MasterCard Rules (PDF)

Sales Transactions and Cash Disbursements
8.4 Requirements for Specific Transaction Types
For MasterCard PayPass Transaction identification requirements, see Rule B.2 in
Appendix B of this manual. For chargeback protection amount information, see
Appendix C of the Chargeback Guide.
NOTE
The phrases “tap the PayPass card or device” and “PayPass tap” refer to the
same series of actions: a Cardholder touching the MasterCard PayPass Card to a
PayPass POS Terminal, resulting in the PayPass POS Terminal reading the Card
data and then flashing a light and making a sound.
NOTE
Additions to this Rule appear in Chapter 11, “Canada Region Rules;” Chapter >>
13, "Latin America and the Caribbean Region Rules;" and Chapter 15, “United
States Region Rules.”
8.4.4.1 Processing MasterCard PayPass Transit Transactions
MasterCard PayPass transit Transactions are limited to specific MCCs and can be
pre-funded, real-time authorized, or post-authorized aggregated.
8.4.4.1.1 Pre-funded
A pre-funded MasterCard PayPass transit Transaction occurs when:
1. The Cardholder purchases value redeemable for future travel with a transit
Merchant, whereby the Merchant sends an Authorization Request/0100
message for the amount of value purchased; and
2. The Transaction is effected by use of the contactless interface of a
MasterCard PayPass Card.
The purchased value is held by the transit Merchant in an account linked to the
Cardholder’s MasterCard PayPass Card account. Any tap performed with the
MasterCard PayPass Card following the purchase of value will reduce the value
held with the transit Merchant, but will not result in a Transaction.
8.4.4.1.2 Real-time Authorized
A real-time authorized MasterCard PayPass transit Transaction occurs when the
transit Merchant sends an Authorization Request/0100 message each time a
Cardholder taps a MasterCard PayPass Card at the Merchant’s POS Terminal.
8.4.4.1.3 Post-authorized Aggregated
A post-authorized aggregated MasterCard PayPass transit Transaction occurs
when the transit Merchant’s Acquirer generates a First Presentment/1240
message combining one or more PayPass taps performed with one MasterCard
PayPass Card account number at one transit Merchant.
In order for the transit Merchant to receive chargeback protection, all of the
following must occur:
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MasterCard Rules • 12 December 2012 8-21