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Information about this Replacement
Replacement The April 2006 Authorization System Manual replaces your existing
manual.
What is in the new This new version reflects changes effective with Banknet Release 06.1.
version?
Please refer to:
• “Summary of Changes” for a comprehensive list of changes reflected in
this update.
• “Using this Manual” for a complete list of the contents of this manual.
Billing MasterCard will bill principal members for this document. Please refer to
the appropriate MasterCard Consolidated Billing System Manual for billing-
related information.
Questions? If you have questions about this manual, please contact the Customer
Operations Services team or your regional help desk. Please refer to
“Using this Manual” for more contact information.
MasterCard is Please take a moment to provide us with your feedback about the material
Listening… and usefulness of the Authorization System Manual using the following e-
mail address:
publications@mastercard.com
We continually strive to improve our publications. Your input will help us

accomplish our goal of providing you with the information you need.
Summary of Changes
Authorization System Manual, April 2006
Change Summary Description of Change Where to Look
MIP X-Code Limits The MIP X-Code Limits table was updated to show the Chapter 2
updates established X-Code limits for World MasterCard™ Cards and
Platinum MasterCard™ Cards.
Online authorization Information about online authorization messages and flows Chapter 5
message updates was updated.
Central Authorization With the elimination of bulk types SI001 (Sequential Chapter 8
Processing Service Response File) and SI002 (Sequential Audit File) and the Chapter 11
(CAPS) updates replacement of SI003 with RB28, CAPS information was
updated.
Account Balance This update includes changes to the Account Balance Chapter 9
Responses and Balance Responses and Balance Inquiries information.
Inquiries updates
Authorization Multiple MasterCard updated the AMCC service to allow all acquirers Chapter 9
Currency Conversion to submit authorization request messages containing any
(AMCC) service update valid MasterCard transaction currency. MasterCard will no
longer require acquirers to sign-up for the acquirer
Authorization Multiple Currency Conversion (AMCC) service
to process transactions in their local currencies.
Implementation of Partial Effective with Banknet Release 06.1, the Authorization Chapter 9
Approvals System will allow issuers to approve a portion of the
requested transaction amount by responding with the
approved amount and a new partial approval response code
in authorization response messages.
Implementation of Effective with Banknet Release 06.1, MasterCard introduced Chapter 9

Recurring Payment the new Recurring Payment Cancellation Service. This
Cancellation Service optional service allows issuers to specify criteria to block
recurring payment transactions identified in authorization
messages and clearing records.
Page 1 of 2
Change Summary Description of Change Where to Look
MasterCard-acquired Visa Information about the Market-specific Data Identifier (Visa- Chapter 9
Transactions update only) and the Prestigious Properties Indicator was added.
Purchase with Cash Back MasterCard enhanced Stand-In Processing to allow issuers to Chapter 9
Transactions for Debit choose Stand-In to process Purchase of Goods or Services
MasterCard Cards update with Cash Back transactions that are PIN-based, signature-
based, or both for Debit MasterCard® cards.
Authorization Parameter In the Global Parameters section of the Authorization Chapter 10

Summary Report Parameter Summary Report (SI737010-AA), a new RPCS
(SI737010-AA) update participant parameter field was added to support RPCS
participation.
Smart Card Transactions Effective with Banknet Release 06.1, the Authorization Chapter 12
update System now gives acquirers additional information about
chip cryptogram validation issuers and allows additional
types of chip transactions.
Additionally, effective 1 January 2006, all new acquirers that
choose to process smart card transactions must support Full
Grade Processing for smart card transactions.
Terminology change References to the Merchant Category Code (MCC) were Various chapters
changed to Card Acceptor Business Code/Merchant
Category Code (MCC).
Page 2 of 2
Authorization
System Manual
April 2006
Copyright The information contained in this manual is proprietary and
confidential to MasterCard International Incorporated (MasterCard)
and its members.
This material may not be duplicated, published, or disclosed, in

whole or in part, without the prior written permission of
MasterCard.
Trademarks Trademark notices and symbols used in this manual reflect the
registration status of MasterCard trademarks in the United States.
Please consult with the Customer Operations Services team or the
MasterCard Law Department for the registration status of particular
product, program, or service names outside the United States.
All third-party product and service names are trademarks or

registered trademarks of their respective owners.
Media This document is available:

• On MasterCard OnLine®
• On the MasterCard Electronic Library CD-ROM
• In printed format
• Translated into Spanish
• Translated into Portuguese
MasterCard International Incorporated

2200 MasterCard Boulevard
O’Fallon MO 63368-7263
USA
1-636-722-6100
www.mastercard.com
© 2006 MasterCard International Incorporated

Authorization System Manual • April 2006 Publication Code: AP
Table of Contents
Using this Manual

Purpose................................................................................................................... 1
Audience................................................................................................................. 1
Overview ................................................................................................................ 1
Excerpted Text ....................................................................................................... 3
Language Use ......................................................................................................... 3
Times Expressed..................................................................................................... 3
Revisions ................................................................................................................. 4
Related Information................................................................................................ 4
Related Forms......................................................................................................... 5
Support ................................................................................................................... 5
Member Relations Representative ................................................................... 6
Regional Representative................................................................................... 7
Chapter 1 System Overview

Definition of the MasterCard Authorization System...........................................1-1
MIP.................................................................................................................1-2
Banknet Network ..........................................................................................1-2
Acquirer Interfaces ........................................................................................1-2
Issuer Interfaces ............................................................................................1-2
Stand-In System Processing ..........................................................................1-3
Gateways .......................................................................................................1-3
Features of the System ........................................................................................1-4

Access to All Members 24 Hours a Day, 365 Days a Year..........................1-4
Fast and Cost Effective Authorization Processing........................................1-4
Interfaces to Support Non-MasterCard Card Processing .............................1-4
Backup to Primary Routing and Authorizing Paths.....................................1-5
Authorization Multiple Currency Conversion Capability.............................1-6
Support of Security Functions ......................................................................1-6
Reporting .......................................................................................................1-8

Authorization System Manual • April 2006 i
Table of Contents
Smart Card Technology.......................................................................................1-9

Business Benefits of Smart Card Technology ..............................................1-9
Functions Unique to Smart Card Technology..............................................1-9
Chapter 2 Basic Authorization Concepts

Participants in Authorization Processing ............................................................2-1
Cardholder.....................................................................................................2-1
Merchant........................................................................................................2-1
Acquirer .........................................................................................................2-2
Issuer .............................................................................................................2-2
Other Participants..........................................................................................2-2
Accessing the Authorization System...................................................................2-4

Acquirer Methods..........................................................................................2-4
Issuer Methods ..............................................................................................2-6
Authorization Responses.....................................................................................2-8
Approve.........................................................................................................2-9
Decline ..........................................................................................................2-9
Refer to Card Issuer ....................................................................................2-10
Capture Card ...............................................................................................2-10
Limit-1 Processing .............................................................................................2-11

Limit-1 Limits ...............................................................................................2-11
“Nth” Transaction ........................................................................................2-12
Stand-In System Tests .................................................................................2-12
Limit-1 Processing Flow..............................................................................2-12
Limit-1 Processing Results...........................................................................2-14
X-Code Processing ............................................................................................2-14

Acquirer Host X-Code Processing ..............................................................2-14
Rules for Acquirer Host X-Code Processing ..............................................2-15
Acquirer MIP X-Code Processing ...............................................................2-15
X-Code Processing of Non-MasterCard Card Programs ............................2-18

ii April 2006 • Authorization System Manual
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Chapter 3 MasterCard Authorization Message Flows

Basic Authorization Flow ....................................................................................3-1
Variations on the Basic Authorization Flow for MasterCard Cards ...................3-2

Authorization Processing Occurs at the Acquirer MIP ................................3-3
Issuer Is Online but the Transaction Cannot Follow the Primary Path ......3-3
Issuer is a CAPS Issuer..................................................................................3-5
Chapter 4 Acquirer and Issuer Responsibilities

Acquirer Responsibilities.....................................................................................4-1
Processing Authorization Requests...............................................................4-1
Assisting in Investigation of Counterfeits and Criminal Cases ....................4-5
Billing ............................................................................................................4-5
Issuer Responsibilities .........................................................................................4-6

Encoding and Validating the CVC 1 Value ..................................................4-6
Imprinting and Validating the CVC 2 Value ................................................4-7
Issuing and Validating PIN Data ..................................................................4-7
Call Referral Responses.................................................................................4-8
File Maintenance .........................................................................................4-10
Billing ..........................................................................................................4-10
Chapter 5 Online Authorization Messages

Message Types.....................................................................................................5-1
Using Authorization Messages ............................................................................5-2
Processing Authorization Transactions...............................................................5-2

Authorization Request/0100 and Authorization Request Response/0110
Messages........................................................................................................5-3
Authorization Advice/0120 and Authorization Advice Response/0130
Messages........................................................................................................5-3
Acquirer Response Acknowledgement/0180 Messages...............................5-6
Authorization Negative Acknowledgement/0190 Messages........................5-7
Processing Issuer File Update Messages ............................................................5-8

Authorization System Manual • April 2006 iii
Table of Contents
Processing Reversal Request/Advice Messages..................................................5-9

Acquirer Reversal Request/0400 and Acquirer Reversal Request
Response/0410 Messages..............................................................................5-9
Acquirer Reversal Advice/0420 and Reversal Advice Response/0430
Messages......................................................................................................5-10
Processing Administrative Advice Messages ....................................................5-11
Using Network Management Request Messages..............................................5-13

Standard Network Management/08xx Messages .......................................5-13
Retrieving Store-and-Forward (SAF) Messages (Issuers) ...........................5-15
Chapter 6 Stand-In Processing

Stand-In Processing Service ................................................................................6-1
How Stand-In Processing Works ........................................................................6-1

Range Blocks.................................................................................................6-2
Account Listings ............................................................................................6-2
Stand-In Processing Parameters....................................................................6-2
Stand-In Processing Security Services ..........................................................6-3
Decision Matrix .............................................................................................6-3
Stand-In Tests ......................................................................................................6-4

Range Blocks Test.........................................................................................6-5
Account File Test...........................................................................................6-6
Expiration Date Test .....................................................................................6-6
M/Chip Cryptogram Validation Test.............................................................6-7
PIN Verification Test .....................................................................................6-7
CVC 1 Test.....................................................................................................6-8
AAV Verification Test....................................................................................6-9
Merchant Suspicious Test .............................................................................6-9
Transaction Limits Test ...............................................................................6-10
Accumulative Limits Test ............................................................................6-17
Cash Disbursement Accumulator Test .......................................................6-18
Stand-In Response.......................................................................................6-18

iv April 2006 • Authorization System Manual
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Exceptions and Additions to the Stand-In Process ..........................................6-19

Online Transactions ....................................................................................6-19
Gold MasterCard Card Accounts ................................................................6-19
VIP Accounts ...............................................................................................6-20
CAPS Accounts ............................................................................................6-20
Chapter 7 Setting Stand-In Parameters: Online Issuer

Establishing Parameters.......................................................................................7-1
To Complete the Worksheet.........................................................................7-1
Default Values ...............................................................................................7-2
On Every Page ..............................................................................................7-2
New or Existing Account Ranges .......................................................................7-4
Important Dates...................................................................................................7-4
How MasterCard Uses this Information .......................................................7-4
When Changes are Effective.........................................................................7-4
Telephone Numbers............................................................................................7-5
How to Complete this Section......................................................................7-5
When Changes Are Effective ........................................................................7-5
Hours of Operation for Call Referral Center ......................................................7-6

How Stand-In Processing Uses this Information .........................................7-9
Noncompliance Assessments........................................................................7-9
When Changes Are Effective ......................................................................7-10
Holidays for Call Referral Center......................................................................7-10

How to Complete this Section....................................................................7-10
How Stand-In Processing Uses this Information .......................................7-11
Transaction Category Code Global Parameters................................................7-11


Authorization System Manual • April 2006 v
Table of Contents
Transaction Category Code Local Use Parameters...........................................7-13

Accumulative Limits ..........................................................................................7-15

Cash Disbursement Accumulative Limits..........................................................7-17

Decision Matrix..................................................................................................7-18
Range Blocking .................................................................................................7-20

Expanded Parameter Combinations .................................................................7-21

VIP Controls.......................................................................................................7-24


vi April 2006 • Authorization System Manual
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Chapter 8 Central Authorization Processing Service

Introduction to CAPS...........................................................................................8-1
Who Are CAPS Members? .............................................................................8-1
How Do CAPS Members Send Data to MasterCard?....................................8-1
When Does CAPS Apply Data to the Account File? ....................................8-1
What Data does MasterCard Provide for Members? ....................................8-2
CAPS Features......................................................................................................8-2
Sending and Retrieving CAPS Files via MasterCard File Express ......................8-4
When to Send the Sequential Account File .................................................8-4
Emergency Maintenance to the Account File ..............................................8-7
File Layouts..........................................................................................................8-9
Sequential Account File ................................................................................8-9
Completing the Stand-In Processing Worksheet..............................................8-12

To Complete the Worksheet.......................................................................8-13
Default Values .............................................................................................8-13
On Every Page ............................................................................................8-14
Important Dates.................................................................................................8-14
How MasterCard Uses this Information .....................................................8-14
When Changes are Effective.......................................................................8-15
Telephone Numbers..........................................................................................8-15
Hours of Operation for Call Referral Center ....................................................8-16

Noncompliance Assessments......................................................................8-19


Authorization System Manual • April 2006 vii
Table of Contents

Decision Matrix..................................................................................................8-22
Range Blocking .................................................................................................8-24


VIP Controls.......................................................................................................8-27
Chapter 9 Authorization Services Detail

Account Balance Response.................................................................................9-1
Account Management..........................................................................................9-2
Account Management System.......................................................................9-2
Account File ..................................................................................................9-2
Recurring Payment Cancellation Service (RPCS) .........................................9-3
Blocking Ranges of Accounts .......................................................................9-3
Address Verification Service................................................................................9-5

Participation Requirements ...........................................................................9-5
Indicating AVS Participation during Sign-in.................................................9-5
AVS Process...................................................................................................9-5
Address Key ..................................................................................................9-6
Issuer Procedures ........................................................................................9-10

viii April 2006 • Authorization System Manual
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Authorization Multiple Currency Conversion...................................................9-11

Using AMCC ................................................................................................9-11
Signing Up for AMCC..................................................................................9-11
Participating in AMCC.................................................................................9-11
Data Elements Used by AMCC ...................................................................9-12
AMCC Processing Logic ..............................................................................9-12
Acquirer Processing Logic ..........................................................................9-13
Issuer Processing Logic...............................................................................9-14
Examples of AMCC Processing...................................................................9-15
Balance Inquiries...............................................................................................9-23
ATM Balance Inquiries................................................................................9-23
Point-of-Sale (POS) Terminal Balance Inquiries........................................9-24
Card Level Support............................................................................................9-26
Card Validation Code 1 Verification in Stand-In Processing ...........................9-27

Assigning Multiple Sets of DES Keys to an Account Range......................9-27
Assigning the Same Set of DES Keys to an Account Range......................9-27
Reporting CVC 1 Verification in Stand-In Processing................................9-34
Card Validation Code 2 Verification .................................................................9-35

CVC 2...........................................................................................................9-35
Conditions for CVC 2 Verification ..............................................................9-35
Participation Requirements .........................................................................9-35
Authorization System Processing Flow Diagrams......................................9-37
Card Validation Code Verification for Emergency Card Replacements ..........9-43

How to Request CVC Verification for ECR Service....................................9-43
Use of CVC Keys.........................................................................................9-43
Cardholder-activated Terminals ........................................................................9-44

Types of CATs .............................................................................................9-44
Automated Dispensing Machines ...............................................................9-44
Self-service Terminals .................................................................................9-45
Limited Amount Terminals .........................................................................9-45
In-flight Commerce .....................................................................................9-46
Electronic Commerce Transactions ............................................................9-48
Transponder Transactions ..........................................................................9-48
Check Guarantee...............................................................................................9-49
Requirements for Authorization Request/0100 Messages..........................9-49

Authorization System Manual • April 2006 ix
Table of Contents
Requirements for Authorization Request Response/0110 Messages.........9-49
Country Level Authorization .............................................................................9-50

Process for Country Level Authorization ...................................................9-50
Electronic Commerce ........................................................................................9-51

Member Requirements ................................................................................9-51
Process for an Electronic Commerce Transaction .....................................9-51
Types of Electronic Commerce Transactions.............................................9-52
Flow of an Electronic Commerce Authorization Transaction ...................9-53
Expired Card Override ......................................................................................9-57

System Definition of an Expired Card........................................................9-57
Expired Card Tests ......................................................................................9-57
Fleet Card Transactions.....................................................................................9-62

Incentive Interchange Rates........................................................................9-62
Transmitting Fleet Card Data in Authorization Request/0100
Messages......................................................................................................9-62
Fleet Card Authorization Response ............................................................9-63
Initiating Fleet Card Support.......................................................................9-63
Global Automated Referral Service...................................................................9-64

Benefits of Using GARS ..............................................................................9-64
GARS Process ..............................................................................................9-64
Acquirer Use of GARS.................................................................................9-68
Issuer Use of GARS .....................................................................................9-72
Monitoring Call Referral Activity ................................................................9-75
To Request GARS or Change GARS Parameters ........................................9-75
M/Chip On-behalf Services...............................................................................9-76

Chip to Magnetic Stripe Conversion...........................................................9-76
M/Chip Cryptogram Pre-validation Service................................................9-77
M/Chip Cryptogram Validation in Stand-In Processing.............................9-77
Magnetic Stripe Compliance Program ..............................................................9-78

Participating in the Magnetic Stripe Compliance Program........................9-78
Requirements for Magnetic Stripe Compliance..........................................9-79
Risk of Not Participating .............................................................................9-80
Manual Telex Authorization Requests ..............................................................9-81

Telex Requests ............................................................................................9-81
Telex Responses..........................................................................................9-84

x April 2006 • Authorization System Manual
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Authorization Request Response................................................................9-85
MasterCard ATM Network.................................................................................9-87

Data Security ...............................................................................................9-87
ATM Locator ................................................................................................9-87
ATM Directory.............................................................................................9-88
Benefits........................................................................................................9-88
Supported Transactions ..............................................................................9-89
Interfaces to the MasterCard ATM Network...............................................9-89
For More Information..................................................................................9-90
MasterCard SecureCode ....................................................................................9-91

Universal Cardholder Authentication Field ................................................9-91
SecureCode Authentication Platforms ........................................................9-91
Licensing SecureCode Specifications..........................................................9-91
Accountholder Authentication Value .........................................................9-92
Comparison of Security Protocols ..............................................................9-94
MasterCard-acquired Visa Transactions............................................................9-95

Issuer Options .............................................................................................9-95
CPS Transactions .........................................................................................9-95
Indicators.....................................................................................................9-95
Retail Key Entry Program............................................................................9-97
Secure Electronic Commerce Verification Service .....................................9-98
Visa Commercial Card Inquiry....................................................................9-98
Visa CVV2....................................................................................................9-99
Visa Fleet Card ............................................................................................9-99
Member-defined Data ..................................................................................... 9-100

Structure of Member-defined Data ........................................................... 9-100
Merchant Advice Codes .................................................................................. 9-101

DE 48, Subelement 84 Values................................................................... 9-101
Common DE 39 Values............................................................................. 9-101
DE 48, Subelement 84 with DE 39 ........................................................... 9-102
Partial Approvals ............................................................................................. 9-103

Alternate Processing.................................................................................. 9-103
For More Information................................................................................ 9-103

Authorization System Manual • April 2006 xi
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Payment Transaction Authorization................................................................ 9-104

Person-to-Person Transactions ................................................................. 9-104
Payment Transaction Blocking ................................................................. 9-106
PIN Processing................................................................................................. 9-109

Acquirer Requirements ............................................................................. 9-109
Issuer Requirements.................................................................................. 9-110
Support for Both Acquiring and Issuing Processing ............................... 9-111
Authorization System Security Requirements........................................... 9-112
PIN Verification ......................................................................................... 9-118
PIN Verification in Stand-In Processing ................................................... 9-118
PIN Key Exchange and Processing Forms ............................................... 9-119
Portfolio Sales Support.................................................................................... 9-120

Full BIN Transfer....................................................................................... 9-120
Partial BIN Transfer................................................................................... 9-121
Fees............................................................................................................ 9-122
Promotion Code .............................................................................................. 9-123

Purpose of Using a Promotion Code ....................................................... 9-123
How the Promotion Code Service Works ................................................ 9-123
To Participate in the Promotion Code Service......................................... 9-123
Purchase of Goods or Services with Cash Back Transactions for Debit

MasterCard Cards............................................................................................. 9-124
To Participate ............................................................................................ 9-124
Proximity Chip Payments................................................................................ 9-125
Recurring Payments......................................................................................... 9-126

Indicating a Recurring Payment ............................................................... 9-126
Recurring Payment Cancellation Service........................................................ 9-127

Benefits of RPCS........................................................................................ 9-127
How RPCS Works...................................................................................... 9-127
Authorization Reports ............................................................................... 9-128
To Participate ............................................................................................ 9-128
RiskFinder ........................................................................................................ 9-129

Using RiskFinder ....................................................................................... 9-129

xii April 2006 • Authorization System Manual
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To Participate ............................................................................................ 9-129

Transaction Research Request ........................................................................ 9-130

Conducting a Transaction Research Request ........................................... 9-130
Using the MasterCard eService Transaction Research Tool .................... 9-130
Accessing the Transaction Research Tool ................................................ 9-131
Using the Transaction Research Request Form ....................................... 9-135
Understanding Fees for Transaction Research Requests ......................... 9-135
Travel Industries Premier Service ................................................................... 9-136

To Participate ............................................................................................ 9-136
Velocity Monitoring......................................................................................... 9-137

Types of Velocity Monitoring ................................................................... 9-137
Velocity Monitoring Reports ..................................................................... 9-137
Requesting AVM or MVM ......................................................................... 9-138
Chapter 10 Reports
Related Reports in Other Manuals....................................................................10-1
Presentation of Reports in this Manual ............................................................10-1
Report Header Information...............................................................................10-2
Authorization Summary Report (AB505010-AA) ..............................................10-3

Report Sample .............................................................................................10-4
Field Descriptions ..................................................................................... 10-11
Authorization Parameter Summary Report (SI737010-AA) ............................ 10-19

Report Sample ........................................................................................... 10-20
Authorization Summary by CAT Level Report (SI458010-AA)....................... 10-33

Report Sample ........................................................................................... 10-34
GARS Weekly Issuer Transaction Detail Report (GR122010-AA).................. 10-39

Report Sample ........................................................................................... 10-40

Authorization System Manual • April 2006 xiii
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GARS Weekly Acquirer Transaction Detail Report (GR122010-BB).............. 10-45

Report Sample ........................................................................................... 10-46
GARS Monthly Acquirer Response Report (GR128010-AA)........................... 10-51

Report Sample ........................................................................................... 10-52
GARS Monthly Acquirer Response Below Target Report (GR128010-BB) ... 10-55
Report Sample ........................................................................................... 10-56
GARS Monthly Issuer Call Referral Report (GR129010-AA)........................... 10-59

Report Sample ........................................................................................... 10-60
Daily Activity Report (SI441010-A) ................................................................. 10-63

Report Sample ........................................................................................... 10-64
Chapter 11 Testing
Member Testing.................................................................................................11-1
Who Must Test ............................................................................................11-1
How to Prepare for Testing........................................................................11-1
How to Perform Testing .............................................................................11-8
How to Begin Production Processing ........................................................11-8
CAPS Member Testing.......................................................................................11-9

When to Test ...............................................................................................11-9
How to Perform Testing ........................................................................... 11-10
How to Begin Processing ......................................................................... 11-11
Chapter 12 Smart Card Transactions

Overview ...........................................................................................................12-1
Acquirer Responsibilities...................................................................................12-1
Requirements for Merchants and Service Providers ..................................12-1

xiv April 2006 • Authorization System Manual
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Transaction Processing Categories .............................................................12-2

Cardholder-controlled Remote Devices .....................................................12-2
Hybrid Terminal Requirements ..................................................................12-3
Fallback Procedures ....................................................................................12-5
Terminal Cardholder Verification Method Policy ......................................12-6
Hybrid Terminal Risk Management............................................................12-6
Acquirer Processing Requirements.............................................................12-8
Issuer Responsibilities .......................................................................................12-8

Smart Card Requirements ...........................................................................12-9
Minimum Personalization Requirements....................................................12-9
Card Risk Management ............................................................................. 12-10
Velocity Check .......................................................................................... 12-10
Cumulative Amount Check....................................................................... 12-10
Issuer Processing Requirements ............................................................... 12-10
Cardholder Authentication Method ................................................................ 12-11

CAM Policy ................................................................................................ 12-11
Offline SDA CAM ...................................................................................... 12-12
Offline DDA CAM ..................................................................................... 12-12
Online CAM and Online Mutual Authentication...................................... 12-13
Cardholder Verification Method ..................................................................... 12-13

CVM Policy ................................................................................................ 12-14
Block/Unblock .......................................................................................... 12-14
PIN Block .................................................................................................. 12-14
Appendix A Non-MasterCard Authorization Message Flow

Authorization Flows for Visa Cards ................................................................... A-1
Flows for a Peer-to-Peer Visa Issuer—Transaction Does Not Qualify
for CPS.......................................................................................................... A-1
Flows for a Peer-to-Peer Visa Issuer—Transaction Qualifies for CPS ....... A-4
Flows for a Non–Peer-to-Peer Visa Issuer .................................................. A-7
Authorization Flows for Non-MasterCard, Non-Visa Cards ............................ A-10

Primary Path—Direct to Designated Endpoint ......................................... A-10
Secondary Path—X-Code Processing ........................................................ A-11

Authorization System Manual • April 2006 xv
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Appendix B File Layouts

In-flight Commerce Blocked Gaming File......................................................... B-1
Store-and-Forward Message Transmission File (T230) ..................................... B-3

xvi April 2006 • Authorization System Manual
Using this Manual
This chapter contains information that helps you understand and use this
document.
Purpose...................................................................................................................1
Audience.................................................................................................................1
Overview ................................................................................................................1
Excerpted Text .......................................................................................................3
Language Use .........................................................................................................3
Times Expressed.....................................................................................................3
Revisions .................................................................................................................4
Related Information................................................................................................4
Related Forms.........................................................................................................5
Support ...................................................................................................................5
Member Relations Representative ...................................................................6
Regional Representative...................................................................................7

Authorization System Manual • April 2006 i
Using this Manual
Purpose
Purpose
The MasterCard Authorization System Manual helps member personnel gain a
basic understanding of the structure of the MasterCard International
Incorporated (“MasterCard”) Authorization System and how to use it. This
manual describes requirements and procedures for member participation in
authorization services provided by MasterCard.
Audience
MasterCard provides this manual to members and their authorized agents.
Specifically, the following personnel should find this manual useful:
• Management staff—to gain a high-level understanding of authorization
processing and associated services, responsibilities, and processing
alternatives
• Security staff—to review authorization tools available for reducing
transaction risk levels
• Systems personnel—to become familiar with transaction data flows and the
MasterCard Authorization System
• Operations staff—to establish procedures for various aspects of the
authorization process, including authorization requests and special services
such as address verification and authorization report monitoring
• Merchant support staff—to gain an understanding of the Authorization
System as a whole and to develop procedures for merchants
Overview
The following table provides an overview of this manual.
Chapter Description
Table of Contents A list of the manual’s chapters and sections. Each entry
lists a chapter and page number.
Using this Manual A description of the manual’s purpose and its contents.
1 System Overview An overview of the MasterCard Authorization System,
providing a high-level definition of its features and related
systems and services.

Authorization System Manual • April 2006 1
Using this Manual
Overview
Chapter Description
2 Basic Authorization A discussion of participants in the Authorization System,
Concepts authorization responses, ways to access the Authorization
System, Limit-1 processing, and X-Code processing.
3 MasterCard Illustrations and descriptions of authorization message
Authorization Message flows for MasterCard® credit card programs.
Flows
4 Acquirer and Issuer A description of the authorization-related responsibilities
Responsibilities that acquirers and issuers must fulfill.
5 Online Authorization Procedures for online issuers and acquirers to perform
Messages authorization processing, including basic information
about the purpose and function of online messages.
6 Stand-In Processing A description of how Stand-In processing responds to
authorization requests on behalf of the issuer.
7 Setting Stand-In Procedures for online issuers to establish Stand-In
Parameters: Online parameters using the Stand-In Processing Worksheet.
Issuer
8 Central Authorization A description of the CAPS service and files it uses,
Processing Service procedures for sending and retrieving CAPS files, file
layouts, and procedures for establishing Stand-In
parameters using the Stand-In Processing Worksheet.
9 Authorization Services Detailed information about services provided by
Detail MasterCard that support and enhance the basic functions
of the Authorization System.
10 Reports Detailed description and samples of reports produced by
the MasterCard Authorization System.
11 Testing Procedures for testing the ability to participate in the
MasterCard Authorization System and testing value-added
services.
12 Smart Card Policies and standards for authorizing transactions
Transactions processed using smart cards.
A Non-MasterCard Illustrations and descriptions of Visa and other non-
Authorization Message MasterCard authorization message flows.
Flows
B File Layouts File layouts for the In-flight Commerce Blocked Gaming
File and the Store-and-Forward Message Transmission
File.
Forms Forms related to the MasterCard Authorization System.

2 April 2006 • Authorization System Manual
Using this Manual
Excerpted Text
Excerpted Text
At times, this document may include text excerpted from another document. A
note before the repeated text always identifies the source document. In such
cases, we included the repeated text solely for the reader’s convenience. The
original text in the source document always takes legal precedence.
Language Use
The spelling of English words in this manual follows the convention used for
U.S. English as defined in Merriam-Webster’s Collegiate Dictionary.
MasterCard is incorporated in the United States and publishes in the United
States. Therefore, this publication uses U.S. English spelling and grammar
rules.
An exception to the above spelling rule concerns the spelling of proper nouns.
In this case, we use the local English spelling.
Times Expressed
MasterCard is a global company with locations in many time zones. The
MasterCard operations and business centers are in the United States. The
operations center is in St. Louis, Missouri, and the business center is in
Purchase, New York.
For operational purposes, MasterCard refers to time frames in this manual as

either “St. Louis time” or “New York time.” Coordinated Universal Time (UTC)
is the basis for measuring time throughout the world. You can use the
following table to convert any time used in this manual into the correct time in
another zone:
St. Louis, Purchase, New York

Missouri USA USA UTC
Central Time Eastern Time
Standard time 09:00 10:00 15:00
(last Sunday in October to the
first Sunday in April a)
Daylight saving time 09:00 10:00 14:00
(first Sunday in April to the last
Sunday in October)
a For Central European Time, the last Sunday in October to the last Sunday in March.

Using this Manual
Revisions
Revisions
MasterCard periodically will issue revisions to this document as we implement
enhancements and changes, or as corrections are required.
With each revision, we include a “Summary of Changes” describing how the

text changed. Revision markers (vertical lines in the right margin) indicate
where the text changed. The month and year of the revision appear at the
right of each revision marker.
Occasionally, we may publish revisions or additions to this document in a

Global Operations Bulletin or other bulletin. Revisions announced in another
publication, such as a bulletin, are effective as of the date indicated in that
publication, regardless of when the changes are published in this manual.
Related Information
The following documents and resources provide information related to the
subjects discussed in this manual. Please refer to the Quick Reference Booklet
for descriptions of these documents.
• Account Management User Manual

• Bylaws and Rules
• Chargeback Guide
• Customer Interface Specification
• Data Communications Manual
• EMV2000, Integrated Circuit Card Specification for Payment Systems,
Version 4.0, December 2000
• Interchange Compliance Manual
• MasterCard Consolidated Billing System Manual
• MasterCard Credit Authorization Simulator
• MasterCard File Express Client Users’ Guide
• MasterCard File Express Scheduler Users’ Guide
• MasterCard Interface Processor Member Manual
• SecureCode Member Enrollment and Implementation Guide
• MDS Online Specifications
• Member Information Manual

Using this Manual
Related Forms
• Security Rules and Procedures

• Settlement Manual
Members that use the Cirrus® service and logo or that process online debit
transactions should refer to the debit processing manuals recommended by the
Customer Operations Services team.
For definitions of key terms used in this document, please refer to the
MasterCard Dictionary on the Member Publications home page (on
MasterCard OnLine® and the MasterCard Electronic Library CD-ROM).
To order MasterCard manuals, please use the Ordering Publications service on

MasterCard OnLine®, or contact the Customer Operations Services team.
Related Forms
Forms referenced in the Authorization System Manual are provided at the end
of this manual. In addition, forms are available in the Business Forms section
of MasterCard OnLine®.
Support
Please address your questions to the Customer Operations Services team as
follows:
Phone: 1-800-999-0363 or 1-636-722-6176
1-636-722-6292 (Spanish language support)
Fax: 1-636-722-7192
E-mail: Canada, Caribbean, Latin customer_support@mastercard.com

America, South Asia/Middle
East/Africa, and U.S.
Asia/Pacific:
Australia and New member_operations@mastercard.com

Zealand
China, Hong Kong, and helpdesk.gc@mastercard.com

Taiwan
South East Asia helpdesk.singapore@mastercard.com

Using this Manual
Support
Japan/Guam helpdesk.tokyo@mastercard.com
Korea korea_helpdesk@mastercard.com
Europe css@mastercard.com
Spanish language support lagroup@mastercard.com
Vendor Relations, all regions vendor.program@mastercard.com
Address: MasterCard International Incorporated

Customer Operations Services
USA
Telex: 434800 answerback: 434800 ITAC UI
Member Relations Representative

Member Relations representatives assist U.S. members with marketing
inquiries. They interpret member requests and requirements, analyze them,
and if approved, monitor their progress through the various MasterCard
departments. This does not cover support for day-to-day operational
problems, which the Customer Operations Services team addresses.
For the name of your U.S. Member Relations representative, contact your local
Member Relations office:
Atlanta 1-678-459-9000
Chicago 1-847-375-4000
Purchase 1-914-249-2000
San Francisco 1-925-866-7700

Using this Manual
Support
Regional Representative
The regional representatives work out of the regional offices. Their role is to
serve as intermediaries between the members and other departments in
MasterCard. Members can inquire and receive responses in their own
languages and during their offices; hours of operation.
For the name of the regional office serving your area, call the Customer
Operations Services team at:
Phone: 1-800-999-0363 or 1-636-722-6176
1-636-722-6292 (Spanish language support)

1 System Overview
This chapter provides basic information about the MasterCard Authorization
System: what it is, what it does, and whom it serves. The chapter highlights
features of the Authorization System that contribute to its flexibility, usefulness,
and adaptability to member needs. It also directs you to additional sources of
information regarding specific topics related to authorization.
Definition of the MasterCard Authorization System...........................................1-1

MIP.................................................................................................................1-2
Banknet Network ..........................................................................................1-2
Acquirer Interfaces ........................................................................................1-2
Issuer Interfaces ............................................................................................1-2
Stand-In System Processing ..........................................................................1-3
Gateways .......................................................................................................1-3
Features of the System ........................................................................................1-4

Access to All Members 24 Hours a Day, 365 Days a Year..........................1-4
Fast and Cost Effective Authorization Processing........................................1-4
Interfaces to Support Non-MasterCard Card Processing .............................1-4
Backup to Primary Routing and Authorizing Paths.....................................1-5
Authorization Multiple Currency Conversion Capability.............................1-6
Support of Security Functions ......................................................................1-6
Account Management System ................................................................1-6
Address Verification Service ...................................................................1-6
Card Validation Code Verification..........................................................1-7
Global Automated Referral Service (GARS)...........................................1-7
M/Chip Cryptogram Pre-validation Service ...........................................1-7
M/Chip Cryptogram Validation in Stand-In Processing ........................1-7
MasterCard SecureCode Accountholder Authentication Value
(AAV) Verification...................................................................................1-8
MasterCard SecureCode Dynamic AAV Verification in Stand-In
Processing ...............................................................................................1-8
PIN Verification.......................................................................................1-8
Reporting .......................................................................................................1-8
Smart Card Technology.......................................................................................1-9

Business Benefits of Smart Card Technology ..............................................1-9
Functions Unique to Smart Card Technology..............................................1-9

Authorization System Manual • April 2006 1-i
System Overview
Definition of the MasterCard Authorization System

The MasterCard Authorization System is an international message processing
system that serves all MasterCard principal, affiliate, and associate members:
large and small, automated and non-automated. The system transmits
authorization validation data among issuers, acquirers, and points of
interaction.
The MasterCard Authorization System refers to both hardware (the physical

communications lines of the Banknet® telecommunications network and
MasterCard interface processors [MIPs]) and software (the Banknet
authorization application). For information about Banknet components and
interfaces, see the descriptions following Figure 1.1. For information about
Financial Transaction/02XX messages and the MasterCard Debit Switch®
(MDS), see the MDS Online Specifications manual.
Figure 1.1—MasterCard Authorization System

Gateways
MIP
Acquirer Issuer
Banknet
Interfaces Interfaces
Network
MIP MIP
MIP
Stand-In
Note MasterCard reserves the right to record, store, and use all data transmitted via
the MasterCard Authorization System in online electronic transactions, subject
to MasterCard privacy and security compliance policies and applicable laws and
regulations, without further notice.

Authorization System Manual • April 2006 1-1
System Overview
MIP
The MasterCard interface processor (MIP) is a front-end communications
processor placed on-site at a MasterCard member’s facility or at a processor or
hub site. It provides access to the Banknet® telecommunications network.
MIPs provide access to all MasterCard electronic funds transfer (EFT) products
and to a wide variety of other EFT services via MasterCard gateways. MIP
software supports issuing and acquiring functions, including routing
MasterCard transactions to issuers, acquirers, and Stand-In System processing
and switching non-MasterCard transactions to appropriate destinations via the
gateways.
Banknet Network
The Banknet network is the MasterCard worldwide packet-switching network.
It is the primary data transport communications facility that links all MasterCard
members and MasterCard data processing centers.
Acquirer Interfaces
Most acquirers access the MasterCard Authorization System via the online
method, through connectivity between the acquirer host and a MIP.
MasterCard offers other interfaces to acquirers that do not have online

connectivity. MasterCard converts messages sent through these other
interfaces into online messages.
See chapter 2 for details about these access methods.
Issuer Interfaces
Most issuers access the MasterCard Authorization System online, through
connectivity between the issuer host and a MIP.
MasterCard also performs authorization processing on behalf of issuers that do

not have online connectivity, through the Central Authorization Processing
Service (CAPS).
See chapter 2 for more information about online access and CAPS processing.

