Transaction Processing Rules - MasterCard

Transaction Processing Rules

5 October 2021

TPR

Contents

Contents

Summary of Changes, 5 October 2021........................................................18

Applicability of Rules in this Manual............................................................. 25

Chapter 1: Connecting to the Interchange System and Authorization Routing........................................................................................... 27

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

1.3.1 Routing Instructions and System Maintenance............................................30 1.3.2 Chip Transaction Routing.................................................................................. 31 1.3.3 Domestic Transaction Routing......................................................................... 31 1.4 ATM Terminal Connection to the Interchange System....................................... 31 1.5 Gateway Processing....................................................................................................32 1.6 POS Terminal Connection to the Interchange System....................................... 32 Variations and Additions by Region............................................................................... 33 Asia/Pacific Region............................................................................................................ 33 1.4 ATM Terminal Connection to the Interchange System...................................33 1.6 POS Terminal Connection to the Interchange System...................................33 Canada Region....................................................................................................................33 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................33

1.3.3 Domestic Transaction Routing.................................................................... 33 1.4 ATM Terminal Connection to the Interchange System...................................34 Europe Region..................................................................................................................... 34 1.1 Connecting to the Interchange System.............................................................34 1.2 Authorization Routing--Mastercard POS Transactions................................. 34 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................35

1.3.2 Chip Transaction Routing..............................................................................35 1.3.3 Domestic Transaction Routing.................................................................... 35 1.4 ATM Terminal Connection to the Interchange System--SEPA Only............35 Latin America and the Caribbean Region.....................................................................35 1.4 ATM Terminal Connection to the Interchange System...................................35 1.6 POS Terminal Connection to the Interchange System...................................35 United States Region.........................................................................................................36 1.1 Connecting to the Interchange System.............................................................36 1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................36 1.3.1 Routing Instructions and System Maintenance.......................................36 1.3.3 Domestic Transaction Routing.................................................................... 37

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1.4 ATM Terminal Connection to the Interchange System...................................37 Additional U.S. Region and U.S. Territory Rules...........................................................37

1.3 Authorization Routing--Maestro, Cirrus, and ATM Transactions.................37

Chapter 2: Authorization and Clearing Requirements........................38

2.1 Acquirer Authorization Requirements.....................................................................41 2.1.1 Acquirer Host System Requirements.............................................................. 42

2.2 Issuer Authorization Requirements......................................................................... 42 2.2.1 Issuer Host System Requirements...................................................................43 2.2.2 Stand-In Processing Service..............................................................................43 Accumulative Transaction Limits.......................................................................... 44 Chip Cryptogram Validation in Stand-In............................................................ 44 2.2.3 ATM Transaction Requirements for Mastercard Credit Card Issuers...... 44

2.3 Authorization Responses........................................................................................... 45 2.4 Performance Standards.............................................................................................45

2.4.1 Performance Standards--Acquirer Requirements....................................... 46 2.4.2 Performance Standards--Issuer Requirements............................................ 46

Issuer Failure Rate (Substandard Level 1)..........................................................46 Issuer Failure Rate (Substandard Level 2)..........................................................46 Calculation of the Issuer Failure Rate..................................................................47 2.5 Preauthorizations........................................................................................................ 47 2.5.1 Preauthorizations--Mastercard POS Transactions..................................... 47 2.5.2 Preauthorizations--Maestro POS Transactions........................................... 48 2.5.3 Preauthorizations--ATM and Manual Cash Disbursement Transactions....................................................................................................................48 2.6 Undefined Authorizations..........................................................................................48 2.7 Final Authorizations....................................................................................................49 2.8 Message Reason Code 4808 Chargeback Protection Period.............................49 2.9 Multiple Authorizations.............................................................................................. 50 2.10 Multiple Clearing Messages.................................................................................... 51 2.11 Full and Partial Reversals........................................................................................ 52 2.11.1 Full and Partial Reversals--Acquirer Requirements................................... 52 2.11.2 Full and Partial Reversals--Issuer Requirements........................................53 2.11.3 Reversal for Conversion of Approval to Decline......................................... 54 2.11.4 Reversal to Cancel Transaction......................................................................54 2.12 Full and Partial Approvals ...................................................................................... 55 2.13 Refund Transactions and Corrections...................................................................56 2.13.1 Refund Transactions--Acquirer Requirements............................................57 2.13.2 Refund Transactions--Issuer Requirements................................................ 57 2.14 Balance Inquiries........................................................................................................58 2.15 CVC 2 Verification for POS Transactions............................................................ 59

