Maestro Global Rules (PDF) - MasterCard

Europe Region
10.11 Customer Insolvency and Settlement Liability
The policy calls for the evaluation of a Customer’s initial and continuing
ability to avoid excessive risk to the other Customers Corporation. Within the
framework of this policy, specific criteria have been established to determine
the financial soundness of Customers and their Activities. Such criteria include
both objective standards such as the measurement of capital adequacy and
subjective standards, such as evaluating key management experience and ability
and the manner in which such business is conducted.
If the Customer or applicant does not fulfill the criteria mentioned above, the
granting or continuance of a License will be conditioned on compliance by
the Customer with special conditions, within the framework of the policy.
Examples of such special conditions are letters of credit, letters of guarantee
or pledge agreements.
For an applicant, a protective arrangement will need to be in place before it
can go live on Dual Message System.
If a Customer resists or excessively delays establishing a protective arrangement,
the Corporation has the authority to collect the collateral it deems necessary
through the settlement process in addition to the Customer’s settlement volumes.
Unless circumstances are such that the Corporation, in its sole discretion,
considers it necessary to collect the collateral without delay, it will not be
collected until at least three weeks after the Customer is first notified in writing
that it must comply with the initial request for collateral. Customers will be given
seven calendar days’ notice in writing before the collateral is actually collected.
The compliance of a Customer with the criteria relating to financial soundness
will be re-examined from time to time.
10.11.1 Restrictions that Prevent the Settlement of Financial
Obligations
If there are imposed laws or regulations, to which the Customer is subject,
which prevent the Customer from settling its financial obligations in accordance
with the Rules, the following shall apply:
1. the Customer must notify the Corporation immediately of the imposition of
such laws or regulations; and
2. the Customer must immediately take all possible steps to prevent the
creation of further financial obligations that it will be unable to meet.
Examples of such steps would be the recalling of issued Cards and the
issuance of Cards that do not cause such financial obligations.
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Maestro Global Rules • 9 November 2012 17-75