Transaction Processing Rules

Transaction Processing Rules

14 December 2021

TPR

Contents

Contents

Summary of Changes, 14 December 2021.................................................18

Applicability of Rules in this Manual............................................................. 20

Chapter 1: Connecting to the Interchange System and Authorization Routing........................................................................................... 22

1.1 Connecting to the Interchange System..................................................................24 1.2 Authorization Routing--Mastercard POS Transactions......................................24 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions......................25

1.3.1 Routing Instructions and System Maintenance............................................25 1.3.2 Chip Transaction Routing.................................................................................. 26 1.3.3 Domestic Transaction Routing......................................................................... 26 1.4 ATM Terminal Connection to the Interchange System....................................... 26 1.5 Gateway Processing....................................................................................................27 1.6 POS Terminal Connection to the Interchange System....................................... 27 Variations and Additions by Region............................................................................... 28 Asia/Pacific Region............................................................................................................ 28 1.4 ATM Terminal Connection to the Interchange System...................................28 1.6 POS Terminal Connection to the Interchange System...................................28 Canada Region....................................................................................................................28 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................28

1.3.3 Domestic Transaction Routing.................................................................... 28 1.4 ATM Terminal Connection to the Interchange System...................................29 Europe Region..................................................................................................................... 29 1.1 Connecting to the Interchange System.............................................................29 1.2 Authorization Routing--Mastercard POS Transactions................................. 29 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................30

1.3.2 Chip Transaction Routing..............................................................................30 1.3.3 Domestic Transaction Routing.................................................................... 30 1.4 ATM Terminal Connection to the Interchange System--SEPA Only............30 Latin America and the Caribbean Region.....................................................................30 1.4 ATM Terminal Connection to the Interchange System...................................30 1.6 POS Terminal Connection to the Interchange System...................................30 United States Region.........................................................................................................31 1.1 Connecting to the Interchange System.............................................................31 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................31 1.3.1 Routing Instructions and System Maintenance.......................................31 1.3.3 Domestic Transaction Routing.................................................................... 32

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1.4 ATM Terminal Connection to the Interchange System...................................32 Additional U.S. Region and U.S. Territory Rules...........................................................32

1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................32

Chapter 2: Authorization and Clearing Requirements........................33

2.1 Acquirer Authorization Requirements.....................................................................36 2.1.1 Acquirer Host System Requirements.............................................................. 37

2.2 Issuer Authorization Requirements......................................................................... 37 2.2.1 Issuer Host System Requirements...................................................................38 2.2.2 Stand-In Processing Service..............................................................................38 Accumulative Transaction Limits.......................................................................... 39 Chip Cryptogram Validation in Stand-In............................................................ 39 2.2.3 ATM Transaction Requirements for Mastercard Credit Card Issuers...... 39

2.3 Authorization Responses........................................................................................... 40 2.4 Performance Standards.............................................................................................40

2.4.1 Performance Standards--Acquirer Requirements....................................... 41 2.4.2 Performance Standards--Issuer Requirements............................................ 41

Issuer Failure Rate (Substandard Level 1)..........................................................41 Issuer Failure Rate (Substandard Level 2)..........................................................41 Calculation of the Issuer Failure Rate..................................................................42 2.5 Preauthorizations........................................................................................................ 42 2.5.1 Preauthorizations--Mastercard POS Transactions..................................... 42 2.5.2 Preauthorizations--Maestro POS Transactions........................................... 43 2.5.3 Preauthorizations--ATM and Manual Cash Disbursement Transactions....................................................................................................................43 2.6 Undefined Authorizations..........................................................................................43 2.7 Final Authorizations....................................................................................................44 2.8 Message Reason Code 4808 Chargeback Protection Period.............................44 2.9 Multiple Authorizations.............................................................................................. 45 2.10 Multiple Clearing Messages.................................................................................... 46 2.11 Full and Partial Reversals........................................................................................ 47 2.11.1 Full and Partial Reversals--Acquirer Requirements................................... 47 2.11.2 Full and Partial Reversals--Issuer Requirements........................................48 2.11.3 Reversal for Conversion of Approval to Decline......................................... 49 2.11.4 Reversal to Cancel Transaction......................................................................49 2.12 Full and Partial Approvals ...................................................................................... 50 2.13 Refund Transactions and Corrections...................................................................51 2.13.1 Refund Transactions--Acquirer Requirements............................................52 2.13.2 Refund Transactions--Issuer Requirements................................................ 52 2.14 Balance Inquiries........................................................................................................53 2.15 CVC 2 Verification for POS Transactions............................................................ 54

