving Mastercard Electronic cards must qualify
• the transaction is an ATM transaction (DE 3 for a business service that supports Cirrus.
[Processing Code], subfield 1 [Cardholder
Transaction Type], value of 1), and
• at least one entry for this account range in
table IP0040T1 contains a Global Clearing
Management System Product ID of MCE, MEC,
or MBE (denoting a Mastercard Electronic
account range).

Step 9: Validate CAB Programs for the IRD

Global Clearing Management System looks up the value in DE 26 (Card Acceptor Business
Code/MCC) of the transaction in table IP0075T1. There may be more than one entry in table
IP0075T1 for the DE 26 value.
For each entry in table IP0075T1 applicable to the DE 26 value, Global Clearing Management
System obtains the related Card Acceptor Business (CAB) Program for use in table IP0095T1.
Global Clearing Management System then looks up the combination of Card Program
Identifier, Business Service Arrangement Type, Business Service ID, interchange rate desigator

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Global Clearing Management System Reference Manual • 15 October 2019 202
 Business Service
Step 10: Validate Transaction Currency for the Business Service

(IRD), and Card Acceptor Business (CAB) Program, in table IP0095T1. As with Step 8 (Validate
Product Codes for the IRD), GCMS searches for a masked value in table IP0087T1. If found,
Global Clearing Management System uses Masked Card Program Identifier, Masked Business
Service Arrangement Type, Masked Business Service ID, and Masked Interchange Rate
Designator if found in step 8. Spaces are used in the IRD field for look up when IRD validation
is not required as described in Step 6.
If there is no entry in table IP0087T1 that matches all of these values, the Business Service
Arrangement is not masked, and the Global Clearing Management System performs table
IP0095T1 look-up using the actual Card Program Identifier, Business Service Arrangement
Type, Business Service ID, IRD, and Card Acceptor Business (CAB) Program values.
If table IP0095T1 has an entry that matches all of these values, Global Clearing Management
System proceeds to Step 10 to continue validating the business service.
Otherwise, Global Clearing Management System returns to table IP0075T1 and obtains the
next table IP0075T1 entry for the DE 26 value and looks up its Card Acceptor Business (CAB)
Program and business service/IRD information in table IP0095T1.
If Global Clearing Management System does not find an entry in table IP0095T1 that matches
the business service arrangement/IRD and any one of the Card Acceptor Business (CAB)
Programs in the relevant table IP0075T1 entries, Global Clearing Management System discards
the current business service arrangement and returns to Step 3 to select the next card
program identifier/business service arrangement combination.

Step 10: Validate Transaction Currency for the Business Service

Currently, Global Clearing Management System performs Step 10 only when both the issuer
and acquirer are in the Europe region. However, this functionality could be made available, if
needed, to customers in other regions.
Global Clearing Management System looks up the combination of Card Program Identifier,
Business Service Arrangement Type, and Business Service ID, in table IP0099T1. To perform
this lookup, Global Clearing Management System uses the actual (unmasked) values for the
card program identifier/business service arrangement combination.
• If table IP0099T1 has no entry for the business service arrangement, Global Clearing
Management System proceeds to Step 11 to continue validating the business service.
• If table IP0099T1 has an entry for the business service arrangement, Global Clearing
Management System obtains the value in the Transaction Currency Code field and
compares it to DE 49 (Currency Code, Transaction) in the message.
If the transaction currencies match, Global Clearing Management System proceeds to Step 11
to continue validating the business service.
Otherwise, Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business service
arrangement combination.

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Global Clearing Management System Reference Manual • 15 October 2019 203
 Business Service
Step 11: Check for Intracountry Business Service Overrides

Step 11: Check for Intracountry Business Service Overrides

Currently, Global Clearing Management System performs Step 11 only when both the issuer
and acquirer are in the Europe region. However, this functionality could be made available, if
needed, to customers in other regions.
For intracountry business services, Global Clearing Management System looks up the
combination of Business Service Arrangement Type, Business Service ID, Issuer Account Range
—Low, and Issuer Account Range—High, in table IP0093T1. To perform this lookup, Global
Clearing Management System uses:
• The actual (unmasked) values for the business service arrangement combination
• The Issuer Account Range—Low and Issuer Account Range—High fields from the relevant
table IP0040T1 entry
If table IP0093T1 has no entry that matches all of these values, Global Clearing Management
System continues processing as described in the Edits and Fee Assignment section of this
chapter.
If table IP0093T1 has an entry that matches all of these values and the Card Program Identifier
of the card program identifier/business service arrangement being validated is MSI (Maestro)
or CIR (Cirrus), Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business service
arrangement combination.
If table IP0093T1 has an entry that matches all of these values and the Card Program Identifier
being validated is other than MSI or CIR, Global Clearing Management System checks that the
issuing account range country code (found in table IP0040T1) and the merchant country code
(found in DE 43 [Card Acceptor Name/Location], subfield 6 [Card Acceptor Country Code] of
the transaction) are the same.
• If so, Global Clearing Management System continues processing as described in the Edits
and Fee Assignment subsection of this section.
• Otherwise, Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business
service arrangement combination.

Enforcement of Business Service Arrangements

Mastercard will enforce the use of the Business Service Arrangement for First Presentment/
1240 and optionally life cycled transactions between acquirers and issuers.
If all customers in a country have agreed to participate in the pricing agreement, Mastercard is
obliged to ensure that applicable transactions receive that pricing.
The Business Service Selection Enforcement Code will be set to F (Business Service
Arrangement is mandatory for First Presentment/1240 messages) for designated Business
Service Arrangements.
This means that First Presentment/1240 transactions occurring between an acquirer BIN and
an issuer account range associated with the intracountry Business Service Arrangements
whose Business Service Selection Enforcement Code has been set to F (mandatory Business

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Default Business Service Arrangements

Service Arrangement) must be submitted for an interchange program that is valid for that
intracountry Business Service Arrangement.
If Global Clearing Management System processes a First Presentment/1240 transaction
occurring between an acquirer and an issuer, and it is submitted with an IRD that does not
qualify for the intracountry Business Service Arrangement but qualifies for a less restrictive
business service such as the regional business Service Arrangement, Global Clearing
Management System will reject the transaction with the following error codes:
• 2425—PDS 0158 (Business Activity), subfield 4 (Interchange Rate Designator) is not valid
for enforced Business Service Arrangement and Acceptance Brand ID code.
• 2451—Submitted Business Service Arrangement is not valid. Must be submitted for
enforced Business Service Arrangement.
First Chargeback/1442, Second Presentment/1240, or Arbitration Chargeback/1442
transactions that contain an IRD that applies to the respective regional Business Service
Arrangement will still be permitted.
The Business Service Selection Enforcement Code does not apply to the following
transactions:
• Fee Collection/1740 messages. Existing functionality as it pertains to Fee Collection/1740
messages remains unchanged.
• Global Collection Only (On-Us and intraprocessor) transactions
• Transactions qualifying for an intracountry Business Service Arrangement submitted with an
airline card acceptor business code (MCC in the range of 3000 to 3299)
Countries with established Business Service Arrangements fall into one of two Business Service
Arrangement categories. Default or Non-Default.

Default Business Service Arrangements

Intracountry Business Service Arrangements have been set up in Global Clearing Management
System. These arrangements are established as default, which means that all acquiring BINs
and all issuing account ranges identified for this country are automatically included as
participants.
Their participation in the enforced intracountry business service arrangement program will be
finalized once the business service arrangement enforcement code has been updated from
space (default value, not a mandatory business service arrangement) to F (mandatory business
service arrangement).

Life Cycle Processing Supported by Global Clearing Management System

Global Clearing Management System supports life cycle activity processing when changes are
made to certain system parameters or qualification parameters for card program identifiers,
business service arrangements, and interchange rate designators (IRDs). This allows reversals
and exception items such as chargebacks and retrievals to continue to be processed with the
original settings, while new activity (such as First Presentment-originals) is processed using the
new settings.

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Life Cycle Processing Supported by Global Clearing Management System

A Life Cycle Indicator is associated with specific qualification parameters, which Global
Clearing Management System uses to determine the valid messages (MTI/Function Code/
Processing Code/Reversal Indicator combinations) for a given parameter. The Life Cycle
Indicator codes associated with each parameter are as follows.

Code Description
A All transaction types are valid.

L Only Life Cycle transactions are valid.

A Life Cycle Indicator parameter exists in the following IPM MPE tables and associated
parameters.

Table ID Name Life cycle indicator added to parameter

IP0036T1 Default Business Service For combination of card program identifier/
business service arrangement type/business service
arrangement ID

IP0056T1 Customer Business Service For combination of card program identifier/

Arrangement Participation business service arrangement type/business service
arrangement ID/customer ID

IP0075T1 Card Acceptor Business Codes Card Acceptor Business Code

(MCCs)

IP0075T1 Card Acceptor Business Codes Card Acceptor Business Program

(MCCs)

IP0076T1 Mastercard Assigned IDs Mastercard Assigned IDs

IP0090T1 Issuer Account Range Card For combination of card program identifier/
Program Identifier and Business business service arrangement type/business service
Service Arrangement Participation arrangement ID/issuer account range-low/issuer
account range-high

IP0091T1 Acquiring BIN Card Program For combination of card program identifier/
Identifier and Business Service business service arrangement type/business service
Arrangement Participation arrangement ID/acquiring BIN

IP0096T1 Card Program Identifier/Product Global Clearing Management System Product ID

Restrictions
For combination of card program identifier/
business service arrangement type/business service
arrangement ID/interchange rate designator

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Life Cycle Processing Supported by Global Clearing Management System

Table ID Name Life cycle indicator added to parameter

IP0094T1 Geographic Restrictions for Card Country Code
Program Identifier/Business
For combination of card program identifier/
Service Arrangement
business service arrangement type/business service
arrangement ID

IP0094T1 Geographic Restrictions for Card Region

Program Identifier/Business
For combination of card program identifier/
Service Arrangement
business service arrangement type/business service
arrangement ID

IP0095T1 Card Acceptor Business Program Card Acceptor Business (CAB) Program
Restrictions (new)
For combination of card program identifier/
business service arrangement type/business service
arrangement ID/interchange rate designator

When a parameter has a life cycle indicator of L, only life cycle transactions, as defined by
Mastercard, are valid for the parameter value.
Example
A business service arrangement has the following setup for CAB programs:
CAB Program Setup for Business Service Arrangement 4/123456

CAB Program Life Cycle Indicator

V001 A = All

A001 L = Life Cycle Only

In the above example, the CAB Program value for A001 has a Life Cycle Indicator value of L-
Life Cycle Only. In this instance, Global Clearing Management System will accept transactions
that are defined as life cycle transactions only if the card acceptor business code in DE 26 is
assigned to the A001 CAB program.
The following table indicates the transaction types that are defined by Mastercard as life cycle
transactions:

MTI Function Code Processing Code Reversal Indicator

1240 200 All Processing Codes R

1240 205 All Processing Codes All Reversal Indicator values

1240 282 All Processing Codes All Reversal Indicator values

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Global Clearing Management System Edits, Fee Assignments, and Fee Calculation

MTI Function Code Processing Code Reversal Indicator

1442 450 All Processing Codes All Reversal Indicator values

1442 451 All Processing Codes All Reversal Indicator values

1442 453 All Processing Codes All Reversal Indicator values

1442 454 All Processing Codes All Reversal Indicator values

1644 603 All Processing Codes All Reversal Indicator values

1740 700 All Processing Codes All Reversal Indicator values

1740 780 All Processing Codes All Reversal Indicator values

1740 781 All Processing Codes All Reversal Indicator values

1740 782 All Processing Codes All Reversal Indicator values

Global Clearing Management System Edits, Fee Assignments, and Fee Calculation
This section describes Global Clearing Management System edits, fee assignments, and fee
calculation.

Edits
The IP2nnT1 series tables contain valid values based on card program identifier/business
service arrangement combination. After Global Clearing Management System assigns a
specific card program identifier/business service arrangement combination, Global Clearing
Management System may perform edits that require specific valid values depending on the
business service. For these types of edits, Global Clearing Management System uses the
IP2nnnT1 table entries that contain specific values in the Card Program Identifier, Business
Service Arrangement Type, and Business Service ID fields. Valid-value edits that are not specific
to a business service arrangement are performed using the default values of spaces and zeros
in the card program identifier/business service arrangement combination fields.
Global Clearing Management System also performs other edits, depending on the business
service assigned, and does not use the IPM MPE for these edits.
If the transaction fails any edits, Global Clearing Management System rejects the transaction.
Otherwise, Global Clearing Management System continues processing and determines the
fees applicable to the transaction.

Fee Assignment
Global Clearing Management System looks up the transaction and business service
information in table IP0052T1. Table IP0052T1 contains pointers to tables IP0053T1 and
IP0057T1. Table IP0053T1 contains the fee groups that are assigned to the transaction. Table
IP0057T1 contains override pointers to table IP0053T1.

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 Business Service
Global Clearing Management System Edits, Fee Assignments, and Fee Calculation

Global Clearing Management System already looked up the Card Program Identifier, Business
Service Arrangement Type, Business Service ID, IRD, message type identifier (MTI), Function
Code, and Processing Code information in table IP0052T1, in step 7 of this process. Global
Clearing Management System now looks at the fee code pointer information in the table
IP0052T1 entry.
If the IP0052T1 field Product Class—Card Acceptor Override Pointer contains all zeros, Global
Clearing Management System disregards it and instead looks up the value from table
IP0052T1 Fee Code Pointer in the Fee Code Pointer field in table IP0053T1. Global Clearing
Management System then calculates the fees as described in the Fee Calculation section of
this article.
If the IP0052T1 field Product Class—Card Acceptor Override Pointer contains a non-zero
value, it indicates that an override may exist for the interchange rate and represents a pointer
to table IP0057T1.
Global Clearing Management System searches table IP0057T1 in accordance with the pointer
obtained from table IP0052T1. Each pointer may have multiple entries. The multiple entries
represent a number of different override rates that can be applied. On the basis of a
predetermined hierarchy, Global Clearing Management System searches until the first
matching entry is found. If no match is found, no override applies.
The criteria combinations are listed below in hierarchical order of selection:
1. The Mastercard Assigned ID, in combination with the product class and MCC
2. The Mastercard Assigned ID, in combination with the product class and card acceptor
business type
3. The Mastercard Assigned ID, in combination with the product class
4. The Mastercard Assigned ID, in combination with MCC
5. The Mastercard Assigned ID, in combination with the card acceptor business type
6. The Mastercard Assigned ID
7. The product class, in combination with MCC
8. The product class, in combination with the card acceptor business type
9. MCC
10. The card acceptor business type
11. The product class
If Global Clearing Management System finds an entry in table IP0057T1 that matches the
combination of one of the criteria listed in the hierarchy above, Global Clearing Management
System then looks up the value from that table IP0057T1 entry’s Fee Code Pointer in the Fee
Code Pointer field in table IP0053T1. Global Clearing Management System then applies the
appropriate rate types and calculates the fees as described in the Fee Calculation section of
this manual.
If Global Clearing Management System does not find an entry in table IP0057T1 that matches
the combination of one of the criteria listed in the hierarchy above, Global Clearing
Management System uses the base rate. Global Clearing Management System then calculates
the fees as described in the Fee Calculation section of this manual.

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Global Clearing Management System Edits, Fee Assignments, and Fee Calculation

Fee Calculation
Table IP0053T1 contains multiple entries for the same Fee Code Pointer. Each entry contains
the Payment Party (issuer, acquirer, or internal entity), the interchange rate (if applicable) and
rate direction, the interchange unit fee (if applicable) and its direction, the currency code and
exponent for the unit fee (if applicable), and any minimum or maximum fee limits and
direction.

NOTE:
The IPM MPE file does not provide the rates and fees for Customer-to-Customer business
service arrangements, because this information is proprietary. The Customer-to-Customer
business service arrangement and IRD parameters are stored in the IPM MPE file, but the Fee
Code Pointer and Product Class—Card Acceptor Override Pointer fields in table IP0052T1 that
normally point to the correct fee entries in tables IP0057T1, IP0053T1, or both, contain all
zeros for Customer-to-Customer arrangements.

The table IP0053T1 entries are grouped by Rate Type. For example, Rate Type 001 is the
interchange fee and Rate Type 014 is the first-level corporate incentive discount (currently
applies only to intra-European and inter-European transactions). For Rate Types other than
001, Global Clearing Management System determines whether to apply the fees according to
internal programming logic. For example, Global Clearing Management System applies the
Rate Type 014 first-level corporate incentive discount only if the transaction is accompanied by
the required addendum elements. Participating customers understand the conditions in which
the various Rate Types apply to business service arrangements in which they participate.
The Rate Types are as follows:
• 000—Cash Advance Fee (applies to manual cash disbursement transactions)
• 001—Interchange Fee
• 002—Merchant Investment Fee
• 010—IVA on interchange fee (specific to Mexico processing)
• 013—ATM Late Presentment Fee (Currently specific to Europe processing. Applies to non-
reversal First Presentment ATM transactions for which the transaction date is older than 45
days.
• 014—First-level Corporate incentive discount (applies when one corporate IRD can have
different rates, depending on the presence of valid addendum data. Currently specific to
Europe processing)
• 015—Purchase with Cash Back (applies only to the cash back portion of a purchase with
cash back transaction)
• 016—Rewards Program
• 017—Second-level Corporate Incentive discount (applies when the transaction qualifies for
neither the First-level Corporate incentive discount nor the U.K. Summary VAT Incentive
discount, but the acquirer provides information in PDS 0502 [Custom Identifier]. Currently
specific to Europe processing)
• 018—New UK Summary VAT Incentive Interchange (applies when the transaction does not
qualify for the First-level Corporate Incentive discount, but the acquirer submits the data

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Global Clearing Management System Edits, Fee Assignments, and Fee Calculation

needed for Mastercard to generate the U.K. Summary VAT Invoice on behalf of the
merchant. Required data is:
– PDS 0508 [Customer Code]
– PDS 0596 [Card Acceptor Tax ID], in which subfield 1 [Card Acceptor Tax ID] contains
the correct tax ID and subfield 2 [Card Acceptor Tax ID Provided Code] contains value Y
– PDS 0597 [Total Tax Amount]
– PDS 0600 [Card Acceptor Reference Number]
– PDS 0641 [Product Code]
– PDS 0642 [Item Description]
– PDS 0647 [Extended Item Amount], with a non-zero value
– PDS 0682 [Detail Tax Amount 1])
• 019—Merchant Interchange
• 020—Europe Enhanced Value

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 Settlement Service

Chapter 12 Settlement Service

This chapter defines the settlement service, various settlement service levels, and how Global
Clearing Management System supports the settlement services.

Definition of Settlement Service.................................................................................................. 213

Calculating Net Positions........................................................................................................ 214
Settlement Service Levels............................................................................................................ 214
Settlement Service Selection Process........................................................................................... 216
Settlement Service Selection................................................................................................... 217
Settlement Service Parameters................................................................................................218
Settlement Service Participation and Criteria Selection............................................................ 219
Intracurrency Settlement Service Selection.............................................................................. 220
Regional Settlement Service Selection.....................................................................................223
Settlement Date Cycle Calculation.............................................................................................. 226
Fee Calculation Routines for Settlement Service Levels................................................................ 226
System-Provided Data in PDS 0159 (Settlement Data)..................................................................227
Settlement Service Advisements.................................................................................................. 228
Customer Settlement Advisements......................................................................................... 228

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 Settlement Service
Definition of Settlement Service

Definition of Settlement Service

Mastercard’s settlement services provide the method by which Mastercard and customers
transfer funds to complete settlement for clearing and billing activities.
A settlement service is a facility within which funds are exchanged between customers and
Mastercard to settle transaction and fee amounts Each settlement service supports a
reconciliation currency that Mastercard and its customers may exchange. Refer to the
Settlement Manual for details about each settlement service.
Reconciliation currency is the currency in which a customer is paid or pays for the settlement
of its activity. Reconciliation currency also is referred to as payment currency or settlement
currency.

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 Settlement Service
Calculating Net Positions

Calculating Net Positions

This diagram shows how Mastercard settles transactions among four customers—A, B, C, and
D.

Settlement Service Levels

Mastercard requires each customer to select the settlement service levels in which it wants to
participate and to maintain a settlement account in the appropriate currency. The following
explains settlement service functionality, which allows customers to customize settlement
processing criteria for their transaction data.
The Global Clearing Management System will determine the settlement service, account, and
associated currency for each payment party according to customer selected options.
Customers choose the settlement service levels and corresponding reconciliation currency that
they want to support their specific settlement needs. Customers optionally may designate

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 Settlement Service
Settlement Service Levels

their participation in specific settlement services; however, all customers are required to
participate in at least one regional settlement service. Clearing activity between two customers
usually is settled at the lowest possible common settlement service level. If a customer pair
does not settle in a common settlement service, the customers settle at their respective
regional settlement service accounts. The defined regional default service for the customer will
be used if no other settlement service can be applied to the transaction.
Global Clearing Management System supports the settlement service levels listed in the
following table.

Settlement
Service Level Description
Bilateral Customers participating in a bilateral agreement instruct Mastercard to clear their
transactions through Global Clearing Management System applying all
appropriate business rules. The customers settle these transactions directly rather
than through the Mastercard Settlement Account Management (S.A.M.) system.

Intracurrency Customers participating in an intracurrency settlement service adhere to a

common settlement calendar, settlement cutoff, and reconciliation currency for
their transactions. Mastercard settles these transactions for both parties on the
same day. Interchange fees are calculated in the reconciliation currency,
minimizing currency conversion impacts to the customers participating in the
intracurrency settlement agreement.
Customers that participate in intracountry interchange may settle transactions
through intracurrency settlement services or regional settlement services.
Transactions that qualify for intracountry interchange, but not intracurrency
settlement service, are processed as regional settlement transactions; however,
intracountry interchange is still applied.
A customer ID may participate in multiple intracurrency settlement services. The
participating customers must all agree on one reconciliation currency for each
intracurrency service.
Intracurrency settlement is an optional settlement service, and Mastercard must
approve any agreements.

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 Settlement Service
Settlement Service Selection Process

Settlement
Service Level Description
Regional A settlement agreement involving customers that may settle in different currencies
and that may use different settlement banks. This is the default agreement; that is,
transactions settled by Mastercard that do not qualify for intracurrency settlement
are automatically settled in a regional settlement service. Transactions that qualify
for regional settlement are settled in U.S. dollars or a local currency approved by
Mastercard, at a settlement bank defined by Mastercard.
Each customer ID must participate in at least one regional settlement service. If a
customer participates in more than one regional settlement service, it must
designate one regional settlement service as the default service, with no selection
criteria. For the other regional settlement services, the customer must define
specific settlement service selection criteria to indicate the circumstances in which
Global Clearing Management System should select each of the other regional
services.

Base currency is the currency that Mastercard uses as the basis for settlement calculations. All
transaction currencies are converted against this currency when determining the customer
reconciliation amount in the reconciliation currency. Summing all reconciliation amounts in
base reconciliation currency will net to zero.
Customers may specify more than one account within each settlement service to segregate
settlement activity according to criteria within the transaction, such as card program, account
range, or BIN. However, each account must be in the currency supported by the agreement.

NOTE: The Global Settlement Services department must approve all settlement arrangements
requested by a customer.

Settlement Service Selection Process

The hierarchy for settlement service selection is bilateral, intracurrency, then regional.
The settlement service selection process evaluates customer participation in this order. If no
intracurrency settlement service agreement exists in which both customers participate,
Mastercard assigns each payment party’s regional settlement service and account information.
Transactions are qualified for a settlement service agreement that is in effect at the time that
Global Clearing Management System processes the transaction. For financial exception items
(chargebacks, second presentments, and fee collections) this may result in the assignment of a
different settlement service from the time that Global Clearing Management System originally
processed the transaction as a first presentment.
If, during the settlement service selection process, it is determined that the transaction
qualifies for multiple settlement services within the same level, Global Clearing Management
System will use the parameters with the most specific matching criteria; otherwise, the
parameters with the most recent effective date and time are used.

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 Settlement Service
Settlement Service Selection

To illustrate the settlement service selection process, assume that the following customers
participate in settlement service agreements, with no additional criteria specified, as shown in
the following table.

Customer Intracurrency Regional

001234 X X

005678 X X

009876 X

Assume that customers 001234 and 005678 participate in the same intracurrency settlement
agreement.
According to the information above, the following settlement services would be selected:
Transactions from 001234 to/from 005678⇛ Intracurrency settlement
Transactions from 005678 to/from 009876⇛ Regional settlement
Transactions from 009876 to/from 001234⇛ Regional settlement

Settlement Service Selection

Customers optionally may use the following elements to specify how Global Clearing
Management System should select the settlement service and associated account for their
submitted clearing data.
• PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)
• Account Range (DE 2 [Primary Account Number])
• DE 31 (Acquirer Reference Data), subfield 2 (Acquirer Reference ID)
• Issuing/Acquiring Activity (message type identifier [MTI] plus DE 24 [Function Code])
Settlement service selection criteria are communicated to Mastercard through the Net
Settlement Information Form (Form 0339). These options may be applied for either of the
Global Clearing Management System supported settlement service levels: intracurrency and
regional.

NOTE: Global Clearing Management System does not perform settlement service selection for
Global Collection Only transactions because these transactions are submitted for reporting
purposes only.

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 Settlement Service
Settlement Service Parameters

Settlement Service Parameters

Customers may use optional parameters to specify how Global Clearing Management System
should select the settlement account associated to the settlement service for their submitted
clearing data.

IPM Parameter Element Usage

Card Program Identifier PDS 0158 (Business If selected by the customer, this may be used for
Activity), subfield 1 settlement service/TAA selection.
(Card Program
Identifier)

Account Range Derived from DE 2 If selected by the customer, this may be used for
(Primary Account the settlement service/TAA selection.
Number [PAN])
This element identifies the account range
associated with the cardholder account number
of the transaction.

Acquiring BIN DE 31 (Acquirer If selected by the customer, this may be used for
Reference Data), settlement service/TAA selection.
subfield 2 (Acquirer
This element identifies the acquiring BIN
Reference ID)
associated with the acquirer of the transaction.

Issuing/Acquiring/Both Transaction Function If selected by the customer, this may be used for
Activity (MTI plus DE 24 settlement service/TAA selection.
[Function Code])
The transaction function is used to classify a
transaction as issuing and acquiring activity.
Fee collection messages are considered an
acquirer transaction for the sending ICA when
this option is used.

NOTE: The customer’s transfer agent (TA) may be the customer or a separate entity that the
customer authorizes to settle with Mastercard on its behalf.

A TAA is a combination of the customer’s transfer agent (TA) and the customer bank account
number.
The following is an example of the settlement service selection process. Assume both
customers participate in an intracurrency service using Canada Dollars (CAD) as the
reconciliation currency. Customer ID 001234 is both an issuer and an acquirer. This customer
has criteria established for the Intracurrency 1 settlement service. The customer chooses to
settle only its issuing activity submitted with an assigned card program identifier of Mastercard
Credit (MCC). Customer ID 005678 is an issuer only and has not specified criteria in order for
transactions to qualify in this service.

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 Settlement Service
Settlement Service Participation and Criteria Selection

The transaction is a First Presentment/1240 message and assigned a card program identifier of
MCC. The transaction is sent by customer ID 001234 and received by customer ID 005678.

Settlement Iss/Acq
Customer Service CPI Acct Rg Acq BIN Act TAA Txn Qualify
001234 Intracurrency 1 MCC — — Issuing 11111 No
CAD

005678 — — — — 22222 Yes

Transaction meets criteria for ✓ — — No — No

each customer?

Global Clearing Management System determines the classification of acquiring activity or

issuing activity based on customer ID (sending or receiving) within the message:
• Sending—DE 94 (Transaction Originator Institution ID Code)
• Receiving—DE 93 (Transaction Destination Institution ID)
In first presentments the sending customer is identified as the acquirer and the receiving
customer is identified as the issuer.
In the example above, the transaction does not qualify for the service, because it did not meet
the criteria of customer ID 001234 that only its issuing activity should be settled within this
service. Since customer ID 001234 is sending the first presentment, it is acting in the capacity
of an acquirer.
In first chargebacks, the sending customer is identified as the issuer and the receiving
customer is identified as the acquirer.
In the example above, the transaction qualifies for the service, because it meets the customer’s
criteria that only its issuing activity should be settled within this service. Since customer ID
001234 is sending the first chargeback, it is acting in the capacity of an issuer.

Settlement Service Participation and Criteria Selection

Customers designate new or changed settlement account information using the Net
Settlement Information Form (NSIF) (Form 0339). Customers may also select criteria by which
Mastercard will select an appropriate settlement service and transfer agent assignment for
their transactions.
These criteria will be on the NSIF. Selection criteria for existing settlement services or accounts
may be submitted using the NSIF. The Net Settlement Agreement (NSA) is in the Settlement
Manual.
The bilateral and intracurrency settlement agreement information is distributed to customers
through the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE).
Customers can use this information as the selection criteria in their own settlement service

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 Settlement Service
Intracurrency Settlement Service Selection

selection process. For example, by using the selection criteria, customers determine when they
can submit chargeback transactions in their local currency as opposed to U.S. dollars.

Intracurrency Settlement Service Selection

Global Clearing Management System will verify the possible intracurrency settlement services
in which both the sending and receiving customers participate. All criteria associated with
each customer’s participation are also used in the selection process.
The following information is applicable for customers participating in an intracurrency
settlement service agreement. Customers who do not participate in an intracurrency
settlement service agreement may disregard this section.
Intracurrency settlement service level specific features include the following:
• A common settlement currency used for all payment parties
• A common settlement calendar used for all payment parties
• A common settlement cutoff(s) used for all payment parties
• A common settlement date interval used for all payment parties
• A common value date interval used for all payment parties
Step 1—Settlement Service Selection
Global Clearing Management System compares the possible intracurrency settlement services
in which both the sender and receiver participate to determine whether there are any
common intracurrency settlement service agreements, as follows:
• If the customer pair has only one common intracurrency settlement service agreement, that
service is selected and used in the subsequent validation process.
• If the customer pair has multiple common intracurrency settlement service agreements, the
common settlement service agreement with the most specific matching criteria is selected.
Otherwise, the common settlement service agreement with the most recent effective date
is selected and used in the subsequent validation process.
Example 1
Customer 001234 and customer 005678 both participate in intracurrency settlement
agreements with the specified criteria in the following table.

Settlement
Customer Service ID CPI Acct Rg Acq BIN Iss/Acq Act Effective Date
001234 Intracurrency 1 Not Not Not Not Specified 1 Dec 2003
Specified Specified Specified

Intracurrency 2 MCC Not Not Not Specified 15 May 2004

Specified Specified

005678 Intracurrency 1 Not Not Not Not Specified 1 Dec 2003

Specified Specified Specified

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Intracurrency Settlement Service Selection

Settlement
Customer Service ID CPI Acct Rg Acq BIN Iss/Acq Act Effective Date
Intracurrency 2 MCC Not Not Not Specified 15 May 2004
Specified Specified

009012 Intracurrency 3 Not Not Not Not Specified 1 Dec 2003

Specified Specified Specified

Transactions submitted between customer 001234 and customer 005678 with an assigned
card program identifier of MCC and processed on or after May 15th 2004, will be qualified
for the Intracurrency 2 settlement agreement. These transactions could be qualified for either
the Intracurrency 1 or the Intracurrency 2 settlement service agreement. However, the
Intracurrency 2 agreement specifying all transactions with an assigned card program identifier
of MCC contains more specific criteria, and is thus the selected settlement service agreement.
Transactions submitted between customer 001234 and customer 005678 with an assigned
card program identifier other than MCC will be qualified for the Intracurrency 1 settlement
agreement.
Transactions submitted between customer 001234 and customer 009012 do not have an
intracurrency settlement agreement in common and, therefore, would use the regional
settlement service selection.
Example 2
Customer 001234 and customer 005678 both participate in intracurrency settlement
agreements with the specified criteria in the following table.

Settlement Iss/Acq
Customer Service ID CPI Acct Rg Acq BIN Act Effective Date
001234 Intracurrency 1 Not Not Not Not 1 Dec 2003
Specified Specified Specified Specified

Intracurrency 2 Not Not Not Not 15 May 2004

Specified Specified Specified Specified

005678 Intracurrency 1 Not Not Not Not 1 Dec 2003

Specified Specified Specified Specified

Intracurrency 2 Not Not Not Not 15 May 2004

Specified Specified Specified Specified

Transactions submitted between customer 001234 and customer 005678 on or after 15 May
2004 could be qualified for either the Intracurrency 1 or the Intracurrency 2 settlement
agreement. There are no criteria for either service to help the system decide. Therefore, the

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 Settlement Service
Intracurrency Settlement Service Selection

selection process will use the most recent effective date and qualify transactions between
these customers in the Intracurrency 2 service.
The above example (Example 2) is included to explain Global Clearing Management System
functionality. In reality, customers would add specific criteria to one of these settlement service
selection setups, or delete one, instead of defining two settlement services with no selection
criteria.
Step 2—Settlement Service and TAA Selection
For each payment party (the sender and the receiver), identify all transfer agent assignments
that meet each customer’s criteria specified within the common settlement services identified
in Step 1.
Step 2a—Settlement Service and Issuer TAA Selection
Settlement service is assigned according to one of the following:
• If there is only one intracurrency settlement service in common and only one TAA for each
payment party that matches the transaction data, Global Clearing Management System
assigns that settlement service and TAA combination to the transaction for each payment
party.
• If there are multiple settlement services and/or TAA combinations with customized
assignment criteria that match the transaction data, the issuing customer’s assignment that
has the most specific criteria matching the transaction is used to determine the service and
the issuing customer TAA.
• If there are multiple TAA assignments for the issuing customer that match the transaction
data, the assignment with the most recent effective date is used.
Step 2b—Acquirer TAA Selection
Once the settlement service and TAA are assigned for the issuing customer, the acquiring
customer’s TAA is selected from those identified within the selected settlement service that
match the transaction criteria:
• If there is only one TAA for the acquirer within the selected settlement service, that
assignment is used for the acquirer’s settlement.
• If there are multiple TAA combinations with customized assignment criteria that match the
transaction data, the assignment that has the most specific criteria matching the
transaction is used to determine the acquiring customer’s TAA.
• If there are multiple TAA assignments for the acquiring customer that match the
transaction data, the assignment with the most recent effective date is used.
Example
To illustrate the TAA selection process, assume that both customers participate in the
Intracurrency 1 service and that customer 001234 is the issuing customer with the specified
criteria shown in the following table.

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 Settlement Service
Regional Settlement Service Selection

Settlement TAA Acct Iss/ Acq Effective

Service ID Customer and Cur CPI Acct Rg Acq BIN Act Date
Intracurrency 1 XXXX, Not Not Not
001234 HKD DMC Specified Specified Specified 1 Dec 2004

Intracurrency 2 YYYY, Not Not Not

001234 HKD MCC Specified Specified Specified 1 Jan 2004

Intracurrency 2 ZZZZ, MCC, Not Not Not

001234 HKD MSI Specified Specified Specified 1 Feb 2004

Intracurrency 1 AAAA, MCC, Not Not Not 1 Mar

005678 HKD MSI Specified Specified Specified 2004

Intracurrency 2 BBBB, Not Not Not

005678 HKD MCC Specified Specified Specified 1 Jan 2004

Intracurrency 2 CCCC, Not Not Not Not

005678 HKD Specified Specified Specified Specified 1 Feb 2004

Transactions submitted with a transaction currency of HKD that are assigned a card program
identifier of MCC will be assigned the settlement service ID Intracurrency 2 for both
customers, and TAA of ZZZ for customer 001234 because it is the assignment with the most
recent effective date. Because the transaction meets both of the acquirer’s TAA criteria for the
Intracurrency 2 agreement, the TAA of BBBB would be chosen because it has the acquirer’s
most specific criteria that match the transaction.
Step 3—Transaction Amount and Fee Calculation
The transaction amount is converted to the intracurrency account currency (reconciliation
currency), if necessary. Additionally, the interchange fees are calculated in the intracurrency
account currency (reconciliation currency).

Regional Settlement Service Selection

Regional settlement services are qualified independently and do not require both the sender
and receiver to participate in the same regional level settlement service. If the transaction does
not qualify for intracurrency settlement, it is qualified for settlement at the regional level.
The regional settlement service level specific features include the following:
• Each regional service specifies a settlement calendar.
• Each regional service specifies settlement cutoff time(s).
• Each regional service specifies a settlement date interval.
• Each regional service specifies a settlement value date interval.
Step 1—Settlement Service and Transfer Agent Assignment (TAA) Selection

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 Settlement Service
Regional Settlement Service Selection

The settlement service selection process described in the previous section does not apply to
transactions processed at the regional settlement service level. Regional level services are
qualified independently for the sender and receiver against the customer’s specified criteria, as
follows:
• If only one regional settlement service and TAA combination is established for a payment
party that matches the transaction data, Global Clearing Management System assigns that
TAA and account currency to the transaction.
• If multiple settlement services and/or TAAs are established with customized assignment
criteria for a payment party that matches the transaction data, Global Clearing
Management System assigns the settlement service and TAA combination with the most
specific criteria. If more than one settlement service and TAA combination have the same
level of specificity, the TAA with the most recent effective date is selected.
• The default settlement service and TAA are selected when no selection criteria are defined
that match the transaction.
Example 1
To illustrate the service selection process, assume that a customer participates in settlement
service agreements with the specified selection criteria shown in the following table.

Settlement TAA Acct

Customer Service ID and Cur CPI Acct Rg Acq BIN Iss/Acq Act
001234 Regional 1 XXXX, USD Not Not Not Specified Not Specified
Specified Specified

001234 Regional 2 YYYY, CAD MCC Not Not Specified Not Specified
Specified

Transactions submitted with an assigned card program identifier of MCC will be assigned the
settlement service ID Regional 2 and account YYYY because it has the most specific criteria
that match the transaction. Transactions submitted with an assigned card program identifier
other than MCC would be assigned to the settlement service ID Regional 1 and account
XXXX.
Example 2
To illustrate the settlement service TAA account selection process, assume that a customer
participates in the regional settlement service agreements as specified in the following table.

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 Settlement Service
Regional Settlement Service Selection

Settlement TAA Acct Iss/Acq Effective

Customer Service ID and Cur CPI Acct Rg Acq BIN Act Date
005678 Regional 1 VVVV, USD MCC Not Not Issuing 1 Jan 2004
Specifie Specified
d

Regional 1 XXXX, USD DMC Not Not Issuing 15 Jan 2004

Specifie Specified
d

Regional 2 YYYY, CAD Not Not Not Acquiring 1 Jan 2004

Specified Specifie Specified
d

Regional 2 ZZZZ, CAD Not Not Not Acquiring 15 Jan 2004

Specified Specifie Specified
d

Regional 3 AAAA, USD Not Not Not Not 1 Jan 2004

Specified Specifie Specified Specified
d

The optional settlement service selection criteria defined above can have multiple occurrences
per customer and are used to determine or restrict settlement account selection. Each unique
grouping represents the criteria used to select a specific customer ID, TA, and TAA
combination. The more specific the criteria defined by the customer, the more combinations
of customer ID, TA, and TAA will exist.
Customer 005678 is an issuer or acquirer. In this example, all issuing transactions with a card
program identifier of MCC or DMC and a transaction currency of USD will be settled in USD
through the Regional 1 service. However, transactions with a card program identifier of MCC
will be settled using VVVV and transactions with DMC will be settled using account XXXX. All
acquiring transactions will be settled in CAD through the Regional 2 service in account YYYY
before 15 Jan 2004 and will be settled in account ZZZZ on or after 15 Jan 2004. All other
issuing transactions will settle in USD through the Regional 3 Service in account AAAA.
Step 2—Transaction Amount and Fee Calculation
The transaction amount is converted through U.S. dollars to the TAA account currency
(reconciliation currency). Interchange fees are calculated in U.S. dollars and converted to each
TAA account currency.

