MasterCard Rules (PDF)

Cardholder-activated Terminal (CAT) Transactions
C.2.7 CAT Level 7: Transponder Transactions (CAT 7)
C.2.7 CAT Level 7: Transponder Transactions (CAT 7)
The following CVM requirements apply to CAT 7 devices:
1. CAT 7 devices must accept “No CVM” as the CVM.
2. CAT 7 devices must not accept signature or PIN (online or offline) as the
CVM.
The following authorization requirements apply to CAT 7 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 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 7 devices:
1. There is no maximum amount limit for Transactions at CAT 7 devices.
2. A CAT 7 device that also is a Hybrid POS Terminal is prohibited from
performing fallback procedures from chip to magnetic stripe.
3. CAT 7 devices may support AVS and CVC 2 validation.
4. There are no chargeback restrictions for Transactions at CAT 7 devices.
5. There is no card retention requirement for CAT 7 devices.
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MasterCard Rules • 12 December 2012 C-9