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2.16 CVC 3 Verification for Maestro Magnetic Stripe Mode Contactless Transactions--Brazil Only................................................................................................. 59 2.17 Euro Conversion--Europe Region Only................................................................. 59 2.18 Transaction Queries and Disputes.........................................................................59

2.18.1 Retrieval Requests and Fulfillments..............................................................60 2.18.2 Compliance with Dispute Procedures...........................................................60 2.19 Chargebacks for Reissued Cards........................................................................... 60 2.20 Correction of Errors..................................................................................................60 2.21 Co-badged Cards--Acceptance Brand Identifier............................................... 60 Variations and Additions by Region............................................................................... 61 Asia/Pacific Region............................................................................................................ 61 2.1 Acquirer Authorization Requirements................................................................61

2.1.1 Acquirer Host System Requirements......................................................... 61 2.2 Issuer Authorization Requirements.....................................................................61

2.2.1 Issuer Host System Requirements..............................................................62 2.3 Authorization Responses..................................................................................62 2.5 Preauthorizations................................................................................................... 62 2.5.1 Preauthorizations - Mastercard POS Transactions................................ 63 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 63 2.7 Final Authorization.................................................................................................63 2.12 Full and Partial Approvals...................................................................................63 2.13 Refund Transactions and Corrections .............................................................63 2.13.1 Refund Transactions--Acquirer Requirements....................................... 64 Canada Region....................................................................................................................64 2.1 Acquirer Authorization Requirements................................................................64 2.1.1 Acquirer Host System Requirements......................................................... 65 2.2 Issuer Authorization Requirements.....................................................................65 2.12 Full and Partial Approvals...................................................................................65 Europe Region..................................................................................................................... 67 2.1 Acquirer Authorization Requirements................................................................67 2.2 Issuer Authorization Requirements.....................................................................69 2.2.2 Stand-In Processing Service.........................................................................69 2.2.3 ATM Transaction Requirements for Mastercard Credit Card Issuers..........................................................................................................................70 2.3 Authorization Responses.......................................................................................70 2.4 Performance Standards........................................................................................70 2.4.2 Performance Standards--Issuer Requirements....................................... 70 2.5 Preauthorizations................................................................................................... 71 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 71 2.5.3 Preauthorizations--ATM and Manual Cash Disbursement Transactions...............................................................................................................72 2.7 Final Authorizations............................................................................................... 72 2.8 Message Reason Code 4808 Chargeback Protection Period........................ 73

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2.9 Multiple Authorizations......................................................................................... 73 2.11 Full and Partial Reversals....................................................................................74

2.11.1 Full and Partial Reversals--Acquirer Requirements.............................. 74 2.11.2 Full and Partial Reversals--Issuer Requirements...................................75 2.12 Full and Partial Approvals...................................................................................75 2.13 Refund Transactions and Corrections..............................................................75 2.13.1 Refund Transactions--Acquirer Requirements....................................... 75 2.13.2 Refund Transactions--Issuer Requirements............................................75 2.14 Balance Inquiries...................................................................................................76 2.15 CVC 2 Verification for POS Transactions........................................................76 2.17 Euro Conversion....................................................................................................77 2.21 Co-badged Cards--Acceptance Brand Identifier...........................................77 Latin America and the Caribbean Region.....................................................................78 2.16 CVC 3 Verification for Maestro Magnetic Stripe Mode Contactless-- Brazil Only....................................................................................................................... 78 United States Region.........................................................................................................78 2.1 Acquirer Authorization Requirements................................................................78 2.1.1 Acquirer Host System Requirements......................................................... 79 2.2 Issuer Authorization Requirements.....................................................................79 2.2.1 Issuer Host System Requirements..............................................................79 2.2.2 Stand-In Processing Service.........................................................................79 2.4 Performance Standards........................................................................................82 2.4.2 Performance Standards--Issuer Requirements....................................... 82 2.5 Preauthorizations................................................................................................... 82 2.5.2 Preauthorizations--Maestro POS Transactions...................................... 82 2.11 Full and Partial Reversals....................................................................................82 2.11.1 Full and Partial Reversals--Acquirer Requirements.............................. 82 2.11.2 Full and Partial Reversals--Issuer Requirements...................................84 2.12 Full and Partial Approvals...................................................................................84 2.14 Balance Inquiries...................................................................................................85 Middle East/Africa Region................................................................................................85 2.1 Acquirer Authorization Requirements ...............................................................85 2.7 Final Authorizations .............................................................................................. 85 2.12 Full and Partial Approvals...................................................................................85