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 Settlement Service
Settlement Date Cycle Calculation

Settlement Date Cycle Calculation

Once the appropriate settlement service has been identified for each payment party, the
settlement date is assigned.
The settlement date is the date on which the Mastercard Settlement Account Management
(S.A.M.) system determines the customers’ final net settlement positions and generates the
settlement advisements for customers and transfer agents.
A single transaction may qualify for a different regional settlement service for each payment
party, which may result in the use of a different settlement date for each customer.
Transactions qualifying for the same intracurrency agreements will always result in the same
settlement date for each customer. The settlement date rules include the following:
• If the settlement bank is closed, Global Clearing Management System will not assign that
date as a settlement date. For regional services, the U.S. settlement holidays are used.
• Settlement holiday dates are expressed in relation to Central Site time, from a St. Louis,
Missouri, USA perspective.
• Certain settlement agreements may optionally delay their settlement. Two methods are
used to delay settlement:
– Generate the settlement advisements a specific number of days after the transactions
have been processed. The delayed settlement advisements result in delayed funds
movement.
– Generate the settlement advisements as scheduled, but delay the funds movement by a
specific number of days after the advisement.

NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists for Mexico
domestic switching transactions. For more information on the seven clearing cycles, refer to
the Daily Clearing Cycle Schedule section.

Fee Calculation Routines for Settlement Service Levels

Global Clearing Management System uses the settlement service level to determine the
currency in which to calculate fees. The following table describes how Global Clearing
Management System calculates fees for each settlement service level.

Settlement
Service Level Fee Calculation Method
Intracurrency • Transaction amounts and fixed fees are converted to the reconciliation currency
(if necessary).
• Fees are calculated in the reconciliation currency.
• Fees are converted to U.S. dollars for reporting purposes.

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 Settlement Service
System-Provided Data in PDS 0159 (Settlement Data)

Settlement
Service Level Fee Calculation Method
Regional • Transaction amounts and fixed fees are converted to U.S. dollars (if necessary).
• Fees are calculated in U.S. dollars.
• Transaction amounts and calculated fees are converted to each customer’s
reconciliation currency and remain in U.S. dollars for reporting purposes.

System-Provided Data in PDS 0159 (Settlement Data)

Global Clearing Management System creates PDS 0159 (Settlement Data) in IPM-format
messages sent to the receiving customer to provide reconciliation and settlement information
for each clearing transaction that has settlement impact. This element contains nine subfields.

PDS 0159 Data thatGCMS will

Provide Description
Settlement Service Transfer Agent ID Populated according to the Transfer Agent ID selected for
Code the receiving customer

Settlement Service Transfer Agent Populated according to the Transfer Agent Assignment bank
Account account number for the receiving customer

Settlement Service Level Code 1 = Regional

3 = Intracurrency

Settlement Service ID Code Populated according to the settlement service ID selected

for the receiving customer

Settlement Foreign Exchange Rate Class Populated according to the currency conversion rate type
Code used:

F = Fixed; indicates that a fixed rate was used to

convert from base currency to receiver’s payment
currency

M = Market; indicates that a market rate was used to

convert from base currency to receiver’s payment
currency

N = Not applicable; no conversion performed

Reconciliation Date Populated with the Global Clearing Management System

processing date (located in PDS 0158 [Business Activity],
subfield 5 [Business Date]) associated with the message

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 Settlement Service
Settlement Service Advisements

PDS 0159 Data thatGCMS will

Provide Description
Reconciliation Cycle Populated with the Global Clearing Management System
processing cycle (located in PDS 0158 [Business Activity],
subfield 6 [Business Cycle]) associated with the message

Settlement Date Populated with the date on which net settlement positions
are determined. This date matches the date of the
corresponding Settlement Advisement generated from the
Mastercard Settlement Account Management (S.A.M.)
system.
If Global Clearing Management System assigns a settlement
service in which the customer does not provide the
settlement date, this field contains the appropriate
settlement service date, as calculated by Global Clearing
Management System for the receiving customer.
If Global Clearing Management System assigns a settlement
service in which the customer is required to provide the
settlement date, this field contains the customer submitted
settlement date.
This date is adjusted for each settlement service level and
settlement service ID.

Settlement Cycle Populated with the appropriate settlement service

settlement cycle determined by Global Clearing
Management System

Settlement Service Advisements

Mastercard offers settlement reporting to the customer, the transfer agent, or both. The
customer advisement provides a settlement report for each settlement date and settlement
service. The transfer agent advisement provides a settlement report for each settlement date
and settlement service and itemizes settlement positions by customer.
A unique settlement advisement is generated for each transfer agent assignment (TAA) within
a settlement service. If a customer has the same settlement account designated for multiple
intracurrency and regional settlement services, a unique settlement advisement is generated
for each settlement service.

Customer Settlement Advisements

Customers optionally receive settlement advisements for all settlement positions for clearing
activity resulting from one settlement service date and cutoff cycle.
Customer settlement advisements serve as notification to a customer of outstanding
settlement positions resulting from a settlement service cutoff. This either provides the

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 Settlement Service
Customer Settlement Advisements

customer a method to ensure that appropriate funds are in place to effect settlement or
notifies the customer about funds that will be available.

NOTE: For more information about settlement advisements and the Net Settlement
Information Form (NSIF), refer to the Settlement Manual.

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 Currency Conversion

Chapter 13 Currency Conversion

This chapter describes the currency conversion process, including how Global Clearing
Management System calculates and rounds amounts during currency conversion.

Overview of Currency Conversion Service Performed During Clearing Process............................. 231

Amount and Currency Definitions.......................................................................................... 232
Rates Used for Currency Conversion....................................................................................... 232
Data Elements Calculated During Currency Conversion Process................................................... 234
Currency Conversion for First Presentments Qualifying for Regional Settlement Service...........234
Acquirer Side Data Elements...................................................................................................234
Other Acquirer Calculation Considerations: Computed Cross Rates and Fixed Interchange......242
Issuer Side Data Elements....................................................................................................... 243
Currency Conversion for First Presentments Qualifying for Intracurrency Settlement Service.... 251
Rounding of Global Clearing Management System Currency Conversion................................ 251
Customer Currency Conversion for Chargebacks (All Cycles)....................................................... 252
Customer Requirements for Submitting First Chargeback Amounts........................................ 252
Acquirer Processing of Second Presentments.......................................................................... 256
Processing of Arbitration Chargebacks................................................................................... 256
Currency Conversion of Arbitrations....................................................................................... 257
Currency Conversion for Settlement of Fee Collection Messages................................................. 257
Currency Conversion for Reversals.............................................................................................. 257
Currency Update/1644-640 Messages.........................................................................................258
T057 Currency Conversion Rate File....................................................................................... 259
Acquirer Currency Conversion Rate File....................................................................................... 262
Originating Institution Payment Transaction Currency Conversion Rate File..................................263
Clearing Detail File (IP755120-AA) to Facilitate Acquirer Reconciliation........................................264

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 Currency Conversion
Overview of Currency Conversion Service Performed During Clearing Process

Overview of Currency Conversion Service Performed During Clearing

Process
Currency conversion is a service that Mastercard performs to convert transaction amounts to
cardholder billing amounts and reconciliation amounts whenever the transaction currency is
different from the currency of the cardholder or the currency of reconciliation.
This process enables customers to:
• Acquire transactions in multiple currencies and issue cards that are billed in currencies
preferred by cardholders. For each transaction, Mastercard converts the acquired
transaction amounts from the transaction currency to the issuer-designated cardholder
billing currency.
• Settle in currencies that best align with local business practices of acquirers and issuers.
Mastercard buys and sells currencies to support settlement in multiple currencies for
customers. Mastercard uses currency conversion rates for calculating acquirer and issuer
reconciliation amounts.
Mastercard guarantees the Mastercard-Issued currency conversion rates (refer to definitions
that follow) for each supported currency for each processing day.
The following are terms used in this manual.

Term Description
Base Amount Transaction amount converted to U.S.
dollars.
Computed Cross Rates An exchange rate between two non-
U.S. dollar currencies computed by
reference to the U.S. dollar.
Mastercard-Issued Cross Rates Buy, mid, and sell rates for certain non-
U.S. dollar currency pairs set by
Mastercard (Applies to regional
settlement service only).
Mastercard-Issued USD Rates Buy, mid, and sell rates against the U.S.
dollar set by Mastercard.
Reference Currency Reference currency is quoted as one
unit per a certain amount of foreign
currency.

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 Currency Conversion
Amount and Currency Definitions

NOTE: Currency conversion and foreign exchange are used interchangeably in the context of
the information presented in this chapter.
Reconciliation and settlement are used interchangeably in the context of the information
presented in this chapter.

Amount and Currency Definitions

Definitions of cardholder billing amount and transaction amount are defined here.
• Cardholder Billing Amount: The International Organization for Standardization (ISO) name
for DE 6. Although Mastercard adheres to the ISO name for this data element, the
cardholder billing amount is actually the transaction amount in the currency that has been
designated as the cardholder billing currency by the issuer, which Mastercard transmits to
the issuer in this data element. Issuers have the relationship with the cardholder and
determine the eventual billing to the cardholder.
• Transaction Amount: The ISO name for DE 4, in which Mastercard transmits the transaction
amount. The transaction amount is in the currency appearing on the Transaction
Information Document (TID) in a first presentment. If no currency is identified on the TID,
the transaction is deemed to have occurred in the currency that is legal tender at the point
of interaction.
Refer to the Mastercard Dictionary on Mastercard Connect for other currency-related
definitions.

Rates Used for Currency Conversion

Except as otherwise provided in the Mastercard Standards, Mastercard will convert all
transaction amounts processed through Global Clearing Management System into the
equivalent reconciliation currency amount for settlement. When necessary, Mastercard will
convert the transaction using the appropriate rates to calculate acquirer reconciliation,
cardholder billing, and issuer reconciliation amounts.

NOTE: There may be other arrangements defined for those customers participating in
bilateral agreements. For more information about participation in bilateral agreements, refer
to the Settlement Manual.

Mastercard-Issued USD Rates

The Mastercard-Issued USD Rates support currency conversion involving currencies that are
managed against the U.S. dollar. In this case, the U.S. dollar is considered as the reference
currency. With this manual, the Rate Class M (value M) description will indicate that a
Mastercard-Issued USD Rate was used in the currency conversion process (for example, to
convert from the transaction currency to the cardholder billing and/or reconciliation currency).
For all Mastercard-Issued USD Rates, the U.S. dollar is the Reference Currency whereby the
rates are quoted in units of foreign currency per U.S. dollar.

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 Currency Conversion
Rates Used for Currency Conversion

Mastercard-Issued Cross Rates

The Mastercard-Issued Cross Rates support currency conversion involving currencies that are
managed against currencies other than the U.S. dollar. For each cross rate, there is a non-U.S.
dollar Reference Currency (for example, EUR and GBP) whereby the cross rates are quoted in
units of foreign currency per Reference Currency. The Rate Class F (value F) will indicate that a
Mastercard-Issued Cross Rate was used in the currency conversion process.
In addition to enhancing the global capabilities of the Mastercard Network, this rate class aids
Mastercard in complying with the following monetary policies.
• European Monetary Union (EMU) regulations requiring conversion of currencies
transitioning to the euro at the fixed rate to the euro that is established by the EMU for the
transition period.
• Other policies as defined from time to time by the monetary authorities in the countries
where Mastercard does business and Mastercard has been informed of said policies.
The T057 production and T058 test bulk files contain the Currency Conversion Rate Detail
Records; Mastercard-Issued Cross Rates (Rate Class F) and Mastercard-Issued USD Rates (Rate
Class M). For each Mastercard-Issued Rate, the Reference Currency is indicated in field 3 of
the T057 file.
Mastercard will communicate availability of any new Mastercard-Issued Cross Rates through a
Global Operations Bulletin.
Global Clearing Management System selects the Mastercard-Issued Cross Rates, class record
(Rate Class F) only, when the source and target currencies match the source and Reference
Currency pair identified in the rate record.
All other currency conversions occur using the Mastercard-Issued USD Rates, class records
(Rate Class M), for the source currency to the target currency. In cases where the target
currency is not USD, the source currency is converted to USD and then to the target currency
(for example, a computed cross rate).
Example
Assume that Global Clearing Management System processes a transaction in which:
• Transaction currency is GBP.
• Acquirer’s reconciliation currency is USD.
• Cardholder billing currency is EUR.
Also assume that a Mastercard-Issued Cross Rate has been established for the currency pair
GBP: EUR and that EUR is the Reference Currency for this currency pair.
Global Clearing Management System will calculate:
• USD acquirer’s reconciliation amount using the GBP: USD Mastercard-Issued USD Rate.
• EUR cardholder billing amount using the GBP: EUR Mastercard-Issued Cross Rate.
The currency conversion calculations in Global Clearing Management System processing
depends on the settlement service type that the transaction is assigned.

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 Currency Conversion
Data Elements Calculated During Currency Conversion Process

For… The currency conversion calculations use…

Transactions that qualify for intracurrency Mastercard-Issued USD Rates
settlement service

All other transactions Mastercard-Issued USD Rates or Mastercard-Issued

Cross Rates, as applicable

Refer to examples further in this chapter for calculations.

Data Elements Calculated During Currency Conversion Process

Global Clearing Management System calculates a number of data elements for each
transaction during the currency conversion process to calculate issuer and acquirer
reconciliation amounts and cardholder billing amounts.

Currency Conversion for First Presentments Qualifying for Regional Settlement

Service
This section provides details and some examples related to the currency conversion approach
used for transactions processed under a regional settlement service. To see a full list of the
currencies that Mastercard offers for regional settlement, refer to the Settlement Manual.

Acquirer Side Data Elements

To calculate the acquirer settlement amount, Global Clearing Management System calculates
and uses various data elements.
• Transaction Amount: Each transaction is conducted in a currency agreed upon by a
merchant and a cardholder. The value of the transaction in the transaction currency is
referred to as the Transaction Amount.
• Total Acquirer Reconciliation Amount: The Transaction Amount is converted to acquirer
reconciliation currency using the applicable rate associated with the transaction currency
and the acquirer reconciliation currency. The Transaction Amount in acquirer reconciliation
currency is referred to as the Total Acquirer Reconciliation Amount.

• Fixed Interchange Amount: Fixed component of interchange fee applicable for a

transaction is referred to as Fixed Interchange Amount in fixed interchange amount
currency. This portion of the interchange fee does not change with the Transaction
Amount. The Fixed Interchange Amount is converted from fixed interchange currency to
acquirer reconciliation currency.

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Global Clearing Management System Reference Manual • 15 October 2019 234
 Currency Conversion
Acquirer Side Data Elements

• Variable Interchange Amount: Variable component of interchange fee applicable for a

transaction is referred to as Variable Interchange Amount. This amount is calculated in
transaction currency by multiplying the percentage Interchange Rate and the Transaction
Amount. The calculated Variable Interchange Amount is then converted from transaction
currency to acquirer reconciliation currency.

• Total Interchange Amount: Fixed Interchange Amount and Variable Interchange Amount in
acquirer reconciliation currency are added to calculate Total Interchange Amount in
acquirer reconciliation currency.
• Acquirer Net Reconciliation Amount: Total Interchange Amount is subtracted/added from
Total Acquirer Reconciliation Amount to calculate Acquirer Net Reconciliation Amount in
acquirer reconciliation currency.

NOTE: Mastercard provides the T057 Currency Conversion Rate File, the Acquirer Currency
Conversion Files (TQQ4—Regional First Presentments, TQQ8—Regional Second Presentments,
and TQX2—Intracurrency Presentments), and the Clearing Detail File (IP755120-AA) to
facilitate acquirer reconciliation. The Acquirer Currency Conversion Rate File provides the
effective currency conversion rate of all possible ISO currency codes between the transaction
currency code and the acquirer reconciliation currency code and is available at the same time
as the T057 file. The Clearing Detail File provides transaction-level details for the acquirer
after each clearing cycle. Details regarding all the data elements provided in these files and
how customers can register for them are provided at the end of this chapter.

All above mentioned data elements are shown in the Clearing Detail File (IP755120-AA) as
follows.

Description Data Element/Private Data Subelement

Transaction Amount DE 4 (Amount, Transaction)

Total Acquirer Reconciliation Amount DE 5 (Amount, Reconciliation)

Total Interchange Amount in acquirer PDS 0146 (Amounts, Transaction Fee), subfield 7
reconciliation currency (Amount, Fee, Reconciliation)
Currency Conversion Rate: Transaction Amount to DE 9 (Conversion Rate, Reconciliation)
Acquirer Reconciliation Amount

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 Currency Conversion
Acquirer Side Data Elements

The following are examples showing currency conversion on the acquirer side of transactions
with each using Mastercard-Issued USD Rates and Mastercard-Issued Cross Rates.

NOTE: For simplicity, all examples are presented with rounding to the second decimal point.
To see precise rounding conventions and calculations of the system, refer to the Rounding of
Global Clearing Management System Currency Conversion section of this manual.

Example 1—Acquirers Currency Conversion Examples for Point-of-Sale Transactions—

Transaction and Reconciliation Currency Are the Same
The following example illustrates currency conversion calculations for a point-of-sale (POS)
card transaction where the transaction currency and acquirer reconciliation currency are the
same. In this case, the transaction currency and acquirer reconciliation currency are the
Canadian dollar (CAD). Other assumptions are listed as follows.

Assumptions
• Transaction Amount: CAD 50.00
• Acquirer Reconciliation Currency: CAD
• Fixed Interchange Amount: CAD 0.10
• Mastercard-Issued USD Rate (USD-CAD): 1 USD = 1.25 CAD; Reference Currency: USD
• Interchange Rate = 1.00%

Operation Method Using Clearing Detail File

The following table contains the transaction-level details through the Clearing Detail File.

Data Element/Private Data Subelement Value

DE 4 CAD 50.00

DE 5 CAD 50.00

PDS 0146, subfield 7 CAD 0.60

DE 9 1.0000

1. Obtain DE 4 and DE 9 from the Clearing Detail File.

2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion
Rate (DE 9)
CAD 50.00 x 1.0000 = CAD 50.00

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 Currency Conversion
Acquirer Side Data Elements

Operational Method Using Acquirer Currency Conversion Rate File

Field 2 (Transaction Currency Field 3 (Acquirer Recon Field 5 (Effective Currency

Code) Currency Code) Conversion Rate)
CAD CAD 1.00

1. Locate the record in the Acquirer Currency Conversion Rate File where the Transaction
Currency matches the currency in field 2 and the Acquirer Reconciliation Currency
matches the currency in field 3 and extract the corresponding Conversion Rate in field 5.
Conversion Rate (field 5) = 1.00
2. Determine the total acquirer reconciliation amount (DE 5) by multiplying the transaction
amount (DE 4) by the conversion rate (field 5)
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion
Rate (field 5)
CAD 50.00 x 1.0000 = CAD 50.00

Illustrative Method with Formulas

1. Total Acquirer Reconciliation Amount

NOTE: Since transaction currency and acquirer reconciliation currency are the same, Total
Acquirer Reconciliation Amount and Transaction Amount are equal.

Total Acquirer Reconciliation Amount = Transaction Amount = CAD 50.00

2. Variable Interchange Amount

NOTE: Since transaction currency and acquirer reconciliation currency are the same,
Variable Interchange Amount in acquirer reconciliation currency is same as the amount in
transaction currency.

Variable Interchange Amount in acquirer reconciliation currency = Variable Interchange

Amount in transaction currency = Transaction Amount x Interchange Rate
CAD 50.00 x 1.00% = CAD 0.50
3. Fixed Interchange Amount

NOTE: Since fixed interchange amount currency and acquirer reconciliation currency are
the same, Fixed Interchange Amount in acquirer reconciliation currency is same as the
amount in fixed interchange amount currency.

Fixed Interchange Amount in acquirer reconciliation currency = Fixed Interchange Amount

in fixed interchange amount currency = CAD 0.10
4. Total Interchange Amount
Total Interchange Amount in acquirer reconciliation currency = Variable Interchange
Amount in acquirer reconciliation currency + Fixed Interchange Amount in acquirer
reconciliation currency

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CAD 0.50 + CAD 0.10 = CAD 0.60

5. Acquirer Net Reconciliation Amount
Acquirer Net Reconciliation Amount = Total Acquirer Reconciliation Amount – Total
Interchange Amount
CAD 50.00 – CAD 0.60 = CAD 49.40

Example 2—Acquirers Point-of-Sale Transactions—Mastercard Issued Rates—the

Transaction Currency and the Reconciliation Currency Are Different—the Transaction
Currency is the Reference Currency
The following example illustrates currency conversion calculations for a POS card transaction
where the transaction currency does not equal the acquirer reconciliation currency. In this
case, the transaction currency is in British pounds (GBP), and the acquirer reconciliation
currency is in Australian dollars (AUD).
The calculations in this example would apply for any transaction where a Mastercard-Issued
Rate (USD and Cross Rate) and the transaction amount are in the Reference Currency (in this
case, GBP), and the reconciliation amount is not in the Reference Currency. This includes any
transactions where the transaction amount is in U.S. dollars, and the reconciliation currency is
something other than U.S. dollars, since the U.S. dollar is the Reference Currency for all
Mastercard-Issued USD Rates (Rate Class M currency pairs).
In such cases, Mastercard uses the currency conversion rate in field 7 of the T057 file (that is,
the buy rate) to convert from transaction currency to reconciliation currency. In the example
below, the GBP-AUD rate of 2.0000 AUD per 1 GBP represents the rate in field 7 of the Rate
Class F table in the T057 file. This same rate will also be seen in the corresponding matching
record in the Acquirer Currency Conversion Rate File delivered during the same period as the
T057 file and in DE 9 for the transaction as presented in the Clearing Detail File once the
transaction is processed.
Other assumptions are listed as follows.

Assumptions
• Transaction Amount: GBP 30.00
• Acquirer Reconciliation Currency: AUD
• Mastercard-Issued Cross Rate (GBP-AUD): GBP 1 = AUD 2.0000; Reference Currency GBP
• Interchange Rate = 1.20%
• Fixed Interchange Amount = AUD 0.10

Operation Method Using Clearing Detail File

The following table contains the transaction level details through the Clearing Detail File.

Data Element/Private Data Subelement Value

DE 4 GBP 30.00

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Data Element/Private Data Subelement Value

DE 5 AUD 60.00

PDS 0146, subfield 7 AUD 0.82

DE 9 2.0000

1. Obtain DE 4 and DE 9 from the Clearing Detail File.

2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
GBP 30.00 x 2.0000 = AUD 60.00

Operational Method Using Acquirer Currency Conversion File

The following table contains the effective currency conversion rate in the Acquirer Currency
Conversion Rate File

Field 2 (Transaction Currency Field 3 (Acquirer Recon Field 5 (Effective Currency

Code) Currency Code) Conversion Rate)
GBP AUD 2.00

1. Locate the record in the Acquirer Currency Conversion Rate File where the Transaction
Currency (GBP) matches the currency in field 2 and the Acquirer Reconciliation Currency
(AUD) matches the currency in field 3 and extract the corresponding Conversion Rate in
field 5.
Conversion Rate (field 5) = 2.00
2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying Transaction Amount
(DE 4) by Conversion Rate (field 5)
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion
Rate (field 5)
GBP 30.00 x 2.0000 = AUD 60.00

Illustrative Method with Formulas

1. Total Acquirer Reconciliation Amount
Total Acquirer Reconciliation Amount = Transaction Amount x Conversion Rate (GBP-AUD)
GBP 30.00 x GBP-AUD 2.0000 = AUD 60.00
2. Variable Interchange Amount
Variable Interchange Amount in transaction currency = Transaction Amount x Interchange
Rate
GBP 30.00 x 1.20% = GBP 0.36

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Variable Interchange Amount in acquirer reconciliation currency = Variable Interchange

Amount in transaction currency x Conversion Rate (GBP-AUD)
GBP 0.36 x GBP-AUD 2.0000 = AUD 0.72
3. Fixed Interchange Amount

NOTE: Since fixed interchange amount currency and acquirer reconciliation currency are
the same, Fixed Interchange Amount in acquirer reconciliation currency is same as the
amount in fixed interchange amount currency.

Fixed Interchange Amount in acquirer reconciliation currency = Fixed Interchange Amount

in fixed interchange amount currency = AUD 0.10
4. Total Interchange Amount
Total Interchange Amount in acquirer reconciliation currency = Variable Interchange
Amount in acquirer reconciliation currency + Fixed Interchange Amount in acquirer
reconciliation currency
AUD 0.72 + AUD 0.10 = AUD 0.82
5. Acquirer Net Reconciliation Amount
Acquirer Net Reconciliation Amount = Total Acquirer Reconciliation Amount – Total
Interchange Amount in acquirer reconciliation currency
AUD 60.00 – AUD 0.82 = AUD 59.18

Example 3—Acquirers Point-of-Sale Transactions—Mastercard Issued Rates—the

Transaction Currency and the Reconciliation Currency Are Different—the
Reconciliation Currency is the Reference Currency
The following example illustrates currency conversion calculations for a POS card transaction
where a Mastercard-Issued Rate was applied and the transaction currency does not equal the
acquirer reconciliation currency. In this case, the transaction currency is in Japanese yen (JPY),
and the acquirer reconciliation currency is in U.S. dollars (USD).
The calculations in this example would apply for any transaction where the Reconciliation
amount is in the Reference Currency (in this case, USD), and the Transaction Amount is not in
the Reference Currency (in this case, JPY).
In such cases, in calculating the acquirer reconciliation amount on transactions for which
Mastercard does offer a regional settlement currency, Mastercard uses the currency conversion
rate in field 9 of the T057 file (that is, the sell rate) to convert from transaction currency to
reconciliation currency. In the example below, the USD-JPY rate of 108.3300 JPY per 1 USD
represents the rate in field 9 of the Rate Class M table in the T057 file.
Otherwise, in calculating the acquirer reconciliation amount on transactions for which
Mastercard does not offer a regional settlement currency, Mastercard uses the currency
conversion rate in field 8 of the T057 file (that is, the mid rate) to convert from transaction
currency to reconciliation currency. In both cases, this same rate will also be seen in the
corresponding matching record in the Acquirer Currency Conversion Rate File delivered during

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Acquirer Side Data Elements

the same period as the T057 file and in DE 9 for the transaction as presented in the Clearing
Detail File once the transaction is processed.

Assumptions
• Transaction Amount: JPY 3,500
• Acquirer Reconciliation Currency: USD
• Mastercard-Issued Cross Rate (USD-JPY): USD 1 = JPY 108.3300; Reference Currency USD
• Interchange Rate = 1.20%
• Fixed Interchange Amount = USD 0.15

Operation Method Using Clearing Detail File

The following table contains the transaction level details through the Clearing Detail File.

Data Element/Private Data Subelement Value

DE 4 JPY 3,500

DE 5 USD 32.31

PDS 0146, subfield 7 USD 0.54

DE 9 0.009231

1. Obtain DE 4 and DE 9 from the Clearing Detail File.

2. Determine Total Acquirer Reconciliation Amount (DE 5) by dividing DE 4 and DE 9.
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
JPY 3,500 x 0.009231 = USD 32.31

Operational Method Using Acquirer Currency Conversion File

Field 2 (Transaction Currency Field 3 (Acquirer Recon Field 5 (Effective Currency

Code) Currency Code) Conversion Rate)
JPY USD 0.009231

1. Locate the record in the Acquirer Currency Conversion Rate File where the Transaction
Currency (JPY) matches the currency in field 2 and the Acquirer Reconciliation Currency
(USD) matches the currency in field 3 and extract the corresponding Conversion Rate in
field 5.
Conversion Rate (field 5) = 0.009231

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Other Acquirer Calculation Considerations: Computed Cross Rates and Fixed Interchange

2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying Transaction Amount

(DE 4) by Conversion Rate (field 5)
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion
Rate (field 5)
JPY 3,500 x 0.009231 = USD 32.31

Illustrative Method with Formulas

1. Total Acquirer Reconciliation Amount
Total Acquirer Reconciliation Amount = Transaction Amount / Conversion Rate (USD-JPY)
JPY 3,500 / USD-JPY 108.3300 = USD 32.31
2. Variable Interchange Amount
Variable Interchange Amount in transaction currency = Transaction Amount x Interchange
Rate
JPY 3,500 x 1.20% = JPY 42
Variable Interchange Amount in acquirer reconciliation currency = Variable Interchange
Amount in transaction currency / Conversion Rate (USD-JPY))
JPY 42 / USD-JPY 108.3300 = USD 0.39
3. Fixed Interchange Amount

NOTE: Since fixed interchange amount currency and acquirer reconciliation currency are
the same, Fixed Interchange Amount in acquirer reconciliation currency is same as the
amount in fixed interchange amount currency.

Fixed Interchange Amount in acquirer reconciliation currency = Fixed Interchange Amount

in fixed interchange amount currency = USD 0.15
4. Total Interchange Amount
Total Interchange Amount in acquirer reconciliation currency = Variable Interchange
Amount in acquirer reconciliation currency + Fixed Interchange Amount in acquirer
reconciliation currency
USD 0.39 + USD 0.15 = USD 0.54
5. Acquirer Net Reconciliation Amount
Acquirer Net Reconciliation Amount = Total Acquirer Reconciliation Amount – Total
Interchange Amount in acquirer reconciliation currency
USD 32.31 – USD 0.54 = USD 31.77

Other Acquirer Calculation Considerations: Computed Cross Rates and Fixed

Interchange
For transactions where a Mastercard Issued Rate is not applicable (that is, none of the
currencies are U.S. dollar or the currency pair is not a Mastercard Issued Cross Rate), the

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Issuer Side Data Elements

Clearing system will perform currency conversion by going through the U.S. dollar and using
two Mastercard-Issued Rates to calculate a cross rate (computed cross rate).
First, the system will calculate a cross rate by dividing the currency conversion rate for the
reconciliation currency as published in field 7 of the T057 file by the currency conversion rate
for the transaction currency published in field 8. Then, this computed cross rate will be used
to multiply the transaction amount to obtain the reconciliation amount in the reconciliation
currency. Similarly, the computed cross rate will be used to convert the variable interchange
from the transaction currency to the reconciliation currency. The computed cross rate is also
provided in the Acquirer Currency Conversion Rate File. In addition, the Clearing Detail File
provides the computed cross rate for each transaction in DE 9 and can be used for
reconciliation.
Regarding fixed interchange, any time the fixed interchange currency is different from the
acquirer reconciliation currency, the currency conversion process will follow the same process
as described in the examples above where the fixed interchange amount will be converted as
any other transaction amount.

Issuer Side Data Elements

To calculate the issuer reconciliation and cardholder billing amounts, Global Clearing
Management System calculates various data elements.
• Transaction Amount: Each transaction is conducted in a currency agreed upon by a
merchant and a cardholder. The value of the transaction in the transaction currency is
referred to as the Transaction Amount.
• Initial Cardholder Billing Amount: This amount is calculated by converting Transaction
Amount from transaction currency to cardholder billing currency.

• Currency Conversion Assessment: Initial Cardholder Billing Amount is multiplied by the

Currency Conversion Assessment Rate (CCA Rate) to calculate the Currency Conversion
Assessment in cardholder billing currency. This amount is then converted to issuer
reconciliation currency.

• Issuer Currency Conversion Amount: This amount is calculated in cardholder billing

currency by multiplying Initial Cardholder Billing Amount and Issuer Currency Conversion
Rate (ICCR or Cross Border Fee Manager Rate).
• Total Cardholder Billing Amount: This amount is calculated in cardholder billing currency by
adding Initial Cardholder Billing Amount and Issuer Currency Conversion Amount.

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Issuer Side Data Elements

• Initial Issuer Reconciliation Amount: This amount is calculated by converting Initial

Cardholder Billing Amount from cardholder billing currency to issuer reconciliation
currency.

• Total Issuer Reconciliation Amount: This amount is calculated in issuer reconciliation

currency by adding Initial Issuer Reconciliation Amount and Currency Conversion
Assessment in issuer reconciliation currency.
• Fixed Interchange Amount: Fixed component of interchange fee applicable for a
transaction is referred to as Fixed Interchange Amount in fixed interchange amount
currency. This portion of the interchange fee does not change with the Transaction
Amount. The Fixed Interchange Amount is converted from fixed interchange currency to
issuer reconciliation currency.

• Variable Interchange Amount: Variable component of interchange fee applicable for a

transaction is referred to as Variable Interchange Amount. This amount is calculated in
transaction currency by multiplying the percentage Interchange Rate and the Transaction
Amount. The calculated Variable Interchange Amount is then converted from transaction
currency to issuer reconciliation currency.

• Total Interchange Amount: Fixed Interchange Amount and Variable Interchange Amount in
issuer reconciliation currency are added to calculate Total Interchange Amount in issuer
reconciliation currency.
• Issuer Net Reconciliation Amount: Total Interchange Amount in issuer reconciliation
currency is subtracted/added from Total Issuer Reconciliation Amount to calculate Issuer
Net Reconciliation Amount in issuer reconciliation currency.
The above-mentioned data elements are shown in the IPM File as follows.

Data Element/Private
Description Data Subelement Notes
Transaction Amount DE 4

Total Issuer DE 5 Inclusive of CCA if applicable

Reconciliation Amount

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Data Element/Private
Description Data Subelement Notes
Total Cardholder Billing DE 6 Inclusive of Issuer Currency Conversion Rate
Amount (ICCR) Amount or Cross Border Fee Manager
Amount if applicable
Currency Conversion DE 9 (Conversion Rate, Effective conversion rate (inclusive of CCA if
Rate: Transaction Reconciliation) applicable)
Amount to Issuer
Reconciliation Amount
Currency Conversion DE 10 (Conversion Rate, Effective conversion rate (Inclusive of Issuer
Rate: Transaction Cardholder Billing) Currency Conversion Rate [ICCR] Amount or Cross
Amount to Cardholder Border Fee Manager Amount if applicable)
Billing Amount
Currency Conversion DE 111 (Amount,
Assessment in issuer Currency Conversion
cardholder billing Assessment)
currency
Total Interchange PDS 0146, subfield 7
Amount in issuer
reconciliation currency

The following are examples that illustrate how interchange, CCA, and ICCR or Cross Border
Fee Manager Rates are calculated throughout the transaction flow. For the specific currency
conversion rates for any transaction scenario, issuers can use the transaction IPM message, in
particular DE 9 and DE 10 as described above. The currency conversion rates in these data
elements will be the same, or derived from, the rates in the T057 file, which are wholesale
market rates.

Example 4—Issuers Currency Conversion Examples for Point-of-Sale Transactions—

Mastercard-Issued USD Rates
The following example illustrates currency conversion calculations for a POS transaction where
the transaction currency does not equal the cardholder billing currency. In this case, the
transaction currency is in Mexican pesos (MXN), and the cardholder billing currency is in U.S.
dollars (USD). Other assumptions are listed as follows.

Assumptions
• Transaction Amount: MXN 180.00
• Cardholder Billing Currency: USD
• Issuer Reconciliation Currency: USD
• Mastercard-Issued USD Rate (USD-MXN): USD 1 = MXN 18.0000
• CCA Rate = 0.20%
• ICCR or Cross Border Fee Manager Rate = 0%

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• Interchange Rate = 1.00%

• Fixed Interchange Amount = USD 0.10
The following table contains the transaction level details through Mastercard’s outbound IPM
file.

Data Element/Private
Data Subelement Value Notes
DE 4 MXN 180.00

DE 5 USD 10.02 Inclusive of CCA if applicable

DE 6 USD 10.00 Inclusive of Issuer Currency Conversion Rate

(ICCR) Amount or Cross Border Fee Manager
Amount if applicable
DE 9 0.055667 Effective conversion rate (inclusive of CCA if
applicable)
DE 10 0.055556 Effective conversion rate (Inclusive of Issuer
Currency Conversion Rate [ICCR] Amount or Cross
Border Fee Manager Amount if applicable)
DE 111 USD 0.02
PDS 0146, subfield 7 USD 0.20

Operational Method
1. Obtain DE 4, DE 9 and DE 10 from the outbound IPM file.
2. Determine Total Cardholder Billing Amount (DE 6) by multiplying DE 4 and DE 10.
Total Cardholder Billing Amount (DE 6) = Transaction Amount (DE 4) x Conversion Rate
(DE 10)
MXN 180.00 x 0.055556 = USD 10.00 (Inclusive of Issuer Currency Conversion Rate
[ICCR] Amount or Cross Border Fee Manager Amount if applicable)
3. Determine Total Issuer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Issuer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
MXN 180.00 x 0.055667 = USD 10.02006, rounded to USD 10.02 (inclusive of CCA if
applicable)

Illustrative Method with Formulas

1. Variable Interchange Amount
Variable Interchange Amount in transaction currency = Transaction Amount x Interchange
Rate

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MXN 180.00 x 1.00% = MXN 1.80

Variable Interchange Amount in issuer reconciliation currency = Variable Interchange
Amount in transaction currency / Conversion Rate (USD-MXN)
MXN 1.80 / USD-MXN 18.0000 = USD 0.10
2. Fixed Interchange Amount

NOTE: Since fixed interchange amount currency and issuer reconciliation currency are the
same, Fixed Interchange Amount in issuer reconciliation currency is same as the amount in
fixed interchange amount currency.

Fixed Interchange Amount in issuer reconciliation currency = Fixed Interchange Amount in

fixed interchange amount currency = USD 0.10
3. Total Interchange Amount
Total Interchange Amount = Variable Interchange Amount + Fixed Interchange Amount
USD 0.10 + USD 0.10 = USD 0.20
4. Initial Cardholder Billing Amount
Initial Cardholder Billing Amount in cardholder billing currency = Transaction Amount /
Conversion Rate (USD-MXN)
MXN 180.00 / USD-MXN 18.0000 = USD 10.00
5. Currency Conversion Assessment
Currency Conversion Assessment in cardholder billing currency = Initial Cardholder Billing
Amount x CCA Rate
USD 10.00 x 0.20% = USD 0.02
6. Issuer Currency Conversion Amount
Issuer Currency Conversion Amount in cardholder billing currency = Initial Cardholder
Billing Amount x ICCR or Cross Border Fee Manager Rate
USD 10.00 x 0.00% = USD 0.00
7. Total Cardholder Billing Amount
Total Cardholder Billing Amount in cardholder billing currency = Initial Cardholder Billing
Amount + Issuer Currency Conversion Amount
USD 10.00 + USD 0.00 = USD 10.00
8. Initial Issuer Reconciliation Amount

NOTE: Since cardholder billing currency and issuer reconciliation currency are the same,
Initial Issuer Reconciliation Amount in issuer reconciliation currency is same as Initial
Cardholder Billing Amount in cardholder billing currency.

Initial Issuer Reconciliation Amount in issuer reconciliation currency = Initial Cardholder

Billing Amount in cardholder billing currency = USD 10.00
9. Currency Conversion Assessment in issuer reconciliation currency

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NOTE: Since cardholder billing currency and issuer reconciliation currency are the same,
Currency Conversion Assessment in issuer reconciliation currency is same as Currency
Conversion Assessment in cardholder billing currency.