1-2 April 2006 • Authorization System Manual
System Overview
Stand-In System Processing

The Stand-In host contains the issuer information necessary to perform
authorization processing for online issuers that are unavailable or that cannot
be reached, and for all CAPS members. The Stand-In System also performs the
following functions:
• Processes file maintenance to the Account File
• Processes network management messages for online members (see chapter
5)
• Generates Authorization Advice/0120 (store-and-forward) messages to
advise online issuers of authorizations processed on their behalf
Gateways
The Banknet authorization application has interfaces called gateways that
permit processing between the Banknet network and other networks, as
shown in Figure 1.2.
Figure 1.2—Authorization Interfaces
Credit/Debit
Processors
Visa
MasterCard/ American Express
Cirrus ATM Diners Club
Network Carte Blanche
JCB
Check Guarantee
Banknet
Network
Acquirer MIP Regional

Networks
Maestro
Network
Bankcard
Associations

System Overview
Features of the System

To support members, MasterCard developed, and continues to enhance, the
Authorization System to meet members’ current and future needs. The
Authorization System provides the following features:
• Access to all members 24 hours a day, 365 days a year
• Fast and cost-effective authorization processing
• Interfaces to support non-MasterCard card processing
• Backup to primary routing and authorizing paths
• Multiple currency conversion capability
• Support of security functions
• Reporting
Access to All Members 24 Hours a Day, 365 Days a Year

The MasterCard Authorization System operates on a continuous basis, ensuring
that cardholders can use a MasterCard card program anytime and that acquirers
and issuers always have access to MasterCard authorization processing
facilities.
Fast and Cost Effective Authorization Processing

The structure of the Banknet network enhances fast and cost-effective
processing by allowing transactions to travel the shortest route to their
destinations. The network’s design consists of redundant paths guaranteeing
that there are always two or more paths to a given destination. If for some
reason part of the network is down, this multiple routing structure of the
Banknet network allows the transaction to continue to travel the next shortest
route, eliminating congestion on the network.
Interfaces to Support Non-MasterCard Card Processing

The Authorization System supports processing of the following types of cards:
• American Express
• Diners Club
• JCB
• Private label cards

System Overview
• Proprietary cards
• Visa
Acquirers, therefore, can process a wide variety of card brands via their access
to the MasterCard Banknet network.
Backup to Primary Routing and Authorizing Paths

At times, members may experience internal communication problems,
scheduled down times, or network problems. The MasterCard Authorization
System provides backup authorization alternatives ensuring that an
authorization response occurs for every authorization transaction. Routing and
authorizing alternatives include the following:
• The network routes transactions via multiple paths, decreasing the impact of
trouble spots on the network.
• Stand-In processing uses issuer-established parameters to process
authorization transactions at the St. Louis Operations Center (Central Site)
on behalf of online issuers that are unavailable or cannot be reached.
• X-Code processing processes authorization transactions at the MasterCard
interface processor (MIP) or at the acquirer’s host for transactions that
cannot travel beyond that point.
MasterCard also provides routing and authorization alternatives that members

select ahead of time to enhance their productivity and the usefulness of the
Authorization System to them. These alternatives include the following:
• Limit-1 processing allows issuers to establish parameters by transaction
category, instructing MasterCard to process on behalf of the issuer without
forwarding the transaction.
• Floor limit values allow the merchant to authorize certain transactions at the
point of interaction without requesting authorization from the issuer. For a
list of current floor limit values, see the Quick Reference Booklet.
• Special routing gives issuers the option of having authorization requests for
cards within a particular bank identification number (BIN) range routed
according to the parameters and endpoint established for some other BIN.
For example, after acquiring a portfolio, an issuer can request special
routing to ensure that authorization requests for the cards in the new
portfolio are processed using the Stand-In limits, Limit-1 parameters, and
established endpoint for the issuer’s other BIN(s).

System Overview
Authorization Multiple Currency Conversion Capability

Authorization Multiple Currency Conversion (AMCC) is an optional service that
allows issuers and acquirers to process authorization transactions in their local
currency. See chapter 9 for details about AMCC.
Support of Security Functions

The following services are used in conjunction with authorization processing
to minimize risk:
• Account Management System (AMS)
• Address Verification Service (AVS)
• Card validation code (CVC) verification
• Global Automated Referral Service (GARS)
• M/Chip Cryptogram Pre-validation Service
• M/Chip Cryptogram Validation in Stand-In Processing
• MasterCard® SecureCode™ Accountholder Authentication Value (AAV)
Verification
• MasterCard® SecureCode™ Dynamic AAV Verification in Stand-In
Processing
• Personal Identification Number (PIN) verification
Account Management System

AMS provides protection at the account number level against unauthorized
card use. AMS collects and distributes restricted account listings to help
acquirers avoid authorizing transactions involving restricted cards. In addition
to providing electronic and paper listings to acquirers, AMS sends account
information to acquirer MIPs. AMS listings are also considered by the Account
File to enhance the security of Limit-1, X-Code, and Stand-In authorization
processing. See the Account Management User Manual for more information
about AMS.
Address Verification Service

AVS reduces the risk of non–face-to-face transactions through validation of the
cardholder’s billing address. AVS supports transmission of address data,
allowing the user to compare the billing address requested for the transaction
with the billing address on file for the cardholder. See chapter 9 for details
about AVS.

System Overview
Card Validation Code Verification

CVC 1 is a code algorithmically derived by the issuer and encoded in the
magnetic stripe. This code helps the issuer determine if the card is genuine or
counterfeit.
CVC 2 is a three-digit code algorithmically derived by the issuer and indent

printed on the signature panel to the right of the account number.
See chapter 9 for details about both CVC 1 and CVC 2 participation.
Global Automated Referral Service (GARS)

GARS supports issuer call referrals by providing the acquirer with a single
phone number to respond to any call referral. This increases the completion
rate of call referrals issued. See chapter 9 for more information about GARS.
M/Chip Cryptogram Pre-validation Service

The M/Chip Cryptogram Pre-validation service is for issuers that use the
M/Chip Select 2.0, M/Chip Lite 2.1, M/Chip 4.0 (EMV96 and EMV2000 session
key derivations), and EMV CCD-compliant chip cards.
This service validates the Authorization Request Cryptogram (ARQC) and

generates the Authorization Response Cryptogram (ARPC) on behalf of an
issuer. See chapter 9 for more information about this service.
M/Chip Cryptogram Validation in Stand-In Processing

M/Chip Cryptogram Validation in Stand-In Processing is available for issuers
that use the M/Chip Select 2.0, M/Chip Lite 2.1, M/Chip 4.0 (EMV96 and
EMV2000 session key derivations) and EMV CCD-compliant chip cards.
The M/Chip Cryptogram Validation in Stand-In Processing on-behalf service

supports issuers that process chip transactions on an ongoing basis, including
the validation of the authorization request cryptogram (ARQC) and generation
of the authorization response cryptogram (ARPC) on their hosts when the
issuer is signed out, the transaction cannot be delivered to the issuer, or the
issuer timed out. See chapter 9 for more information about using M/Chip
Cryptogram Validation in Stand-In Processing.

System Overview
MasterCard SecureCode Accountholder Authentication Value

(AAV) Verification
MasterCard offers AAV verification service on every authorization transaction
that contains the Universal Cardholder Authentication Field (UCAF) data
regardless of whether the issuer’s host system is available or unavailable to
respond to the Authorization Request/0100 message. See chapter 9 for more
information about this service.

Processing
MasterCard offers AAV verification service for authorization transactions
processed by the Stand-In System that contain AAV data in DE 48 (Additional
Data—Private Use), subelement 43 (Universal Cardholder Authentication Field
[UCAF]) of the Authorization Request/0100 message.
Issuers may request that Stand-In System processing only perform the AAV
verification test when the issuer’s host system is unavailable to respond to the
Authorization Request/0100 message containing AAV data. See chapter 9 for
more information about this service.
PIN Verification
PIN is a proven technology for authenticating the identity of the cardholder.
MasterCard provides an optional PIN verification service for all purchase
transactions that contain a PIN. A PIN Verification in Stand-In System
processing service is also available. See chapter 9 for more information about
PIN verification services.
Reporting
MasterCard produces a variety of authorization-related reports that display
member authorization activity. These reports help members plan and manage
their authorization process. See chapter 10 for information about reports.

System Overview
Smart Card Technology
Smart Card Technology

Smart card technology offers substantial benefits and unique transaction
features. Smart cards offer a secure means to authenticate both the card and
the cardholder.
Business Benefits of Smart Card Technology

Smart card technology offers four major business benefits to the payment
business:
• Reduces fraud—both counterfeit and “lost, stolen, never received” fraud
• Enhances credit control
• Reduces operational costs
• Provides a platform for added-value opportunities
Functions Unique to Smart Card Technology

Smart cards offer unique transaction features, such as:
Fully offline—Through card and terminal interaction, a smart card transaction

may take place in a fully offline mode
Offline personal identification number (PIN)—Depending on product rules and

thus smart card personalization and terminal capabilities, the PIN may be
checked offline
Offline and Online CAM—Allows verification if a smart card is genuine
Control of offline spending—Allows a method of controlling the maximum

number of consecutive offline transactions, maximum cumulative amount, and
risk assessment of the transaction

2 Basic Authorization Concepts
This chapter presents basic and alternative authorization concepts used by the
MasterCard Authorization System.
Participants in Authorization Processing ............................................................2-1

Cardholder.....................................................................................................2-1
Merchant........................................................................................................2-1
Acquirer .........................................................................................................2-2
Issuer .............................................................................................................2-2
Other Participants..........................................................................................2-2
Accessing the Authorization System...................................................................2-4

Acquirer Methods..........................................................................................2-4
Online Host-to-MIP Access.....................................................................2-5
Manual Telex Access ..............................................................................2-6
Issuer Methods ..............................................................................................2-6
Online Host-to-MIP Access.....................................................................2-6
CAPS ........................................................................................................2-8
Authorization Responses.....................................................................................2-8
Approve.........................................................................................................2-9
Decline ..........................................................................................................2-9
Refer to Card Issuer ....................................................................................2-10
Capture Card ...............................................................................................2-10

Limit-1 Limits ...............................................................................................2-11
“Nth” Transaction ........................................................................................2-12
Stand-In System Tests .................................................................................2-12
Limit-1 Processing Flow..............................................................................2-12
Limit-1 Processing Results...........................................................................2-14

Basic Authorization Concepts
X-Code Processing ............................................................................................2-14

Acquirer Host X-Code Processing ..............................................................2-14
Rules for Acquirer Host X-Code Processing ..............................................2-15
Acquirer MIP X-Code Processing ...............................................................2-15
MIP X-Code Limits ................................................................................2-17
Liability for X-Code Transactions .........................................................2-18
X-Code Processing of Non-MasterCard Card Programs ............................2-18

2-ii April 2006 • Authorization System Manual
Participants in Authorization Processing

Figure 2.1 presents the entities that participate in a typical authorization
transaction in relation to each other and the Banknet® telecommunications
network.
Figure 2.1—Participants in a Typical Authorization Transaction
Cardholder
Merchant
Banknet
Network
Acquirer MIP MIP Issuer
Cardholder
A cardholder is a person to whom a card has been issued or a person who is
authorized to use the card. In an authorization transaction, the cardholder
presents the card or cardholder account number as payment in exchange for
goods or services.
Merchant
The merchant is a retailer, or any other person, firm, or corporation that
(pursuant to a merchant agreement) agrees to accept credit cards, debit cards,
or both, when properly presented.

Acquirer
An acquirer is a licensed member that acquires the data relating to a
transaction from the card acceptor or merchant and submits that data for
authorization. The acquirer also supports clearing and settlement functions to
exchange funds between the issuer and the merchant.
Issuer
An issuer is a licensed member that issues cards and is responsible for
approving or declining authorization requests. The issuer also bills
cardholders and supports clearing and settlement functions to exchange funds
between the cardholder and the acquirer.
Other Participants
Figure 2.2 presents other entities that may participate in the authorization
transaction in place of the issuer and acquirer. It shows these entities in
relation to each other and to the cardholder, merchant, and the Banknet
network.
Figure 2.2—Other Participants in a Typical Authorization Transaction
Cardholder
Merchant
Agent
Agent
Banknet on
on Behalf
Network Behalf
of the
of the
Member
MIP MIP Member

As Figure 2.2 shows, an issuer or acquirer may contract with an agent to

perform any of a variety of authorization functions on behalf of the member.
The agent may assist a member in such activities as issuing cards, processing
authorization transactions, or processing card portfolios.
Note Throughout this manual, functional references to “issuers” and “acquirers” also
refer to others acting as authorized agents for issuers or acquirers. MasterCard
members are responsible for the acts and omissions of their agents, including
those with respect to MasterCard rules, regulations, policies, and procedures.
Figure 2.3 and Figure 2.4 show that MasterCard can act on behalf of the issuers
in the following ways:
• MasterCard Stand-In System acts on behalf of the issuers by receiving
authorization requests at Central Site and generating authorization
responses based on the issuer’s predetermined parameters. For more
information about Stand-In System processing, see chapter 6.
Figure 2.3—MasterCard Stand-In System Processing Acting in Issuing Capacity
Cardholder
Merchant
Banknet
Network
Stand-In
MIP
• MasterCard X-Code and cardholder-activated terminal (CAT) processing

perform issuing functions by receiving and responding to authorization
requests at the acquirer MIP. See the information on X-Code Processing
later in this chapter.

Accessing the Authorization System
Figure 2.4—MasterCard X-Code and CAT Processing Acting in Issuing Capacity
Cardholder
Merchant
Acquirer MIP

To process authorization activity, acquirers and issuers must access the
Banknet network. This network is the path by which they send and receive
authorization messages and related data. Selecting a particular authorization
processing access method depends on a number of factors, including:
• Physical installations present at the point of interaction and at the member
site
• Volume of incoming and outgoing authorizations
• Member location
For help in selecting an appropriate access method, members may contact a

Customer Implementation Services specialist using the contact information
shown in the Using this Manual chapter.
Acquirer Methods
The following access options are available to acquirers:
• Online host-to-MIP access
• Manual telex

Online Host-to-MIP Access

The following diagrams show configurations for connectivity to a MIP or MIPs
for online access.
Figure 2.5—Acquirer Online—Direct Host to MIP Connectivity
Banknet
Network
Acquirer MIP
Figure 2.6—Acquirer Online—Direct Host to Multiple MIP Connectivity
MIP
Banknet
Network
Acquirer MIP
MIP
To have direct connectivity to a MIP, the acquirer must have a host computer
that can support this type of connectivity.
Figure 2.7—Acquirer Online—Shared MIP Connectivity
Acquirer 1 Banknet
Network
Shared
MIP
Acquirer 2
When several acquirers have connectivity to a shared MIP, the MIP is located
at the site of one of the acquirers. Other acquirers access the MIP via a
dedicated phone line. The acquirer with the MIP on-site controls the MIP
console.

Manual Telex Access

Figure 2.8 shows the method for connecting to the Banknet network using
manual telex.
Figure 2.8—Manual Telex Access to the Banknet Network
Global
Service Banknet Network
Center
Acquirer MIP
Outside the
U.S. region
Manual telex acquirers send authorization requests via telex to the MasterCard
Global Service Center. A Global Service Center representative sends the
request to the Banknet network, and receives the authorization response. This
representative then informs the acquirer of the response via telex.
Note Members in the U.S. region may not use manual telex as an access method.
Members in regions outside the U.S. region may not use manual telex as their
primary method of accessing the Banknet network for authorization requests.
Issuer Methods
Issuers may choose either of the following authorization options:
• Online host-to-MIP access to the Banknet network
• Central Authorization Processing Service (CAPS)
Interfaces for access to the Account Management System (AMS) and the
Account File for file maintenance are documented in the Account Management
User Manual. They may differ from the issuer’s access method for
authorization processing.
Online Host-to-MIP Access

Online host-to-MIP issuers receive authorization requests from the
Authorization System via a MIP connected to the issuer’s host. They format
and return authorization request responses directly using the messages
outlined in the Customer Interface Specification manual.

Figure 2.9, Figure 2.10, and Figure 2.11 show configurations for connectivity to
a MIP or MIPs for online access.
Figure 2.9—Issuer Online—Direct Host to MIP Connectivity
Banknet
Network
Issuer MIP
Figure 2.10—Issuer Online—Direct Host to Multiple MIP Connectivity
MIP
Banknet
Network
Issuer MIP
MIP
To have direct connectivity to a MIP, the issuer must have a host computer
that can support this type of connectivity.
Figure 2.11—Issuer Online—Shared MIP Connectivity
Issuer 1 Issuer Banknet

Network
Shared
MIP
Issuer 2
When several issuers have connectivity to a shared MIP, the MIP is located at
the site of one of the issuers. Other issuers access the MIP via a dedicated
phone line. The issuer with the MIP on-site controls the MIP console.

Authorization Responses
CAPS
CAPS issuers use Stand-In System processing for all of their authorization
processing. These issuers do not have an online connection to the Banknet
network. They connect to the Banknet network using MasterCard File Express,
a MasterCard communications software package. Through MasterCard File
Express, CAPS members provide MasterCard with a file containing all accounts
in the issuer’s cardholder base. They send this file as often as necessary to
provide MasterCard with current account listings and the associated available-
to-buy. MasterCard sends CAPS members a daily Sequential Response File,
which contains a record of all authorization requests that MasterCard processed
on the member’s behalf. They may also receive the Daily Activity Report via
fax or mail. This report contains supplemental information not found in the
file.
Each CAPS member must complete the Stand-In Processing Worksheet for
CAPS Members to designate limits and range blocks.
For detailed information about CAPS, sending and receiving CAPS files, and
completing the Stand-In Processing Worksheet for CAPS Members, see chapter
8.
Every authorization request receives an authorization response that directs the
acquirer or the merchant on how to proceed with the transaction. The
response received is typically a code that identifies the action that the
merchant should take.
The format of the authorization response depends on the acquirer’s access

method.
• If the acquirer is online, the Authorization Request Response/0110 message
includes a two-digit response code in Data Element 39 (Response Code).
This code informs the acquirer of the action to be taken (approve, decline,
refer to card issuer, or capture card). For a complete list of all possible
DE 39 response codes and the actions they should prompt, see the
Customer Interface Specification manual.
• If the transaction is a smart card approved transaction, the smart card must
generate a transaction certificate (TC). The acquirer assumes the risk for
all smart card transactions that do not have a TC. The acquirer can
provide the TC, the chip-related data, and the issuer’s approval code with
the clearing message. For more information about the authorization of
smart card transactions, see chapter 12.

• If the transaction is a non–face-to-face smart card transaction completed

from a cardholder-controlled remote device, the authorization response
cryptogram (ARPC) with an authorization response code can replace the
TC. The acquirer assumes the risk for all transactions that use a
cardholder-controlled remote device but do not have an ARPC and an
authorization response code.
Regardless of the format in which the authorization response is received, the

response always prompts one of the following actions on the part of the
merchant:
• Approve
• Decline
• Refer to card issuer
• Capture card
Approve
The transaction is authorized as reported.
• For magnetic stripe and key-entered transactions, the issuer provides a six-
digit authorization code to the acquirer when it approves a transaction for
the purchase of goods or services or cash disbursement.
• For smart card transactions, the smart card produces a TC when it
approves a transaction for the purchase of goods or services or cash
disbursement.
• For non–face-to-face smart card transactions completed using cardholder-
controlled remote devices, the authorization response cryptogram (ARPC)
with an authorization response code can replace the TC and chip-related
data.
The merchant still must perform its normal review process, such as verifying
the signature on the card are often included, before completing the
transaction.
Decline
The merchant may not complete the transaction. The merchant may return the
card, but may not accept the card in payment for the program or service for
that transaction amount.

For smart card transactions, the smart card generates an application

authentication cryptogram (AAC) when the transaction is declined offline or
online. Acquirers assume the risk if a merchant completes a smart card
transaction when the smart card generated an AAC.
Refer to Card Issuer

The acquirer or merchant must contact the card issuer for further instructions.
(The call referral is a fraud prevention tool that the issuer should use when it
suspects or is attempting to prevent fraud at the point of interaction.)
Acquirers may use the Global Automated Referral Service (GARS) described in
chapter 9.
MasterCard encourages effective issuer use of the “refer to card issuer”

authorization response through a tiered pricing structure for excess call referral
transactions. Higher charges apply for lower transaction amounts, and lower
charges apply for higher transaction amounts. For more information, see the
MasterCard Consolidated Billing System Manual.
MasterCard Stand-In System processing never generates a “refer to card issuer”

response in the following situations:
• When the transaction is a mail order/telephone order (MO/TO) transaction
• When the acquirer is responding to a “refer to card issuer” response, the
issuer is unavailable, and Stand-In System processes the GARS transaction
• When the transaction is an ATM transaction
• When the issuer’s call center is closed
If the smart card transaction goes online and the issuer responds with “refer to
card issuer,” the merchant and acquirer should follow “refer to card issuer”
procedures. The issuer can then provide a code for the merchant to type in,
indicating whether to approve or decline the transaction. Based on the
approval code, the smart card will generate a TC if the transaction is approved
or an AAC if the transaction is declined.
Capture Card
The acquirer or merchant must use its best efforts to retain the card by
reasonable and peaceful means. For instructions on how to return a recovered
card to the issuer, see the Security Rules and Procedures manual.

Limit-1 Processing
Limit-1 Processing
If the issuer is online and chooses to truncate a certain percentage of
transactions to reduce the number of transactions that the issuer must process,
the issuer can establish Limit-1 transaction limits using the Stand-In Processing
Worksheet. For details about establishing these limits, see chapter 7.
Limit-1 processing does not apply to the following types of transactions:

• Address Verification Service
• Balance Inquiry
• ATM cash disbursement transactions
• Unique transactions (including In-flight Commerce Terminal/Level 4
gaming transactions)
• CAT Self-service Terminals/Level 2
• CAT Automated Dispensing Machines/Level 1
• Transactions that contain a “merchant suspicious” indicator
• Transactions that contain card validation code 2 (CVC 2) data
For all other transactions, Limit-1 processing applies the following checks:
1. Checks for the Nth transaction and sends Nth transactions directly to the
issuer for processing.
2. Compares the transaction amount to the Limit-1 amounts established by the
issuer on the Stand-In Processing Worksheet. Limit-1 processing sends
transactions with transaction amounts greater than the Limit-1 amounts
directly to the issuer for processing.
3. Applies all of the usual Stand-In System tests described in chapter 6 to
remaining transactions.
Limit-1 Limits
Limit-1 processing forwards transactions with transaction amounts greater than
the established limit to the issuer for approval. MasterCard has established a
default Limit-1 limit of USD 0; all transactions are automatically forwarded to
the issuer for issuers that do not designate separate limits.
Online acquirers can override issuer Limit-1 values and forward MO/TO and
electronic commerce transactions from their MIP to issuers to reduce the risk
of Limit-1 approval for MO/TO and electronic commerce transactions.

Limit-1 Processing
“Nth” Transaction
Limit-1 processing forwards one transaction (the “Nth” transaction) to the
issuer at established intervals, regardless of the transaction amount. A counter
on each acquiring MIP maintains the transaction count for each issuer. For
example, MasterCard has established a default of 9,999 for the Nth value.
At each acquiring MIP, every 9,999th transaction received for each issuer for
Limit-1 processing automatically goes to the issuer for authorization unless the
issuer designates a different “Nth” value on the Stand-In Processing Worksheet.
Stand-In System Tests

The Authorization System applies the Stand-In System tests described in
chapter 6 to Limit-1 transactions that are less than or equal to the Limit-1
transaction limit and that are not the Nth transaction.
Members that establish Limit-1 values should review their limits for the Stand-
In Accumulative Limits test. These limits must be sufficient to accommodate
Limit-1 transaction volumes in Stand-In System processing. Stand-In
processing applies the member-defined Accumulative Limits test to all
transactions (including Limit-1 transactions) that the Stand-In System processes.
Limit-1 Processing Flow

Limit-1 processing follows one of two possible flows as shown in Figure 2.12
and Figure 2.13.
• The transaction amount in the Authorization Request/0100 is greater than
the Limit-1 transaction amount limit or the transaction is the Nth
transaction. The Authorization System forwards these transactions to the
issuer.

Limit-1 Processing
Figure 2.12—Limit-1: Transaction Amount is Greater than Limit or Transaction is

Nth Transaction
Banknet
Network
MIP
Stand-In
• The transaction amount in the Authorization Request/0100 is less than or

equal to the Limit-1 transaction amount limit. The Stand-In System
processes these transactions.
Figure 2.13—Limit-1: Transaction Amount is Less than or Equal to Limit
Banknet
Network
MIP
Stand-In

X-Code Processing
Limit-1 Processing Results

Online issuers can see the results of Limit-1 processing as follows:
• On the X-Code and Limit-1 Weekly Detail Authorizations Report
(AB110010-AA). For a sample of the report, see the MasterCard
Consolidated Billing System Manual.
• In the Authorization Advice/0120 (Store-and-Forward) messages, which the
Authorization System creates for each Limit-1 transaction. To learn how to
retrieve these messages, see chapter 5.
X-Code Processing
X-Code processing applies only when the acquirer is online. It can occur at
either of the following locations:
• Acquirer host
• Acquirer MIP
The descriptions here apply only to MasterCard card programs. For X-Code
processing of all other card brands, see “X-Code Processing of Non-MasterCard
Card Programs” later in this chapter.
Acquirer Host X-Code Processing

Acquirer host X-Code processing occurs when the acquirer host cannot
communicate with the acquirer MIP, as shown in Figure 2.14.
Figure 2.14—Acquirer Host X-Code Processing
1 X
Banknet
1 X Network
2

X-Code Processing
Stage Description
1. The acquirer creates an authorization request; however, the acquirer host
cannot communicate with the acquirer MIP.
2. The acquirer responds to the authorization request based on the rules for
acquirer host X-Code processing.
3. The acquirer may be required to phone or telex the issuer for approval based
on the rules for X-Code processing.
Rules for Acquirer Host X-Code Processing

For acquirer host X-Code processing, the acquirer must approve and bear
liability for the transaction, after validating that the account is not listed as
restricted on the Electronic Warning Bulletin file, when the transaction amount
is less than or equal to USD 300, except in the circumstances listed below.
The issuer bears liability for authorization requests that it approves. The
acquirer must phone or telex the issuer for approval in any of the following
instances:
• The transaction amount is more than USD 300.
• The card is not present.
• The merchant suspects that the card may be stolen or counterfeit, or the
transaction or the customer causes the merchant to be suspicious.
• The transaction type is one of the following: cash disbursement, unique,
mail order/telephone order, electronic commerce order, or payment
transaction.
If the transaction amount is more than USD 300 and the acquirer cannot reach
the issuer, the acquirer may do any of the following:
• Approve the transaction (and bear liability for the total amount).
• Decline the transaction.
• Continue attempting to reach the issuer.
Acquirer MIP X-Code Processing

Acquirer MIP X-Code processing occurs when:
• The acquirer MIP cannot communicate with the Banknet network.
• The acquirer MIP does not receive a response from the issuer or the Stand-
In System within the time frame established by MasterCard.

X-Code Processing
Figure 2.15—Acquirer MIP X-Code Processing
1
Banknet
2 Network
MIP
Stand-In
Stage Description
1. The authorization request is routed to the acquirer MIP on its way to the
issuer. However, one of the following scenarios occurs:
• The acquirer MIP cannot communicate with the Banknet network.
• The Banknet network cannot communicate with the issuer MIP and
the Banknet network cannot communicate with the Stand-In MIP.
• The Banknet network cannot communicate with the issuer MIP and
the Stand-In MIP cannot communicate with the Stand-In host.
• The Banknet network cannot communicate with the Stand-In MIP
and the issuer MIP cannot communicate with the issuer host.
2. The acquirer MIP generates an authorization response as follows:

MIP X-Code Authorization
Response Type of Transaction
Decline • Transactions that contain a PIN
(ATM)
• Non–face-to-face transactions that
exceed the MasterCard X-Code
limits (see the MIP X-Code Limits
table)
• Transactions that contain the
“merchant suspicious” indicator

X-Code Processing
Stage Description
• Transactions that occur at a
cardholder-activated terminal
(CAT)/Level 1
Refer to Card Issuer • Cash disbursement
• Payment transaction
• Unique
• Transactions that exceed the
MasterCard X-Code limits (see the
MIP X-Code Limits table)
Capture Card Transactions for accounts that are listed
on the Electronic Warning Bulletin file
or on the Warning Notice
Approve Transactions that are less than or equal
to the MasterCard X-Code limits and do
not meet any of the criteria listed above
The Authorization System generates Authorization Advice/0120 messages to

report the results of X-Code processing. Online issuers can retrieve the
messages using the process described in chapter 5.
MIP X-Code Limits

The following table shows established X-Code limits. Transactions must be
less than or equal to these limits to be approved.
Type of Transaction MIP X-Code Limits

Apr
Transaction using World MasterCard™ Card USD 2,500 2006
Transaction using Platinum MasterCard™ Card USD 1,500
Transaction using either MasterCard BusinessCard® USD 1,000
Card or MasterCard Corporate Card™
Transaction using all other MasterCard cards USD 600
Transaction that occurs at a CAT Self-service USD 100
Terminal/Level 2
In-flight Commerce Terminal/Level 4 gaming USD 350
transaction (TCC is U and MCC is 7995). For CAT
Level 4 non-gaming transactions, the appropriate
USD 600 or USD 1,000 limit applies.

X-Code Processing
Liability for X-Code Transactions

The issuer is liable for transactions that are approved under acquirer MIP X-
Code, up to the MIP X-Code limits specified in above table.
The acquirer may raise the X-Code limits at its own risk via the MIP console.
For more information about how to do this, see the MasterCard Interface
Processor Member Manual.
If the acquirer raises the limits, it is liable for the entire amount of any
transaction greater than the MasterCard default limits. For example, suppose
that the acquirer raises the USD 600 limit for all other MasterCard cards to USD
1,000. If a transaction is approved for USD 900 under the raised X-Code limit,
then the acquirer is liable for the entire USD 900. The acquirer is liable under
chargeback reason code 08 (Requested/Required Authorization Not Obtained).
The issuer is liable only for transaction amounts that are less than or equal to
the MasterCard default amounts.
X-Code Processing of Non-MasterCard Card Programs

Acquirer Host X-Code processing of non-MasterCard cards is subject to the
guidelines of the individual card brand.
Acquirer MIP X-Code processing of non-MasterCard cards is the same as for

MasterCard cards with the following exceptions and clarifications.
The following table shows MIP X-Code limits for non-MasterCard cards.
Response if the transaction is

Type of Transaction MIP X-Code Limit greater than the limit
All Visa 0 Decline
Non-MasterCard, non-Visa 0 Decline
MO/TO, ATM, and “merchant
suspicious”
All other non-MasterCard, 0 Refer to Card Issuer
non-Visa

3 MasterCard Authorization Message Flows
This chapter explains the flow of authorization messages that involve a
MasterCard® card.
Basic Authorization Flow ....................................................................................3-1
Variations on the Basic Authorization Flow for MasterCard Cards ...................3-2

Authorization Processing Occurs at the Acquirer MIP ................................3-3
MIP Edits Cause an Error Response by the Acquirer MIP ....................3-3
Transaction is a CAT Limited Amount Terminal/Level 3 ......................3-3
X-Code Processing Applies ....................................................................3-3
Limit-1 Processing Applies .....................................................................3-3
Issuer Is Online but the Transaction Cannot Follow the Primary Path ......3-3
Secondary Path for Online Members—Stand-In System Processing ....3-4
Tertiary Path for Online Members—X-Code Processing.......................3-5
Issuer is a CAPS Issuer..................................................................................3-5
Primary Path for CAPS Members—Stand-In System Processing ...........3-5
Secondary Path for CAPS Members—X-Code Processing.....................3-6

MasterCard Authorization Message Flows
Basic Authorization Flow
Basic Authorization Flow

Although the authorization process contains many variables for routing and
authorizing, it is helpful to have an understanding of the basic flow of an
authorization request.
Figure 3.1 depicts this basic flow. This basic authorization flow assumes that
the card involved is a MasterCard card, that the issuer and acquirer are online
members, and that the issuer has instructed MasterCard to forward all requests.
Figure 3.1—Basic Authorization Flow
Cardholder
1
7
Merchant
2
6
3 3 3 3
4 4 Banknet 4 4
5 Network
5
Stage Description
1. The cardholder presents the card to the merchant for a face-to-face
transaction or provides the card number, expiration date, name, and
address when placing a mail, phone, or electronic commerce (e-commerce)
order.
2. The merchant forwards the transaction to the acquirer for approval.
3. The acquirer requests authorization for the transaction by generating an
authorization request message. The authorization request travels through
an acquiring MasterCard interface processor (MIP), to the Banknet®
telecommunications network, through an issuer MIP, and then to the
issuer’s host.

Variations on the Basic Authorization Flow for MasterCard Cards
Stage Description
4. The issuer returns an authorization response message to the acquirer to
indicate what action the merchant should take for the transaction. The
authorization response travels through the Banknet network to the
acquirer.
5. Online acquirers may send an authorization acknowledgement message
confirming receipt of the response.
6. The acquirer responds to the merchant.
7. The merchant completes the transaction according to the authorization
response returned.
Note Throughout the remainder of this chapter, diagrams omit reference to the
cardholder and merchant. Note that all authorization flows begin with the
cardholder and end with the merchant applying the authorization response.
Variations on the Basic Authorization Flow for MasterCard

Cards
Authorization flows will differ from the basic flow shown in Figure 3.1 when
the following situations apply:
• Authorization processing occurs at the acquirer MIP.
• Limit-1 processing applies.
• The issuer is online but the transaction cannot follow the primary path.
• The issuer is a CAPS issuer.
• The smart card authorizes the transaction offline.
Note Throughout this manual, the acquirer MIP in the diagrams refers to whichever
MIP accepts the authorization request and forwards it through the Banknet
network.

Authorization Processing Occurs at the Acquirer MIP

The acquirer MIP (and not the issuer) processes the authorization transaction
when any of the following situations occur:
• MIP edits cause an error response at the acquirer MIP.
• The transaction is a cardholder-activated terminal (CAT) Limited Amount
Terminal/Level 3 transaction.
• X-Code processing applies.
MIP Edits Cause an Error Response by the Acquirer MIP

The acquirer MIP performs certain editing functions to ensure validity and
inclusion of required fields. If the transaction does not pass certain edits, the
authorization request goes no further than the MIP, which returns an error
response. See the Customer Interface Specification manual to determine which
fields are mandatory, which are dependent on specific conditions, and which
are optional.
Transaction is a CAT Limited Amount Terminal/Level 3

CAT Limited Amount Terminal/Level 3 transactions originate from cardholder-
activated terminals such as vending machines that generate low risk, low dollar
amount transactions. CAT Level 3 transactions are authorized at the merchant
site.
X-Code Processing Applies

See chapter 2 for a description of X-Code processing.
Limit-1 Processing Applies

See chapter 2 for a description of Limit-1 processing.
Issuer Is Online but the Transaction Cannot Follow the Primary

Path
If a transaction involving an online issuer cannot follow the basic authorization
flow, then it can follow a secondary path or a tertiary path. If the
Authorization System cannot route these transactions via the primary path to
the issuer, it generates one of the following responses:

• Transactions that contain an AVS request only receive a response of “service

not available.” If the transaction contains an authorization request and an
AVS request, the authorization request receives the appropriate
authorization response and the AVS request receives a response of “service
not available.”
• Balance inquiry transactions receive a response of “service not available.”
• Transactions containing unverified PIN data receive a response of “decline,”

unless the issuer participates in PIN Verification in the Stand-In System
processing.
Secondary Path for Online Members—Stand-In System Processing

If any of the following conditions apply for online issuers, the system routes
the transaction to Stand-In processing:
• The issuer is not signed in.
• The transaction could not be delivered to the issuer.
• The issuer does not respond with an Authorization Request Response/0110
message within 10 seconds, causing a “time out” at the acquiring MIP.
In these cases, the transaction follows the flow depicted in Figure 3.2.
Figure 3.2—Secondary Path for Online Members: To Stand-In System Processing
1 1 Banknet X X
4 4 Network 6 6
Acquirer 5 5
MIP MIP Issuer
6
4 2
MIP
2 6
4
3
Stand-In 3 SAF
Queue

Stage Description
1. After receiving the merchant request for authorization, the acquirer generates
an authorization request, which travels through the Banknet network.
2. The Banknet network, unable to route the authorization request to the online
issuer, routes it to Central Site for Stand-In processing. See chapter 6 for
information about Stand-In processing.
3. At Central Site, Stand-In processing generates an authorization response, based
on the issuer’s parameters. Stand-In processing also generates authorization
advice messages, as appropriate, and stores them in a store-and-forward (SAF)
queue.
4. The Banknet network routes the Stand-In authorization response to the
acquirer.
6. When issuer connectivity is reestablished, the issuer may retrieve the SAF
messages generated by Stand-In processing to adjust cardholder available-to-
buy positions appropriately. See the Customer Interface Specification manual
for the format and contents of a SAF message.
Tertiary Path for Online Members—X-Code Processing

If neither the primary path nor the secondary path is available for the
transaction, X-Code processing is performed at the acquirer MIP. See “MIP X-
Code Limits” in chapter 2 for this processing flow.
Issuer is a CAPS Issuer

If a transaction involves a CAPS issuer, there are two paths this transaction can
follow: a primary and a secondary path.
Primary Path for CAPS Members—Stand-In System Processing

If the issuer is a CAPS member, the transaction follows the flow depicted in
Figure 3.1.
This flow does not apply to AVS only or balance inquiry transactions. These
transactions are not supported for CAPS members and receive an authorization
response of “service not supported.”

Figure 3.3—Primary Path for CAPS Members: Stand-In System Processing
1 1
Banknet
4 4
Network
5 5
Acquirer MIP Issuer
2 Primary
4 Stand-In
or CAPS
MIP
4 3
2
Stand-In
Stage Description
1. After receiving the merchant request for authorization, the acquirer generates
an authorization request, which travels through the Banknet network.
2. The Authorization System automatically routes the request to Central Site for
Stand-In processing. See chapter 6 for information about Stand-In processing.
3. At Central Site, Stand-In processing generates an authorization response, based
on CAPS parameters.
4. The Banknet network routes the Stand-In authorization response to the
acquirer.
Secondary Path for CAPS Members—X-Code Processing

If any of the conditions described in chapter 2 apply; that is, if the primary
path is not available for the transaction, X-Code processing is performed at the
acquirer MIP.

4 Acquirer and Issuer Responsibilities
This chapter discusses acquirer and issuer responsibilities relating to
participation in the MasterCard Authorization System.
Acquirer Responsibilities.....................................................................................4-1
Accessing the Banknet Network ............................................................4-1
Creating and Sending Authorization Requests ......................................4-2
Expired Card .....................................................................................4-2
Invalid BIN........................................................................................4-2
Cash Disbursement...........................................................................4-2
Electronic Commerce Transactions..................................................4-2
Magnetic Stripe Compliance Program .............................................4-3
Card-read Data Storage Standards ...................................................4-4
Voice Authorization Requests ..........................................................4-4
Mail Order/Telephone Order Batch Authorization
Request/0100 Messages ....................................................................4-4
Receiving the Authorization Response ..................................................4-4
Call Referral Responses ....................................................................4-4
Maintaining Authorization Logs..............................................................4-5
Assisting in Investigation of Counterfeits and Criminal Cases ....................4-5
Billing ............................................................................................................4-5
Issuer Responsibilities .........................................................................................4-6

Encoding and Validating the CVC 1 Value ..................................................4-6
Imprinting and Validating the CVC 2 Value ................................................4-7
Issuing and Validating PIN Data ..................................................................4-7
Establishing Stand-In Processing Authorization Parameters .................4-8
Maintaining an Authorization Log..........................................................4-8
Supporting AVS Requests for U.S. Issuers .............................................4-8
Call Referral Responses.................................................................................4-8
File Maintenance .........................................................................................4-10
Billing ..........................................................................................................4-10

Acquirer and Issuer Responsibilities
Acquirer Responsibilities
As MasterCard members, acquirers enter into written agreements with their
merchants. These acquirer-merchant agreements must in substance contain
certain provisions described in the Bylaws and Rules manual.
Note The acquirer is responsible for making applicable MasterCard rules, regulations,
procedures, and policies known to its merchants and is responsible for
merchant violations of them.
Acquirers must provide adequate and reasonable authorization services to their

merchants, regardless of their location. Acquirers that have entered into an
agreement with merchants also have responsibilities regarding the following:
• Processing authorization requests
• Assisting in investigation of counterfeits and criminal cases
• Billing
Processing Authorization Requests

To process authorization requests, acquirers must be able to do the following:
• Access the Banknet® telecommunications network
• Create and send authorization request messages
• Receive the authorization response
• Maintain authorization transaction logs
Accessing the Banknet Network

Acquirers must have access to the Banknet network to generate authorization
requests and receive authorization responses. Acquirer options for establishing
access to the network are addressed in chapter 2 of this manual and in the
Data Communications Manual.

