MasterCard Rules (PDF)

Chapter 2 Licensing and Licensed Activities
This chapter contains information about licensing and rights and obligations related to
Licensed Activity by Customers.
2.1 Purpose of License; Eligibility .................................................................................................. 2-1
2.1.1 Single European Payments Area License......................................................................... 2-1
2.2 License Application.................................................................................................................. 2-1
2.3 Area of Use .............................................................................................................................. 2-1
2.3.1 Extending or Otherwise Modifying the Area of Use ....................................................... 2-2
2.3.2 Central Acquiring—Europe Region Only ........................................................................ 2-4
2.3.3 Transfer of Cards to India Residents is Prohibited without a License.............................. 2-4
2.4 Special Conditions of Participation or License ......................................................................... 2-4
2.5 MasterCard Anti-Money Laundering Program .......................................................................... 2-5
2.6 Obligation to Issue Cards......................................................................................................... 2-5
2.7 Liability for Assigned ICAs and BINs ....................................................................................... 2-6
2.7.1 Settlement Liability for Debit Licensees........................................................................... 2-6
2.7.2 Settlement Liability for Type I TPPs that Sponsor Affiliates............................................. 2-6
2.8 Obligations of a Sponsor ......................................................................................................... 2-6
2.9 Name Change .......................................................................................................................... 2-6
2.10 Fees, Assessments, and Other Payment Obligations .............................................................. 2-7
2.10.1 Taxes and Other Charges .............................................................................................. 2-7
2.11 Sale or Change in Ownership or Control of Customer or Portfolio ....................................... 2-8
2.12 Suspension and Amendment of Participation or License or Both .......................................... 2-8
2.13 Rights, Liabilities, and Obligations of Terminated Customers ................................................ 2-9
2.14 Failure of a Principal or Association Customer to Discharge a Settlement Obligation........... 2-11
2.15 System Liquidity ................................................................................................................... 2-12
2.16 Loss Allocation Among Customers ....................................................................................... 2-13
2.17 Liability for Owned or Controlled Entities............................................................................ 2-13
2.18 Risk of Loss .......................................................................................................................... 2-14
Compliance Zones ....................................................................................................................... 2-15
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MasterCard Rules • 12 December 2012 2-i