Currency Conversion Assessment in issuer reconciliation currency = Currency Conversion

Assessment in cardholder billing currency = USD 0.02
10. Total Issuer Reconciliation Amount
Total Issuer Reconciliation Amount = Initial Issuer Reconciliation Amount + Currency
Conversion Assessment in issuer reconciliation currency
USD 10.00 + USD 0.02 = USD 10.02
11. Issuer Net Reconciliation Amount
Issuer Net Reconciliation Amount = Total Issuer Reconciliation Amount – Total Interchange
Amount in issuer reconciliation currency
USD 10.02 – USD 0.20 = USD 9.82

Example 5—Issuers Currency Conversion Examples—Point-of-Sale Transactions—

Mastercard-Issued Cross Rates
The following example illustrates currency conversion calculations for a POS card transaction
where the transaction currency does not equal the cardholder billing currency. In this case, the
transaction currency is in Polish zloty (PLN), and the cardholder billing currency is in euros
(EUR). Other assumptions are listed as follows.

Assumptions
• Transaction Amount: PLN 600.00
• Cardholder Billing Currency: EUR
• Issuer Reconciliation Currency: EUR
• Mastercard-Issued Cross Rate (EUR-PLN): EUR 1 = PLN 5.0000; Reference Currency is EUR
• ICCR or Cross Border Fee Manager Rate = 3.00%
• CCA Rate = 0.20%
• Interchange Rate = 1.20%
• Fixed Interchange Amount = EUR 0.10
The following table contains the transaction level details through Mastercard’s outbound IPM
file.

Data Element/Private
Data Subelement Value Notes
DE 4 PLN 600.00

DE 5 EUR 120.24 Inclusive of CCA if applicable

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Issuer Side Data Elements

Data Element/Private
Data Subelement Value Notes
DE 6 EUR 123.60 Inclusive of Issuer Currency Conversion Rate
(ICCR) Amount or Cross Border Fee Manager
Amount if applicable
DE 9 0.20040 Effective conversion rate (inclusive of CCA if
applicable)
DE 10 0.20600 Effective conversion rate (Inclusive of Issuer
Currency Conversion Rate [ICCR] Amount or Cross
Border Fee Manager Amount if applicable)
DE 111 EUR 0.24
PDS 0146, subfield 7 EUR 1.54

Operational Method
1. Obtain DE 4, DE 9, and DE 10 from the outbound IPM file.
2. Determine Total Cardholder Billing Amount (DE 6) by multiplying DE 4 and DE 10.
Total Cardholder Billing Amount (DE 6) = Transaction Amount (DE 4) x Conversion Rate
(DE 10)
PLN 600.00 x 0.20600 = EUR 123.60 (Inclusive of Issuer Currency Conversion Rate [ICCR]
Amount or Cross Border Fee Manager Amount if applicable)
3. Determine Total Issuer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Issuer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
PLN 600.00 x 0.20040 = EUR 120.24 (inclusive of CCA if applicable)

Illustrative Method with Formulas

1. Variable Interchange Amount
Variable Interchange Amount in transaction currency = Transaction Amount x Interchange
Rate
PLN 600.00 x 1.20% = PLN 7.20
Variable Interchange Amount in issuer reconciliation currency = Variable Interchange
Amount in transaction currency / Conversion Rate (EUR-PLN)
PLN 7.20 / EUR-PLN 5.0000 = EUR 1.44
2. Fixed Interchange Amount

NOTE: Since fixed interchange amount currency and issuer reconciliation currency are the
same, Fixed Interchange Amount in issuer reconciliation currency is same as the amount in
fixed interchange amount currency.

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Issuer Side Data Elements

Fixed Interchange Amount in issuer reconciliation currency = Fixed Interchange Amount in

fixed interchange amount currency = EUR 0.10
3. Total Interchange Amount
Total Interchange Amount = Variable Interchange Amount + Fixed Interchange Amount
EUR 1.44 + EUR 0.10 = EUR 1.54
4. Initial Cardholder Billing Amount
Initial Cardholder Billing Amount in cardholder billing currency = Transaction Amount /
Conversion Rate (EUR-PLN)
PLN 600.00 / EUR-PLN 5.0000 = EUR 120.00
5. Currency Conversion Assessment
Currency Conversion Assessment in cardholder billing currency = Initial Cardholder Billing
Amount x CCA Rate
EUR 120.00 x 0.20% = EUR 0.24
6. Issuer Currency Conversion Amount
Issuer Currency Conversion Amount in cardholder billing currency = Initial Cardholder
Billing Amount x ICCR or Cross Border Fee Manager Rate
EUR 120.00 x 3.00% = EUR 3.60
7. Total Cardholder Billing Amount
Total Cardholder Billing Amount in cardholder billing currency = Initial Cardholder Billing
Amount + Issuer Currency Conversion Amount
EUR 120.00 + EUR 3.60 = EUR 123.60
8. Initial Issuer Reconciliation Amount

NOTE: Since cardholder billing currency and issuer reconciliation currency are the same,
Initial Issuer Reconciliation Amount in issuer reconciliation currency is same as Initial
Cardholder Billing Amount in cardholder billing currency.

Initial Issuer Reconciliation Amount in issuer reconciliation currency = Initial Cardholder

Billing Amount in cardholder billing currency = EUR 120.00
9. Currency Conversion Assessment in Issuer Reconciliation Currency

NOTE: Since cardholder billing currency and issuer reconciliation currency are the same,
Currency Conversion Assessment in issuer reconciliation currency is same as Currency
Conversion Assessment in cardholder billing currency.

Currency Conversion Assessment in issuer reconciliation currency = Currency Conversion

Assessment in cardholder billing currency = EUR 0.24
10. Total Issuer Reconciliation Amount
Total Issuer Reconciliation Amount = Initial Issuer Reconciliation Amount + Currency
Conversion Assessment in issuer reconciliation currency
EUR 120 + EUR 0.24 = EUR 120.24
11. Issuer Net Reconciliation Amount

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Currency Conversion for First Presentments Qualifying for Intracurrency Settlement Service

Issuer Net Reconciliation Amount = Total Issuer Reconciliation Amount – Total Interchange
Amount in issuer reconciliation currency
EUR 120.24 – EUR 1.54 = EUR 118.70

Currency Conversion for First Presentments Qualifying for Intracurrency

Settlement Service
Generally, given the nature of the service, the transactions that are qualified for Intracurrency
Settlement Service are not subject to currency conversion. In these rare cases where currency
conversion may be required, the same approach of currency conversion is used as for regional
settlement service except that under the Intracurrency Settlement Service transaction
processing, Mastercard-Issued Cross Rates are not applicable. Therefore, for currency
conversion, purposes only, Mastercard-Issued USD Rates (as published in field 8 of the T057
file) are used.
Refer to the chapter on Settlement Service within the Global Clearing Management System
Reference Manual for the regional versus intracurrency selection process.

Rounding of Global Clearing Management System Currency Conversion

When Global Clearing Management System performs multiple currency conversion
calculations before deriving a final amount, Global Clearing Management System performs
the calculations on the interim amounts using the full six positions to the right of the decimal.
Global Clearing Management System determines the final/target amount by rounding the
amount to the currency exponent.
The Member Parameter Extract (MPE) T067 (daily updates) and T068 (full file replacement),
table IP0017T1: Currency Code and Exponents table provide customers with currency codes
and associated currency exponents for each currency supported by Mastercard. The currency
exponent indicates the number of significant digits to the right of the decimal point that are
displayed when communicating amounts in the associated currency. This position (underlined
in the examples that follow) will be referred to as the minor currency unit position.

Table 1: Examples of Currency Exponent Positioning

Currency Description Currency Code Currency Exponent Currency Amount

Japanese Yen 392/JPN 0 0

U.S. Dollar 840/USD 2 0.00

Tunisian Dinar 788/TND 3 0.000

• If the number in the low order position is equal to or greater than 5, the number in the
minor currency position is increased by a value of 1 to round the amount. For example,
17.559048 results in 17.56.
• If the number in the low order position is less than 5, the low order positions are truncated
without rounding the amount. For example, 17.530011 results in 17.53.

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 Currency Conversion
Customer Currency Conversion for Chargebacks (All Cycles)

Global Clearing Management System only rounds amounts to the number of positions to the
right of the decimal point specified by the currency exponent, once they are calculated in the
final (issuer/acquirer reconciliation currency, cardholder billing currency) currency, as shown
below:
• After Global Clearing Management System calculates the currency conversion assessment
in cardholder billing currency.
• After Global Clearing Management System completes the calculation of the total
cardholder billing amount (Inclusive of Issuer Currency Conversion Rate [ICCR] Amount or
Cross Border Fee Manager Amount if applicable).
• After Global Clearing Management System completes the calculation of acquirer and issuer
reconciliation amounts in acquirer/issuer reconciliation currency.
• After Global Clearing Management System completes the calculation of an interchange fee
in reconciliation currency.

Customer Currency Conversion for Chargebacks (All Cycles)

Customers must meet specific requirements for submission of chargeback amounts (including
currency conversion of chargeback amounts) depending on the phase of the chargeback life
cycle.

Customer Requirements for Submitting First Chargeback Amounts

These requirements apply to the amount that issuers may submit in first chargebacks.
• An issuer must not chargeback a transaction for an amount that exceeds the full amount
of the transaction presented by the acquirer. The only exception is when the disputed
amount must be converted to U.S. dollars, in which case, the chargeback may be for an
amount greater than the transaction amount originally presented by the acquirer.
• An issuer may chargeback a transaction for less than the full amount of the transaction.
• The issuer should include the amount resulting from a Currency Conversion Assessment (if
applicable) in the chargeback amount that the issuer presents to Mastercard.
• Full chargebacks for ATM transactions (identified by a value of 01 in DE 3, subfield 1):
– May include the processing fee (less the decline fee).
– Should include the surcharge amount (access fee, direct charging fee, or convenience
fee), when applicable in DE 54 (Amounts Additional), subfield 2 (Additional Amount,
Amount Type), value 42. When DE 54 is in a chargeback message, the surcharge
amount must be provided in the same currency of the chargeback message as indicated
in DE 49 (Currency Code, Transaction).
– Should not include switch fees.
• Partial chargebacks for ATM transactions should not include:
– Transaction processing fees (including the decline fee).
– Surcharge amounts (such as, ATM access fees, direct charging fees, or convenience
fees).
– Switch fees.

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 Currency Conversion
Customer Requirements for Submitting First Chargeback Amounts

Customer Requirements and Guidelines for Charging Back a Partial Amount

The rules and guidelines that customers charging back a transaction for less than its full
amount must abide by are as follows.
To chargeback a transaction for an amount less than the full amount of the transaction,
customers should submit a First Chargeback/1442 message containing DE 24 (Function Code),
value 453. This identifies the first chargeback as a partial chargeback, which indicates that the
first chargeback amount differs from the original transaction amount. Customers must
identify subsequent second presentments and arbitration chargebacks as partial when the
previous transaction was a partial first chargeback or a partial second presentment. The
customer must include the partial Currency Conversion Assessment in the chargeback
amount.

Customer Requirements for Charging Back a Purchase with Cash Back Transaction
A Purchase with Cash Back transaction is a Debit Mastercard® transaction in which a purchase
was conducted, and cash was dispensed by the card acceptor at the point of interaction.
In the First Presentment/1240 messages, the total amount of the transaction (purchase plus
cash) must be submitted in DE 4 (Amount, Transaction). The cash back portion of the
transaction must be identified in DE 54 (Amounts, Additional), subfield 5 (Additional Amount,
Amount) in the same currency as the transaction amount contained in DE 4.
Customers should follow the chargeback procedures for Purchase with Cash Back transactions
described in, Processing Chargeback Messages. To chargeback all or part of the purchase
amount but not the cash back amount of a Purchase with Cash Back transaction, the
customer must subtract the cash back portion from the cardholder billing amount. If the
currency of the cash back portion differs from the currency of the cardholder billing amount,
the customer must perform the following calculation:
• Remove any assessments or fees added to the cardholder billing amount.
• Use the process described in the Currency Conversion Calculations section to convert the
cash back portion in DE 54 to the cardholder billing currency, applying the same exchange
rates used by Global Clearing Management System.
• Subtract the converted DE 54 amount from the DE 4 amount of the First Presentment/1240
message to obtain the purchase amount.
• The revised DE 4 will now contain the purchase amount only.
When charging back all or a part of the purchase portion but not the cash back portion of a
Purchase with Cash Back transaction, the customer must submit a First Chargeback/1442
message containing DE 24 (Function Code), value 453.

Currency Conversion for Customers in the U.S. Region Processing a Chargeback

Message
A U.S. issuer processing a chargeback message will not convert the message nor indicate any
conversion therein but will process it in U.S. dollars through the First Chargeback/1442
message.

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 Currency Conversion
Customer Requirements for Submitting First Chargeback Amounts

The chargeback amount submitted in DE 4 should not exceed the transaction amount
previously provided to the issuer in DE 4 of the First Presentment/1240 message.
For partial chargebacks, the chargeback amount submitted in DE 4 of the chargeback
message should be less than the transaction amount previously provided to the issuer in DE 4
of the first presentment. If an issuer submits multiple partial chargebacks for one first
presentment, the total of the partial chargebacks must not exceed the transaction amount
previously provided to the issuer in DE 4 of the first

Currency Conversion for Customers Outside the U.S. Region Processing a Chargeback
Message
An issuer not in the U.S. region processing a chargeback message will determine the currency
of the chargeback amount as follows.

If... And... Then...

The issuer sending the The disputed amount is The issuer processes the chargeback in the
chargeback and the in the intracurrency currency of the intracurrency settlement
acquirer receiving the reconciliation currency. agreement.
chargeback participate
The disputed amount is The issuer is required to pre-convert the disputed
in the same
not in the intracurrency amount to U.S. dollars and then to the
intracurrency settlement
reconciliation currency intracurrency reconciliation currency. The rate
agreement and the
(for example, it is stated used for the pre-conversion should be the current
transaction qualifies for
in the transaction or previous day’s mid rate.
the intracurrency
currency or in the issuer
agreement based on
billing currency).
customer specified
criteria.

If... And... Then...

The issuer sending the The disputed amount is The issuer processes the chargeback in U.S.
chargeback and the in U.S. dollars. dollars.
acquirer receiving the
The disputed amount is The issuer is required to pre-convert the disputed
chargeback do not
not in U.S. dollars (for amount to U.S. dollars. The rate used for the pre-
participate in the same
example, it is stated in conversion should be the current or previous day’s
intracurrency settlement
the transaction currency mid rate.
agreement, or if the
or in the issuer billing
issuer is in region D and
currency).
the transaction is not
intra-Europe.

For intra-European and inter-European transactions only, issuers may process a chargeback for
the same or lesser amount of the original presentment received from the acquirer either:

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 Currency Conversion
Customer Requirements for Submitting First Chargeback Amounts

• In the original presentment reconciliation currency, as specified in DE 5 (Amount,

Reconciliation) of the First Presentment/1240 message.
• In the amount debited in the issuer’s payment currency used for settlement of the original
presentment, as specified in DE 6 (Amount, Cardholder Billing) of the First Presentment/
1240 message.
For example, if the transaction is in EUR and the cardholder’s currency is GBP, the chargeback
amount may be in either EUR or GBP.

Rates To Be Used for Pre-Conversion in Chargeback Processing

Customers should use the following rates when pre-converting chargeback amounts.

NOTE: Customers must use Mastercard published rates when pre-converting chargeback
amounts.

Chargeback
Submitted for Global
Clearing Management
System Processing FX Rate File Received Currency Update/1644 Messages Received in
Day Calendar Day Clearing Transmission with Processing Day
Monday Saturday Saturday
Tuesday Monday Monday
Wednesday Tuesday Tuesday
Thursday Wednesday Wednesday
Friday Thursday Thursday
Saturday Friday Friday

Pre-Conversion Calculation for a Chargeback in Intracurrency Reconciliation Currency

If the issuer sending a chargeback and the acquirer receiving the chargeback participate in the
same intracurrency settlement agreement, and the transaction qualifies for the agreement
according to customer specified criteria, and the disputed amount is in the reconciliation
currency, no pre-conversion is required.
The issuer may process the chargeback using the amount in intracurrency reconciliation
currency.
If the disputed amount is not in the intracurrency reconciliation currency, the issuer should use
the intracurrency reconciliation amount (represented in DE 5 [Amount, Reconciliation]).
To calculate a chargeback in the intracurrency reconciliation currency, the issuer first converts
the disputed amount to U.S. dollars by dividing it by the appropriate mid rate. The issuer then

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 Currency Conversion
Acquirer Processing of Second Presentments

multiplies the resulting U.S. dollar amount by the mid rate associated with the intracurrency
reconciliation currency.

Pre-Conversion Calculation for a Chargeback in U.S. Dollars

To perform a pre-conversion calculation of a chargeback in U.S. dollars, the issuer divides the
disputed amount by the mid rate associated with the disputed amount.

NOTE: The chargeback amount presented by the issuer to Mastercard in U.S. dollars should
include amounts resulting from a Currency Conversion Assessment, if applicable.

Acquirer Processing of Second Presentments

An acquirer processes a second presentment for the same or lesser amount of the chargeback
received from the issuer in U.S. dollars, without any further currency conversion.
For intra-European and inter-European transactions only, an acquirer may process a second
presentment for the same or lesser amount of the chargeback received from the issuer either:
• In the currency of the chargeback, as specified in DE 4 (Amount Transaction) of the First
Chargeback/1442 message, or
• In the acquirer payment currency used for reconciliation of the chargeback, as specified in
DE 5 (Amount, Reconciliation) of the First Chargeback/1442 message.
Acquirers cannot process a second presentment for an amount greater than the issuer's
chargeback, but the acquirer may process a second presentment for a lesser amount.
Acquirers can initiate partial amount second presentments when an issuer has charged back
the full amount of the original financial presentment and, through communication with the
merchant, the acquirer is accepting responsibility for a portion of the disputed amount.
Acquirers notify Mastercard and issuers that the second presentment is for less than the full
amount of the initial chargeback by providing value 282 in DE 24 (Function Code) of the
Second Presentment/1240 message.

Processing of Arbitration Chargebacks

An arbitration chargeback should use the same currency as the currency used in the second
presentment. An arbitration chargeback is processed for the same or lesser amount of the
second presentment received from the acquirer in intracurrency reconciliation currency or U.S.
dollars, without any further currency conversion.
For intra-European and inter-European transactions only, issuers may process an arbitration
chargeback for the same or lesser amount of the second presentment received from the
acquirer either:
• In the second presentment reconciliation currency, as specified in DE 5 (Amount,
Reconciliation) of the Second Presentment/1240 message.
• In the amount debited in the issuer’s payment currency used for settlement of the second
presentment, as speciified in DE 6 (Amount, Cardholder Billing) of the Second Presentment/
1240 message.

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 Currency Conversion
Currency Conversion of Arbitrations

An arbitration chargeback may not be for an amount in excess of the acquirer’s second
presentment, but it may be for a lesser amount. The issuer notifies the acquirer that the
arbitration chargeback is for less than the full amount of the second presentment by providing
value 454 in DE 24 (Function Code) of the Arbitration Chargeback/1442 message.
If the acquirer has initiated the second presentment for an amount less than the original
chargeback amount, and DE 24 contains value 282 in the Second Presentment/1240 message,
then the issuer should identify the subsequent Arbitration Chargeback/1442 message as
partial by providing value 454 in DE 24, if applicable.

Currency Conversion of Arbitrations

Arbitration proceedings can be filed for amounts expressed in different currencies depending
on the location where the transaction occurred.
• Europe intraregional transactions can be filed in either EUR or USD currencies.
• Intracountry U.K. transactions can be filed in GBP, EUR, or USD currencies.
• Intracountry Russia transactions can be filed in RUB, EUR, or USD currencies.
• Intracountry Mexico transactions can be filed in either MXN or USD currencies.
• All other transactions must be filed in USD currency.
When arbitration has been initiated, it is always for an amount that may not exceed the full
amount of arbitration chargeback, but it may be for a lesser amount.

Currency Conversion for Settlement of Fee Collection Messages

When transaction currency is not equal to the sender/receiver reconciliation currency, the
transaction amount will be converted to appropriate reconciliation currency.
Customers may find the currency conversion rate used in DE 9 of the Clearing Detail File if the
customer is the message originator, or in DE 9 of the IPM file if the customer is the message
receiver.

Currency Conversion for Reversals

This section includes details about the currency conversion of reversal transactions, including
how the conversion rate type is determined and the elements in which customers must
provide the original Global Clearing Management System processing date.
The currency conversion rate types (buy, mid, and sell) used for processing reversal
transactions are determined using the same rules outlined earlier in this chapter for
presentments, chargebacks, and fee collection messages. However, Global Clearing
Management System uses historical currency conversion rates when processing first
presentment reversals. Using the same currency conversion rates for the reversal as were used
for the original message allows the settlement value of the reversal to approximate more
closely the settlement value of the original message.

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 Currency Conversion
Currency Update/1644-640 Messages

Acquirers submitting first presentment reversal messages are required to provide the original
Global Clearing Management System processing date in:
• PDS 0025 (Message Reversal Indicator), subfield 2 (Central Site Processing Date of Original
Message) (if reversing an individual message), or
• PDS 0026 (File Reversal Indicator), subfield 2 (Central Site Processing Date of Original File)
(if reversing an entire file)
If this original Global Clearing Management System processing date is within 60 days of the
current Global Clearing Management System processing date, Global Clearing Management
System will use the historical currency conversion rates from that date when calculating the
settlement value of the reversal.
If the original Global Clearing Management System processing date is more than 60 days from
the current Global Clearing Management System processing date, Global Clearing
Management System will use the currency conversion rates from the 60th day, the oldest
currency conversion rates in the historical rate file, when calculating the settlement value of
the reversal.
For chargeback and fee collection reversals, Global Clearing Management System uses the
current processing day’s currency conversion rates when calculating the settlement value of
the reversal.

Currency Update/1644-640 Messages

The Currency Update/1644-640 messages provide Mastercard-Issued USD Rates. These rates
are published rates (as opposed to cross-rates).
Customers may request Currency Update/1644-640 messages from Mastercard as part of their
inbound clearing files. This option is available at the processor level with the ability to specify
the clearing cycle in which the processor should receive the messages.

NOTE: Global Clearing Management System sends the Currency Update/1644-640 messages
once per processor endpoint to the lowest (first) occurring customer ID in the logical file.
Global Clearing Management System does not provide a set of these messages for each
customer ID associated with the same processor. Only one set will be provided in a delivery
file. For example, if the customer elects to have clearing cycles 3 and 4 delivered as one file
after the fourth clearing, only one set of rate messages will be sent, not one each from 3 and
4.

The following are delivery options for the Currency Update/1644-640 messages:
• Do not deliver Currency Update/1644-640 messages.
• Deliver mid rate Currency Update/1644-640 messages.
• Deliver buy and sell rate Currency Update/1644-640 messages only.
• Deliver buy, sell, and mid rate Currency Update/1644-640 messages.
The customer or processor will receive the Currency Update/1644-640 messages in the
delivery cycles for which the customer or processor has elected to receive the rates. The

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Global Clearing Management System Reference Manual • 15 October 2019 258
 Currency Conversion
T057 Currency Conversion Rate File

Clearing system will not generate Currency Update/1644-640 messages for customers when
there is no financial activity for that customer for a processing day.

T057 Currency Conversion Rate File

The Currency Conversion Rate File provides customers with Mastercard-Issued USD Rates and
Mastercard-Issued Cross Rates, in effect for a given processing day.
Customers may choose to receive the Currency Conversion Rate File through:
• MIP (production bulk file T057, test bulk file T058)
• CONNECT:Direct
• Mastercard File Express

Currency Conversion Rate Effective Day and Time

The currency conversion rates used by Global Clearing Management System are guaranteed
for each Global Clearing Management System processing day.

Table 2: Effective Day and Time for Currency Conversion Rates

Rates Rates Effective for Calendar Day/ Time

Effective for
Global
Clearing
Management
System FX Rate File
Processing Received
Day Calendar Day From To
Monday Saturday Saturday 08:00 Monday 0:800
Tuesday Monday Monday 08:00 Tuesday 0:800
Wednesday Tuesday Tuesday 08:00 Wednesday 0:800
Thursday Wednesday Wednesday 08:00 Thursday 0:800
Friday Thursday Thursday 08:00 Friday 0:800
Saturday Friday Friday 08:00 Saturday 0:800

NOTE: Calendar days and times are expressed in Central Standard Time in the table above.

Customers interested in receiving the currency conversion rate file should contact the Global
Customer Service team for additional information.
The Currency Conversion Rate File Detail Record provides the Rate Class in field 5. The values
for Rate Class are defined in the following table.

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 Currency Conversion
T057 Currency Conversion Rate File

Valid Value Description Comments

M = Mastercard-Issued USD Rate Buy, mid, and sell rates against The Mastercard-Issued USD
the U.S. dollar Rates will reside in the Currency
Conversion Rate File Detail
Record as follows.
• Field 7 will contain the BUY
Currency Conversion Rate.
• Field 8 will contain the MID
Currency Conversion Rate.
• Field 9 will contain the SELL
Currency Conversion Rate.

F = Master-Issued Cross Rate Buy, mid, and sell rates against The cross rates will reside in all
non-U.S. dollar currencies three rate type fields.
• Field 7 will contain the BUY
Currency Conversion Rate.
• Field 8 will contain the MID
Currency Conversion Rate.
• Field 9 will contain the SELL
Currency Conversion Rate.

Currency Conversion Rate File Format

The currency conversion rate file header, detail, and trailer record layouts are shown in the
following tables.

Table 3: Currency Conversion Rate File Header Record

Field Number and

Name Position Length Format Comments and Values
1 Header Description 1 1 an Constant–H
2 Date 2–9 8 n File creation date. YYYYMMDD
3 Time 10–15 6 n The time the file was created. Coordinated
Universal time (UTC); six digits in military
format HHMMSS. For example, 3:30:30
p.m. would show as 153030.
4 Rate File Format 16 1 an This field identifies the file format version.
Version The initial version will be 1 and will be
incremented each time the file format
changes.

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 Currency Conversion
T057 Currency Conversion Rate File

Field Number and

Name Position Length Format Comments and Values
5 Filler 17–125 109 an Spaces

Table 4: Currency Conversion Rate File Detail Record

Field Number and

Name Position Length Format Comments and Values
1 Detail Description 1 1 an Constant–D
2 Source Currency 2–4 3 n ISO currency code for the currency for which
Code rates are being provided.
3 Reference Currency 5–7 3 n ISO code for the reference currency against
Code which rates are quoted.

NOTE: This field will continue to always

contain a value of U.S. dollars (840) for
Mastercard-Issued USD Rates (Rate Class
= M). However, for Mastercard-Issued
Cross Rates (Rate Class = F), this field
may contain any valid currency code.

4 Source Currency 8 1 n Exponent of the currency code in field 2,

Exponent positions 2–4.
5 Rate Class 9 1 an M = Mastercard-Issued USD Rates
F = Mastercard-Issued Cross Rate

6 Rate Format 10 1 an Constant—D = Direct (only rate format

Indicator currently supported)
7 BUY Currency 11–25 15 n Eight numbers to the left of the decimal,
Conversion Rate seven numbers to the right of the decimal.
8 MID Currency 26–40 15 n Eight numbers to the left of the decimal,
Conversion Rate seven numbers to the right of the decimal.
9 SELL Currency 41–55 15 n Eight numbers to the left of the decimal,
Conversion Rate seven numbers to the right of the decimal.
10 Reserved Field 56–70 15 n Nine-filled
11 Filler 71–125 55 an Spaces

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 Currency Conversion
Acquirer Currency Conversion Rate File

Table 5: Currency Conversion Rate File Trailer Record

Field Number Comments and

and Name Position Length Format Values
1 Trailer 1 1 an Constant–T
Description
2 Date 2–7 6 n Total number of
detail records. This
count does not
include the header
or trailer records.
3 Hash Total 8–24 17 n Hash total of all
MID Currency
Conversion Rate
fields presented in
the detail records.
Ten numbers to
the left of the
decimal, seven
numbers to the
right of the
decimal.
4 Filler 25–125 101 an Spaces

Acquirer Currency Conversion Rate File

The Acquirer Currency Conversion Rate File provides the effective currency conversion rate of
all possible ISO currency codes between the transaction currency code and the acquirer
reconciliation currency code.
The files are provided for the following presentments:
• Regional First Presentments (production bulk file TQQ4, test bulk file TQQ6)
• Regional Second Presentments (production bulk file TQQ8, test bulk file TQR0)
• Intracurrency Presentments (production bulk file TQX2, test bulk file TQX4)
Customers may choose to receive the file through:
• Mastercard Interface Processor (MIP) (production bulk files TQQ4, TQQ8, and TQX2; and
test bulk files TQQ6, TQR0, and TQX4)
• CONNECT:Direct®
• Mastercard File Express

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 Currency Conversion
Originating Institution Payment Transaction Currency Conversion Rate File

NOTE: The Acquirer Currency Conversion Rate File is applicable only to determine the acquirer
reconciliation amount from the transaction currency. This file does not replace the existing
T057 Currency Conversion Rate File. Customers will continue to receive T057 rate files the
same as before.

Acquirer Currency Conversion Rate Effective Day and Time

The conversion rates in Acquirer Currency Conversion Rate File follow the same effective times
as the T057 Currency Conversion Rate File.
Customers interested in receiving the updated Acquirer Currency Conversion Rate File should
contact the Global Customer Service team for additional information.
Please refer to Chapter 27—Acquirer Currency Conversion Rate File Format for full details
regarding the Acquirer Currency Conversion Rate File format.

Originating Institution Payment Transaction Currency Conversion Rate

File

The Originating Institution Payment Transaction Currency Conversion Rate File gives customers
the ability to determine the funding amount needed to reconcile with Mastercard specifically
for cross-border payment transactions. To assist customers in reconciling their payment
transactions (DE 3, Processing Code, subfield 1, Cardholder Transaction Type Code, value 28),
this rate file contains all possible currency conversion rates from the transaction currency to
the Originating Institution’s reconciliation currency code for regional First Presentment
payment transactions.
Customers may use the following methods to receive this new file:
• Mastercard Interface Processor (MIP) (production bulk files TS40, and test bulk files TS42)
• CONNECT:Direct
• Mastercard File Express

NOTE: The Originating Institution Payment Transaction Currency Conversion Rate File is
applicable only for determining the Originating Institution’s reconciliation amount to support
cross-border payment transactions. This file will not replace the existing T057 Currency
Conversion Rate File. Customers will continue to receive T057 rate files.
Receiving institutions that reconcile must continue reconciling using currency conversion rate
information provided in the First Presentment message and must not use the Originating
Institution Payment Transaction Currency Conversion Rate File.

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 Currency Conversion
Clearing Detail File (IP755120-AA) to Facilitate Acquirer Reconciliation

Originating Institution Payment Transaction Currency Conversion Rate Effective Day

and Time
The Originating Institution Payment Transaction Currency Conversion Rate File conversion
rates follow the same effective times as the T057 Currency Conversion Rate File conversion
rates.

Originating Institution Payment Transaction Currency Conversion Rate File Format

Mastercard provides the Originating Institution Payment Transaction Currency Conversion Rate
File for regional First Presentment Payment Transactions in production bulk file TS40, and test
bulk file TS42.
Please refer to Chapter 28—Originating Institution Payment Transaction Currency Conversion
Rate File Format for full details regarding the rate file format.

Clearing Detail File (IP755120-AA) to Facilitate Acquirer Reconciliation

Mastercard has introduced a new Clearing Detail File (IP755120-AA) to facilitate acquirer
reconciliation. This file provides transaction level details from Global Clearing Management
System for the acquirer, including the currency conversion rate from the transaction amount
to the acquirer reconciliation amount in DE 9 (Conversion Rate, Reconciliation). Mastercard
has updated bulk file TN70 (Production) and TN72 (Test) to deliver the new file.
The report will be generated and sent after each clearing cycle, including cycle seven,
regardless of the cycles in which acquirers have chosen to participate.
To register for this file, acquirers must send an email to Global Customer Service at
[email protected] designating which ICA(s) and endpoint(s) they would like
to be set up for bulk file TN70/TN72 Clearing Detail Report IP755120-AA.

Table 6: Select data elements from the Clearing Detail File

Data Element Description

DE 5 (Amount, Reconciliation) Acquirer Reconciliation Amount
DE 9 (Conversion Rate, Currency Conversion Rate: Transaction Amount to Acquirer
Reconciliation) Reconciliation Amount
PDS 0146 (Amounts, Transaction Total Interchange in Acquirer Reconciliation Currency
Fee), subfield 7 (Amount, Fee,
Reconciliation)

Refer to the Acquirer Clearing Detail Reporting chapter for the layout of a Clearing Detail File.

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 ICCR Service

Chapter 14 ICCR Service

Issuers in the Europe region have the option to enroll in the Issuer Currency Conversion Rate (ICCR)
service, which charges the cardholder an additional fee for transactions that require currency
conversion.

ICCR Service Overview................................................................................................................ 266

ICCR Enrollment......................................................................................................................... 266
ICCR Reports.............................................................................................................................. 266
ICCR Bulk Files............................................................................................................................ 269

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 ICCR Service
ICCR Service Overview

ICCR Service Overview

The Issuer Currency Conversion Rate (ICCR) is a parameter-based system that charges
cardholders by applying a mark-up called ICCR in clearing.
Issuers in the Europe region can add this supplemental fee to a transaction amount when the
transaction currency is different from the cardholder billing currency. This fee is listed under DE
6 (Amount Cardholder Billing).
Issuers will be able to set their issuer currency conversion rate by account range, which will
apply to First Presentment messages. Issuers can also apply ICCR to First Presentment Reversals
and Credits.
Issuers have the option to apply a back-out process for the ICCR amount on First Chargebacks
(and reversals) in cases where the ICCR amount is included in the DE 4 amount on
Chargebacks.
Issuers can receive daily audit report files of the clearing transactions where the ICCR was
applied. A new bulk file type will be introduced in support of the daily audit report files.
ICCR applies to POS and ATM transactions acquired worldwide.
In the dual message system, all payment transactions (processing code = 28) will be bypassed
for ICCR.

ICCR Enrollment
All issuers in the Europe region that choose to enroll in the ICCR service must submit the
correct enrollment form.
The ICCR Service Enrollment Form, available on Mastercard Connect™, must be completed and
submitted before issuers can participate in the ICCR service.
Forms should be submitted to the issuer’s local customer delivery manager.

ICCR Reports
Issuers can choose to receive daily audit report files that align with each clearing cycle from
Global Clearing Management System.
This audit report will be available for the clearing transactions for which the ICCR calculation
was performed.

Bulk File TN70 On Request Report Data File Transfer Raw Format
Header Record

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Global Clearing Management System Reference Manual • 15 October 2019 266
 ICCR Service
ICCR Reports

Field ID Length Comments

1 an-17 Value ‘HIP830010’
2 an-11 ICA
3 an-07 Endpoint

Detail Record

Field ID Length Comments

1 a-01 Value ‘D’
2 an-11 ICA
3 an-04 MTI Code
4 an-03 Function Code
5 an-08 Processing Date
6 an-19 PAN
7 n-02 Process Code
8 n-11 Issuer ICA
9 an-01 Reversal Indicator
10 an-03 Filler
11 an-06 Transaction Date
12 an-04 Transaction Time
13 an-03 Merchant Country Code
14 an-09 Banknet Reference Number
15 n-12 Transaction Amount
16 an-03 Transaction Currency Code
17 an-01 Transaction Currency Exponent
18 n-12 Reconciliation Amount
19 an-03 Reconciliation Currency Code
20 an-01 Reconciliation Currency
Exponent
21 an-12 Cardholder Billing Amount
22 an-03 Cardholder Billing Currency
Code

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Global Clearing Management System Reference Manual • 15 October 2019 267
 ICCR Service
ICCR Reports

Field ID Length Comments

23 an-01 Cardholder Billing Currency
Exponent
24 an-08 Filler
25 n-12 ICCR Amount
26 n-15 ICCR Rate

Trailer Record

Field ID Length Comments

1 an-17 Value of ‘TIP830010’
2 an-11 ICA
3 an-07 Endpoint
4 an-12 Total of detail records only

Audit Report Fields Included in Raw Data

The following table shows Audit Report fields that will be included in the raw data from the
Bulk File TN70. Depending on the receiver of the file, a linend character may be inserted after
each record.

1st Presentment Field 1st Chargeback (Full and Partial) Position Length Forma
Description Field Description t

MTI MTI 1 4 an

Func Code_DE24 Func Code_DE24 5 3 an

DW_PROCESS_DATE DW_PROCESS_DATE 8 8 an

DE2_CARD_NBR DE2_CARD_NBR 16 19 an

DE3_CARDHOLDER_TXN_TYPE DE3_CARDHOLDER_TXN_TYPE 35 2 an

DE93_ISSUER_ID DE94_SEND_ICA 37 11 an

PDS25_REVERSAL_IND PDS25_REVERSAL_IND 48 1 an

FILLER_REV_IND_MDS FILLER_REV_IND_MDS 49 3 an

DE12_TXN_DATE DE12_TXN_DATE 52 6 an

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 ICCR Service
ICCR Bulk Files

1st Presentment Field 1st Chargeback (Full and Partial) Position Length Forma
Description Field Description t

DE12_TXN_TIME 58 4 an

DE43_MERCH_COUNTRY_CD DE43_MERCH_COUNTRY_CD 62 3 an

DE63_BANKNET_REF_NBR DE63_BANKNET_REF_NBR 65 9 an

DE4_TXN_AMT DE4_TXN_AMT 74 12 n

DE49_TXN_CURR_CD DE49_TXN_CURR_CD 86 3 an

PDS148_TXN_CURR_EXP DE49_TXN_CURR_EXP 89 1 an

DE5_SETTLEMENT_AMT DE5_SETTLEMENT_AMT 90 12 n

DE50_SETTLEMENT_CURR_CD DE50_SETTLEMENT_CURR_CD 102 3 an

PDS148_SETTLEMENT_CURR_EXP PDS148_SETTLEMENT_CURR_EXP 105 1 an

DE6_CARDHOLDER_BILLING_AMT 106 12 n

DE51_CH_BILLING_CURR_CD 118 3 an

PDS148_ISSUER_CURR_EXP 121 1 an

FILLER_DE10_MDS FILLER_DE10_MDS 122 8 an

PDS863_ICCR_AMT PDS863_ICCR_AMT 130 12 n

PDS863_ICCR_RATE PDS863_ICCR_RATE 142 15 n

ICCR Bulk Files

Mastercard will create a new bulk file layout, Bulk File TN70 (On Request Report Data File
Transfer Raw Format), to replace bulk file type TAV8.

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Global Clearing Management System Reference Manual • 15 October 2019 269
 Reconciliation

Chapter 15 Reconciliation
This section describes the Global Clearing Management System messages and reports and how
they can be used in the reconciliation process.