Creating and Sending Authorization Requests

For all transactions other than On-Us (any transaction in which the acquirer
and issuer are the same member), the acquirer formats and sends an
authorization request. Acquirers must forward authorization requests under all
conditions identified in the Chargeback Guide and according to the following
specifications.
Expired Card
Acquirers should forward, and not decline, any transactions with an expired
expiration date. Issuer-approved expired card transactions are not eligible for
chargeback if the Authorization Request/0100 message accurately presents the
expiration date. See the Chargeback Guide for more information about
chargeback rights associated with expired cards.
Invalid BIN
Acquirers must forward an authorization request even if the BIN appears to be

invalid. An acquirer may not decline a transaction unless it has received a
response of “invalid card number” from the Authorization System.
Cash Disbursement
See the GCMS Reference Manual for specific procedures related to processing
cash disbursements.
Electronic Commerce Transactions
MasterCard monitors authorization data originating from electronic commerce

(e-commerce) merchants. Acquirers with merchants that fail to identify e-
commerce transactions properly are subject to noncompliance assessments.
MasterCard also monitors and identifies merchants and acquirers to verify that
they do not resubmit declined Authorization Request/0100 messages with
different values in these data elements. Merchants and acquirers should not
present Authorization Request/0100 messages using one card acceptor
business code/merchant category code (MCC) or with e-commerce transaction
identifiers and then, when declined, subsequently resubmit the transaction
with different MCCs or with e-commerce transaction identifiers to bypass issuer
strategies and obtain issuer approval.

Acquirer Certification
Acquirers must certify that they properly identify e-commerce transactions.

Acquirers must submit to MasterCard a certification letter, signed by their chief
financial officer or internal auditor, stating that all electronic commerce
transactions are being identified properly. MasterCard must receive the
certification letter within 30 days from the date that the acquirer begins to
process electronic commerce transactions. Acquirers must send the
certification letter to:

Attention: Manager, Fraud Control Operations, Security and Risk Services
Department
2200 MasterCard Blvd.
USA
Magnetic Stripe Compliance Program
MasterCard recommends that all acquirers participate in the Magnetic Stripe

Compliance Program. This program focuses on ensuring that merchants
capture complete and unaltered track data. Acquirers benefit from
participating in this program by significantly reducing fraud.
Acquirers that participate in the Magnetic Stripe Compliance Program and use
multiple processors (including processors used for emergency situations) must
complete the Magnetic Stripe Monitoring process for each processor they use.
Interchange compliance requires that MasterCard approve participating

acquirer/processor combinations for magnetic stripe compliance. Transactions
submitted for clearing by acquirer/processor combinations not approved for
magnetic stripe compliance are not eligible for some interchange rates and
may be subject to interchange adjustment.
Note Members that choose to participate in the International Electronic Interchange

(IEI) program must first become approved participants in the Magnetic Stripe
Compliance Program.
See chapter 9 for more information about participating in the Magnetic Stripe
Compliance Program.

Card-read Data Storage Standards
No card-read data may be displayed, replicated or stored by any acquirer,

merchant, point-of-interaction terminal or other device, or representative of the
acquirer or merchant (including Third Party Processors [TPPs] and Data Storage
Entities [DSEs]), except card account number, expiration date, service code,
and cardholder name, if present. See the Bylaws and Rules manual and the
Security Rules and Procedures manual for the detailed rules and
noncompliance assessments that apply.
Voice Authorization Requests
Acquirers that initiate an authorization request based on a phone call from the
merchant must verify the account number with the merchant to ensure that it
was correctly relayed before declining an authorization.
Mail Order/Telephone Order Batch Authorization Request/0100

Messages
Unless agreed to otherwise by the acquirer and issuer, under no circumstances

can an acquirer or its merchant submit batch Authorization Request/0100
messages presorted in BIN order.
Receiving the Authorization Response

Acquirers may receive any of the authorization responses outlined in chapter
2. When the acquirer receives the authorization response, it passes the
response on to the merchant. The acquirer bears responsibility for application
of the response. If, in response to an authorization request, the acquirer is
instructed to obtain or to hold on to a card or is given other instructions, the
acquirer must inform the merchant that it shall use its best efforts, by
reasonable and peaceful means, to comply with such instructions.
Call Referral Responses
Acquirers have the following additional responsibilities regarding call referral

responses:
• Establish a merchant call referral response rate of 60%.
• Monitor individual merchant performance.
• Encourage, where possible or appropriate, three-way communication to
allow merchants, cardholders, and issuers to exchange information during
a call referral response call.
• Develop and distribute educational materials for merchants.

• Apply all call referral standards to the rules governing Member Service
Providers (MSPs). The Bylaws and Rules manual describes MSP
responsibilities.
Maintaining Authorization Logs

Acquirers that process authorizations must maintain, for at least 120 days, a
record or log of all authorization transactions. The log must include all data
files pertinent to each request and corresponding authorization response.
If an authorization transaction occurred at an electronic terminal, the acquirer

must maintain a log containing the following information:
• Authorization code given by the issuer or the transaction certificate (TC)
given by the smart card
• Substitute number generated by the acquirer and printed on the terminal
receipt, if not the same as the authorization code
• Number of days allowed for a presentment, in the case of a delayed
delivery because of a partial payment (see the Bylaws and Rules manual)
• Indication that the merchant reported that the card may be stolen or
counterfeit or that the transaction caused the merchant to be suspicious, if
this situation occurred
Assisting in Investigation of Counterfeits and Criminal Cases

See the Security Rules and Procedures manual for information about a
member’s responsibility to provide assistance as necessary to MasterCard and
other members that are performing investigations.
Billing
All authorization processing activities are billed through the MasterCard
Consolidated Billing System (MCBS). Charges and credits to the acquirer are
listed as “billing events,” and include the following categories of authorization
activity:
• Use of the network (acquirer access fees)
• Use of value-added services. See chapter 9 for a description of these
services.

Issuer Responsibilities
• Call referrals (calls to the issuer)

− The acquirer receives a credit for responding to call referrals within
established time frames. This applies only if the acquirer uses the
Global Automated Referral Service (GARS). See chapter 9 for more
information about GARS.
− The acquirer may request a credit for call referral responses that did
not use GARS. The credit covers the costs of contacting the issuer.
The acquirer requests the credit via a Fee Collection/1740 message.
For a complete description of billing events for authorization services, see the
Issuers have responsibilities regarding the following aspects of participation in
the MasterCard Authorization System:
• Encoding and validating the card validation code 1 (CVC 1) value
• Imprinting and validating the card validation code 2 (CVC 2) value
• Issuing and validating PIN data
• Processing authorization requests
• Call referral responses
• File maintenance
• Billing
Encoding and Validating the CVC 1 Value

Issuers must encode the magnetic stripe on all cards with the CVC 1 value.
For information about the placement of the CVC 1 value within the magnetic
stripe, see chapter 9.
Online issuers also must validate the CVC 1 value when they receive the
Authorization Request/0100 message if the Authorization Request/0100
message contains value 80, 90, or 91 in subfield 1 of the Point-of-Service (POS)
Entry Mode field.
The issuer must indicate a CVC 1 validation failure by placing a “Y” in

subelement 87 of the Additional Data field in the Authorization Request
Response/0110 message.

Imprinting and Validating the CVC 2 Value

Issuers must imprint the CVC 2 value on the signature panel of the card. For
information about the verification process performed by the issuer, see chapter
9.
Issuing and Validating PIN Data

Issuers must be able to receive and process MasterCard purchase
authorizations that contain a personal identification number (PIN).
For more information about preparing issuers’ systems to receive and to

process PIN authorization requests, see chapter 9.
Processing Authorization Requests

Issuers receive authorization requests from acquirers and provide authorization
responses directing acquirers about how to handle the transactions. Each
issuer is responsible for the provision of authorization service 24 hours a day,
every day of the year at its own expense.
In addition, each issuer participating in the MasterCard Authorization System or

any local or regional message switching service with other members must have
adequate back-up procedures and personnel. The issuer must be able to
process incoming and outgoing interchange authorizations if the member’s
connection with the MasterCard Authorization System or the local or regional
service becomes inoperable for any reason. Each issuer also is responsible for
the authorizations that it or its agent generates, including gratuities included in
the total transaction amount and any transaction resulting from a variance
granted by MasterCard pursuant to the Bylaws and Rules manual.
To provide authorization responses, most issuers access the MasterCard

Authorization System online, through connectivity between the issuer host and
a MIP.
MasterCard also performs authorization processing on behalf of members that

do not have online connectivity, through the Central Authorization Processing
Service (CAPS). Chapter 2 describes this option.

Establishing Stand-In Processing Authorization Parameters

All issuers must complete the Stand-In Processing Worksheet to establish
parameters for Stand-In authorization processing. Online issuers also may
establish parameters for Limit-1 processing on this worksheet. See chapters 6,
7, and 8 for detailed information about Stand-In processing and completing the
Stand-In Processing Worksheet.
Maintaining an Authorization Log

Issuers must maintain written records, logs, or computer records of all
authorizations granted showing the date of issue for at least 120 days.
Supporting AVS Requests for U.S. Issuers

MasterCard mandates that all issuers in the U.S. region must support Address
Verification Service (AVS) processing. Issuers must test their ability to accept
and to transmit AVS messages. See the Customer Interface Specification
manual for online processing formats for AVS.
Call Referral Responses

Issuers have the following responsibilities regarding call referral responses.
They must:
• Be available to respond to all call referrals at the time of issuance.
• Process an Authorization Advice/0120 message that informs the issuer that
Stand-In Processing responded to the Authorization Request/0100 message
that prompted a call referral response.
• Not issue call referrals to merchant categories that represent unattended
point-of-interaction (POI) transactions including:
− Automated teller machines (MCC 6011)
− Cardholder-activated terminals (CAT) (including MCC 5542)
• Not issue call referrals under any circumstances to the following merchant
categories:
− Fast food (quick service) restaurants (MCC 5814)
− Mail order and direct marketing (MCC 5960–5969)
• Apply all call referral standards to Member Service Providers (MSPs). The
Bylaws and Rules manual describes MSPs.

• Not use call referrals as a primary method for activating new or reissued
cards to minimize the impact on cardholders and merchants at the point-
of-interaction.
• Adhere to the following minimum standards for all call referrals, domestic
and international, whether processed through the Global Automated
Referral Service (GARS) or direct member-to-member communications.
The standards apply to the amount of time the issuer has to respond to
incoming referral calls from acquirers and to the average monthly duration
of each referral call:
− On an incoming phone call (voice or GARS) from an acquirer, the
issuer must answer the call within 30 seconds. Then the issuer must
retrieve the call from its queue and initiate discussion with the acquirer
within the next 30 seconds. The issuer also must limit the duration of
each call to five minutes, measured as a monthly average.
− On an incoming telex from an acquirer, the issuer must retrieve the
message from its queue and initiate a response to the acquirer within
two minutes. The issuer also must limit the duration of each call to 10
minutes, measured as a monthly average.
Issuers that use card activation programs are encouraged to:

• Place stickers on the front of new cards and send them with mailing inserts
instructing cardholders to activate their accounts.
• Call cardholders who have not activated their accounts one week after
cards are mailed.
• Respond to an authorization request on an inactivated card with a call
referral.
All phone calls and telex messages processed through GARS that are not
answered by the issuer within the required time frames are routed to the
MasterCard Stand-In facility at Central Site for processing. MasterCard uses the
issuer-defined Stand-In parameters to complete the transaction.
Charges to the issuer apply for the following:

• Completed GARS calls initiated by the acquirer
• Noncompliance assessment for Stand-In processing if the issuer fails to
answer a GARS call within 30 seconds or a telex within two minutes
• Reimbursement to the acquirer for call referral responses that did not use
GARS (requested in the Fee Collection/1740 message)

Contact Customer Technology and Operations Services for any of the

following:
• Questions or problems concerning GARS
• Billing inquiries
• Requests for a Stand-In Processing Worksheet to update Stand-In
processing parameters or phone numbers
File Maintenance
Issuers maintain the account listings of restricted, negative, and positive cards
used by Stand-In processing for online and CAPS members. They may list
accounts in the following files:
• Account File
• Account Management System
See the Account Management User Manual for more information about these
files, including how to access the files, record formats, and detailed
instructions for performing file maintenance.
Billing
All authorization processing activities are billed through the MasterCard
Consolidated Billing System (MCBS). Charges to the issuer include the
following categories of authorization activity:
• Use of the Banknet network (issuer access fees)
• Use of value-added services (see chapter 9 for a description of these
services)
• Call referrals (charge to the issuer for issuing call referral responses and for
receiving response calls from acquirers)
For a complete description of billing events for authorization services, see the

5 Online Authorization Messages
This chapter outlines the authorization messages that online issuers and
acquirers use to process authorizations. CAPS members do not use these
messages and should see chapters 6, 7, and 8 for information about
authorization processing by the Stand-In System.
Message Types.....................................................................................................5-1
Using Authorization Messages ............................................................................5-2
Processing Authorization Transactions...............................................................5-2

Authorization Request/0100 and Authorization Request Response/
0110 Messages...............................................................................................5-3
Authorization Advice/0120 and Authorization Advice Response/
0130 Messages...............................................................................................5-3
Authorization Advice/0120—Acquirer-generated..................................5-4
Authorization Advice/0120—Issuer-generated ......................................5-5
Authorization Advice/0120—System-generated ....................................5-5
Acquirer Response Acknowledgement/0180 Messages...............................5-6
Authorization Negative Acknowledgement/0190 Messages........................5-7
Processing Issuer File Update Messages ............................................................5-8
Processing Reversal Request/Advice Messages..................................................5-9

Response/0410 Messages..............................................................................5-9
Acquirer Reversal Advice/0420 and Reversal Advice Response/0430
Messages......................................................................................................5-10
Processing Administrative Advice Messages ....................................................5-11
Using Network Management Request Messages..............................................5-13

Standard Network Management/08xx Messages .......................................5-13
Retrieving Store-and-Forward (SAF) Messages (Issuers) ...........................5-15

Online Authorization Messages
Message Types
Message Types
The following table lists the message types supported by the Authorization
System. Check marks ( ) indicate who initiates the message. See the
Customer Interface Specification manual for the data elements in each
message.
Online issuers and acquirers should use this chapter with the Customer
Interface Specification manual. For debit transactions (02xx messages), see the
MDS Online Specifications manual.
Message Category Message Initiator

MasterCard Issuer Acquirer
Authorization/01xx Messages
0100 Authorization Request
0110 Authorization Request
Response
Apr
0120 Authorization Advice 2006
0130 Authorization Advice
Response
0180 Authorization
Acknowledgement (optional for
acquirers)
0190 Authorization Negative

Acknowledgement
Issuer File Update/03xx
Messages
0302 Issuer File Update
Request
0312 Issuer File Update
Request Response
Acquirer Reversal
Request/Advice/04xx Messages
0400 Acquirer Reversal Request
0410 Acquirer Reversal Request
Response
0420 Acquirer Reversal Advice
0430 Acquirer Reversal Advice
Response

Using Authorization Messages
Message Category Message Initiator

MasterCard Issuer Acquirer
Administrative Advice/06xx
Messages
0620 Administrative Advice
0630 Administrative Advice
Response
Network Management/08xx
Messages
0800 Network Management
Request
Request Response
Advice
Using Authorization Messages

The messages shown in the previous table are used to perform standard
authorization functions and are described in the following topics. For
information about exception processing, see the Customer Interface
Specification manual.
Authorization messages are not intended for posting to the cardholder’s

account for billing purposes. Members should delay posting to the
cardholder’s account until clearing and settlement are complete. For detailed
information about clearing and settlement, see the GCMS Reference Manual
and the Settlement Manual.
Processing Authorization Transactions

Issuers receive authorization-related messages from acquirers for transactions
for their cardholders. They must respond to these messages with response
messages. Issuers that use on-behalf services also receive messages from
MasterCard.

Authorization Request/0100 and Authorization Request

Response/0110 Messages
When issuers receive Authorization Request/0100 messages, they must decide
whether to approve or decline a transaction. Issuers may use a variety of
checks using the data contained in the request and the spending limits in the
cardholder’s activity file. After issuers perform the validation checks
appropriate for the transaction, they send back an Authorization Request
The following diagram illustrates the standard authorization transaction

process.
Figure 5.1—Authorization Request/0100 and Authorization Request

Response/0110
1 0100 Banknet 2 0100

0110 4 Network 0110 3
Acquirer Issuer
Stage Description
1. The acquirer initiates an Authorization Request/0100 message and sends it to
the Authorization System.
2. The Authorization System forwards the Authorization Request/0100 message to
the issuer.
3. The issuer generates an appropriate Authorization Request Response/0110
message and sends it to the Authorization System.
4. The Authorization System forwards the Authorization Request Response/0110
message to the acquirer.
Authorization Advice/0120 and Authorization Advice

When issuers receive an advice, they must acknowledge receipt of the advice
by sending an advice response message to acquirers.
The following diagrams illustrate Authorization Advice/0120 message and

Authorization Advice Response/0130 message process.

Authorization Advice/0120—Acquirer-generated
Acquirers can submit an Authorization Advice/0120—Acquirer-generated
message when the acquirer responds to an authorization request if the
Authorization Request/0100 message cannot be delivered to the Authorization
System because of a system failure.
If the acquirer approves the Authorization Request/0100 message, the acquirer

can create an Authorization Advice/0120—Acquirer-generated message to
notify the issuer of the approved authorization.
The Authorization System responds to the Authorization Advice/0120—

Acquirer-generated message with an Authorization Advice Response/0130—
System-generated message.
Figure 5.2—Authorization Advice/0120—Acquirer-generated and Authorization

Advice Response/0130—System-generated
1 0120
Banknet
Network
0130 2
Acquirer
Stage Description
1. The acquirer initiates an Authorization Advice/0120—Acquirer-generated
2. The Authorization System returns an Authorization Advice Response/0130—
System-generated message to the acquirer to indicate positive receipt of the
Authorization Advice/0120—Acquirer-generated message.
The Authorization System adds the Authorization Advice/0120—Acquirer-
generated messages to SAF several times a day. SAF will retain these
messages for four days for the issuer to retrieve.
Note Acquirers may resend an Authorization Advice/0120—Acquirer-generated

message if the acquirer does not receive an Authorization Advice
Response/0130—System-generated message.
Acquirers cannot approve chip card transactions on behalf of the issuer.

Authorization Advice/0120—Issuer-generated
Authorization Request/0100 messages can contain BINs that members have
selected for scoring. For these transactions, issuers create and send
Authorization Advice/0120 messages to the RiskFinder scoring system. The
RiskFinder scoring system sends to the issuer an Authorization Advice
Response/0130 to acknowledge receipt of the Authorization Advice/0120
message.
Figure 5.3—Authorization Advice/0120—Issuer-generated and Authorization

Advice Response/0130—System-generated
0120
Banknet
Network
0130
Issuer
0120
0130
RiskFinder
Stage Description
1. The issuer initiates an Authorization Advice/0120—Issuer-generated message
and sends it to the Authorization System. The Authorization System forwards
the message to the RiskFinder scoring system.
2. The RiskFinder scoring system creates an Authorization Advice
Response/0130—System-generated message and sends it to the Authorization
System. The Authorization System forwards the Authorization Advice
Response/0130—System-generated message to the issuer to indicate positive
receipt of the Authorization Advice/0120—Issuer-generated message.
Authorization Advice/0120—System-generated
When the Stand-In System responds to an Authorization Request/0100 message
on behalf of the issuer, the Stand-In System generates an authorization
response, based on the issuer’s parameters. The Stand-In System also
generates an Authorization Advice/0120—System-generated message.

Figure 5.4—Authorization Advice/0120—System-generated and Authorization

Advice Response/0130—Issuer-generated
Banknet 1 0120
Network
Acquirer 0130 2 Issuer
3
1
0120
0130
Stand-In
System
Stage Description
1. The Stand-In System generates an Authorization Advice/0120—System-
generated message, and sends it to the issuer.
2. The issuer returns an Authorization Advice Response/0130—Issuer-generated
message.
3. The Stand-In System receives the Authorization Advice Response/0130—Issuer-
generated to indicate positive receipt of the Authorization Advice/0120—
System-generated message.
Issuers may differentiate between the acquirer-generated or system-generated

Authorization Advice/0120 messages by examining the values in DE 60 (Advice
Reason Code).
Acquirer Response Acknowledgement/0180 Messages

The Authorization System provides an optional response acknowledgement for
authorization messages. This process uses Authorization
Acknowledgement/0180 messages.
Acquirers are not required to support Authorization Acknowledgement/0180

messages; however, MasterCard encourages acquirers to support these
messages. Acquirers can select this option at network configuration time.

The following diagram illustrates the Acquirer Response Acknowledgement

process that is used to support authorization-related messages.
Figure 5.5—Acquirer Response Acknowledgement/0180
1 0100 2 0100
0110 4 Banknet 0110 3
5 0180 Network
Acquirer Issuer
Stage Description
1. The acquirer initiates an Authorization Request/0100 message and sends it to
2. The Authorization System forwards the Authorization Request/0100 message to
the issuer.
3. The issuer creates the appropriate Authorization Request Response/0110
4. The Authorization System forwards the Authorization Request Response/0110
5. The acquirer sends an Authorization Acknowledgement/0180 message back to
the Authorization System, indicating that the acquirer received and secured the
preceding Authorization Request Response/0110 message at the application
level.
In most cases, the acquirer should send the Authorization
Acknowledgement/0180 message to the Authorization System:
• Immediately after it secures (or logs) the Authorization Request
Response/0110 message
• Before the transaction actually is completed at the point of interaction
An Authorization Acknowledgement/0180 message does not necessarily
indicate that the transaction was successfully completed at the point of
interaction.
Authorization Negative Acknowledgement/0190 Messages

If the issuer host generates a valid Authorization Request Response/0110
message approving an authorization request, but the Authorization System
cannot deliver it to the acquirer MIP, the Stand-In System processes the
transaction and generates a response on behalf of the issuer.
The following diagram explains the sequence if the issuer generates an invalid
response.

Processing Issuer File Update Messages
Figure 5.6—Invalid 0110 Response from Issuer
0100 1 1 1 0100 1
Banknet 0110 2
0110 5
Network
0190 3
0110
0100
5 4
0100 4 Stand-In
5 0110
MIP
Stage Description
1. The acquirer sends the Authorization Request/0100 message.
2. The issuer generates an invalid Authorization Request Response/0110 message.
3. The Authorization System sends an Authorization Response Negative
Acknowledgement/0190 message to the issuer.
4. The Authorization System routes the Authorization Request/0100 message to
the Stand-In System.
5. The Stand-In System generates an Authorization Request Response/0110
message and sends it to the acquirer.
Processing Issuer File Update Messages

Issuers use Issuer File Update Request/302 and Issuer File Update Request
Response/0312 messages to update individual data files or system parameter
tables that the Authorization System maintains on their behalf.
The Authorization System uses these data files to control the operation of
standard and optional features that customers may select when they participate
in one or more of the MasterCard program and service offerings.
The following diagram illustrates the standard Issuer File Update Request/302
and Issuer File Update Request Response/0312 message process.

Processing Reversal Request/Advice Messages
Figure 5.7—Issuer File UpdateRequest/0302 and Issuer File Update Request

Response/0312
0302 1
Banknet
Network
2 0312
Acquirer Issuer
1
0312
0302
2
Account
Management
Repository (AMR)
Stage Description
1. The issuer initiates an Issuer File Update Request/0302 message.
2. The Authorization System performs the requested issuer file update task and
issues an Issuer File Update Request Response/0312 message back to the
issuer. A Response Indicator field in the Issuer File Update Request
Response/0312 message indicates whether the issuer file update was
completed successfully.

The Authorization System supports two types of reversals: system-generated
and acquirer-generated. Acquirer-generated messages include the Acquirer
Reversal Request/0400 and the Acquirer Reversal Request Response/0410.
System-generated messages include the Acquirer Reversal Advice/0420 and the
Acquirer Reversal Advice Response/0430.

An Acquirer Reversal Request/0400 message generated by an acquirer is used
when the acquirer is unable to deliver an issuer’s Authorization Request
Response/0110 to a merchant. Merchants also can initiate an Acquirer Reversal
Request/0400 message to reverse the full amount of the original authorization
amount.

The Acquirer Reversal Request Response/0410 message is sent in response to

an Acquirer Reversal Request/0400 message and denotes the disposition of the
Acquirer Reversal Request/0400 message.
The following diagram illustrates the flow of the Acquirer Reversal

Request/0400 and Acquirer Reversal Request Response/0410 message to
reverse the full transaction amount of the Authorization Request/0100 message.
Figure 5.8—Acquirer Reversal Request/0400 and Acquirer Reversal Request

Response/0410
1 0400 2 0400
Banknet
Network
0410 4 0410 3
Acquirer Issuer
Stage Description
1. The acquirer initiates an Acquirer Reversal Request/0400 message and submits
it to the Authorization System.
2. The Authorization System forwards the Acquirer Reversal Request/0400
message to the issuer.
3. The issuer generates an appropriate Acquirer Reversal Request Response/0410
message and submits it to the Authorization System.
4. The Authorization System forwards the Acquirer Reversal Request
Response/0410 message to the acquirer.
Acquirer Reversal Advice/0420 and Reversal Advice

The Authorization System supports system-generated reversals that reverse the
effect of a previous authorization.
When the Authorization System determines that no issuer Authorization

Request Response/0110 or Acquirer Reversal Request Response/0410 message
is received, or the issuer’s approved Authorization Request Response/0110 or
Acquirer Reversal Request Response/0410 message was unused or was
undelivered, it generates an Acquirer Reversal Advice/0420 message and sends
it to the issuer. The issuer responds to an Acquirer Reversal Advice/0420
message with an Acquirer Reversal Advice Response/0430 message to indicate
positive receipt of the Acquirer Reversal Advice/0420 message.

Processing Administrative Advice Messages
Note MasterCard currently supports Acquirer Reversal Advice/0420 messages that

only the Authorization System generates.
The following diagram illustrates the standard Acquirer Reversal Advice/0420

message process.
Figure 5.9—Acquirer Reversal Advice/0420 and Acquirer Reversal Advice

Response/0430
1 0420
Banknet
Network
0430 2
Acquirer Issuer
Stage Description
1. The Authorization System sends an Acquirer Reversal Advice/0420 message to
the issuer.
2. The issuer responds to the Authorization System with an Acquirer Reversal
Advice Response/0430 message to acknowledge positive receipt of the
Acquirer Reversal Advice/0420 message.

Administrative Advice/0620 and Administrative Advice Response/630 messages
are administrative messages that two parties participating in a given MasterCard
program or service offering can use when using the Authorization System.
The Authorization System routes messages from an originator to a receiver

and, in general, does not distinguish whether the originator or receiver is an
issuer or an acquirer.
Administrative advice messages are used for the following reasons:

• To return indecipherable messages to a message originator with an
appropriate error condition code indicating the point at which the
Authorization System terminated message parsing or message processing.
In general, messages returned in Administrative Advice/0620 messages will
have improperly coded or garbled Message Type Indicators (MTIs) or
improperly coded bit maps.
• To transmit administrative (free-format) textual messages between any two
parties participating as customers on the Authorization System.

In all cases, DE 60 (Advice Reason Code) within the Administrative

Advice/0620 message determines the specific reason for the advice message.
The following diagram illustrates the administrative advice message process

used to return an invalid message.
Figure 5.10—Invalid Message—Administrative Advice/0620 and Administrative

Advice Response/630
1 Invalid
message
Banknet
CPS 0620 2 Network
3 0630
Stage Description
1. A customer processor system (CPS) generates an invalid message and forwards
it to the Authorization System.
2. The Authorization System returns an Administrative Advice/0620 message to
the CPS, with an appropriate error condition code indicating the point at
which the Authorization System terminated message parsing or message
processing.
3. The CPS acknowledges receipt of the Administrative Advice/0620 message and
returns an Administrative Advice Response/0630 message to the Authorization
System.
The following diagram illustrates the administrative advice message process

used to transmit administrative (free-format) textual messages between any two
parties participating as customers on the Authorization System.
Figure 5.11—Administrative Advice/0620 and Administrative Advice

Response/630
1 0620
0630 2 Banknet 3 0620
CPS CPS
Network 0630 4

Using Network Management Request Messages
Stage Description
1. A customer processor system (CPS) generates an Administrative Advice/0620
message and forwards it to the Authorization System. Note that the “CPS” may
be an issuer, an acquirer, or any other customer processing facility
communicating via the Authorization System.
2. The Authorization System acknowledges receipt of the Administrative
Advice/0620 message by returning an Administrative Advice Response/0630
message to the originating CPS.
3. The Authorization System forwards the Administrative Advice/0620 message to
the receiving destination CPS.
4. The receiving CPS acknowledges receipt of the Administrative Advice/0620
message by returning an Administrative Advice Response/0630 message to the
Authorization System.

The Authorization System uses network management messages to coordinate
system or network events or tasks. These messages also are used to
communicate network status conditions.
Typical uses of network management messages include the following:
• Sign-in to and sign-out from the Authorization System

• Perform encryption key management tasks
• Request SAF message transmission
• Advise of SAF end-of-file/end-of-transmission conditions
• Sign-in to and sign-out from RiskFinder by BIN
• Request RiskFinder SAF message transmission
Standard Network Management/08xx Messages

The following diagrams illustrate using the Network Management Request/0800
and Network Management Request Response/0810 messages, as well as the
Network Management Advice/0820 message processes between the
Authorization System and any external processing systems to which it
interfaces.

Figure 5.12—Network Management/08xx—Member-initiated
1 0800
Issuer or Banknet
Acquirer 0810 2 Network
Stage Description
1. The issuer or acquirer sends a Network Management Request/0800 message to
2. The Authorization System generates a Network Management Response/0810
message to acknowledge receipt of the Network Management Request/0800
message.
Figure 5.13—Network Management/08xx—System-initiated
1 0800 Banknet
Issuer or
Acquirer Network
0810 2
Stage Description
1. The Authorization System generates the Network Management Request/0800
message.
2. The issuer or acquirer generates a Network Management Response/0810
message to acknowledge receipt of the Network Management Request/0800
message.
The following diagram illustrates the standard Network Management

Advice/0820 message process between the Authorization System and the issuer
or acquirer.
Figure 5.14—Network Management Advice/0820—System-initiated
Issuer or 0820 Banknet

Acquirer Network

Retrieving Store-and-Forward (SAF) Messages (Issuers)

The Authorization System places advice messages into the SAF queue. The
SAF queue retains all of these messages for four days for the issuer to retrieve.
The following diagram explains the flow for SAF retrieval.
Figure 5.15—SAF Retrieval Process
1 0800 1
Banknet 2 0810 2
Network 3 0120, 0420, 0620 3
4 0130, 0430, 0630 4
Acquirer MIP 5 0820 5 Issuer
1 MIP
2 4 5 Issuer
3
1
2
Stand-In SAF
3
4 Queue
5
MIP
Stage Description
1. The issuer sends a Network Management Request/0800 message to request SAF
messages. The network management code included in DE 70 (Network
Management Information Code) identifies this as a SAF request.
2. The Stand-In System generates the Network Management Request
Response/0810 acknowledgement message.
3. The Banknet SAF process forwards an Authorization Advice/0120, Acquirer
Reversal Advice/0420, or Administrative Advice/0620 message to the issuer.
4. The issuer must generate an Authorization Advice Response/0130, Acquirer
Reversal Advice Response/0430, or Administrative Advice Response/0630
message. These response messages advise the Stand-In System that the issuer
received the previous Authorization Advice/0120, Acquirer Reversal
Advice/0420, or Administrative Advice/0620 message and prompt the Stand-In
System to send the next Authorization Advice/0120, Acquirer Reversal
Advice/0420, or Administrative Advice/0620 message.
Each time the Stand-In System receives an Authorization Advice
Response/0130, Acquirer Reversal Advice Response/0430, or Administrative
Advice Response/0630 message, the Stand-In System sends the issuer the next
message. If the Stand-In System does not receive an Authorization Advice
Response/0130, Acquirer Reversal Advice Response/0430, or Administrative
Advice Response/0630 message within three minutes, the Stand-In System
assumes the issuer did not receive the previous message and ends the SAF
session.

Stage Description
5. When there are no more Authorization Advice/0120, Acquirer Reversal
Advice/0420, and Administrative Advice/0620 messages in the queue, the
Stand-In System generates a Network Management Advice/0820 message.
When an issuer has a large number of SAF records (for example, because of
an extended outage), MasterCard can provide SAF records to the issuer using
any of the following transmission methods:
• Bulk file type T230
• Complex-to-complex (CTC) file transmission
• Magnetic tape
When MasterCard begins to create the bulk file for transmission via these
methods, it halts the online transmission of SAF records. This halt prevents
MasterCard from distributing duplicate SAF records via both bulk file and
online transmission.

6 Stand-In Processing
This chapter describes the Stand-In processing facility at MasterCard Central
Site. It explains the tests that Stand-In processing performs and the order in
which Stand-In performs them to ensure appropriate authorization responses.
Stand-In Processing Service ................................................................................6-1
How Stand-In Processing Works ........................................................................6-1

Range Blocks.................................................................................................6-2
Account Listings ............................................................................................6-2
Stand-In Processing Parameters....................................................................6-2
Stand-In Processing Security Services ..........................................................6-3
Decision Matrix .............................................................................................6-3
Stand-In Tests ......................................................................................................6-4

Range Blocks Test.........................................................................................6-5
Account File Test...........................................................................................6-6
Expiration Date Test .....................................................................................6-6
M/Chip Cryptogram Validation Test.............................................................6-7
PIN Verification Test .....................................................................................6-7
CVC 1 Test.....................................................................................................6-8
AAV Verification Test....................................................................................6-9
Merchant Suspicious Test .............................................................................6-9
Transaction Limits Test ...............................................................................6-10
Parameter Combinations.......................................................................6-11
Examples of Parameter Combinations...........................................6-11
Mandatory MasterCard Parameter Combinations ................................6-12
MasterCard Processing..........................................................................6-14
Examples of Application of Transaction Limits Parameter
Combinations..................................................................................6-14
Accumulative Limits Test ............................................................................6-17
Cash Disbursement Accumulator Test .......................................................6-18
Stand-In Response.......................................................................................6-18

Stand-In Processing
Exceptions and Additions to the Stand-In Process ..........................................6-19

Online Transactions ....................................................................................6-19
Gold MasterCard Card Accounts ................................................................6-19
VIP Accounts ...............................................................................................6-20
CAPS Accounts ............................................................................................6-20

Stand-In Processing
Stand-In Processing Service
Stand-In Processing Service

Stand-In processing is a MasterCard service that responds to authorization
requests on behalf of the issuer. Stand-In processing is available to all issuers
24 hours a day, 365 days a year. However, Stand-In processing responds only
when the issuer is unavailable or cannot be reached, as follows:
• Stand-In processing responds for online issuers only when the issuer is not
signed in, the transaction cannot be delivered to the issuer, or the issuer
MIP times out (does not receive an authorization response within specified
time limits).
• Stand-In processing responds for Central Authorization Processing Service
(CAPS) issuers 100% of the time.
Stand-In processing does not apply to the following types of transactions.
Authorization Response from Stand-

Transaction Type In Processing
Transactions that contain only an Address Service not available
Verification Service (AVS) request
Balance inquiry transactions Service not available
Transactions containing unverified PIN Decline
data, unless the issuer participates in PIN
Verification in Stand-In processing
How Stand-In Processing Works

Stand-In processes authorization requests according to a series of tests. To
determine an authorization response, these tests rely on data in the
authorization message and some or all of the following data provided by the
issuer:
• Range Blocks
• Account Listings
• Stand-In Processing Parameters
• Stand-In Processing Security Services
• Decision Matrix
See Figure 6.1 and the explanations that follow.

Stand-In Processing
Figure 6.1—Data Used by Stand-In Processing
Account File
Banknet
Network VIP accounts
Gold accounts
Authorization Account listings
Acquirer Negative accounts
Request Restricted accounts
Stand-In
(Stand-In
Transaction Limits Issuer
tests
applied) Accumulative Limits
Decision Matrix Security Service Forms
Range Blocks Stand-In Worksheet
CVC Parameters
MIP PIN Parameters
M/Chip Parameters
Central Site AAV Parameters
Range Blocks
Issuers may list a range of account numbers to indicate that they have not
issued the numbers to cardholders.
Account Listings
The issuer may list accounts in the Account File as negative, restricted, VIP, or
Gold.
Issuers may list individual card numbers to identify exception accounts that are
processed differently than regular accounts. They can list these accounts with
either higher limit, such as the limits for Gold MasterCard® cards and VIP cards
or as negative or restricted accounts that must be declined or captured.
If Stand-In processing determines that an account is listed in the Account File

or AMS, Stand-In processing is modified as described in the Account File Test
section later in this chapter. See the Account Management User Manual (or
for CAPS issuers, chapter 8) for a description of how to list accounts.
Stand-In Processing Parameters

Issuers use the Stand-In Processing Worksheet to provide MasterCard with the
parameters for processing authorization requests. Issuers define:
• Amount limits that apply for a particular combination of parameters in the
authorization request

Stand-In Processing
• Accumulative number and amount limits that are calculated over a specified
number of days
Stand-In processing is based on limits and transaction amounts in U.S. dollars

or AMCC currency.
Online issuers should refer to chapter 7 and CAPS issuers should refer to
chapter 8 for instructions on using the Stand-In Processing Worksheet to
provide parameters.
Stand-In Processing Security Services

The issuer provides the key components from the issuer’s security service
calculation. For transactions that meet the criteria, Stand-In processing
validates the security service for the services the issuer has chosen.
For issuers that choose to participate in an optional security service, Stand-In

processing applies the appropriate service test.
Online and CAPs issuers that want to take advantage of one of the optional
security services must use the Key Validation Service Specification Form and
follow the procedures in the On-behalf Key Management (OBKM) Document
Set.
Currently, issuers may choose from the following security services (described
later in this chapter):
• Personal Identification Number (PIN) Verification
• Card Validation Code 1 (CVC 1) Verification
• MasterCard® SecureCode™ Dynamic AAV Verification in Stand-In
Processing
Decision Matrix
The issuer defines which authorization response Stand-In processing should
use if an authorization request fails a particular test.
On the Stand-In Processing Worksheet, issuers complete a decision matrix.

The decision matrix advises Stand-In processing of the authorization response
to return when a transaction fails certain tests.
In the decision matrix, issuers specify authorization responses for:

• Times when the issuer’s authorization center is open versus when it is
closed

Stand-In Processing
Stand-In Tests
• Times when the issuer’s authorization system is signed-in versus when it is

signed-out (for online issuers)
The following table provides a schematic representation of the decision matrix.
Account File Transaction Accumulative

Test Limits Test Limits Test VIP Test
Within Hours Issuer is N or C N or C N or C N or C
of Operation signed-in and
down or
timed out
Issuer is N or C N or C N or C N or C
signed-out
Outside Hours Issuer is N N or A N N

of Operation signed-in and
down or
timed-out
Issuer is N N or A N N
signed-in
A = Skip the Transaction Limits test (go to the next test even if the transaction is over
the limit)
N = Decline request
C = Call referral (verbal contact required to complete the transaction)
During Stand-In processing, whenever an authorization request fails one of the

tests that requires the decision matrix to determine an authorization response,
Stand-In processing refers to these issuer-defined choices.
If Stand-In processing is invoked during the call referral process, Stand-In

processing will not generate a second response of “call referral.”
Stand-In Tests
The Stand-In tests systematically review the authorization request to determine
an appropriate authorization response. Figure 6.2 shows the Stand-In tests in
the order in which Stand-In performs them.