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2.16 CVC 3 Verification for Maestro Magnetic Stripe Mode Contactless Transactions--Brazil Only................................................................................................. 54 2.17 Euro Conversion--Europe Region Only................................................................. 54 2.18 Transaction Queries and Disputes.........................................................................54

2.18.1 Retrieval Requests and Fulfillments..............................................................55 2.18.2 Compliance with Dispute Procedures...........................................................55 2.19 Chargebacks for Reissued Cards........................................................................... 55 2.20 Correction of Errors..................................................................................................55 2.21 Co-badged Cards--Acceptance Brand Identifier............................................... 55 Variations and Additions by Region............................................................................... 56 Asia/Pacific Region............................................................................................................ 56 2.1 Acquirer Authorization Requirements................................................................56

2.1.1 Acquirer Host System Requirements......................................................... 56 2.2 Issuer Authorization Requirements.....................................................................56

2.2.1 Issuer Host System Requirements..............................................................57 2.3 Authorization Responses..................................................................................57 2.5 Preauthorizations................................................................................................... 57 2.5.1 Preauthorizations - Mastercard POS Transactions................................ 58 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 58 2.7 Final Authorization.................................................................................................58 2.12 Full and Partial Approvals...................................................................................58 2.13 Refund Transactions and Corrections .............................................................58 2.13.1 Refund Transactions--Acquirer Requirements....................................... 59 Canada Region....................................................................................................................59 2.1 Acquirer Authorization Requirements................................................................59 2.1.1 Acquirer Host System Requirements......................................................... 60 2.2 Issuer Authorization Requirements.....................................................................60 2.12 Full and Partial Approvals...................................................................................60 Europe Region..................................................................................................................... 62 2.1 Acquirer Authorization Requirements................................................................62 2.2 Issuer Authorization Requirements.....................................................................64 2.2.2 Stand-In Processing Service.........................................................................64 2.2.3 ATM Transaction Requirements for Mastercard Credit Card Issuers..........................................................................................................................65 2.3 Authorization Responses.......................................................................................65 2.4 Performance Standards........................................................................................65 2.4.2 Performance Standards--Issuer Requirements....................................... 65 2.5 Preauthorizations................................................................................................... 66 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 66 2.5.3 Preauthorizations--ATM and Manual Cash Disbursement Transactions...............................................................................................................67 2.7 Final Authorizations............................................................................................... 67 2.8 Message Reason Code 4808 Chargeback Protection Period........................ 68

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2.9 Multiple Authorizations......................................................................................... 68 2.11 Full and Partial Reversals....................................................................................69

2.11.1 Full and Partial Reversals--Acquirer Requirements.............................. 69 2.11.2 Full and Partial Reversals--Issuer Requirements...................................70 2.12 Full and Partial Approvals...................................................................................70 2.13 Refund Transactions and Corrections..............................................................70 2.13.1 Refund Transactions--Acquirer Requirements....................................... 70 2.13.2 Refund Transactions--Issuer Requirements............................................70 2.14 Balance Inquiries...................................................................................................71 2.15 CVC 2 Verification for POS Transactions........................................................71 2.17 Euro Conversion....................................................................................................72 2.21 Co-badged Cards--Acceptance Brand Identifier...........................................72 Latin America and the Caribbean Region.....................................................................73 2.16 CVC 3 Verification for Maestro Magnetic Stripe Mode Contactless-- Brazil Only....................................................................................................................... 73 United States Region.........................................................................................................73 2.1 Acquirer Authorization Requirements................................................................73 2.1.1 Acquirer Host System Requirements......................................................... 74 2.2 Issuer Authorization Requirements.....................................................................74 2.2.1 Issuer Host System Requirements..............................................................74 2.2.2 Stand-In Processing Service.........................................................................74 2.4 Performance Standards........................................................................................77 2.4.2 Performance Standards--Issuer Requirements....................................... 77 2.5 Preauthorizations................................................................................................... 77 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 77 2.11 Full and Partial Reversals....................................................................................77 2.11.1 Full and Partial Reversals--Acquirer Requirements.............................. 77 2.11.2 Full and Partial Reversals--Issuer Requirements...................................79 2.12 Full and Partial Approvals...................................................................................79 2.14 Balance Inquiries...................................................................................................80 Middle East/Africa Region................................................................................................80 2.1 Acquirer Authorization Requirements ...............................................................80 2.7 Final Authorizations .............................................................................................. 80 2.12 Full and Partial Approvals...................................................................................80

