MasterCard Rules (PDF)

Sales Transactions and Cash Disbursements
8.4 Requirements for Specific Transaction Types
The Merchant must provide a reasonable estimate of the cost of repairs and
obtain agreement from the Cardholder prior to processing the Transaction. The
Transaction must be Card-present, a CVM must be obtained, and the TID must
include a statement indicating that the estimated amount charged for repairs
will be adjusted upon completion of the repairs and submission of the invoice
for such repairs.
The final amount of the Transaction relating to the repairs may not exceed the
Merchant’s estimated amount by more than 15 percent (or less, as directed by
local ordinances). If the actual cost of repairs is less than the estimated amount,
the Merchant must credit the difference to the Cardholder by processing a
refund Transaction to the same Card account within 30 days.
8.4 Requirements for Specific Transaction Types
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals
As used in this Rule 8.4.1, the following terms have the meanings described:
• “PIN-capable Hybrid POS Terminal” means a Hybrid POS Terminal that
is capable at a minimum of performing offline PIN verification when a
PIN-preferring Chip Card is presented. It may also be capable of online PIN
verification and if attended, must accept signature.
• “PIN-preferring Chip Card” means a Chip Card that has been personalized
so that the offline PIN CVM option appears in the Card’s CVM list with a
higher priority than the signature option, indicating that PIN is preferred to
signature at any POS Terminal that supports PIN.
NOTE
Regional variations to these definitions appear in Chapter 15, “United States
Region Rules”.
To be valid, a chip Transaction or cash disbursement must occur at a Hybrid
POS Terminal and be authorized by the Issuer or the chip, resulting in the
generation of a unique Transaction Certificate (TC). The Acquirer must send the
EMV chip data in DE 55 (Integrated Circuit Card [ICC] System-Related Data) of
the Authorization Request/0100 or Financial Transaction Request/0200 message
and in DE 55 of the First Presentment/1240 message. A value of 2 or 6 must
also be present in position 1 of the three-digit service code in DE 35 (Track 2
Data) of the Authorization Request/0100 or Financial Transaction/0200 message.
A chip/PIN Transaction is a chip Transaction effected at a PIN-capable Hybrid
POS Terminal with a PIN-preferring Chip Card and completed with offline or
online PIN as the CVM. The Cardholder may retain control of the Card while a
chip/PIN Transaction is performed.
A Customer must comply with the Card and Hybrid POS Terminal requirements
set forth in the M/Chip Requirements manual and EMV chip specifications, and
in section 4.8 of the Security Rules and Procedures manual.
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MasterCard Rules • 12 December 2012 8-15