New Requirements for All Prepaid and Debit Cards

Change For The Better Business

Why change? Because implementing these changes will ease your burden when dealing with cardholders who have tried to use their debit and prepaid cards unsuccessfully in certain situations. It's better for your customers, too. Which, of course, is better for your business.

The new requirements are for partial approval and real-time reversals (full or partial) for all Debit MasterCard and Maestro branded programs (including Prepaid) and Account Balance Response for Prepaid transactions:

Partial Approvals—Merchants can systemically conduct split-tender purchases by allowing debit card issuers (including prepaid) to systemically approve a portion of the original transaction amount in the authorization request when the transaction amount exceeds the funds available on the card. The merchant can then systemically initiate split-tender processing and obtain the remainder of the purchase amount in another form of payment.

Balance Response—Prepaid issuers can transmit account balance information in an authorization response, cardholders will attempt fewer purchases that exceed their available balances, leading to fewer declines at the POS.

Authorization Reversal—Authorization reversals will free up debit cardholders' open to buy amounts by reducing issuer holds on available balances when transactions were not completed, therefore reducing the declines at the POS and the amount of cardholder complaints that are unpleasant for all parties involved.

MERCHANT RESPONSIBILITIES

  • Merchants responsible for maintaining their own POS software (i.e., via in house staff or third party vendors) must add the functionality to support processing partial approval responses, split tender transactions, the real time reversal transaction, and display and/or printing of account balance (if available).
  • Cashiers and other relevant customer facing staff must be trained in the new procedures for partial approval/split tender transactions, shown how and when to initiate a real time authorization reversal, and made familiar with display and/or printing of remaining account balance for the cardholders' benefit.
  • E-commerce merchants are encouraged but not required to offer (new update as of 1-4-10) at least one opportunity for partial approval, etc. per the schedule of MCCs and associated timeframes listed below.

The requirements originally announced in February 2008, apply to all US merchants within select card acceptor business codes/merchant category codes (MCCs) and will be effective in three phases beginning on May 1, 2010. Merchants not falling within these MCCs are encouraged to support the new transactions, but are not required to do so at this time.

For more detailed information, please contact your MasterCard representative.

MCCS EFFECTIVE MAY 1, 2010

5310

Discount Stores

5311

Department Stores

5411

Grocery Stores, Supermarkets

5499

Miscellaneous Food Stores — Convenience Stores, Markets, Specialty Stores and Vending Machines

5541

Service Stations (with or without Ancillary Services

5542

Fuel Dispenser, Automated

5812

Eating Places, Restaurants

5814

Fast Food Restaurants

5912

Drug Stores, Pharmacies

5942

Book Stores

5943

Office, School Supply and Stationery Stores

7829

Motion Picture/Video Tape Production/Distribution

7832

Motion Picture Theaters

7841

Video Entertainment Rental Stores

8011

Doctors — not classified elsewhere

8021

Dentists, Orthodontists

8099

Health Practitioners, Medical Services — not classified elsewhere

5111

Stationery, Office Supplies

5200

Home Supply Warehouse Stores

5331

Variety Stores

5399

Miscellaneous General Merchandise Stores

5732

Electronic Sales

5734

Computer Software Stores

5735

Record Shops

5921

Package Stores, Beer, Wine, and Liquor

5941

Sporting Goods Stores

5999

Miscellaneous and Specialty Retail Stores

8041

Chiropractors

8042

Optometrists, Ophthalmologists

8043

Opticians, Optical Goods, and Eyeglasses

4812

Telecommunication Equipment including Telephone Sales

4814

Telecommunication Services

5300

Wholesale Clubs

8062

Hospitals

MCCS EFFECTIVE NOVEMBER 1, 2010

4111

Transportation — Suburban and Local Commuter Passenger, including ferries.

4816

Computer Network/Information Services

4899

Cable, Satellite, and Other Pay Television and Radio Services

7996

Amusement Parks, Carnivals, Circuses, Fortune Tellers

7997

Country Club Membership

7999

Recreation services — not classified elsewhere

MCCS EFFECTIVE MAY 1, 2011

8999

Professional Services — not classified elsewhere

9399

Government Services — not classified elsewhere

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