Stand-In Processing
Stand-In Tests
Figure 6.2—Stand-In Tests (listed in the order in which they are performed)
Stand-In receives Accumulative

PIN Verification
the authorization Limits
Test
request Test
Cash
Range Blocks Disbursement
CVC 1 Test
Test Accumulator
Test
Account File AAV Verification Stand-In

Test Test Response
Expiration Date Merchant

Test Suspicious Test
M/Chip Transaction
Cryptogram Limits
Validation Test Test
Stand-In processing performs the tests only until it reaches a test result that
allows it to generate an authorization response. If Stand-In processing
performs the Range Blocks test and the authorization request fails that test, for
example, Stand-In processing immediately generates the authorization
response and does not perform any of the subsequent tests.
The following information describes the tests performed by Stand-In

processing to determine an authorization response. Stand-In processing
performs the tests in the order in which this chapter lists them.
Range Blocks Test

Issuers may block a range of account numbers to indicate that they have not
issued the numbers to cardholders. Issuers establish range blocks on the
Stand-In Processing Worksheet.

Stand-In Processing
Stand-In Tests
The Range Blocks test determines whether the account number in the
transaction falls within a blocked range. If it does, Stand-In processing returns
a response of “invalid card number.” Setting up range blocks for Stand-In
processing is optional.
Account File Test

The Account File test determines whether the Account File lists the account
number in the transaction as an exception account. Stand-In processing
returns an authorization response based on the entry reason in the Account
File and the Stand-In processing decision matrix, as follows:
• If Stand-In processing determines that an account is listed in the Account
File with entry reason F (fraud), L (lost), P (capture card), S (stolen), or X
(counterfeit), it immediately generates a “capture card” response.
• Restricted accounts listed in the Account Management System (AMS)
generate an authorization response of “capture card.”
• Issuers can add restricted accounts to the Account File only by the Account
Management System. These accounts are identified by entry reason R in
the Account File, and always generate an authorization response of
“capture card.”
• If the account is listed with entry reason C (credit), O (other), or U
(unauthorized use), Stand-In processing returns a response based on the
issuer’s Decision Matrix for the Account File test.
• If the account is listed in the Account File with entry reason G (Gold
MasterCard Card account) or V (VIP account), Stand-In processing
continues testing. Stand-In uses the tests that are applicable for these types
of accounts. See “Exceptions and Additions to the Stand-In Process” later
in this chapter.
Expiration Date Test

Stand-In processing always performs the expiration date test.
The expiration date test determines whether the expiration date provided in
the request message is less than the current year and month, or is more than
20 years in the future. Signature-based non-expiring cards (YY/MM of 4912)
are excluded from this test.

Stand-In Processing
Stand-In Tests
M/Chip Cryptogram Validation Test

M/Chip Cryptogram Validation in Stand-In Processing is an optional on-behalf
service.
The M/Chip Cryptogram Validation in Stand-In Processing on-behalf service

supports issuers that process chip transactions on an on-going basis, including
the validation of the authorization request cryptogram (ARQC) and generation
of the authorization response cryptogram (ARPC) on their hosts when the
issuer is signed out, the transaction cannot be delivered to the issuer, or the
issuer timed out.
MasterCard performs the cryptographic support and provides authorization

processing for issuers that use the M/Chip Select 2.0, M/Chip Lite 2.1, and
M/Chip 4.0 (EMV96 and EMV2000 session key derivations). MasterCard also
supports EMV Common Core Definition (CCD), which specifies a minimum
common set of card application implementation options, card application
behaviors, and data element definitions to create a transaction that complies
with EMV standards.
Stand-In processing performs this test only if the transaction meets the
following criteria:
• The issuer has requested participation in this service.

• The transaction contains chip card data elements.
For transactions that qualify for this service, Stand-In processing:
• Validates the ARQC and the TVR/CVR fields according to a default pattern
• Approves or declines the transaction
• Generates the ARPC
• Creates the Authorization Request Response/0110 message
• Creates the Authorization Advice/0120 message
Issuers that want to take advantage of M/Chip Cryptogram Validation in Stand-

In Processing must use the Key Validation Service Specification Form and
follow the procedures in the On-behalf Key Management (OBKM)
Documentation Set.
PIN Verification Test

The PIN Verification in Stand-In processing test is an optional service. Stand-
In processing performs the test only if the issuer has requested participation in
this service.

Stand-In Processing
Stand-In Tests
The PIN Verification in Stand-In processing service processes transactions that

contain unverified PIN data in the Authorization Request/0100 message.
Issuers that want MasterCard to verify the PIN provided in DE 52 (Personal ID

Number [PIN] Data) on transactions processed by Stand-In processing must
provide PIN processing parameters to MasterCard.
WHEN the PIN Data is... THEN Stand-In processing...

Valid Proceeds to the next appropriate Stand-In processing test.
Invalid Sends a response of decline in the Authorization Request
Members that want to take advantage of the PIN Verification in Stand-In

Processing service must use the Key Validation Service Specification Form and
follow the procedures in the On-behalf Key Management (OBKM)
Documentation Set.
See chapter 9 for more information about the PIN Verification in Stand-In
processing service.
CVC 1 Test
The card validation code 1 (CVC 1) test is an optional service.
Stand-In processing performs the test only if the transaction meets the
following criteria:
• The issuer has requested participation in this service.
• The authorization request contains full-unaltered track 1 or track 2 data
and value 80, 90, or 91 in Point-of-Service (POS) Entry Mode field.
A value of 80 indicates that a chip-capable terminal was unable to process a

chip card transaction using data on the chip; therefore, the terminal defaulted
to the magnetic stripe-read PAN. The full track data has been read from the
data encoded on the card and transmitted within the Authorization
Request/0100 in DE 45 (Track 1 Data) or DE 35 (Track 2 Data) without
alteration or truncation. To use this value, the acquirer must be qualified to
use value 90.
A value of 90 indicates that the PAN was entered via magnetic stripe. The full
track data has been read from the data encoded on the card and transmitted
within the authorization request in DE 35 (Track 2 Data) or DE 45 (Track 1
Data) without alteration or truncation.

Stand-In Processing
Stand-In Tests
A value of 91 indicates that the PAN was entered via contactless magnetic
stripe—the full track data has been read from the data on the card and
transmitted within the authorization request in DE 35 (Track 2 Data) or DE 45
(Track 1 Data) without alteration or truncation.
If the transaction meets the criteria for the CVC 1 test, Stand-In processing
verifies that the CVC 1 is valid. If the CVC 1 is not valid, Stand-In processing
uses the Account File Test column of the issuer’s Decision Matrix to determine
a response of either “refer to card issuer” or “decline.”
See chapter 9 for information about signing up for CVC 1 Verification in Stand-
In processing.
Note Stand-In processing does not verify CVC 2 values.
AAV Verification Test

The MasterCard® SecureCode™ Dynamic AAV Verification in Stand-In
Processing test is an optional service.
Issuers may request that Stand-In processing perform the AAV verification test
when the issuer’s host system is unavailable to respond to the Authorization
Request/0100 message containing AAV data.
Stand-In processing forwards to the issuer the Authorization Advice/0120

message where DE 48, subelement 71 (On-behalf Services) contains:
• Subfield 1 (On-behalf [OB] Service) with value 06
• Subfield 2 (On-behalf [OB] Result 1) with value I, U, or V
See chapter 9 for more information about the MasterCard SecureCode Dynamic
AAV Verification in Stand-In processing service.
Merchant Suspicious Test

To perform this test, Stand-In processing examines the authorization request to
determine whether the merchant suspicious indicator is present. If Stand-In
processing finds a merchant suspicious indicator in the request, it generates a
response of “decline.” See DE 61, subfield 8 (POS Transaction Security) field
in the Customer Interface Specification manual for the code representing the
merchant suspicious indicator.

Stand-In Processing
Stand-In Tests
Transaction Limits Test

To perform the Transaction Limits Test, Stand-In processing compares the
applicable amount in the authorization request to the transaction limit
designated by the issuer on the Stand-In Processing Worksheet.
If a mail order/telephone order (MO/TO) transaction exceeds the established

transaction limit, Stand-In processing issues a response of “decline.”
For any other type of transaction, if the transaction exceeds the established
transaction limit, Stand-In processing refers to the issuer’s Decision Matrix to
determine an authorization response. Based on the Decision Matrix, Stand-In
processing either:
• Generates a response of “refer to card issuer” or “decline.” If the account
is a VIP account, Stand-In processing uses the VIP Test section of the
Decision Matrix to determine a response.
• Continues to the next Stand-In test.
Issuers designate transaction limits by combinations of the transaction limits

parameters. Combinations may include any or all of the following parameters:
• Country Code
The country code is a three-digit, numeric code that identifies the country.
Issuers may use these codes to establish higher or lower transaction limits
for a country or countries where the transaction is acquired.
• Promotion Code
The promotion code is a six-character, alphanumeric code that the issuer
establishes to identify transactions that meet the requirements for an
issuer’s promotional program. Issuers may use these codes to establish
particular transaction limits for transactions that meet their program
requirements.
• Cardholder-activated terminal (CAT) level indicator
CAT level indicator is a one-digit, numeric code that identifies transactions
that occur at one of the four types of CATs or that use electronic
commerce or transponder technology (described in chapter 9). Issuers
may use these codes to establish particular transaction limits for CAT
transactions.
• Transaction Category Code (TCC)
TCC is a one-character, alphabetic code that identifies the type of
transaction. Issuers may use these codes to establish particular transaction
limits based on the type of transaction.

Stand-In Processing
Stand-In Tests
• Card Acceptor Business Code/Merchant Category Code (MCC)

MCC is a four-digit, numeric code that identifies the card acceptor
business/merchant category that best describes the business conducted.
Issuers may use these codes to establish higher or lower transaction limits
for certain merchants.
For a list of valid numeric country codes, valid TCCs, and valid MCCs, see the
Quick Reference Booklet . For more information about promotion code
requirements in authorization messages and CAT level values (DE 61, subfield
10), see the Customer Interface Specification.
Parameter Combinations
Parameter combinations are established by BIN or ICA number. Each
combination may include some or all of the following:
• One promotion code
• One cardholder-activated terminal (CAT) level indicator
• Up to 10 specific TCCs or up to 10 specific MCCs
• Up to 10 specific country codes
Issuers may establish as many as 19 of these parameter combinations.

MasterCard requires that three of these combinations be established as CAT
Level 2, In-flight Commerce Gaming, and Transaction Category Code Global
parameter combinations (described later in this chapter).
Issuers also sequence their parameter combinations to instruct Stand-In

processing of the order in which it should apply the specific transaction limits.
Examples of Parameter Combinations
The following examples show parameter combinations that a member can

establish.
Example 1
The issuer instructed Stand-In processing to use a transaction limit of USD

2000 when the card is present and USD 500 when the card is not present,
when the Authorization Request/0100 message also contains promotion code
PM0111 and card acceptor business code/merchant category code (MCC) 5511.
Country code 000 instructs Stand-In processing to apply these limits globally—
regardless of the country where the transaction takes place.

Stand-In Processing
Stand-In Tests
Country Promotion CAT

Code Code Level TCC MCC Transaction Limit
Card Card Not
Present Present
000 PM0111 5511 USD 2000 USD 500
Example 2
The issuer instructed Stand-In processing to use a transaction limit of USD 40

when the card is present and USD 0 when the card is not present, when the
Authorization Request/0100 message also contains country code 454, CAT level
indicator 2, and MCC 5542.

Card Card Not
Present Present
454 2 5542 USD 40 USD 0
Example 3
The issuer instructed Stand-In processing to use a transaction limit of USD

1000 when the card is present and USD 450 when the card is not present,
when the Authorization Request/0100 message also contains Transaction
Category Code (TCC) O and country code 626. The issuer also instructed
Stand-In processing to use a transaction limit of USD 1000 when the card is
present and USD 750 when the card is not present, when the Authorization
Request/0100 message contains TCC H and country code 626.

Card Card Not
Present Present
626 O USD 1000 USD 450

H USD 1000 USD 750
Mandatory MasterCard Parameter Combinations

Issuers must have certain parameter combinations to ensure compliance with
MasterCard-established transaction limits. The three required parameter
combinations are described on the following pages. Each of these parameter
combinations applies to a specific BIN and uses one of the 19 combinations
available to the issuer.

Stand-In Processing
Stand-In Tests
CAT Level 2 (Self-service Terminal) parameter (MasterCard established mandatory

limits)
The following table shows the MasterCard-mandated transaction limits for

transactions containing CAT level indicator 2. Country code 000 shows that
Stand-In processing applies these transaction limits globally.

Card Card Not
Present Present
000 2 T USD 0 USD 0

R USD 100 USD 0
F USD 0 USD 0
O USD 0 USD 0
P USD 0 USD 0
H USD 100 USD 0
A USD 100 USD 0
X USD 100 USD 0
Z USD 0 USD 0
U USD 0 USD 0
C USD 0 USD 0
CAT Level 4 In-flight Commerce Gaming Parameter (MasterCard-established

mandatory limits)
MasterCard limits apply only to in-flight commerce gaming, and not to other
in-flight commerce activity.
The following table shows the MasterCard-mandated transaction limits for In-
flight Commerce Gaming transactions (CAT level indicator 4 with MCC 7995).
MasterCard instructs Stand-In processing to use a transaction limit of USD 350
when the card is present and USD 0 when the card is not present, when the
Authorization Request/0100 message contains CAT level indicator 4 and MCC
7995. Country code 000 shows that Stand-In processing applies these
transaction limits globally.

Stand-In Processing
Stand-In Tests

Card Card Not
Present Present
000 4 7995 USD 350 USD 0
Transaction Category Code Parameter (MasterCard-established minimum limits or

higher issuer-defined limits)
All issuers must have transaction limits by TCC. MasterCard has established
minimum TCC limits, which are defined in chapter 7. Issuers may establish
higher limits for some or all TCCs, and they may establish different limits for
card present and card not present point-of-interaction situations.
Current issuer-defined TCC limits are reported by BIN to each issuer weekly on
the Authorization Parameter Summary Report (SI737010-AA).
MasterCard Processing
To apply transaction limits parameters, MasterCard maintains a matrix for each
issuer that contains all of the parameter combinations for that issuer (up to 19
combinations). Each time an authorization request is forwarded to Stand-In
processing, the system sequentially reviews the matrix, stopping on the first
parameter combination that has matching criteria in the Authorization
Request/0100 message, and using the limits established for that combination to
process the request.
Examples of Application of Transaction Limits Parameter Combinations
Figure 6.3 shows parameter combinations established by an issuer for a

particular BIN. This issuer chose to define three new parameter combinations
(the first three in the matrix) in addition to the three required parameter
combinations (the last three in the matrix). The sixth parameter combination
in the matrix shows that the issuer is using MasterCard default transaction
limits for online issuers (see chapter 7 for default limits) except for a higher
limit defined for TCC A when the card is present.

Stand-In Processing
Stand-In Tests
Figure 6.3—Sample Matrix
Sequence Country Promotion CAT TCC Transaction MCC Transaction

Number Code Code Level TCC Limit MCC Limit
Card Card Not Card Card Not
Present Present Present Present
1 000 PM0111 5511 USD 2000 USD 500

2 454 2 5542 USD 40 USD 0
3 626 O USD 1000 450
H USD 1000 750
4 000 2 T USD 0 0
R USD 100 0
F USD 0 0
O USD 0 0
H USD 100 0
A USD 100 0
X USD 100 0
Z USD 0 0
U USD 0 0
C USD 0 0
P USD 0 0
5 000 4 7995 USD 350 USD 0
6 000 T USD 150 USD 150
R USD 500 USD 500
F USD 225 USD 225
O USD 450 USD 450
H USD 750 USD 750
A USD 500 USD 375
X USD 1125 USD 1125
Z USD 0 USD 0
U USD 150 USD 150
C USD 200 USD 200
P USD 0 USD 0

Stand-In Processing
Stand-In Tests
Example 1
Incoming Authorization Request/0100 message contains the BIN corresponding

to this matrix, country code 626, an indicator that the card is present, TCC O,
MCC 8062, and a transaction amount of USD 750.
For the Transaction Limits section of Stand-In processing, Stand-In reviews the
matrix line by line:
• Because the authorization request does not contain promotion code
PM0111 and MCC 5511, processing continues past the first line.
• Because the request does not contain country code 454, CAT level
indicator 2, and MCC 5542, it also continues past the second line.
• On the third line, country code 626 and TCC O in the matrix match the
country code and TCC in the Authorization Request/0100 message.
Because the matrix does not contain an MCC, processing uses the TCC in
the authorization request and disregards MCC 8062. Therefore, Stand-In
processing applies the transaction limits for this parameter combination.
Because the card is present, Stand-In processing applies a transaction limit of

USD 1000 to this transaction. The transaction amount of USD 750 is less than
the limit, so it will pass this transaction limit test.
Example 2

to this matrix, country code 840, CAT level indicator 2, an indicator that the
card is present, TCC R, MCC 5542, and a transaction amount of USD 75.
Stand-In processing reviews the matrix line by line:

• Because the request does not contain country code 454, CAT level
indicator 2, and MCC 5542, it also continues past the second line.
• Because the request does not contain country code 626 and TCC O or H, it
also continues past the third line.
• On the fourth line, the country code is global (applies to any country), and
CAT level 2 matches the CAT level in the Authorization Request/0100
message. In addition, limits by TCC in the matrix match TCC R in the
authorization request. Therefore, Stand-In processing applies the
transaction limits for this parameter combination.

Stand-In Processing
Stand-In Tests
Because the card is present and the authorization request contains TCC R,
Stand-In processing applies a transaction limit of USD 100 to this transaction.
The transaction amount of USD 75 is less than the limit, so it will pass this
transaction limit test.
Example 3

to this matrix, country code 454, an indicator that the card is not present,
TCC A, MCC 3360, and a transaction amount of USD 450.
Stand-In processing reviews the matrix line by line:

• Although the request does contain country code 454, it does not contain a
CAT level indicator 2 or MCC 5542, and therefore it continues past the
second line.
• Because the request does not contain country code 626 and TCC O or H, it
also continues past the third line.
• Because the request does not contain CAT level indicator 2, processing
continues past the fourth line.
• Because the request does not contain CAT level indicator 4 and MCC 7995,
processing continues past the fifth line.
• On the sixth line, the country code is global (applies to any country), and
limits by TCC in the matrix match TCC A in the authorization request.
Therefore, Stand-In processing applies the transaction limits for this
parameter combination.
Because the card is not present and the authorization request contains TCC A,
Stand-In processing applies a transaction limit of USD 375 to this transaction.
The transaction amount of USD 450 is more than the limit, so it will fail this
transaction limit test.
Accumulative Limits Test

To perform the Accumulative Limits test, Stand-In processing compares the
cumulative number of transactions approved on the current day and over the
previous two, three, and four groups of days with the parameters for those
numbers designated by the issuer.
Stand-In processing also compares the cumulative amount of all transactions

approved on the current day and over the past two, three, and four groups of
days with the parameters for those amounts designated by the issuer.

Stand-In Processing
Stand-In Tests
For example, assume the issuer designated the following accumulative limits:
Current Day two transactions and USD 1200

Day 2 four transactions and USD 1200
A cardholder that had two transactions approved by Stand-In processing for a

total dollar amount of USD 500 on Day 1 would have available a maximum of
two more transactions and USD 700 that could be approved through Stand-In
during the following three days.
For an MO/TO request, if the cumulative number or dollar amount in the

request exceeds the limit established by the issuer, Stand-In processing
generates a response of “decline.”
For any other type of transaction, if the cumulative number or dollar amount in
the request exceeds the limit established by the issuer, Stand-In processing
generates a response of either “refer to card issuer” or “decline,” based on the
Decision Matrix.
Cash Disbursement Accumulator Test

Setting up the cash disbursement accumulator is optional. To perform this test,
Stand-In processing compares the cumulative amount of approved cash
disbursement transactions (with transaction category code C) for the particular
account with the issuer-established limits.
If the transaction amount plus the cumulative amount of cash disbursements

for the account exceed the established limits, Stand-In processing returns a
response of either “refer to card issuer” or “decline,” based on the Decision
Matrix (Accumulative Limits Test column).
Stand-In Response
If Stand-In processing performs all of the tests described earlier without
generating a response of “decline,” “refer to card issuer,” or “capture card,”
Stand-In processing approves the authorization request. It also adds the
transaction amount to the cardholder’s accumulative record in preparation for
the next comparison with the Accumulative Limits.

Stand-In Processing
Exceptions and Additions to the Stand-In Process

Stand-In processing performs the tests as described earlier in the order listed,
until it generates an authorization response. For the following types of
transactions, however, Stand-In processing modifies processing or performs
additional steps:
• Online
• Gold MasterCard® Card
• VIP
• CAPS
Online Transactions
Stand-In processing performs all steps of the testing process as described. In
addition, for online issuers, when Stand-In processing generates an
authorization response of “approved,” “decline,” or “capture card,” it also
creates a store-and-forward (SAF) advice message, which contains the
transaction data for the authorization request. The issuer can retrieve these
SAF messages online (described in chapter 5).
Gold MasterCard Card Accounts

If a Gold MasterCard Card account is within a BIN range (defined to at least 11
digits) containing exclusively Gold MasterCard cards, the Transaction Limits
Test uses the transaction limits established for that Gold range. Issuers
establish Gold MasterCard Card ranges using the Gold MasterCard Card Range
Identification Form (located in the Account Management User Manual). After
an issuer has established a Gold MasterCard Card range, MasterCard deletes
any of the issuer’s individual Gold MasterCard card listings that fall within that
range from the Account File.
If the account is part of a mixed BIN, however, Stand-In processing cannot

determine the program type based on the BIN. To identify the account as a
Gold MasterCard Card account, the issuer must also list the account in the
Account File with entry reason G.
Note If the account is part of a mixed BIN and is not also listed in the Account File
with entry reason G, the Transaction Limits Test defaults to the transaction
limits for the programs other than Gold MasterCard Cards in the BIN range.

Stand-In Processing
VIP Accounts
To identify VIP accounts, issuers establish transaction limits and accumulative
limits in the VIP Controls section of the Stand-In Processing Worksheet.
Stand-In processing proceeds as follows for VIP accounts.
Stage Description
1. If the transaction fails the Transaction Limits Test, Stand-In processing applies
the response designated in the VIP Test section of the Decision Matrix. If the
transaction passes the Transaction Limits Test, Stand-In processing proceeds to
the Accumulative Limits Test.
2. During the Accumulative Limits Test, Stand-In processing applies the Days and
Count Limit parameters designated by the issuer in the VIP Control section of
the Stand-In Processing Worksheet.
3. If the transaction fails the Accumulative Limits Test, Stand-In processing
applies the response designated in the VIP Test section of the Decision Matrix.
4. If the transaction passes the Accumulative Limits Test, Stand-In processing
adds the transaction amount to the VIP accumulation amount for that
cardholder. Stand-In processing compares the sum to the VIP amount
designated in the Account File. If the transaction fails the Accumulative
Amount Test for VIP cards, Stand-In processing applies the response
designated in the VIP Test section of the Decision Matrix.
5. If the transaction passes the Accumulative Amount Test, Stand-In processing
applies the next test.
CAPS Accounts
CAPS issuers list all of their positive accounts as VIP accounts (described in
chapter 8).
If Stand-In processing does not find a CAPS account listed in the Account File
with entry reason V, P, or R, during the Account File test, it generates a
response of “decline.”
In addition, for CAPS issuers, whenever Stand-In processing generates an

authorization response of “decline,” it also creates a record for the CAPS
Sequential Response File with an R in the Response Indicator field and a space
in the Reject Reason field.

7 Setting Stand-In Parameters: Online Issuer
This chapter outlines the responsibilities of online issuers to establish Stand-In
parameters and the procedures for doing so.
Establishing Parameters.......................................................................................7-1
To Complete the Worksheet.........................................................................7-1
Default Values ...............................................................................................7-2
Setting Limits Lower than the MasterCard Minimums ...........................7-2
On Every Page ..............................................................................................7-2
New or Existing Account Ranges .......................................................................7-4
Important Dates...................................................................................................7-4
When Changes are Effective.........................................................................7-4
Telephone Numbers............................................................................................7-5
When Changes Are Effective ........................................................................7-5
Hours of Operation for Call Referral Center ......................................................7-6

One Opening and One Closing Within One Day .................................7-7
Two Openings and Closings Within One Day ......................................7-7
Daylight Saving Time Date Range .........................................................7-8
Coordinated Universal Time (UTC) Offset ............................................7-9
How Stand-In Processing Uses this Information .........................................7-9
Noncompliance Assessments........................................................................7-9


Setting Stand-In Parameters: Online Issuer
Transaction Category Code Global Parameters................................................7-11

Transaction Category Code Local Use Parameters...........................................7-13

Accumulative Limits ..........................................................................................7-15

Accumulative Limits Example ..............................................................7-16

Decision Matrix..................................................................................................7-18
Range Blocking .................................................................................................7-20


How Many Limits You Can Establish...................................................7-23
Using the Expanded Parameter Combinations....................................7-23
VIP Controls.......................................................................................................7-24



Authorization System Manual • April 2006 7-iii
Establishing Parameters
To generate authorization responses, Stand-In processing must have issuer
parameters on file. Issuers establish or update parameters by completing the
Stand-In Processing Worksheet for Online Issuers.
The Stand-In Processing Worksheet for Online Issuers is required for all online
issuers. Issuers must complete at least one worksheet for each issuing ICA
number. Issuers may list multiple account ranges on one worksheet if both of
the following statements are true:
• You are available to respond to call referrals for all listed account ranges at
the phone numbers that you list during the times that you list on the
worksheet.
• You want to establish the same parameters for all listed account ranges.
If different account ranges have different hours of operation for referral

handling or different parameters, you must complete a separate worksheet for
each account range.
To Complete the Worksheet

To complete the Stand-In Processing Worksheet for Online Issuers, follow
these steps.
Step Action
1. Determine how much of the form you need to complete.
IF you are filling out the form… THEN you must complete…
For the first time The entire form
To update your existing parameters Only the applicable pages of the form
2. Copy the appropriate pages of the form. (MasterCard suggests that you
always leave one sample copy in this manual.)
3. Complete the appropriate pages of the form.
4. On each page that you complete, print your name (the person who completed
the form) on the Contact Name line, sign your name on the Contact Signature
line, write your Phone number, and provide the Completed date.

Step Action
5. Fax or mail the completed pages to:
MasterCard International
Attention: Customer Operations Services
USA
Fax: 1-636-722-7192
Default Values
MasterCard has established minimum and maximum values for certain
parameters. The form lists these minimum and maximum values.
• If you do not establish higher limits by writing your higher limits on the
form, MasterCard will apply the minimum limits as default values for your
limits.
• If you want MasterCard to set the minimum limits as your limits, select the
default check box on the form above the place to establish your limits.
Setting Limits Lower than the MasterCard Minimums

If an issuer needs to establish limits that are lower than the MasterCard
minimums for certain transaction category codes (TCCs), the issuer must
request these lower limits in writing. The issuer must receive approval from
MasterCard before establishing limits that are lower than the minimums.
However, an issuer may set lower limits for card acceptor business
code/merchant category code (MCC) 7995 (Gambling) without requesting
approval. For questions about lower limits, please contact the Customer
Operations Services team.
On Every Page
Include the following information on each page of the worksheet:
Account Range: Enter the account range.
ICA: Enter the six-digit ICA number.

Card Program: Enter the three-digit product code for which the values on this
worksheet apply. Valid codes include but are not limited to:
Product Code Card Program

MBE MasterCard® Electronic BusinessCard
MCB MasterCard BusinessCard® Card
MCC Mixed BIN
MCF MasterCard Corporate Fleet Card®
MCG Gold MasterCard® Card
MCO MasterCard Corporate Card™
MCP MasterCard Corporate Purchasing™ Card
MCS MasterCard® Standard Card
MCW World MasterCard™ Card
MCX MasterCard® Card (international use)
MDB MasterCard BusinessCard® debit card
MDG Debit Gold MasterCard®
MDM Maestro® point-of-sale debit program
MDO Debit MasterCard Other
MDP Debit Platinum MasterCard®
MDS Debit MasterCard®
MDW World MasterCard® debit card
MEB MasterCard Executive BusinessCard™
MEC MasterCard® Electronic Commercial
MEO MasterCard Corporate Executive Card™
MPL Platinum MasterCard™ Card
MPP MasterCard® Prepaid Card
MWB World MasterCard BusinessCard™
MWO World MasterCard™ Corporate Card

New or Existing Account Ranges
New or Existing Account Ranges

You must specify if this request is for a new account range or an existing
account range.
IF this request is for… THEN…

A new account range Select the check box before a new account range.
An existing account range Select the check box before an existing account
range.
You should use a separate form for new or existing account ranges.
Important Dates
The important dates section is required.
The important dates section allows you to inform the Customer Operations
Services team of the dates you want the requested account range and ICA
number to be live. Additionally, you can inform the Customer Operations
Services team of the date you intend to begin issuing cards with the requested
account range and ICA number.
How MasterCard Uses this Information

MasterCard will attempt to accommodate your requested live date. Customer
Operations Services will confirm this date, dependent on the receipt of
complete, accurate, and legible information.
When Changes are Effective

Changes submitted in this section will be effective after Customer Operations
Services receives complete, accurate, and legible information. Please confirm
the effective date of these changes with the Customer Operations Services
team.

Telephone Numbers
Telephone Numbers
The telephone numbers section is required.
This section allows you to designate the phone numbers for departments
within your organization that support authorization processes.
How to Complete this Section

Phone Number for Call Referral Center (for the center that will receive the call
referral phone call): Enter the phone number that acquirers use to call for
authorization when you (or Stand-In) issue call referral responses. This is the
phone number to which Global Automated Referral Service (GARS) calls are
connected.
Phone Number for Security Department: Enter the phone number of your
Security Contact (for general security-related issues).
Phone Number for Reporting Lost or Stolen Cards: Enter the phone number that
cardholders call to report a lost or stolen card.
Phone Number for Customer Service: Enter the phone number of the department
or person that receives the calls from cardholders.
Processor Name (if applicable): If you use a processor, enter its name.

The Global Automated Referral Service (GARS) and the Customer Operations
Services team use these phone numbers when contacting the issuer.
When Changes Are Effective

team.

Hours of Operation for Call Referral Center

The hours of operation for call referral center section is required.
This section allows you to specify the times when your call referral center is
available to accept call referrals.

If you are available for call referral handling 24 hours a day, 7 days a week,
select the Check this box for default of open 24 hours, 7 days a week check box.
If you are not available for call referral handling 24 hours a day, 7 days a
week, please read the following explanations:
• The times specified between “Open” and “Close” must include all of the
times that you are available for call referral handling within the hours 00:00–
24:00 on each day. If your call center was open Monday night and is still
open Tuesday morning until 01:00, for example, you must show the first
Open/Close times on Tuesday as: 00:00–01:00.
• The Open time for each associated Close time must be less than the Close
time. If your call center opens at 05:00, for example, it must close later
than 05:00. If the Open time is 05:00, a Close time of 24:00 is valid. If the
Open time is 05:00, a Close time of 01:00 is not valid.
Complete each column as described below. The time in any Open column
may not be earlier than 00:00, and the time in any Close column may not be
later than 24:00.
Step Action
1. In the first column (Open), enter the first time (beginning at 00:00, which is
midnight) that your facility is available to handle call referrals. This could be
as early as 00:00, which may mean that your facility is still open from the
previous night.
2. In the second column (Close), enter the first time during that 24-hour day
(between the hours of 00:00 and 24:00) that your facility is unavailable to
handle call referrals.
3. In the third column (Open), enter the second time during that 24-hour day
(between the hours of 00:00 and 24:00) that your facility opens to handle call
referrals. This time must be greater than the time in the second column.

Step Action
4. In the fourth column (Close), enter the next time during that 24-hour day
(between the hours of 00:00 and 24:00) that your facility stops being available
to handle call referrals. If your facility stays open through the night and into
the next day, you must still enter 24:00 (midnight) as the closing time for this
day. In this case, the next day opens at 00:00 (also midnight).
One Opening and One Closing Within One Day

If you open your facility once and close it once within the same day, between
the hours of 00:00 and 24:00, use the first two columns to record your hours of
operation.
The following example illustrates sample hours of operation for a facility that
is available at these times:
• From 05:00 to 24:00 every day except Sunday
• From 10:00 to 17:00 on Sunday
Example—One Opening and One Closing
Open (HH:MM) Close (HH:MM) Open (HH:MM) Close (HH:MM)

Monday 05:00 24:00 : :
Tuesday 05:00 24:00 : :
Wednesday 05:00 24:00 : :
Thursday 05:00 24:00 : :
Friday 05:00 24:00 : :
Saturday 05:00 24:00 : :
Sunday 10:00 17:00 : :
Two Openings and Closings Within One Day

If you open and close your facility more than once between the hours of 00:00
and 24:00 on any given day, use all four columns to record your hours of
operation. Remember to show all of the times that you are available for call
referral handling within the hours 00:00–24:00 on each day.
is available to handle call referrals during these times:
• Open from 07:00 Monday to 01:00 Tuesday

• Open from 07:00 Tuesday to 01:00 Wednesday

• Open from 07:00 Wednesday to 01:00 Thursday
• Open from 07:00 Thursday to 01:00 Friday
• Open from 07:00 Friday to 01:00 Saturday
• Open from 07:00 Saturday to 01:00 Sunday
• Closed between 01:00 Sunday and 07:00 Monday
Example—Two Openings and Two Closings

Monday 07:00 24:00 : :
Tuesday 00:00 01:00 07:00 24:00
Wednesday 00:00 01:00 07:00 24:00
Thursday 00:00 01:00 07:00 24:00
Friday 00:00 01:00 07:00 24:00
Saturday 00:00 01:00 07:00 24:00
Sunday 00:00 01:00 : :
Daylight Saving Time Date Range

The daylight saving time date range does not apply if the call referral center is
open 24 hours, 7 days a week with no holidays.
If the call referral center is not open 24 hours, 7 days a week with no holidays,
follow these steps.
Step Action
1. IF the local time of your Call
Referral Center… THEN…
Does not use daylight saving time Select the Check this box if the local
time for the Call Referral Center does
not use daylight saving time check
box.
Do not fill out the rest of this section.
Uses daylight saving time Go to step 2.
2. After From: provide the month, day, and year (MMDDYY) and the hour and
minute (HH:MM) that daylight saving time begins (in your local time).
3. After To: provide the month, day, year, hour, and minute that it ends (in your
local time).

Coordinated Universal Time (UTC) Offset

The UTC offset does not apply if the call referral center is open 24 hours, 7
days a week with no holidays.
follow these steps.
Step Action
1. IF local time for your Call
Referral Center is… THEN…
Behind UTC Select the check box before Behind (“-”) UTC.
Ahead UTC Select the check box before Ahead (“+”) UTC.
2. On the same line that you selected the check box, enter the amount of time
difference (in hours and minutes) between the local time for your call referral
center and UTC.
How Stand-In Processing Uses this Information

If Stand-In processes a transaction, Stand-In processing issues call referrals
only during the hours that you establish as “open” on this form. Your call
referral center must be available to take call referrals during the hours that you
establish as open on this form.
Noncompliance Assessments
Issuers must be available to take call referrals during the hours that they
establish as “open” on the Stand-In Processing Worksheet. MasterCard
examines issuer transactions for the week and compares them to the Hours of
Operation that the issuer indicates on this worksheet. Stand-In processing
issues call referrals only during the hours that the issuer establishes as “open.”
Note The issuer is charged a fee for each day that it issues call referrals during the
hours that it establishes as “closed” on the Stand-In Processing Worksheet.
The issuer also is charged a fee for each call referral that it issues during the
hours that it establishes as “closed” on the Stand-In Processing Worksheet.
For more information about noncompliance assessments and for a complete

description of the billing events for authorization services, see the MasterCard

Holidays for Call Referral Center

team.

The holidays for call referral center section is required.
Note Issuers must complete and submit this section of the worksheet every year.
This section tells MasterCard the times when your call referral center
availability differs from the schedule that you provided in the hours of
operation for call referral center section.

To provide information for the holidays for call referral center section, follow
these steps.
Step Action
1. After For Year at the top of the page, enter the year for which these holidays
apply.
2. IF your Call Referral Center… THEN…
Does not close for any holidays Select the Check this box for default of
no holidays check box.
Do not complete any more of this
section.
Closes for holidays Go to step 3.
3. For each day that you will not be available as stated under Call Referral
Center Hours of Operation, enter the month and day under MM/DD.
4. If you can accept call referrals for part of a holiday, enter the times that you
will be available under Open and Close.
If your office will close for the entire day, enter 00:00 under Open and 00:00
under Close.

Transaction Category Code Global Parameters

Stand-In processing issues call referrals only during the hours that you
establish as open in this section. Stand-In processing will not issue call
referrals when your call referral center is closed for a holiday.

Services receives complete, accurate, and legible information. Confirm the
effective date of these changes with the Customer Operations Services team.

The transaction category code (TCC) global parameters section is required.
Provide information in this section only if your account range is a global use
account range.
Note You should only complete page 4 of the worksheet if the account range you are
completing the worksheet for is not a Local Use Only Account Range. If it is a
Local Use Only Account Range, provide information about your TCC parameters
on page 5, “Transaction Category Code Local Use Parameters” and “Transaction
Category Code Global Parameters.”
The TCC global parameters section allows you to set dollar limits for
authorization transactions, based on a variety of parameters, which apply to all
countries. If you want to set Stand-In processing limits in a currency other
than U.S. dollars, you must participate in the Authorization Multiple Currency
Conversion (AMCC) service. For more information about AMCC, see chapter 9.
For information about charges for global limits, see the MasterCard

The worksheet allows you either to choose default limits, which MasterCard
has already established, or to specify your own limits in U.S. dollars or AMCC
currency. You can establish distinct transaction limits for:
• Transaction category codes (TCCs)

• Card present at the point of interaction or card not present at the point of
interaction
IF you want to… THEN…

Use the MasterCard default limits for this Select the Check this box to use the
global parameter combination minimum/default values in U.S. dollars (same
values for card present and card not present)
check box.
Establish transaction limits that are Enter the dollar amounts under the Card
greater than the default limits shown on Present and Card Not Present columns.
the form Note: Issuers may not designate transaction
−Or− limits that are less than the MasterCard
Establish different limits for card present defaults.
and card not present point-of-interaction
situations
Define limits for Stand-In processing in Enter the three-digit currency code.
U.S. dollars or AMCC currency
Have Stand-In processing skip the Enter value A for the Transaction Limits test
Transaction Limits test in the Decision Matrix on page 7 of the
form.
Note: Stand-In processing will apply only
Accumulative Limits if value A appears in
the Decision Matrix for the Transaction
Limits test.

Stand-In processing uses these limits during the Transaction Limits test.
Stand-In applies the limits based on the characteristics of each authorization

request. If the characteristics of the authorization request are TCC O and “card
not present,” for example, Stand-In processing applies the limits that you
established for that particular situation.


Transaction Category Code Local Use Parameters

The transaction category code (TCC) local use parameters section is required
for members using Local Use Only Account Ranges. Provide information in
this section only if your account range is a Local Use Only Account Range.
Note You should only complete page 5 of the worksheet if the account range you are
completing the worksheet for is a Local Use Only Account Range. If it is a
global use account range, provide information about your TCC parameters on
page 4, “Transaction Category Code Global Parameters.”
The TCC local use parameters section allows you to set limits for authorization
transactions, based on a variety of parameters, that apply to the home country
assigned for your Local Use Only Account Range. Additionally, you may
provide TCC global parameters for your Local Use Only Account Range for all
countries except for the home country assigned for your Local Use Only
Account Range.
If you want to set Stand-In processing limits in a currency other than U.S.
dollars, you must participate in the Authorization Multiple Currency
For information about charges for global limits, see the MasterCard

The worksheet allows you to specify your own limits for your Local Use Only
Account Range. You can establish distinct transaction limits for:
• Transaction category codes (TCCs)
• Card present at the point of interaction or card not present at the point of
interaction (POI)

Establish distinct transaction limits for Enter the amounts under the Card Present
different TCCs and Card Not Present columns.
−Or−
Establish different limits for card present
and card not present point-of-interaction
situations


Have Stand-In processing skip the Enter value A for the Transaction Limits test
Transaction Limits test in the Decision Matrix on page 7 of the
form.
Note: Stand-In processing will apply only
Accumulative Limits if value A appears in
the Decision Matrix for the Transaction
Limits test.

