MasterCard Rules (PDF)

South Asia/Middle East/Africa Region Rules
3.10 Limitation of Liability of Cardholders for Unauthorized Use
For information about the MasterCard Currency Conversion Assessment,
refer to the GCMS Reference Manual. For information about the MasterCard
Cross-border Assessment, refer to the MasterCard Consolidated Billing
System—SAMEA Region manual.
3.10 Limitation of Liability of Cardholders for Unauthorized
Use
The following applies with respect to SAMEA Region Cardholders.
1. Limitation on amount. Subject to the laws of the country within which a
Card is issued, 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)
a. shall not exceed USD 0 if the conditions set forth in paragraph 2, below,
have been met or,
b. shall be in accordance with the corresponding Cardholder agreement if
the conditions set forth in paragraph 2 have not been met.
2. Conditions to USD 0 liability. The liability limitations set forth in clause (a)
of paragraph 1, above, shall apply only if
a. the Cardholder has exercised vigilant care in safeguarding such Card
from risk of loss, theft, or unauthorized use;
b. the Cardholder immediately and without delay notifies the Issuer upon
discovery of the loss, theft, or unauthorized use;
c. the Cardholder has not reported two or more incidents of unauthorized
use to the Issuer in the immediately preceding 12-month period;
d. the account to which Transactions initiated with such Card are posted
is in good standing; and
e. the Cardholder has complied with the terms and conditions of the
corresponding Cardholder agreement.
3. Effect of other applicable law or agreement. If country 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;
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14-2 12 December 2012 • MasterCard Rules