MasterCard Rules (PDF)

United States Region Rules
3.10 Limitation of Liability of Cardholders for Unauthorized Use
Issuers may approve, on an individual basis, any Internet gambling Transaction
authorization requests identified with MCC 9754 (Gambling—Horse Racing,
Dog Racing) that involve a U.S. region Cardholder. In using MCC 9754, the
Acquirer asserts that the Transaction involves gambling activity deemed by the
Acquirer to be legal in the U.S. region and indemnifies the Corporation in
connection with all such gambling activity. Such indemnity applies regardless
of the Acquirer’s or the Merchant’s compliance with the Corporation’s Internet
Gambling Policy or the Standards.
3.10 Limitation of Liability of Cardholders for Unauthorized
Use
The following applies with respect to United States 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, except as set forth in paragraph 5 below) shall
not exceed:
a. USD 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 USD 50 or the amount of money, property, labor, or services obtained
by the unauthorized use before notification to the Issuer.
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 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 or agreement. If federal, state 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. Non-applicability. This Rule shall not apply:
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15-8 12 December 2012 • MasterCard Rules