MasterCard Rules (PDF)

Europe Region Rules
3.10 Limitation of Liability of Cardholders for Unauthorized Use
3.8.4.1 Issuer Failure Rate (Substandard Performance)
An Issuer failure rate that exceeds one percent (1%) for Transactions for two
months in any six-month period is substandard performance. The Issuer failure
rate will not apply to an Issuer or its processor until:
1. After the fourth calendar month of operation; or
2. Upon processing five thousand (5,000) Transactions in a calendar month;
whichever occurs first.
3.8.4.2 Calculation of the Issuer Failure Rate
The Issuer failure rate is calculated according to the formula below:
The sum of the following ISO 8583 response codes:
1. 31 issuer signed off
2. 82 time out at Issuer EM
3. 96 system malfunction
divided by the total Transactions processed through the Issuer connection to
the Interchange System.
3.8.4.3 Assessments for Substandard Performance
An Issuer that fails to meet the Corporation’s performance standards may be
subject to the following assessments.
Occurrence Assessment
First occurrence USD 15,000
Second occurrence within the twelve (12) month
period following the first occurrence
Third and any subsequent occurrence within the
twelve (12) month period following the second
occurrence
USD 15,000
USD 20,000
After completion of a full calendar year without any violations, a subsequent
violation is counted as a first violation.
3.10 Limitation of Liability of Cardholders for Unauthorized
Use
This Rule applies with respect to Cards issued in EEA countries. Cards issued to
an entity other than a natural person are excluded, unless otherwise provided
by applicable law or the Cardholder agreement.
©1969–2012 MasterCard. Proprietary. All rights reserved.
MasterCard Rules • 12 December 2012 12-13