Mastercard Rules - Rev19

Mastercard Rules

25 June 2019

BM

Summary of Changes, 25 June 2019

Summary of Changes, 25 June 2019

The following are changes with the most recent publication of this document.

Chapter Number Chapter 2--Standards and Conduct of Activity and Digital Activity Chapter 3--Customer Obligations Chapter 5--Acquiring Chapter 6--Issuing Chapter 7--Service Providers

Chapter 7--Service Providers

Rule Name

Source or Explanation of Revisions

2.2.7 Information Security Program (Added)

2.5 Examination and Audit

See "AN 2405--Revised Standards--Information Security and Audit Requirements," 10 April 2019.

3.9 Obligation of Customer to Provide Information

See "AN 2713--Revised Standards--Clarifications to Defined Terms," 6 May 2019.

5.9.1.1 Location of Display

See "AN 2450--Revised Standards--Mastercard Consumer-Presented QR Transactions," 12 April 2019.

6.1 Card Issuance--General Requirements

See "AN 2450--Revised Standards--Mastercard Consumer-Presented QR Transactions," 12 April 2019.

7.1 Service Provider Categories See "AN 2368--Revised

Standards--Removal of Service

7.5 Use of Corporation's Systems Provider Category," 11 January

and Confidential Information

2019.

7.9 Registration Requirements

for DSEs, ISOs and Type II TPPs

7.13 Registration Requirements for Staged DWOs

7.17 Registration Requirements for Terminal Servicers

7.18 Registration Requirements for 3-D Secure Service Providers

7.19 Registration of a Service Provider Registration Facilitator (Deleted)

7.9 Registration Requirements for DSEs, ISOs and Type II TPPs

Clarified the registration requirements for all Service Providers, including Type I TPPs.

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Summary of Changes, 25 June 2019

Chapter Number Chapter 12--Europe Region Chapter 12--Europe Region

Chapter 12--Europe Region

Chapter 15--United States Region Appendix A--Geographic Regions Appendix C--Definitions

Appendix C--Definitions

Rule Name

Source or Explanation of Revisions

1.7 Area of Use of the License

1.7.1 Extending the Area of Use (Added)

See "AN 2062--Revised Standards--Area of Use," 17 December 2018.

3.13.2 Processing of Transaction- See "AN 2713--Revised

related Personal Data

Standards--Clarifications to

3.13.4 Data Subject Notice and Defined Terms," 6 May 2019.

Legal Grounds for the Processing

of Personal Data

5.11.1 Discrimination

6.1 Card Issuance--General Requirements

See "AN 1396--Revised Standards--Mastercard Identity Check Program and EMV 3-D Secure Update in High Growth European Market Countries," 18 April 2019.

See "AN 2695--Revised Standards--Mastercard Identity Check Program and EMV 3-D Secure in Ukraine and Moldova," 17 May 2019.

5.7.1 Card Acceptor Business Code (MCC) Information

Middle East/Africa Region

See "AN 2259--Revised Standards--Merchant Category Code 9754," 30 October 2018.

Removed Reunion.

Access Device

Mastercard Consumer-Presented QR Transaction (Added)

Mobile Payment Device

See "AN 2450--Revised Standards--Mastercard Consumer-Presented QR Transactions," 12 April 2019.

Quick Response (QR) Code (Added)

Cardholder Verification Method (CVM)

See "AN 2234--Revised Standards--Signature Panel on Cards," 18 October 2018.

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Summary of Changes, 25 June 2019

Chapter Number Appendix C--Definitions

Appendix C--Definitions

Rule Name Processed Transaction Terminal

Service Provider Registration Facilitator (Deleted)

Source or Explanation of Revisions

See "AN 2713--Revised Standards--Clarifications to Defined Terms," 6 May 2019.

See "AN 2368--Revised Standards--Removal of Service Provider Category," 11 January 2019.

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Mastercard Standards

Mastercard Standards

Mastercard is dedicated to making payments safe, simple and smart. We have a set of standards ("the Standards") in support of this mission that provides our Customers with clear direction as to their responsibilities. The Standards include the information contained in this Mastercard Rules manual and other manuals, along with guides, bulletins and policies that may be updated from time to time.

The Standards enable growth for Mastercard and for our Customers while ensuring integrity and reliability. They are developed under a set of principles that guide us in our actions and provide a framework under which we operate.

Mastercard and its Customers:

Uphold the value of the Mastercard brands as the choice of payment for consumers, businesses and merchants. Consumers, businesses and merchants have multiple payment options to use and to accept. Mastercard and its Customers operate so as to uphold the value of the Mastercard brands so that our products will be adopted and chosen by these end users.

Act with financial integrity and in compliance with the Standards and the law. Operating programs in a manner that is financially sound, in compliance with the Standards and the law helps us manage risk to Mastercard and to our Customers.

Engage in rigorous fraud management practices. Ensuring that transactions are conducted securely is of the utmost importance. Mastercard and its Customers leverage best-in-class technology and business practices in order to make transactions safe.

Manage systems and programs to support interoperability. The ability to process transactions at a global and local level is a key feature of the Mastercard network. Customers manage their systems and programs to enable the seamless acceptance and processing of Mastercard transactions.

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Applicability of Rules in this Manual

Applicability of Rules in this Manual

This manual contains Rules for the Mastercard?, Maestro? and Cirrus? brands. The Rules relate to Activity conducted pursuant to a License that Mastercard grants to a Customer for use of one or more of these brands and/or to conduct Digital Activity. If a particular brand or brands is not mentioned in a Rule, then the Rule applies to all three brands.