Options for Reconciliation of Clearing and Settlement Data........................................................ 271

IPM Reconciliation Messages for Clearing and Settlement Data................................................... 271
Reconciliation Messages Generated by the Global Clearing Management System................... 271
Financial Messages Considered in Reconciliation.....................................................................272
Acknowledgement Messages Created by Global Clearing Management System..................... 272
Notification Messages............................................................................................................ 273
Location of Reconciliation Totals............................................................................................. 273
List of Optional Reconciliation Categories.......................................................................... 274
Account Range Reconciliation Category........................................................................ 285
Transaction Function Reconciliation Category................................................................ 285
Customer Reconciliation Indicator 1 Reconciliation Category......................................... 286
Functionality in the Reconciliation Messages...................................................................... 287
File Currency Summary/1644-680 Message............................................................................ 288
Financial Position Detail/1644-685 Message........................................................................... 288
Choosing Clearing Reconciliation Categories..................................................................... 289
Settlement Position Detail/1644-688 Message........................................................................ 292
Choosing Settlement Reconciliation Categories..................................................................292
Global Clearing Management System Reconciliation Reports.................................................. 293
IPM Clearing Reports—Clearing Cycle Acknowledgement and Clearing Cycle Notification
Reports..............................................................................................................................296
IPM Clearing Reports—Clearing Cycle Summary................................................................ 296
Clearing Cycle Acknowledgement Report Samples........................................................ 297
Clearing Cycle Notification Report Samples................................................................... 312
Clearing Cycle Summary Reconciliation Report (IP728010-AA)........................................... 317
IPM Messages Created On Behalf of a Member Report (IP142110-AA)...............................341
On-behalf Service Fee Collection Report (IP142520-AA)..................................................... 350
Miscellaneous Override Financial Adjustments Report (IP148320-AA).................................351
Acquirer-funded Reward Presentments Created On Behalf of a Member Report
(IP170010-AA)...................................................................................................................357
Consolidated On-Request XML Data File Distribution.....................................................357
Using Both IPM Messages and Reports to Collect Information................................................ 359
Accumulating Reconciliation Totals......................................................................................... 360
IPM Early Reconciliation File Option........................................................................................ 362

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Global Clearing Management System Reference Manual • 15 October 2019 270
 Reconciliation
Options for Reconciliation of Clearing and Settlement Data

Options for Reconciliation of Clearing and Settlement Data

The Global Clearing Management System provides several options to assist customers with
reconciling their clearing and settlement data.
• Reconciliation messages provide detail and summary information of the customer’s clearing
and settlement financial activity totals.
• Reconciliation reports provide detail and summary information of the customer’s clearing
and settlement financial activity totals.
• Early Reconciliation allows customers to receive errors and acknowledgement reconciliation
messages earlier than clearing cycle cutoff.
• Reconciliation Utility allows customers to submit the contents of amount fields in individual
customer outgoing and incoming Integrated Product Messages (IPMs).
Each option is available for customers depending on the type of financial transaction activity
received.

Available for:
Clearing financial Settlement financial
transactions transactions
Reconciliation Messages Yes Yes

Reconciliation Reports Yes

Early Reconciliation Yes

Reconciliation Utility Yes Yes

For more information about the Reconciliation Utility, refer to the Clearing Optimizer—
Mainframe manual.

IPM Reconciliation Messages for Clearing and Settlement Data

Reconciliation Messages Generated by the Global Clearing Management System

Reconciliation messages are optional for customers and are generated for each clearing cycle
in which there was applicable transaction data.
The following reconciliation messages are available to customers:
• IPM File Currency Summary/1644-680 message
• IPM Financial Position Detail/1644-685 message
• IPM Settlement Position Detail/1644-688 message

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Global Clearing Management System Reference Manual • 15 October 2019 271
 Reconciliation
Financial Messages Considered in Reconciliation

The Global Clearing Management System generates these messages as an acknowledgement

message, a notification message, or both, depending on the type of data being accumulated
and the options elected by the customer.
The messages include a four-position DE 25 (Message Reason Code), which identifies it as
either an acknowledgement or a notification reconciliation message.

IF DE 25 contains a value of… THEN this message is a…

6861 Acknowledgement Reconciliation message

6862 Notification Reconciliation message

Acknowledgement is a type of IPM reconciliation message confirming the customer’s

outbound activity that Global Clearing Management System processed.
Notification is a type of IPM reconciliation message confirming the customer’s inbound activity
that Global Clearing Management System processed.

Financial Messages Considered in Reconciliation

Only some of the IPM messages available for customer use have a financial impact on
reconciliation.
For example, retrieval request messages are not considered financial activity and therefore are
not included in the reconciliation message amount totals.
Financial activity messages that contribute to reconciliation message amount totals are listed
below:
• 1240-200 First Presentments
• 1442-450 First Chargebacks (Full)
• 1442-453 First Chargebacks (Partial)
• 1240-205 Second Presentments (Full)
• 1240-282 Second Presentments (Partial)
• 1442-451 Arbitration Chargebacks (Full)
• 1442-454 Arbitration Chargebacks (Partial)
• 1740-700 Fee Collection (Retrieval Fee Billing)
• 1740-700, 1740-780, 1740-781, 1740-782, 1740-783 Fee Collection (Other)—all cycles

Acknowledgement Messages Created by Global Clearing Management System

Customers may optionally choose to receive acknowledgement messages based on the activity
received from the customer.
If Mastercard receives clearing files from the customer, Global Clearing Management System
creates clearing acknowledgement messages for each customer’s logical files, regardless of
whether the files contain financial clearing data.

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 Reconciliation
Notification Messages

If the files that Mastercard receives from the customer contain financial activity, Global
Clearing Management System may create clearing acknowledgement messages, settlement
acknowledgement messages, or both for each customer’s logical files. If no financial activity is
received, no settlement acknowledgement messages are created.

THEN the Global Clearing

IF Mastercard… AND the files… Management System…
Receives clearing files from Do not contain financial Creates clearing acknowledgement
the customer clearing data (for example, if reconciliation messages containing
all messages between the file zeros in the amount and count fields,
header and file trailer and U.S. dollars in the corresponding
messages are retrieval currency code fields. This advises the
requests) customer that the Global Clearing
Management System received and
processed the non-financial logical file.
Does not create settlement
acknowledgement messages.

Contain financial clearing data Creates clearing and settlement

acknowledgement reconciliation
messages for the financial data.

Does not receive any Will not generate any

clearing files from the acknowledgement messages.
customer

Notification Messages
Mastercard generates notification messages only when there is notification data to transmit.

Location of Reconciliation Totals

Based on the reconciliation categories that the customer chooses, Global Clearing
Management System will include the totals in the following private data subelements of the
1644-680 File Currency Summary, 1644-685 Financial Position Detail, or 1644-688 Settlement
Position Detail messages.
Refer to the three columns to the right to determine when the private data subelements are
mandatory or conditional within the 1644-680, 1644-685 and 1644-688 messages.

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Global Clearing Management System Reference Manual • 15 October 2019 273
 Reconciliation
List of Optional Reconciliation Categories

Presence of this PDS in

Will include reconciliation 1644-680 1644-685 1644-688
PDS totals for… In… message message message
0380 Debits, transaction amount Transaction currency M C N/A

0381 Credits, transaction amount Transaction currency M C N/A

0384 Amount, net transaction Transaction currency M C N/A

0390 Debits, transaction amount Reconciliation currency N/A M M

0391 Credits, transaction amount Reconciliation currency N/A M M

0392 Debits, fee amounts Reconciliation currency N/A M M

0393 Credits, fee amounts Reconciliation currency N/A M M

0394 Amount, net transaction Reconciliation currency N/A M M

0395 Amount, net fee Reconciliation currency N/A M M

0396 Amount, net total Reconciliation currency N/A M M

0400 Debits, transaction number This is a record count of all M M N/A

bilateral, and Global
Collection Only transactions
settled by Mastercard.

0401 Credits, transaction number This is a record count of all M M N/A

bilateral, and Global
Collection Only transactions
settled by Mastercard.

0402 Total, transaction number This is a record count of all M M N/A

bilateral, and Global
Collection Only transactions
settled by Mastercard.

List of Optional Reconciliation Categories

The Reconciliation Message Categories table lists optional reconciliation categories.
Customers may select or change these reconciliation categories using the Global Clearing
Management System Parameter Worksheet (Form 600).
The following definitions are used in the table:

6 C = Conditional—The data element is present in the message if the conditions described in the
accompanying text are applicable. M = Mandatory—The data element is always present in the message.

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Global Clearing Management System Reference Manual • 15 October 2019 274
 Reconciliation
List of Optional Reconciliation Categories

• Transactions Cleared and Settled by Mastercard—Financial activity from customer to

customer, from customer to Mastercard, and from Mastercard to customer for which the
Mastercard settlement system completes settlement.
• Bilateral transactions—Transactions submitted for clearing that Mastercard does not settle
because customers settle them through an interface outside of the Mastercard settlement
system. These transactions are reported only in transaction currency; they are not reported
in reconciliation currency, because they are not settled through Mastercard.
• Global Collection Only transactions—On-Us or intraprocessor transactions that customers
cleared and settled outside of the Mastercard Global Clearing Management System.
Customers send these transactions to Global Clearing Management System for reporting
purposes only (Customers will never receive notification reconciliation messages with
Global Collection Only totals because Global Clearing Management System does not
forward the Global Collection Only messages; therefore, only acknowledgement
reconciliation messages are created). These transactions are reported only in transaction
currency; they are not reported in reconciliation currency, because they are not settled
through Mastercard.
• In addition, full business service selection does not occur on Global Collection Only.
Therefore, the Global Collection Only transactions are reported within the lowest level Card
Program Identifier, Business Service Type, and Business Service ID in common for both
customers.
Customers that want to receive Reconciliation totals for Mastercard settled, bilateral
settlement, and Global Collection Only activity should request both the transaction currency
option and the settlement indicator option for IPM Financial Position Detail Reconciliation
messages to differentiate amount totals for each of these types of transactions.
Reconciliation Message Categories

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
1 PDS 0300 PDS 0105 (Sending The file originator must create a R R D
(Reconciled, File File ID) unique File ID for each File
ID) Header/1644-697 message in
and across transmissions. The
file originator accomplishes this
by using unique values in the
File ID in each File Header/
1644-697 message and
corresponding File Trailer/
1644-695 message. This value
appears in PDS 0300 of the
reconciliation message.
The value provided in the
customer acknowledgement
messages identifies the File ID in
PDS 0105 submitted by the
customer.
The value provided in the
customer notification messages
identifies the clearing cycle and
the delivery cycle within the File
ID in PDS 0105 sent to the
customer.
These values can be used for
reconciliation to the Settlement
Advisement totals.

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.
8 Customers sending a full file reversal using the same file ID, within the same clearing, may receive reconciliation
messages with amount totals that net to zero as a result of the original file and the reversal file processing in the
same clearing.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
2 PDS 0165 • Transactions Each reconciliation message R R N/A
(Settlement cleared and contains totals only for a single
Indicator) settled by settlement indicator, not a
Mastercard combined total for transactions
• Bilateral settled by Mastercard, Bilateral
transactions transactions, and Global
• Global Collection Only transactions.
Collection Only Global Clearing Management
transactions System reports Bilateral and
Global Collection Only
transactions only in transaction
currency because they are not
settled through Mastercard.
Global Clearing Management
System reports only transactions
settled through Mastercard in
reconciliation currency, and
additionally may report them in
transaction currency or
transaction counts depending
on the reconciliation message
type.

3 PDS 0378 • Original Customers receiving this R R N/A

(Original/ transactions category will receive amount
Reversal Totals • Reversal totals for original transaction
Indicator) transactions activity and reversal transaction
activity, each in separate
reconciliation messages.

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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Global Clearing Management System Reference Manual • 15 October 2019 277
 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
4 PDS 0374 Processing Code Processing Code describes the R R N/A
(Reconciled effect of a transaction on a
Processing customer account and the type
Code) of account affected.
Customers that receive this
reconciliation category will
receive amount totals for all
processing codes for which
there is activity. Customers
cannot specify amount totals for
only certain processing codes.
Currently supported processing
codes are:

00 = Purchase (goods
and services)
transaction

01 = ATM transaction

09 = Purchase with cash

back transaction

12 = Cash disbursement
transaction

17 = Convenience check
(Global Collection
Only specific)

18 = Unique transaction

19 = Fee collection
(credit originator)

20 = Credit transaction

28 = Payment
transaction

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
29 = Fee collection
(debit originator)

30 = Balance Inquiry

50 = Payment/balance
transfer (Global
Collection Only
specific)

91 = PIN Unblock4

92 = PIN Change4

5 DE 49 (Currency Transaction Customers that receive this O O O

Code, currency reconciliation category will
Transaction receive amount totals for each
Currency) unique combination of
reconciliation and transaction
currency pair.

6 PDS 0370 Issuing account Customers may receive amount O O O

(Reconciled ranges totals only for their own issuing
Account Range) account ranges up to 11
positions, as established at
Mastercard.
Customers selecting this
category also must select the
Member Activity category to
receive complete reconciliation
information for their:

• Issuing account ranges

• Acquiring activity (at the
member ID level), and
• Fee collection activity (at the
member ID level).

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.
9 Although these transactions are traditionally considered to be non-financial with respect to the processing code,
they are classified as financial transactions when they are originated containing an Access Fee collected by the ATM
provider.

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Global Clearing Management System Reference Manual • 15 October 2019 279
 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
When this category is selected,
the issuer will receive messages
for each account range
established for its member ID
that had activity in the
applicable file, clearing cycle, or
both.
Additional information on this
reconciliation category is located
in the following section titled
Account Range Reconciliation
Category.

7 PDS 0302 Any or all of the If the customer selects the O O C

(Reconciled, following: Account Range reconciliation
Member category, the customer also
• Acquiring
Activity) must select this category so that
activity
the Global Clearing
• Issuing activity Management System can
• Fee collection provide the customer with
activity complete reconciliation
information.
If the customer selects the
Account Range or Acquirer BIN
settlement reconciliation
categories, the customer activity
will automatically be included as
a settlement reconciliation
category.

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
8 PDS 0358 All of the Customers that receive this O O N/A
(Reconciled following: reconciliation category will
Business receive amount totals for all
• Card Program
Activity) business activity categories for
Identifier
which there is activity.
• Business service Customers cannot specify to
level receive amount totals for only
• Business service certain Business Activity
ID categories.
• Interchange
rate designator The Global Clearing
Management System takes this
• Business Date
data from the Business Activity
• Business Cycle element of the original
• Card Acceptor transaction.
Classification
Override For customers processing
Indicator transactions such as product
• Product Class class overrides or special
Override conditions, if Business Activity is
Indicator one of the reconciliation
message categories being
• Corporate
received, amount totals are
Incentive Rates
based on the product class and
Apply Indicator
special conditions being
• Special received.
Conditions
Indicator
• Mastercard
Assigned ID
Override
Indicator

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
9 PDS 0359 • Settlement Customers that elect to receive N/A N/A D
(Reconciled, service level the settlement reconciliation
Settlement • Settlement messages will always receive
Activity) Service ID Settlement Position Detail/
• Transfer agent 1644-688 messages grouped by
• Transfer agent this category. Customers will
account receive settlement position
detail totals based on the
• Foreign
information that Global
exchange rate
Clearing Management System
class
populates in PDS 0159
• Reconciliation (Settlement Activity) of each
date and cycle transaction settled by
• Settlement date Mastercard.
and cycle

10 PDS 0372 Transaction Currently, the Global Clearing R R N/A

(Reconciled functions that Management System supports
Transaction represent financial the financial transaction
Function) activity functions noted in the table
titled Currently Supported
Transaction Functions.
The Global Clearing
Management System takes this
data from the Message Type
Indicator (MTI) and Function
Code of the original transaction.
Additional information on this
reconciliation category is located
in the following section titled
Transaction Function
Reconciliation Category.

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
11 PDS 0375 Customers that Customers can populate PDS O N/A N/A
(Member select this as an 0375 in their customer
Reconciliation acknowledgement outgoing messages with any
Indicator 1) reconciliation proprietary value up to 50
option, and positions in length. When using
populate PDS 0375 this option, all financial records
in outgoing that do not contain PDS 0375
messages, will upon submission, will be
receive totals based accumulated and returned in
on the contents of acknowledgement reconciliation
PDS 0375 in messages in which PDS 0375
Acknowledgement contains the value undefined.
Financial Position
Business service arrangements
Detail/1644
that qualify for the Extended
messages.
Decimal Precision service will
have PDS 0375 populated with
the value undefined. Additional
information on this
reconciliation category is located
in the following section titled
Member Reconciliation Indicator
1.

12 PDS 0367 Card Program Customers that select this as a N/A N/A O
(Reconciled Identifier settlement reconciliation option
Card Program will receive totals based on the
Identifier) contents of PDS 0367 in
Acknowledgement Settlement
Position/1644 message. Global
Clearing Management System
will populate PDS 0367 based
on PDS 0158 (Business Activity),
subfield 1 (Card Program
Identifier).

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.

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 Reconciliation
List of Optional Reconciliation Categories

Available for:
1644-685 1644-688
Fin Pos Smt Pos
Reconciliation Provides Totals of Additional Information Dtl Dtl
Message Reconciliation about this Reconciliation
Category Amounts by: Category Ack Not Ack/Not
13 PDS 0368 Totals are provided Customers that select this as a N/A N/A O
(Reconciled for each unique settlement reconciliation option
Transaction Transaction will receive totals based on the
Function Group Function group. contents of PDS 0368 in
Code) Acknowledgement Settlement
Position/1644 message.

14 PDS 0369 Acquirer’s BINs Customers may receive amount N/A N/A O
(Reconciled totals only for their own
Acquirer’s BIN) acquirer BINs as established by
Mastercard.
Customers that select this as a
settlement reconciliation
category will receive complete
reconciliation information for
their:

• Acquirer BINs
• Issuing activity (at the
customer ID level), and
• Fee collection activity (at the
customer ID level)

When this category is selected,

the acquirer will receive
messages for each BIN range
established for its member ID
that had activity in the
applicable file, clearing file, or
both.
The initial population of BIN
uses the customer’s BIN.

7 D = Default—If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional—The category is not required but may be included at the customer’s option.
R = Recommended—Unless the customer specifies otherwise, this category will be provided.
10 Note: For customers using this Financial Reconciliation option, the totals within a business service arrangement
subject to the Extended Decimal Precision Service will be accumulated and returned in acknowledgement
reconciliation messages where PDS 0375 contains the value “undefined.” Use of PDS 0375 in other business
services arrangements is not affected. Refer to the Extended Decimal Precision Service section for more
information.

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Global Clearing Management System Reference Manual • 15 October 2019 284
 Reconciliation
Account Range Reconciliation Category

Account Range Reconciliation Category

The initial population of account ranges uses the customer’s issuer account range.
Account Range Building

Global Clearing Management System, Clearing Optimizer, IPM Utilities, and IPM MPE will
construct Customer ID and issuer account range as follows:
Customer ID 009999 or 00000009999
NOTE: The IPM MPE contains the 11-position representation. The IPM format supports a
variable representation from six positions to 11 positions.

Account Range Low 5555550000000000000 (zero-filled)

Account Range High 5555559999999999999 (nine-filled) (issuer only or both)

The account ranges initially allow specification by 11-position ranges; however, this field
supports 19 positions for future use. The positions 12–19 in the Issuing Account Range
reconciliation category element are zero-filled for the beginning account range and nine-filled
for the ending account range.
Transaction Function Reconciliation Category
The transaction functions currently supported for reconciliation messages are listed in the
Currently Supported Transaction Functions table.

NOTE: If the customer chooses to receive reconciliation messages for transaction functions,
Mastercard will provide reconciliation detail only for the transaction functions for which
financial detail activity has occurred.

Currently Supported Transaction Functions

Message Type
Identifier Function Code Transaction Function
1240 200 First Presentment

1240 205 Second Presentment (full)

1240 282 Second Presentment (partial)

1442 450 First Chargeback (full)

1442 451 Arbitration Chargeback (full)

1442 453 First Chargeback (partial)

1442 454 Arbitration Chargeback (partial)

1644 603 Retrieval Requests

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 Reconciliation
Customer Reconciliation Indicator 1 Reconciliation Category

Message Type
Identifier Function Code Transaction Function
1740 700 Fee Collection (customer-generated)

1740 780 Fee Collection Return

1740 781 Fee Collection Resubmission

1740 782 Fee Collection Arbitration Return

1740 783 Fee Collection (Global Clearing Management

System-generated)

1740 790 Fee Collection (Funds Transfer applies only in the

Clearing Optimizer system to UK Domestic Maestro
transactions)

Customer Reconciliation Indicator 1 Reconciliation Category

The Customer Reconciliation Indicator 1 table provides details about PDS 0375.
Customer Reconciliation Indicator 1

IF the customer chooses

the reconciliation
category… THEN…
Customer Reconciliation 1. For each of the proprietary values present in clearing activity that
Indicator 1 includes the optional PDS 0375.

Example: A customer includes the value 1234 in PDS 0375 for

several First Presentment messages and 5678 in PDS 0375 for
several other First Presentment messages. In this case, the IPM
reconciliation messages will include totals of the clearing activity
for all of the messages that have the value 1234 in PDS 0375 and
separate totals for all the messages that have the value 5678 in
PDS 0375.

2. For all financial activity when PDS 0375 is not provided.

Example: A customer has chosen this reconciliation category but

does not include PDS 0375 in several of the First Presentment
clearing messages submitted. The Global Clearing Management
System will create an acknowledgement message with a Customer
Reconciliation Indicator 1 value of undefined. This process will
ensure that the acknowledgement reconciliation provided
represents 100 percent of the accepted financial activity of the
customer for that file.

11 Customers selecting this option and submitting only 1644-603 (Retrieval Requests; non-financial messages) will
receive reconciliation messages with zero counts and amounts.

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 Reconciliation
Functionality in the Reconciliation Messages

IF the customer chooses

the reconciliation
category… THEN…
3. Will not receive reconciliation totals based on PDS 0375 (Member
Reconciliation Indicator 1) for reporting within any business service
arrangement subject to the Extended Decimal Precision Service, as
the decimal portion of the interchange is not settled at the
individual transaction level. For customers using this Financial
Reconciliation Option, the totals within a business service
arrangement subject to the Extended Decimal Precision Service will
be accumulated and returned in acknowledgement reconciliation
messages where PDS 0375 contains the value undefined. Use of
PDS 0375 in other business service arrangements is not affected.

Functionality in the Reconciliation Messages

The reconciliation messages provide customers with detailed reconciliation data in
reconciliation currency and, optionally, transaction currency. Customers do not receive totals in
U.S. dollars unless the transaction currency or reconciliation currency is U.S. dollars.
• The File Currency Summary message always will contain totals in transaction currency.
• The Financial Position Detail message always will contain totals in the customer’s
reconciliation currency.

Global Clearing Management System provides amount

For… totals in…
Global Collection Only Transaction currency only.
transactions

Bilateral transactions Transaction currency only.

All other transactions The customer’s reconciliation currency and, if the customer selects
it, also in transaction currency.

When the reconciliation amounts are for bilateral totals, Global Collection Only totals, or both,
the message elements related to reconciliation currency amounts will be present in the
reconciliation message, but zero-filled. However, elements related to transaction counts
always contain totals for those settled by Mastercard, bilateral, and Global Collection Only
count when there is activity for those transaction types.
The IPM format does not require customers to provide expected reconciliation totals.
Customers optionally may provide hash totals for counts and amounts in PDS 0301 and PDS
0306 in their outbound File Trailer/1644-695 messages to activate file integrity checks.
However, the Global Clearing Management System does not use this data in PDS 0301 and
PDS 0306 as part of the reconciliation process.

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 Reconciliation
File Currency Summary/1644-680 Message

Reconciliation messages accumulate only accepted financial activity. Financial activity currently
includes the transaction functions shown in the table Currently Supported Transaction
Functions.
The reconciliation messages do not provide amount or count totals for the following non-
financial message types:
• File Headers
• File Trailers
• Retrieval Requests
• Financial Detail Addenda

NOTE: For more information about transaction functions, as identified by MTI and Function
Code (DE 24), that qualify as financial activity, refer to the IPM Clearing Formats manual.

NOTE: The reconciliation messages report only accepted (not rejected) transaction message
totals.

File Currency Summary/1644-680 Message

This message provides a summary by transaction currency of the customer’s clearing financial
activity totals. Customers that choose to receive this type of message will receive one message
for each transaction currency that occurs, by logical file.
Both credit and debit totals are provided by transaction currency. Global Clearing
Management System determines the original amount and identifies it as a credit or a debit
through the processing code. Global Clearing Management System then calculates the credit
and debit sums for a given currency and places those sums in the appropriate amount
elements in the File Currency Summary message.

Financial Position Detail/1644-685 Message

Customers may choose to receive the Financial Position Detail message. Global Clearing
Management System generates this message for both Acknowledgment and Notification
activity. Customers electing to receive these messages receive both types after each clearing
cycle cutoff.
Customers submitting the early reconciliation file option will receive acknowledgement
messages after the Global Clearing Management System completes the processing of the
physical file. These totals will not be repeated after the clearing cycle cutoff.
The Financial Position Detail/1644-685 message provides details of the customer’s clearing
financial activity by reconciliation categories.
There are multiple reconciliation categories, and all are optional. Customers may select:
• Up to nine categories for reconciliation messages reflecting customer inbound data
(referred to as Notification data)
• Up to 10 categories for reconciliation messages reflecting customer outbound data
(referred to as Acknowledgement data)

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 Reconciliation
Choosing Clearing Reconciliation Categories

The Global Clearing Management System automatically provides all message amount totals
for the Financial Position Detail/1644-685 in the customer’s reconciliation currency. If a
customer selects the Transaction Currency reconciliation category, the message will contain
amount totals for each unique pair of transaction currency and reconciliation currency for
which there was clearing activity.

Choosing Clearing Reconciliation Categories

For clearing reconciliation messages, customers may choose reconciliation categories
separately for acknowledgment messages and notification messages.
Customers that want to receive Reconciliation totals for Mastercard settled, bilateral
settlement, and Global Collection Only activity should request both the transaction currency
option and the settlement indicator option for IPM Financial Position Detail Reconciliation
messages to differentiate amount totals for each of these types of transactions.
Customers may select category options using the Global Clearing Management System
Parameter Worksheet (Form 600).
The Global Clearing Management System generates a Financial Position Detail/1644-685
message for each unique combination of values for the selected reconciliation categories. For
example, a customer could select the reconciliation categories for acknowledgement and
notification messages as shown in the following table titled Example of Customer
Reconciliation Messages.
Example of Customer Reconciliation Messages

Acknowledgement or
Notification Reconciliation Category
Notification Customer Activity

Notification Account Range:

54XXXXXXXXXXXXXXXXX – 54XXXXXXXXXXXXXXXXX
Note: Initially, account ranges will allow specification by 11-
position ranges; however, this field supports 19 positions for
future use. Refer to previous table titled Account Range Building
for additional information about building account ranges.

Notification Settlement Indicator (values B, C, and M)

Notification Original/Reversal Transactions

Notification Processing Code

Acknowledgement Customer Activity

Acknowledgement File ID

Acknowledgement Settlement Indicator (values B, C, and M)

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 Reconciliation
Choosing Clearing Reconciliation Categories

Acknowledgement or
Notification Reconciliation Category
Acknowledgement Original/Reversal Transactions

Acknowledgement Processing Code

For each combination of category, the Global Clearing Management System generates a
unique notification or acknowledgement Financial Position Detail/1644-685 message. For
example, one Financial Position Detail/1644-685 reconciliation message would contain totals
for the combination of one account range plus settlement indicator, another for a second
account range plus settlement indicator, and so forth.
Within the reconciliation categories for account range, customer activity, settlement indicator,
and processing code are multiple possible values. This can result in additional reconciliation
category combinations, generating additional Financial Position Detail/1644-685 messages.
This applies to all reconciliation categories.
For example, suppose that customer 001234 has selected the following reconciliation
categories for acknowledgement and notification messages and has clearing data as shown.

Acknowledgement or Reconciliation Category

Notification Selected Clearing Data Received/Sent
Notification Business Activity MCC and DMC
U.S.-U.S.
IRDs:
70 (Merit III) for MCC
78 (Merit I) for DMC

Notification Settlement Indicator (values B, C, M (Mastercard Settled)—both

and M) MCC and DMC

Notification Original/Reversal Transactions O (original)—MCC

R (reversal)—DMC

Notification Processing Code (for example, Purchase—both MCC and DMC,

purchase or unique) USD 100 each

Acknowledgement File ID 00205290300123400001

Acknowledgement Settlement Indicator (values B, C, M (Mastercard Settled)—both

and M) MCC and DMC

Acknowledgement Original/Reversal Transactions O (original)—both MCC and

DMC

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 Reconciliation
Choosing Clearing Reconciliation Categories

Acknowledgement or Reconciliation Category

Notification Selected Clearing Data Received/Sent
Acknowledgement Processing Code (such as Purchase—both MCC and DMC,
purchase and unique) USD 50 each
Unique—MCC, USD 25

For each combination of categories, Global Clearing Management System generates a unique
notification or acknowledgement Financial Position Detail/1644-685 message.
In addition, within the reconciliation categories for business activity, settlement indicator,
original/reversal, and processing code are multiple possible values. These values can result in
additional reconciliation category combinations, generating additional Financial Position
Detail/1644-685 messages.
Using the selected reconciliation categories and specified values shown in the previous table,
Global Clearing Management System generates the following Financial Position Detail/
1644-685 messages.

Acknowledgement or Notification Received Clearing Data Totals Reported

Notification Message 1 USD 100: credit, IRD 70, Mastercard settled,
original, purchase transaction

Notification Message 2 USD 100: debit, IRD 78, Mastercard settled,

reversal, purchase transaction

Acknowledgement Message 1 USD 100: file ID, Mastercard settled, original,

purchase transactions

Acknowledgement Message 2 USD 25: file ID, Mastercard settled, original,

unique transaction

In the above example, when the customer does not select the business activity reconciliation
category, Global Clearing Management System will combine the reconciliation totals for
consumer credit transactions and point-of-sale (POS) consumer debit transactions. Global
Clearing Management System also combines the interchange fee amount totals for those
transactions. Conversely, when the business activity reconciliation category is selected, Global
Clearing Management System specifies the interchange fee amount totals with the associated
credit or POS debit transaction amount totals in the reconciliation messages.
Customers may receive IPM acknowledgement and notification reconciliation messages for
POS debit and credit activity within the same logical file. Customers selecting the Early
Reconciliation file option also may see acknowledgement messages for both POS debit and
credit activity in the same Early Reconciliation file from Global Clearing Management System.

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 Reconciliation
Settlement Position Detail/1644-688 Message

Settlement Position Detail/1644-688 Message

Customers may choose to receive the Settlement Position Detail/1644-688 message. Global
Clearing Management System generates this message for both Acknowledgement and
Notification activity. Customers electing to receive these messages will receive both types after
each clearing cycle cutoff.
The Settlement Position Detail/1644-688 message provides details of the customer’s
settlement financial activity by reconciliation categories giving the customer the ability to
reconcile settlement positions and tie back to the Settlement Advisement received from the
Mastercard Settlement Account Management (S.A.M.) system.
There are multiple settlement reconciliation categories. If a customer chooses to receive
Settlement Position Detail/1644-688 messages, the two default categories must be selected.
In addition to the default categories, customers may select up to five optional categories for
reconciliation messages reflecting customer inbound (notification) and outbound
(acknowledgement) data.
The Global Clearing Management System provides all message amount totals for the
Settlement Position Detail/1644-688 in the customer’s reconciliation currency. If a customer
selects the Transaction Currency reconciliation category, the message will contain
reconciliation amount totals for each unique pair of transaction currency and reconciliation
currency for which there was settlement activity.
If the customer chooses this message option, a Settlement Position Detail message will be
generated only for transactions settled by Mastercard (PDS 0165 = M) after each clearing
cycle.
Refer to the IPM Clearing Formats manual for a complete message layout for the Settlement
Position Detail/1644-688 message.

NOTE: The Settlement Position Detail/1644-688 Message will be delivered along with the
customers’ normal activity at the end of each clearing cycle (Bulk Type T112) and will not be
distributed within the IPM Early Reconciliation File (Bulk Type T113).

Choosing Settlement Reconciliation Categories

For settlement reconciliation messages, customers choose reconciliation categories that apply
to both acknowledgment messages and notification messages.
The Global Clearing Management System generates a Settlement Position Detail/1644-688
message for each unique combination of values for the selected reconciliation categories. For
example, a customer could select the reconciliation categories for messages as shown in the
following table titled Example of Customer Settlement Reconciliation Messages.
Example of Customer Settlement Reconciliation Messages

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 Reconciliation
Global Clearing Management System Reconciliation Reports

Reconciliation Category
Account Range:
54XXXXXXXXXXXXXXXXX – 54XXXXXXXXXXXXXXXXX
NOTE: Initially, account ranges will allow specification by 11-position ranges, however this
field supports 19 positions for future use. Refer to previous table titled Account Range
Building for additional information about building account ranges.

Reconciled, File (PDS 0300) default category

Reconciled, Settlement Activity (PDS 0359) default category

For each combination of category, the Global Clearing Management System generates a
unique notification or acknowledgement Settlement Position Detail/1644-688 message. For
example, one Settlement Position Detail/1644-688 reconciliation message would contain
totals for the combination of one account range, one file ID, and settlement activity, another
for a second account range, file ID, and settlement activity, and so forth.
Customers may receive IPM acknowledgement and notification settlement reconciliation
messages for point-of-sale (POS) debit and credit activity within the same logical file.

Global Clearing Management System Reconciliation Reports

The Global Clearing Management System reports supplement the reconciliation messages and
will facilitate customers’ internal reconciliation and balancing related to Mastercard.
Customers can request these reports in print image format. The print image format is a
standard 133-character print format that contains a one-position carriage control.
Customers can use the reports for both financial data reporting and for customer statistical
data capture for analysis within customer management information systems (MIS).
The Global Clearing Management System separates the clearing reports for accepted
transactions by acknowledgement and notification clearing data. The Global Clearing
Management System generates these reports upon completion of the applicable clearing
cycle. Once these reports are generated, the Global Clearing Management System sends them
to the customers that have requested them. These reports are optional.
Customers requesting the reports will receive them for each clearing cycle. The Global
Clearing Management System will transmit these reports using the following bulk types:
• T140—Clearing Cycle Acknowledgement Report (production)
• T150—Clearing Cycle Acknowledgement Report (test)
• T140—Clearing Cycle Notification Report (production)
• T150—Clearing Cycle Notification Report (test)

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 Reconciliation
Global Clearing Management System Reconciliation Reports

NOTE:
Customers that request these reports will receive them after each clearing cycle, regardless of
the customer’s file delivery options. For example, if data from clearing cycles 3 and 4 are
merged for data delivery, Global Clearing Management System will produce a report after
clearing cycle 3 and a separate report after clearing cycle 4.

Although reconciliation messages may vary depending on customer reconciliation category

selections, the reports do not vary and always provide totals for all 11 of the reconciliation
categories shown in the following table titled Reconciliation Report Categories.
Customers will have the option to receive Global Clearing Management System reconciliation
reports for accepted clearing data and rejected clearing data.
Reconciliation Report Categories

Category Examples of Items in the Category

1 Card Program Mastercard, private label.
Identifier (Acceptance
Brand)

2 Business Service Level Customer-to-customer, intracountry, intercountry, intraregional,

interregional.

3 Business Service ID Business Service ID number.

4 Interchange Rate The ID assigned to the specific interchange program within the business
Designator agreement identified.

5 Transaction Function First presentment, first chargeback, second presentment.

6 Processing Code Purchase, ATM, Unique, Payment Transaction.

7 Original/Reversal Original transactions separated from reversal transactions.

Transactions

8 Settlement Indicator Settled by Mastercard, Bilateral, Global Collection Only.

9 Reconciliation Reconciliation Currency alpha and numeric codes. These totals will
Currency/Code reflect only Mastercard settled transactions. Bilateral and Global
Collection Only totals are not provided in reconciliation currency.

10 Financial and Non- Financial transactions separated from non-financial transactions.

Financial Transactions
NOTE: Non-financial transactions include retrieval requests and
financial detail addenda.

11 Logical File ID Customer outbound logical file ID or customer inbound logical file ID.

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 Reconciliation
Global Clearing Management System Reconciliation Reports

The reconciliation reports are available for distribution to the customers upon request.
Customers can contact the Global Customer Service team or their Regional Office to request
these reports, detailed in the Global Clearing Management System Reconciliation Reports
table and in the report samples that follow.
If the customer chooses the option to receive reconciliation reports, detail IPM clearing reports
and a summary report will be generated for each of the six clearing cycles. These reports
supplement the IPM reconciliation messages and will facilitate reconciliation and balancing for
the customers.
A seventh clearing cycle exists exclusively for Mexico domestic switching transactions. For
more information on the seven clearing cycles, refer to the Daily Clearing Cycle Schedule
section.
Global Clearing Management System Reconciliation Reports

Report Name Description Report No. Categorized by:

Clearing Cycle For transactions sent from IP727010-AA • Transactions settled
Acknowledgement the customer’s processing by Mastercard
Report site to Mastercard • Bilateral Transactions
• Global Collection
Only Transactions
• Non-Financial
Transactions

Clearing Cycle For transactions sent to the IP727020-AA • Transactions settled

Notification Report customer’s processing site by Mastercard
• Bilateral Transactions
• Non-Financial
Transactions

Clearing Cycle Summary A summary of the clearing IP728010-AA N/A

Report cycle activity based on
completion of each clearing
cycle. The Global Clearing
Management System
generates one report per
clearing cycle per member
ID.

IPM Messages Created For customers that receive IP142110-AA N/A

On Behalf of a Member acknowledgements for Fee
Collection/1740 messages
that they did not generate,
this report assists customers
in the reconciliation process.

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 Reconciliation
IPM Clearing Reports—Clearing Cycle Acknowledgement and Clearing Cycle Notification Reports

Report Name Description Report No. Categorized by:

Acquirer Funded Reward Aids acquirers in reconciling IP170010-AA N/A
Presentments Created promotions that will be
On Behalf of a Member merchant-funded, providing
acquirers with a recap of the
merchant-funded
promotions.

On-behalf Service Fee Reconciliation summary IP142520-AA N/A

Collection Report report offered to acquirers in
the Europe region to allow
reconciliation and settlement
of their authorization and
clearing transactions.

IPM Clearing Reports—Clearing Cycle Acknowledgement and Clearing Cycle

Notification Reports
These reports are billable at USD 0.01 per line and are billed through the Mastercard
Consolidated Billing System (MCBS).

Report Number Description Billing Event Number

IP727010-AA Reconciliation Acknowledgement Report 2RP2216

IP727020-AA Reconciliation Notification Report 2RP2217

Customers may select report options using the Global Clearing Management System
Parameter Worksheet (Form 600).

IPM Clearing Reports—Clearing Cycle Summary

The Clearing Cycle Summary—which is optional and is generated once per clearing cycle by
the Global Clearing Management System—provides customers with an additional
reconciliation tool by providing specific clearing totals summarized by clearing cycle.
This report includes reconciliation totals at the following levels:
• Card Program Identifier (Acceptance Brand)
• Business Service Level
• Customer ID (sender or receiver)
• Logical file ID to Mastercard, or logical file ID from Mastercard
• Totals in the appropriate reconciliation currency, and that reconciliation currency code
The Global Clearing Management System transmits the Clearing Cycle Summary reports using
bulk type T140 (for production) and T150 (for test).

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

This report is billable at USD 0.01 per line and is billed through the Mastercard Consolidated
Billing System (MCBS). The billing event number is as follows.

Report Number Description Billing Event Number

IP728010-AA Clearing Cycle Summary 2RP2218

Customers may select report options using the Global Clearing Management System
Parameter Worksheet (Form 600).

NOTE: For each of the report samples that follows, field descriptions applicable to all of the
report pages follow the Summary page.

Clearing Cycle Acknowledgement Report Samples

These samples of the Clearing Cycle Acknowledgement Report show accepted totals.