Stand-In processing uses these amount limits during the Transaction Limits test.
Stand-In applies the limits based on the data in each authorization request. If
the data in the authorization request is TCC O and card not present, for
example, Stand-In processing applies the limits that you established for that
particular situation.


Accumulative Limits
Accumulative Limits
The accumulative limits section is required.
This section allows you to establish the cumulative number and amount of
transactions allowed over a range of four days.

The worksheet allows you either to choose default values, which MasterCard
has already established, or to specify your own values.
Note Carefully select the values for these fields because a cardholder can easily reach
the limits without spending a large amount.

Use the MasterCard default values Select the Check this box to use the
minimum/default values listed below check
box.
Establish issuer-specific accumulative Enter the limits in the spaces provided,
limits under Number of Approved Transactions
Allowed and Accumulative Approved
Allowed. Enter an amount for each column
and for each of the Day Ranges (1, 2, 3, and
4).
Note: Issuers may not designate
accumulative limits that are less than the
MasterCard defaults.
Note Day 1 of the issuer’s accumulative limit must be equal to or greater than the
issuer’s highest TCC global limit.

Accumulative Limits
Accumulative Limits Example

The following example shows a completed set of accumulative limits.
In this example, which uses the MasterCard default amounts, Stand-In

processing will approve a maximum of four transactions within any span of
four days. Stand-In processing will approve as many as:
• Two transactions on the current day

• Four transactions between the previous day and the current day
• Four transactions across a three-day span
• Four transactions across any four days
Therefore, a cardholder who has had two transactions approved by Stand-In

processing on day 1 could have a maximum of two more transactions
approved by Stand-In processing over the next three days.
In this example, Stand-In processing also can authorize as much as USD 1,200
in transactions. Stand-In processing will approve as much as:
• USD 1,200 on the current day

• USD 1,200 between the previous day and the current day
• USD 1,200 across a three-day span
• USD 1,200 across any four days
Therefore, a cardholder charging USD 600 during the first two days would
have access to USD 600 during the next two days.
Number of Approved Accumulative Approved

Transactions Allowed Amount Allowed
Day Range (Maximum of 99) (Maximum equivalent of USD 99,999)
1 2 1200
2 4 1200
3 4 1200
4 4 1200

Stand-In processing uses these limits during the Accumulative Limits test.
If an authorization request exceeds any of these limits, Stand-In processing

responds according to the parameters that you established in the Decision
Matrix, Accumulative Limit Test column.

Cash Disbursement Accumulative Limits
If the issuer has not established accumulative limits, Stand-In processing uses
the MasterCard default amounts shown on the worksheet.


The cash disbursement accumulative limits section is optional.
The cash disbursement accumulative limits allow you to establish separate

limits specific to cash disbursement.

After Days, specify any number of days (up to 45) to control the velocity of
MasterCard accounts used for cash withdrawal.
After Accumulative Amount Allowed, enter the maximum amount to be

accumulated during the Days range.

Any time an authorization request for a cash disbursement exceeds these

limits, Stand-In processing responds according to the parameters that you
established in the Decision Matrix, Accumulative Limit Test column.
Note Stand-In processing counts cash disbursement transactions when it calculates

the accumulative limits. The values that you establish here for cash
disbursement transactions should not conflict with what you established in the
previous accumulative limits.

Decision Matrix

Decision Matrix
The decision matrix section is required.
This section allows you to specify how Stand-In processing will respond when
a transaction fails any of the following Stand-In processing tests:
• Account File test
• Transaction Limits test
• Accumulative Limits test
• VIP Limits test
This section defines the authorization response that Stand-In processing will
generate in response to an authorization request.

If you want to use the MasterCard default values for the decision matrix, select
the Check this box to use the default values listed below check box.
To specify your own values, designate the following Stand-In responses.
Value Description
C Refer to card issuer.
N Decline—If the test fails and the entry reason in the Account File is C (credit),
U (unauthorized use), or O (other).
Capture Card—If the test fails and the entry reason in the Account File is P
(capture card), F (fraud), L (lost), S (stolen), or X (counterfeit).
A Continue Stand-In processing. Skip the Transaction Limits test and go to the
next Stand-In test.

Decision Matrix
Account File Test: Enter a value to indicate the authorization response that you
want Stand-In processing to generate when one of the following is true:
• The account is listed on the Account File with an entry reason of C (credit),
O (other), or U (unauthorized use).
• The transaction failed the CVC 1 Test.
Entry reasons of F (fraud), L (lost), P (capture card), S (stolen), or X

(counterfeit) always result in a “capture card” response.
Transaction Limits Test: Enter a value to indicate the authorization response that
you want Stand-In processing to generate when it receives an authorization
request that exceeds the Transaction Limits.
Note If you enter value A for the Transaction Limits test, Stand-In will skip the
Expanded Parameter Combinations and the Transaction Category Code Global
Parameters. Stand-In will apply only Accumulative Limits.
Accumulative Limits Test: Enter a value to indicate the authorization response

that you want Stand-In processing to generate when it receives an
authorization request that exceeds the Accumulative Limits.
VIP Limits Test: Enter a value to indicate the authorization response that you
want Stand-In processing to generate when it receives an authorization request
that exceeds the VIP limits.

Stand-In processing uses the instructions in this section when a transaction fails
one of these Stand-In processing tests.
Note If you enter value A for the Transaction Limits test, Stand-In processing will skip
the Expanded Parameters and the Global Limits. As a result, Stand-In
processing will test only the Accumulative Limits.


Range Blocking
Range Blocking
The range blocking section is optional. Issuers use range blocking to combat
fraud.
The range blocking section identifies ranges of card numbers within your
account ranges that you:
• Have not issued to cardholders (and that should be blocked) or
• Blocked previously and now want to unblock.
• For information about the charges for range blocking, see the MasterCard

To complete this section, follow these steps.
Step Action
1. In the From account number column, enter the first 11 digits of the account
number at the beginning of the range. (The first six of the 11 digits must be
the BIN.)
2. In the Through account number column, enter the first 11 digits of the account
number at the end of the range. (The first six of the 11 digits must be the
BIN.)
3. Select the Block check box or Unblock check box to indicate whether this
range of card numbers should be blocked or unblocked.
Note Remember to submit this section of the form again to MasterCard when you
decide to issue cards within these blocked ranges.
Because the most current form entirely replaces all previously requested range
blocks, you must list all range blocks that you require each time you submit the
form.
To unblock a portion of a range that is currently blocked, submit the form

unblocking the entire range that is blocked and submit the new range to be
blocked on the same form.

Expanded Parameter Combinations

Stand-In processing issues a response of “invalid card number” (regardless of
the acquiring country) for any authorization request within the blocked ranges.
Note Range blocking only applies for transactions processed by Stand-In processing.
Card numbers within the blocked ranges do not automatically appear in the
Account Management System (AMS) Electronic Warning Bulletin file.


The expanded parameters section is optional. Issuers use expanded
parameters to help reduce fraud or for special promotional programs.
The expanded parameters section allows you to set limits for authorization
transactions based on a variety of transactions.

has already established, or to specify your own limits.
Country Codes: You can designate as many as 10 individual countries for

which these transaction limits will apply. Use the three-digit country codes
listed in the Quick Reference Booklet. Designate 000 to establish limits that
apply to all countries. If you do not enter a country code, MasterCard will use
000 as the default.

Promotion Code: A promotion code is an alphanumeric code that can be

included in the Authorization Request/0100 message. Stand-In processing can
use the code to identify transactions that apply to an issuer’s promotion
program. The promotion code allows the issuer to use different criteria to
determine authorization responses for transactions that occur at the
participating merchants.
IF you… THEN…
Want these transaction limits to apply to Enter the promotion code.
a specific promotion code
Do not want these transaction limits to Leave these spaces blank.
apply to a specific promotion code
CAT Level: A cardholder-activated terminal (CAT) is a bankcard reading remote

device (usually unattended) that dispenses a product or provides a service. A
CAT must be one of the following types of terminals:
• Automated Dispensing Machine/Level 1
• Self-service Terminal/Level 2
• Limited Amount Terminal/Level 3
• In-flight Commerce Terminal/Level 4
• Electronic Commerce/Level 6
• Transponder/Level 7
IF you… THEN…
Want these transaction limits to apply to Enter the CAT level.
a specific CAT level
Do not want to restrict these transaction Leave this space blank.
limits to a particular CAT level
Currency Code: Enter the three-digit currency code.
Transaction Category Codes or Card Acceptor Business Code/Merchant Category

Codes: Enter values for up to 10 TCCs or up to 10 MCCs. You cannot enter
both TCC and MCC limits. If you enter values only for card present, MasterCard
will apply these values to both card present and card not present situations.

How Many Limits You Can Establish

You can establish as many as 17 sets of limits. To create additional sets of
limits, copy the form as many as 17 times and send it with different
combinations of limits.
In addition, MasterCard also has established two required sets of limits.
Using the Expanded Parameter Combinations

Raise Stand-In processing limits to • Enter the Country Code of that specific
accommodate a seasonal adjustment, country. Enter the transaction limits by
such as a holiday shopping season, in TCC for that country
one country • On a separate page, enter a Country
−And− Code of 000. Enter the transaction
Retain the default limits for all other limits by TCC that apply to all other
acquiring countries acquiring countries.
Set limits for local-use-only cards, that is, • Enter the account range, ICA number,
cards that can be used only within a and card program of the local-use-only
particular country cards.
• Enter the Country Code of the specific
countries in which the cards may be
used. Enter the transaction limits by
TCC for that country.

Stand-In processing uses these amount limits during the Transaction Limits test.
Stand-In processing applies the limits based on the characteristics of each
authorization request. For example, if you establish transaction limits for
country 454, Stand-in processing applies your established limits to all
authorization requests from country 454.


VIP Controls
VIP Controls
The VIP controls section is optional.
This section allows you to set specific limits that Stand-In processing applies to
accounts listed in the Account File as VIP. The VIP designation is a method of
identifying accounts that the issuer wants Stand-In to process differently from
MasterCard cards, BusinessCard cards, and Gold MasterCard cards.

To designate an account as VIP, the issuer enters entry reason V when listing
the account in the Account File. See the Account Management User Manual
for listing procedures.
You must complete all of the options in this field if you are supporting VIP
accounts.
Country Code: Enter the country code to which these VIP limits should apply.
Single Transaction Limit: Enter the maximum amount that you want Stand-In
processing to authorize for any single transaction involving a VIP account.
You must indicate a value in this field if you are supporting VIP accounts. The
amount may not be greater than USD equivalent 99,999. Do not enter zero in
this field. (Entering zero would cause all transactions to fail this test.)
Accumulative Limits: Days: Specify any number of days (up to 99) during
which Stand-In processing should measure the total number of authorization
transactions authorized. The MasterCard default is four.
Transactions: Enter the maximum number of transactions (up to 999) involving

a VIP account that you want Stand-In to authorize during the number of days
specified above. You must indicate a value in this field if you are supporting
VIP accounts. Do not enter zero in this field. Entering zero will cause all
transactions to fail this test.
Currency Code: Enter the three-digit currency code.

Limit-1 Processing

During the Accumulative Limits test for VIP accounts, Stand-In processing
applies the Days and Count Limit parameters designated in this section of the
form.

Limit-1 Processing
The Limit-1 processing section is optional. Issuers should complete this
section only if you want Limit-1 processing.
Limit-1 processing allows the issuer to:

• Route transactions that have small dollar amounts to Stand-In processing.
• Apply all of the Stand-In tests to these transactions.
Issuers most often use Limit-1 processing to control their volume of

transactions. See chapter 2 for more information about Limit-1 processing.

Enter dollar amounts to establish limits for Travel, Retail, Mail/Telephone/
Electronic Commerce, and Cash Disbursement transactions.
Issuer Floor Limit-1 in USD: The values established in this category reside on all
acquirer MIPs. The MIP sends transactions to Stand-In processing if the
amount is less than or equal to the Issuer Floor Limit-1 and all of the following
are true:
• The card number is not listed as a restricted card on the Electronic
Warning Bulletin file.
• The transaction does not include an Address Verification Service Request.
• The transaction was not generated at a cardholder-activated terminal Self-
Service Terminal/Level 2.
• The transaction is not an ATM transaction.
• The transaction does not contain a “merchant suspicious” indicator.

Limit-1 Processing
Nth Transaction: This value tells the acquiring MIP that for every Nth
transaction less than the Issuer Floor Limit-1, the MIP routes the transaction
directly to the issuer for approval. Enter the desired numeric value to establish
the Nth transaction.

Limit-1 processing determines when transactions will be routed to Stand-In
processing based on the U.S. dollar limit and the Nth transaction indicated in
this section of the form.
Note Stand-In processing counts Limit-1 transactions when determining cumulative

amounts. If you establish Limit-1 values, ensure that your Accumulative Limits
support the volume of Limit-1 transactions.


8 Central Authorization Processing Service
This chapter describes the Central Authorization Processing Service (CAPS).
Introduction to CAPS...........................................................................................8-1
Who Are CAPS Members? .............................................................................8-1
How Do CAPS Members Send Data to MasterCard?....................................8-1
When Does CAPS Apply Data to the Account File? ....................................8-1
What Data does MasterCard Provide for Members? ....................................8-2
CAPS Features......................................................................................................8-2
Sending and Retrieving CAPS Files via MasterCard File Express ......................8-4
When to Send the Sequential Account File .................................................8-4
Input File Type Field ..............................................................................8-5
Transmission of Multiple Files................................................................8-5
Entry Reason Field ..................................................................................8-6
Credit Availability Field ..........................................................................8-6
MasterCard Edits .....................................................................................8-6
MasterCard File Express Security ...........................................................8-7
Reporting of Errors in the Sequential Account File...............................8-7
Emergency Maintenance to the Account File ..............................................8-7
Transmission and Effective Times..........................................................8-8
Transmission of a Subsequent Full File Replace ...................................8-8
File Layouts..........................................................................................................8-9
Sequential Account File ................................................................................8-9
Completing the Stand-In Processing Worksheet..............................................8-12

To Complete the Worksheet.......................................................................8-13
Default Values .............................................................................................8-13
Setting Limits Lower than the MasterCard Minimums .........................8-14
On Every Page ............................................................................................8-14
Important Dates.................................................................................................8-14

Central Authorization Processing Service
Telephone Numbers..........................................................................................8-15
Hours of Operation for Call Referral Center ....................................................8-16

One Opening and One Closing Within One Day ...............................8-17
Two Openings and Closings Within One Day ....................................8-17
Daylight Saving Time Date Range .......................................................8-18
Coordinated Universal Time (UTC) Offset ..........................................8-19
Noncompliance Assessments......................................................................8-19


Decision Matrix..................................................................................................8-22
Range Blocking .................................................................................................8-24


How Many Limits You Can Establish...................................................8-26
Using the Expanded Parameter Combinations....................................8-27

VIP Controls.......................................................................................................8-27

Introduction to CAPS
Introduction to CAPS
CAPS provides certain members with a 24-hour authorization service called
Stand-In processing. Stand-In processing (described in chapter 6) provides
authorization responses to acquirers on behalf of the issuer. It uses the
following two types of data that the issuer provides:
• Issuer cardholder listings and available-to-buy amounts that are maintained
in the Account File.
• Issuer-defined parameters for approving authorization transactions.
CAPS members list positive and negative card accounts in the Account File for
authorization responses that prompt the merchant to approve, decline, or
capture the card. All positive card accounts have entry reason V (VIP) for
CAPS listing purposes, including accounts that have standard authorization
limits.
CAPS members also may list restricted accounts in the Account Management
System (AMS) to direct the merchant to capture the card. For information
about listing in AMS, see the Account Management User Manual.
Who Are CAPS Members?

CAPS members do not have MIPs to maintain the Account File; however, they
do have connection to the Banknet® telecommunications network via a PC.
How Do CAPS Members Send Data to MasterCard?

Issuers transmit a CAPS file of cardholder listings (the Sequential Account File)
to MasterCard via the MasterCard File Express transfer facility. Members use
this file to add, update, or delete records from the Account File. (File layouts
for the Sequential Account File appear later in this chapter.) For more
information about CAPS members sending data to MasterCard, contact the
Issuers establish parameters on the Stand-In Processing Worksheet for CAPS

Issuers (see Figure 8.1).
When Does CAPS Apply Data to the Account File?

MasterCard updates the Account File during nightly maintenance with data that
the issuer sends in CAPS files. It modifies issuer parameters whenever the
issuer sends MasterCard a revised Stand-In Processing worksheet.

CAPS Features
Figure 8.1—Flow of Data Between the Issuer and Stand-In Processing
Sequential Account File

Account File
Stand-In
Issuer Stand-In
Worksheet
Daily Activity
Report
What Data does MasterCard Provide for Members?

MasterCard provides the Daily Activity Report that contains supplemental
transaction information, such as reversal transactions performed on behalf of
the issuer; detailed fail codes indicating the reason why Stand-In processing or
X-Code processing declined a transaction; and the authorization approval code
if the transaction was approved. See chapter 10 for a sample of this report.
CAPS Features
CAPS offers members the following features:
• Provision of 100% of authorization responses
CAPS responds to authorization requests on behalf of the issuer 24 hours a
day, 7 days a week.
• Adjustment of cardholder credit
CAPS keeps track of the cumulative number and amount of credit card
transactions it approves. It adjusts available cardholder credit by this
amount before comparing the next authorization request to the available
credit. Whenever the issuer updates the credit available, CAPS resets the
cumulative tally to zero.
• Easy access to the service
CAPS members use the MasterCard File Express transfer facility to transmit
the files between the issuer’s PC and MasterCard.

CAPS Features
• Secure access to the service

The MasterCard security system monitors all access to MasterCard File
Express. The security system allows only authorized personnel to access
and exchange CAPS data through MasterCard File Express.
• File maintenance as needed
Members can transmit requests to add, update, or delete accounts from the
Account File as often as they like to maintain the files—weekly, daily, or
multiple times during the day. MasterCard performs nightly file
maintenance. See “When to Send the Sequential Account File” later in this
chapter.
• Emergency file maintenance
MasterCard allows the issuer to send requests via fax for an emergency
add, update, or delete to the Account File. MasterCard operators apply
these requests periodically throughout the day. See “Emergency
Maintenance to the Account File” later in this chapter.
• Choice regarding the size of transmissions
Issuers can transmit full file replacements or individual record updates.
• Secure data transmission
MasterCard OnLine® compresses and encrypts CAPS data between the
user’s desktop and MasterCard.
• Edited data
MasterCard edits the data submitted by the member to ensure that the data
is valid and that required data elements are present.
• Information to maintain issuer records
MasterCard makes the editing results and file maintenance available,
including emergency file maintenance, to enable the issuer to keep its own
records current. MasterCard creates the Daily Activity Report for this
purpose.

Sending and Retrieving CAPS Files via MasterCard File Express
Sending and Retrieving CAPS Files via MasterCard File

Express
Issuers send and retrieve CAPS files using the MasterCard File Express
software. MasterCard File Express allows issuers to exchange data files from a
PC to MasterCard using a variety of options for connectivity to MasterCard
OnLine. Contact Online Solutions and Services at 1-800-288-3381 (within the
U.S. region) or 1-636-722-6636 (in regions outside the U.S. region) for details
about connectivity options.
MasterCard File Express establishes identification codes for the applications

used to send and unload CAPS files. The following table lists the files
available and the associated MasterCard File Express identification codes.
Application Identification Codes File

RB28 Sequential Account File
RM001 Authorization Velocity Monitoring Report
When to Send the Sequential Account File

Issuers can transmit the Sequential Account File anytime; however, MasterCard
must receive transmissions by 23:00 St. Louis time to be effective with that
day’s maintenance cycle. MasterCard performs CAPS maintenance to the
Account File each night at 24:00 midnight.
Follow these steps to send the Sequential Account File to MasterCard via
MasterCard File Express. Details about particular fields and transmission of
multiple files follow these procedures.
Step Action
1. Create a header record (see Figure 8.3 for field descriptions and valid values).
Each transmission of the file must be in ascending sequence by cardholder
number within ICA number and each ICA number should appear only once
within a transmission.
Note: An incorrect value for ICA number in the header record causes CAPS to
reject the entire transmission.
2. Create detail records (see Figure 8.4).
Note: Do not include duplicate cardholder numbers within an update
transmission. If the system detects a duplicate number, the second record is
rejected.
3. Create a trailer record (see Figure 8.5).

Step Action
4. Place the RB28 file into the MasterCard File Express File Type directory RB28.
5. Start the application and send the RB28 file to MasterCard using the steps
outlined in the MasterCard File Express Client Users’ Guide.
Input File Type Field

In the Input File Type field, issuers may choose either F (full file replace) or U
(update batch).
• Full file replace replaces card numbers at the bank identification number
(BIN) level. If an ICA number is associated with multiple BINs, only the
BINs submitted for the full file replace are affected.
Select the full file replace option in this field to establish a file at
MasterCard for the first time.
• Update batch replaces card numbers at the account level. An update
transmission affects only the account numbers present in the detail records.
Issuers must establish an entire transmission as either a full file replace or as

an update.
Note CAPS rejects all records in any transmission that includes headers with both the
full file replace code and the update code.
Transmission of Multiple Files

Exercise caution when transmitting multiple files within a single MasterCard
processing cycle (same day). CAPS applies transmissions in order of the date
and time that you created them (recorded in the Transmittal ID field of the
header and trailer records). This order becomes critical when the following
situations occur:
• If you send two full file replace transmissions in one day, CAPS rejects the
first transmission and accepts the second.
• If you send an update transmission followed by a full file replace
transmission on the same day, the system rejects the update transmission
and processes the full file replace.
This logic applies to multiple ICA number transmissions also.

Entry Reason Field

In the Entry Reason field, issuers can choose one of the following entry reason
values.
Entry Reason Description

V (VIP card) Prompts Stand-In processing to initiate the Stand-In processing tests
described in chapter 6 to determine an authorization response
P (Capture Prompts Stand-In processing to issue an authorization response of
card) capture card
R (Decline) Prompts Stand-In processing to issue an authorization response of
decline.
Credit Availability Field

The issuer can update the credit available by submitting a Sequential Account
File Record with 217 (Add/Update) in the Record Code field, and the correct
dollar amount in the Credit Availability field. The new 217 record replaces the
values from the previous Sequential Account File record.
To maintain accurate records of available credit for each cardholder, the CAPS
issuer must refer to the Issuer CAPS Authorization Detail Report in addition to
the CAPS files. This report shows transactions that X-Code processing
approved when CAPS was unavailable. (See chapter 2 for an explanation of
X-Code processing.) Because this type of processing occurs only when CAPS
cannot be reached, CAPS does not report it in a CAPS file and does not adjust
cardholder credit limits for these transactions.
CAPS issuers receive the Issuer CAPS Authorization Detail Report automatically.
See the MasterCard Consolidated Billing System Reports manual for a layout of
this report.
MasterCard Edits
Edits verify that the issuer PC is set up to send for that particular ICA number.
During nightly processing, it also verifies that the ICA number is set up for
CAPS and that all detail records are for the same ICA number. Finally, it edits
the Sequential Account File to ensure that the BIN is valid and that required
data elements are present.

MasterCard File Express Security

All data files sent to MasterCard are associated with the user’s ICA number and
endpoint. MasterCard File Express authenticates each user during the login
process. MasterCard File Express then determines which file types the user is
eligible to access, and provides the authenticated user access only to those file
types.
Reporting of Errors in the Sequential Account File

MasterCard File Express returns error messages in the Daily Account File
Activity Report. See the Account Management User Manual for a sample of
the Daily Account File Activity Report. Correct and resubmit rejected
transactions as appropriate.
Emergency Maintenance to the Account File

In an emergency situation, issuers can send adds, updates, or deletes to the
MasterCard Global Service Center. The Global Service Center enters these file
maintenance requests online.
Follow these steps for emergency file maintenance requests.
Before you need this service, send a letter on your letterhead stationery to your
MasterCard Customer Operations Services representative stating the name and
signature of all persons authorized to make an emergency update request.
(You may require dual signatures on emergency update requests; if you do,
state this in the letter.) MasterCard keeps the letter in your file and sends a
copy to the Global Service Center.
When you need this service, follow these steps.

Step Action
1. Type your request on letterhead stationery. Include the following information:
• The words EMERGENCY ACCOUNT FILE MAINTENANCE as the subject of
the letter
• The words EMERGENCY ACCOUNT FILE MAINTENANCE as the subject of
the letter
• Your ICA number
• The cardholder number(s) you want to add, update, or delete
• File maintenance action(s): Add, Update, or Delete
• The entry reason (for Add and Update requests only): V (VIP), R
(Decline), or P (Capture Card)
• Credit limits (for Add and Update VIP accounts only)
• Authorized signatures
2. Send the request to MasterCard via fax to 1-636-722-7192.
Transmission and Effective Times

Issuers can request emergency file maintenance anytime. Personnel at the
MasterCard Global Service Center perform the file maintenance every two
hours on the even hour (St. Louis time), 7 days a week:
• 00:00 (midnight)
• 02:00
• 04:00
• 06:00
• 08:00
• 10:00
• 12:00 (noon)
• 14:00
• 16:00
• 18:00
• 20:00
• 22:00
Transmission of a Subsequent Full File Replace

If you send a full file replace transmission after requesting emergency file
maintenance, verify that you included in the full file replace the change
affected by your emergency request. If you do not, the full file replace
transmission will negate the emergency change made by the Global Service
Center.

File Layouts
File Layouts
The following pages include the file layouts for the Sequential Account File.
Sequential Account File

The Sequential Account File transmitted to MasterCard must contain the
records shown in Figure 8.2.
Figure 8.2—Sequential Account File Records
Record Type Description

253 Identifies the ICA header record and processing options. The
information defined in the header record identifies the type of file.
217 Identifies an Add/Update Detail record. The same record type is
used for both full file replace and update files.
223 Identifies a Delete Detail record. Delete records are present only
on update files.
263 Identifies the ICA trailer record. A trailer must follow all the detail
records submitted for an ICA number.
Figure 8.3——Sequential Account File ICA Header Record
Field Name Position Length Comments/Valid Values

Transaction Code 1–3 3 Code indicating the type of record.
Valid value: 253
Issuer ICA Number 4–9 6 Requesting issuer’s customer identification
number.
Report Control 10–10 1 Constant value: 0
Account File Indicator 11–11 1 Code identifying this record as one that
will go to the Account File.
Valid value: P
Member Type 12–12 1 Code identifying the location of the
member.
Valid values:
D = Member in the U.S. region
I = Member in a region outside the
U.S. region

File Layouts

Input File Type 13–13 1 Code indicating the type of file
maintenance requested.
Valid values:
F = Full file replace
U = Update batch
Transmittal ID 14–22 9 The Julian date, hour, and minute the
member created the file.
Note: All ICA headers in a transmission
must have the same Transmittal ID.
Format: YYJJJHHMM
YY = year
JJJ = day
HH = hour
MM = minute
Note: The Transmittal ID field will be
zeros when the initial full file replace is
transmitted for an ICA number.
Last Update Info 23–31 9 The Julian date and hour/minutes stamp
from the last Sequential Account File the
member used to update its cardholder
account listing at MasterCard.
Format: YYJJJHHMM
YY = Year
JJJ = Day
HH = Hour
MM = Minute
Filler 32–50 19 Valid values: spaces

File Layouts
Figure 8.4—Sequential Account File Detail Record

Valid values:
217 = Add/Update record
223 = Delete record
Note: Only the Record Code and
Cardholder Number fields are used when
validating Delete records.
Cardholder Number 4–19 16 Number that is embossed, encoded, or
both on the card. Issuers may input only
those account numbers that contain their
assigned BINs.
Format: Right-justified with leading zeros
Note: No check-digit verification is
performed. The cardholder number is
processed as presented.
Entry Reason 20–20 1 Reason for listing this card.
Valid values:
V = VIP card
P = Capture Card
R = Decline
Credit Availability 21–29 9 Cumulative dollar limit for this account in
U.S. dollars.
Format: Zero-fill for requests with entry
reasons other than “V.” For requests with
entry reason V, enter amounts in whole
dollars (for example, 5000 for USD
5,000.00).
Filler 30–50 21 Constant spaces

Completing the Stand-In Processing Worksheet
Figure 8.5—Sequential Account File ICA Trailer Record

Valid value: 263
Issuer ICA Number 4–9 6 Echo of the header record.
Transmittal ID 10–18 9 Echo of the header record.
Note: When data for multiple ICA
numbers are transmitted in one file, the
same information must be included in the
transmittal ID for each ICA number.
Record Count 19–27 9 The total number of detail records for this
ICA number.
Format: Zero-filled; right-justified
Filler 28–50 23 Constant spaces

To generate authorization responses, Stand-In processing must have issuer
parameters on file. Issuers establish or update parameters by completing the
Stand-In Processing Worksheet for CAPS Issuers (Stand-In Processing
worksheet).
The Stand-In Processing worksheet is required for all CAPS issuers. You must
complete at least one worksheet for each issuing ICA. You may list multiple
bank identification numbers (BINs) on one worksheet if both of the following
statements are true:
• You are available to respond to call referrals for all listed BINs at the
phone numbers that you list during the times that you list on the
worksheet.
• You want to establish the same parameters for all listed BINs.
If different BINs have different hours of operation for referral handling or

different parameters, you must complete a separate worksheet for each BIN.

To Complete the Worksheet

To complete the Stand-In Processing worksheet, follow these steps.
Step Action
1. Determine how much of the form you need to complete.
IF you are filling out the form… THEN you must complete…
For the first time The entire form
To update your existing parameters Only the applicable pages of the form.
2. Copy the appropriate pages of the form. (MasterCard suggests that you
always leave one sample copy in this manual.)
3. Complete the appropriate pages of the form.
4. On each page that you complete, print your name (the person who completed
the form) on the Contact Name line, sign your name on the Contact Signature
line, print your Phone number, and provide the date (the Completed date).
5. Fax or mail the completed pages to:
MasterCard International
Attention: Customer Operations Services
USA
Fax: 1-636-722-7192
Default Values
MasterCard has established minimum and maximum values for certain
parameters. The form lists these minimum and maximum values.
• If you do not establish higher limits by writing your higher limits on the
form, MasterCard will apply the minimum limits as default values for your
limits.
• If you want MasterCard to set the minimum limits as your limits, select the
default box on the form above the place to establish your limits.

Important Dates
Setting Limits Lower than the MasterCard Minimums

If an issuer needs to establish limits that are lower than the MasterCard
minimums for certain transaction category codes (TCCs), the issuer must
request these lower limits in writing. The issuer must receive approval from
MasterCard before establishing limits that are lower than the minimums.
However, an issuer may set lower limits for card acceptor business
code/merchant category code (MCC) 7995 (Gambling) without requesting
approval. For questions about lower limits, contact the Customer Operations
Services team.
On Every Page
Include the following information on each page of the worksheet:
BIN: Enter the bank identification number.
ICA: Enter the six-digit ICA number.
Card Program: For MasterCard use. All CAPS accounts are established as VIP
accounts.
Important Dates
The important dates section is required.
This section allows you to inform Customer Operations Services of the dates
you want the requested BIN and ICA number to be live. Additionally, you can
inform the Customer Operations Services team of the date you intend to begin
issuing cards with the requested BIN and ICA number.

MasterCard will attempt to accommodate your requested live date.
Note Customer Operations Services will confirm this date, dependent on the receipt
of complete, accurate, and legible information.

Telephone Numbers

Telephone Numbers
The telephone numbers section is required.
This section allows you to designate the phone numbers for departments
within your organization that support authorization processes.

Phone Number for Call Referral Center (for the center that will receive the call
referral phone call): Enter the phone number acquirers use to call for
authorization when you (or Stand-In processing) issue call referral responses.
This is the phone number to which Global Automated Referral Service (GARS)
calls are connected.
Phone Number for Security Department: Enter the phone number of your
Security Contact (for general security-related issues).
Phone Number for Reporting Lost or Stolen Cards: Enter the phone number that
cardholders call to report a lost or stolen card.
Phone Number for Customer Service: Enter the phone number of the department
or person that receives the calls from cardholders.
Processor Name (if applicable): If you use a processor, enter its name.

The Global Automated Referral Service (GARS) and the Customer Operations
Services team use these phone numbers when contacting the issuer.



The hours of operation for call referral center section is required.
This section allows you to specify the times when your call referral center is
available to accept call referrals.

If you are available for call referral handling 24 hours a day, 7 days a week,
select the Check box for default of open 24 hours, 7 days a week check box.
If you are not available for call referral handling 24 hours a day, 7 days a
week, read the following explanations:
• The times specified between “Open” and “Close” must include all of the
times that you are available for call referral handling within the hours 00:00–
24:00 on each day. If your call center was open Monday night and is still
open on Tuesday morning until 01:00, for example, you must show the
first Open/Close times on Tuesday as 00:00–01:00.
• The Open time for each associated Close time must be less than the Close
time. If your call center opens at 05:00, for example, it must close later
than 05:00. If the Open time is 05:00, a Close time of 24:00 is valid. If the
Open time is 05:00, a Close time of 01:00 is not valid.
Complete each column as described below. The time in any Open column
may not be earlier than 00:00 and the time in any Close column may not be
later than 24:00.
Step Action
1. In the first column (Open), enter the first time (beginning at 00:00, which is
midnight) that your facility is available to handle call referrals. This could be
as early as 00:00, which means that your facility is still open from the previous
night.
2. In the second column (Close), enter the first time during that 24-hour day
to handle call referrals.
3. In the third column (Open), enter the second time during that 24-hour day
(between the hours of 00:00 and 24:00) that your facility opens to handle call
referrals. This time must be greater than the time in the second column.

Step Action
4. In the fourth column (Close), enter the next time during that 24-hour day
to handle call referrals. If your facility stays open through the night and into
the next day, you must still write 24:00 (midnight) as the closing time for this
day. In this case, the next day opens at 00:00 (also midnight).
One Opening and One Closing Within One Day

If you open your facility once and close it once within the same day, between
the hours of 00:00 and 24:00, use the first two columns to record your hours of
operation.
is available at the following times:
• From 05:00 to 24:00 every day except Sunday
• From 10:00 to 17:00 on Sunday
Example—One Opening and One Closing

Monday 05:00 24:00 : :
Tuesday 05:00 24:00 : :
Wednesday 05:00 24:00 : :
Thursday 05:00 24:00 : :
Friday 05:00 24:00 : :
Saturday 05:00 24:00 : :
Sunday 10:00 17:00 : :
Two Openings and Closings Within One Day

If you open and close your facility more than once between the hours of 00:00
and 24:00 on any given day, you should use all four columns to record your
hours of operation. Remember to show all of the times that you are available
for call referral handling within the hours 00:00–24:00 on each day.
is available to handle call referrals during the following times:
• Open from 07:00 Monday to 01:00 Tuesday

• Open from 07:00 Tuesday to 01:00 Wednesday

• Open from 07:00 Wednesday to 01:00 Thursday
• Open from 07:00 Thursday to 01:00 Friday
• Open from 07:00 Friday to 01:00 Saturday
• Open from 07:00 Saturday to 01:00 Sunday
• Closed between 01:00 Sunday and 07:00 Monday
Example—Two Openings and Two Closings

Monday 07:00 24:00 : :
Tuesday 00:00 01:00 07:00 24:00
Wednesday 00:00 01:00 07:00 24:00
Thursday 00:00 01:00 07:00 24:00
Friday 00:00 01:00 07:00 24:00
Saturday 00:00 01:00 07:00 24:00
Sunday 00:00 01:00 : :
Daylight Saving Time Date Range

The daylight saving time date range does not apply if the call referral center is
open 24 hours, 7 days a week with no holidays.
follow these steps.
Step Action
1. IF the local time of your Call
Referral Center… THEN…
Does not use daylight saving time Select the Check this box if the local
time for the Call Referral Center does
not use daylight saving time check
box.
Do not fill out the rest of this section.
Uses daylight saving time Go to step 2.
2. After “From:” provide the month, day, and year (MMDDYY) and the hour and
minute (HHMM) that daylight saving time begins (in your local time).
3. After “To:” provide the month, day, year, hour, and minute that it ends (in
your local time).

Coordinated Universal Time (UTC) Offset

The UTC offset does not apply if the call referral center is open 24 hours, 7
days a week with no holidays.
follow these steps.
Step Action
1. IF local time for your Call
Referral Center is… THEN…
Behind UTC Select the check box before Behind (“-”) UTC.
Ahead UTC Select the check box before Ahead (“+”) UTC.
2. On the same line that you selected the check box, enter the amount of time
difference (in hours and minutes) between the local time for your call referral
center and UTC.

If Stand-In processes a transaction, Stand-In processing issues call referrals
only during the hours that you establish as “open” on this form. Your call
referral center must be available to take call referrals during the hours that you
establish as “open” on this form.
Noncompliance Assessments
Issuers must be available to take call referrals during the hours that they
establish as “open” on the Stand-In Processing worksheet. MasterCard
examines issuer transactions for the week and compares them to the Hours of
Operation that the issuer indicates on this worksheet. Stand-In processing
issues call referrals only during the hours that the issuer establishes as “open.”
The issuer is charged a fee for each day that it issues call referrals during the
hours that it establishes as “closed” on the Stand-In Processing worksheet. The
issuer also is charged a fee for each call referral that it issues during the hours
that it establishes as “closed” on the Stand-In Processing worksheet.
For more information about noncompliance assessments and for a complete

description of the billing events for authorization services, see the MasterCard



The holidays for call referral center section is required.
Note Issuers must complete and submit this section of the worksheet every year.
This section tells MasterCard the times when your call referral center
availability differs from the schedule that you provided in the hours of
operation for call referral center section.

To complete the holidays for call referral center section, follow these steps.
Step Action
1. After For Year at the top of the page, enter the year for which these holidays
apply.
2. IF your Call Referral Center… THEN…
Does not close for any holidays Select the Check this box for default of
no holidays check box.
Do not complete any more of this
section.
Closes for holidays Go to step 3.
3. For each day that you will not be available as stated under Call Referral
Center Hours of Operation, enter the month and day under MM/DD.
4. If you can accept call referrals for part of a holiday, enter the times that you
will be available under Open and Close.
If your office will close for the entire day, enter 00:00 under Open and 00:00
under Close.


Stand-In processing issues call referrals only during the hours that you
establish as “open” in this section. Stand-In processing will not issue call
referrals when your call referral center is closed for a holiday.


The cash disbursement accumulative limits section is optional.
This section allows you to establish separate limits specific to cash

disbursement.

After Days, specify any number of days (up to 45) to control the velocity of
MasterCard accounts used for cash withdrawal.
After Accumulative Dollars Allowed, enter the maximum U.S. dollar amount to
be accumulated during the Days range.

Any time an authorization request for a cash disbursement exceeds these

limits, Stand-In processing responds according to the parameters that you
established on the Decision Matrix in the Accumulative Limit Test column.
Note Stand-In processing counts cash disbursement transactions when it calculates

the accumulative limits. The values that you establish here for cash
disbursement transactions should not conflict with what you established in the
previous accumulative limits.

Decision Matrix

Decision Matrix
The decision matrix section is required.
This section allows you to specify how Stand-In processing will respond when
a transaction fails any of the following Stand-In processing tests:
• Account File test
• Transaction Limits test
• Accumulative Limits test
• VIP Limits test
This section defines the authorization response that Stand-In processing will
generate in response to an authorization request.