This manual also contains Rules for the Mastercard Electronic and Mastercard Mobile brands. The Rules for these brands apply only to those Customers Licensed to use either or both of these brands.

The below table describes the applicability of the Rules for particular types of Transactions. Please note that the term "POS Transaction" refers to a Transaction that occurs at a Merchant location, whether in a Card-present environment at an attended or unattended POS Terminal, or in a Card-not-present environment. In a Card-not-present environment, this may include electronic commerce ("e-commerce"), mail order, phone order, or recurring payment Transactions.

Refer to the Transaction Processing Rules manual for brand-specific Rules relating to acceptance in Card-present and Card-not-present environments and the processing of particular Transaction types.

Rules relating to... Mastercard POS Transactions Maestro POS Transactions

ATM Transactions Manual Cash Disbursement Transactions

Mastercard Electronic Transactions

Apply to...

A POS Transaction conducted with a Mastercard Card.

A POS Transaction conducted with:

? A Maestro Card, or ? A Mastercard Card issued using a BIN identified by the

Corporation as "Debit Mastercard" and routed to the Single Message System.

A Transaction conducted with a Mastercard, Maestro, or Cirrus Card at an ATM Terminal and routed to the Interchange System.

A cash withdrawal Transaction conducted at a Customer financial institution teller with:

? A Mastercard Card, or ? A Maestro or Cirrus Card at a Bank Branch Terminal and routed

to the Interchange System.

A POS Transaction conducted with a Mastercard Electronic Card at a Mastercard Electronic Merchant.

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Applicability of Rules in this Manual

Rules relating to... Mastercard Mobile Remote Payment (MMRP) Transactions

Payment Transactions

Apply to...

A POS Transaction performed by an enrolled consumer using a mobile device registered by the Issuer or its Service Manager and having Mastercard Mobile Remote Payment functionality. The consumer, as a Mastercard or Maestro Cardholder, initiates and authenticates payments by entering a PIN or mobile-specific credentials on the mobile device.

A Transaction that transfers funds to an Account. A Payment Transaction is not a credit that reverses a previous purchase. Includes MoneySendTM Payment Transactions.

Modifying Words and Acronyms

From time to time, the meanings of the above terms are modified by the addition of another word or acronym. For example, a Debit Mastercard POS Transaction means a Transaction resulting from the use of a Debit Mastercard Card at the point of sale (POS). However, for ease of use, not every modifying term is defined. While Mastercard alone interprets and enforces its Rules and other Standards, these Mastercard Rules endeavor to use defined terms and other terms and terminology in a plain manner that will be generally understood in the payments industry.

Variations and Additions to the Rules for a Geographic Area

Variations and/or additions ("modifications") to the Rules are applicable in geographic areas, whether a country, a number of countries, a region, or other area. In the event of a conflict between a Rule and a modification of that Rule, the modification is afforded precedence and is applicable. The Rules set forth in this manual are Standards and Mastercard has the sole right to interpret and enforce the Rules and other Standards.

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Contents

Contents

Summary of Changes, 25 June 2019.................................................................. 2

Mastercard Standards................................................................................................5

Applicability of Rules in this Manual.................................................................6

Chapter 1: The License and Participation...................................................... 26

1.1 Eligibility to be a Customer.........................................................................................28 1.1.1 Principal or Affiliate............................................................................................ 28 1.1.2 Association.........................................................................................................28 1.1.3 Digital Activity Customer.................................................................................... 29

1.2 Mastercard Anti-Money Laundering and Sanctions Requirements............................... 29 1.2.1 Anti-Money Laundering Requirements................................................................ 29 1.2.2 Sanction Requirements....................................................................................... 30

1.3 Satisfaction of Minimum Financial Requirements........................................................ 31 1.4 Special Conditions of Participation, License or Activity................................................ 31 1.5 Interim Participation................................................................................................... 32 1.6 The License................................................................................................................ 32

1.6.1 SEPA Licensing Program--Europe Region Only....................................................32 1.7 Area of Use of the License..........................................................................................32

1.7.1 Extending the Area of Use.................................................................................. 33 1.7.2 Extension of Area of Use Exceptions................................................................... 33 1.7.3 Central Acquiring--Europe Region Only............................................................. 34 1.7.4 Transfer of Cards to India Residents is Prohibited without a License.....................34 1.8 The Digital Activity Agreement................................................................................... 34 1.9 Participation in Activity and Digital Activity................................................................. 35 1.9.1 Changing Customer Status.................................................................................35 1.9.2 Participation and License or Digital Activity Agreement Not Transferable............. 35 1.9.3 Right to Sponsor Affiliates.................................................................................. 35 1.9.4 Change in Sponsorship of an Affiliate................................................................. 35 1.9.5 Customer Name Change.................................................................................... 35 1.10 Participation in Competing Networks....................................................................... 35 1.10.1 Protection of the Corporation........................................................................... 36 1.10.2 Participation Restrictions...................................................................................36 1.10.3 Exceptions to the Participation Restrictions....................................................... 37 1.11 Portfolio Sale, Transfer, or Withdrawal......................................................................38 1.12 Change of Control of Customer or Portfolio.............................................................39 1.13 Termination..............................................................................................................39

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