MasterCard Rules (PDF)

Latin America and the Caribbean Region Rules
8.1 Transaction Requirements
3. The decision as to whether any given Card design conforms to these
conditions is reserved to the Corporation’s staff.
8.1 Transaction Requirements >>
For the avoidance of doubt, Rule 8.1 of Chapter 8, “Sales Transactions and Cash
Disbursements” does not inhibit a Merchant’s ability to direct the routing of a
transaction conducted in Puerto Rico or U.S. Virgin Islands with a debit Card
that is issued in the United States Region, American Samoa, Guam, Northern
Mariana Islands, Puerto Rico or U.S. Virgin Islands to any debit payment
network enabled on the Card.
8.4 Requirements for Specific Transaction Types
8.4.1 Chip Transactions and Acceptance at Hybrid POS Terminals
Rule 8.4.1 of Chapter 8, “Sales Transactions and Cash Disbursements,” is
modified to include the following:
For purposes of these Rules, “EMV chip-capable” means the ability to become
“compliant”; and “EMV chip-compliant” means operating any chip device
including cards, ATMs, POS Terminals including electronic cash registers
(ECRs), PIN pads, and POS Terminals that are in accordance fully with the
Standards relative to EMV standards.
1. New Terminals. All new ATMs and POS Terminals must be EMV-compliant.
2. Critical Fraud Percentage. The Acquirer of a Merchant located in the Latin
America and Caribbean Region with a ratio of fraud and counterfeit volume
to Card sales volume that equals or exceeds the Standards must replace any
magnetic-stripe-only POS Terminal at such Merchant with an EMV-capable
POS Terminal.
3. Intraregional Chip Liability Shift. The liability for Latin America and
Caribbean intraregional counterfeit fraudulent Transactions in which one
Customer (either the Issuer or the Acquirer) is not yet EMV chip-compliant
is borne by the non-EMV chip-compliant Customer.
4. Incentive Interchange Rate. An incentive interchange rate applies to
intraregional international chip Transactions to:
a. Compensate the Issuers of Cards with an increased intraregional
interchange of ten basis points when the Card is used at a non-EMV
chip-compliant POS Terminal.
b. Compensate the Acquirers using EMV-compliant POS Terminals with a
reduced intraregional interchange of ten basis points when a non-EMV
chip-compliant Card is used at that POS Terminal.
5. Domestic Chip Liability Shifts. The liability for domestic counterfeit
fraudulent Transactions in which one Customer (either the Issuer or
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MasterCard Rules • 12 December 2012 13-5