MasterCard Rules (PDF)

Cardholder-activated Terminal (CAT) Transactions
C.2.3 CAT Level 2: Self-Service Terminal (CAT 2)
2. CAT 1 devices may have offline capability. Chip Transactions less than
or equal to USD 100, or its local currency equivalent, may be authorized
offline by the EMV chip.
3. Limit-1 processing does not apply.
4. The MIP X-Code authorization response must be a decline. The Issuer is
liable for Transactions that are approved under acquirer MIP X-Code, up to
the MIP X-Code limits specified by the Corporation.
The following additionally apply to CAT 1 devices:
1. There is no maximum amount limit for Transactions authorized online by
the Issuer. The maximum amount limit for Transactions authorized offline
by the EMV chip is USD 100, or its local currency equivalent.
2. A CAT 1 Hybrid POS Terminal must be capable of performing fallback
procedures from chip to magnetic stripe, unless it is prohibited by a region.
3. CAT 1 devices may support Address Verification Service (AVS) and CVC
2 validation.
4. Chargeback rights apply to Transactions at CAT 1 devices under message
reason code 4808, and do not apply with respect to message reason codes
4837 and 4863.
5. Card retention at CAT 1 devices is not required; however, if the capability is
available, the Merchant may do so only at the Issuer’s specific direction and
in accordance with the procedures set forth in Chapter 5, “Card Recovery
and Return Standards,” of the Security Rules and Procedures manual.
C.2.3 CAT Level 2: Self-Service Terminal (CAT 2)
The following CVM requirements apply to CAT 2 devices:
1. CAT 2 devices must accept “No CVM” as the CVM.
2. CAT 2 devices must not accept signature or PIN (online or offline) as the
CVM.
The following authorization requirements apply to CAT 2 devices:
1. All magnetic stripe Transactions, regardless of amount, must be authorized
online by the issuer on a zero floor limit basis.
2. Chip Transactions must be authorized either online by the Issuer or for
Transactions less than or equal to USD 100 or its local currency equivalent,
may be authorized offline by the EMV chip.
3. Limit-1 processing does not apply.
4. The issuer is liable for Transactions that are approved under acquirer MIP
X-Code, up to the MIP X-Code limits specified by the Corporation.
The following additionally apply to CAT 2 devices:
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MasterCard Rules • 12 December 2012 C-3