MasterCard Rules (PDF)

Merchants
5.5 Payment Facilitator Obligations
5.5.1 Sub-merchant Screening Procedures
Before entering into, extending, or renewing an agreement with a Sub-merchant,
a Payment Facilitator must verify that the entity is a bona fide business, has
sufficient safeguards in place to protect Cardholder and Transaction information
permitted by the Standards to be captured from unauthorized disclosure or use,
complies with applicable laws, and that each Transaction submitted by the
Sub-merchant will reflect bona fide business between the Sub-merchant and a
Cardholder.
In determining whether the entity is a bona fide business, the Payment >>
Facilitator must perform a credit check, background investigations, and
reference checks of the Sub-merchant, and a check for validity of the business
address and other information provided by the Sub-merchant. If the credit
check raises questions or does not provide sufficient information, the Payment
Facilitator also should conduct a credit check of:
1. the owner, if the entity is a sole proprietor;
2. the partners, if the entity is a partnership; or
3. the principal shareholders, if the entity is a corporation.
It is also recommended that the Payment Facilitator performs an inspection of >>
the entity’s premises or Web sites and records to ensure that it has the proper
facilities, equipment, inventory, agreements, and personnel required and if
necessary, license or permit and other capabilities to conduct business.
The Payment Facilitator must retain all records concerning the investigation
of any entity with which it has entered into a Sub-merchant agreement for a
minimum of two years after the date the agreement is terminated or expires.
5.5.2 MATCH Inquiry Required
Before entering into, extending, or renewing an agreement with a Sub-merchant,
the Payment Facilitator must request that its Acquirer make an inquiry to the
MasterCard Member Alert to Control (High-risk) Merchants (MATCH) system.
The Acquirer must ensure that the Payment Facilitator does not sponsor as a
Sub-merchant any entity listed on the MATCH system as having been terminated
for a reason described in section 11.5.1 of the Security Rules and Procedures
manual.
The Acquirer must add each Sub-merchant terminated for any such reason to the
MATCH system per section 11.2.2 of the Security Rules and Procedures manual.
5.5.3 Sub-merchant Agreement
Each Payment Facilitator must enter into a written agreement with each
Sub-merchant which sets forth the terms applicable to the Sub-merchant’s
acceptance of Cards and otherwise complies with this Rule 5.5.3.
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5-8 12 December 2012 • MasterCard Rules