MasterCard Rules (PDF)

7.2 Service Provider Categories
7.1.2 Third Party Processor
7.1.2.1 Type I
United States Region Rules
7.2 Service Provider Categories
Rule 7.1.2.1 of Chapter 7, “Service Providers” is modified to include the
following:
In addition to engaging in TPP Program Service, a Type I TPP in the U.S.
Region may Sponsor an Affiliate to engage in Issuer Activity. A Type I TPP
that Sponsors an Affiliate for such purpose must comply with (i) all Standards
applicable to a Type I TPP, (ii) subject to Rule 2.7.2, all Standards applicable
to a Principal Issuer, and (iii) such additional or alternative Standards and/or
other requirements that the Corporation may determine to be necessary or
appropriate from time to time.
7.1.2.3 Type III
In the U.S. Region, there are three TPP subcategories. The third TPP
subcategory is a Type III TPP. The Corporation determines, in its sole discretion,
if a TPP, in addition to being a Type I TPP or a Type II TPP, is also a Type III
TPP, based upon consideration of the following criteria:
1. Whether a Type I TPP performs acquiring Program Service for an Acquirer
in the U.S. Region;
2. Whether the TPP owns an equity stake in the Acquirer’s MasterCard activity;
3. Whether a joint venture, business combination, strategic alliance, or other
business formation is in relation to or in connection with MasterCard
business. For purposes of this rule, MasterCard business shall be defined
as any activity involving the use of any MasterCard programs, services,
products, systems, or other functions or of any of the Marks;
4. Whether, in the determination of the Corporation, the TPP is managing the
operations of an Acquirer’s Merchant acquiring program, which management
may include, but not limited to, any one or more of the following activities:
a. Receiving fees directly from the Merchant related to MasterCard activity;
b. Defining, or having the ability to define, the criteria employed in
screening of potential Merchants or otherwise managing the merchant
on-boarding process;
c. Specifying the information to be contained in a Merchant application,
the Merchant Agreement, or both; or
d. Determining Merchant pricing; and
5. Whether the TPP is a signatory to a Merchant Agreement.
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MasterCard Rules • 12 December 2012 15-13