Transaction Processing Rules 9 June 2015 Notices Notices Proprietary Rights The information contained in this document is proprietary and confidential to MasterCard International Incorporated, one or more of its affiliated entities (collectively “MasterCard”), or both. This material may not be duplicated, published, or disclosed, in whole or in part, without the prior written permission of MasterCard. Trademarks Trademark notices and symbols used in this document reflect the registration status of MasterCard trademarks in the United States. Please consult with the Customer Operations Services team or the MasterCard Law Department for the registration status of particular product, program, or service names outside the United States. All third-party product and service names are trademarks or registered trademarks of their respective owners. Disclaimer MasterCard makes no representations or warranties of any kind, express or implied, with respect to the contents of this document. 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MasterCard provides any translated document to its customers “AS IS” and makes no representations or warranties of any kind with respect to the translated document, including, but not limited to, its accuracy or reliability. In no event shall MasterCard be liable for any damages resulting from reliance on any translated document. The English version of any MasterCard document will take precedence over any translated version in any legal proceeding. Information Available Online MasterCard provides details about the standards used for this document—including times expressed, language use, and contact information—on the Publications Support page available on MasterCard Connect™. Go to Publications Support for centralized information. ©2013–2015 MasterCard. Proprietary. All rights reserved. Transaction Processing Rules • 9 June 2015 TPR 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. If a particular brand or brands is not mentioned in a Rule, then the Rule applies to all three brands. The Rules in this manual pertain to the processing of Transactions. As used herein, a Transaction means a transaction resulting from the use of a MasterCard, Maestro, or Cirrus Card, as the case may be. 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. Rules relating to… Apply to… MasterCard POS Transactions A POS Transaction conducted with a MasterCard Card. Maestro POS Transactions 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. ATM Transactions A Transaction conducted with a MasterCard, Maestro, or Cirrus Card at an ATM Terminal and routed to the Interchange System. Manual Cash Disbursement A cash withdrawal Transaction conducted at a Customer financial Transactions institution teller with: • A MasterCard Card, or • A Maestro or Cirrus Card at a PIN-based In-Branch Terminal and routed to the Interchange System. MasterCard Electronic A POS Transaction conducted with a MasterCard Electronic Card at Transactions a MasterCard Electronic Merchant. MasterCard Mobile Remote A POS Transaction performed by an enrolled consumer using a Payment (MMRP) Transactions 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. ©2013–2015 MasterCard. Proprietary. All rights reserved. Transaction Processing Rules • 9 June 2015 3 Applicability of Rules in this Manual Rules relating to… Apply to… Payment Transactions A Transaction that transfers funds to an Account. A Payment Transaction is not a credit that reverses a previous purchase. Includes MoneySend 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 Transaction Processing 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 variation 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. ©2013–2015 MasterCard. Proprietary. All rights reserved. Transaction Processing Rules • 9 June 2015 4 Summary of Changes, 9 June 2015 Summary of Changes, 9 June 2015 The below table reflects changes included in this update of the Transaction Processing Rules manual. For more information about changes to the Rules, see the Transaction Processing Rules Report in the “Rules and Policies” section of Publications on MasterCard Connect™. For more information, refer Description of Change to... Chapter 2—Authorization and Clearing Requirements Preauthorizations—MasterCard POS Transactions "Revised Standards for the Processing of Authorizations and Preauthorizations—Maestro POS Transactions Preauthorizations," Global Preauthorizations—ATM and Manual Cash Disbursement Operations Bulletin No. 12, 1 Transactions December 2014 Undefined Authorizations Final Authorizations Message Reason Code 4808 Chargeback Protection Period Multiple Authorizations Full and Partial Reversals Asia/Pacific Region: Preauthorizations—Maestro POS Transactions (title change only) Europe Region: Preauthorizations Preauthorizations—ATM and Manual Cash Disbursement Transactions Undefined Authorizations Final Authorizations Message Reason Code 4808 Chargeback Protection Period Full and Partial Reversals United States Region: Preauthorizations—Maestro POS Transactions (title change only) Full and Partial Reversals Revised authorization and preauthorization processing standards effective in all regions as of 14 October 2016. ©2013–2015 MasterCard. Proprietary. All rights reserved. Transaction Processing Rules • 9 June 2015 5 Summary of Changes, 9 June 2015 For more information, refer Description of Change to... Europe Region: "Revised Standards—Definition of Inter-European Transaction," Balance Inquiries Europe Region Operations Bulletin Added a reference to "inter-European" balance inquiries. No. 2, 2 February 2015 Multiple Clearing Messages “Revised Standards for Multiple Clearing Records from a Single Modified standards so that a dual message acquirer may link Approved Authorization,” Global multiple presentments to a single authorization message using Operations Bulletin No. 12, 1 Trace ID. The first presentment must contain a value of 1403 or December 2014 1404 in DE 25. Chapter 3—Acceptance Procedures Accepting a MasterCard Card "Revised Standards for Contactless Transactions," Global MasterCard Cardholder Verification Requirements Operations Bulletin No. 3, 2 Performing a Signature Comparison March 2015. CVM Not Required for Refund Transactions Maestro Cardholder Verification Requirements POS Transaction Receipt Requirements Revisions to contactless transaction processing requirements. Accepting a MasterCard Card "Discontinuation of Requirements to Print and Verify the Last Four Suspicious Cards Digits of the PAN on Signature Removed requirement to verify the last four digits of the PAN on Panels," Global Operations signature panels. Bulletin No. 12, 3 December 2013. United States Region: "Revised Standards for the CVC 2 Validation Program," Global Use of Card Validation Code (CVC) 2 Operations Bulletin