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 1: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 2: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 3: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 4: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 5: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 6: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 7: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 8: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 9: Global Collection Only

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 10: Global Collection Only
Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 11: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 12: Mastercard Settled

Transactions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Clearing Cycle Acknowledgement Report (IP727010-AA), page 13: Non-financial Transactions

Report IP727010-AA Field Descriptions

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 Reconciliation
Clearing Cycle Acknowledgement Report Samples

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

Acceptance Brand (Card The code for the Mastercard or proprietary service marks under whose
Program Identifier) umbrella transactions are processed. As an example, MCC
(Mastercard Card) is a card program.

Business Service Level Identifies the interchange relationship for the business arrangement.
Examples are intracountry, intraregional, and interregional.

Business Service ID A unique code that identifies the specific interchange agreement
assigned to the transaction.

File ID The logical file ID to which the data in this report pertains.

Member ID The identifier that the association assigns to a customer (also referred
to as ICA number).

Settlement Indicator Identifies the settlement disposition of the reported transactions.

Values are Mastercard Settled, Global Collection Only (no settlement),
and Bilateral (no settlement).

Trans. Func. (Transaction The IPM Message Type Identifier and Function Code combination that
Function) defines the transaction. Examples of transaction functions are first
presentment, first chargeback, and second presentment.

Proc. Code (Processing Code) Describes the effect of a transaction on a customer account and the
type of account affected. Examples are purchase, credit, and ATM
cash withdrawal. All transactions are defined as either an original or a
reversal.

IRD The interchange rate desigator defines the interchange program for
which the transactions were presented.

Counts The number of transactions accumulated for the applicable processing

code.

Recon. Amount The total net amount (with fees applied) of the transactions in
(Reconciliation Amount) reconciliation currency for the applicable processing code.
NOTE: Global Collection Only and Bilateral transactions are not
settled by Mastercard; therefore, the field contains a zero.

Recon. Currency Code The numeric and alpha ISO currency code associated with the
reconciliation currency (Always 840-USD for Global Collection Only
and Bilateral).

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 Reconciliation
Clearing Cycle Notification Report Samples

Field Description
Trans. Fee (Transaction Fee) The total of the transaction fees applicable to the transactions for the
processing code.
NOTE: Global Collection Only and Bilateral transactions are not
settled by Mastercard; therefore, the field contains a zero.

Fee Curr. Code (Fee Currency The numeric and alpha ISO currency code associated with the fee
Code) currency (Always 840-USD for Global Collection Only and Bilateral).

Total The total count and net amount (with fees applied) of the
transactions and reconciliation currency for the applicable transaction
function.

Subtotal The subtotal of the Mastercard Settled, Global Collection Only, or

Bilateral transaction amounts for the specified Business Service level.
NOTE: Global Collection Only and Bilateral transactions are not
settled by Mastercard; therefore, the field contains a zero.

Clearing Cycle Notification Report Samples

These samples of the Clearing Cycle Notification Report show accepted totals.

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 Reconciliation
Clearing Cycle Notification Report Samples

Clearing Cycle Notification Report (IP727020-AA), page 1: Mastercard Settled Transactions

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 Reconciliation
Clearing Cycle Notification Report Samples

Clearing Cycle Notification Report (IP727020-AA), page 2: Mastercard Settled Transactions

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 Reconciliation
Clearing Cycle Notification Report Samples

Clearing Cycle Notification Report (IP727020-AA), page 3: Mastercard Settled Transactions

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Clearing Cycle Notification Report Samples

NOTE: This report is not available for customers submitting only Global Collection Only
transaction data.

Report IP727020-AA Field Descriptions

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

Acceptance Brand (Card The code for the Mastercard or proprietary service marks under whose
Program Identifier) umbrella transactions are processed. As an example, MCC
(Mastercard Card) is a card program.

Business Service Level Identifies the interchange relationship for the business arrangement.
Examples are intracountry, intraregional, and interregional.

Business Service ID A unique code that identifies the specific interchange agreement
assigned to the transaction.

File ID The logical file ID to which the data in this report pertains.

Member ID The identifier that the association assigns to a customer (also referred
to as ICA number).

Settlement Indicator Identifies the settlement disposition of the reported transactions.

Values are M—Mastercard Settled and B—Bilateral (no settlement).

Trans. Func. (Transaction The IPM Message Type Identifier and Function Code combination that
Function) defines the transaction. Examples of transaction functions are first
presentment, first chargeback, and second presentment.

Proc. Code (Processing Code) Describes the effect of a transaction on a customer account and the
type of account affected. Examples are purchase, payment credit, and
ATM cash withdrawal. All transactions are defined as either an
original or a reversal.

IRD The interchange rate desigator defines the interchange program for
which the transactions were presented.

Counts The number of transactions accumulated for the applicable processing

code.

Recon. Amount The total net amount (with fees applied) of the transactions in
(Reconciliation Amount) reconciliation currency for the applicable processing code.
NOTE: Mastercard does not settle Global Collection Only and
Bilateral transactions; therefore, the field contains a zero.

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Field Description
Recon. Currency Code The numeric and alpha ISO currency code associated with the
(Reconciliation Currency Code) reconciliation currency (Always 840-USD for Global Collection Only
and Bilateral).

Trans. Fee (Transaction Fee) The total of the transaction fees applicable to the transactions for the
processing code.
NOTE: Bilateral transactions are not settled by Mastercard;
therefore, the field contains a zero.

Fee Curr. Code (Fee Currency The numeric and alpha ISO currency code associated with the fee
Code) currency (Always 840-USD for Bilateral).

Total The total count and net amount (with fees applied) of the
transactions in reconciliation currency for the applicable transaction
function.

Subtotal The subtotal of the Mastercard Settled, Global Collection Only, or

Bilateral transaction amounts for the specified Business Service level.
NOTE: Mastercard does not settle Global Collection Only and
Bilateral transactions; therefore, the field contains a zero.

Clearing Cycle Summary Reconciliation Report (IP728010-AA)

The Clearing Cycle Summary Reconciliation Report—which is optional and is generated once
per clearing cycle by the Global Clearing Management System—provides customers with an
additional reconciliation tool by providing specific clearing totals summarized by clearing cycle.
This report includes reconciliation totals at the following levels:
• Acceptance Brand
• Business Service Level and ID
• Customer ID (sender or receiver)
• Logical file ID to Mastercard or logical file ID from Mastercard
• Totals in the appropriate reconciliation currency, and that reconciliation currency code

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 1

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 2

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 3

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 4

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 5

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 6

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 7

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 8

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 9

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 10

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 11

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 12

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 13

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 14

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 15

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 16

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 17

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 18

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 19

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 20

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 21

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 22

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Clearing Cycle Summary Reconciliation Report (IP728010-AA)

Clearing Cycle Summary Report (IP728010-AA), page 23

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

NOTE: This report is not available for customers submitting only Global Collection Only
transaction data.

Report IP728010–AA Field Descriptions

Field Description
Run Date The date on which this report was produced.

Page The page number within the report.

Acceptance Brand (Card The code for the Mastercard or proprietary service marks under whose
Program Identifier) umbrella transactions are processed. As an example, MCC
(Mastercard Card) is a card program.

Business Service Level Identifies the interchange relationship for the business arrangement.
Examples are intracountry, intraregional, and regional.

Business Service ID A unique code that identifies the specific interchange agreement
assigned to the transaction.

Member ID The identifier that the association assigns to a customer (also referred
to as ICA number).

Cycle Activity The clearing cycle in which the file was processed by Global Clearing
Management System.

File ID To Mastercard The logical file ID of the file sent by the customer to Mastercard to
which the net amounts apply.

File ID From Mastercard The logical file ID of the file sent by Mastercard to the customer to
which the net amounts apply.

Net Reconciliation Currency The total net amount (with fees applied) of the transactions in
Amount reconciliation currency for the applicable logical file ID.

Reconciliation Currency Code The numeric and alpha ISO currency code associated with the
reconciliation currency.

Clearing Day Total As Of The grand total net amount (with fees applied) for the specified
Clearing (001–006) clearing day as of clearing cycle NNN.

IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Customers that receive IPM Acknowledgement Reconciliation messages receive
acknowledgements for Fee Collection/1740 messages that they did not generate.
Mastercard creates this report to assist customers in their reconciliation process. The report is
generated in each clearing cycle and distributed as part of bulk type T140 (Production) and
T150 (Test) only if the customer had activity.

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IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Global Clearing Management System report IP142110-AA (IPM Clearing Messages Created
On Behalf of a Customer) has two additional receipt options:
• Text file available in raw data, variable length version. The bulk types are TN70 (Production)
and TN72 (Test) for outbound file delivery.
• XML data file available in variable length version. The bulk types are TN66 (Production) and
TN68 (Test) for outbound file delivery.
The data files are created and distributed after each clearing cycle. The data files do not
include summary totals. If no data is available, the customer will receive a header and trailer
only, with record count 0.
When multiple customer IDs are packaged in a single file to the same endpoint, the data is
sequenced by customer ID. A header and trailer will be provided for each customer ID (as
shown for three customers in the following example).

XML or Raw Data File for Endpoint A

Header for customer 1

Detail for customer 1

... [detail information 1]

... [detail information 2]

Trailer for customer 1

Header for customer 2

Detail for customer 2

... [detail information 2]

... [detail information 2]

Trailer for customer 2

Header for customer 3

Detail for customer 3

... [detail information 3]

... [detail information 3]

Trailer for customer 3

Both of the data files contain the same fields that are currently on the IP142110-AA report. In
addition, the data files contain the following fields. (These fields will not be added to the
IP142110–AA print report.

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IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Name Description
Central Site Processing Date of Contains the value in PDS 0025 (Message Reversal Indicator),
Original Message subfield 2 (Central Site Processing Date of Original Message). If PDS
0025, subfield 2 is present because the transaction is being reversed,
the original message date is displayed.

File ID For the IP142110–AA report and data files, the File ID is the
Mastercard Source File ID. The File ID is found in PDS 0105 (File ID).

XML Data File Distribution

The XML file version of the report contains the data shown in the following layout.

Record
Type Field Name Field Format Field Value Justification
Header Record Type PIC X(1) H Left

Distribution ID PIC X(16) IP142110–AA Left

Member ID PIC 9(11) Right

Endpoint PIC X(07) Left

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Record
Type Field Name Field Format Field Value Justification
Data Record Type PIC X(1) D Left

Transaction Originator Institution PIC 9(11) Right

ID Code

MTI PIC 9(04) Right

Function Code PIC 9(03) Right

Message Reason Code PIC 9(04) Right

File ID PIC 9(25) Right

CR DR Indicator PIC X(02) Left

Central Site Processing Date of PIC X(06) Left

Original Message

Transaction Type PIC X(02) Left

Processing Code PIC 9(02) Right

Transaction Amount PIC 9(12) Right

Transaction Currency Code PIC 9(03) Right

Currency Exponent PIC X(01) Left

Reconciliation Amount PIC 9(12) Right

Reconciliation Currency Code PIC 9(03) Right

Currency Exponent PIC X(01) Left

Transaction Destination PIC 9(11) Right

Institution ID Code

Forwarding Institution ID Code PIC 9(11) Right

Fee Collection Control Number PIC 9(20) Right

Card Program Identifier PIC X(03) Left

Receiving Institution ID Code PIC 9(11) Right

MasterCom Control Number PIC X(07) Left

PAN PIC X(19) a Left

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Record
Type Field Name Field Format Field Value Justification
Trailer Record Type PIC X(01) T Left

Distribution ID PIC X(16) IP142110–AA Left

Member ID PIC 9(11) Right

Endpoint PIC X(07) Left

Count PIC 9(12) Count of XML Right

data detail
records b
aSixteen-digit PANs will be left-justified with trailing spaces. If PAN is unavailable, the field will contain PAN NA.

b Count does not include Header/Trailer records.

Raw Data Distribution

The Raw Data version of the report contains the data shown in the following layout.

Record
Type Field Name Field Format Field Value Justification
Header Record Type PIC X(01) H Left

Distribution ID PIC X(16) IP142110–AA Left

Member ID PIC 9(11) Right

Endpoint PIC X(07) Left

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Record
Type Field Name Field Format Field Value Justification
Data Record Type PIC X(01) D Left

Transaction Originator Institution PIC 9(11) Right

ID Code

MTI PIC 9(04) Right

Function Code PIC 9(03) Right

Message Reason Code PIC 9(04) Right

File ID PIC 9(25) Right

CR DR Indicator PIC X(02) Left

Central Site Processing Date of PIC X(06) Left

Original Message

Transaction Type PIC X(02) Left

Processing Code PIC 9(02) Right

Transaction Amount PIC 9(12) Right

Transaction Currency Code PIC 9(03) Right

Currency Exponent PIC X(01) Left

Reconciliation Amount PIC 9(12) Right

Reconciliation Currency Code PIC 9(03) Right

Reconciliation currency exponent PIC X(01) Left

Transaction Destination Institution PIC 9(11) Right

ID Code

Forwarding Institution ID Code PIC 9(11) Right

Fee Collection Control Number PIC 9(20) Right

Card Program Identifier PIC X(03) Left

Receiving Institution ID Code PIC 9(11) Right

MasterCom Control Number PIC X(07) Left

PAN PIC X(19) a Left

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Record
Type Field Name Field Format Field Value Justification
Trailer Record Type PIC X(01) T Left

Distribution ID PIC X(16) IP142110–AA Left

Member ID PIC 9(11) Right

Endpoint PIC X(07) Left

Count PIC 9(12) Count of raw Right

data detail
records b
a Sixteen-digit PANs will be left-justified with trailing spaces. If PAN is unavailable, the field will contain PAN NA.

b Count does not include Header/Trailer records.

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Report IP142110-AA Field Descriptions

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 Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)

Field Description
Run Date The date on which this report was produced.

Page No The page number within the report.

Member ID The identifier that the association assigns to a customer (also referred
to as ICA number). DE 94 (Transaction Originator Institution ID Code).

MTI/Function Code/Reason Message Type Identifier, DE 24 (Function Code) and DE 25 (Message

Code Reason Code).

Transaction Type Identifies the type of transaction:

• RR = Retrieval Request
• CA = Case Filing/Member Mediation
• CO = Collection Letter
• FT = Funds Transfer
• UK = UK ATM On-behalf Service
• IV = Mexico IVA Fees

Processing Code DE 3 (Processing Code), subfield 1 (Cardholder Transaction Type).

Transaction Amount DE 4 (Amount, Transaction).

CR DR Indicator Indicates the amount as a credit or debit.

Currency The numeric ISO currency code associated with the transaction
currency. DE 49 (Currency Code, Transaction).

Reconciliation Amount DE 5 (Amount, Reconciliation).

CR DR Indicator Indicates the amount as a credit or debit.

Credit Debit Indicator Indicates the amount credit or debit for the customer.

Currency The numeric ISO currency code associated with the reconciliation
currency. DE 50 (Currency Code, Reconciliation).

Transaction Destination ICA DE 93 (Transaction Destination Institution ID Code).

Forwarding Institution ICA/ DE 33 (Forwarding Institution ID Code)/DE 100 (Receiving Institution

Receiving Institution ICA ID Code.

Fee Collection Control PDS 0137 (Fee Collection Control Number)/PDS 0241 (MasterCom
Number/MasterCom Control Control Number).
Number

Card Program Identifier/PAN PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)/DE 2
(Primary Account Number [PAN]).

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 Reconciliation
On-behalf Service Fee Collection Report (IP142520-AA)

Field Description
Transaction Amounts The net total amount of the transaction in transaction currency for the
applicable logical ID file.

Reconciliation Amounts The net total amount of the transaction in transaction currency for the
applicable logical ID file.

Currency Code The numeric ISO currency code associated with the reconciliation
currency. DE 50 (Currency Code, Reconciliation).

On-behalf Service Fee Collection Report (IP142520-AA)

This Global Clearing Management System reconciliation summary report—On-behalf Service
Fee Collection Report—is offered to acquirers in the Europe region to allow reconciliation and
settlement of their authorization and clearing transactions. Customers can sign up for this
report.
Acquirers will have the option to receive the consolidated clearing report, On-behalf Service
Fee Collection Report (IP142520-AA):
• In three clearing cycles per day (cycle 1, 3, and 5) and distributed as part of bulk type T140
(Production) and T150 (Test).
• On the next clearing cycle if there is an issue with the generation of the report on one of
the three cycles listed above.
• By total transaction counts and amounts.
In addition to the On-behalf Service Fee Collection Report, one of the following formats can
also be requested:
• Text file—available in raw data, variable length version. The bulk types are TN70
(Production) and TN72 (Test) for outbound file delivery.
• XML Data file—available in variable length version. The bulk types are TN66 (Production)
and TN68 (Test) for outbound file delivery.
Customers should indicate their format preference by contacting the Mastercard
Implementation Services team or registering through the Global Clearing Management System
Parameter Worksheet (Form 600).

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

On-behalf Service Fee Collection Report (IP142520-AA)

Miscellaneous Override Financial Adjustments Report (IP148320-AA)

The Miscellaneous Override Financial Adjustments report is available to customers each
processing day and is distributed as part of bulk file type T140.
The report provides detail about the Mastercard Fee Collection/1740 messages containing
message reason code 7808 in the Clearing Cycle Notification Report (IP727020-AA) that are
generated at the account range level.
Issuers and processors can elect to receive the Miscellaneous Override Financial Adjustments
Report. Customers should indicate their format preference by contacting the Mastercard

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

Implementation Services team or registering through the Global Clearing Management System
Parameter Worksheet (Form 600).
Clearing system report Miscellaneous Override Financial Adjustments report (IP148320-AA)
has two additional receipt options:
• Text file is available in raw data, variable length version. The bulk type is TN70 (Production).
• XML data file is available in variable length version. The bulk type is TN66 (Production).
The data files are created and distributed after each processing day. The data files do not
include summary totals. If no data is available, the customer receives a header and trailer only,
with record count 0.
When multiple customer IDs are packaged in a single file to the same endpoint, the data is
sequenced by customer ID. A header and trailer is provided for each customer ID (as shown
for three customers in the following example).

XML or Raw Data File for Endpoint A

Header for customer 1

Detail for customer 1

... [detail information 1]

... [detail information 2]

Trailer for customer 1

Header for customer 2

Detail for customer 2

... [detail information 2]

... [detail information 2]

Trailer for customer 2

Header for customer 3

Detail for customer 3

... [detail information 3]

... [detail information 3]

Trailer for customer 3

The Miscellaneous Override Financial Adjustments Report (IP148320-AA) includes Settlement

Service and Submitted Fee Collection Amount.

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

The XML file version of the report will contain the data shown in the following layout.
XML Data File Distribution

Record
Type Field Name Field Format Field Value Justification
Header Record Type PIC X(01) H Left

Distribution ID PIC X(16) IP148320–AA Left

Member ID PIC 9(11) Right

Endpoint PIC X(07) Left

Detail Record Type PIC X(01) D Left

Member ID PIC X(11) Left

FEE-ADJ-SETTLE-SERVICE PIC X(10) Left

FEE-ADJ-ACCT-RANGE PIC X(38) Left

FEE-ADJ-CURR-CD PIC X(03) Left

FEE-ADJ-CURR-EXP PIC X(01) Left

FEE-TRX-CURR-CD PIC X(03) Left

FEE-TRX-CURR-EXP PIC X(01) Left

FEE-ADJ-ALIGN-EXP PIC X(01) Left

FEE-ADJ-AMOUNT-DR PIC 9(18) Right

FEE-ADJ-AMOUNT-CR PIC 9(18) Right

FEE-ADJ-AMOUNT-NET PIC 9(18) Right

FEE-ADJ-NET-DR-CR PIC X(02) Left

FEE-TRX-AMOUNT-DR PIC 9(18) Right

FEE-TRX-AMOUNT-CR PIC 9(18) Right

FEE-TRX-AMOUNT-NET PIC 9(18) Right

FEE-TRX-NET-DR-CR PIC X(02) Left

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

Record
Type Field Name Field Format Field Value Justification
Trailer Record Type PIC X(01) T Left

Distribution ID PIC X(16) IP148320–AA Left

Member ID PIC X(11) Left

Endpoint PIC X(07) Left

Count PIC 9(12) Count of XML Right

data detail
records

The Raw Data version of the report will contain the data shown in the following layout.
Raw Data File Distribution

Record
Type Field Name Field Format Field Value Justification
Header Record Type PIC X(01) H Left

Distribution ID PIC X(16) IP148320–AA Right

Endpoint PIC X(07) Left

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

Record
Type Field Name Field Format Field Value Justification
Detail Record Type PIC X(01) D Left

Member ID PIC X(11) Left

FEE-ADJ-SETTLE-SERVICE PIC X(10) Left

FEE-ADJ-ACCT-RANGE PIC X(38) Left

FEE-ADJ-CURR-CD PIC X(03) Left

FEE-ADJ-CURR-EXP PIC X(01) Left

FEE-ADJ-ALIGN-EXP PIC X(01) Left

FEE-TRX-CURR-CD PIC X(03) Left

FEE-TRX-CURR-EXP PIC X(01) Left

FEE-ADJ-AMOUNT-NET PIC 9(18) Right

FEE-ADJ-DR-CR PIC X(02) Left

FEE-TRX-AMOUNT-DR PIC 9(18) Right

FEE-TRX-AMOUNT-CR PIC 9(18) Right

FEE-TRX-AMOUNT-NET PIC 9(18) Right

FEE-TRX-NET-DR-CR PIC X(02) Left

Trailer Record Type PIC X(01) T Left

Distribution ID PIC X(16) IP148320–AA Left

Member ID PIC X(11) Left

Endpoint PIC X(07) Left

Count PIC 9(12) Count of raw Right

data detail
records

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 Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

Miscellaneous Override Financial Adjustments Report (IP148320-AA)

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 Reconciliation
Acquirer-funded Reward Presentments Created On Behalf of a Member Report (IP170010-AA)

Acquirer-funded Reward Presentments Created On Behalf of a Member Report

(IP170010-AA)
The Reward Presentments Created on Behalf of a Customer Report (IP170010-AA) aids
acquirers in reconciling promotions that will be merchant-funded, providing acquirers with a
recap of the merchant-funded promotions.
Acquirers have the option to receive the consolidated clearing report, Acquirer-funded Reward
Presentments Created on Behalf of a Customer Report (IP170010-AA):
• In each clearing cycle and distributed as part of bulk type T140 (Production) and T150 (Test)
only if the customer had activity
• By transaction origination, customer reconciliation indicator (reward program ID), card
acceptor, and transaction currency
Totals are provided by transaction currency and reconciliation currency.
In addtion to the Acquirer-funded Reward Presentments Created on Behalf of a Customer
Report, one of the following formats can also be requested:
• Text file—available in raw data, variable length version. The bulk types are TN70
(Production) and TN72 (Test) for outbound file delivery.
• XML Data file—available in variable length version. The bulk types are TN66 (Production)
and TN68 (Test) for outbound file delivery.
Consolidated On-Request XML Data File Distribution
Customers who request a raw data file version of a report will receive the data using default
layouts.

Record Type Field Name Field Format Field Value

Header Filler PIC X(01) H

Distribution File PIC X(16) IP170010–AA—when Funds

Transfer Fee Collection
Member ID PIC X(11)

Endpoint PIC X(07)

Data Filler PIC X(01) D

Raw Data PIC X (varies by Contains raw data for the

layout) distribution file

Trailer Filler PIC X(01) T

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 Reconciliation
Consolidated On-Request XML Data File Distribution

Record Type Field Name Field Format Field Value

Distribution File PIC X(16) IP170010–AA—when Funds
Transfer Fee Collection
Member ID PIC X(11)
IP702010-AA—when Merchant
Endpoint PIC X(07) Partner Program

Count PIC X(12) Count of raw data records

RAW DATA LAYOUT

Distribution File Raw Data Format Field
IP170010–AA FILLER PIC X(01) VALUE D

TRAN-ORIG PIC X(11)

FILE-ID PIC X(25)

CARD-ACCEPTOR PIC X(15)

REWARD-PGM PIC X(11)

MTI PIC X(04)

FUNC-CD PIC X(03)

PROC-CD PIC X(02)

TRAN-AMT PIC 9(12)

TRAN-CR-DR-IND PIC X(02)

TRAN-CUR PIC X(03)

RECON-AMT PIC 9(12)

RECON-CR-DR-IND PIC X(02)

FEE-IN-RECON-CUR PIC 9(12)

FEE-IN-RECON-CR-DR-IND PIC X(02)

FEE-IN-CALC-CUR PIC 9(12)

FEE-CALC-CUR PIC X(03)

FEE-IN-CALC-CR-DR-IND PIC X(02)

RECON-CUR PIC X(03)

TRAN-DEST PIC X(11)

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 Reconciliation
Using Both IPM Messages and Reports to Collect Information

RAW DATA LAYOUT

Distribution File Raw Data Format Field
CARD-PGM-ID PIC X(03)

IP1702010–AA FILLER PIC X(01) VALUE D

MTI PIC X(04)

FUNC-CD PIC X(03)

PRIM-ACCT-NO PIC X(19)

PROC-CD PIC X(02)

TRANS-DATE PIC X(06)

ACQ-REF-NO PIC X(23)

IRD PIC X(02)

FUNDS-DIRECTION PIC X(02)

AMOUNT-RECON-FEE PIC X(12)

CURRENCY-RECON-FEE PIC X(03)

EXPONENT-RECON-FEE PIC X(01)

AMOUNT-TRANS-FEE PIC 9(12)

CURRENCY-TRANS-FEE PIC X(03)

EXPONENT-TRANS-FEE PIC X(01)

NOTE:
Customers that request an XML data file version of a report will receive the same data as
above but in XML format.
For customers that elect to receive the text file, when no data is present, the file will consist
of a header and trailer record with zero (0) for the record count.

Using Both IPM Messages and Reports to Collect Information

Customers can use both the IPM reconciliation messages and the Global Clearing
Management System reports to derive information about customer and other activity, at
different total levels.
For example:

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 Reconciliation
Accumulating Reconciliation Totals

• The customer may choose to receive the IPM reconciliation message totals at the account
range level. Global Clearing Management System reconciliation reports provide totals at
the customer level but not at the account range level. Choosing the message totals at the
account range level provides the customer with a more detailed breakdown by customer
activity than Global Clearing Management System reports will provide.
• Global Clearing Management System reports provide count totals for non-financial
transactions, in addition to financial transactions. The IPM reconciliation messages do not
provide non-financial transaction detail. Thus, customers may request the IPM clearing
reports to obtain non-financial transaction count information to supplement the financial
count and totals information in the IPM reconciliation messages.
• Global Clearing Management System reports provide amount totals in the customer’s
reconciliation currency. The IPM reconciliation messages provide amount totals in the
customer’s reconciliation currency and optionally in the transaction currency. Customers
receiving both the Global Clearing Management System reports and the IPM reconciliation
messages can thus receive their amount totals in these currencies: transaction,
reconciliation.
• The rejected transaction reports can provide customers with rejected transaction
information that accounts for the difference between the customer clearing data totals and
the accepted clearing data totals as reported by Mastercard. For example, suppose that
customer A submits financial transactions totaling USD 3,000.00. Customer A receives
acknowledgement reconciliation messages, which show processing of USD 2,500.00
financial activity. Customer A can refer not only to the rejected transaction reports but also
to the customer inbound error messages to verify the source of the USD 500.00 difference.

NOTE: All of the reports referenced in the list above are available per clearing cycle and are
not available within the IPM Early Reconciliation File. Reconciliation messages are delivered
according to the customer’s elected file delivery schedule.

Accumulating Reconciliation Totals

Details about the accumulation of reconciliation messages done by customers and processors
are described here.

NOTE: Customers and processors will need to accumulate reconciliation messages to derive a
grand total, by processor, for any of the reconciliation categories for the customers for which
they process.

For example, suppose that customer or processor 001111 processes for customer ID 002222,
customer ID 003333, and customer ID 004444 and that Mastercard has set up the customers’
selected categories for notification messages as follows:
• Customer ID 002222: Set up to receive reconciliation totals by processing code and
settlement indicator
• Customer ID 004444: Set up to receive reconciliation totals by processing code and
settlement indicator

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 Reconciliation
Accumulating Reconciliation Totals

Although it is unlikely that a customer or processor would establish such a diverse set of
categories for each customer ID, this example illustrates the process for accumulating any set
of reconciliation totals.

Processor
001111
Receives Settlement Originals/ Transaction
Member ID Record… Processing Code Indicator Reversals Function
002222 1 Purchase—USD 100.00 Settled by
Mastercard

Subtotal of Purchase USD 100.00

Processing Code for Customer
ID 2222

2 ATM—USD 50.00 Settled by

Mastercard

Subtotal of ATM Processing USD 50.00

Code for Customer ID 2222

004444 9 Purchase—USD 100.00 Settled by

Mastercard

Subtotal of Purchase USD 100.00

Processing Code for Customer
ID 4444

10 ATM—USD 50.00 Settled by

Mastercard

Subtotal of ATM Processing USD 50.00

Code for Customer ID 4444

Grand Total of Purchase USD 200.00

Processing Code for Customer
ID 001111

To derive a total at the customer or processor level for any of the above reconciliation
categories, the customer or processor will need to accumulate and total each applicable
customer ID’s reconciliation category.
For example, to derive the notification totals by processing code of purchase for processor
001111, the processor must accumulate the notification totals by processing code for
customer ID 002222 and customer ID 004444.

NOTE: All summarization of totals occurs within the same currency.

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 Reconciliation
IPM Early Reconciliation File Option

IPM Early Reconciliation File Option

Customers and processors have the option to receive early acknowledgement reconciliation
and error messages.
Customers will receive these messages once the St. Louis Operations Center (Central Site) has
processed their outbound IPM logical clearing files without waiting until the Central Site
clearing cutoffs to receive their reconciliation messages. This option is available at the
processor level. If a customer is its own processor, the customer also may choose this option
for itself.
If the customer has chosen to receive both the File Currency Summary/1644-680 message and
the Financial Position Detail/1644-685 message, the IPM Early Reconciliation file includes both
of these messages. Both message formats are the same as the reconciliation messages sent in
non-Early Reconciliation clearing files.
This feature can provide valuable balancing information and error records without the
constraint of waiting for the next Global Clearing Management System cutoff and distribution
of notification data defined by Mastercard. It allows the customer to understand its settlement
position for the file processed by Mastercard and to correct and resubmit more quickly any
errors that may be present.

NOTE: The Settlement Position Detail/1644-688 message will be delivered along with the
customer’s normal activity at the end of each clearing cycle (bulk type T112) and will not be
distributed within the IPM Early Reconciliation File (bulk type T113).

NOTE: The Global Clearing Management System does not duplicate the messages provided in
the early reconciliation files when it creates the customer inbound clearing files at cycle cutoff
times. The customer will receive the messages only once.The Early Reconciliation file is
transmitted using bulk type T113. This differs from the normal clearing cycle cutoff file bulk
types, to clearly distinguish the Early Reconciliation file from all other clearing files.

NOTE: For more information about sending files for processing by the Global Clearing
Management System, refer to the section titled, Early Reconciliation Message File in the
Clearing Processing Details section.

Customers may select the Early Reconciliation file option using the Global Clearing
Management System Parameter Worksheet (Form 600). Refer to the Global Clearing
Management System Parameter Worksheet (Form 600).

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 Cross-Border Fee Manager Service

Chapter 16 Cross-Border Fee Manager Service

Issuers have the option to enroll in the Cross-Border Fee Manager service, an on-behalf service that
allows the application of issuer-determined cardholder fees for cross-border and currency
conversion transactions.

Cross-Border Fee Manager Service Overview............................................................................... 364

Cross-Border Fee Manager Service Enrollment.............................................................................365
Cross-Border Fee Manager Service Reports..................................................................................366
Cross-Border Fee Manager Service Bulk Files............................................................................... 368

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 Cross-Border Fee Manager Service
Cross-Border Fee Manager Service Overview

Cross-Border Fee Manager Service Overview

The Cross-Border Fee Manager service allows issuers to have the flexibility to set markup fees
for both currency-conversion and cross-border transactions, taking into account a variety of
parameters.
• Account range for Mastercard, Debit Mastercard, Maestro, and Cirrus acceptance brands
• Transaction currency
• Region differentiation (for example, intraregional versus interregional)
• Processing groups (for example, point-of-sale [POS], ATM, card-present, card-not-present,
and so on)
In combination with the default service in Clearing, issuers can select Authorization as an
option. Markup fees are added to the cardholder billing amount (DE 6) without any impact to
other data fields within the authorization. The markup amount provided within Authorization
serves as an estimate and may differ slightly from the amount within Clearing due to
fluctuations within the currency conversion rates used to calculate the final issuer markup.
Issuers may use any combination of the Currency Conversion Method, Cross-Border Flex
Method, or both to set the markup rates for cross-border and currency conversion
transactions and to add the associated fees to the total cardholder billing amount.
• Currency Conversion Method—Allows issuers to charge cardholders a percentage rate,
fixed amount, or both by applying a markup to currency-converted transactions that may
be further filtered by setup parameters.
• Cross-Border Flex Method—Allows issuers to charge cardholders an additional percentage
rate, fixed amount, or both by applying a markup to cross-border transactions that may be
further filtered by setup parameters.
Both of these methods are provided in the following message types:
• First Presentment/1240 (including reversals and credits)
• First Chargeback/1442
Issuers can optionally set up to three different markup fee overrides based on any transaction
currency at the account range level for both Authorization and Clearing. If the transaction
currency matches the override currency, the markup fee override is used to calculate the
markup versus the issuer’s default service setting for all other currencies. Issuers may use these
overrides to change the existing markup fee setup or even nullify the markup service (using a
0 percent override) for lower risk currencies, or to increase the fee for higher risk, volatile
currencies.
Mastercard calculates the Currency Conversion Method and Cross-Border Flex Method
amounts based on the markup services the issuer opts into and fees established by the issuer
at the account range level. Mastercard incorporates these calculated amounts into DE 6
(Amount, Cardholder Billing) as described in the following table.

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 Cross-Border Fee Manager Service
Cross-Border Fee Manager Service Enrollment

Method Description Condition of Application Markup Calculation

Currency Conversion Method DE 49 (Currency Code, Percentage rate, fixed amount,
Transaction) is different from DE or both
51 (Currency Code, Cardholder
Billing)
Cross-Border Flex Method DE 43, subfield 6 is different Percentage rate, fixed amount,
from the issuer country code or both
(defined at account range level)

NOTE: The Cross-Border Flex Method does not apply to intra-European transactions where the
country codes of the merchant and the account range are both in the extended Eurozone
(Euro countries plus Sweden) and the transaction currency is euros (EUR).

By participating in either of the methods (Currency Conversion Method and Cross-Border Flex
Method), issuers have the option to use a combination of the following parameters at an
account range level, which can be applied to the total cardholder billing amount:
• Account range for Mastercard, Debit Mastercard, Maestro, and Cirrus acceptance brands
• Region differentiation
• Processing groups (for example, point-of-sale [POS], ATM, card-present, card-not-present,
and so on)
• Transaction currency
• Region identifier
For both of these methods, issuers can apply different fees for intraregional and interregional
identifiers.
Cross-Border Fee Manager Self-Service Application
Issuers that participate in the service have the capability to change their Cross-Border Fee
Manager markup rates at the account range level within an existing service setup, using a self-
service application on Mastercard Connect™. To expedite rate changes, issuers can view their
current rates and change markup rates up to two decimal positions and set zero rates for
account ranges that are already enrolled in the Cross-Border Fee Manager Service.

NOTE: Rate changes become effective within 48 hours after the rate changes are made in the
self-service application.

Cross-Border Fee Manager Service Enrollment

The Cross-Border Fee Manager Customer Form (Form 1155d), available on Mastercard
Connect™, must be completed and submitted before issuers can participate in the Currency

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 Cross-Border Fee Manager Service
Cross-Border Fee Manager Service Reports

Conversion Method, Cross-Border Flex Method, or both as part of the Cross-Border Fee
Manager service.
This form should be submitted to the issuer’s local customer delivery manager.

NOTE: Issuers may only participate in the Currency Conversion Method and the Cross-Border
Flex Method where permitted by local regulations.

Cross-Border Fee Manager Service Reports

Issuers can choose to receive daily audit report files that align with each clearing cycle from
Global Clearing Management System.
This audit report will be available for the clearing transactions for which the Cross-Border Fee
Manager calculation was performed.

Bulk File TN70 On Request Report Data File Transfer Raw Format
Header Record

Field ID Length Comments

1 an-17 Value HIP830020
2 an-11 ICA
3 an-07 Endpoint

Detail Record

Field ID Length Comments

1 a-01 Value D
2 an-11 ICA
3 an-04 MTI Code
4 an-03 Function Code
5 an-08 Processing Date
6 an-19 Primary Account Number
7 n-02 Process Code
8 n-11 Issuer ICA
9 an-01 Reversal Indicator
10 an-03 Filler

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 Cross-Border Fee Manager Service
Cross-Border Fee Manager Service Reports

Field ID Length Comments

11 an-06 Transaction Date
12 an-04 Transaction Time
13 an-03 Merchant Country Code
14 an-09 Banknet Reference Number
15 n-12 Transaction Amount
16 an-03 Transaction Currency Code
17 an-01 Transaction Currency Exponent
18 n-12 Reconciliation Amount
19 an-03 Reconciliation Currency Code
20 an-01 Reconciliation Currency
Exponent
21 an-12 Cardholder Billing Amount
22 an-03 Cardholder Billing Currency
Code
23 an-01 Cardholder Billing Currency
Exponent
24 an-08 Filler
25 n-12 Currency Conversion Method
Amount (% Rate)
26 n-15 Currency Conversion Method %
Rate
27 n-12 Currency Conversion Method
Amount (Fixed Rate)
28 n-12 Currency Conversion Method
Fixed Rate
29 n-12 Cross-Border Flex Method
Amount (% Rate)
30 n-15 Cross-Border Flex Method %
Rate
31 n-12 Cross-Border Flex Method
Amount (Fixed Rate)
32 n-12 Cross Border Flex Method Fixed
Rate
33 n-12 Cross-Border Cost Method
Amount (% Rate)

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 Cross-Border Fee Manager Service
Cross-Border Fee Manager Service Bulk Files

Field ID Length Comments

34 n-15 Cross-Border Cost Method %
Rate

Mastercard does not calculate a rate or amount if DE 22 (Point of Service [POS] Entry Mode]),
subfield 6 (Card Present Data) contains value 9 (Unknown; data unavailable), but the
transaction is included in report IP830020. This assists issuers with identification of why the
markup was not applied.
Trailer Record

Field ID Length Comments

1 an-17 Value of TIP830020
2 an-11 ICA
3 an-07 Endpoint
4 an-12 Total of detail records only

Cross-Border Fee Manager Service Bulk Files

Mastercard has added report IP830020 to bulk file TN70 for production and bulk file TN72 for
testing.

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 Mastercard Cardless ATM Program

Chapter 17 Mastercard Cardless ATM Program

This section provides information on the Mastercard Cardless ATM Program, which allows
cardholders to use an issuer’s mobile banking app to withdraw cash from their enabled ATM
without the need of a physical card.