Chapter 3: Acceptance Procedures................................................................ 81

3.1 Card-Present Transactions........................................................................................84 3.1.1 Mastercard Card Acceptance Procedures..................................................... 84 Suspicious Cards.......................................................................................................85 3.1.2 Maestro Card Acceptance Procedures........................................................... 85

3.2 Card-Not-Present Transactions............................................................................... 85 3.3 Obtaining an Authorization.......................................................................................86

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3.3.1 Mastercard POS Transaction Authorization Procedures............................86 Authorization of Lodging, Cruise Line, and Vehicle Rental Transactions.....87 Authorization When the Cardholder Adds a Gratuity..................................... 87 Card-Not-Present Transaction Declines............................................................. 88 Use of Card Validation Code (CVC) 2..................................................................88 Capture Card Response.......................................................................................... 89

3.3.2 Maestro POS Transaction Authorization Procedures................................. 89 3.4 Mastercard Cardholder Verification Requirements............................................. 89

CVM Not Required for Refund Transactions........................................................... 91 Use of PIN for Mastercard Magnetic Stripe Transactions................................... 91 3.5 Maestro Cardholder Verification Requirements................................................... 91 3.6 Use of a PIN for Transactions at ATM Terminals and Bank Branch Terminals.............................................................................................................................. 92 3.7 Use of a Consumer Device CVM...............................................................................93 3.8 POI Currency Conversion........................................................................................... 93 3.8.1 Cardholder Disclosure Requirements..............................................................94 3.8.2 Cardholder Disclosure--Transaction Receipt Information..........................96 3.8.3 Priority Check-Out.............................................................................................. 96 3.8.4 Transaction Processing Requirements............................................................ 97 3.9 Multiple Transactions--Mastercard POS Transactions Only..............................97 3.10 Partial Payment--Mastercard POS Transactions Only.....................................98 3.11 Specific Terms of a Transaction............................................................................. 98 3.11.1 Specific Terms of an E-commerce Transaction.......................................... 98 3.12 Charges for Loss, Theft, or Damage--Mastercard POS Transactions Only........................................................................................................................................99 3.13 Providing a Transaction Receipt.............................................................................99 3.13.1 POS and Mastercard Manual Cash Disbursement Transaction Receipt Requirements................................................................................................ 101 3.13.2 ATM and Bank Branch Terminal Transaction Receipt Requirements.. 102 3.13.3 Primary Account Number (PAN) Truncation and Expiration Date Omission........................................................................................................................103 3.13.4 Prohibited Information.................................................................................. 103 3.13.5 Standard Wording for Formsets................................................................. 103 3.14 Returned Products and Canceled Services........................................................104 3.14.1 Refund Transactions.......................................................................................105 3.15 Transaction Records............................................................................................... 106 3.15.1 Transaction Presentment Time Frames.....................................................106 3.15.2 Retention of Transaction Records............................................................... 107 Variations and Additions by Region............................................................................. 108 Asia/Pacific Region..........................................................................................................108 3.14 Returned Products and Canceled Services...................................................108

3.14.1 Refund Transactions..................................................................................108 Europe Region...................................................................................................................108

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3.1 Card-Present Transactions.................................................................................108 3.1.1 Mastercard Card Acceptance Procedures.............................................. 108

3.2 Card-Not-Present Transactions........................................................................108 3.3 Obtaining an Authorization................................................................................109

3.3.1 Mastercard POS Transaction Authorization Procedures.................... 109 Authorization of Lodging, Cruise Line, and Vehicle Rental Transactions....................................................................................................... 109 Authorization When the Cardholder Adds a Gratuity.............................. 109

3.3.2 Maestro POS Transaction Authorization Procedures.......................... 110 3.5 Maestro Cardholder Verification Requirements............................................110 3.8 POI Currency Conversion.................................................................................... 110 3.13 Providing a Transaction Receipt......................................................................111