If you want to use the MasterCard default values for the decision matrix, select
the Check this box to use the default values listed below check box.
To specify your own values, designate the following Stand-In processing

responses.
Code Stand-In Processing Response Descriptions

C Refer to card issuer.
N Decline—If the test fails and the entry reason in the Account File is C
(credit), U (unauthorized use), or O (other).
Capture Card—If the test fails and the entry reason in the Account File is
P (capture card), F (fraud), L (lost), S (stolen), or X (counterfeit).
A Continue Stand-In processing. (Skip the Transaction Limits test and go to
the next Stand-In processing test.)

Decision Matrix
Account File Test: Enter a value to indicate the authorization response that you
want Stand-In processing to generate when one of the following is true:
• The account is listed on the Account File with an entry reason of C (credit),
O (other), or U (unauthorized use).
• The transaction failed the CVC 1 Test.
Entry reasons of F (fraud), L (lost), P (capture card), S (stolen), or X

(counterfeit) always result in a capture card response.
Transaction Limits Test: Enter a value to indicate the authorization response that
you want Stand-In processing to generate when it receives an authorization
request that exceeds the Transaction Limits.
the Expanded Parameter Combinations and the Transaction Category Code
Global Parameters. Stand-In processing will apply only Accumulative Limits.
Accumulative Limits Test: Enter a value to indicate the authorization response

that you want Stand-In processing to generate when it receives an
authorization request that exceeds the Accumulative Limits.
VIP Limits Test: Enter a value to indicate the authorization response that you
want Stand-In processing to generate when it receives an authorization request
that exceeds the VIP limits.

Stand-In processing uses the instructions in this section when a transaction fails
one of these Stand-In processing tests.
the Expanded Parameters and the Global Limits. As a result, Stand-In
processing will test only the Accumulative Limits.


Range Blocking
Range Blocking
The range blocking section is optional. Issuers use range blocking to combat
fraud.
The range blocking section identifies ranges of card numbers within your BINs
that you:
• Have not issued to cardholders (and that should be blocked), or
• Blocked previously and now want to unblock
For information about the charges for range blocking, see the MasterCard

To prepare this section of the form, follow these steps.
Step Action
1. In the From account number column, enter the first 11 digits of the account
number at the beginning of the range. (The first six of the 11 digits must be
the BIN.)
2. In the Through account number column, enter the first 11 digits of the account
number at the end of the range. (The first six of the 11 digits must be the
BIN.)
3. Select Block or Unblock to indicate whether this range of card numbers should
be blocked or unblocked.
Note Remember to submit this section of the form again to MasterCard when you
decide to issue cards within these blocked ranges.
Because the most current form entirely replaces all previously requested range
blocks, you must list all range blocks that you require each time you submit the
form.
To unblock a portion of a range that is currently blocked, submit the form

unblocking the entire range that is blocked and submit the new range to be
blocked on the same form.


Stand-In processing issues a response of “invalid card number” (regardless of
the acquiring country) for any authorization request within the blocked ranges.
Note Range blocking only applies for transactions processed by Stand-In processing.
Card numbers within the blocked ranges do not automatically appear in the
Account Management System (AMS) electronic warning bulletin file.


The expanded parameters section is optional. Issuers use expanded
parameters for helping to reduce fraud and for special promotional programs
The expanded parameters section allows you to set dollar limits for
authorization transactions based on a variety of transactions.

has already established, or to specify your own limits.
Country Codes: You can designate as many as 10 individual countries for

which these transaction limits will apply. Use the three-digit country codes
listed in the Quick Reference Booklet. Designate 000 to establish limits that
apply to all countries. If you do not enter a country code, MasterCard will use
000 as the default.
Promotion Code: A promotion code is an alphanumeric code that can be

included in the Authorization Request/0100 message. Stand-In processing uses
the code to identify transactions that apply to an issuer’s promotion program.
The promotion code allows the issuer to use different criteria to determine
authorization responses for transactions that occur at the participating
merchants.

IF you… THEN…
Want these transaction limits to apply to Enter the promotion code.
a specific promotion code
Do not want these transaction limits to Leave these spaces blank.
apply to a specific promotion code
CAT Level: A cardholder-activated terminal (CAT) is a bankcard reading remote

device (usually unattended) that dispenses a product or provides a service. A
CAT must be one of the following types of terminals:
• Automated Dispensing Machine/Level 1
• Self-service Terminal/Level 2
• Limited Amount Terminal/Level 3
• In-flight Commerce Terminal/Level 4
• Electronic Commerce/Level 6
• Transponder/Level 7
IF you… THEN…
Want these transaction limits to apply to Enter the CAT level.
a specific CAT level
Do not want to restrict these transaction Leave this space blank.
limits to a particular CAT level
Transaction Category Codes or Card Acceptor Business Code/Merchant Category

Codes: Enter values in U.S. dollars for up to 10 TCCs or up to 10 MCCs. You
cannot enter both TCC and MCC limits. If you enter values only for card present,
MasterCard will apply these values to both card present and card not present
situations.
How Many Limits You Can Establish

You can establish as many as 17 sets of limits. To create additional sets of
limits, copy the form as many as 17 times and send it with different
combinations of limits.
In addition, MasterCard also has established two required sets of limits.

VIP Controls
Using the Expanded Parameter Combinations

• Raise Stand-In processing limits to • Enter the Country Code of that specific
accommodate a seasonal adjustment, country. Enter the transaction limits by
such as a holiday shopping season in TCC for that country, and
one country, and • On a separate page, enter a Country
• Retain the default limits for all other Code of 000. Enter the transaction
acquiring countries limits by TCC that apply to all other
acquiring countries.
Set limits for local-use-only cards; that is, • Enter the BIN, ICA, and card program
cards that can be used only within a of the local-use-only cards.
particular country • Enter the Country Code of the specific
countries in which the cards may be
used. Enter the transaction limits by
TCC for that country.

Stand-In processing uses these dollar limits during the Transaction Limits test.
Stand-In processing applies the limits based on the characteristics of each
authorization request. If you establish transaction limits for country 454, for
example, Stand-In processing applies your established limits to all
authorization requests from country 454.

VIP Controls
The VIP controls section is optional.
This section allows you to set specific limits that Stand-In processing applies to
accounts listed in the Account File as VIP. The VIP designation is a method of
identifying accounts that the issuer wants Stand-In to process differently from
MasterCard® cards, MasterCard® BusinessCard cards, and Gold MasterCard®
cards.

VIP Controls

To designate an account as VIP, the issuer enters an Entry Reason of V when
listing the account in the Account File. For listing procedures, see the Account
Management User Manual.
You must complete all of the options in this field if you are supporting VIP
accounts.
Country Code: Enter the country code to which these VIP limits should apply.
Single Transaction Limit: Enter the maximum amount that you want Stand-In
processing to authorize for any single transaction involving a VIP account.
You must indicate a value in this field if you are supporting VIP accounts. The
amount may not be greater than USD 99,999. Do not enter zero in this field.
Entering zero will cause all transactions to fail this test.
Accumulative Limits Days: Specify any number of days (up to 99) during which
Stand-In processing should measure the total number of authorization
transactions authorized. The MasterCard default is four.
Transactions: Enter the maximum number of transactions (up to 999) involving

a VIP account that you want Stand-In processing to authorize during the
number of days specified above. You must indicate a value in this field if you
are supporting VIP accounts. Do not enter zero in this field. (Entering zero
will cause all transactions to fail this test.)

During the Accumulative Limits test for VIP accounts, Stand-In processing
applies the Days and Count Limit parameters designated in this section of the
form.


9 Authorization Services Detail
This chapter describes MasterCard services that interface with and add value to
the MasterCard Authorization System. This chapter also includes information
about requesting and using these services.
Account Balance Response.................................................................................9-1
Account Management..........................................................................................9-2
Account Management System.......................................................................9-2
Account File ..................................................................................................9-2
Recurring Payment Cancellation Service (RPCS) .........................................9-3
Blocking Ranges of Accounts .......................................................................9-3
Address Verification Service................................................................................9-5

Participation Requirements ...........................................................................9-5
Indicating AVS Participation during Sign-in.................................................9-5
AVS Process...................................................................................................9-5
Address Key ..................................................................................................9-6
Issuer Procedures ........................................................................................9-10
Authorization Multiple Currency Conversion...................................................9-11

Using AMCC ................................................................................................9-11
Signing Up for AMCC..................................................................................9-11
Participating in AMCC.................................................................................9-11
Data Elements Used by AMCC ...................................................................9-12
AMCC Processing Logic ..............................................................................9-12
Acquirer Processing Logic ..........................................................................9-13
Issuer Processing Logic...............................................................................9-14
Examples of AMCC Processing...................................................................9-15
Balance Inquiries...............................................................................................9-23
ATM Balance Inquiries................................................................................9-23
Point-of-Sale (POS) Terminal Balance Inquiries........................................9-24
Card Level Support............................................................................................9-26
Card Validation Code 1 Verification in Stand-In Processing ...........................9-27

Assigning Multiple Sets of DES Keys to an Account Range......................9-27
Assigning the Same Set of DES Keys to an Account Range......................9-27

Authorization Services Detail
Reporting CVC 1 Verification in Stand-In Processing................................9-34
Card Validation Code 2 Verification .................................................................9-35

CVC 2...........................................................................................................9-35
Conditions for CVC 2 Verification ..............................................................9-35
Participation Requirements .........................................................................9-35
Authorization System Processing Flow Diagrams......................................9-37
Card Validation Code Verification for Emergency Card Replacements ..........9-43

How to Request CVC Verification for ECR Service....................................9-43
Use of CVC Keys.........................................................................................9-43
Cardholder-activated Terminals ........................................................................9-44

Types of CATs .............................................................................................9-44
Automated Dispensing Machines ...............................................................9-44
Self-service Terminals .................................................................................9-45
Limited Amount Terminals .........................................................................9-45
In-flight Commerce .....................................................................................9-46
Electronic Commerce Transactions ............................................................9-48
Transponder Transactions ..........................................................................9-48
Check Guarantee...............................................................................................9-49
Requirements for Authorization Request/0100 Messages..........................9-49
Requirements for Authorization Request Response/0110 Messages.........9-49
Country Level Authorization .............................................................................9-50

Process for Country Level Authorization ...................................................9-50
Electronic Commerce ........................................................................................9-51

Member Requirements ................................................................................9-51
Process for an Electronic Commerce Transaction .....................................9-51
Types of Electronic Commerce Transactions.............................................9-52
Flow of an Electronic Commerce Authorization Transaction ...................9-53
Expired Card Override ......................................................................................9-57

System Definition of an Expired Card........................................................9-57
Expired Card Tests ......................................................................................9-57
Fleet Card Transactions.....................................................................................9-62

Incentive Interchange Rates........................................................................9-62
Messages......................................................................................................9-62
Fleet Card Authorization Response ............................................................9-63

Initiating Fleet Card Support.......................................................................9-63
Global Automated Referral Service...................................................................9-64

Benefits of Using GARS ..............................................................................9-64
GARS Process ..............................................................................................9-64
Acquirer Use of GARS.................................................................................9-68
Issuer Use of GARS .....................................................................................9-72
Monitoring Call Referral Activity ................................................................9-75
To Request GARS or Change GARS Parameters ........................................9-75
M/Chip On-behalf Services...............................................................................9-76

Chip to Magnetic Stripe Conversion...........................................................9-76
M/Chip Cryptogram Pre-validation Service................................................9-77
M/Chip Cryptogram Validation in Stand-In Processing.............................9-77
Magnetic Stripe Compliance Program ..............................................................9-78

Participating in the Magnetic Stripe Compliance Program........................9-78
Requirements for Magnetic Stripe Compliance..........................................9-79
Risk of Not Participating .............................................................................9-80
Manual Telex Authorization Requests ..............................................................9-81

Telex Requests ............................................................................................9-81
Telex Responses..........................................................................................9-84
Authorization Request Response................................................................9-85
MasterCard ATM Network.................................................................................9-87

Data Security ...............................................................................................9-87
ATM Locator ................................................................................................9-87
ATM Directory.............................................................................................9-88
Benefits........................................................................................................9-88
Supported Transactions ..............................................................................9-89
Interfaces to the MasterCard ATM Network...............................................9-89
MasterCard SecureCode ....................................................................................9-91

Universal Cardholder Authentication Field ................................................9-91
SecureCode Authentication Platforms ........................................................9-91
Licensing SecureCode Specifications..........................................................9-91
Accountholder Authentication Value .........................................................9-92
Comparison of Security Protocols ..............................................................9-94

MasterCard-acquired Visa Transactions............................................................9-95

Issuer Options .............................................................................................9-95
CPS Transactions .........................................................................................9-95
Indicators.....................................................................................................9-95
Retail Key Entry Program............................................................................9-97
Secure Electronic Commerce Verification Service .....................................9-98
Visa Commercial Card Inquiry....................................................................9-98
Visa CVV2....................................................................................................9-99
Visa Fleet Card ............................................................................................9-99
Member-defined Data .....................................................................................9-100

Structure of Member-defined Data ........................................................... 9-100
Merchant Advice Codes ..................................................................................9-101

DE 48, Subelement 84 Values................................................................... 9-101
Common DE 39 Values.............................................................................9-101
DE 48, Subelement 84 with DE 39 ........................................................... 9-102
Partial Approvals ............................................................................................. 9-103

Payment Transaction Authorization................................................................ 9-104

Person-to-Person Transactions ................................................................. 9-104
Payment Transaction Blocking ................................................................. 9-106
PIN Processing.................................................................................................9-109
Acquirer Requirements .............................................................................9-109
Issuer Requirements.................................................................................. 9-110
Support for Both Acquiring and Issuing Processing ............................... 9-111
Authorization System Security Requirements...........................................9-112
PIN Verification .........................................................................................9-118
PIN Verification in Stand-In Processing ...................................................9-118
PIN Key Exchange and Processing Forms ............................................... 9-119
Portfolio Sales Support....................................................................................9-120

Full BIN Transfer....................................................................................... 9-120
Partial BIN Transfer...................................................................................9-121
Fees............................................................................................................9-122

9-iv April 2006 • Authorization System Manual
Promotion Code ..............................................................................................9-123

Purpose of Using a Promotion Code ....................................................... 9-123
How the Promotion Code Service Works ................................................9-123
To Participate in the Promotion Code Service......................................... 9-123
Purchase of Goods or Services with Cash Back Transactions for Debit

MasterCard Cards............................................................................................. 9-124
To Participate ............................................................................................ 9-124
Proximity Chip Payments................................................................................9-125
Recurring Payments.........................................................................................9-126
Indicating a Recurring Payment ............................................................... 9-126
Recurring Payment Cancellation Service........................................................ 9-127

Benefits of RPCS........................................................................................9-127
How RPCS Works......................................................................................9-127
Authorization Reports ...............................................................................9-128
To Participate ............................................................................................ 9-128
RiskFinder ........................................................................................................9-129
Using RiskFinder ....................................................................................... 9-129
To Participate ............................................................................................ 9-129
Transaction Research Request ........................................................................9-130

Conducting a Transaction Research Request ........................................... 9-130
Using the MasterCard eService Transaction Research Tool .................... 9-130
Accessing the Transaction Research Tool ................................................ 9-131
Using the Transaction Research Request Form ....................................... 9-135
Understanding Fees for Transaction Research Requests ......................... 9-135
Travel Industries Premier Service ................................................................... 9-136

To Participate ............................................................................................ 9-136
Velocity Monitoring......................................................................................... 9-137

Types of Velocity Monitoring ................................................................... 9-137
Velocity Monitoring Reports ..................................................................... 9-137
Requesting AVM or MVM .........................................................................9-138

Authorization System Manual • April 2006 9-v
Account Balance Response
Account Balance Response Apr

2006
The account balance response enables issuers to transmit account balance

information in authorization response messages. Issuers can use the account
balance response for prepaid accounts and in ATM transactions. The account
balance response is an “unsolicited” transmission of account balance data to
the point-of-sale (POS) terminal or ATM.
This feature is supported on both approved and declined authorization

responses. When the issuer provides the available balance in the authorization
response, POS and ATM terminals that are programmed to accept account
balance data can display or print the available balance.
• Approved Responses—The available balance on an approved response is
the account balance after the transaction amount has been deducted from
the account.
• Declined Responses—The account balance response is used on a declined
response to expedite split-tender purchases. For POS transactions where a
prepaid card is used, this feature gives the cardholder and the merchant
the information needed to process a split-tender transaction. The merchant
can submit another authorization request for the purchase using a lower
amount that can be approved by the prepaid issuer, and ask the
cardholder to provide another form of payment for the remaining purchase
amount. The available balance returned in a declined response identifies
the current account balance, without deducting the declined transaction
amount.
MasterCard limits the account balance response to use on prepaid accounts

and in ATM transactions. MasterCard advises issuers that they must not use the
unsolicited account balance response for credit or debit accounts in POS
transactions. Issuers that provide unsolicited credit or debit account balance
information in POS transactions increase the potential for fraudulent activity
and concerns for cardholder privacy.
The Authorization System forwards the account balance response provided by

the issuer to the acquirer only when it is returned in an ATM transaction or in a
POS transaction for a prepaid account. Issuers must not transmit balance
information for credit or debit accounts, unless it is for an ATM transaction.

Account Management
Account Management
Issuers can manage restricted, negative, and preferred accounts through the:
• Account Management System (AMS)
• Account File
Apr
• Recurring Payment Cancellation Service (RPCS) 2006
Note For information about any of the programs described in this chapter, contact
the Customer Operations Services team. Unless otherwise noted, request all
forms from the Customer Operations Services team.
Account Management System

AMS allows members to identify and manage restricted accounts. AMS collects
and distributes MasterCard restricted account listings in the Electronic Warning
Bulletin file and paper Warning Notice for use in authorization processing.
Generally, issuers list the following kinds of accounts in AMS:

• Lost
• Stolen
• Counterfeit
• Severe credit problems with continued activity
Listing in AMS provides issuers with the following benefits:

• Warning bulletin chargeback rights
• “Capture card” response for Stand-In, Limit-1, and X-Code processing
For More Information

For details about AMS, see the Account Management User Manual.
Account File
The Account File resides at Central Site and contains a list of negative
accounts, restricted accounts, and preferred accounts.

Account Management
The Account File provides information about negative accounts, restricted

accounts, and preferred accounts for Stand-In processing to use when making
an authorization decision on behalf of the issuer.
Issuers list the following types of accounts in the Account File:

• VIP and Gold MasterCard® Card accounts that require higher authorization
limits
• Negative accounts that require a Stand-In authorization response of decline,
refer to card issuer, or capture card
• Restricted accounts available from AMS

For details about the Account File, see the Account Management User Manual.
Recurring Payment Cancellation Service (RPCS) Apr

2006
RPCS allows issuers to specify criteria to block recurring payment transactions

identified in authorization messages and clearing records.

For details about RPCS, see the Account Management User Manual.
Blocking Ranges of Accounts

MasterCard provides members two ways to list account ranges to stop the
acceptance of a range of cards.
The following table explains how to create two types of blocked listings.
Type of Listing How to List Where it Goes

Group or Series The issuer requests the Group or MasterCard adds the listing
Series in writing. to AMS.
Range Block The issuer establishes the range MasterCard adds the listing
block on the Stand-In Processing to the Account File.
Worksheet.

Account Management
The following table compares the levels of protection provided by the listing
types.
Type of Listing Levels of Protection

Stand- Under Merchant Chargeback Rights under
In/Limit-1 X-Code Floor Limit Reason Code 4807
Group or Series Yes Yes Yes Only in catastrophic

situations when approved
by MasterCard
Range Block Yes Yes No No


The Address Verification Service (AVS) is a service for online members that
verifies the cardholder’s billing address. This service protects against the
fraudulent use of cards in non–face-to-face transactions.
Participation Requirements
You must have online access to participate in AVS.
IF the member… AND is located… THEN participation is…

Issues cards In the U.S. region Required
Issues cards In a region other than the Optional
U.S. that supports AVS use
for the region
Indicating AVS Participation during Sign-in

When the issuer signs into the Banknet® telecommunications network, the
issuer can choose to:
• Indicate that it does not participate in AVS using AVS Service Indicator 0
• Receive AVS data in non-condensed format using AVS Service Indicator 1
• Receive AVS data in condensed format using AVS Service Indicator 2
• Receive AVS data in condensed format using AVS Service Indicator 3
See chapter 5 for more information about signing into the Banknet network.
AVS Process
The following table shows the stages in an AVS transaction.
Stage Description
1. The acquirer generates an Authorization Request/0100 message with non-
condensed address data included in DE 120 (Record Data).
1.
Banknet
Network
Acquirer MIP

Stage Description
2. The issuer MIP applies an algorithm to construct the address key, which the
issuer uses to verify the address.
2.
Banknet
Network
3. The issuer host compares the address key in DE 120 to the address key in the
issuer database.
3.
Banknet
Network
4. The issuer generates an Authorization Request Response/0110 message with

the AVS response included in DE 48 (Additional Data—Private Use),
subelement 83 (Address Verification Service Response).
Banknet
Network
Acquirer MIP MIP 4. Issuer
Address Key
The address key is the part of the Authorization Request/0100 message that
contains the address data.
To achieve a complete match, the key that AVS sends in DE 120 (Record Data)
must be the same as the key in the issuer’s database. The address key consists
of the following subelements in DE 120:
• Cardholder postal/ZIP code
• Cardholder address (condensed or non-condensed)
Cardholder Postal/ZIP Code

The cardholder postal/ZIP code has a fixed length of 9 bytes.
AVS does not condense the cardholder postal/ZIP code.

Cardholder Address
The length of the cardholder address depends on whether it is condensed or
non-condensed.
Non-condensed Using AVS Service Indicator 1
A non-condensed cardholder address includes the address data exactly as the

acquirer provides it in DE 120.
A non-condensed address key includes both the cardholder postal/ZIP code

and the cardholder address data exactly as the acquirer provided them in
DE 120.
Condensed Using AVS Service Indicator 2
A condensed cardholder address using AVS Service Indicator 2 includes the

first five numeric values at the beginning of the cardholder address (when
scanning the address from left to right) provided by the acquirer in DE 120.
The condensed address key (cardholder postal/ZIP code plus cardholder

address) is a fixed length of 14 bytes. It includes the entire cardholder
postal/ZIP code and the condensed cardholder address. MasterCard left-
justifies and blank-fills both portions of the key, as needed.
Process to Condense the Address Key Using AVS Service Indicator 2
The following table shows the process to condense the address key.
Stage Description
1. The condensing algorithm begins condensing with the numeric value in the
left-most position.
2. The algorithm extracts the first five numeric values of the cardholder address
(when scanning the address from left to right).
The condensing algorithm ignores all special characters (such as hyphens [-],
slashes [/ or \], and number signs [#]).
3. AVS constructs the condensed AVS key.

Condensed Using AVS Service Indicator 3
A condensed cardholder address includes as many as five numeric values at

the beginning of the cardholder address provided by the acquirer in DE 120.
The condensed address key (cardholder postal/ZIP code plus cardholder

address) is a fixed length of 14 bytes. It includes the entire cardholder
postal/ZIP code and the condensed cardholder address. MasterCard left-
justifies and blank-fills both portions of the key, as needed.
Process to Condense the Address Key Using AVS Service Indicator 3
The following table shows the process to condense the address key.
Stage Description
1. The condensing algorithm begins condensing with the numeric value in the
left-most position.
2. The algorithm extracts up to five numeric values that appear before the first
alphabetic character or space.
The condensing algorithm:
• Ignores all special characters (such as hyphens [-], slashes [/ or \], and
number signs [#])
• Excludes the portions of the address that could be open to
misinterpretation, such as apartment numbers
3. When AVS finds a space or an alphabetic character, it stops examining the
cardholder billing address.
4. AVS constructs the condensed AVS key.
Non-condensed versus Condensed
The following table provides an example of a non-condensed address key

compared to a condensed address key.
Condensed Using AVS Condensed Using AVS

Non-condensed Service Indicator 2 Service Indicator 3
63110 1520 Main Street, 63110 _ _ _ _ 15203 63110 _ _ _ _ 1520
Apartment 3
Example 1—Complete Match

The cardholder billing address is 1520 Main Street, Apartment 3. The issuer is
using a condensed address key using AVS Service Indicator 3.

The cardholder neglects to provide the merchant with the apartment number
3, so the merchant omits the apartment number from the AVS request.
However, the matching algorithm still finds a complete match.
Merchant enters
Postal/ZIP Cardholder AVS Issuer’s
Code Address Address Key Address Key Result/Explanation
63110 1520 Main 63110_ _ _ _ 1520 63110_ _ _ _ 1520 Complete Match
Street The issuer builds its address key
based on the AVS algorithm.
Both the issuer’s address key and
the AVS algorithm extract only
the numeric values that precede
the first space in this example
(1520). Therefore, when the
merchant does not enter the
apartment number, this still
results in a complete AVS match.
Example 2—No Match

The cardholder’s address is 54 East Street; however, the cardholder provides
the merchant with the address of 59 East Street.
Merchant enters:
Postal/ZIP Cardholder AVS Issuer’s
Code Address Address Key Address Key Result/Explanation
63110 59 East Street 63110_ _ _ _ 59 _ _ _ 63110_ _ _ _ 54_ _ _ No Match
The issuer’s address key does not
match the cardholder address
given by the cardholder.

Issuer Procedures
The following table shows the process that issuers follow to receive and
respond to AVS requests.
Stage Description
1. The issuer signs on to the Authorization System using a Sign-In Request/0800
message.
IF the issuer receives… THEN the issuer signs on with value…
Non-condensed AVS data 1 in DE 94, byte 3.
Condensed AVS data using 2 in DE 94, byte 3.
AVS Service Indicator 2
Condensed AVS data using 3 in DE 94, byte 3.
AVS Service Indicator 3
For members using group sign-in, the value chosen applies to all BINs in the
group.
2. When the issuer receives an AVS request, the issuer verifies the cardholder
billing address, matching it against the issuer’s address file.
3. The issuer generates an Authorization Request Response/0110 that includes
the AVS response (and an authorization response, if the AVS request
accompanied an authorization request).

Authorization Multiple Currency Conversion

Authorization Multiple Currency Conversion (AMCC) allows issuers and
acquirers to process authorization transactions in local currency.
Issuers that participate in AMCC may define transaction amount limits and
accumulative amount limits for Stand-In processing in U.S. dollars or their
AMCC currency. To indicate amount limits in U.S. dollars or their AMCC
currency, issuers may complete the Stand-In Processing Worksheet for Online
Issuers.
AMCC processing occurs at the member MIP.

Apr
AMCC is an optional service for issuers. AMCC is automatically provided to 2006
acquirers.
Using AMCC
Members can use AMCC according to the following guidelines.
Each participating… Can use AMCC by…

Acquirer Submitting authorization requests in local currency.
Online issuer Receiving authorization transactions in the issuer-specified
currency (specified by BIN).
CAPS issuer Receiving:
• The Sequential Response File with AMCC records
containing amounts in the issuer’s specified currency.
(See chapter 8 for layouts of this file.)
• The Daily Activity Report in the issuer-specified currency.
(See chapter 10 for a sample of this report.)
Signing Up for AMCC Apr

2006
Issuers must complete the Authorization Multiple Currency Conversion (AMCC)
Request Form to sign up for AMCC.
Acquirers are set up automatically for AMCC, and do not need to complete the
Authorization Multiple Currency Conversion (AMCC) Request Form.
Participating in AMCC
All issuers and acquirers must complete testing to participate in AMCC. See
chapter 11 for information about testing.

Data Elements Used by AMCC

AMCC uses the following data elements.
Data Element
Number Data Element Name
4 Transaction Amount (acquirer currency)
49 Transaction Currency Code
5 Settlement/Banknet Amount (always U.S. dollars)
9 Settlement/Banknet Conversion Rate
50 Settlement/Banknet Currency Code (always 840)
6 Cardholder Billing Amount (issuer currency)
10 Cardholder Billing Conversion Rate
51 Cardholder Billing Currency Code
16 Currency Conversion Table Date
54 Additional Amounts (used for Balance Inquiry transactions)
For details about data requirements, see the Customer Interface Specification
manual.
AMCC Processing Logic

AMCC processing prevents redundancy of data in the authorization transaction.
Note The Authorization System inserts amount and currency combinations only once
per message.
For example, an amount in Japanese yen with a currency code of 392 (for
Japanese yen) appears only once per message.

To ensure that amount and currency combinations appear only once, the
following processing logic applies.
Data
Element Contains… It is…
Apr
4 The acquirer’s Always present. 2006
currency.
5 The transaction IF… THEN…
amount in U.S.
DE 4 is in U.S. dollars DE 5 is not present.
dollars.
DE 4 is not in U.S. DE 5 is present.
dollars
6 The transaction IF… THEN…
amount in the
The acquirer currency DE 6 is not present. (For
issuer’s currency.
(DE 4) is the same as example, if DE 4 is Canadian
the issuer currency dollars and the issuer’s
currency is Canadian dollars,
DE 6 is not present.)
The issuer currency is DE 6 is not present because
U.S. dollars the amount in U.S. dollars
already appears in DE 5.
The issuer currency is DE 6 is present.
not U.S. dollars or the
same as the acquirer
currency
Acquirer Processing Logic

Apr
Acquirers send data in the following message types: 2006
• Authorization Request/0100
• Authorization Advice/0120—Acquirer-generated
• Acquirer Reversal Request/0400
Data Element Containing…

4 The transaction amount in any International Organization for
Standardization (ISO) currency
49 The ISO currency code for the currency of the transaction amount
listed in DE 4

All acquirers must be able to receive additional amount-related data elements Apr
5, 6, 9, 10, 16, 50, and 51 in authorization response messages. 2006
Balance Inquiry Transactions

The MasterCard® ATM Network accepting MasterCard®, Maestro®, and Cirrus®
brands (MasterCard ATM Network) is the acquirer for balance inquiry
transactions.
Balance inquiry processing uses DE 54. Issuers that participate in AMCC may
return as many as two balances in the response message. Therefore, the
acquirer (the MasterCard ATM Network) may receive as many as four DE 54
subelements after currency conversion occurs.
For more information about DE 54, see the Customer Interface Specification
manual.
Issuer Processing Logic

Issuers that participate in AMCC read the data related to the issuer’s selected
currency in the following message types:
• Authorization Advice/0120—Acquirer-generated Apr
2006
• Authorization Advice/0120—System-generated
• Acquirer Reversal Request/0400
• Acquirer Reversal Advice/0420
The issuer’s currency does not always appear in the same data element.
Therefore, the issuer’s host computer must search for the issuer currency in
DE 4, DE 5, or DE 6 according to the AMCC processing logic described earlier
in the “AMCC Processing Logic” section.
Balance Inquiry Transactions

For balance inquiry processing, issuers may return as many as two balances,
using the DE 54 subelement definition specified in the Customer Interface
Specification manual. Issuers returning more than two balances will receive a
format error.

Examples of AMCC Processing

The examples illustrate the possible combinations of data elements that issuers
and acquirers may receive in the following authorization messages:
Apr
• Authorization Request/0100 and Authorization Request Response/0110 2006
• Authorization Advice/0120 and Authorization Advice Response/0130

• Acquirer Reversal Request/0400 and Acquirer Reversal Request
Response/0410
• Acquirer Reversal Advice/0420 and Acquirer Reversal Advice
Response/0430
These examples use the following codes:
JPY = Amount in Japanese Yen 392 = Currency Code for Japanese Yen
CAD = Amount in Canadian Dollars 124 = Currency Code for Canadian Dollars
USD = Amount in U.S. Dollars 840 = Currency Code for U.S. Dollars

Both Acquirer and Issuer Participate in AMCC, Using Different

Currencies
Figure 9.1 illustrates the exchange of data when:
AMCC Processing
Member Participant Location Currency Message Type
Acquirer Yes Japan Japanese yen Authorization Request/0100
Message
Issuer Yes Canada Canadian dollars Authorization Request
Response/0110 Message
Figure 9.1—Acquirer in Japan, Issuer Uses Canadian Dollars
Banknet
Acquirer Issuer
Processing
0100
Request
Converts the amount in DE 4 (Transaction Amount)

Sends: to DE 5 (Settlement Amount in U.S. Dollars) Receives:
Adds DE 9 (Settlement Conversion Rate) DE 4 = JPY
DE 4 = JPY DE 49 = 392
DE 49 = 392 Adds DE 50 (Settlement Currency Code,
always 840) DE 5 = USD
DE 50 = 840
Converts the amount in DE 4 to DE 6 (Cardholder DE 9 = Rate
Billing Amount)
DE 6 = CAD
Calculates DE 10 (Cardholder Billing Conversion DE 51 = 124
Rate) DE 10 = Rate
Adds DE 51 (Cardholder Billing Currency Code) DE 16 = Date
Adds DE 16 (Currency Conversion Table Date)
0110
Response
Receives: Sends:
DE 4 = JPY DE 4 = JPY
DE 49 = 392 DE 49 = 392
DE 5 = USD DE 5 = USD
DE 50 = 840 DE 50 = 840
DE 9 = Rate Logs key data elements DE 9 = Rate
DE 6 = CAD DE 6 = CAD
DE 51 = 124 DE 51 = 124
DE 10 = Rate DE 10 = Rate
DE 16 = Date DE 16 = Date

Both Acquirer and Issuer Participate in AMCC, Using the Same

Currency
AMCC Processing
Message
Issuer Yes Japan Japanese yen Authorization Request
Figure 9.2—Acquirer in Japan, Issuer Uses Japanese Yen
Banknet
Acquirer Issuer
0100
Processing
Request
Sends: Converts the amount in DE 4 (Transaction Receives:

Amount) to DE 5 (Settlement Amount in U.S. Dollars)
DE 4 = JPY
Adds DE 9 (Settlement Conversion Rate) DE 49 = 392
DE 4 = JPY
DE 49 = 392 Adds DE 50 (Settlement Currency Code, always 840) DE 5 = USD
DE 50 = 840
Adds DE 16 (Currency Conversion Table Date) DE 9 = Rate
Note: Banknet Processing does not create DE 6, DE DE 16 = Date

51, or DE 10 because DE 4 = DE 6.
0110
Response
Receives: Sends:
DE 4 = JPY DE 4 = JPY
DE 49 = 392 DE 49 = 392
DE 5 = USD Logs key data elements DE 5 = USD

DE 50 = 840 DE 50 = 840

Both Acquirer and Issuer Participate in AMCC, Using U.S. Dollars

AMCC Processing
Acquirer Yes Any country U.S. dollars Authorization Request/0100
Message
Issuer Yes Any country U.S. dollars Authorization Request
Figure 9.3—Acquirer in U.S., Issuer uses U.S. Dollars
Banknet
Acquirer Issuer
Processing
0100
Request
Sends: Note: Banknet processing does not create DE Receives:

5, DE 50, or DE 9 because DE 4 already
DE 4 = USD
contains U.S. dollars.
DE 4 = USD DE 49 = 840
DE 49 = 840
It does not create DE 6, DE 51, or DE 10
because DE 4 = DE 6.
0110
Response
Receives: Sends:
DE 49 = 840 Logs key data elements DE 49 = 840

Both Acquirer and Issuer Participate in AMCC, Using Different

Currencies
AMCC Processing
Acquirer Yes Any country U.S. dollars Authorization Request/0100
Message
Issuer Yes Canada Canadian dollars Authorization Request
Figure 9.4—Acquirer in U.S. Issuer Uses Canadian Dollars
Banknet
Acquirer Issuer
Processing
0100
Request
Converts the amount in DE 4 (Transaction

Sends: Amount) to DE 6 (Cardholder Billing Amount) Receives:
Calculates DE 10 (Cardholder Billing Conversion DE 4 = USD

DE 4 = USD Rate) DE 49 = 840
DE 49 = 840
Adds DE 51 (Cardholder Billing Currency Code) DE 6 = CAD
DE 51 = 124
Adds DE 16 (Currency Conversion Table Date) DE 10 = Rate
Note: Banknet processing does not create DE 16 = Date

DE 5, DE 50, and DE 9 because DE 4 = USD.
0110
Response
Receives: Sends:
DE 49 = 840 DE 49 = 840
DE 6 = CAD Logs key data elements. DE 6 = CAD

DE 51 = 124 DE 51 = 124

Acquirer Participates in AMCC, Issuer Does Not Participate in

AMCC
AMCC Processing
Message
Issuer No Any country U.S. dollars Authorization Request
Figure 9.5—Acquirer in Japan, Issuer Does Not Participate In AMCC
Banknet
Acquirer Issuer
Processing
0100
Request
Sends: Receives:
Converts the amount in DE 4 (Transaction

Amount) from JPY currency to USD currency DE 4 = USD
DE 4 = JPY DE 49 = 840
DE 49 = 392 Changes currency code in DE 49 (Transaction
Currency) from JPY currency to USD currency
0110
Response
Changes value in DE 4 (Transaction Amount)

from U.S. Dollars back to original transaction
Receives: amount Sends:
DE 4 = JPY Changes value in DE 49 (Transaction Currency

DE 49 = 392 Code) from U.S. currency code (840) back to the DE 4 = USD
original transaction currency code DE 49 = 840
DE 5 = USD
DE 50 = 840 Adds DE 5 (Settlement Amount) in U.S. Dollars
DE 9 = Rate Adds DE 50 (Settlement Currency Code, always
840)
DE 16 = Date Adds DE 9 (Settlement Conversion Rate)
Adds DE 16 (Currency Conversion Table Date)

ATM Balance Inquiry Processing—Both Issuer and Acquirer

Participate in AMCC, Using Different Currencies
For ATM balance inquiry transactions, the MasterCard® Debit Switch (MDS)
network converts the Financial Request/0200 message into an Authorization
Request/0100 message before sending it to the Banknet network.
AMCC Processing
Acquirer Yes Hong Kong Hong Kong Financial Transaction/0200
dollars Message
Issuer Yes India Indian rupees Authorization Request
Figure 9.6—ATM Balance Inquiry Processing, Acquirer in Hong Kong, Issuer in

India
MDS Banknet
Acquirer Issuer
Network Processing
0200 0100
Request Request
DE 4 = HKD (0$)
Sends: Sends: DE 49 = 344
Adds DE 6, DE 51, DE 6 = INR

DE 4 = HKD (0$) DE 4 = HKD (0$) DE 10, and DE 16.
DE 49 = 344 DE 51 = 356
DE 49 = 344
DE 10 = Rate
DE 16 = Date
0210 0110
Response Response
Sends:
DE 4 = HKD (0$)
Receives: Sends:
DE 49 = 344
Appends the HKD
DE 4 = HKD (0$) DE 4 = HKD (0$) DE 6 = INR
value to DE 54
DE 49 = 344 DE 49 = 344 (adding DE 54B) DE 51 = 356
DE 10 = Rate
DE 16 = Date
DE 54A = INR DE 54A = INR
DE 54B = HKD DE 54B = HKD DE 54A = INR

ATM Balance Inquiry Processing—Acquirer Participates in AMCC,

Issuer Does Not Participate in AMCC
AMCC Processing
Acquirer Yes Hong Kong Hong Kong Financial Transaction
dollars Request/0200 Message
Issuer No Any country U.S. dollars Authorization Request
Figure 9.7—ATM Balance Inquiry Processing, Acquirer in Hong Kong, Issuer Does
Not Participate in AMCC
MDS Banknet
Acquirer Issuer
Network Processing
0200 0100
Request Request
Sends: Sends:
Converts DE 4 to DE 4 = USD ($)

DE 4 = HKD (0$) DE 4 = HKD (0$) USD and changes
DE 49 = 344 DE 49 = 344 DE 49 = 840
DE 49 to 840
0210 0110
Response Response
Receives: Sends: Changes DE 4 to Sends:

HKD and DE 49
DE 4 = HKD (0$) DE 4 = HKD (0$)
to 344 DE 4 = USD (0$)
DE 49 = 344 DE 49 = 344
DE 49 = 840
DE 54A = USD Appends the HKD
DE 54A = USD
DE 54B = HKD value to DE 54 DE 54A = USD
DE 54B = HKD
(adding DE 54B)

Balance Inquiries
Balance Inquiries Apr

2006
MasterCard supports two types of balance inquiry requests for cardholders to

perform balance inquiries:
• ATM balance inquiries
• Point-of-sale terminals balance inquiries
The balance inquiry service is optional for issuers.
ATM Balance Inquiries

The ATM balance inquiry allows MasterCard cardholders to perform a balance
inquiry on the MasterCard ATM network.
Alternate Processing
The Authorization System does not support Limit–1 processing for ATM
balance inquiries. If the issuer participates in ATM balance inquiries, all ATM
balance inquiries will be forwarded to the issuer for processing.
ATM balance inquiries are not eligible for processing by the Stand-In System or
the X-Code System. If the issuer is unavailable, the Authorization System will
return an Authorization System or issuer system inoperative response to the
acquirer.
To Participate
Issuers that choose to participate in this service must contact the MasterCard
Global Debit Services Department.