Mastercard Cardless ATM Program Overview...............................................................................370

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 Mastercard Cardless ATM Program
Mastercard Cardless ATM Program Overview

Mastercard Cardless ATM Program Overview

The Mastercard Cardless ATM program is a digital ATM solution that provides improved
security, convenience, and transparency to consumers, drives engagement in the mobile
banking app, and reduces time and cost of teller service cash disbursements for issuers.
For ATM acquirers, the Mastercard Cardless ATM program allows them to meet the increased
security expectations of issuers and consumers and leverages the use of existing network
capabilities for authorization, settlement, and reconciliation.
Participation in the Mastercard Cardless ATM program is on an opt-in basis.
Functionality
Mastercard enables an issuer and ATM operator to allow cardholders to view the fee of an
ATM cash withdrawal in advance of conducting the transaction from an enabled ATM using
their mobile banking app. Cardholders initiate the withdrawal using their mobile banking app
after their arrival at the ATM or any time in advance of the withdrawal. At the ATM,
cardholders scan a Quick Response Code (QR) code or manually enter a code displayed on the
ATM. After viewing any transaction fees in their mobile banking app, cardholders authenticate
the withdrawal using their mobile device. Mastercard passes the token and details of the
withdrawal to the ATM operator about the authorization request. If the transaction is
approved by the issuer, the ATM dispenses cash to cardholders.
The Mastercard Cardless ATM program supports cardless cash withdrawals initiated on the
Mastercard Network or those received from alternate networks via the Mastercard Shared
Service Platform (MSSP) or Alternative Network Routing Solution (ANRS) protocols.
For additional information on the program, refer to Cardless ATM Program Guide.

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 Mastercard ATM Cash Pick-Up Service

Chapter 18 Mastercard ATM Cash Pick-Up Service

This section provides information on the Mastercard ATM Cash Pick-Up Service, which allows
money to be sent to individual recipients who obtain their funds from an ATM which has been
upgraded with the ATM Cash Pick-Up software.

Mastercard ATM Cash Pick-Up Service Overview......................................................................... 372

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 Mastercard ATM Cash Pick-Up Service
Mastercard ATM Cash Pick-Up Service Overview

Mastercard ATM Cash Pick-Up Service Overview

Mastercard has launched a new product called Mastercard ATM Cash Pick-Up Service to
customers. The service allows money to be sent to individual recipients who obtain their funds
from an ATM which has been upgraded with the ATM Cash Pick-Up software.
Recipients receive a code (for example, Short Message Service [SMS] text message), which
they enter into the ATM; therefore, they do not need a debit card or relationship with a bank
to receive funds.
The Mastercard ATM Cash Pick-Up Service provides the following multiple use cases for
customers engaging in the service:
• Relief Fund Disbursement
• Emergency Cash Assistance
• Cash Rewards
• Person to Person Payments
• Small Insurance Claims
• Government Aid Payments/Social Benefits
• Compensation
Mastercard provides customers with the ability to uniquely identify ATM withdrawal
transactions initiated via the Mastercard ATM Cash Pick-Up Service using a new payment type
value P01 (ATM Cash Pick-Up Transaction) in DE 48 (Additional Data), subelement 77
(Funding/Payment Transaction Type Indicator) for the Dual Message System (Authorization)
and Single Message System and in PDS 0043 (Program Registration ID) for the Dual Message
System (Clearing).
Issuers that participate in the Mastercard ATM Cash Pick-Up Service find payment type value
P01 in DE 48, subelement 77 for Mastercard ATM Cash Pick-Up transactions in the following
message types:
• Authorization Request/0100
• Authorization Request Response/0110
• Reversal Request/0400
• Reversal Request Response/0410
Acquirers that participate in the Mastercard ATM Cash Pick-Up service must support payment
type value P01 in DE 48, subelement 77 for Mastercard ATM Cash Pick-Up transactions in the
following message types:
• Financial Transaction Request/0200
• Acquirer Reversal Advice/0420—Acquirer Initiated

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 Fee Collection

Chapter 19 Fee Collection

Various IPM messages are used for fee collection.

Fee Collection Overview..............................................................................................................374

Fee Collection Messages for Retrieval Fee Billing......................................................................... 374
Fee Collection Messages for Purposes Other Than Retrieval Fee Billing........................................ 374
Presenting the Fee Collection/1740 Message...............................................................................375
Returning and Resubmitting the Fee Collection/1740 Message....................................................375
Reason Codes for Fee Collection................................................................................................. 377
Global Clearing Management System Minimal Rounding........................................................377
Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782................. 378
Fee Collection (Clearing System-generated)/1740–783........................................................... 396

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 Fee Collection
Fee Collection Overview

Fee Collection Overview

The Global Clearing Management System collects all fees through fee collection messages.
This includes retrieval fee billing transactions, as well as all other fee types.
The combination of message type indicator (MTI), DE 24 (Function Code), and DE 25
(Message Reason Code) in the fee collection message indicates the fee that is being collected.
Fee collection messages are IPM messages used for the collection or disbursement of fees that
require funds settlement between various payment parties. These messages include fees
generated between pairs of customers and fees generated between Mastercard and
customers.

NOTE: Mastercard does not provide or validate history for fee collection messages, although
the sender may optionally provide it.

Fee Collection Messages for Retrieval Fee Billing

Customers are allowed to submit IPM Fee Collection (Retrieval Fee Billing)/1740 messages for
specific document types.
Acquirers may not submit IPM Fee Collection (Retrieval Fee Billing)/1740 messages for:
• Document type 2 (copy)
• Document type 4 (substitute draft)
However, customers may continue to submit these messages for document type 1 (hard copy
original document) at a rate of USD 15 each.
Fees for document types 2 (copy) and 4 (substitute draft) are collected through the Mastercard
Consolidated Billing System (MCBS). The MasterCom® electronic imaging system does not
generate any fulfillment fee IPM messages or records.
Mastercard applies a tiered rate structure to fulfillment fee messages (applies to types 2 and
4), depending on the type of document and number of days for fulfillment.

Fee Collection Messages for Purposes Other Than Retrieval Fee Billing
Customers must settle all miscellaneous fees and charges by use of the IPM Fee Collection/
1740 message. The fee collection message is used for a number of diverse applications, and it
contains the information required for customers to process the miscellaneous fees and
charges identified in DE 25 (Message Reason Code).
Within the IPM Fee Collection/1740 message, DE 25 indicates the reason for, or type of, fee
collection. DE 3 (Processing Code), subfield 1 (Cardholder Transaction Type) indicates the
direction of funds movement, such as debit to message originator or credit to message
originator.

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Global Clearing Management System Reference Manual • 15 October 2019 374
 Fee Collection
Presenting the Fee Collection/1740 Message

Presenting the Fee Collection/1740 Message

The message originator must submit the entire Fee Collection/1740 message with function
code 700, providing the appropriate information for each element.
The message originator always must provide a control number for returns and resubmissions
and must retain the control number for audit trail purposes. The message originator provides
this control number in PDS 0137 (Fee Collection Control Number). The contents of PDS 0137
are assigned at the discretion of the message originator.
If the fee collection message requires supporting documentation, the message originator must
mail the documentation according to the instructions on the specific ICA form or as specified
in this chapter. The message originator should clearly note the PDS 0137 value on all of the
documentation to allow the receiving customer to readily match the documentation to the
applicable message and transaction.
If the transaction amount exceeds the U.S. dollar maximum for each message reason code, an
additional message or messages reflecting the same DE 25 (Message Reason Code) value
should be submitted for the excess amount.

NOTE: Transaction amount maximum can be set in currencies other than U.S. dollar. All Fee
Collection/1740 message with function code 700 transaction amount maximum settings can
be viewed in the IPM MPE Table IP0097T1: Message Reason Code Restrictions for Card
Program Identifier and Business Service Arrangement.

Returning and Resubmitting the Fee Collection/1740 Message

Reference these tables and figures for information regarding Returning and Resubmitting the
Fee Collection/1740 Message and the values that may be entered in DE 24 (Function Code).
Customers may return or resubmit a fee collection message by sending a Fee Collection/1740
message with one of the following values in DE 24:
• 700 = First Submission
• 780 = Return
• 781 = Resubmission
• 782 = Arbitration Return
Submitting the Fee Collection/1740 Message

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Global Clearing Management System Reference Manual • 15 October 2019 375
 Fee Collection
Returning and Resubmitting the Fee Collection/1740 Message

1. The receiving customer may return a fee collection within 45 calendar days after receipt of
the message for any of the following reasons. This is handled by sending a Fee Collection/
1740 with the same data originally received, except that DE 24 must contain a value of
780 to indicate a return.
– Supporting documentation not received. The receiving customer must wait 21 calendar
days from the date the message is received before returning for this reason.
– Missorted to wrong member.
– The message text was not provided or was incomplete.
– Fee charged exceeds amount allowed.
– Fee inaccurate because of entry error.
– Charged twice for same fee.
– Past applicable time frame.
– An erroneous or inappropriate progressive handling fee was received.
– Unauthorized fee/charge—receiving member did not approve or agree to accept fee/
charge. Applicable only to reason codes for good-faith acceptance (DE 25 = 7606) and
for collection letters (DE 25=7607).
2. If a fee collection is returned for any of the previously-mentioned reasons, the receiving
customer may resubmit it within 45 calendar days of receipt of the message but only if the
reason for return has been corrected (For example, the receiving customer has supplied
the missing documentation or the correct amount). To resubmit the fee collection, the

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Global Clearing Management System Reference Manual • 15 October 2019 376
 Fee Collection
Reason Codes for Fee Collection

customer sends a Fee Collection/1740 with a DE 24 value of 781 to indicate a

resubmission. The customer should indicate an explanation of the correction in DE 72
(Data Record).
3. If a fee collection is improperly resubmitted, it may be returned within 45 calendar days of
receipt of the message, using the arbitration return. Before returning the fee collection for
missing documentation, the receiving customer must wait 21 calendar days from the date
the customer receives the message. To return the fee collection, the customer sends a Fee
Collection/1740 with a DE 24 value of 782 to indicate an arbitration return. The customer
should indicate an explanation in DE 72.
Mastercard does not permit a third submission (the second submission being in step 2, above).
Any remaining unsolved disputes concerning the fee collection message may be pursued by
the customer through a compliance case filing with Mastercard.

NOTE: For case filings initiated for a violation of this subsection, the good-faith
correspondence is not required. For more information about filing procedure, refer the
Chargeback Guide.

The sending customer must reverse any Fee Collection/1740 message that is duplicated in
error. The customer handles this by processing a duplicate of the message originally processed,
except that the customer enters the letter R in PDS 0025 (Message Reversal Indicator), subfield
1 (Message Reversal Indicator). This denotes a reversal transaction.

NOTE: For more information about reversals, refer to the Reversals chapter of the Global
Clearing Management System Reference Manual.

Reason Codes for Fee Collection

The following tables describe the DE 25 (Message Reason Code) values that apply to fee
collection messages.

Global Clearing Management System Minimal Rounding

Global Clearing Management System rounds to the number of positions specified by the
currency exponent.
• After Global Clearing Management System calculates a cash disbursement fee
• After Global Clearing Management System completes the calculation of acquirer and issuer
payment amounts in acquirer/issuer payment currency
• After Global Clearing Management System completes the calculation of a cardholder
billing amount
• After Global Clearing Management System completes the calculation of an interchange fee
in issuer/acquirer payment currency

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NOTE: When Global Clearing Management System converts the transaction amount in
transaction currency to the (euro) issuer/acquirer payment currency, Global Clearing
Management System first converts the amount to the base currency (USD), and carries six
positions to the right of the decimal (no rounding). Then Global Clearing Management
System converts the USD base amount to the euro, and rounds to the euro currency
exponent.

Global Clearing Management System only rounds amounts to the number of positions to the
right of the decimal point specified by the currency exponent, once they are calculated in the
final (issuer/acquirer payment currency, cardholder billing currency) currency, as shown in the
following table.

Global Clearing Management System Minimal Rounding to Currency Exponent

IF Global Clearing THEN Global Clearing Management System rounding to the nearest
Management System currency exponent...
has…
Calculated interchange Occurs after Global Clearing Management System has completed
fees in payment calculation of the interchange fee in acquirer/issuer currency.
currencies

Calculated an Acquirer/ Occurs after Global Clearing Management System has completed
Issuer payment calculation of the acquirer/issuer payment amount.

Calculated a Occurs after Global Clearing Management System has completed

Cardholder billing calculation of the cardholder billing amount.
amount

Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782

This table describes the DE 25 (Message Reason Code) values that apply to Fee Collection
Return/1740–780 and Fee Collection Arbitration Return/1740–782 Messages.

NOTE: Transaction amount maximum can be set in currencies other than U.S. dollar. All Fee
Collection/1740 message transaction amount maximum settings can be viewed in the IPM
MPE Table IP0097T1: Message Reason Code Restrictions for Card Program Identifier and
Business Service Arrangement. For example, the maximum amount for MRC 7601 for Europe
intraregional business services for MCC and DMC acceptance brand is EUR 115.

DE 25 7600
Lost/stolen telex/phone fee; for collection of lost stolen report fee and phone or telex costs
incurred for taking a lost or stolen card report.

Maximum USD 65
Amount

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DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–32 32 LOST/STOLEN CARD TRANSACTION FEE

33 1 Space

34–100 67 When the cardholder number is absent, the cardholder name and
address should be placed in this field.

DE 73 Date lost/stolen report was taken

DE 25 7601
Recovered card award fee; for collection of reward for a card acceptor or financial
institution employee when a card has been recovered.

Maximum USD 115

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

Required Message Data:

1 1 Card type code:

1 = Mastercard® Card

3 = Gold Mastercard® Card

4 = Mastercard BusinessCard™ Card or Mastercard Corporate

Card™

5 = Mastercard Corporate Purchasing Card™

6 = Mastercard Corporate Fleet Card™

7 = Platinum Mastercard® Card

8 = World Mastercard® Card

2 1 Space

DE 72 Position Length Contents

3–6 4 Valid MCC; refer to the Quick Reference Booklet for a current listing.
Valid MCC; refer to the Quick Reference Booklet for a current listing.

7 1 Space

8 1 Card recovery reason:

1 = warning bulletin listing

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2 = authorization response

4 = code

5 = authenticator

6 = non-hologram

0 = other

Optional Message Data:

9 1 Space

10–31 22 Name of card acceptor recovering card; space-filled if not applicable

32 1 Space

33–45 13 Card Acceptor’s City

46 1 Space

47–49 3 Alphabetic; U.S. state or country code if outside the U.S. region; left-
justified with trailing spaces

50 1 Space

51–100 50 Message text

DE 73 Date card was recovered as recorded on ICA-6 form

DE 25 7602
Emergency cash disbursement fee; for collection of fees associated with the handling of
emergency cash disbursements to cardholders.

Maximum USD 5,000

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

Reason
Code Fee Description

1 1 A USD 95 US ECA-$65 BASE FEE, $30 LOCATION FEE1

B USD 95 NON-US ECA-$65 BASE FEE, $30 LOCATION

FEE1

C USD 50 ECA REQUEST CANCELED/DENIED (US

REGION)

D USD 50 ECA REQUEST CANCELED/DENIED (NON-US

REGION)

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E USD 50 REFERRED TO U.S. ISSUER BY REQUEST

F USD 50 REFERRED TO NON-U.S. ISSUER BY REQUEST

G USD 95 ECA AMOUNT TO CARD-HOLDER VIA

WESTERN UNION

H–Z Reserved for future use

2–100 99 Spaces

DE 73 Emergency cash disbursement date

DE 25 7603
Compliance ruling settlement; for collection of a compliance ruling settlement amount.

Maximum USD 5,000

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–11 11 Mastercard case number (for example, 31234-001-9)

12 1 Space

13–100 88 Optional message text as may be needed

DE 73 Compliance Ruling Date

DE 25 7604
Emergency card replacement fee; for collection of fees associated with the Emergency
Card Replacement Service (ECR Service).

Maximum USD 25,000

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason Code:

A = issuance of emergency card

B = emergency cash disbursement not picked up

C = emergency card cancelled

D = second location ECR request

E = issuer denies ECR request

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F = referred to card issuer outside the U.S. region

G = delivery of card within the U.S. region

H = delivery of card outside the U.S. region

I = initial member participation fee

J = monthly member participation fee

K = installation and training fee

L = survey statistics

M–Z reserved for future use

2–100 99 Spaces

DE 73 Emergency card replacement date

DE 25 7605
Warning bulletin handling fee—issuer originated; for settlement of warning bulletin
handling fees in accordance with Mastercard operating rules.

Maximum USD 25
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason Code:

A = incorrect card acceptor location

B = incorrect transaction date

C = combination of A and B

2 1 Space

3–25 23 Acquirer Reference Data (ARD)

26 1 Space

27–36 10 Chargeback reference number

37–100 64 Spaces

DE 73 Second presentment Central Site processing date

DE 25 7606
Good-faith acceptance settlement; for settlement of the amount of a good-faith
acceptance.

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Maximum USD 5,000

Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator

1–31 31 Reference number and the name of the person who gave acceptance

32 1 Space

33–100 68 Optional message text as may be needed

DE 73 Good-faith date

DE 25 7607
Collection letter handling fee; for settlement of the amount of a collection letter
acceptance.

Maximum USD 5,000

Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–11 11 Collection letter reference number

12 1 Space

13–100 88 Optional message text as may be needed

DE 73 Collection letter date

DE 25 7608
Telex authorization fee; for collection of fees associated with an international telex
authorization.

Maximum USD 20
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–33 33 Telex reference number and response

34–100 67 Spaces

DE 73 Authorization Request Date

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DE 25 7610
Investigation fee; for fee collection when an investigation report has been completed by
an investigating member on behalf of the requesting member.

Maximum USD 1,000

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–19 19 INVESTIGATION FEES

20–100 81 Spaces

DE 73 Investigation request date from ICA-7A form

DE 25 7611
Retrieval fee reversal; issuer-originated; acquirer may return. For acquirer use when
returning an invalid or incorrect retrieval fee reversal; applicable only if the previous cycle
message reason code was 7611, or
For issuer use when returning an invalid or incorrect non-MasterCom fulfillment fee
settlement; applicable only if the previous cycle message reason code was 7614.

Maximum USD 15
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason Code:

A = nonreceipt of document

B = illegible document

C = invalid card acceptor description

2 1 Space

3–25 23 ARD

26 1 Space

27–36 10 Issuer control number

37–100 64 Spaces

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the Central Site processed Retrieval
Fee Billing/1740-700 message.

DE 25 7612

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Retrieval handling fee; issuer-originated; acquirer may return. For acquirer use when
returning an invalid or incorrect retrieval handling fee; applicable only if the previous cycle
message reason code was 7612, or
For issuer use when returning an invalid or incorrect non-MasterCom fulfillment fee
settlement; applicable only if the previous cycle message reason code was 7614, or for
issuer use to assess the acquirer for incorrect information verified by the retrieval request
document or a TID sent as chargeback documentation.
For issuer use to charge the acquirer for incorrect information verified by the retrieval
request document or a TID sent as chargeback documentation.

Maximum USD 25
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason Code:

A = incorrect card acceptor name

B = incorrect card acceptor location

C = incorrect transaction date

2 1 Space

3–25 23 ARD

26 1 Space

If processing handling fee for TID received as a fulfillment, complete as follows:

27–36 10 Issuer control number

37 1 Space

38–59 22 Incorrect A, B, or C condition; card acceptor name, city, state, country,

or transaction date from original card acceptor description or Financial
Detail message.

60 1 Space

61–82 22 Corrected A, B, or C condition; card acceptor name, city, state,

country, or transaction date from retrieval fulfillment

83–100 18 Spaces

Position Length Content

If processing handling fee for TID received as a second presentment in response to a

chargeback, complete as follows:

27–36 10 Chargeback reference number

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37 1 Space

38–59 22 Incorrect A, B, or C condition; card acceptor name, city, state, country,

or transaction date from the original card acceptor description or
Financial Detail message.

60 1 Space

61–82 22 Corrected A, B, or C condition; card acceptor name, city, state,

country, or transaction date from retrieval fulfillment.

83–100 18 Spaces

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the Central Site processed Retrieval
Fee Billing/1740-700 or Second Presentment/1240-205 or 1240-282

DE 25 7616
Handling fee for second presentment of reason codes 12 and 35 for chip transactions
where transaction certificate and DE 55 (Integrated Circuit Card [ICC] System-Related
Data) are present in the clearing message. Acquirer-originated.

Maximum USD 25
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason Code:

A = correct information previously provided with first

presentment

2 1 Space

3–25 23 ARD

26 1 Space

27–36 10 Chargeback reference number

37–100 45 Spaces

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the member-submitted Second
Presentment/1240-205 or 1240-282

DE 25 7617
Adjustment for promotional transactions.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

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DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–38 38 ADJUSTMENT FOR PROMOTIONAL TRANSACTIONS

39–100 62 Spaces

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644

DE 25 7618
Reversal of previously reimbursed State Fuel Tax.

Maximum None
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–86 86 REVERSAL OF TAX REIMBURSE: FROM JURISDICTION SSSS VIA OIL

AAA TO AGENCY NNN PERIOD YYMM

87–100 14 Spaces

DE 25 7619
Emergency card replacement center, cash advance lockbox fee.

Maximum USD 50
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1 1 Reason
Code Fee Description

A USD 50 U.S. ECR CENTER REIMBURSEMENT

B USD 30 ECA LOCATION REIMBURSEMENT

C USD 50 NON-U.S. ECR CENTER REIMBURSEMENT

2–100 99 Spaces

DE 73 Emergency card replacement date

DE 25 7621
ATM Balance Inquiry Fee—Reserved for intra-European and inter-European use.

Maximum USD 50
Amount

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DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1-100 100

DE 25 7622
Handling fee for Authorization Related Chargebacks (4807 and 4808). This fee is sent by
the issuer after sending a First Chargeback/1442–450 or 1442–453 for one of the
chargeback reasons identified above.

Maximum USD 50
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–2 2 Values 07, 08, or 47 correspond to the IPM DE 25 (Message Reason

Code) 4807 and 4808 of the related First Chargeback/1442

3 1 Constant Space

4 1 Values for Condition indicator:

A = 4808 Authorization-related chargeback (declined)

B = 4808 Authorization-related chargeback

C = 4808 Authorization-related chargeback

D = 4807 Warning bulletin

5 1 Constant Space

6 1 Constant 1 to denote the first chargeback

7 1 Constant Space

8–17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

originally assigned by the issuer in the associated First Chargeback/
1442 message

18 1 Constant Space

19–24 6 Date of the declined authorization associated with the disputed

clearing record if position 4 of the DE 72 (Data Record) is A. MMDDYY
or spaces.

25 1 Constant Space

26–28 3 Constant 700

29 1 Constant Space

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30–49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer.
Right justified, leading zeros.

50–100 51 Constant Space

DE 73 Date of the chargeback cycle with which the handling fee is associated

DE 25 7623
Handling fee for Authorization Related Chargebacks (4807 and 4808). This fee is sent by
the acquirer after sending a Second Presentment/1240-205 or 1240-282 for one of the
chargeback reasons identified above.

Maximum USD 100

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–2 2 Values 07, 08, or 47 correspond to the IPM Message Reason Code (DE
25) 4807 and 4808 of the related First Chargeback/1442

3 1 Constant Space

4 1 Values for Condition indicator.

A = 4808 Authorization-related chargeback (declined)

B = 4808 Authorization-related chargeback

C = 4808 Authorization-related chargeback

D = 4807 Warning bulletin

5 1 Constant Space

6 1 Constant 2 to denote the second presentment

7 1 Constant Space

8–17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

originally assigned by the issuer in the associated First Chargeback/
1442 message

18-25 8 Constant Space

26–28 3 Constant 700

29 1 Constant Space

30–49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer in
the (IPM Fee Collection/1740-700 message with a DE 25 (Message
Reason Code) of 7622, or spaces, if the issuer did not send a Fee
Collection/1740-700 message. Right justified, leading zeros.

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50 1 Constant Space

51–56 6 Date authorization request approved. MMDDYY

57 1 Constant Space

58–63 6 DE 38 (Approval Code)–XXXXXX

64–100 37 Constant Space

DE 73 Date of the chargeback cycle with which the handling fee is associated

DE 25 7624
Handling fee for Authorization Related Chargebacks (4807 and 4808). This fee is sent by
the issuer after sending an Arbitration Chargeback/1442-451 or 1442-454 for one of the
chargeback reasons identified above.

Maximum USD 150

Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–2 2 Values 07, 08, or 47 correspond to the DE 25 (IPM Message Reason

Code) 4807 and 4808 of the related Arbitration Chargeback/1442
message

3 1 Constant Space

4 1 Values for Condition indicator.

A = 4808 Authorization-related chargeback (declined)

B = 4808 Authorization-related chargeback

C = 4808 Authorization-related chargeback

D = 4807 Warning bulletin

5 1 Constant Space

6 1 Constant 3 to denote Arbitration Chargeback/1422

7 1 Constant Space

8–17 10 DE 95 (Card Issuer Reference Data) from the associated First

Chargeback/1442 message

18 1 Constant Space

19–24 6 Date of the declined Authorization provided with first chargeback if

position 4 of the DE 72 (Data Record) is “A”. MMDDYY or spaces

25 1 Constant Space

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26–28 3 Constant 700

29 1 Constant Space

30–49 20 Original PDS 0137 (Fee Collection Control Number) assigned by the
acquirer in the IPM Fee Collection/1740-700 message with a DE 25
(Message Reason Code) of 7623, or spaces, if the acquirer did not
send a Fee Collection/1740-700 message.

50–63 14 Constant Space

64–100 37 Explanation for arbitration chargeback, such as, the approved

authorization was not for this transaction.

DE 73 Date of the chargeback cycle with which the handling fee is associated

DE 25 7625
PIN Management Service at ATM. (Intra-European and inter-European use only).

Maximum USD 5
Amount

DE 3 19 (credit to sender of the fee collection)

DE 72 Position Length Contents

1–100 100 PIN CHANGE xxxx xxxx xxxx xxxx (where xxxx xxxx xxxx xxxx represents
the cardholder number) OR PIN TRY COUNTER RESET xxxx xxxx xxxx
xxxx (where xxxx xxxx xxxx xxxx represents the cardholder number)

DE 73 Date the service was performed at the ATM

DE 25 7626
Private Label Merchant Fee for Private Label fee collection messages. This fee collection
message reason code is available for business service arrangements level 1 (interregional),
level 2 (intraregional), level 3 (intercountry) and level 4 (intracountry) where Private Label
exists.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7627
Fees related to the issuer’s failure to provide a Merchant Advice Code; for acquirer use
only.

Maximum USD 100

Amount

DE 3 19 (credit to message originator)

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DE 72 Position Length Contents

1–2 2 Values 07, 08, or 47 correspond to the IPM DE 25 (Message Reason

Code) 4807 and 4808 of the related First Chargeback/1442

3 1 Constant Space

4 1 Values for Condition indicator.

A = 4808 Authorization-related chargeback (declined)

B = 4808 Authorization-related chargeback

C = 4808 Authorization-related chargeback

D = 4807 Warning bulletin

5 1 Constant Space

6 1 Constant 1 to denote the first chargeback

7 1 Constant Space

8–17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

originally assigned by the issuer in the associated First Chargeback/
1442 message

18 1 Constant Space

19–24 6 Date of the declined authorization associated with the disputed

clearing record if position 4 of the DE 72 (Data Record) is “A”.
MMDDYY or spaces.

25 1 Constant Space

26–28 3 Constant 700

29 1 Constant Space

30–49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer.
Right justified, leading zeros.

50–100 51 Constant Space

DE 73 Date of the chargeback cycle with which the handling fee is associated

DE 25 7628
Reclaim surcharge—Reserved for intra-European, inter-European, and European
transaction related services.

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1-100 100

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DE 25 7700
Intracurrency settlement agreement; for settlement of amounts in accordance with an
intracountry agreement between transaction originator and transaction destination
parties.

Maximum
Amount USD 40,000

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–100 100

DE 25 7704
Bank Card Interchange fee, reverse interchange for ATM transactions (Mexico Domestic).
Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7705
Transactions below to threshold published (Mexico Domestic). Customer calculates VAT
(Value Added Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7706
Difference in interchange amount between member calculated and Mastercard calculated
(Mexico Domestic). Member calculates VAT (Value Added Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7707
Interest for late settlements (Mexico Domestic). Customer calculates VAT (Value Added
Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

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DE 25 7708
Non fullfiled documentation penalties (Mexico Domestic). Customer calculates VAT (Value
Added Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7709
Penalties on code 102 miscellaneous (Mexico Domestic). Customer calculates VAT (Value
Added Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7710
Miscellaneous (Mexico Domestic).
Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7711
Pre-fund amount, offset for others (Mexico Domestic).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7712
Bank Card Interchange fee, balance inquiry interchange. Customer calculates VAT (Value
Added Tax).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 25 7750–7799
Bilateral agreement settlement; for settlement of amounts in accordance with a bilateral
agreement between transaction originator and transaction destination parties.

Maximum USD 5,000

Amount

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DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–100 100

DE 73 Charge date

DE 25 7800
MCBS customer settlement; for collection or payment of such things as customer
assessments, processed through the Mastercard Consolidated Billing System (MCBS).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

“MCBS - IIIIIII SS - XXXXXXXXXXXXXXXXXXXXXX NNN

ZZZ,ZZZ,ZZ9.99 BILLING CYCLE DATE - MMM DD, CCYY.”

1–4 4 Constant = MCBS (system identification)

5 1 Space

6 1 Constant = Dash (-)

7 1 Space

8–14 7 IIIIIII = Customer ID (ICA)

15–16 2 Spaces

17–18 2 SS = Service Type

19 1 Space

20 1 Constant = Dash (-)

21 1 Space

22–43 22 XXXXX…XXX = Service Description

44–45 2 Spaces

46–48 3 NNN = Numeric Currency Code

49–50 2 Spaces

51–64 14 ZZZ,ZZZ,ZZ9.99 = Dollar Amount

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65–67 3 Spaces

68–85 18 BILLING CYCLE DATE

86 1 Space

87 1 Constant = Dash (-)

88 1 Space

89–91 3 MMM = Calendar Month (alpha)

92 1 Space

93–94 2 DD = Calendar Day

95 1 Constant = Comma (,)

96 1 Space

97–100 4 CCYY = Calendar Year

Fee Collection (Clearing System-generated)/1740–783

This table describes the DE 25 (Message Reason Code) values that apply to Fee Collection
(Clearing System-generated)/1740–783 Messages.

NOTE: Transaction amount maximum can be set in currencies other than U.S. dollar. All Fee
Collection/1740 message transaction amount maximum settings can be viewed in the IPM
MPE Table IP0097T1: Message Reason Code Restrictions for Card Program Identifier and
Business Service Arrangement. For example, the maximum amount for MRC 7601 for Europe
intraregional business services for MCC and DMC acceptance brand is EUR 115.

DE 25 7621
ATM Balance Inquiry Fee—Reserved for intra-European use

DE 3 19 (credit to sender), 29 (debit to sender)

DE 25 7625
PIN Management Service at ATM—Reserved for intra-European use

DE 3 19 (credit to sender), 29 (debit to sender)

DE 25 7629
Interregional non-financial ATM interchange for collection of interchange due on a non-
financial ATM transaction (Single Message System-originated.

Maximum USD 5
Amount

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DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–11 11 DE 32 (Acquiring Institution ID Code) from the authorization

message. This value contains the acquiring institution identification
code. It is right-justified with leading zeros.

12–22 11 DE 33 (Forwarding Institution ID Code) from the authorization

message. This value contains the forwarding institution identification
code. It is right-justified with leading zeros.

23–26 4 DE 13 (Date, Local Transaction) from the authorization message. This

value contains the local month and day at which the transaction takes
place at the point of service.

27–32 6 DE 11 (Systems Trace Audit Number) from the authorization message.

This value contains the systems trace audit number (STAN) which is a
unique identifier assigned to each transaction by the message
originator.

33–44 12 DE 37 (Retrieval Reference Number) from the authorization message.

This value contains the retrieval reference number and is supplied by
the system, retaining the original document of the transaction.

45–64 20 DE 127 (Private Data) from the authorization message. This value
contains the first 20 positions of Acquirer Private Data. It is left
justified with trailing spaces.

DE 25 7702
Domestic ATM VAT Fees/Services—Used for the Mexico Domestic Fee Collection/1740
message on the VAT amount on ATM transactions. Mastercard calculates the VAT when
submitted with this message reason code.

DE 25 7800
MCBS customer settlement; for collection or payment of such things as customer
assessments, processed through the Mastercard Consolidated Billing System (MCBS).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

“MCBS - IIIIIII SS - XXXXXXXXXXXXXXXXXXXXXX NNN

ZZZ,ZZZ,ZZ9.99 BILLING CYCLE DATE - MMM DD, CCYY.”

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1–4 4 Constant = MCBS (system identification)

5 1 Space

6 1 Constant = Dash (-)

7 1 Space

8–14 7 IIIIIII = Customer ID (ICA)

15–16 2 Spaces

17–18 2 SS = Service Type

19 1 Space

20 1 Constant = Dash (-)

21 1 Space

22–43 22 XXXXX…XXX = Service Description

44–45 2 Spaces

46–48 3 NNN = Numeric Currency Code

49–50 2 Spaces

51–64 14 ZZZ,ZZZ,ZZ9.99 = Dollar Amount

65–67 3 Spaces

68–85 18 BILLING CYCLE DATE

86 1 Space

87 1 Constant = Dash (-)

88 1 Space

89–91 3 MMM = Calendar Month (alpha)

92 1 Space

93–94 2 DD = Calendar Day

DE 72 Position Length Contents

95 1 Constant = Comma (,)

96 1 Space

97–100 4 CCYY = Calendar Year

DE 25 7802

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 Fee Collection
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Interchange compliance adjustment; for settlement of financial amounts related to

interchange compliance.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–33 33 “INTERCHANGE COMPLIANCE ADJUSTMENT”

34–100 67 Spaces

DE 25 7803
Interchange compliance adjustment reversal; for settlement of financial amounts related
to the reversal of a previous interchange compliance adjustment.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–41 41 “INTERCHANGE COMPLIANCE BACKOUT ADJUSTMENT”

42–100 59 Spaces

DE 25 7804
ATM transaction settlement; for settlement of daily ATM transaction amounts.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

Indicates an association with ATM processing:

When the issuer receives only summary data from Global Clearing
Management System, the message text must be one of the following:

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1–7 7 “NET AMT” = transaction amount field equals the net dollar value of
all ATM withdrawals transacted by an issuer’s cardholders.

8–100 93 Spaces

1–4 4 “FEES” = transaction amount field equals the accumulation of

processing fees owed by the issuer for noncash withdrawal
transactions and the acquirer interchange fees owed by the issuer

5–100 96 Spaces

1–5 5 “SWFEE” = transaction amount field represents the Mastercard ATM

Network fees owed by the issuer for ATM transactions

6–100 95 Spaces

When the issuer receives Global Clearing Management System detail

data, the message text must be one of the following:

1–4 4 “FEES” = transaction amount field represents the accumulated

processing fees owed by the issuer for noncash withdrawal
transactions

5–100 96 Spaces

1–5 5 “SWFEE” = transaction amount field represents the Mastercard ATM

Network fees owed by the issuer for ATM transactions

6-100 95 Spaces

When an ATM acquirer receives Global Clearing Management System

settlement information in the Fee Collection/1740 message, the
message text must be one of the following:

1–5 5 “NETAQ” = if summarizing the ATM cash disbursement

“FEEAQ” = if summarizing the ATM fees owed by the acquirer

6–100 95 Spaces

DE 25 7805
ATM intracountry switch fee settlement; for settlement of daily ATM transaction
intracountry switch fees.

Maximum None
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

When the issuer receives Global Clearing Management System

summary or detail data, the message text must be:

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 Fee Collection
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1–5 5 “ISISW” = transaction amount represents Cirrus ATM fees owed by

the issuer for intracountry ATM activity

6–100 95 Spaces

DE 25 7806
ATM Single Message Transaction Manager switch fee settlement; for settlement of MDS
Single Message Transaction Manager Switch Fees.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–100 100

DE 25 7807
ATM intracountry first chargeback settlement; for settlement of daily ATM transaction
intracountry first chargeback amounts.

Maximum None
Amount

DE 3 29 (debit to message originator)

DE 72 Position Length Contents

When the issuer receives Global Clearing Management System detail

data, the message text must be:

1–5 5 “ICHBK” = transaction amount represents chargeback funds owed to

the issuer for intracountry ATM activity

6–100 95 Spaces

DE 25 7808
Miscellaneous Override Financial Adjustment.

Maximum None
Amount

DE 3 19 (credit to message originator [Mastercard]), 29 (debit to message originator

[Mastercard])

DE 72 Position Length Contents

1–29 29 “INTERCHANGE ADJUSTMENT FOR :”

30–37 8 Process Date in MM/DD/YY format

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 Fee Collection
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38–38 1 Blank (only when the fee collection is for the issuer)

39–76 78 Account Range (only when the fee collection is for the issuer)

DE 25 7811
Reimbursement of State Fuel Tax.

Maximum None
Amount

DE 3 19 (credit to message originator [Mastercard]), 29 (debit to message originator

[Mastercard])

DE 72 Position Length Contents

For credit to message originator:

1–80 80 “TAX REIMBURSE DEBIT FROM JURISDICTION SSSS VIA OIL AAA TO
AGENCY NNN PERIOD YYMM”

81–100 20 Spaces

For debit to message originator:

1–81 81 “TAX REIMBURSE CREDIT FROM JURISDICTION SSSS VIA OIL AAA TO
AGENCY NNN PERIOD YYMM”

82–100 19 Spaces

DE 25 7812
Collection or return of collateral for security arrangement.

Maximum None
Amount

DE 3 19 (credit to message originator [Mastercard]), 29 (debit to message originator

[Mastercard])

DE 72 Position Length Contents

For credit to message originator:

1–49 49 “COLLECTION OF COLLATERAL FOR SECURITY ARRANGEMENT”

50–100 51 Spaces

For debit to message originator:

1–46 46 “RETURN OF COLLATERAL FROM SECURITY ARRANGEMENT”

47–100 54 Spaces

DE 25 7813

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 Fee Collection
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IVA fees

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–15 15 IVA on IC/Fee

16–100 85 Spaces

DE 25 7820
Disaster Relief Fund (credit to sender).

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–100 100

DE 25 7821
MCBS Credit Emergency.

Maximum None
Amount

DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 72 Position Length Contents

For both credit to message originator and debit to message originator:

1–100 100

DE 25 7822
Settlement Adjustment

Maximum None
Amount

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 Fee Collection
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DE 3 19 (credit to message originator), 29 (debit to message originator)

DE 73 The date of the settlement adjustment

DE 72 Position Length Contents

1–21 21 “SETTLEMENT ADJUSTMENT”

22–100 79 Spaces

DE 25 7823
Single Message System Offline Debit Settlement (Mastercard Internal Use Only).

Maximum None
Amount

DE 3 19 (credit to message originator)

DE 72 Position Length Contents

1–100 100 Single Message System feed through S.A.M.

DE 25 7824
Collection of Reward Amount as agreed upon between the customers.

Maximum None
Amount

DE 3 29 (debit to message originator)

DE 72 Position Length Contents

1–27 27 “Collection of reward amount”

28–100 73 Spaces

DE 25 7827
EDP Adjustment Amount (Used only by the Mastercard Network for the EDP Service).

DE 3 19 (credit to message originator), 29 (debit to message originator)

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 Reversals

Chapter 20 Reversals
This section describes how to create reversals and how Global Clearing Management System will
process them.

How to Create Reversals............................................................................................................. 406

Identification of Reversal Messages.........................................................................................406
Identification of Reversal Files................................................................................................. 406
How to Send Reversal Messages.............................................................................................406
How to Send Reversal Files—Full Files..................................................................................... 407
How to Send Reversal Files—Partial Files.................................................................................408
Using Mastercard Software Utilities to Create Reversals.......................................................... 409
Having Mastercard Reverse Files............................................................................................. 409
Editing Reversal Messages...........................................................................................................410
Reporting Reversal Rejects...........................................................................................................410
Duplicate Global Clearing Management System Postings............................................................ 410
Global Clearing Management System Editing for Duplicate Files............................................. 410
Reasons for Duplicate Global Clearing Management System Files or Postings......................... 410
Identification of Duplicate Global Clearing Management System Postings...............................411

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 Reversals
How to Create Reversals

How to Create Reversals

A reversal message informs the receiver to disregard the original message.
The settlement values for a reversal message and its original together produce a net
settlement value of zero.
Customers can reverse one or more individual messages or an entire clearing file.