3.13.1 POS and Mastercard Manual Cash Disbursement Transaction Receipt Requirements............................................................................................111 3.13.3 Primary Account Number (PAN) Truncation and Expiration Date Omission...................................................................................................................111 3.14 Returned Products and Canceled Services...................................................111 3.14.1 Refund Transactions..................................................................................111 Latin America and the Caribbean Region.................................................................. 112 3.4 Mastercard Cardholder Verification Requirements...................................... 112 3.5 Maestro Cardholder Verification Requirements............................................112 Middle East/Africa Region............................................................................................. 113 3.14 Returned Products and Canceled Services...................................................113 3.14.1 Refund Transactions..................................................................................113 United States Region...................................................................................................... 114 3.3 Obtaining an Authorization................................................................................114 3.3.1 Mastercard POS Transaction Authorization Procedures.................... 114

Authorization When the Cardholder Adds a Gratuity.............................. 114 3.5 Maestro Cardholder Verification Requirements............................................115 3.15 Transaction Records.......................................................................................... 115

3.15.1 Transaction Presentment Time Frames................................................115 Additional U.S. Region and U.S. Territory Rules........................................................ 115

3.14 Returned Products and Canceled Services...................................................115 3.14.1 Refund Transactions..................................................................................115

Chapter 4: Card-Present Transactions...................................................... 116

4.1 Chip Transactions at Hybrid Terminals.................................................................119 4.2 Offline Transactions Performed on Board Planes, Trains, and Ships............ 120 4.3 No-CVM Magnetic Stripe and Contact Chip Maestro POS Transactions-- Europe Region Only......................................................................................................... 121 4.4 Contactless Transactions at POS Terminals.......................................................121 4.5 Contactless Transit Transactions.......................................................................... 122

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4.5.1 Mastercard Contactless Transit Aggregated Transactions.....................122 4.5.2 Maestro Contactless Transit Aggregated Transactions...........................123 4.6 Contactless Transactions at ATM Terminals.......................................................123 4.7 Contactless-only Acceptance................................................................................. 124 4.8 Mastercard Consumer-Presented QR Transactions at POS Terminals........ 125 4.9 Quick Payment Service (QPS) Program--Mastercard POS Transactions Only..................................................................................................................................... 125 4.10 Purchase with Cash Back Transactions............................................................. 126 4.11 Transactions at Unattended POS Terminals.................................................... 128 4.11.1 Automated Fuel Dispenser Transactions...................................................128 4.11.2 Electric Vehicle Charging Transactions...................................................... 129 4.12 PIN-based Debit Transactions--United States Region Only......................... 130 4.13 PIN-less Single Message Transactions--United States Region Only........... 131 4.14 Merchant-approved Maestro POS Transactions............................................. 131 4.15 Mastercard Manual Cash Disbursement Transactions.................................. 132 4.15.1 Non-discrimination Regarding Cash Disbursement Services............... 132 4.15.2 Maximum Cash Disbursement Amounts...................................................132 4.15.3 Discount or Service Charges........................................................................ 133 4.15.4 Mastercard Acceptance Mark Must Be Displayed...................................133 4.16 Encashment of Mastercard Travelers Cheques................................................133 4.17 ATM Transactions....................................................................................................133 4.17.1 "Chained" Transactions................................................................................. 134 4.17.2 ATM Transaction Branding............................................................................134 4.18 ATM Access Fees..................................................................................................... 134 4.18.1 ATM Access Fees--Domestic Transactions................................................134 4.18.2 ATM Access Fees--Cross-border Transactions......................................... 134 4.18.3 ATM Access Fee Requirements.................................................................... 135

Transaction Field Specifications for ATM Access Fees.................................. 135 Non-discrimination Regarding ATM Access Fees............................................ 135 Notification of ATM Access Fee.......................................................................... 135 Cancellation of Transaction................................................................................. 135 Sponsor Approval of Proposed Signage, Screen Display, and Receipt.......135 ATM Terminal Signage...........................................................................................136 ATM Terminal Screen Display.............................................................................. 136 ATM Transaction Receipts.................................................................................... 137 4.19 Merchandise Transactions at ATM Terminals................................................... 137 4.19.1 Approved Merchandise Categories.............................................................137 4.19.2 Screen Display Requirement for Merchandise Categories.................... 138 4.20 Shared Deposits--United States Region Only.................................................. 138 Variations and Additions by Region............................................................................. 139 Asia/Pacific Region..........................................................................................................139 4.1 Chip Transactions at Hybrid Terminals............................................................139 4.10 Purchase with Cash Back Transactions........................................................ 139

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