MasterCard Rules (PDF)

United States Region Rules
1.5 Obligations, Rights and Responsibilities
1.5 Obligations, Rights and Responsibilities
1.5.2 Obligation to Participate
Rule 1.5.2 of Chapter 1, “Participation” is modified to include the following:
An Affiliate that is Sponsored by a Type I TPP may not also participate in
Activity as a Principal or Association.
2.6 Obligation to Issue Cards
Rule 2.6 of Chapter 2, “Licensing and Licensed Activities,” is modified to include
the following:
1. Any Customer that does not issue or have outstanding any cards of a
competing card program within the U.S. Region is not obligated to issue
Cards to customers in the U.S. Region before it may acquire Transactions
from Merchants located in the U.S. Region.
2. A Customer that is Licensed to acquire Transactions in the United States
that extends its Area of Use to acquire Transactions in Puerto Rico is not
required to issue Cards in Puerto Rico if its acquiring Activity in Puerto Rico
is limited to only the Transactions of Merchants located in Puerto Rico that
are also located and have headquarters in the United States, and with whom
the Customer has an existing acquiring relationship in the United States.
2.7 Liability for Assigned ICAs and BINs
2.7.1 Settlement Liability for Debit Licensees
A debit Licensee is granted a License limited to the issuance of Debit MasterCard
Cards. Notwithstanding the foregoing, a principal debit Licensee is not
responsible for the Debit MasterCard Card Program obligations of any affiliate
debit Licensee that it Sponsors if such an affiliate debit Licensee becomes
unable or unwilling to discharge its settlement obligations.
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates
Unless otherwise provided in the Standards, a Type I TPP is not responsible
for the Issuer Activity settlement obligations of an Affiliate that the Type I TPP
Sponsors should such an Affiliate be unable or unwilling to discharge its Issuer
Activity settlement obligations. The Corporation assumes no liability for any
settlement failure dispute that arises between a Type I TPP and an Affiliate
Sponsored by such Type I TPP.
©1969–2012 MasterCard. Proprietary. All rights reserved.
15-2 12 December 2012 • MasterCard Rules