Identification of Reversal Messages

Customers must identify a single reversal message by adding PDS 0025 (Message Reversal
Indicator) to the message and populating its subfields correctly.

In… The customer provides…

Subfield 1 A value of R.

Subfield 2 The original Global Clearing Management System processing date

of the message being reversed.

When a Single Message System to Dual Message System (Authorization) transaction (that is,
bridged transaction) has been reversed due to an ATM Withdrawal failure, a reversal message
is generated by Mastercard for the original 1240/Presentment message. The Global Clearing
Management System would directly deduct the non-financial fee into the reversal message
and no longer generate a Fee Collection (Retrieval Fee Billing)/1740 message non-financial
fee.

Identification of Reversal Files

Customers have two options for identifying a reversal file.
• Add PDS 0026 (File Reversal Indicator) to the File Header message of the file, and populate
subfield 1 (File Reversal Indicator) with a value of R. In subfield 2 (Central Site Processing
Date of Original File), provide the original Global Clearing Management System processing
date of the file being reversed.
• Add PDS 0025 (Message Reversal Indicator) to every message in the file except for the File
Header and File Trailer messages. Subfield 1 (Message Reversal Indicator) must contain a
value of R. Subfield 2 (Central Site Processing Date of Original Message) must contain the
original Global Clearing Management System processing date of the message being
reversed.

How to Send Reversal Messages

Customers will follow the procedure below to reverse an individual message.

Procedure
1. The customer realizes that it needs to reverse an individual message.

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 Reversals
How to Send Reversal Files—Full Files

2. The customer extracts the message to be reversed. For example, if a customer wants to
reverse a message containing a specific cardholder account number, the customer can use
the IPM Message Selection Criteria utility to select and extract the message containing
that cardholder account number.
3. The customer adds PDS 0025 (Message Reversal Indicator) to the message, with the value
R in subfield 1 (Message Reversal Indicator) and the original Global Clearing Management
System processing date in subfield 2.
4. The customer adds the reversal message to one of its outgoing clearing files.
5. If the customer’s original message needs to be resent because it contained incorrect data,
the customer corrects the data in the original message and resubmits it.
Global Clearing Management System will recognize and process individual reversal
messages submitted in a file. There is no requirement to isolate reversal messages or to
send them in separate files.

How to Send Reversal Files—Full Files

Global Clearing Management System allows customers to send one original file and one
reversal file using the same file ID. This allows customers to correct invalid files with minimal
changes to the original file. Customers will follow the procedure below to reverse full files.

Procedure
1. The customer realizes that it needs to reverse an entire file.
2. The customer sends a full file reversal using the same file ID or a new file ID. The customer
adds PDS 0026 (File Reversal Indicator) to the file header message with the value R in
subfield 1 (File Reversal Indicator) and the original Global Clearing Management System
processing date in subfield 2 (Central Site Processing Date of Original File).
Because PDS 0026 is present in the File Header message, Global Clearing Management
System recognizes the file as a full file reversal. Global Clearing Management System
inserts PDS 0025 (Message Reversal Indicator) into each individual message in the file and
processes and distributes each message as a single-item reversal.
3. If the customer’s original file needs to be resent because it contained incorrect data, the
customer corrects the data in the original file and resubmits it using a different file ID.
Example
For example, suppose that customer 001234 sends file ID 0020406150000000123400001
on 15 June 2004.
1. The customer realizes that the data is incorrect and that the customer needs to reverse
the file and resubmit the data.
2. Customer 001234 sends a full file reversal using the same file ID
0020406150000000123400001, on 16 June 2004 to reverse the incorrect data. The
customer adds PDS 0026 to the File Header message of this file before sending it. The
date provided in PDS 0026, subfield 2 must be the 15 June 2004 date. This is the
original file processing date. Global Clearing Management System processes each
individual message in the file as a reversal; however, if an individual message is already
a reversal transaction, it will be processed as an original transaction.

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 Reversals
How to Send Reversal Files—Partial Files

3. Customer 001234 then corrects the data in the original file and resubmits it using a
different file ID, such as 0020406150000000123400002.
If customer 001234 submits the corrected data using file ID
0020406150000000123400001 again, Global Clearing Management System will reject
this third file because it contains a duplicate file ID. Global Clearing Management System
allows one original file and one reversal file for each file ID.
Allowing customers to reverse files using the same file ID simplifies the creation of reversal
files. Customers only need to populate PDS 0026 in the File Header message with an R to
indicate that the entire file is being reversed.

NOTE: Customers will not receive an entire file that is a full file reversal file (that is, PDS
0026 will not be present in the customer inbound file header). In the receiving customer’s
clearing file, reversal messages will be mixed with non-reversal messages.

How to Send Reversal Files—Partial Files

To send a partial reversal file, follow the steps outlined in this section.

Procedure
1. Extract the messages to be reversed into a new file. For example, if a customer wants to
reverse all of the first chargebacks from a file, the customer can extract all first
chargebacks from the original file.
2. Create a file header message with a value of R in PDS 0026 (File Reversal Indicator).
3. Create a file trailer containing zeros in PDS 0301 (File Amount, Checksum) and PDS 0306
(File Message Counts).
4. Submit the file for processing.
Customers should not combine messages from more than one processing date to be
reversed. This is because the date in subfield 2 (Central Site Processing Date of Original
File) of PDS 0026 will allow specification of only one original processing date for the
currency conversion rate history. The Global Clearing Management System uses that date’s
currency conversion rate (if necessary) to apply to the reversal transactions.

NOTE: Customers submitting a full or partial reversal file (indicated by the presence of
PDS 0026 in the File Header) are not required to use a File ID that has already been
processed. For example, customers creating a partial reversal file may choose to assign a
new File ID instead of using the original File ID.

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 Reversals
Using Mastercard Software Utilities to Create Reversals

NOTE: If multiple partial reversals are required before clearing a transaction, each reversal
should always reference the original transaction data. For example, within DE 48
(Additional Data—Private Use), subelement 63 (Trace ID), DE 90 (Original Data Elements)
and DE 4 (Amount, Transaction) of the Reversal Request/0400 message, the amount value
should be the authorized amount from the original transaction to support issuer matching
(do not use the adjusted amount from DE 95 (Replacement Amounts) within a previous
reversal, nor the requested amount if a partial approval applies). If an incremental
authorization has been submitted, a reversal should reference original transaction data
and DE 4 should be the sum of the original authorized amount plus any incremental
amounts.

Using Mastercard Software Utilities to Create Reversals

Mastercard IPM Software Utilities consist of a suite of utilities that read, write, and process
messages in the IPM format. Customers can use one of these utilities, the IPM Message
Selection Criteria Utility, to simplify the process of creating reversal messages and files.
This utility reads a given IPM clearing file and selects messages that match the customer-
specified criteria. Its output is an IPM file containing a File Header message and the messages
that match the selection criteria.
A customer can use the IPM Message Selection Criteria Utility to select the messages it wants
to reverse. For example, if a customer needs to reverse all first presentments submitted for the
U.S. region Merit III interchange program with a transaction date of 21 August 2003, the
customer can create selection criteria for these conditions. The customer uses the selection
criteria as input to the IPM Message Selection Criteria Utility, along with the original file.
The utility selects all messages that match the input criteria and puts them in an output file
along with the file header message of the original file. The customer would then insert PDS
0026 (File Reversal Indicator) into this file header message and optionally change the value of
PDS 0105 (File ID). Finally, the customer would add a file trailer message to the end of this file,
with values of all zeros in PDS 0301 (File Amount, Checksum) and PDS 0306 (File Message
Counts). Then the customer would send this file to Mastercard for processing within Global
Clearing Management System.

NOTE: For more information about the IPM Message Selection Criteria, refer to either the
Clearing Optimizer—Mainframe guide or the Clearing Optimizer—Workstation Plus guide.

Having Mastercard Reverse Files

Mastercard will submit full file reversals at the customer’s request.
Customers that want to request this service must provide the File ID of the file to be reversed
and the original Global Clearing Management System processing date of that file to their
Global Customer Service team, regional office representative, or Strategic Operations
representative. Mastercard will use this information to create and submit a full-file reversal as
documented in the Ho to send Reversal Files—Full Files section.

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 Reversals
Editing Reversal Messages

Editing Reversal Messages

Global Clearing Management System automatically excludes reversal messages from most
interchange qualification edits. For example, Global Clearing Management System excludes
reversal First Presentment/1240 messages from interchange timeliness and industry-related
addendum requirements.
Global Clearing Management System does edit the File ID in all full-file reversals to ensure that
it has not been previously reversed. As noted, the File ID in a reversal file does not have to be
the original file ID, but it cannot be a File ID that has been used in a previous full-file reversal.

Reporting Reversal Rejects

Global Clearing Management System generates Message Exception/1644 or File Reject/1644
messages for all rejected messages or files. Within these error messages, Global Clearing
Management System designates reversal transactions by the presence of PDS 0025 (Message
Reversal Indicator) in the individual message for individual transaction reversals and PDS 0026
(File Reversal Indicator) in the header message for full file reversals.

Duplicate Global Clearing Management System Postings

A duplicate file occurs when Global Clearing Management System processes an individual
transaction more than once. Global Clearing Management System has certain edits and built-
in controls that help it to detect duplicate files.

Global Clearing Management System Editing for Duplicate Files

To prevent a duplicate file from being processed, Global Clearing Management System rejects
the entire file if PDS 0105 (File ID) in the File Header/1644 message matches one that was
processed within the last 180 days for the customer or processor (specified in PDS 0105,
subfield 3 [Processor ID]).
For example, suppose that customer 1234 sends file ID number
00204061500000001234000001. If the Global Clearing Management System File ID History
File contains the same file ID number within the last 180 days of file IDs from customer 1234,
Global Clearing Management System will reject that second file
00204061500000001234000001 as a duplicate file.

Reasons for Duplicate Global Clearing Management System Files or Postings

Duplicate postings may occur for various reasons.
• An operator changes the file ID number on a previously processed file and resends it.
• Previously processed merchant deposits are processed again.
• The merchant deposits the same transaction more than once.

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 Reversals
Identification of Duplicate Global Clearing Management System Postings

Mastercard recommends that customers establish controls to prevent and detect these and
other errors to help prevent duplicate files and postings.

Identification of Duplicate Global Clearing Management System Postings

If a duplicate posting does occur, either the sending customer or the receiving customer may
identify it.
If the receiving customer discovers a duplicate posting, it must notify the sending customer.
The sending customer must inform the St. Louis Operations Center by telephone and then
take action to correct the duplicate postings by submitting reversals.
When the sending customer notifies Mastercard about a duplicate posting, the customer must
provide the following information about both the original and the duplicated postings:
• File ID numbers
• Net amounts

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 Collection-Only Transaction Reporting

Chapter 21 Collection-Only Transaction Reporting

This chapter describes collection-only transactions and the Global Collection Only (GCO) Data
Collection Program.

Collection-only Transactions........................................................................................................ 413

Global Collection Only Data Collection Program..........................................................................413
Collection-only Transactions that are Not Permitted for Global Collection Only....................... 414
Reversing Collection-only Data............................................................................................... 414
Editing Collection-only Data................................................................................................... 414
Reporting GCO Data Collection Program Rejects.................................................................... 414
Collection-only Activity in Relation to Reconciliation Messages............................................... 415
IPM First Presentment/1240—Global Collection Only Format.......................................................415
IPM 1240 Global Collection Only Data Elements.....................................................................415
Global Collection Only Mapping for Single Message System Transactions.................................... 419
Mapping 0200 to 1240.......................................................................................................... 419

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 Collection-Only Transaction Reporting
Collection-only Transactions

Collection-only Transactions
A collection-only transaction is a transaction that is reported to Mastercard by means of the
Global Clearing Management System, but which has not been cleared nor settled through the
Mastercard Network. A customer must identify each collection-only transaction by populating
PDS 0165 (Settlement Indicator), subfield 1 (Settlement Indicator), value C (Collection Only).
A customer may combine collection-only transactions with other transactions in the same file,
or provide collection-only transactions in a separate file.

Global Collection Only Data Collection Program

Transactions are processed in a variety of ways.
To ensure complinace with the Global Collection Only (GCO) Data Collection Program, a
Mastercard customer must submit all purchase, purchase with cash back, unique/quasi-cash,
ATM cash withdrawal, manual cash disbursement, Payment Transaction, and refund/credit
transactions to Mastercard as collection-only if the:
• Transaction was effected with a card or account issued under a Mastercard-assigned BIN
and bearing any one or more of the Mastercard brands (including (including Mastercard,
Debit Mastercard, Maestro, or Cirrus)
• Transaction was not switched on the Mastercard Network.
For the purposes of this program, switched on the Mastercard Network means the submission
of a financial trasnaction message to the Single Message System or the Global Management
Clearing System in request for the settlement of an outstanding debit or credit position in
connection with an original completed transaction.
These transaction types are identified with the following values:
• Purchase (DE 3 [Processing Code], subfield 1 [Cardholder Transaction Type] = 00)
• ATM cash withdrawal (DE 3, subfield 1 = 01).
• Purchase with cash back (DE 3, subfield 1 = 09)
• Manual cash disbursement (DE 3, subfield 1 = 12)
• Unique/quasi-cash (DE 3, subfield 1 = 18)
• Refund/credit (DE 3, subfield 1 = 20)
• Payment Transaction (DE 3, subfield 1 = 28)
Although not required, customers may also submit balance inquiries (DE 3, subfield 1 = 30),
balance transfers (DE 3, subfield 1 = 50) and convenience checks (DE 3, subfield 1 = 17) to
Mastercard as collection-only transactions. If submitted, these transaction types must contain
a Card Acceptor Business Code (MCC) of 6012 (Financial Institutions—Merchandise and
Services).

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 Collection-Only Transaction Reporting
Collection-only Transactions that are Not Permitted for Global Collection Only

Collection-only Transactions that are Not Permitted for Global Collection Only
These sections describe requirements for the reporting of collection-only transactions,
including such reporting performed pursuant to the GCO Data Collection Program.
The following types of transactions should not be submitted as collection-only:
• Retrieval Request/1644
• First Chargeback/1442
• Second Presentment/1240
• Arbitration Chargeback/1442
• Fee Collection (Retrieval Fee Billing)/1740
• Fee Collection (Other)/1740
• Fee Collection (Handling Fees)/1740

Reversing Collection-only Data

A customer should reverse collection-only data only in limited circumstances.
• Previously submitted collection-only data was duplicated (same messages sent twice).
• Previously submitted collection-only data was incorrect.

NOTE: For instructions for reversing a single message or an entire file (applicable to both
collection-only and non-collection-only activity), refer to Bilateral Settlement Activity.

Editing Collection-only Data

The Global Clearing Management System automatically excludes collection-only transactions
from most interchange qualification edits.
For example, the Global Clearing Management System excludes collection-only First
Presentment/1240 transactions from authorization code, interchange timeliness, and industry-
related addendum requirements.

Reporting GCO Data Collection Program Rejects

The Global Clearing Management System generates Message Exception/1644 or File Reject/
1644 messages for all rejected messages and files. Within these error messages, collection-
only activity is designated by a value of C in PDS 0165 (Settlement Indicator), subfield 1
(Settlement Indicator).
The Global Clearing Management System reports rejected GCO Data Collection Program data
through the Global Collection Only Error Detail Report, report number IP857010-BB. Refer to
the Clearing Processing Details chapter of this manual for more information.

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 Collection-Only Transaction Reporting
Collection-only Activity in Relation to Reconciliation Messages

Collection-only Activity in Relation to Reconciliation Messages

IPM Financial Position Detail Reconciliation messages provide amount and fee totals in each
customer’s reconciliation currency. These totals are also optionally available in transaction
currency.
Because Mastercard does not clear or settle collection-only transactions, IPM Financial Position
Detail Reconciliation message totals for these transactions in the customer’s reconciliation
currency will contain zeros. If the customer has requested the “transaction currency” option
for reconciliation messages, IPM Financial Position Detail Reconciliation message totals for
these transactions in the transaction currency will be present and will contain the correct (non-
zero) amounts.
Customers that want to receive reconciliation totals for collection-only activity should request
both the transaction currency option and the settlement indicator option for IPM Financial
Position Detail Reconciliation messages to differentiate amount totals for these transactions.
Customers may select category options using the Global Clearing Management System
Parameter Worksheet (Form 600).
Global Clearing Management System offers one report—IP727010-AA, Clearing Cycle
Acknowledgement—for the reconciliation of Global Collection Only clearing activity. However,
because Global Clearing Management System does not calculate the reconciliation amount on
these transactions, the amount fields will be zero. The counts field will contain the number of
collection items processed.

IPM First Presentment/1240—Global Collection Only Format

A customer must submit various data as collection-only using the IPM First Presentment/1240
transaction format in order to comply with the GCO Data Collection Program, referred to in
this section as the IPM First Presentment/1240—Global Collection Only format).

IPM 1240 Global Collection Only Data Elements

This table identifies all mandatory and optional data elements and private data subelements
for the IPM First Presentment/1240—Global Collection Only transactions.

Data Element—IPM 1240 Data Element Name—IPM

1240 M—Mandatory/O—Optional
- Message Type Identifier M
- Bit Map, Primary M
1 Bit Map, Secondary M
2 PAN M
3 Processing Code M
4 Amount, Transaction M

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 Collection-Only Transaction Reporting
IPM 1240 Global Collection Only Data Elements

Data Element—IPM 1240 Data Element Name—IPM

1240 M—Mandatory/O—Optional
5 Amount, Reconciliation O
6 Amount, Cardholder Billing O
12 Date and Time, Local Transaction M
14 Date, Expiration O
22 Point of Service Data Code M
23 Card Sequence Number O
24 Function Code M
25 Message Reason Code O
26 Card Acceptor Business Code M
30 Amounts, Original O
31 Acquirer Reference Data M
32 Acquiring Institution ID Code O
33 Forwarding Institution ID Code M
37 Retrieval Reference Number O
38 Approval Code O
40 Service Code M
41 Card Acceptor Terminal ID M
42 Card Acceptor ID Code M
43 Card Acceptor Name/Location M
48 Additional Data M
p0023 Terminal Type O
p0025 Message Reversal Indicator O
p0043 Program Registration ID O
p0052 Electronic Commerce Security
Level Indicator O
p0057 Transaction Category Indicator O
p0058 Token Assurance Level O
p0059 Token Requestor ID O
p0080 Amount, Tax O
p0145 Amount, Alternate Transaction
Fee O

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 Collection-Only Transaction Reporting
IPM 1240 Global Collection Only Data Elements

Data Element—IPM 1240 Data Element Name—IPM

1240 M—Mandatory/O—Optional
p0146 Amounts, Transaction Fee O
p0148 Currency Exponents M
p0149 Currency Codes, Amounts,
Original O
p0157 Alternate Processor Indicator O
p0158 Business Activity O
p0159 Settlement Data O
p0165 Settlement Indicator M
p0170 Card Acceptor Inquiry
Information O
p0171 Alternate Card Acceptor
Description O
p0172 Sole Proprietor Name O
p0173 Legal Corporate Name O
p0174 Dun & Bradstreet Number O
p0175 Card Acceptor URL O
p0176 Mastercard Assigned ID O
p0177 Cross-border O
p0178 Alternate Card Acceptor
Description Data 2 O
p0179 Long Running Transaction (LRT)
Indicator O
p0180 Domestic Card Acceptor Tax ID O
p0181 Installment Payment Data O
p0189 Point-of-Interaction (POI) Phone
Data O
p0190 Partner ID Code O
p0191 Originating Message Format O
p0193 Subscriber Reference Data O
p0194 Remote Payment Program Date O
p0195 Installment Data O
p0196 Mobile Phone Reload Data O

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 Collection-Only Transaction Reporting
IPM 1240 Global Collection Only Data Elements

Data Element—IPM 1240 Data Element Name—IPM

1240 M—Mandatory/O—Optional
p0197 National Use Tax Data O
p0198 Device Type O
p0199 Funding Transaction Information O
p0202 PPAN Syntax Error O
p0204 Amount, Syntax Error O
p0205 Syntax Return, Message Error
Indicator O
p0207 Wallet Identifier O
p0208 Additional Merchant Data O
p0209 Independent Sales Organization
ID O
p0210 Transit Program O
p0211 Terminal Compliant Indicator O
p0220 Brazil Merchant Tax ID O
p0225 Syntax Return, Original Message
Reason Code O
p0261 Risk Management Approval
Code (Rejected by Mastercard) O
p0375 Member Reconciliation Indicator
1 O
p0446 Transaction Fee Amount, Syntax
Error O
p0502 Custom Identifier O
p0596 Card Acceptor Tax ID O
p0597 Total Tax Amount O
p0623 Motor Fuel Information O
p0629 Odometer Reading O
p0799 Test Case Traceability Identifiers O
p10XX Member-to-Member Proprietary
Data (p1000 through p1099) O
49 Currency Code, Transaction M
50 Currency Code, Reconciliation O

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 Collection-Only Transaction Reporting
Global Collection Only Mapping for Single Message System Transactions

Data Element—IPM 1240 Data Element Name—IPM

1240 M—Mandatory/O—Optional
51 Currency Code, Cardholder
Billing O
54 Amounts, Additional O
55 Integrated Circuit Card (ICC)
System Related Data O
62 Additional Data 2 O
63 Transaction Life Cycle ID O
71 Message Number M
94 Transaction Originator Institution
ID Code M
123 Additional Data 3 O
124 Additional Data 4 O
125 Additional Data 5 O

Global Collection Only Mapping for Single Message System

Transactions
This section shows how to map a Financial Transaction Request/0200 transaction to the IPM
format using field mapping.

Mapping 0200 to 1240

Single Message System Financial Transaction Request/0200 data can be mapped to IPM First
Presentment/1240—Global Collection Only transactions. Note that some of the data will have
to be set directly in IPM 1240 and cannot be used from 0200 message, that is, DE 24 function
code needs to be set to 0200 in IPM 1240 message.
An example also is provided on how to build an IPM First Presentment/1240—Global
Collection Only transaction using Mastercard Single Message System ISO 8583–1987 format
as the source.
This may be useful for customers that switch their global or cross-border transactions through
the Single Message System and are required to report collection-only transactions to Global
Clearing Management System in the IPM First Presentment/1240—Global Collection Only
format. The Single Message System format may differ slightly from a customer’s local switch;
however, it should provide a general baseline for customers.

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
- Message Type M 1240
Identifier
- Bit Map, M
Primary
1 Bit Map, M
Secondary
2 PAN M 2 PAN
3 Processing M 3 Processing
Code Code
4 Amount, M 4 Amount,
Transaction Transaction
5 Amount, O 5 Amount,
Reconciliation Settlement
6 Amount, O 6 Amount,
Cardholder Cardholder
Billing Billing
12 Date and Time, M 13 Date, Local
Local Transaction
Transaction
14 Date, O 14 Date,
Expiration Expiration
22 Point of Service M 22 Point-of-Service
Data Code Entry Mode
- s7 Card Data: M 22/1 Point-of-Service
Input Mode Entry Mode
23 Card Sequence O 23 Card Sequence
Number Number
24 Function Code M 200
25 Message O
Reason Code
26 Card Acceptor M 18 Merchant Type
Business Code (MCC)

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
30 Amounts, O 4 Amount,
Original Transaction
5
Amount,
Settlement

31 Acquirer M 63/5 Network Data

Reference Data
32 Acquiring O 32 Acquiring
Institution ID Institution
Code Identification
Code
33 Forwarding M 33 Forwarding
Institution ID Institution
Code Identification
Code
37 Retrieval O 37 Retrieval
Reference Reference
Number Number
38 Approval Code O
40 Service Code M 35 Track 2 Data
41 Card Acceptor M 41 Card Acceptor
Terminal ID Terminal
Identification
42 Card Acceptor M 42 Card Acceptor
ID Code Identification
Code
43 Card Acceptor M 43 Card Acceptor
Name/Location Name and
Location
48 Additional Data M 48 Additional Data
p0023 Terminal Type O 61/10 POS Data
p0025 Message O
Reversal
Indicator
p0043 Program O 110/2 Additional Data
Registration ID -2

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
p0052 Electronic O 48/42 Additional Data
Commerce
Security Level
Indicator
p0057 Transaction O 48/61 Additional Data
Category
Indicator
p0058 Token O
Assurance Level
p0059 Token O
Requestor ID
p0080 Amount, Tax O
p0145 Amount, O
Alternate
Transaction Fee
p0146 Amounts, O 28 Amount,
Transaction Fee Transaction Fee
p0148 Currency M ISO Currency
Exponents Exponent from
the FIT file or
Member
Parameter
Extract (MPE)
for each
currency code
used in the
transaction
p0149 Currency O 49 Currency Code,
Codes, 50 Original
Amounts, Transaction
Original Amount
Currency Code,
Original
Reconciliation
Amount

p0157 Alternate O
Processor
Indicator

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
p0158 Business O 110 Additional Data
Activity -2
p0159 Settlement O 110/7 Additional Data
Data -2
p0165 Settlement M C
Indicator
p0170 Card Acceptor O
Inquiry
Information
p0171 Alternate Card O
Acceptor
Description
p0172 Sole Proprietor O
Name
p0173 Legal O
Corporate
Name
p0174 Dun & O
Bradstreet
Number
p0175 Card Acceptor O
URL
p0176 Mastercard O 48/32 Additional Data
Assigned ID
p0177 Cross-border O 126 Switch Private
Data
p0178 Alternate Card O
Acceptor
Description
Data 2
p0179 Long Running O
Transaction
(LRT) Indicator
p0180 Domestic Card O
Acceptor Tax ID
p0181 Installment O
Payment Data

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
p0189 Point-of- O
Interaction
(POI) Phone
Data
p0190 Partner ID O
Code
p0191 Originating O
Message
Format
p0193 Subscriber O
Reference Data
p0194 Remote O
Payment
Program Date
p0195 Installment O
Data
p0196 Mobile Phone O
Reload Data
p0197 National Use O
Tax Data
p0198 Device Type O
p0199 Funding O
Transaction
Information
p0202 PAN Syntax O
Error
p0204 Amount, O
Syntax Error
p0205 Syntax Return, O
Message Error
Indicator
p0207 Wallet Identifier O
p0208 Additional O
Merchant Data
p0209 Independent O
Sales
Organization ID

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
p0210 Transit Program O
p0211 Terminal O
Compliant
Indicator
p0220 Brazil Merchant O
Tax ID
p0225 Syntax Return, O
Original
Message
Reason Code
p0261 Risk O
Management
Approval Code
(Rejected by
Mastercard)
p0375 Member O
Reconciliation
Indicator 1
p0446 Transaction Fee O
Amount,
Syntax Error
p0502 Custom O
Identifier
p0596 Card Acceptor O
Tax ID
p0597 Total Tax O
Amount
p0623 Motor Fuel O
Information
p0629 Odometer O
Reading
p0799 Test Case O
Traceability
Identifiers

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 Collection-Only Transaction Reporting
Mapping 0200 to 1240

Data Element
Data Element M— Guiding Data Element Name—Single
Data Element Name—IPM Mandatory / Comments or No.—Single Message
—IPM 1240 1240 O—Optional Maps to Value Message 0200 System 0200
p10XX Member-to- O
Member
Proprietary
Data (p1000
through p1099)
49 Currency Code, M 49 Currency Code,
Transaction Transaction
50 Currency Code, O 50 Currency Code,
Reconciliation Settlement
51 Currency Code, O 51 Currency Code,
Cardholder Cardholder
Billing Billing
54 Amounts, O 54 Additional
Additional Amounts
55 Integrated O 55 Integrated
Circuit Card Circuit Card
(ICC) System (ICC) System-
Related Data Related Data
62 Additional Data O 62 INF Data
2
63 Transaction Life O 63 Network Data
Cycle ID
71 Message M Per definition in
Number IPM Manual
94 Transaction M 32 Acquiring
Originator Institution
Institution ID Identification
Code Code
123 Additional Data O
3
124 Additional Data O
4
125 Additional Data O
5

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 Bilateral Settlement Activity

Chapter 22 Bilateral Settlement Activity

This section describes what bilateral settlement is and how Global Clearing Management System
will process these transactions.

Definition of Bilateral Settlement Agreement.............................................................................. 428

Identification of Bilateral Settlement Transactions................................................................... 428
Editing Bilateral Transactions....................................................................................................... 428
Global Clearing Management System Calculations for Bilateral Settlement Transactions.............. 429
Bilateral Transactions in Relation to Reconciliation Messages....................................................... 430

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 Bilateral Settlement Activity
Definition of Bilateral Settlement Agreement

Definition of Bilateral Settlement Agreement

A bilateral settlement agreement is an arrangement between two Mastercard customers to
settle transactions directly, rather than through the Mastercard Settlement Account
Management (S.A.M.) system.
If this arrangement is in place, Mastercard clears transaction data between the participating
customers but does not perform settlement on the data.
Customers interested in establishing a bilateral settlement agreement with other customers
should contact their Global Customer Service team.

Identification of Bilateral Settlement Transactions

Customers requesting bilateral settlement for a given transaction must indicate this by
populating PDS 0165 (Settlement Indicator), subfield 1 (Settlement Indicator) with a value of B
to denote bilateral settlement.
This causes the Global Clearing Management System to edit and clear the transactions but
not initiate settlement. Customers may combine bilateral transactions with all other
transactions in the same file.
These customers also may optionally populate PDS 0165, subfield 2 (Settlement Agreement
Information) with additional information related to the bilateral settlement.

Editing Bilateral Transactions

Global Clearing Management System will edit bilateral settlement transactions to ensure that
a bilateral settlement agreement is on file between the sending and receiving customer IDs.
Tables indicating bilateral settlement agreements and customer participation are available in
the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE).
Global Clearing Management System will automatically exclude bilateral settlement
chargeback transactions from the following edits:
• Chargeback timeliness edits
• Cycle appropriateness edits
• Retrieval history edits
• Documentation history edits
Global Clearing Management System does not exclude bilateral settlement transactions from
any other edits. For example, bilateral settlement First Presentment/1240 transactions must
conform to data format and content edits, and to interchange program requirements, the
same as transactions settled by Mastercard.

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 Bilateral Settlement Activity
Global Clearing Management System Calculations for Bilateral Settlement Transactions

Global Clearing Management System Calculations for Bilateral

Settlement Transactions
This section includes information about the bilaterally settled transactions for which Global
Clearing Management System calculates amounts.
Global Clearing Management System does not calculate the following amounts for bilaterally
settled transactions:
• DE 6 (Amount, Cardholder Billing)
• Amounts resulting from Currency Conversion Assessment

DE 5 (Amount, Reconciliation) and DE 50 (Currency Code, Reconciliation)

Global Clearing Management System does calculate DE 5 (Amount, Reconciliation) and
determine DE 50 (Currency Code, Reconciliation) for bilaterally settled transactions. To do this,
Global Clearing Management System obtains the reconciliation currency by performing
settlement service selection. The settlement service selection process for regional and
intracurrency settlement transactions is documented in the Business Service chapter of the
Global Clearing Management System Reference Manual.
Just as customers can specify settlement service selection criteria for regionally settled
transactions (as described in the Business Service chapter of the Global Clearing Management
System Reference Manual), they can also specify settlement service selection criteria for
bilaterally settled transactions. If customers do not specify any settlement service selection
criteria for bilaterally settled transactions, Global Clearing Management System will use the
reconciliation currency associated with the customer’s default regional settlement agreement.
Global Clearing Management System then performs any necessary currency conversion to
convert DE 4 (Amount, Transaction) to the customer’s reconciliation currency. To do this,
Global Clearing Management System uses market buy and sell rates or a fixed rate if one
exists. The currency conversion process for bilaterally settled transactions is similar to that
described for regionally settled transactions in the Reconciliation chapter of the Global
Clearing Management System Reference Manual.

Interchange Fees
Global Clearing Management System offers several options related to interchange fees for
bilaterally settled transactions:
• If the Business Service assigned to a bilaterally settled transaction indicates that Global
Clearing Management System should calculate interchange fees, Global Clearing
Management System will calculate the interchange fees, convert them to the receiving
customer’s reconciliation currency, and populate PDS 0146 (Amounts, Transaction Fees),
subfield 4 (Currency Code, Fee), subfield 5 (Amount, Fee), subfield 6 (Currency Code, Fee,
Reconciliation), and subfield 7 (Amount, Fee, Reconciliation) PDS 0147 (Extended Precision
Amounts), subfield 4 (Currency Code, Fee), subfield 5 (Amount, Fee), subfield 6 (Currency
Code, Fee, Reconciliation), and subfield 7 (Amount, Fee, Reconciliation) with the correct

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 Bilateral Settlement Activity
Bilateral Transactions in Relation to Reconciliation Messages

interchange fees and associated currency codes before forwarding the message to the
receiver.
• If the Business Service assigned to a bilaterally settled transaction indicates that Global
Clearing Management System should not calculate interchange fees, the sending customer
may optionally populate PDS 0146, subfields 4 and 5 with the relevant interchange fees.
Global Clearing Management System will forward PDS 0146, subfields 4 and 5 to the
receiving customer without altering the data. In addition, Global Clearing Management
System will convert the fees that were provided in PDS 0146, subfields 4 and 5 to the
receiving customer’s reconciliation currency and place this amount and currency into PDS
0146, subfields 6 and 7 before forwarding the message to the receiver.
• If the Business Service assigned to a bilaterally settled transaction indicates that Global
Clearing Management System should not calculate interchange fees, and the sending
customer does not provide fees in PDS 0146, Global Clearing Management System will
process the transaction with no interchange fees. PDS 0146 will not be present in the
message sent to the receiver.

Bilateral Transactions in Relation to Reconciliation Messages

IPM Financial Position Detail Reconciliation messages provide amount and fee totals in each
customer’s reconciliation currency. These totals are also optionally available in transaction
currency.
Because Mastercard does not settle bilateral settlement transactions, IPM Financial Position
Detail Reconciliation message totals for these transactions in the customer’s reconciliation
currency will contain zeros. If the customer has requested the transaction currency option for
Reconciliation messages, IPM Financial Position Detail Reconciliation message totals for these
transactions in the transaction currency will be present and will contain the correct (non-zero)
amounts.
Customers that want to receive reconciliation totals for bilateral settlement activity should
request both the transaction currency option and the settlement indicator option for IPM
Financial Position Detail Reconciliation messages to differentiate amount totals for these
transactions.
Customers may select category options using the Global Clearing Management System
Parameter Worksheet (Form 600).

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 Electronic and Mobile Commerce

Chapter 23 Electronic and Mobile Commerce

This chapter describes how Global Clearing Management System performs transaction processing
for applicable electronic and mobile commerce services.

Electronic Commerce.................................................................................................................. 432

Process for an Electronic Commerce Transaction..................................................................... 432
Security of Electronic Commerce Transactions.........................................................................433
Universal Cardholder Authentication Field.............................................................................. 433
Relationship between e-Commerce and Mastercard SecureCode/Identity Check..................... 434
UCAF in Digital Secure Remote Payments............................................................................... 434
Mastercard Mobile Remote Payment Program Overview..............................................................435
DE 22 (Point of Service Data Code), Subfield 1 (Terminal Data: Card Data Input Capability).....436
DE 22 (Point of Service Data Code), Subfield 7 (Card Data: Input Mode)................................. 436
PDS 0194 (Remote Payments Program Data).......................................................................... 436

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 Electronic and Mobile Commerce
Electronic Commerce

Electronic Commerce
Electronic commerce (e-commerce) transactions are non–face-to-face, online transactions that
use electronic media over any public network such as the Internet, or private network such as
an extranet. E-commerce processing allows transactions to be initiated from a cardholder-
controlled device, such as a PC or mobile phone, for purchasing goods and services on the
Internet.

Customer Requirements
To process e-commerce transactions:
• All issuers must be able to receive and process all e-commerce data present in the
Authorization Request/0100 messages.
• All acquirers must properly identify e-commerce messages within the Authorization
Request/0100 message. They must be able to receive and to process e-commerce
Authorization Request Response/0110 messages.
For detailed transaction flows and requirements associated with participation in the
Mastercard® SecureCode/Identity Check program, refer to the SecureCode Member
Enrollment and Implementation Guide and Mastercard Identity Check Program Guide. For
details about data requirements and transaction processing specifications, refer to the
Customer Interface Specification manual.

Process for an Electronic Commerce Transaction

The process by which an e-commerce transactions undergoes is described here.
The following diagram illustrates the flow of a typical e-commerce transaction.

1. The cardholder accesses a merchant’s Web site through the Internet and requests to make
a purchase.
2. The merchant submits the cardholder’s information to the acquirer.
3. The acquirer sends an Authorization Request/0100 message through the Mastercard
Network to the issuer.
4. The issuer makes the authorization decision and replies using an Authorization Request
Response/0110 message.
5. The acquirer responds to the merchant.
6. The merchant completes the transaction according to the authorization response returned.

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 Electronic and Mobile Commerce
Security of Electronic Commerce Transactions

Security of Electronic Commerce Transactions

There are various methods for securing e-commerce transactions that customers may process
through the Mastercard Network.
Mastercard messaging requirements regarding e-commerce may vary depending on the
security protocol involved in the transactions. Security protocols may include:
• No security protocol
• Channel encryption, which is a security layer that resides between an application and its
transport layers, for example, SSL (Secure Sockets Layer) and HTTPS (Hypertext Transfer
Protocol Secure)
• SecureCode/Identity Check transaction using the Universal Cardholder Authentication Field
(UCAF™)
If an e-commerce item that ships late is re-authorized for message reason code 4808
(Authorization-Related Chargeback) chargeback protection, this transaction will take on the
security characteristics of the original authorization within a dispute resolution.

NOTE: Without UCAF data present, a re-authorized transaction must be presented within
clearing for non-UCAF interchange (as applicable by region).

For more information about SecureCode/Identity Check, including detailed transaction flows
and participation requirements, refer to the SecureCode Issuer Implementation Guide,
SecureCode Merchant Implementation Guide, SecureCode Acquirer Implementation Guide, or
Mastercard Identity Check Program Guide.

Universal Cardholder Authentication Field

The Universal Cardholder Authentication Field (UCAF™) is a standard, globally interoperable
method of collecting cardholder authentication data at the point of interaction.
Within the Mastercard authorization networks, UCAF™ is a universal, multipurpose data
transport infrastructure that is used to communicate authentication information between
cardholders, merchants, issuers, and acquirers.

Accountholder Authentication Value

The Accountholder Authentication Value (AAV) is a SecureCode-specific implementation of
UCAF™ related to issuer authentication platforms that incorporate the Secure Payment
Application (SPA) algorithm. SPA is a Mastercard security method designed to authenticate
cardholders when they pay online. All AAVs must be generated using the Mastercard SPA
algorithm. With the EMV® 3-D Secure protocol and the Mastercard Identity Check program,
Mastercard has created a new SPA algorithm called SPA2. For more information about this
new algorithm, refer to the SPA2 AAV for the Mastercard Identity Check Program manual on
Mastercard Connect™.
AAV can be generated by the issuer or Mastercard and the presented to the merchant for
placement in the authorization request upon successful authentication of the cardholder or
attempted authentication of the cardholder. AAV is generated by the issuer and presented to

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 Electronic and Mobile Commerce
Relationship between e-Commerce and Mastercard SecureCode/Identity Check

the merchant for placement in the authorization request upon successful authentication of
the cardholder.
UCAF is used to transmit the AAV from the merchant to the issuer for authentication purposes
during the authorization process.
Customers must perform AAV validation during the Authorization Request/0100 messages,
either through their own self-validation process or through the Mastercard SecureCode AAV
Verification service.
All customers must participate in Mastercard SecureCode Dynamic AAV Verification in Stand-
In Processing.
To implement the Mastercard SecureCode AAV Verification service, complete the Key
Validation Service Specification Form (Form 735).