For details about data requirements, see the Customer Interface Specification
manual.

Balance Inquiries
Point-of-Sale (POS) Terminal Balance Inquiries Apr

2006
The POS balance inquiry enables cardholders and acquirers to check the
remaining amount of funds on a MasterCard prepaid card. This feature makes
it easier for the cardholder to completely redeem the funds on the prepaid
card and reduces the potential of a declined authorization request because the
purchase amount exceeds the funds available on the card. Therefore, this
feature can help to reduce checkout times and lost sales.
Upon receipt of a POS balance inquiry, participating issuers return the

available balance in the authorization response. The Authorization System
performs any applicable currency conversion and forwards the available
balance to the acquirer. The acquirer provides the available balance to the
merchant for display on the customer’s printed receipt.
There are two types of POS terminal balance inquiries:

• Cardholder-initiated balance inquiry—Cardholders can ask the cashier to
check a card’s remaining balance before making a purchase. The
cardholder and cashier can then determine whether the entire purchase
amount can be funded by the prepaid card or whether a supplemental
payment method (split tender) is needed to complete the purchase.
• Processor-initiated automated balance inquiry—Acquirers can expedite sales
by sending an automatic POS balance inquiry on a specified range of
prepaid accounts issued by the merchant. The cashier can then inform
customers in advance whether they will need to use a split tender to
complete the purchase.
POS balance inquires are supported in the following messages:

• Authorization Request Response/0110
• RiskFinder Authorization Advice/0120 (Member-initiated and MIP-initiated)
Apr
The Authorization System does not support Limit–1 processing for POS balance 2006
inquiries. If the issuer participates in POS balance inquiries, all POS balance
inquiries will be forwarded to the issuer for processing.
POS balance inquiries are not eligible for processing by the Stand-In System or
the X-Code System. If the issuer is unavailable, the Authorization System will
return an Authorization System or issuer system inoperative response to the
acquirer.

Balance Inquiries
To Participate
Issuers may complete the Point-of-Sale (POS) Inquiry Participation form
available in the Business Forms section of MasterCard OnLine® (under
Resources in the main menu) and at the end of this manual.

For details about the data requirements, see the Customer Interface

Card Level Support
Card Level Support

Card level support for transactions processed by Stand-In processing allow
issuers to distinguish between individual cards when the same Primary
Account Number (PAN) is used for multiple cards. Issuers may list accounts in
the Account File at the individual card level.
Issuers must notify MasterCard for each account range for which they want to
participate in card level support using the Card Level Support form.
Issuers that participate in card level support must ensure that the following
card level information is present on cards within the specified range:
• Card Sequence Number—the three-position card sequence number
distinguishes between cards that use the same PAN. This three-position
number is located in the discretionary data field of Track 2 data in the
magnetic stripe on the back of each card. For chip cards, it may be
encoded on the chip.
• Card Expiration Date—the expiration date of the listed card.
Stand-In processing requires the presence of the following data elements in

authorization requests associated with account ranges that participate in card
level support:
• Card Sequence Number—DE 35 (Track 2 Data) contains the card sequence
number.
• Card Expiration Date—DE 14 (Date, Expiration), DE 35 (Track 2 Data) may
contain the card expiration date.
WHEN… THEN Stand-In processing…

The card sequence number or card Rejects the Authorization Request/0100
expiration date is not present in message by returning a DE 39 (Response
Authorization Request/0100 messages Code) of 05 (Do not honor) in the
that are sent to Stand-In for authorization Authorization Request Response/0110
processing message.

Card Validation Code 1 Verification in Stand-In Processing

Card validation code 1 (CVC 1) verification in Stand-In processing provides
additional protection during Stand-In processing. When the issuer times out or
is unavailable, normal Stand-In processing runs through a series of tests to
determine an authorization response. If the issuer is signed up for CVC 1
verification, Stand-In processing performs an additional test to verify that the
CVC 1 is valid.
MasterCard requires that issuers provide the Data Encryption Standard (DES)
keys to MasterCard for each account range that participates in CVC 1
verification in Stand-In processing.
MasterCard offers the following options for CVC 1 verification in Stand-In

processing:
• Allow issuers to assign multiple sets of DES keys to an account range.
• Allow issuers to assign the same set of DES keys to an account range.
CVC 1 verification in Stand-In processing is an optional service.
Note The CVC 2 value, described in chapter 1, does not apply to CVC 1 verification in
Stand-In processing.
Assigning Multiple Sets of DES Keys to an Account Range

MasterCard supports the issuers’ ability to change the position of the CVC 1
value in the discretionary data field on the track data.
Issuers can designate which set of CVC 1 parameters to use for an account
range based on the card expiration date.
Members that want to use this functionality can request this service by
completing the Key Validation Service Specification Form and following the
procedures in the On-behalf Key Management (OBKM) Document Set.
Assigning the Same Set of DES Keys to an Account Range

MasterCard supports the issuers’ ability to assign the same set of DES keys to
an account range. Following are the requirements with which an issuer must
comply to be eligible to participate in CVC 1 verification in Stand-In processing
for the use of the same set of DES keys.

You must use the DES method to calculate the CVC 1 for an entire BIN.
MasterCard allows members to calculate CVC 1 values using any of three
different calculation methods. However, CVC 1 verification in Stand-In
processing only supports the DES method. For a detailed description of this
calculation method, see the Security Rules and Procedures manual.
You must encode the CVC 1 within the Discretionary Data field in both track 1
and track 2 of the magnetic stripe. The Discretionary Data field is field 9 in
track 1 and field 6 in track 2. Refer to the following tables for specific
information about the layouts of track 1 and track 2.
Layout for Encoding Track 1

The following table shows the correct layout for encoding track 1. The
Discretionary Data field (the location of the CVC 1) is field 9.
F=Fixed Maximum
Field Number Field Name V=Variable Length
1 Start Sentinel F 1
2 Format code–B (encode character B) F 1
3 Account number F 16
4 Separator F 1
5 Cardholder name V 2–26
6 Separator F 1
7 Expiration date F 4
8 Service code F 3
9 Discretionary data (must include V 24
CVC 1)
10 End sentinel F 1
11 Longitudinal redundancy check F 1
Total record length—The maximum character count for track 1 may not exceed 79
including all control characters.
Figure 9.8 is another representation of the track 1 data.

Figure 9.8—Track 1 Data Graphic
Format End
Code Separator Separator Sentinel
Start Account
Sentinel Number Cardholder Name Discretionary Data LRC
10 20 30 40 60 70 79
Card CVC
Service
Expiration (3 contiguous digits
Code
Date anywhere within the
50 Discretionary Data field)
Layout for Encoding Track 2

The following table shows the correct layout for encoding track 2. The
Discretionary Data field (the location of the CVC 1) is field 6.
Field F=Fixed Maximum

Number Field Name V=Variable Length
1 Start Sentinel F 1
2 Account number F 16
3 Separator F 1
4 Expiration date F 4
5 Service code (must be numeric) F 3
6 Discretionary data (must include CVC 1) V 13
7 End sentinel F 1
8 Longitudinal redundancy check F 1
Total record length—the maximum character count for track 2 may not exceed 40
including all control characters.
Figure 9.9 is another representation of the track 2 data.

Figure 9.9—Track 2 Data Graphic
Start Separator End

Sentinel pos. 18 Sentinel
pos. 1 Service Code
Card pos. 39
pos. 23–25
Expiration
Account Number Date Discretionary Data
LRC
pos. 2–17 pos. 19–22 pos. 26–38
pos. 40
1 2 3 4
1
0 0 0 0
C V C
(3 contiguous digits
anywhere within the
Discretionary Data field)
The same set of DES keys must apply to the CVC 1 for the entire BIN. (That
is, you may not have one key for the beginning of the BIN and another key
for the end of the BIN. Only one DES key may exist for each BIN.) Also, the
same set of DES keys must apply between track 1 and track 2. (You may not
have one key for track 1 and another key for track 2.)
You may encode the CVC 1 anywhere within the Discretionary Data field.
However, the location of the CVC 1 (within each track) must be the same for
the entire BIN.
The location of the CVC 1 on track 1 does not have to be the same as for track
2. They just have to be the same within each track.
Key Management
Your secure management of the secret cryptographic keys is also an absolute
requirement during generation, distribution, custody, storage, use, and
eventual destruction of the keys. You must include monitoring, backup, and
recovery procedures that provide for secure audit trails, according to industry
standards, such as those of ISO. You also should use the “split
knowledge/dual control” method for transmitting key components to
MasterCard.
MasterCard manages all DES keys under the International Organization for
Standardization (ISO) standards, using the “split knowledge/dual control”
method for handling keys. For example, no single MasterCard staff member
ever receives or manages all sets of key components. This method for
handling keys ensures that the keys are not compromised.

Signing Up for CVC 1 Verification

To sign up for CVC 1 verification in Stand-In processing for same set of DES
keys service, follow these steps.
Step Action
1. Generate the CVC 1 key components.
2. Send the key components to MasterCard using the forms provided at the end
of this manual.
Sending the CVC 1 Key Components to MasterCard

You may use either of the following methods to send the CVC 1 key
components:
• Zone Control Master Key (ZCMK) method
• Two-component Method
ZCMK Method
To use the ZCMK method, follow these steps.
Step Action
1. Identify three employees to generate and send the ZCMK components and
keys:
Security Officer No. 1
2. Generate the three ZCMK components.

3. Send the ZCMK components to MasterCard using the forms provided at the
end of this manual. Each security officer must complete different forms, as
follows:
Security Officer No. 1—Complete the ZCMK/Component No. 1 form. Send the
form to MasterCard in an envelope labeled “No. 1.”
Security Officer No. 2—Complete the ZCMK/Component No. 2 form. Obtain a
secure envelope containing the ZCMK/Component No. 3 form from Security
Officer No. 3. Send both forms to MasterCard in an envelope labeled “No. 2.”
Security Officer No. 3—Complete the ZCMK/Component No. 3 form. Put the
form in a secure envelope and give it to Security Officer No. 2.

Step Action
4. Complete the following documents and send them to MasterCard in an
envelope labeled “No. 3”:
• ZCMK/Encrypted Keys A and B Form
• Location Specification Form
• Test Data Form
• Account Range Specification Form, if necessary. (Read the directions on
the form to determine if you need to complete it.)
Note If you specify an account range on the Account Range Specification Form,
MasterCard performs CVC 1 verifications only on account numbers within the
range provided and with an expiration date equal to or greater than the date
specified.
Two-component Method
To use the two-component method, follow these steps.
Step Action
1. Identify two employees to generate and send Component 1 and Component 2
for each key, Key A and Key B:
2. Using Key A and Key B from your DES calculation of the CVC 1, generate two
components for each key. Key/component combinations must be the same for
track 1 as for track 2. For example, Track 1/Key A/Component No. 1 must be
the same as Track 2/Key A/Component No. 1.
3. Send the key components to MasterCard using the following forms provided at
the end of this manual. (Complete all of the forms for each account range.)
Each security officer must complete different forms, as follows:
Complete the Keys A and B/Component No. 1 Form. Send the form to
MasterCard according to the instructions on the form.
Complete the Keys A and B/Component No. 2 Form. Send the form to
MasterCard according to the instructions on the form.

Step Action
4. Complete the following forms and send them to MasterCard. (Complete all of
the forms for each account range.)
• Location Specification Form
• Test Data Form
• Account Range Specification Form, if necessary. (Read the directions on
the form to determine if you need to complete it.)
Note If you specify an account range on the Account Range Specification Form,
MasterCard performs CVC 1 verification only on account numbers within the
range provided and with an expiration date equal to or greater than the date
specified.
Verifying CVC 1 Data

For issuers to participate in CVC 1 verification, the following process must
occur.
Stage Description
1. The separate MasterCard security officers receive their designated envelopes,
which contain the forms described under “How to Sign Up for the CVC 1
Service.” They verify that no obvious damage has occurred to the envelopes
in the mail. (If there is apparent damage, MasterCard notifies the security
contact listed on your CVC forms to determine a course of action.)
2. The MasterCard security officers enter the CVC 1 keys in their possession
separately into a hardware cryptographic device.
3. Using authorization logs for both track 1 and track 2 data and the test data that
you provided on the Test Data Form, MasterCard tests CVC 1 processing.
4. If you are using the ZCMK method, MasterCard also verifies that the CVC 1
keys entered by MasterCard to the cryptographic device are correct according
to the key check values that you provided on the forms.
5. MasterCard works with you if any pre-production issues require resolution.

Test Cards
Members can expedite the process for verifying CVC 1 data for Stand-In
processing by sending test cards to:

Attention: Data Integrity Department
USA
Sending test cards to MasterCard can be particularly useful for members in

regions that rarely use track 1 data.
Reporting CVC 1 Verification in Stand-In Processing

Regardless of the CVC 1 verification method you are using—multiple sets of
DES keys or single set of DES keys—the results of CVC 1 verification in Stand-
In processing appear on the following reports:
• All members:
Authorization Summary Report (AB505010-AA)
The Fail Reason category “Invalid Chip/CVC” on the Stand-In page of this
report lists transactions that failed because of a combination of:
− Invalid CVC (failed the CVC 1 test) and
− Invalid chip (failed the M/Chip Validation test) and
− Magnetic stripe CVC errors in DE 48 (failed at the MIP)
• Online members:
Store-and-forward records will contain value 0028 in positions 4–7 of
DE 60 (Advice Detail Code) and the MCBS Issuer Authorization Detail
Report will contain value 0028 under “FAIL RSN.”
• CAPS members:
Stand-In Daily Activity Report (SI441010-A)
The fail reason code 28 on this report indicates an authorization transaction
that contained either an invalid CVC 1 or magnetic stripe CVC 1 errors.
For a complete list of magnetic stripe CVC errors, see the Customer Interface

Card Validation Code 2 Verification

Card validation code 2 (CVC 2) verification provides added security for the
card authentication process in authorization requests.
Note Both acquirers and issuers must register with MasterCard using the CVC 2
Registration Form, available in the Business Forms section of MasterCard OnLine
(under Resources in the main menu) and at the end of this manual.
CVC 2
CVC 2 is a three-digit code algorithmically derived by the issuer and indent-
printed on the signature panel to the right of the account number. CVC 2 is
one of several card authentication methods currently used by MasterCard to
combat fraud. The use of CVC 2 deters fraudulent use of an account number.
Note Stand-In processing does not verify CVC 2 values.
Conditions for CVC 2 Verification

CVC 2 verification allows acquirers to receive online verification of CVC 2
values from issuers when the following conditions apply:
• The acquirer transmits the CVC 2 value that the cardholder has provided to
the merchant in DE 48, subelement 92 of the Authorization Request/0100
message.
• The issuer’s BIN is registered with MasterCard, and the issuer verifies the
CVC 2 value by providing a valid response (value M, N, or P) in
subelement 87 of DE 48 of the Authorization Request Response/0110
message.
Participation Requirements
Following are the participation requirements for acquirers and issuers for using
CVC 2 verification.

Acquirers
When merchants provide CVC 2 data for transactions, acquirers must include
the CVC 2 value in DE 48, subelement 92 of Authorization Request/0100
messages.
To participate in CVC 2 verification, acquirers must be able to receive the

following values in DE 48, subelement 87 of Authorization Request
Response/0110 messages.
Subelement 87 Value Description

M Valid or “matched” CVC 2 value
N Invalid CVC 2 value
P CVC 2 not processed
U Issuer unregistered for CVC 2 processing
Issuers
Issuers must be able to receive the CVC 2 value when present in DE 48,
subelement 92 of Authorization Request/0100 messages, and provide a valid
response in DE 48, subelement 87 of Authorization Request Response/0110
messages. Values M, N, or P are considered valid when used by issuers. Only
MasterCard may use value U.
Issuers that have not registered a BIN for CVC 2 verification or that have not
provided a valid response (M, N, or P) to acquirers are not eligible to use
reason code 4837 (No Cardholder Authorization) for chargebacks when
acquirers provide CVC 2 data for transactions processed under that BIN.
Issuers should note that if an acquirer transmits both CVC 1 and CVC 2 data,
CVC 1 processing takes precedence over CVC 2 processing.
IF the CVC 1 value is… THEN…

Invalid Issuers should respond with value Y (Invalid CVC 1)
in DE 48, subelement 87. Issuers should not verify the
CVC 2 value.
Valid Issuers must verify the CVC 2 value and send the
appropriate response to the acquirer.

Authorization System Processing Flow Diagrams

The following diagrams provide details about Authorization System processing
flows for CVC 2 verification in these scenarios.
Figure 9.10—Authorization Request/0100 with CVC 2: Registered Issuers
Merchant
provides
CVC 2
1 4 5
2 4 5 3
1 2 2 2
4 4 Banknet
3
5 4 Network
Acquirer MIP MIP 4 Issuer
4 4
Central Site
4
Stand-in
Processor
4
MIP
Stage Description
1. The merchant provides the CVC 2 value, and the acquirer generates an
Authorization Request/0100 message including the CVC 2 value in DE 48,
subelement 92.
2. The acquirer MIP verifies whether the issuer is registered with MasterCard to
perform online CVC 2 verification. If the issuer is registered, the acquirer MIP
forwards the Authorization Request/0100 message to the issuer.
3. After the issuer transmits the Authorization Request Response/0110 message,
the issuer MIP will verify that one of the following values appears in DE 48,
subelement 87:
• M (Matched CVC 2 Value)
• N (Invalid CVC 2 Value)
• P (CVC 2 Not Processed)
Depending on whether the transaction was approved, the last stage will be
either stage 4 or stage 5.

Stage Description
4. IF DE 48,
subelement AND IF the
87 transaction
contains… was… THEN… AND THEN…
No response Approved The issuer MIP returns The acquirer MIP will
or an invalid an Authorization forward the Authorization
response Response Negative Request/0100 message to
Acknowledgement/0190 Stand-In processing.
message with:
DE 39 = 30
DE 44 = 048
5. IF DE 48,
subelement AND IF the
87 transaction
contains… was… THEN… AND THEN…
No response Not The acquirer MIP will The issuer will not
or an invalid approved forward the receive an Authorization
response Authorization Request Response Negative
Response/0110 message Acknowledgement/0190
to the acquirer with: message.
DE 48, subelement 87 =
P

Figure 9.11—Authorization Request/0100 with CVC 2: Unregistered Issuers
Merchant
provides
CVC 2
1 3
2 3
1 2 2 2
Banknet
Network
3 3 3 3
Stage Description
Authorization Request/0100 message including CVC 2 in DE 48, subelement 92.
2. The acquirer MIP verifies whether the issuer is registered with MasterCard to
perform online CVC 2 verification. If the issuer is not registered, the MIP
places a U (Unregistered) in DE 48, subelement 87 and forwards the
Authorization Request/0100 message to the issuer without DE 48, subelement
92.
3. After the unregistered issuer transmits the Authorization Request
Response/0110 message, the acquirer MIP verifies that value U is in DE 48,
subelement 87 before forwarding it to the acquirer.

Figure 9.12—Authorization Request/0100 with CVC 2: Routed to Stand-In

Processing
2 X
Or SAF
Invalid Value Queue
Merchant
provides MIP 2 Issuer
CVC 2
X Or 2
Invalid
Value
Central Site 4
1
2 2 2 3
1 1 2 2
Banknet Stand-in
Network Processor
3 3 3 3
Acquirer MIP MIP
Note Stand-In processing does not validate CVC 2 values.
Stage Description
Authorization Request/0100 message including CVC 2 in DE 48, subelement
92.
2. Stand-In processing responds in the following conditions:
• The issuer is not signed in.
• The transaction cannot be delivered to the issuer.
• The issuer is not responding.
• The issuer’s Authorization Request Response/0110 message fails an edit
check and is rejected.
3. Stand-In processing generates the Authorization Request Response/0110
message.
IF the issuer is... THEN the Authorization System…
Unregistered Places value U (Unregistered) in DE 48, subelement
87.
Registered Places value P (Not Processed) in DE 48, subelement
87 and forwards the Authorization Request
4. Stand-In processing also generates Authorization Advice/0120 messages as
appropriate and stores the advice in the Store-and-Forward (SAF) queue.
Stand-In processing will include value U (Unregistered) in subelement 87 of
DE 48 for issuers that have not registered or value P (Not Processed) for
issuers that have registered.

Note Stand-In processing uses parameters previously established by the issuer to

process the Authorization Request/0100 message.
Figure 9.13—Authorization Request/0100 with CVC 2—X-Code Processing
2 2 X Banknet
X X
3 Network

2 3
1
X Central Site
Stand-in
X Processor
Merchant MIP
Stage Description
1. The merchant supplies the CVC 2 value to acquirer.
2. The acquirer creates an Authorization Request/0100 message that contains
CVC 2 information, but transmission is not successful.
3. X-Code processing by the acquirer’s MIP will respond based on current X-
Code processing rules.
WHEN the issuer is... THEN the Authorization System…
Registered Adds value P (Not Processed) in DE 48, subelement
87 of the Authorization Request Response/0110
message.
Not Registered Provides value U (Unregistered) in DE 48,
subelement 87 of the Authorization Request

Figure 9.14— Authorization Request/0100 with CVC 2—Limit-1 Processing
Banknet
1 2 2 Network 2 2
Merchant Acquirer MIP MIP Issuer
Stage Description
1. The merchant supplies the CVC 2 value to acquirer.
2. If the issuer has registered and has chosen Limit-1 processing, and if CVC 2 is
present in the Authorization Request/0100 message, the acquirer’s MIP will
bypass Limit-1 processing and forward the request to the issuer for processing.

Card Validation Code Verification for Emergency Card Replacements
Card Validation Code Verification for Emergency Card

Replacements
Card validation code (CVC) for emergency card replacements is a service that
provides a way for MasterCard to encode a CVC on the Emergency Card
Replacement Service (ECR Service). The MasterCard Global Service Center
provides this service for members.
CVC verification for ECR Service is optional.
How to Request CVC Verification for ECR Service

Members that use MasterCard ECR Service can request this service by
completing the CVC Verification in Stand-In Location Specification Form.
Note Members that do not currently use MasterCard ECR Service can request the ECR
service by completing the Global Service questionnaire, available from the
Use of CVC Keys

To produce ECRs with CVC technology, MasterCard either must obtain CVC
keys from issuers or receive permission from issuers to use CVC keys that they
provided to MasterCard for CVC verification in Stand-In processing.
To provide MasterCard with CVC keys and specifications, complete the CVC
Specification Form for Emergency Card Replacements.
MasterCard securely stores these keys and components, allowing access to the
information only to generate CVC coding for the ECRs processed through the
Global Service Center.

Cardholder-activated Terminals
Cardholder-activated terminals (CATs) are usually unattended terminals that
accept bankcards, debit, charge, and proprietary cards. These terminals are
frequently installed at rail ticketing stations, gasoline stations, toll roads,
parking garages, and other merchant locations.
Types of CATs
MasterCard has identified the following types of CATs, defined by levels.
CAT Type Level Example

Automated Dispensing 1 PIN required. Installation of ADMs must be
Machines approved and registered by MasterCard.
Self-service Terminals 2 (includes automated fuel dispensers
Limited Amount Terminals 3 Terminals with a maximum approval amount of
USD 40
In-flight Commerce Terminal 4 Terminals located on airplanes
Electronic Commerce 6 Electronic commerce transactions
Transponder 7 Transponder transactions
For procedures related to authorization and other processing requirements

related to each CAT level, see the GCMS Reference Manual.
Automated Dispensing Machines

An Automated Dispensing Machine (ADM) is a cardholder operated,
unattended device that dispenses product(s) directly to the customer, such as a
fuel dispenser.
ADMs must accept personal identification numbers (PINs) and must do all of
the following:
• Transmit the full, unaltered magnetic stripe in the authorization request
message
• Authorize all transactions
These terminals must be registered with and approved by MasterCard under

the requirements published in the GCMS Reference Manual.

Self-service Terminals
A self-service terminal is a customer activated terminal, especially one
including the functions both of delivering and paying for goods (for example,
in an automatic fuel vending system). Example of self-service terminals
include (but are not limited to) automated fuel dispensers that use card
acceptor business code/merchant category code (MCC) 5542.
Self-service terminals must transmit the full, unaltered magnetic stripe or

required smart card information. They have a merchant floor limit of USD 0.
The maximum transaction amount that may be approved for transactions
originating at a self-service terminal is USD 100.
Self-service terminals are not capable of accepting a PIN at the point of

interaction.
MasterCard Handling of Self-service Terminal Requests

Both Stand-In processing and X-Code processing also apply the maximum limit
of USD 100.
Self-service terminal requests are sent to the issuer whenever the issuer is
available, regardless of Limit-1 parameters.
For information about USD 1 authorization requests, see the GCMS Reference
Manual.
Limited Amount Terminals

Limited amount terminals are terminals that require offline authorization
against the Electronic Warning Bulletin files, stored on the terminal or on the
acquirer host. The maximum amount that may be approved for transactions
originating at a limited amount terminal is USD 40.
Limited Amount terminals include terminals used by industries that generate

low risk, low dollar transactions, such as fast food restaurants.

In-flight Commerce
In-flight commerce (IFC) identifies transactions that are conducted via
interactive video terminals by passengers on long-distance airline flights.
These transactions may include the following four categories:

• Purchases (such as on-board duty-free purchases and merchandise mailed
post-flight)
• Entertainment (such as movies and video games)
• Services (such as information services and travel and entertainment
reservations)
• Gaming (video versions of gambling options such as poker, slot machines,
and skill-based contest games from which the players’ scores determine the
winners’ allocation from a wager pool)
For processing requirements for IFC gaming transactions, see the GCMS
Reference Manual.
IFC Blocked Gaming File

Issuers have the option to block their cardholders from participating in IFC
gaming by listing their BINs in the IFC Blocked Gaming File.
Note The IFC Blocked Gaming File applies only to in-flight commerce gaming, and not
to other IFC activity.
How to List BINs in the IFC Blocked Gaming File
To list BINs in this file, complete the IFC Range Blocking for Gaming
Transactions form.
Effective Dates for the IFC Blocked Gaming File

th
Effective dates for the IFC Blocked Gaming File are the first and 15 day of
each month. MasterCard must receive issuer listings at least two weeks before
the effective date to be included in the file.

Distribution of the IFC Blocked Gaming File
Distribution of the IFC Blocked Gaming File occurs two times each month.
MasterCard provides it either via a Banknet bulk file or via MasterCard File
Express. See the file layout in the IFC Blocked Gaming Transactions form for
more information.
The distribution is a three-step process.
Stage Description
1. MasterCard creates the IFC Blocked Gaming File at approximately 13:00 St.
Louis time and distributes it to acquirers’ MIPs.
2. Acquirers stage the file for unloading and distribute it to their gaming service
providers.
3. Gaming service providers must ensure timely delivery and installation of the
IFC Blocked Gaming File to the on-board servers that monitor IFC
transactions.
Note Because MasterCard requires IFC Blocked Gaming File access before every
gaming transaction, acquirers and gaming service providers must distribute and
install the file when they receive it.
Restrictions on IFC Gaming Wins and Losses
MasterCard restricts IFC gaming wins and losses as follows:

• Net gaming losses cannot exceed USD 350 per flight per MasterCard
cardholder account.
• Net gaming wins cannot exceed USD 3,500 per flight per MasterCard
cardholder account.
Gaming service providers must monitor IFC gaming transactions for the
duration of each flight to ensure that cardholder accounts do not exceed the
specified transaction limits.
MasterCard Processing of IFC Gaming Transactions
In-flight commerce gaming transactions bypass Limit-1 processing (that is, they
go directly to the issuer).
Stand-In processing and X-Code processing return a response of decline for in-
flight gaming transactions that exceed USD 350.

Electronic Commerce Transactions

Cardholders may initiate electronic commerce transactions from a consumer PC
connected to a network such as the Internet.
Transponder Transactions
Transponders use radio frequency signals to exchange identification
information with unattended terminals. Cardholders can use transponders to
initiate transactions at these unattended terminals.

Check Guarantee
Check Guarantee
The check guarantee service ensures funds availability when the check reaches
the payee bank for clearing.
MasterCard provides the check guarantee service in conjunction with

TeleCheck, TeleCredit, and JBS.
Check guarantee is an optional service.
Requirements for Authorization Request/0100 Messages

Check guarantee transactions have particular requirements for the following
fields in Authorization Request/0100 messages:
• Primary Account Number (PAN)
• Processing Code
• Card Acceptor ID Code
• Date, Action
• Account ID-1
• Account ID-2
Requirements for Authorization Request Response/0110

Messages
Check guarantee transactions have particular requirements for the following
fields in Authorization Request Response/0110 messages:
• Response Code
• Additional Data—Private Use
For the data requirements as they apply to the authorization message formats,
see the Customer Interface Specification manual.

Country Level Authorization
Country Level Authorization

Country level authorization is a service that allows issuers of local-use-only
cards to have the Authorization System automatically decline all local-use-only
authorization outside of their country. The Authorization System compares the
data in the point-of-service (POS) country code field with the issuer’s country.
The Authorization System only forwards authorizations acquired within the
issuer’s country to the issuer for processing. The Authorization System
declines all other transactions.
Country level authorization is an optional service.
Process for Country Level Authorization

The following table shows the process that the Authorization System follows if
the issuer designates the BIN for local-use-only.
Stage Description
1. When the acquirer MIP receives an Authorization Request/0100 message, the
Authorization System checks whether the issuer designated the BIN for local-
use-only.
2. For BINs for which the issuer designated the BIN for local-use-only, the
Authorization System compares:
The issuer’s country on file at MasterCard to
The POS Country Code, DE 61 (Point-of-Service [POS] Data), positions 14–16 of
the Authorization Request/0100 message.
An accurate match depends on acquirers including the correct data in this field.
WHEN the issuer’s

country… THEN the Authorization System…
Matches the POS Country Continues with normal processing.
Code
Does not match the POS Returns a response of 62 (Restricted Card) in DE
Country Code 39 (Response Code) of the Authorization
Request Response/0110 message.
Note Use of the Country Level Authorization service does not alter a member’s
responsibility for the use of local-use-only cards outside the country of issuance,
including liability for all authorized and all below-the-floor-limit transactions.
In addition, MasterCard assumes no liability for improper authorizations of such
transactions that may result from issuer, acquirer, or merchant errors, or from
Authorization System or Country Level Authorization service outages.

Electronic Commerce
Electronic Commerce
Electronic commerce transactions are non–face-to-face, online transactions that
use electronic media over a network, either public such as the Internet or
private such as an extranet. Cardholders usually initiate electronic commerce
transactions from consumer PCs.
Member Requirements
To be able to process electronic commerce transactions, members must meet
the following requirements.
Issuers
All issuers must be able to receive and process all electronic commerce data
present in the Authorization Request/0100 messages.
Acquirers
All acquirers must properly identify electronic commerce messages within the
Authorization Request/0100. They must be able to receive and to process
electronic commerce Authorization Request Response/0110 messages.
MasterCard may assess financial noncompliance assessments to acquirers that

do not properly identify electronic commerce messages.
Process for an Electronic Commerce Transaction

The following diagram illustrates the flow of a typical electronic commerce
transaction.
Figure 9.15—Flow of an Electronic Commerce Transaction
Internet
Banknet
Network
Merchant Acquirer Issuer
Cardholder
at PC

Electronic Commerce
Stage Description
1. A cardholder accesses a merchant’s Web site via the Internet and requests to
make a purchase.
2. The merchant submits the cardholder’s information to the acquirer.
3. The acquirer sends an Authorization Request/0100 message, through the
Banknet network to the issuer.
4. The issuer makes the authorization decision and replies using an Authorization
Types of Electronic Commerce Transactions

There are various types of electronic commerce transactions that members may
send and receive through the Banknet® telecommunications network.
For more information regarding MasterCard® SecureCode™, including detailed

transaction flows and participation requirements, see the SecureCode Member
Enrollment and Implementation Guide.
The Authorization Request (Electronic Commerce Purchase)/0100 message is

described as follows:
When requesting authorization for an electronic commerce transaction,

acquirers send the types of data shown in the next table in the Authorization
Request (Electronic Commerce Purchase)/0100 message. This data allows
issuers to assess the risk associated with electronic commerce transactions.
Required Fields for the

Authorization Request (Electronic
Commerce Purchase)/0100 Required Data
DE 22 (Point-of-Service [POS] Entry 81 = PAN entry via electronic commerce,
Mode), subfield 1 (POS Terminal PAN including chip
Entry Mode)
DE 61 (Point-of-Service [POS] Data), 2 = Off premises of card acceptor facility
position 3 (POS Terminal Location (cardholder terminal including home
Indicator) PC, mobile phone, PDA)
DE 61 (Point-of-Service [POS] Data), 5 = Electronic order (home PC, Internet,
position 4 (POS Cardholder Presence mobile phone, PDA)
Indicator)
DE 61 (Point-of-Service [POS] Data), 6 = Electronic commerce
position 10 (CAT Level Indicator)

Electronic Commerce
Required Fields for the

Authorization Request (Electronic
Commerce Purchase)/0100 Required Data
DE 48, the first data position TCC of T (Phone, Mail, or Electronic
(Additional Data—Private Use) Commerce Order)
TCC of U (Unique)
TCC of P (Payment Transaction)
DE 48 (Additional Data—Private Use), Merchant or cardholder certificate serial
subelement 40 (Electronic Commerce number, or both (as applicable)
Merchant/Cardholder Certificate Serial
Numbers)
DE 48 (Additional Data—Private Use), Electronic Commerce Security Level
subelement 42, subfield 01 (Electronic Indicators, which includes:
Commerce Security Level Indicator and • Security Protocol
UCAF Collection Indicator)
• Type of Cardholder Authentication (that
is, whether there is any cardholder
certificate or chip card-produced
cryptogram associated with the
transaction)
• Universal Cardholder Authentication
Field (UCAF) Collection Indicator, which
denotes the UCAF capabilities of the
merchant’s Web site
DE 48 (Additional Data—Private Use), UCAF data (as applicable)
subelement 43 (Universal Cardholder
Authentication Field [UCAF])
DE 55 (Integrated Circuit Card (ICC) Integrated circuit card produced cryptogram
System-related Data) (only applies if cryptogram is sent to the
merchant)
Flow of an Electronic Commerce Authorization Transaction

An electronic commerce authorization transaction may follow different
processes, depending on the security protocol involved in the transaction.
Following are flows and process information for authorization transactions
using:
• No security protocol
• Channel encryption
• SecureCode transaction using the Universal Cardholder Authentication
Field (UCAF)

Electronic Commerce
No Security Protocol
The following diagram illustrates the flow of an electronic commerce
Authorization Request/0100 and the Authorization Request Response/0110.
The example shows a transaction with no security protocol.
Figure 9.16—Electronic Commerce Flow—No Security Protocol
3 4
No authentication of Acquirer has no Issuer has no

merchant. Merchant authentication of authentication of
sees all cardholder merchant or cardholder. merchant or cardholder.
information
1
2
5
No protection
over the 0100 0100 0100 0100
Banknet
Internet Network
Merchant Acquirer 0110 0110
0110 0110 MIP Issuer
8 7 MIP
6
Stage Description
1. The cardholder browses the Internet until the cardholder is ready to make a
purchase from a merchant. In this example, the cardholder does not have
authentication of the merchant at any time.
2. The cardholder’s browser sends the purchase and payment information over
the Internet to the merchant. In this example, no security protocol protects
the request.
3. The merchant receives the purchase information and has access to all of the
cardholder account data that the cardholder provided (including payment
information).
4. The merchant requests authorization from the acquirer.
5. The acquirer generates an Authorization Request/0100, including both of the
following:
• Cardholder payment data
• Appropriate data element values that identify this as an electronic
commerce transaction with no security protocol and no cardholder
authentication
6. The issuer receives the authorization request and generates an Authorization
Request Response/0110.
7. The acquirer receives the Authorization Request Response/0110 and sends the
response back to the merchant.

Electronic Commerce
8. The merchant provides acknowledgement to the cardholder (still unprotected

as it travels over the Internet).
Channel Encryption
Figure 9.17 illustrates the flow of an electronic commerce Authorization
Request/0100 message and the Authorization Request Response/0110 message.
The example shows a transaction that uses channel encryption protocol
between the cardholder and the merchant.
Figure 9.17—Electronic Commerce Flow
3 4
No authentication of Acquirer has no
merchant. Merchant authentication of
sees all cardholder merchant or Issuer has no
information. cardholder. authentication of
1
2 merchant or cardholder.
5
Protection
over the 0100 0100 0100 0100
Banknet
internet Network
Merchant Acquirer 0110 0110
0110 0110 MIP Issuer
8 7 MIP
6
Goods and
Services
Can open
Order
purchase
information
Authorization Request
Payment
Information Can open Opens
payment payment
information information
Authorization Request Response
Response
Stage Description
1. The cardholder browses the Internet until the cardholder is ready to make a
purchase from a merchant.
2. The cardholder’s browser, which supports channel encryption (that is, SSL),
sends the purchase and payment information to the merchant. Channel
encryption protects the information over the Internet.
3. The merchant receives the purchase information and has access to all of the
cardholder account data that the cardholder provided.
4. The merchant requests authorization from the acquirer.

Electronic Commerce
Stage Description
5. The acquirer generates an Authorization Request/0100 message, including
both of the following:
• The cardholder payment data
• The appropriate data element values that identify this as an electronic
commerce transaction with channel encryption protocol and no
cardholder authentication.
6. The issuer receives the authorization request and generates an Authorization
7. The acquirer receives the Authorization Request Response/0110 and sends the
response back to the merchant.
8. The merchant provides acknowledgement to the cardholder (protected by
channel encryption as it travels over the Internet).

Expired Card Override

Overriding expired card tests allows issuers to override possible expiration
date keying errors, to support reissued cards, and to identify transactions they
may otherwise approve. Issuers will receive all Authorization Request/0100
messages containing expired expiration dates. Issuers will have the
opportunity to review each transaction, and subsequently approve or decline
each transaction.
Note MasterCard will automatically enable issuers for Expired Card Override. Issuers
that want MasterCard to reject MasterCard Authorization Request/0100
messages containing expired expiration dates must complete the Expiration
Date Test Form.
System Definition of an Expired Card

The Authorization System defines an expired card as a card with an expiration
date of one of the following:
• Earlier than the current processing year and month
• 20 years later than the current processing year
Members can locate the expiration date in DE 14 (Date, Expiration), and from
the magnetic stripe track, in DE 45 (Track 1 Data), or DE 35 (Track 2 Data).
Expired Card Tests

The expired card tests occur at the acquirer MIP.
The following table provides examples of MasterCard expired card test logic.
Authorization Authorization
Transaction Card Expiration Request Expiration System
Date Date (MM/YY) Date (YY/MM) Response Explanation of Logic
0902 1002 0210 Accept October 2002 is later than the
(September (October 2002) (October 2002) current processing year and
2002) month. The system accepts the
date as valid.
0902 0201 0102 Decline February 2001 is earlier than the
(September (February 2001) (February 2001) current processing year and
2002) month. The system declines the
date as expired.