Chapter 3: Acceptance Procedures................................................................ 86

3.1 Card-Present Transactions........................................................................................89 3.1.1 Mastercard Card Acceptance Procedures..................................................... 89 Suspicious Cards.......................................................................................................90 3.1.2 Maestro Card Acceptance Procedures........................................................... 90

3.2 Card-Not-Present Transactions............................................................................... 90 3.3 Obtaining an Authorization.......................................................................................91

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3.3.1 Mastercard POS Transaction Authorization Procedures............................91 Authorization of Lodging, Cruise Line, and Vehicle Rental Transactions.....92 Authorization When the Cardholder Adds a Gratuity..................................... 92 Card-Not-Present Transaction Declines............................................................. 93 Use of Card Validation Code (CVC) 2..................................................................93 Capture Card Response.......................................................................................... 94

3.3.2 Maestro POS Transaction Authorization Procedures................................. 94 3.4 Mastercard Cardholder Verification Requirements............................................. 94

CVM Not Required for Refund Transactions........................................................... 96 Use of PIN for Mastercard Magnetic Stripe Transactions................................... 96 3.5 Maestro Cardholder Verification Requirements................................................... 96 3.6 Use of a PIN for Transactions at ATM Terminals and Bank Branch Terminals.............................................................................................................................. 97 3.7 Use of a Consumer Device CVM...............................................................................98 3.8 POI Currency Conversion........................................................................................... 98 3.8.1 Cardholder Disclosure Requirements..............................................................99 3.8.2 Cardholder Disclosure--Transaction Receipt Information........................101 3.8.3 Priority Check-Out............................................................................................ 101 3.8.4 Transaction Processing Requirements..........................................................102 3.9 Multiple Transactions--Mastercard POS Transactions Only........................... 102 3.10 Partial Payment--Mastercard POS Transactions Only...................................103 3.11 Specific Terms of a Transaction...........................................................................103 3.11.1 Specific Terms of an E-commerce Transaction........................................103 3.12 Charges for Loss, Theft, or Damage--Mastercard POS Transactions Only..................................................................................................................................... 104 3.13 Providing a Transaction Receipt...........................................................................104 3.13.1 POS and Mastercard Manual Cash Disbursement Transaction Receipt Requirements................................................................................................ 106 3.13.2 ATM and Bank Branch Terminal Transaction Receipt Requirements.. 107 3.13.3 Primary Account Number (PAN) Truncation and Expiration Date Omission........................................................................................................................108 3.13.4 Prohibited Information.................................................................................. 108 3.13.5 Standard Wording for Formsets................................................................. 108 3.14 Returned Products and Canceled Services........................................................109 3.14.1 Refund Transactions.......................................................................................110 3.15 Transaction Records............................................................................................... 111 3.15.1 Transaction Presentment Time Frames.....................................................111 3.15.2 Retention of Transaction Records............................................................... 112 Variations and Additions by Region............................................................................. 113 Asia/Pacific Region..........................................................................................................113 3.14 Returned Products and Canceled Services...................................................113

3.14.1 Refund Transactions..................................................................................113 Europe Region...................................................................................................................113

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3.1 Card-Present Transactions.................................................................................113 3.1.1 Mastercard Card Acceptance Procedures.............................................. 113

3.2 Card-Not-Present Transactions........................................................................113 3.3 Obtaining an Authorization................................................................................114

3.3.1 Mastercard POS Transaction Authorization Procedures.................... 114 Authorization of Lodging, Cruise Line, and Vehicle Rental Transactions....................................................................................................... 114 Authorization When the Cardholder Adds a Gratuity.............................. 114

3.3.2 Maestro POS Transaction Authorization Procedures.......................... 115 3.5 Maestro Cardholder Verification Requirements............................................115 3.8 POI Currency Conversion.................................................................................... 115 3.13 Providing a Transaction Receipt......................................................................116

