Change For The Better 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.