MasterCard Rules (PDF)

Organization of this Chapter
Canada Region Rules
Organization of this Chapter
The Rules in this Chapter 11 are variances and additions to the “global” Rules
that apply in the Canada Region.
3.10 Limitation of Liability of Cardholders for Unauthorized
Use
The following applies with respect to Canada Region Cardholders:
1. Limitation on amount. The liability of a Cardholder for unauthorized use of
a Card (regardless of the type of account to which Transactions initiated
with such Card are posted) shall not exceed
a. CAD 0 if the conditions set forth in paragraph 2, below, have been
met, or
b. if the conditions set forth in paragraph 2 have not been met, the lesser
of CAD 50 or the amount of money, property, labor, or services obtained
by the unauthorized use before notification to the Issuer.
2. Conditions to CAD 0 liability. The liability limitations set forth in clause (i)
of paragraph 1, above, shall apply only if
a. the Cardholder has exercised reasonable care in safeguarding such Card
from risk of loss or theft;
b. the Cardholder has not reported two or more incidents of unauthorized
use to the Issuer in the immediately preceding 12-month period; and
c. the account to which Transactions initiated with such Card are posted
is in good standing.
3. Effect of other applicable law agreement. If federal, provincial or local law,
or an agreement between a Cardholder and the Issuer of a Card (regardless
of the type of account to which Transactions initiated with such Card are
posted) imposes lesser liability than that provided in this Rule, the lesser
liability shall govern.
4. Unauthorized use. For purposes of this Rule, “unauthorized use” means the
use of a Card (regardless of the type of account to which Transactions
initiated with such Card are posted) by a person other than the Cardholder
who does not have actual, implied, or apparent authority for such use, and
from which the Cardholder receives no benefit.
5. Nonapplicability. This Rule shall not apply to Cards issued
a. to an entity other than a natural person; or
b. primarily for business, commercial, or agricultural purposes.
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MasterCard Rules • 12 December 2012 11-1