3.13.1 POS and Mastercard Manual Cash Disbursement Transaction Receipt Requirements............................................................................................116 3.13.3 Primary Account Number (PAN) Truncation and Expiration Date Omission...................................................................................................................116 3.14 Returned Products and Canceled Services...................................................116 3.14.1 Refund Transactions..................................................................................116 Latin America and the Caribbean Region.................................................................. 117 3.4 Mastercard Cardholder Verification Requirements...................................... 117 3.5 Maestro Cardholder Verification Requirements............................................117 Middle East/Africa Region............................................................................................. 118 3.14 Returned Products and Canceled Services...................................................118 3.14.1 Refund Transactions..................................................................................118 United States Region...................................................................................................... 119 3.3 Obtaining an Authorization................................................................................119 3.3.1 Mastercard POS Transaction Authorization Procedures.................... 119

Authorization When the Cardholder Adds a Gratuity.............................. 119 3.5 Maestro Cardholder Verification Requirements............................................120 3.15 Transaction Records.......................................................................................... 120

3.15.1 Transaction Presentment Time Frames................................................120 Additional U.S. Region and U.S. Territory Rules........................................................ 120

3.14 Returned Products and Canceled Services...................................................120 3.14.1 Refund Transactions..................................................................................120

Chapter 4: Card-Present Transactions...................................................... 121

4.1 Chip Transactions at Hybrid Terminals.................................................................124 4.2 Offline Transactions Performed on Board Planes, Trains, and Ships............ 125 4.3 No-CVM Magnetic Stripe and Contact Chip Maestro POS Transactions-- Europe Region Only......................................................................................................... 126 4.4 Contactless Transactions at POS Terminals.......................................................126 4.5 Contactless Transit Transactions.......................................................................... 127

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4.5.1 Mastercard Contactless Transit Aggregated Transactions.....................127 4.5.2 Maestro Contactless Transit Aggregated Transactions...........................128 4.6 Contactless Transactions at ATM Terminals.......................................................128 4.7 Contactless-only Acceptance................................................................................. 129 4.8 Mastercard Consumer-Presented QR Transactions at POS Terminals........ 130 4.9 Quick Payment Service (QPS) Program--Mastercard POS Transactions Only..................................................................................................................................... 130 4.10 Purchase with Cash Back Transactions............................................................. 131 4.11 Transactions at Unattended POS Terminals.................................................... 133 4.11.1 Automated Fuel Dispenser Transactions...................................................133 4.11.2 Electric Vehicle Charging Transactions...................................................... 134 4.12 PIN-based Debit Transactions--United States Region Only......................... 135 4.13 PIN-less Single Message Transactions--United States Region Only........... 136 4.14 Merchant-approved Maestro POS Transactions............................................. 136 4.15 Mastercard Manual Cash Disbursement Transactions.................................. 137 4.15.1 Non-discrimination Regarding Cash Disbursement Services............... 137 4.15.2 Maximum Cash Disbursement Amounts...................................................137 4.15.3 Discount or Service Charges........................................................................ 138 4.15.4 Mastercard Acceptance Mark Must Be Displayed...................................138 4.16 Encashment of Mastercard Travelers Cheques................................................138 4.17 ATM Transactions....................................................................................................138 4.17.1 "Chained" Transactions................................................................................. 139 4.17.2 ATM Transaction Branding............................................................................139 4.18 ATM Access Fees..................................................................................................... 139 4.18.1 ATM Access Fees--Domestic Transactions................................................139 4.18.2 ATM Access Fees--Cross-border Transactions......................................... 139 4.18.3 ATM Access Fee Requirements.................................................................... 140

Transaction Field Specifications for ATM Access Fees.................................. 140 Non-discrimination Regarding ATM Access Fees............................................ 140 Notification of ATM Access Fee.......................................................................... 140 Cancellation of Transaction.................................................................................140 Sponsor Approval of Proposed Signage, Screen Display, and Receipt.......140 ATM Terminal Signage...........................................................................................141 ATM Terminal Screen Display.............................................................................. 141 ATM Transaction Receipts.................................................................................... 142 4.19 Merchandise Transactions at ATM Terminals................................................... 142 4.19.1 Approved Merchandise Categories.............................................................142 4.19.2 Screen Display Requirement for Merchandise Categories.................... 143 4.20 Shared Deposits--United States Region Only.................................................. 143 Variations and Additions by Region............................................................................. 144 Asia/Pacific Region..........................................................................................................144 4.1 Chip Transactions at Hybrid Terminals............................................................144 4.10 Purchase with Cash Back Transactions........................................................ 144

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