NOTE: All issuers globally that participate in Stand-In processing must have SecureCode
Dynamic AAV verification in Stand-In performed during Stand-In processing.
Effective on or before 1 April 2017 based on region specific effective dates per Global
Operations Bulletin No. 4, 1 April 2016, Revised Standards for Validation Services During
Stand-In Processing, all issuers globally that participate in Stand-In processing must have
Dynamic CVC 3 Validation in Stand-In performed during Stand-In processing.

Relationship between e-Commerce and Mastercard SecureCode/Identity Check

Mastercard SecureCode/Identity Check builds upon the infrastructure requirements for
channel encryption with the additional benefit of cardholder authentication.
When used in conjunction with components of the Mastercard payment infrastructure,
Mastercard SecureCode/Identity Check provides a mechanism for online merchants to
potentially receive an enhanced payment guarantee similar to what retailers (non-Internet)
receive with qualifying physical point-of-sale transactions.
Mastercard requires authorization requests for Mastercard Electronic™ Cards acquired in e-
commerce environments to be fully authenticated through Mastercard SecureCode/Identity
Check. Mastercard Electronic issuers that want to process e-commerce transactions must
participate in Mastercard SecureCode/Identity Check and provide Universal Cardholder
Authentication Field™ (UCAF) data for e-commerce transactions for a Mastercard Electronic
Card. Mastercard electronic acquirers and merchants that want to process e-commerce
transactions must participate in Mastercard SecureCode/Identity Check and be UCAF-enabled.

UCAF in Digital Secure Remote Payments

The UCAF field is also used to support Digital Secure Remote Payments (DSRP) submitted as
electronic commerce transactions that are initiated with MDES tokens.
In this case, the UCAF field contains an encoded list of data constructed according to UCAF
format. Refer to the Digital Remote Secure Payments—UCAF Formats manual for information
on the UCAF formats supported by Mastercard.

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 Electronic and Mobile Commerce
Mastercard Mobile Remote Payment Program Overview

Mastercard Mobile Remote Payment Program Overview

The Mastercard Mobile Remote Payment (MMRP) Program enables highly secure remote
payments and additional payment options from mobile devices, particularly in high-growth
markets where mobile phone-based payment and banking services are increasing most rapidly.
Because of the additional security introduced through secure cardholder authentication, the
transactions generated from mobile devices are eligible for chargeback protection for
merchants.
The MMRP Program supports the security of transactions by establishing cardholder
credentials on three levels:
• Highly secure transmission of transaction details between the mobile device application
and the Service Manager.
• Authentication of the cardholder to access the payment credentials stored on the Service
Manager by means of a mobile PIN (m-PIN) or Service Authentication.
• Verification of the cardholder against the funding account held at the issuer by means of a
transaction authorization token.
The MMRP program supports two types of transaction authentication:
• Use of a card PIN (c-PIN), an online PIN, that is verified by the issuer during transaction
authentication. When the c-PIN is used for transaction authentication, the transaction
authentication token is the encrypted c-PIN.
• Use of a mobile-specific authentication method, such as a passcode, that is verified by the
Service Manager. When the m-PIN is used for transaction authentication, the Service
Manager will generate an Accountholder Authentication Value (AAV) to indicate that the
cardholder has authenticated the transaction. This AAV will be verified by the issuer during
transaction authorization. When the m-PIN is used for transaction authentication, the
transaction authentication token is the AAV.
Cardholders that choose to participate in the MMRP Program can perform various secure
mobile transactions, including:
• Purchases such as General Purchase and Bill Payment transactions
• Balance Inquiries
For more details about the program, refer to Mobile Remote Payment Program Guide.

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 Electronic and Mobile Commerce
DE 22 (Point of Service Data Code), Subfield 1 (Terminal Data: Card Data Input Capability)

DE 22 (Point of Service Data Code), Subfield 1 (Terminal Data: Card Data Input
Capability)
The description for DE 22 (Point of Service Data Code), subfield 1 (Terminal Data: Card Data
Input Capability), value 1 reads Manual; no terminal; server. This definition indicates the ability
to capture the PAN entry through server.

DE 22 (Point of Service Data Code), Subfield 7 (Card Data: Input Mode)

Value T for DE 22 (Point of Service Data Code), subfield 7 (Card Data: Input Mode) identifies
the PAN entry mode through server for the Mastercard Mobile Remote Payment (MMRP)
Program.

PDS 0194 (Remote Payments Program Data)

PDS 0194 (Remote Payments Program Data) is used to identify the domain in which the
Service Manager of the Mastercard Mobile Remote Payment (MMRP) Program is operating.

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 Merchant Data Cleansing Suite of Services

Chapter 24 Merchant Data Cleansing Suite of Services

Cleansed merchant data can be provided to cardholders to improve their statements and reduce
calls to customer service centers. The value-added merchant information can be used by issuers to
perform spend, marketing, rewards, and other analyses.

About the Merchant Data Cleansing Suite of Services................................................................. 438

Mastercard Merchant Data Cleansing..................................................................................... 438
Mastercard Merchant Data Cleansing Plus.............................................................................. 438
Mastercard Merchant Data Advance.......................................................................................439
Mastercard Merchant Data Fields............................................................................................439
Enrichment of First and Second Presentment/1240 Messages for the Merchant Data Cleansing
Suite of Services..........................................................................................................................440
Attributes and Subfields of Private Data Subelements of the Merchant Data Cleansing Suite of
Services.......................................................................................................................................443

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 Merchant Data Cleansing Suite of Services
About the Merchant Data Cleansing Suite of Services

About the Merchant Data Cleansing Suite of Services

The Merchant Data Cleansing Suite of services help to solve the merchant identification
problem faced by card issuers.
Cryptic merchant names and the lack of standardization result in disputed transactions and
less-than-definitive data about spending patterns. Mastercard can help solve this problem by
disseminating cleansed and additional value-added data in the clearing record. This allows
cardholders to see more familiar, less ambiguous names on their statements. Issuers can take
advantage of additional merchant information to deepen their analytic capabilities and
uncover new insight about their customers.
Mastercard offers three service levels within the Merchant Data Cleansing Suite of services:
• Mastercard Merchant Data Cleansing
• Mastercard Merchant Data Cleansing Plus
• Mastercard Merchant Data Advance

Mastercard Merchant Data Cleansing

Mastercard Merchant Data Cleansing overwrites the acquirer-furnished merchant names in the
issuer-provided data with consumer-familiar versions of merchant names and also can
populate missing or incorrect information including the business address and phone.
Placing recognizable names directly in the data allows the issuer to pass more definitive
information to cardholders on their statements. This also means that the issuer can take
advantage of the service without modifying their processes.
Issuers participating in the Mastercard Merchant Data Cleansing Service receive cleansed
merchant data in the following data fields on First and Second Presentment/1240 messages:
• DE 43 (Card Acceptor Name/Location), subfield 1 (Card Acceptor Name)
• DE 43, subfield 2 (Card Acceptor Street Address)
• DE 43, subfield 3 (Card Acceptor City)
• DE 43, subfield 4 (Card Acceptor Postal [ZIP] Code)
• DE 43, subfield 5 (Card Acceptor State, Province, or Region Code)
• DE 43, subfield 6 (Card Acceptor Country Code)
• PDS 0170 (Card Acceptor Inquiry Information), subfield 2 (Card Acceptor Phone Number)

Mastercard Merchant Data Cleansing Plus

Mastercard Merchant Data Cleansing Plus appends additional data fields to the data including
the merchant's legal name, sales channel (brick and mortar, online, other), and the merchant
URL, where available.
Issuers participating in this service also receive the data fields for Mastercard Merchant Data
Cleansing. This extra information can be used to assist the cardholder in identifying the
merchant, potentially avoiding additional dispute cases.

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 Merchant Data Cleansing Suite of Services
Mastercard Merchant Data Advance

Issuers participating in the Mastercard Merchant Data Cleansing Plus service receive cleansed
merchant data in the following data fields on First and Second Presentment/1240 messages:
• DE 43 (Card Acceptor Name/Location), subfield 1 (Card Acceptor Name)
• DE 43, subfield 2 (Card Acceptor Street Address)
• DE 43, subfield 3 (Card Acceptor City)
• DE 43, subfield 4 (Card Acceptor Postal [ZIP] Code)
• DE 43, subfield 5 (Card Acceptor State, Province, or Region Code)
• DE 43, subfield 6 (Card Acceptor Country Code)
• PDS 0170 (Card Acceptor Inquiry Information), subfield 2 (Card Acceptor Phone Number)

Mastercard Merchant Data Advance

Mastercard Merchant Data Advance broadens the issuer’s analytic capabilities by adding
industry codes and other merchant identifiers to each transaction.
The ability to accurately identify merchant locations and to understand the specific brands or
chains to which they belong is crucial to helping the issuer develop customer loyalty programs,
merchant incentive agreements, and fraud scoring mechanisms.

Mastercard Merchant Data Fields

Issuers participating in one or a combination of the Merchant Data Cleansing Suite of Services
receive various data fields based on the service or services registered.

Merchant Data Merchant Data Merchant Data

Cleansing Cleansing Plus Advance
Cleansed Merchant Name √ √
Cleansed Merchant Street Address √ √
Cleansed City Name √ √
Cleansed State Province Code √ √
Cleansed Merchant Postal Code √ √
Cleansed Country Code √ √
Cleansed Merchant Telephone Number √ √
Cleansed Legal Corporate Name √
Sales Channel—% Brick √
Sales Channel—% Online √
Sales Channel—% Other √
Cleansed Merchant URL (when available) √
Aggregate Merchant ID √
Aggregate Merchant Name √

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 Merchant Data Cleansing Suite of Services
Enrichment of First and Second Presentment/1240 Messages for the Merchant Data Cleansing Suite of
Services

Merchant Data Merchant Data Merchant Data

Cleansing Cleansing Plus Advance
Industry Code √
Super Industry Code √
Key Aggregate Merchant ID √
Channel of Distribution Code √
NAICS Code √
Parent Aggregate Merchant ID √

Enrichment of First and Second Presentment/1240 Messages for the

Merchant Data Cleansing Suite of Services
Each Merchant Data service offered by Mastercard involves a variety of cleansed merchant
data in various fields on First and Second Presentment/1240 messages.
For First and Second Presentment/1240 messages to be enriched with the required data for
each service, the following conditions must be met:
• Issuer must register its account ranges
• Transaction must be cleared through Global Clearing Management System
• DE 3 (Processing Code), subfield 1 (Cardholder Transaction Type) must have one of the
following values:
– 00 (Purchase [Goods and Services])
– 18 (Unique Transaction)
– 20 (Credit [Purchase Return])
• Merchant Cleansing participation switch indicator on IPM MPE table IP0040T1 is present
with a valid service level indicator value
• Clearing processing date must be after the service-level activation date as provided on
IP0040T1 (Issuer Account Range).
Mastercard populates the following data fields in First and Second Presentment/1240
messages when an issuer is participating in any of the Merchant Data Cleansing Suite of
services. Issuers participating in any of the Merchant Data Cleansing Suite of services may
optionally support PDS 0212 (Merchant Data Services), subfield 1 (Service Level Indicator) and
subfield 2 (Response Code).
• PDS 0212, subfield 1—this value represents the services for which the issuer has registered.
• PDS 0212, subfield 2—this value represents the action taken, if any, by Mastercard for the
service level indicated in PDS 0212, subfield 1

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 Merchant Data Cleansing Suite of Services
Enrichment of First and Second Presentment/1240 Messages for the Merchant Data Cleansing Suite of
Services

Mastercard Merchant Data Cleansing Service

Issuers participating in the Mastercard Merchant Data Cleansing Service receive cleansed
merchant data in the following data fields on First and Second Presentment/1240 messages:
• DE 43 (Card Acceptor Name/Location), subfield 1 (Card Acceptor Name)
• DE 43, subfield 2 (Card Acceptor Street Address)
• DE 43, subfield 3 (Card Acceptor City)
• DE 43, subfield 4 (Card Acceptor Postal [ZIP] Code)
• DE 43, subfield 5 (Card Acceptor State, Province, or Region Code)
• DE 43, subfield 6 (Card Acceptor Country Code)
• PDS 0170 (Card Acceptor Inquiry Information), subfield 2 (Card Acceptor Phone Number)
Mastercard copies the acquirer-submitted merchant data from DE 43, subfields 1–6 and PDS
0170, subfield 2 to the following data fields. Issuers optionally may support PDS 0213
(Original Merchant Data), subfields 1–7.
• PDS 0213, subfield 1 (Card Acceptor Name)
• PDS 0213, subfield 2 (Card Acceptor Street Address)
• PDS 0213, subfield 3 (Card Acceptor City)
• PDS 0213, subfield 4 (Card Acceptor Postal [ZIP] Code)
• PDS 0213, subfield 5 (Card Acceptor State, Province or Region Code)
• PDS 0213, subfield 6 (Card Acceptor Country Code)
• PDS 0213, subfield 7 (Card Acceptor Phone Number)

Mastercard Merchant Data Cleansing Plus Service

Issuers participating in the Mastercard Merchant Data Cleansing Plus Service receive cleansed
merchant data in the following data fields on First and Second Presentment/1240 messages:
• DE 43 (Card Acceptor Name/Location), subfield 1 (Card Acceptor Name)
• DE 43, subfield 2 (Card Acceptor Street Address)
• DE 43, subfield 3 (Card Acceptor City)
• DE 43, subfield 4 (Card Acceptor Postal [ZIP] Code)
• DE 43, subfield 5 (Card Acceptor State, Province, or Region Code)
• DE 43, subfield 6 (Card Acceptor Country Code)
• PDS 0170 (Card Acceptor Inquiry Information), subfield 2 (Card Acceptor Phone Number)
Mastercard will copy the acquirer-submitted merchant data from DE 43, subfields 1–6 and
PDS 0170, subfield 2 to the following data fields. Issuers may optionally support PDS 0213
(Original Merchant Data), subfields 1–7:
• PDS 0213, subfield 1 (Card Acceptor Name)
• PDS 0213, subfield 2 (Card Acceptor Street Address)
• PDS 0213, subfield 3 (Card Acceptor City)
• PDS 0213, subfield 4 (Card Acceptor Postal [ZIP] Code)
• PDS 0213, subfield 5 (Card Acceptor State, Province or Region Code)

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 Merchant Data Cleansing Suite of Services
Enrichment of First and Second Presentment/1240 Messages for the Merchant Data Cleansing Suite of
Services

• PDS 0213, subfield 6 (Card Acceptor Country Code)

• PDS 0213, subfield 7 (Card Acceptor Phone Number)
In addition, participating issuers receive additional data in PDS 0214 (Merchant Data Cleansing
Plus) on First and Second Presentment/1240 messages in the following data fields.
• PDS 0214, subfield 1 (Cleansed Legal Corporate Name)
• PDS 0214, subfield 2 (Sales Channel—Percentage Brick)
• PDS 0214, subfield 3 (Sales Channel—Percentage Online)
• PDS 0214, subfield 4 (Sales Channel—Percentage Other)
• PDS 0214, subfield 5 (Cleansed Merchant URL, where available)

NOTE: Issuers participating in Mastercard Cleansed Merchant Data or Mastercard Cleansed

Merchant Data Plus:

First and Second Presentment/1240 messages are not enriched with cleansed merchant data if
the country code, as submitted by the acquirer in DE 43, subfield 6 is different than the
cleansed merchant data country code maintained by Mastercard. However, if participating in
Mastercard Merchant Data Cleansing Plus, the following additional data fields are provided in
First and Second Presentment/1240 messages:
• PDS 0214 (Merchant Data Cleansing Plus), subfield 1 (Cleansed Legal Corporate Name)
• PDS 0214, subfield 2 (Sales Channel—Percentage Brick)
• PDS 0214, subfield 3 (Sales Channel—Percentage Online)
• PDS 0214, subfield 4 (Sales Channel—Percentage Other)
• PDS 0214, subfield 5 (Cleansed Merchant URL)

Mastercard Merchant Data Cleansing Advance Service

Issuers participating in the Mastercard Merchant Data Cleansing Advance Service receive data
in PDS 0215 (Mastercard Merchant Data Advance) on First and Second Presentment/1240
messages in the following data fields.
• PDS 0215, subfield 1 (Aggregate Merchant ID)
• PDS 0215, subfield 2 (Aggregate Merchant Name)
• PDS 0215, subfield 3 (Industry Code)
• PDS 0215, subfield 4 (Super Industry Code)
• PDS 0215, subfield 5 (Key Aggregate Merchant ID)
• PDS 0215, subfield 6 (Channel Distribution ID)
• PDS 0215, subfield 7 (NAICS Code)
• PDS 0215, subfield 8 (Parent Aggregate Merchant ID)

NOTE: For First Chargeback and Arbitration Chargeback/1442 messages, the issuer is not
required to retain and return the PDS 0212, PDS 0213, PDS 0214, or PDS 0215 data.

Issuers must return the same data values in DE 43 and PDS 0170, subfield 2 as was received in
the associated First and Second Presentment/1240 messages.

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 Merchant Data Cleansing Suite of Services
Attributes and Subfields of Private Data Subelements of the Merchant Data Cleansing Suite of Services

Viewing Data Fields of Merchant Data Services in the Transaction Research Tool
Issuers participating in any of the Mastercard Merchant Data services may view all of the
applicable data fields in the Transaction Investigator Tool.

Attributes and Subfields of Private Data Subelements of the Merchant

Data Cleansing Suite of Services
The Merchant Data Cleansing Suite of services use multiple private data subelements, of
which each has unique attributes and subfields.
For details about the attributes and subfields of the following private data subelements used
by the Merchant Data Cleansing Suite of services, refer to the IPM Clearing Formats manual:
• PDS 0212—Merchant Data Services
• PDS 0213—Original Merchant Data
• PDS 0214—Merchant Data Cleansing Plus
• PDS 0215—Mastercard Merchant Data Advance

© 1974–2019 Mastercard. Proprietary. All rights reserved.

Global Clearing Management System Reference Manual • 15 October 2019 443
 Acquirer Interchange Reporting

Chapter 25 Acquirer Interchange Reporting

The Global Clearing Management System report can be used in the acquirer interchange process.

Interchange Detail Report (IP755020-AA)....................................................................................445

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Interchange Detail Report (IP755020-AA)

The Interchange Detail Report (IP755020-AA) is offered to acquirers in the Europe region and
South Africa to comply with regulatory requirements by providing details regarding their fees,
including the interchange amounts applied per transaction. Customers can sign up for this
report.
The report (in the form of a raw data file) provides acquirers automated access to the
following detailed information per transaction after each clearing cycle.
• PAN
• Transaction and interchange amounts
• Interchange details including the interchange amount actually applied by Global Clearing
Management System
• Merchant details
• Transaction identifiers to allow easy reconciliation with the acquirer’s internal data
• PDS 0159—Settlement Data (Acquirer Settlement Data)
Per transaction, the report will contain the following Detail Record. For the corresponding
data element and private data subelement, refer to the IPM Clearing Formats manual.
Detail Record

Starting
Field Name DE PDS Subfield Length Position
D (Detail static value 1 1
Record)
Acquirer ICA 11 2
Message Type MTI 4 13
Indicator
PAN 2 19 17
Processing 3 1, 2, 3 6 36
Code (includes
all subfields)
Amount, 4 12 42
Transaction
Reconciliation 5 12 54
Amount
Date and Time, 12 12 66
Local
Transaction

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Starting
Field Name DE PDS Subfield Length Position
Point of Service 22 1–12 12 78
Data Code
Function Code 24 3 90
Message 25 4 93
Reason Code
Card Acceptor 26 4 97
Business Code
Acquirer 31 23 101
Reference Data
Approval Code 38 6 124
Service Code 40 3 130
Card Acceptor 41 8 133
Terminal ID
Card Acceptor 42 15 141
ID Code
Card Acceptor 43 1, 2, 3 83 156
Name and
Location
Card Acceptor 43 4 10 239
Post Code
Global Clearing 2 3 249
Management
System Product
Identifier
Licensed 3 3 252
Product
Identifier
Terminal Type 23 3 255
Message 25 1 1 258
Reversal
Indicator
Electronic 52 1,2,3 3 259
Commerce
Security Level
Indicator
File ID—File 105 2 6 262
Reference Date

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Starting
Field Name DE PDS Subfield Length Position
Fee Type Code 146 1 2 268
Fee Processing 146 2 2 270
Code
Fee Settlement 146 3 2 272
Indicator
Currency Code 146 4 3 274
Amounts, 146 5 12 277
Transaction Fee
Currency Code 146 6 3 289
Fee
Reconciliation
Amount Fee 146 7 12 292
Reconciliation
Extended—Fee 147 1 2 304
Type Code
Extended—Fee 147 2 2 306
Processing
Code
Extended—Fee 147 3 2 308
Settlement
indicator
Extended— 147 4 3 310
Currency Code,
Fee
Extended— 147 5 18 313
Interchange
Amount, Fee
Extended— 147 6 3 331
Currency Code,
Fee, Recon.
Extended— 147 7 18 334
Interchange
Amount, Fee,
Recon.
Currency 148 1, 2 4 352
Exponents
Card Program 158 1 3 356
Identifier

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Starting
Field Name DE PDS Subfield Length Position
Business Service 158 2 1 359
Arrangement
Type Code
Business Service 158 3 6 360
ID Code
Interchange 158 4 2 366
Rate Designator
Central Site 158 5 6 368
Business Date
Business Cycle 158 6 2 374
Card Acceptor 158 7 1 376
Classification
Override Ind.
Product Class 158 8 3 377
Override
Indicator
Corporate 158 9 1 380
Incentive Rates
Apply Indicator
Special 158 10 1 381
Conditions
Indicator
Mastercard 158 11 1 382
Assigned ID
Override
Indicator
ALM Account 158 12 1 383
Category Code
Rate Indicator 158 13 1 384
MasterPass 158 14 1 385
Incentive
Indicator
Settlement 159 1 11 386
Service Transfer
Agent ID
Settlement 159 2 28 397
Service Transfer
Agent Account

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Starting
Field Name DE PDS Subfield Length Position
Settlement 159 3 1 425
Service Level
Code
Settlement 159 4 10 426
Service ID Code
Settlement 159 5 1 436
Foreign
Exchange Rate
Class Code
Reconciliation 159 6 6 437
Date
Reconciliation 159 7 2 443
Cycle
Settlement 159 8 6 445
Date
Settlement 159 9 2 451
Cycle
Transaction 49 3 453
Currency Code
Reconciliation 50 3 456
Currency Code
Additional 54 20 459
Amount
Trace ID 63 2 15 479

The report uses fixed field lengths in fixed positions.

The report also includes a header and trailer record (with the total number of records for detail
records only). These records include the Global Clearing Management System Report ID,
which will be IP755020-AA.
Header Record

Field ID Length Comments

1 an-17 Value ‘HIP755020-AA’
2 an-11 ICA
3 an-07 Endpoint

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

Trailer Record

Field ID Length Comments

1 an-17 Value of ‘TIP755020-AA’
2 an-11 ICA
3 an-07 Endpoint
4 n-12 Total of detail records only

A report with n transactions will look as follows:

• Header Record
• Detail Record 1
• Detail Record 2
• …
• Detail Record n
• Trailer Record
One report will be sent at the end of each clearing cycle for all activity in that clearing cycle. If
no activity has occurred in a clearing cycle, then an empty report will be sent with just a
Header and a Trailer record.
The report will include the following transaction types:
• Purchase transactions
• Refunds/Reversals
• Cash withdrawals
• Cash disbursement
• Purchase with cash back
• Payment transactions
• Unique transactions

NOTE: The Interchange Detail Report will not include Collection-Only messages.

It will be sent to acquirers through Global File Transfer using Bulk File TN70. Acquirers can use
bulk file TN72 for testing.
Acquirers will be able to choose between 2 versions:
• Version 1—Acquirer only activity
– 1st Presentments and reversals
– 2nd Presentments and reversals
• Version 2—Acquirer and Issuer activity
– 1st Presentments and reversals
– 2nd Presentments and reversals

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 Acquirer Interchange Reporting
Interchange Detail Report (IP755020-AA)

– 1st Chargebacks and reversals

– 2nd Chargebacks and reversals

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Global Clearing Management System Reference Manual • 15 October 2019 451
 Acquirer Clearing Detail Reporting

Chapter 26 Acquirer Clearing Detail Reporting

The Global Clearing Management System report can be used in the acquirer clearing process.

Clearing Detail Report (IP755120-AA)......................................................................................... 453

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Clearing Detail Report (IP755120-AA)

The Clearing Detail Report (IP755120-AA) is offered to acquirers to facilitate acquirer
reconciliation. Customers can sign up for this report delivered through bulk file TN70
(Production) and TN72 (Test).
The report will be generated and sent after each clearing cycle, including cycle seven,
regardless of the cycles in which acquirers have chosen to participate.
The report (in the form of a raw data file) provides acquirers transaction-level details from
Global Clearing Management System including the currency conversion rate from the
transaction amount to the acquirer reconciliation amount in DE 9 (Conversion Rate,
Reconciliation).
Per transaction, the report will contain the following Detail Record. For the corresponding
data element and private data subelement, refer to the IPM Clearing Formats manual.
The report also includes header, detail, and trailer records (with the total number of records
for detail records only). These records include the Global Clearing Management System Report
ID, which will be IP755120-AA.
Header Record

Field ID Length Comments

1 ans-17 Value ‘HIP755120-AA’
2 n-11 ICA
3 n-07 Endpoint
4 ans-628 Filler of spaces

Detail Record

Field Name DE PDS Subfield Length

D (Detail Record) static value 1
Distribution ICA 11
Message Type MTI 4
Indicator
Primary Account 2 19
Number (PAN)
Processing Code 3 1, 2, 3 6
(includes all
subfields)

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Field Name DE PDS Subfield Length

Amount, 4 12
Transaction
Reconciliation 5 12
Amount
Reconciliation 9 8
Conversion Rate
Date and Time, 12 12
Local Transaction
Point of Service 22 1–12 12
Data Code
Function Code 24 3
Message Reason 25 4
Code
Card Acceptor 26 4
Business Code
Original Amount, 30 1 12
Transaction
Acquirer Reference 31 23
Data
Approval Code 38 6
Service Code 40 3
Card Acceptor 41 8
Terminal ID
Card Acceptor ID 42 15
Code
Card Acceptor 43 1, 2, 3 83
Name and location
Card Acceptor Post 43 4 10
Code
Card Acceptor 43 5 3
State, Province, or
Region Code
Card Acceptor 43 6 3
Country Code
Global Clearing 0002 3
Management
System Product
Identifier

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Field Name DE PDS Subfield Length

Licensed Product 0003 3
Identifier
Terminal Type 0023 3
Message Reversal 0025 1 1
Indicator
Electronic 0052 1,2,3 3
Commerce Security
Level Indicator
File ID 0105 1, 2, 3, 4 25
Fee Type Code 0146 1 2
Fee Processing 0146 2 2
Code
Fee Settlement 0146 3 2
Indicator
Currency Code 0146 4 3
Amounts, 0146 5 12
Transaction Fee
Currency Code Fee 0146 6 3
Reconciliation
Amount Fee 0146 7 12
Reconciliation
Extended—Fee 0147 1 2
Type Code
Extended—Fee 0147 2 2
Processing Code
Extended—Fee 0147 3 2
Settlement
Indicator
Extended— 0147 4 3
Currency Code,
Fee
Extended— 0147 5 18
Interchange
Amount, Fee
Extended— 0147 6 3
Currency Code,
Fee, Recon.

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Field Name DE PDS Subfield Length

Extended— 0147 7 18
Interchange
Amount, Fee,
Recon.
Currency 0148 1, 2 4
Exponents
Currency Code, 0149 1 3
Original
Transaction
Amount
Card Program 0158 1 3
Identifier
Business Service 0158 2 1
Arrangement Type
Code
Business Service ID 0158 3 6
Code
Interchange Rate 0158 4 2
Designator
Central Site 0158 5 6
Business Date
Business Cycle 0158 6 2
Card Acceptor 0158 7 1
Classification
Override Ind.
Product Class 0158 8 3
Override Indicator
Corporate 0158 9 1
Incentive Rates
Apply Indicator
Special Conditions 0158 10 1
Indicator
Mastercard 0158 11 1
Assigned ID
Override Indicator
ALM Account 0158 12 1
Category Code
Rate Indicator 0158 13 1

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Field Name DE PDS Subfield Length

MasterPass 0158 14 1
Incentive Indicator
Settlement Service 0159 1 11
Transfer Agent ID
Settlement Service 0159 2 28
Transfer Agent
Account
Settlement Service 0159 3 1
Level Code
Settlement Service 0159 4 10
ID Code
Settlement Foreign 0159 5 1
Exchange Rate
Class Code
Reconciliation Date 0159 6 6
Reconciliation 0159 7 2
Cycle
Settlement Date 159 8 6
Settlement Cycle 0159 9 2
Transaction 49 3
Currency Code
Reconciliation 50 3
Currency Code
Additional Amount 54 20
Trace ID 63 2 15
Transaction 93 11
Destination
Institution ID Code
Transaction 94 11
Originator
Institution ID Code
Date Record 72 100

Trailer Record

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 Acquirer Clearing Detail Reporting
Clearing Detail Report (IP755120-AA)

Field ID Length Comments

1 ans-17 Value of ‘TIP755120-AA’
2 n-11 ICA
3 n-07 Endpoint
4 n-12 Total of detail records only
5 ans-616 Filler of spaces

Mastercard sends the Clearing Detail File at the end of each clearing cycle for all activity in
that clearing cycle.

NOTE: If the Clearing Detail File Record does not contain data for the customer, then the
customer receives only the header and trailer for the Clearing detail file.

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Global Clearing Management System Reference Manual • 15 October 2019 458
 Acquirer Currency Conversion Rate File Format

Chapter 27 Acquirer Currency Conversion Rate File Format

This section details the rate file format for the Acquirer Currency Conversion Rate File.

Acquirer Currency Conversion Rate File Format........................................................................... 460

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 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Acquirer Currency Conversion Rate File Format

The file header, detail, and trailer records for the Acquirer Currency Conversion Rate File are
noted in the following tables.
Mastercard provides the Acquirer Currency Conversion Rate File for the following
presentments:
• Regional First Presentments (production bulk file TQQ4, test bulk file TQQ6)
• Regional Second Presentments (production bulk file TQQ8, test bulk file TQR0)
• Intracurrency Presentments (production bulk file TQX2, test bulk file TQX4)

Table 7: Acquirer Currency Conversion Rate File Header Record (Regional First
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Header 1 1 an Constant—H
Description
2 Date 2-9 8 n File creation date.
YYYYMMDD
3 Time 10-15 6 n The time the file
was created.
Coordinated
Universal time
(UTC); six digits in
military format
HHMMSS. For
example, 3:30:30
p.m. would show
as 153030.
4 Rate File Format 16 1 an This field identifies
Version the file format
version. The initial
version will be 2
and will be
incremented each
time the file
format changes.
5 Filler 17-60 44 an Spaces

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 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Table 8: Acquirer Currency Conversion Rate File Detail Record (Regional First
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Detail 1 1 an Constant—R
Description
2 Transaction 2-4 3 n Represents
Currency Code transaction
currency code.
3 Acquirer Recon 5-7 3 n Represents
Currency Code acquirer
reconciliation
currency code.
4 Rate Class 8 1 an • M=
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rates

5 Effective 9-23 15 n Eight numbers to

Currency the left of the
Conversion Rate decimal, seven
numbers to the
right of the
decimal.
6 Filler 24-60 37 an Spaces

Table 9: Acquirer Currency Conversion Rate File Trailer Record (Regional First
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Trailer 1 1 an Constant—T
Description

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 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Field Number
and
Comments and
Name Position Length Format Values
2 Count 2-11 10 n Total number of
detail records. This
count does not
include the header
or trailer records.
3 Filler 12-60 49 an Spaces

Table 10: Acquirer Currency Conversion Rate File Header Record (Regional Second
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Header 1 1 an Constant—H
Description
2 Date 2-9 8 n File creation date.
YYYYMMDD
3 Time 10-15 6 n The time the file
was created.
Coordinated
Universal time
(UTC); six digits in
military format
HHMMSS. For
example, 3:30:30
p.m. would show
as 153030.
4 Rate File Format 16 1 an This field identifies
Version the file format
version. The initial
version will be 3
and will be
incremented each
time the file
format changes.
5 Filler 17-60 44 an Spaces

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Global Clearing Management System Reference Manual • 15 October 2019 462
 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Table 11: Acquirer Currency Conversion Rate File Detail Record (Regional Second
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Detail 1 1 an Constant—I
Description
2 Transaction 2-4 3 n Represents
Currency Code transaction
currency code.
3 Acquirer Recon 5-7 3 n Represents
Currency Code acquirer
reconciliation
currency code.
4 Rate Class 8 1 an • M=
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rates

5 Effective 9-23 15 n Eight numbers to

Currency the left of the
Conversion Rate decimal, seven
numbers to the
right of the
decimal.
6 Filler 24-60 37 an Spaces

Table 12: Acquirer Currency Conversion Rate File Trailer Record (Regional Second
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Trailer 1 1 an Constant—T
Description

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 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Field Number
and
Comments and
Name Position Length Format Values
2 Count 2-11 10 n Total number of
detail records. This
count does not
include the header
or trailer records.
3 Filler 12-60 49 an Spaces

Table 13: Acquirer Currency Conversion Rate File Header Record (Intracurrency
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Header 1 1 an Constant—H
Description
2 Date 2-9 8 n File creation date.
YYYYMMDD
3 Time 10-15 6 n The time the file
was created.
Coordinated
Universal time
(UTC); six digits in
military format
HHMMSS. For
example, 3:30:30
p.m. would show
as 153030.
4 Rate File Format 16 1 an This field identifies
Version the file format
version. The initial
version will be 4
and will be
incremented each
time the file
format changes.
5 Filler 17-60 44 an Spaces

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Global Clearing Management System Reference Manual • 15 October 2019 464
 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Table 14: Acquirer Currency Conversion Rate File Detail Record (Intracurrency
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Detail 1 1 an Constant—S
Description
2 Transaction 2-4 3 n Represents
Currency Code transaction
currency code.
3 Acquirer Recon 5-7 3 n Represents
Currency Code acquirer
reconciliation
currency code.
4 Rate Class 8 1 an • M=
Mastercard-
issued U.S.
dollar rates
• X = Calculated
cross rates

5 Effective 9-23 15 n Eight numbers to

Currency the left of the
Conversion Rate decimal, seven
numbers to the
right of the
decimal.
6 Filler 24-60 37 an Spaces

Table 15: Acquirer Currency Conversion Rate File Trailer Record (Intracurrency
Presentments)

Field Number
and
Comments and
Name Position Length Format Values
1 Trailer 1 1 an Constant—T
Description

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 Acquirer Currency Conversion Rate File Format
Acquirer Currency Conversion Rate File Format

Field Number
and
Comments and
Name Position Length Format Values
2 Count 2-11 10 n Total number of
detail records. This
count does not
include the header
or trailer records.
3 Filler 12-60 49 an Spaces

Application of Acquirer Currency Conversion Rate File to Determine Acquirer

Reconciliation Amount
The following steps explain how acquirers can determine the reconciliation amount within the
Acquirer Currency Conversion Rate File:
• Locate the record in the Acquirer Currency Conversion Rate File where the transaction
currency matches the currency in field 2 and the acquirer reconciliation currency matches
the currency in field 3.
• Multiply the currency conversion rate in field 5 by the transaction amount to determine the
acquirer reconciliation amount.

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Global Clearing Management System Reference Manual • 15 October 2019 466
 Originating Institution Payment Transaction Currency Conversion Rate File Format

Chapter 28 Originating Institution Payment Transaction

Currency Conversion Rate File Format
This section details the rate file format for the Originating Institution Payment Transaction Currency
Conversion Rate File.

Originating Institution Payment Transaction Currency Conversion Rate File Format...................... 468

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Global Clearing Management System Reference Manual • 15 October 2019 467
 Originating Institution Payment Transaction Currency Conversion Rate File Format
Originating Institution Payment Transaction Currency Conversion Rate File Format

Originating Institution Payment Transaction Currency Conversion Rate

File Format
The file header, detail, and trailer records for the Originating Institution Currency Conversion
Rate File are noted below.

Table 16: Originating Institution Payment Transaction Currency Conversion Rate File
Header

Field Number
and
Comments and
Name Position Length Format Values
1 Header 1 1 an Constant–H
Description
2 Date 2-9 8 n File creation date.
YYYYMMDD
3 Time 10-15 6 n The time the file
was created.
Coordinated
Universal time
(UTC); six digits in
military format
HHMMSS. For
example, 3:30:29
p.m. would show
as 153029.
4 Rate File Format 16 1 an This file identifies
Version the file format
version. The initial
version will be 2
and will be
incremented each
time the file
format changes.
5 Filler 17-60 44 an Spaces

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 Originating Institution Payment Transaction Currency Conversion Rate File Format
Originating Institution Payment Transaction Currency Conversion Rate File Format

Table 17: Originating Institution Payment Transaction Currency Conversion Rate File
Detail Record

Field Number
and
Comments and
Name Position Length Format Values
1 Detail 1 1 an Constant—R
Description
2 Transaction Type 2-4 3 an Transaction Type
Identifier Identifier. Valid
value is:
• CXX (default
value)

3 Transaction 5-7 3 n Represents the

Currency Code transaction
currency code of
the transaction.
4 Originating 8-10 3 n Represents the
Institution Recon originating
Currency Code institution
reconciliation
currency code of
the transaction.
5 Rate Class 11 1 an Indicates the rate
classification. Valid
values are:
• M=
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rate

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Global Clearing Management System Reference Manual • 15 October 2019 469
 Originating Institution Payment Transaction Currency Conversion Rate File Format
Originating Institution Payment Transaction Currency Conversion Rate File Format

Field Number
and
Comments and
Name Position Length Format Values
6 Effective 12-26 15 n Conversion rate
Currency (Assumed decimal
Conversion Rate after position 19).
Eight positions to
the left of the
decimal, seven
positions to the
right of the
decimal.
7 Filler 27-60 34 an Spaces

Table 18: Originating Institution Payment Transaction Currency Conversion Rate File
Trailer Record

Field Number
and
Comments and
Name Position Length Format Values
1 Trailer 1 1 an Constant—T
Description
2 Record Count 2-11 10 n Total number of
detail records. This
count does not
include the header
or trailer records.
3 Filler 12-60 49 an Spaces

The following steps explain how originating institutions can determine the reconciliation
amount using the Originating Institution Payment Transaction Currency Conversion Rate File.
1. Locate the record in the Originating Institution Payment Transaction Currency Conversion
Rate File where the Transaction Type Identifier matches the value in field 2, the transaction
currency matches the currency in field 3, and the Originating Institution reconciliation
currency matches the currency in field 4. If there is no match in field 2, then use the
default value of CXX (as the Transaction Type Identifier) to match.
2. Multiply the effective currency conversion rate in field 6 by the transaction amount to
determine the originating institution’s reconciliation amount.

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Global Clearing Management System Reference Manual • 15 October 2019 470