MasterCard Rules (PDF)

Sales Transactions and Cash Disbursements
8.4 Requirements for Specific Transaction Types
8.4.1.2 Offline-only Hybrid POS Terminals at Merchants with No
Fixed Location
Acquirers may process a chip Transaction that takes place at the offline-only
Hybrid POS Terminal of a Merchant with no fixed location (for example, aboard
a plane, train or ship) although the Hybrid POS Terminal’s authorization request
is declined, if all the following conditions are satisfied:
1. The Hybrid POS Terminal has no online capability and does not perform
fallback procedures from chip to magnetic stripe.
2. The Hybrid POS Terminal prompted for PIN as the CVM and the EMV chip
provided offline verification of the PIN entered by the Cardholder.
3. The Hybrid POS Terminal recommended Transaction approval.
4. The Card declined the offline authorization request.
5. The Merchant is identified under one of the following MCCs:
a. MCC 4111 (Transportation—Suburban and Local Commuter Passenger,
including Ferries)
b. MCC 4112 (Passenger Railways)
c. MCC 5309 (Duty Free Stores)
6. The Acquirer provides in the First Presentment/1240 message:
a. The value of F (Offline Chip) in DE 22 (Point of Service Entry Mode),
subfield 7 (Card Data Input Mode).
b. The Application Authentication Cryptogram (AAC) in DE 55.
The Acquirer processes such declined Transactions at the risk of receiving
authorization-related chargebacks.
8.4.1.3 CVM Fallback
The following requirements apply with respect to Cardholder verification
method (CVM) fallback from PIN to signature on a chip Transaction.
1. When a PIN-preferring Chip Card is used at a PIN-capable Hybrid POS
Terminal, the Cardholder may be verified by signature if PIN verification
(offline or online) fails for any reason other than PIN decline by the Issuer or
by Stand-In, provided signature is identified as a permitted CVM during the
EMV Transaction process. PIN-capable Hybrid POS Terminals may support
the PIN override function as described in the EMV chip specifications.
2. CVM fallback Transactions must be authorized and identified as being
completed with signature as the CVM.
3. The Issuer is liable for lost, stolen and never-received-issue fraudulent CVM
fallback Transactions completed with authorization approval, provided
that the Merchant complied with the Card acceptance procedures (for
example, a CVM was used). The Acquirer is liable for lost, stolen and
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MasterCard Rules • 12 December 2012 8-17