MasterCard Rules (PDF)

Merchants
5.4 Use of a Payment Facilitator
a. Verification that a Sub-merchant is a bona fide business operation, as set
forth in Rule 5.5.1, except that the Acquirer itself must make a MATCH
system inquiry about a prospective Sub-merchant prior to the Payment
Facilitator entering into an agreement with the Sub-merchant; and
b. Retention of records concerning the investigation of any of its
Sub-merchants, provided that such records are provided to the Acquirer
immediately upon request; and
c. Payment to a Sub-merchant for Transactions by the Sub-merchant, as set
forth in Rule 5.5.4.4; and
d. Ensuring that a Sub-merchant is supplied with materials necessary to
effect Transactions as set forth in Rule 5.5.4.5; and
e. Monitoring a Sub-merchant’s Activity on an ongoing basis to deter fraud
or other wrongful activity, as set forth in Rule 5.5.4.6.
4. Neither the Payment Facilitator nor the Sub-merchant may require a
Cardholder to waive a right to dispute a transaction.
5. The Acquirer must ensure that all Sub-merchants are identified with the Card
acceptor business code (MCC) that most closely reflects the Sub-merchant’s
primary business, as set forth in the Quick Reference Booklet. The
Corporation shall have the ultimate authority to dictate the appropriate MCC
if any dispute shall arise. MCC 7995 must be assigned to any Sub-merchant
that sells gambling chips or other value usable for gambling, even if such
sales is a minimal part of the Sub-merchant’s business. (Alternatively,
multiple MCCs may be used as appropriate.)
6. The Acquirer must provide to the Corporation a quarterly Activity report for
each Sub-merchant of the Payment Facilitator that includes:
NOTE
a. Sub-merchant name and location as appears in DE 43 (Card Acceptor
Name/Location) of clearing records
b. Sub-merchant “doing business as” name or URL
c. Sub-merchant MCC(s)
d. Transaction sales count and amount for each MCC
e. Transaction chargeback count and amount for each MCC
An addition to this rule appears in Chapter 12, “Europe Region Rules.” >>
5.4.2 High-Risk Payment Facilitators
A Payment Facilitator that proposes to sponsor as Sub-merchants one or
more entities conducting business that may be described under any one of
the following MCCs or any entity that, as a Merchant, was reported under
the Excessive Chargeback Program is deemed by the Corporation to be a
“High-Risk Payment Facilitator”:
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MasterCard Rules • 12 December 2012 5-5