Mastercard Rules

Mastercard Rules

13 December 2022

BM

Contents

Contents

Summary of changes, 13 December 2022........................................................................ 23

Summary of changes, 6 December 2022........................................................................... 24

Mastercard Standards.................................................................................................................... 34

Applicability of Rules in this Manual....................................................................................... 35

Chapter 1: The License and Participation...........................................................................37

1.1 Eligibility to be a Customer...........................................................................................................39 1.1.1 Principal or Affiliate...............................................................................................................39 1.1.2 Association.............................................................................................................................. 39 1.1.3 Digital Activity Customer..................................................................................................... 40 1.1.4 Payment Transfer Activity Customer................................................................................. 40

1.2 Mastercard Anti-Money Laundering and Sanctions Requirements....................................... 40 1.2.1 Anti-Money Laundering Requirements...............................................................................41 1.2.1.1 Monitoring of Suspicious Activity............................................................................... 42 1.2.2 Sanctions Requirements.......................................................................................................43

1.3 Satisfaction of Minimum Financial Requirements....................................................................44 1.4 Special Conditions of Participation, License or Activity...........................................................44 1.5 Interim Participation...................................................................................................................... 45 1.6 The License.......................................................................................................................................45

1.6.1 SEPA Licensing Program--Europe Region Only.................................................................45 1.7 Area of Use of the License.............................................................................................................46

1.7.1 Extending the Area of Use....................................................................................................46 1.7.2 Extension of Area of Use Programs....................................................................................46 1.7.3 Central Acquiring--Europe Region Only..............................................................................48 1.7.4 Transfer of Cards to India Residents is Prohibited without a License...........................49 1.8 The Digital Activity Agreement.................................................................................................... 49 1.9 Participation in Activity(ies) and Digital Activity.......................................................................49 1.9.1 Changing Customer Status................................................................................................. 49 1.9.2 Participation and License, Digital Activity Agreement or PTA Agreement Not Transferable.......................................................................................................................................49 1.9.3 Right to Sponsor Affiliates................................................................................................... 50 1.9.4 Change in Sponsorship of an Affiliate................................................................................50 1.9.5 Customer Name Change......................................................................................................50 1.9.6 The Sponsored Digital Activity Entity.................................................................................50

? 1969?2022 Mastercard. Proprietary. All rights reserved.

Mastercard Rules ? 13 December 2022

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1.10 Participation in Competing Networks...................................................................................... 50 1.10.1 Protection of the Corporation...........................................................................................51 1.10.2 Participation Restrictions...................................................................................................51 1.10.3 Exceptions to the Participation Restrictions...................................................................51

1.11 Portfolio Sale, Transfer, or Withdrawal.................................................................................... 53 1.12 Change of Control of Customer or Portfolio........................................................................... 54 1.13 Termination....................................................................................................................................54

1.13.1 Voluntary Termination........................................................................................................ 54 1.13.2 Termination by the Corporation........................................................................................55 1.13.3 Termination for Provision of Inaccurate Information.................................................... 57 1.13.4 Rights, Liabilities, and Obligations of a Terminated Customer................................... 57

Chapter 2: Standards and Conduct of Activity and Digital Activity................. 60

2.1 Standards.........................................................................................................................................61 2.1.1 Variances................................................................................................................................. 61 2.1.2 Failure to Comply with a Standard.....................................................................................61 2.1.3 Noncompliance Categories...................................................................................................62 2.1.4 Noncompliance Assessments...............................................................................................63 2.1.5 Certification............................................................................................................................65 2.1.6 Review Process........................................................................................................................65 2.1.7 Resolution of Review Request..............................................................................................65 2.1.8 Rules Applicable to Intracountry Transactions..................................................................66

2.2 Conduct of Activity and Digital Activity......................................................................................66 2.2.1 Customer Responsibilities.....................................................................................................66 2.2.2 Obligations of a Sponsor...................................................................................................... 67 2.2.3 Affiliates.................................................................................................................................. 68 2.2.4 Financial Soundness.............................................................................................................. 68 2.2.5 Mastercard Acquirers............................................................................................................ 68 2.2.6 Compliance..............................................................................................................................68 2.2.7 Information Security Program.............................................................................................69

2.3 Indemnity and Limitation of Liability.......................................................................................... 69 2.4 Choice of Laws................................................................................................................................ 71 2.5 Examination and Audit...................................................................................................................71

Chapter 3: Customer Obligations............................................................................................73

3.1 Obligation to Issue Mastercard Cards.........................................................................................75 3.2 Responsibility for Transactions.....................................................................................................75 3.3 Transaction Requirements.............................................................................................................76 3.4 Authorization Service.....................................................................................................................77 3.5 Non-discrimination--POS Transactions...................................................................................... 78 3.6 Non-discrimination--ATM and Bank Branch Terminal Transactions...................................... 78

? 1969?2022 Mastercard. Proprietary. All rights reserved.

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3.7 Integrity of Brand and Network................................................................................................... 78 3.8 Fees, Assessments, and Other Payment Obligations...............................................................79

3.8.1 Taxes and Other Charges..................................................................................................... 79 3.8.2 Maestro and Cirrus Card Fees and Reporting Procedures..............................................80 3.9 Obligation of Customer to Provide Information........................................................................80 3.10 Confidential Information of Customers................................................................................... 81 3.11 Use of Corporation Information by a Customer..................................................................... 82 3.12 Confidential Information of Mastercard.................................................................................. 82 3.12.1 Customer Evaluation of Mastercard Technology...........................................................83 3.13 Privacy and Data Protection...................................................................................................... 83 3.13.1 Processing of Personal Data for Purposes of Activity and Digital Activity............... 84 3.13.2 Data Subject Notice and Consent....................................................................................84 3.13.3 Data Subject Rights............................................................................................................ 85 3.13.4 Personal Data Accuracy and Data Minimization........................................................... 85 3.13.5 Data Transfers......................................................................................................................85 3.13.6 Sub-Processing.....................................................................................................................85 3.13.7 Returning or Destroying Personal Data...........................................................................86 3.13.8 Regional Variances and Additions.....................................................................................86 3.14 Quarterly Mastercard Report (QMR)........................................................................................86 3.14.1 Report Not Received............................................................................................................86 3.14.2 Erroneous or Incomplete Report....................................................................................... 87 3.14.3 Overpayment Claim............................................................................................................ 87 3.15 Cooperation...................................................................................................................................87 3.16 Issuer Reporting Requirement--EEA, Serbia, Gibraltar and United Kingdom....................87 3.17 BINs.................................................................................................................................................88 3.18 Recognized Currencies.................................................................................................................88 3.18.1 Prior Consent of the Corporation..................................................................................... 88 3.18.2 Communications and Marketing Materials.....................................................................89

Chapter 4: Use of the Marks....................................................................................................... 90

4.1 Right to Use the Marks...................................................................................................................91 4.1.1 Protection and Registration of the Marks......................................................................... 91 4.1.1.1 Registration of a Card Design.....................................................................................92 4.1.2 Misuse of a Mark.................................................................................................................... 92

4.2 Requirements for Use of a Mark...................................................................................................92 4.3 Review of Solicitations...................................................................................................................93 4.4 Signage System...............................................................................................................................93

4.4.1 Signage at a Merchant Location.........................................................................................94 4.4.2 ATM Terminal Signage...........................................................................................................94 4.5 Use of the Interlocking Circles Device..........................................................................................94 4.5.1 Use or Registration of Similar Logos, Designs, and Names............................................94 4.6 Use of Multiple Marks.....................................................................................................................95

? 1969?2022 Mastercard. Proprietary. All rights reserved.

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4.7 Particular Uses of a Mark.............................................................................................................. 95 4.7.1 Generic Use............................................................................................................................. 95 4.7.2 Use of Modifiers......................................................................................................................95 4.7.3 Use on Stationery...................................................................................................................95 4.7.4 Use on Non-Licensed Products or Services........................................................................96 4.7.5 Use or Registration of "Master," "Maestro," and "Cirrus" Terminology......................... 96 4.7.6 Use of a Word Mark in a Corporate, Business or Domain Name...................................96 4.7.7 Use of a Word Mark in Text.................................................................................................. 96 4.7.8 Program Names..................................................................................................................... 97 4.7.9 Use on Cards...........................................................................................................................97

4.8 Use of Marks on Maestro and Cirrus Cards................................................................................97 4.9 Use of Marks on Mastercard Cards............................................................................................. 97 4.10 Use of a Card Design in Merchant Advertising and Signage................................................ 98 4.11 Use of a Card Design in Issuer Advertising and Marketing Material................................... 98 4.12 Use of the Mastercard Card Design in Cardholder Statement Enclosures........................99 4.13 Use of the Brand Marks on Other Cards.................................................................................. 99 4.14 Use of EMVCo? Trademarks.......................................................................................................99

Chapter 5: Acquiring Activity....................................................................................................100

5.1 The Merchant and ATM Owner Agreements........................................................................... 102 5.1.1 Verify Bona Fide Business Operation; Government Controlled Merchants...............102 5.1.2 Required Merchant Agreement Terms............................................................................. 103 5.1.2.1 Gambling Merchants..................................................................................................103 5.1.3 Required ATM Owner Agreement Terms......................................................................... 104 5.1.4 Maintaining Information.....................................................................................................104 5.1.4.1 Location Administration Tool (LAT) Updates.........................................................105

5.2 Merchant and Submerchant Compliance with the Standards............................................ 105 5.2.1 Noncompliance Assessments............................................................................................ 106

5.3 Deferred Delivery Merchant........................................................................................................106 Regular Monitoring of DDMs....................................................................................................... 106 Information and Consent............................................................................................................. 106 Conditional Consent......................................................................................................................107 Request for DDM Information.....................................................................................................107

5.4 Acquirer Obligations to Merchants............................................................................................108 5.4.1 Payment for Transactions.................................................................................................. 108 5.4.2 Supplying Materials.............................................................................................................108 5.4.3 Provide Information.............................................................................................................108 5.4.4 Merchant Deposit Account--Canada Region Only.........................................................108

5.5 Merchant Location....................................................................................................................... 108 5.5.1 Disclosure of Merchant Name and Location...................................................................109 5.5.2 Merchant Location Compliance and Certification ........................................................110

5.6 Submerchant Location................................................................................................................ 110

? 1969?2022 Mastercard. Proprietary. All rights reserved.

Mastercard Rules ? 13 December 2022

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