Date Date (MM/YY) Date (YY/MM) Response Explanation of Logic
0902 0822 2208 Accept August 2022 is less than 20 years
(September (August 2022) (August 2022) from September 2002. The system
2002) accepts the date as valid, because
2022 is still within 20 years from
2002.
0902 0123 2301 Decline January 2023 is 20 years and four
(September (January 2023) (January 2023) months from September 2002. The
2002) system declines the dates as
expired, because 2023 is more
than 20 years from 2002.
Issuer is Enabled for Expired Card Override

When a transaction fails the expired card tests and the issuer is enabled for
Expired Card Override, the Authorization System forwards the Authorization
Request/0100 message to the issuer for processing.
Issuer is Not Enabled for Expired Card Override

If the issuer is not enabled for Expired Card Override, the Authorization
System generates an “expired card” authorization response of 54 (Expired
Card) in DE 39 (Response Code) of the Authorization Request Response/0110
message sent to the acquirer.
Potential Inappropriate Declines

If the issuer is not enabled for Expired Card Override, the Authorization
System may decline cardholder transactions that the issuer would have
approved if the Authorization Request/0100 messages were sent to the issuer.
Expiration Date Errors

Expired card tests at the acquirer MIP assume that the expiration date in the
authorization message is correct. However, improper keying,
misunderstanding of the date, or other human error can cause the expiration
date listed in the authorization message to be incorrect.
The following table provides an example of a reason a merchant might receive

an incorrect expired card authorization response.

Date Date (MM/YY) Date (YY/MM) Response Explanation of Error
0902 05/31/03 3105 Decline May 2003 is eight months from
(September (merchant entered September 2002. However, the
2002) 0531 instead of 0503) merchant entered the month (05)
and the day (31), but not the year
(03). The Authorization System
reads the expiration date as May
2031.
The system declines the date as expired, because 2031 is more than 20 years
from 2002. However, the expiration date is valid, and perhaps the issuer
would have accepted the transaction.
If the issuer is enabled for Expired Card Override and is unavailable, the
Authorization System performs the expired card tests, either in Stand-In
processing or during X-Code processing.
Stand-In Processing
Stand-In performs an expired card test. For transactions that fail the expired
card test, Stand-In processing:
• Returns to the acquirer code 54 (Expired card) in DE 39 (Response Code)
of the Authorization Request Response/0110 message
• Stores the transaction in the Store-and-Forward queue with code 0029 in
DE 60 of the Authorization Advice/0120 message, available for issuer
retrieval. (Code 0029 indicates that Stand-In processing returned code 54
in the Authorization Request Response/0110 message.)
• Identifies the transactions with reason code R (Negative File) on the
following reports:
− AB201010-AA (Authorization Detail)
− AB111010-AA (Stand-In Detail Authorization)
− AB517010-AA (Issuer Call Referral Tiered Detail)
See the MasterCard Consolidated Billing System Manual for samples of
these reports.

Figure 9.18—Expired Card Override—Stand-In Processing
Expired Card
Issuer is
Test Override:
unavailable.
Yes
Banknet
Network x x
MIP
0110 message:
For expired dates, Stand-In
returns "54" in DE 39. Store-and-Forward
Queue:
Stand-In For expired dates,
Processing Stand-In stores SAF
"0029" in DE 60, Queue
positions 4-7
Stand-In performs the
expired date edit.
X-Code Processing
X-Code processing performs an expired card test. For transactions that fail the
expired card test, X-Code processing returns to the acquirer code 54 in DE 39
of the Authorization Request Response/0110 message.

Figure 9.19—Expired Card Override: X-Code Processing
Expired Card
Test Override: Issuer is
Yes unavailable.
Banknet
Network x x
Acquirer MIP x MIP Issuer

0110 message: X-Code
For expired dates, performs the
X-Code returns "54" expired date
in DE 39. edit.
MIP
Stand-In
Processing
Stand-In is unavailable.

Fleet Card Transactions

Fleet Card transactions are identified by the following characteristics:
• Bank identification number (BIN) range 556000–556999
• MCC 4468, 5499, 5541, 5542, 5983, or 7511 (or 9752, United Kingdom only)
Incentive Interchange Rates

Acquirers receive incentive interchange rates for transactions that support the
data collection requirements of MasterCard Corporate Fleet Card® transactions.
To receive the incentive interchange rates for Fleet Card transactions, acquirers
must capture specific data to support submission requirements for clearing
records.
For clearing record requirements, see the GCMS Reference Manual.

Messages
To support Fleet Card transactions, acquirers must include specific data in
Authorization Request/0100 messages.
To determine which data to include, the merchant terminal must recognize the
Product Type Code on the magnetic stripe. The Product Type Code
determines the:
• Terminal prompt at the POI location
• Data that the acquirer must include in the DE 48 (Additional Data—Private
Use) field of the Authorization Request/0100 message
Terminal Prompt at the POI Location

When the merchant terminal reads the Product Type Code, the terminal
responds by prompting for certain information.
Product Type
Code Value Terminal Prompt—Acquirer May Receive from Merchant
1 ID Number and Odometer
2 Vehicle Number and Odometer
3 Driver Number and Odometer

Product Type
Code Value Terminal Prompt—Acquirer May Receive from Merchant
4 Odometer Only
5 No Prompt
Data in the Authorization Request/0100 Message

When the acquirer receives the Fleet Card data from the merchant, the acquirer
must include some of the data in the DE 48 (Additional Data—Private Use)
field of the Authorization Request/0100 message.
Product Type Acquirer Must Include in the Position in the Authorization

Code Value 0100 Message Request/0100 Message
1 ID Number DE 48, subelement 98
2 Vehicle Number DE 48, subelement 99
3 Driver Number DE 48, subelement 98
4 None None
5 None None
Fleet Card Authorization Response

Acquirers that support the Fleet Card program must also be able to interpret
the additional data provided by the issuer in DE 44 of the Authorization
If the issuer declines a transaction because of an invalid driver, ID, or vehicle

number, the issuer will return an Authorization Request Response/0110
message with value 12 in DE 39. The issuer will return additional data in
DE 44 that explains the reason for the decline. The terminal at the point of
interaction must display this additional data.
Initiating Fleet Card Support

To learn more about supporting the Fleet Card program, contact the Customer
Operations Services team. Refer to the contact numbers in the Using this
Manual chapter.

Global Automated Referral Service

The Global Automated Referral Service (GARS) is a service that streamlines the
process of responding to call referrals for both acquirers and issuers.
GARS is mandatory in the U.S. region and optional for members outside the
U.S. region.
Benefits of Using GARS

GARS reduces the processing time for call referrals from an average of 20
minutes to an average of five minutes or less. It includes the following
features:
• A toll-free phone number connecting acquirers to issuers worldwide, with
telex processing where necessary. Routing is based on the card account
number entered by the acquirer. (For the toll-free phone number that
applies to your area, contact the Customer Operations Services team.)
• Issuer response time parameters to support the timely provision of
authorization responses
• Stand-In processing for calls not answered within the required time frame,
to guarantee a timely response to the acquirer
• Tracking and reporting of issuer and acquirer performance
• Performance monitoring and pricing that motivate call referral completion
and eliminate unnecessary issuance of call referrals
GARS Process
When the merchant receives a “refer to card issuer” authorization response, the
merchant calls the acquirer. The acquirer calls GARS, which uses one of the
following four paths to obtain an authorization response:
• GARS connects the acquirer to the issuer
• GARS connects the acquirer to Stand-In processing
• A GSC agent sends a telex to the issuer
• A GSC agent connects the acquirer to Stand-In processing

Figure 9.20—GARS Connects Acquirer to Issuer
GARS
Acquirer Issuer
GARS connects the acquirer to the issuer. The acquirer receives the
authorization response from the issuer and relays the response to the
merchant.
Figure 9.21—GARS Connects Acquirer to Stand-In Processing
GARS
Issuer does not
respond within
Acquirer 30 seconds Issuer
Stand-In
If the issuer does not respond to the phone call within 30 seconds, GARS
connects the acquirer to MasterCard Stand-In processing. The acquirer
receives the authorization response from MasterCard Stand-In processing. The
acquirer relays the response to the merchant.
Figure 9.22—GSC Agent Sends Telex to Issuer
MasterCard
GARS GSC
Agent
Acquirer Issuer
If the issuer does not use GARS, GARS connects the acquirer to a MasterCard
Global Service Center agent. The agent initiates a telex to the issuer. The
issuer provides the authorization response to the Global Service Center agent,
who communicates the response to the acquirer. The acquirer relays the
response to the merchant.

Figure 9.23—GSC Agent Connects Acquirer to Stand-In Processing
MasterCard
GARS GSC agent connects GSC Issuer does not
the acquirer Agent respond to the telex
Acquirer to Stand-In. within two minutes. Issuer
Stand-In
The agent connects the acquirer with Stand-In processing if either of the
following is true:
• The issuer does not acknowledge the telex within two minutes, or
• The issuer acknowledges the telex within two minutes but does not
provide an authorization response within 10 minutes.
The acquirer receives the authorization response from Stand-In processing.

The acquirer relays the response to the merchant.
Figure 9.24 illustrates the entire GARS process with all four paths.

Figure 9.24—GARS Process Flow
Merchant
Merchant receives call

referral response and
calls acquirer.
Acquirer
Acquirer calls GARS.
Yes: GARS
GSC agent connects acquirer Is a telex No: GARS routes
required? call to issuer.
to a GSC agent.
Issuer
Issuer No: GARS Issuer

responds No: GSC agent responds
connects acquirer Stand-In connects acquirer in < 30
in < two to Stand-In.
minutes? to Stand-In. seconds?
GSC agent Stand-In Yes: GARS

telexes issuer and provides connects
provides reponse response to issuer and
to acquirer. acquirer. acquirer.

Acquirer Use of GARS

GARS helps acquirers to more quickly receive a response to a call referral from
issuers.
Acquirer Procedures
Acquirers receiving a “refer to card issuer” authorization response should use
the following procedure to receive an authorization decision from the issuer.
Step IF… THEN you should…

1. You receive an authorization Dial the GARS phone number for your
response of “refer to card issuer.” country (provided when you sign up
for GARS) within 11 minutes of the
issuance of the “refer to card issuer”
message.
2. GARS says, “Welcome to the Enter your six-digit billing ICA number,
MasterCard Global Automated Referral followed by the pound sign (#).
Service. If you make an error entry at
any time, press the star key. Please
enter the Acquiring ICA number
followed by the pound sign.”
3. GARS says, “The ICA number entered Press either the one (1) or two (2) key.
is XXXXXX. If correct, press one. If
not correct, press two.”
4. GARS says, “Please enter the Enter the 16-digit MasterCard
MasterCard account number followed cardholder account number followed
by the pound sign.” by the pound sign (#).
5. GARS validates the MasterCard Discuss the authorization transaction
account number, dials the issuer, and
the issuer comes on the line.
6. The issuer provides you with an Provide the merchant with the issuer’s
authorization response. authorization response.

Stand-In Processing Procedures
If the issuer does not connect with the call within 30 seconds, GARS connects
you to Stand-In processing. To receive an authorization decision from Stand-
In processing, follow these steps.

1. GARS says, “We appreciate your Follow the instructions given by GARS.
patience. The issuer is not
available at this time. Your call
will now be serviced by
MasterCard Stand-In processing.”
2. GARS says “For a code 10 call, IF you press… THEN GARS will…
press 1. For all other calls, press
1 for a code 10 call Transfer the call to
the pound (#) key.”
a MasterCard agent
for assistance.
# for another type of Go to step 3.
call
3. GARS says “Please enter the MCC Enter the MCC number and the pound
number, followed by the pound sign.
sign.”
4. GARS says “Please enter the Enter the merchant number and the pound
merchant number, followed by sign
the pound sign.”
5. GARS says “Please enter the four Enter the four-digit expiration date in
digit expiration date in MM/YY MM/YY format and the pound sign.
format, followed by the pound
sign.”
6. GARS says “Please enter the Enter the transaction amount in U.S. dollars
transaction amount in U.S. dollars and cents and the pound sign
and cents, followed by the pound
sign.”
7. GARS says, “You entered X IF you press… THEN GARS will…
dollars and X cents. If correct,
1 Go to step 8.
press 1. If not correct, press 2.”
2 Repeat step 6.
8. GARS says “Please choose one of Enter the number for the transaction type
the following transaction types: of this transaction.
• For retail, press 1. IF you press… THEN GARS will…
• For phone or mail order,
1, 2, 3, or 4 Go to step 10.


press 2. 5 Go to step 9.
• For cash advance, press 3.
• For travel, press 4.
• For all other transaction
types, press 5.”
9. GARS says: Enter the number for the transaction type
• “For automobiles, press 1. of this transaction.
• For food, press 2.
• For hotel, press 3.
• For tuition or hospital,
press 4.
• For unique, press 5.
• For payment, press 6.”
10. GARS provides one of the Provide the merchant with Stand-In
following authorization responses: processing’s authorization response.
• “The approval code is
XXXXXX. To repeat the
approval code, press 1. To
end this call, press 2.”
• “This transaction has been
declined. Thank you for
calling MasterCard
International. Goodbye.”
Telex Processing Procedures
If the GARS database determines that a telex must be used to complete the
call, GARS places you on hold (and does not initiate Stand-In processing). A
MasterCard Global Service Center agent telexes the issuer. The MasterCard
agent obtains an authorization response from the issuer and provides the
authorization response.
The MasterCard agent initiates Stand-In processing if:

• The issuer does not acknowledge the telex within two minutes, or
• The issuer acknowledges the telex within two minutes but does not
provide an authorization response within 10 minutes.
In this case, the Stand-In Processing procedures apply. Stand-In processing

provides the authorization response to you.

Acquirer Best Practices

MasterCard recommends that acquirers promote efficient and accurate
processing of call referrals by using the following practices when talking to
issuers’ agents:
• Be prepared to provide the following authorization request information to
the issuer’s agent:
− ICA number
− Card account number
− Expiration date
− Card acceptor business code/merchant category code (MCC)
− Transaction amount in U.S. dollars
• Keep the merchant on hold on another phone line, in case the issuer’s
agent requests additional information from the cardholder or merchant.
(Acquirers should not conference merchants into phone calls with the
issuers’ agents.)
• Initiate the conversation with slow, distinct pronunciation. Be aware that
the issuer’s agent might not be comfortable with the acquirer’s primary
language.
• Request clarification when uncertain of the communication.
If the issuer or its agent cannot respond to the call referral in a timely manner,
through either GARS or the MasterCard International Telecommunications
Authorizations Center (ITAC), GARS routes the call referral to the MasterCard
Central Site Stand-In processing facility. Acquirers should allow additional
time to complete the call and be prepared to provide additional authorization
information, as required by Stand-In processing.
Acquirers should monitor call referral response rates to identify merchants that
do not comply with the call referral process. To help acquirers monitor their
merchants, MasterCard provides GARS members with the Monthly Acquirer
Response Below Target Report (GR128010-BB).
Acquirers receive reimbursement automatically when they use GARS in

response to a “refer to card issuer” authorization response.
Note Reimbursement to acquirers using GARS is automatic. If acquirers use member-

to-member methods of communication, they must request reimbursement
through the 667 record (usage code 100).

Methods Acquirers Can Use to Improve GARS Performance

The acquirer can improve GARS performance and ensure that it qualifies for
reimbursement by doing the following:
• Test your phone system to ensure that it generates true touch-tones on
outbound calls. The GARS connection to the issuer is dependent on
touch-tones.
• Communicate the GARS procedures to your agents. MasterCard is
available to assist you in your training efforts.
• Consider adding a conference call feature to your phone system so that
you, your merchant, the cardholder, and the issuer can interact directly.
• Consider adding speed dialing to your phone system to save time when
calling GARS.
• Communicate the GARS procedures and the importance of GARS to your
merchants. Encourage them to call you (rather than request another form
of payment) when a call referral message appears on their POI devices.
Issuer Use of GARS

GARS helps issuers because it provides them with a method to more quickly
respond to acquirers requesting authorizations for call referral responses.
Issuer Procedures
When you issue a response of “refer to card issuer” and the acquirer contacts
you via GARS, follow these steps.

1. GARS says, “Incoming MasterCard Press the required zero (0) and pound
referral call. Press the zero key and (#) keys within 30 seconds.
the pound key now.” If you do not enter “0#” within 30
seconds, GARS connects the acquirer to
Stand-In processing for the
authorization response.
2. GARS connects you with the acquirer Obtain the necessary authorization
to discuss the transaction. information from the acquirer and
communicate your authorization
response to the acquirer.

Issuer Best Practices

MasterCard recommends that issuers promote efficient and accurate processing
of call referrals by using the following practices when talking to acquirers’
agents:
• Initiate the conversation with slow, distinct pronunciation. Be aware that
the acquirer’s agent might not be comfortable with the issuer’s primary
language.
• Request clarification when uncertain of the communication.
To improve their call referral processes, issuers should monitor:

• The number of call referrals they generate in response to Authorization
Request/0100 messages. Issuers should use call referrals only for high-risk
situations because call referrals result in an expensive and time-consuming
process, which can be detrimental to cardholder relationships.
• The rate of call referrals going to Stand-In processing. Issuers should
ensure that they have sufficient call center staff and a stable
telecommunications infrastructure to be able to support the number of call
referrals they generate.
• The average duration of call referrals. Issuers should try to meet the goal
of keeping call referrals to five minutes or less. Short call durations result
in reduced transaction times, improve the call referral process for
merchants and cardholders, and provide the best use of resources.
To help monitor Stand-In processing response rates and call durations,

MasterCard provides the following reports to GARS issuers:
• Weekly Issuer Transaction Detail Report (GR122010-AA)
• Monthly Issuer Call Referral Report (GR129010-AA)
Issuers should establish Stand-In processing transaction limits that are specific
to transactions approved through GARS call referrals. The MasterCard Central
Site Stand-In processing facility ensures a timely authorization decision when
the issuer is not available.
MasterCard suggests that GARS issuers establish two phone numbers for GARS
call referral processing. Issuers can have all intracountry call referrals routed
to one phone number and all intercountry call referrals routed to another
phone number. Issuers can better anticipate potential language differences
and offer enhanced services to cardholders traveling outside of their countries.

Charges to the issuer apply for issuing each call referral and for completed
GARS calls initiated by the acquirer. Issuers also pay a noncompliance
assessment for Stand-In processing if they fail to answer a GARS call within 30
seconds or a GARS telex within two minutes.
Methods Issuers Can Use to Improve GARS Performance

Issuers can use the following methods to improve GARS performance:
• Ensure that your phone system can generate true touch-tone signals. If
you use an automated system such as a Voice Response Unit to answer
incoming calls, be sure the system responds with a zero key followed by a
pound key (0, #). This will allow the acquirer’s agent to hear the
instruction of your automated system to expedite your call referral
response.
• Ensure that your system is prepared to answer phone calls within 30
seconds and telex calls within two minutes. Calls not answered within
these time frames will be routed to the Stand-In System.
• Determine whether to establish specific Stand-In transaction limits for
GARS. (Complete the GARS Initiation and Change Form to establish
specific limits.)
• Determine whether to establish one phone number for all incoming GARS
calls or two phone numbers: one for GARS requests from acquirers
located outside of the issuer country and one for domestic GARS requests.
Indicate the phone numbers on the GARS Initiation and Change form.
• Review the information you provided to Stand-In processing either online
or on the Stand-In Processing Worksheet. In particular, check the
following:
− Referral phone number provided. GARS uses this number to route
calls to you.
− Stand-In processing parameters
Submit any changes to your member representative at least 15 days before

using a new phone number or new parameters.
• Determine your ability to handle the volume of completed call referrals
using GARS. Because GARS call referrals are fast and easy, there may be
an increase in the ratio of calls completed to referrals issued. You may
want to consider adjusting staffing and equipment levels to ensure higher
control and risk reduction and avoid excessive Stand-In processing fees.
• Communicate to your employees the importance of answering GARS calls
quickly to avoid additional Stand-In processing fees. MasterCard is
available to assist you in your training efforts.

Monitoring Call Referral Activity

The minimum response and talk-time standards outlined in chapter 4 apply to
all call referrals—domestic and international—whether processed through
GARS or direct member-to-member communications.
Issuer and Acquirer Performance Reports

Issuers and acquirers can monitor call referrals completed through GARS using
the following reports found in chapter 10:
• GARS Weekly Acquirer Transaction Detail Report

• GARS Weekly Issuer Call Detail Report
• GARS Monthly Acquirer Response Report
• GARS Monthly Acquirer Response Below Target Report
• GARS Monthly Issuer Call Referral Report
In addition, samples of the following reports showing charges or

reimbursements associated with GARS appear in the MasterCard Consolidated
Billing System Manual:
• Issuer Authorization Detail Report and Issuer Call Referral Detail Report—
shows issuer charges for call referrals
• Acquirer Authorization Detail Report and Acquirer Call Referral Detail
Report—shows acquirer reimbursement for completed call referrals
• Call Referral Summary Report—shows tiered pricing for excessive issuer
call referral activity
• Guaranteed Issuer Availability Report
Store-and-Forward Messages
Issuers also can monitor call referrals completed through GARS via store-and-
forward (SAF) messages. MasterCard generates Authorization Advice/0120
messages for GARS transactions that Stand-In processes. MasterCard uses a
promotion code of “MCGARS” to identify GARS Stand-In activity. See chapter
5 for more information about retrieving SAF messages, and the “Promotion
Code” topic in this chapter for more information about promotion code.
To Request GARS or Change GARS Parameters

To begin to use GARS or to change GARS parameters, complete the GARS
Initiation and Change Form. Send it to the address or fax number on the form.

M/Chip On-behalf Services

MasterCard provides M/Chip on-behalf services to help issuers that want to
migrate to MasterCard M/Chip technology without having to make an initial
investment to completely upgrade their host systems for M/Chip processing.
The on-behalf services support issuers using M/Chip technology by performing
all or part of the M/Chip-related authorization processing on behalf of the
issuer for a designated account range.
The Chip to Magnetic Stripe Conversion and the M/Chip Cryptogram Pre-
validation on-behalf services are provided on a permanent basis. The M/Chip
Cryptogram Validation in Stand-In Processing on-behalf service is provided on
a dynamic basis if an issuer is not able to respond to an authorization request.
Issuers that want to use M/Chip on-behalf services may select only one of the
following services:
• Chip to Magnetic Stripe Conversion

• M/Chip Cryptogram Pre-validation
To implement one of these services, complete the Key Validation Service

Specification Form and follow the procedures in the On-behalf Key
Management (OBKM) Document Set.
Chip to Magnetic Stripe Conversion

MasterCard provides Chip to Magnetic Stripe Conversion to issuers by
performing all or part of the M/Chip-related authorization processing on behalf
of the issuer for a designated account range. MasterCard removes designated
M/Chip-related data elements and alters others before forwarding the
transaction to the issuer. MasterCard notifies the issuer that the transaction
was an M/Chip transaction and that MasterCard altered the transaction
information before sending it to the issuer.
Providing this information allows the issuer to make the authorization decision
based on information remaining in the authorization request, without having to
reject the transaction because it does not currently process M/Chip
transactions.
For more information about using the Chip to Magnetic Stripe Conversion
service, see the Customer Interface Specification manual.
The Chip to Magnetic Stripe Conversion service is optional.

M/Chip Cryptogram Pre-validation Service

The M/Chip Cryptogram Pre-validation service is for issuers that use the
M/Chip Select 2.0, M/Chip Lite 2.1, M/Chip 4.0 (EMV96 and EMV2000 session
key derivations) and EMV CCD-compliant chip cards.
This service validates the Authorization Request Cryptogram (ARQC) and

generates the Authorization Response Cryptogram (ARPC) on behalf of an
issuer.
After performing this service, MasterCard notifies issuers of the results of the
cryptogram validation. Issuers may use these results in the authorization
approval process.
For more information about using the M/Chip Cryptogram Pre-validation

service, see the Customer Interface Specification manual.
The M/Chip Cryptogram Pre-validation service is optional.
M/Chip Cryptogram Validation in Stand-In Processing

M/Chip Cryptogram Validation in Stand-In Processing is available for issuers
that use the M/Chip Select 2.0, M/Chip Lite 2.1, M/Chip 4.0 (EMV96 and
EMV2000 session key derivations) and EMV CCD-compliant chip cards.
This service authorizes M/Chip transactions within Stand-In processing when

an issuer host is not available. When Stand-In processing authorizes M/Chip
transactions, MasterCard validates the ARQC, processes the authorization
request based on the issuer’s Stand-In parameters, and generates the ARPC.
For more information about using M/Chip Cryptogram Validation in Stand-In

Processing, see the Customer Interface Specification manual.
M/Chip Cryptogram Validation in Stand-In Processing is optional.


The Magnetic Stripe Compliance Program provides an opportunity for
acquirers and processors to verify that they are capturing and sending
complete and unaltered track data, identical to the data encoded on the
magnetic stripe of the MasterCard card.
The Magnetic Stripe Compliance Program is optional for acquirers, to assist

their efforts to reduce fraud.
Note MasterCard recommends that all acquirers participate in the Magnetic Stripe
Compliance Program.
Participating in the Magnetic Stripe Compliance Program

To become a participant in the Magnetic Stripe Compliance Program, acquirers
must use the following process.
Step Action
1. Complete the Magnetic Stripe Compliance Program Application, identifying
each processor they will use.
2. Submit the forms to the Customer Operations Services team.
3. Begin submitting Authorization Request/0100 messages with value 90 in DE 22
(Point-of-Service [POS] Entry Mode), subfield 1 (POS Terminal PAN Entry
Mode) so that MasterCard can monitor the inclusion of complete and
unaltered track data.
4. Review the Magnetic Stripe Compliance monitoring reports provided by
MasterCard. These reports separate track data errors at the merchant and
terminal levels, according to acquirer/processor combination.
5. If necessary, resolve any errors identified by the monitoring reports.
MasterCard approves an acquirer for the Magnetic Stripe Compliance Program

when that acquirer resolves all integrity errors and successfully completes the
monitoring step.
Note Acquirers must notify MasterCard when they make any changes to their
acquirer/processor combinations. Examples of such changes include changing
the Forwarding Institution ID Code for transaction routing or changing the
Acquiring Institution ID Code for transaction routing.

Monitoring Phase
Monitoring typically lasts for seven calendar days, but it can last longer if the
reports identify integrity errors.
Note Until the acquirer completes the monitoring phase of the Magnetic Stripe
Compliance Program, MasterCard will alter the value in DE 22, subfield 1 to
value 02, indicating that the track data may not be complete.
If MasterCard alters the value in DE 22, subfield 1 from value 90 to value 02

while the acquirer is in the monitoring phase, MasterCard will include
information for the issuer in DE 48, subelements 88 and 89. Subelement 88
will contain value Y to indicate that MasterCard changed value 90 to value 02.
Subelement 89 will contain data to indicate edit errors in the Authorization
Request/0100 message.
Requirements for Magnetic Stripe Compliance

Following are the program requirements:
• Track 1 data, if present, must be complete and unaltered. (If Track 1 data
is not present, Track 2 data must be present.)
• Track 2 data, if present, must be complete and unaltered. (If Track 2 data
is not present, Track 1 data must be present.)
• DE 32 (Acquiring Institution ID Code) must equal a preceding zero and
then the MasterCard ICA number.
• DE 22, subfield 1 (POS Terminal PAN Entry Mode) must contain value 90.
• DE 48, position 1 (Transaction Category Code) cannot contain value T.
• DE 61, subfield 4 must contain value 0, indicating that the cardholder is
present.
• DE 61, subfield 5 must contain value 0, indicating that the card is present.
• If Track 1 or Track 2 data is used to generate other data elements, the
acquirer must ensure that the data values match. For example, the PAN
(DE 2) must match the card number in the track data, and the Expiration
Date (DE 14) must match the expiration date in the track data.
Note Issuers can vary the length of their track data and the subelements within the
track data.

MasterCard Edits
MasterCard edits Authorization Request/0100 messages from the previous day’s
activity to ensure that it is consistent with the requirements documented in the
Customer Interface Specification manual. When MasterCard identifies
erroneous data, MasterCard informs the primary member contact listed on the
Magnetic Stripe Compliance Program Application of the erroneous data.
After an acquirer becomes a participant in the Magnetic Stripe Compliance

Program, MasterCard continues to provide information about erroneous
magnetic stripe data. The magnetic stripe compliance report provides
information at the acquirer/processor, merchant, and terminal levels to help
acquirers resolve issues.
Risk of Not Participating

Acquirers that do not participate in the Magnetic Stripe Compliance Program
are at risk for:
• Message reason code 4862 (Counterfeit Transaction Magnetic Stripe POS
Fraud). For more information, see the Chargeback Guide.
• Interchange rate adjustments—Interchange compliance requires that
MasterCard approve participating acquirer/processor combinations for
magnetic stripe compliance.
• Transactions submitted for clearing by acquirer/processor combinations not
approved for magnetic stripe compliance are not eligible for some
interchange rates and may be subject to interchange adjustment. For more
information, see the Interchange Compliance Manual.
• Rejection of the clearing transaction for the International Electronic
Interchange (IEI) rate.
Note Members that choose to participate in the International Electronic Interchange

(IEI) program must first become approved participants in the Magnetic Stripe
Compliance Program.

Manual Telex Authorization Requests

Only acquirers in regions outside the U.S. can request authorization via manual
telex. These acquirers may send manual telex authorization requests only
when their primary authorization method has failed.
Acquirers may perform authorization processing via manual telex using the
following procedures.
Telex Requests
To request authorizations via manual telex, follow these steps. Acquirers that
do not use the Global Automated Referral Service (GARS) may use manual
telex in response to a call referral.
Step Action
1. Prepare a telex using the format illustrated in Figure 9.25.
2. Dial telex number: (U.S. country code) 434800. The MasterCard International
Telex Authorization Center (ITAC) has six rotary lines available and receives
telex calls on the first available line. It sends the response: 434800 ITAC UI.
3. After receiving the proper telex response, transmit the prepared telex.
Figure 9.25—Authorization Request Manual Telex Sample
R634253 C5419843331777778 E0798 D312.00 TH9999 I1990 M 8921205
Note Requesting authorization through MasterCard ensures that you will be

reimbursed for the cost of the telex.

Manual Telex Authorization Request Field Definitions
Field Name Entry Required? Field Description

R Yes The field identifier (R) followed by the
(REFERENCE NUMBER) number identifying this authorization
request.
Valid Values: Up to seven characters
(alphanumeric)
Format: RNNNNNN
R = the letter R
NNNNNN = the reference number
C Yes The field identifier (C) followed by the
(CARD NUMBER) account number on which
authorization is being requested.
Valid Values: 17 characters
(alphanumeric). Account number must
be numeric.
Format: CN
C = the letter C
N = the 16-digit account number
E Conditional The field identifier (E) followed by the
(EXPIRATION DATE) expiration date of the card. If date is
unknown, skip this field entirely and
enter the dollar amount field
immediately after the card number.
Valid Values: Five alphanumeric
characters.
Format: EMMYY
E = field identifier
MM = Month
YY = Year
D Yes The field identifier (D) followed by the
(DOLLAR AMOUNT) dollar amount for which authorization
is being requested.
Valid values: Up to 12 alphanumeric
characters, including the decimal point.
(For example, D312.00)
Format: DNNNNNNNN.NN
D = the letter D


NNNNNNNN.NN = dollar amount in
U.S. dollars
T Yes The field identifier (T), the type of
(TRANSACTION TYPE transaction, and the card acceptor
CODE/MCC) business code/merchant category code
(MCC).
Valid values: Six alphanumeric
characters
Format: TXMMMM
T = the letter T
X = alphabetic transaction type code
(See below.)
MMMM = Four-digit MCC. (See the
Quick Reference Booklet for
a list of valid MCCs.)
Transaction Type Codes:
A = Automobile/Vehicle Rental
C = Cash Disbursement
F = Restaurant
H = Hotel/Motel and Cruise Ship
Services
O = College/School Expense/
Hospitalization
P = Payment Transaction
R = Retail/All Other Transaction
T = Mail Order/Telephone Order/
Electronic Commerce Order/
Preauthorized Order
U = Unique Transaction
X = Transportation
Z = ATM Cash Disbursement
I Yes The field identifier (I) followed by the

(ICA NUMBER) MasterCard-assigned customer ID.
Valid values: Six numeric characters


M No The field identifier (M), which indicates
(MERCHANT that the transaction causes suspicion.
SUSPICIOUS) This field is optional.
Valid value: The letter M
Note: The acquirer may contact the
issuer directly under extremely
suspicious conditions.
MERCHANT NUMBER Yes The merchant identification number
that the acquirer assigns.
Valid values: Up to 15 digits
Telex Responses
After sending an authorization request, wait for the telex response. The ITAC
operator will send the response to you within three minutes.
If a response is not immediately available, you will receive the response CB.
This indicates that the authorization reply is not immediately available. When
you receive the response CB, terminate the telex call. ITAC will contact you as
soon as the response is ready. See Figure 9.26 and the field descriptions for a
sample of this response.
Figure 9.26—Delayed Response
R634253 CB
Manual Telex Delayed Response Field Descriptions
Field Name Field Description

R The field identifier (R) plus an echo of the reference
(REFERENCE NUMBER) number in the authorization request.
(RESPONSE) Message indicating that the response is delayed.
Valid value: CB

Authorization Request Response

You will receive one of the following responses:
• Approved
• Decline
• Capture Card
• Card Number Invalid
If you are a U.S. region acquirer responding to a call referral, ITAC will phone
you with the authorization response.
The following conditions apply for acquirers outside the U.S. region:
• If you are a GARS acquirer and the call referral originated via phone, ITAC
will transmit the response via phone.
• If you are a non-GARS acquirer or a GARS acquirer that received the call
referral via telex, ITAC will transmit the response via telex.
• See Figure 9.27 for a sample response via telex. Disconnect the telex line
when you receive the response.
Responses generated by either MasterCard or the issuer contain the reference

number and the authorization response as shown in following illustration.
Figure 9.27—Approved Response
R634253 Code is 123456

Approved Response Field Descriptions
Field Name Field Description

R The field identifier (R) plus an echo of the reference
(REFERENCE NUMBER) number in the authorization request.
(RESPONSE) The authorization response generated by MasterCard or
the issuer.
Preferred values are as follows:
Code is = Approved, followed by the
authorization code, consisting of two
to six alphanumeric characters
Decline = Refused
Capture Card = Pick Up
Card Number = Indicates that the cardholder number
Invalid in the authorization request is invalid.
Verify the cardnumber and make a
second attempt.
The issuer may include in the authorization response any information that the
issuer decides is necessary (for example, a telex response may include the
cardholder’s address or mother’s maiden name); this supplies a means for the
merchant to positively identify the cardholder. This information may appear
anywhere on the telex.

MasterCard ATM Network

The MasterCard® ATM Network provides cash access around the world to
credit and ATM debit cardholders by accepting cards bearing the MasterCard,
Maestro, and Cirrus logos.
All MasterCard issuers must participate in the MasterCard ATM Network to

provide cash access to their cardholders.
Where permitted, issuers may provide to their cardholders the option of

conducting balance inquiries and merchandise purchases using the MasterCard
ATM Network.
The MasterCard ATM Network is the world’s largest global ATM network. It
has more ATMs, in more countries, accessed by more cardholders, conducting
the most transactions than any other ATM network. The MasterCard ATM
Network and member processors continue to provide a superior percentage of
completed transactions. Cardholders using MasterCard, Maestro, and Cirrus
branded cards know that they can expect to receive the cash they requested.
Data Security
The MasterCard ATM Network rules require that all ATMs migrate to triple data
encryption standard (triple DES) for encryption of cardholder-entered personal
identification number (PIN). The triple DES encryption technology reduces the
likelihood of fraud losses by making it more difficult for criminals to discover
sensitive account information.
ATM Locator
The MasterCard ATM Locator is a set of Web sites and toll-free automated
voice recognition systems that cardholders use to search for ATMs.
Cardholders access the MasterCard ATM Locator using:
• The Internet
• Mobile phones
• Personal digital assistants
• Voice response telephone numbers
• Onboard vehicle navigation systems
• Bank Web sites
Maps and directions to ATMs are available in many countries.

ATM Directory
The MasterCard ATM Directory enables members and processors to efficiently
manage and market their ATM location information. ATM location information
may include enhanced details, such as:
• Phone numbers
• Airport locations
• Location descriptions
• Hours of operation
• Landmarks
• ATM types
• Handicap accessibility information
Benefits
The MasterCard ATM Network provides numerous benefits to cardholders,
acquirers, and issuers.
• The MasterCard ATM Network provides cardholders with:
− Worldwide access to cash 24 hours a day, seven days a week
− No need to carry large sums of cash
− Favorable currency conversion exchange rate
• Acquirers benefit from the MasterCard ATM Network because the network
provides:
− Interchange income each time a MasterCard or Cirrus cardholder uses
an ATM owned by that acquirer that displays the MasterCard and Cirrus
logos
− Competitive advantage by accepting MasterCard, Maestro, and Cirrus
cards having worldwide recognition and acceptance
− More transactions from more cardholders, lowering the cost per
transaction
• Issuers benefit from the MasterCard ATM Network because the network
provides:
− Competitive advantage by offering MasterCard, Maestro, and Cirrus
cards having worldwide recognition and acceptance
− Fee revenue opportunities

Supported Transactions
The MasterCard ATM Network supports a variety of transactions, including:
• Cash withdrawal from debit accounts
• Cash disbursement from credit accounts
• Account balance inquiry from debit accounts
• Available balance inquiry from credit accounts
• Merchandise purchase from debit accounts for items, such as postage
stamps and other items approved by MasterCard.
Acquirers must successfully complete testing for ATM merchandise
transaction before submitting merchandise purchase transactions to
MasterCard.
Interfaces to the MasterCard ATM Network

MasterCard issuers can choose either of the following options to receive
authorization requests for ATM transactions:
• A direct interface to the MasterCard ATM Network
• An interface via the Banknet network to the MasterCard ATM Network
Direct Interface
Issuers that choose to interface directly with the MasterCard ATM Network
receive ATM transactions via a Financial Transaction Request/0200 message.
For a description of the 0200 messages, see the MDS Online Specifications and
the Cirrus Worldwide Operating Rules.
Interface via the Banknet Network

If the issuer chooses to receive ATM transactions via the Banknet network, the
issuer receives ATM transactions in an Authorization Request/0100 message.
Choosing to receive ATM transactions via the Banknet network in

Authorization Request/0100 messages gives issuers the following additional
options:
• MasterCard validation of the PIN
• Application of MasterCard Stand-In processing when the issuer is
unavailable (only if MasterCard also validates the PIN)

PIN Validation
Issuers can choose to have MasterCard validate the PINs or to validate the PINs
themselves.
IF… THEN…
MasterCard validates the PIN MasterCard performs this service before forwarding the
Authorization Request/0100 message to the issuer.
The issuer validates the PIN MasterCard forwards the PIN to the issuer with the
Authorization Request/0100 message.
Issuers that validate their own PINs must send to MasterCard the encryption
key to translate encrypted PINs in the online request message.
Issuers that choose to have MasterCard validate PINs for ATM transactions
must complete the PIN Processing Profile form and must provide PIN
verification keys by completing the Hard Copy Key Exchange form.
Stand-In Processing
Issuers can choose whether to have Stand-In processing process online request
ATM transactions when they are not available. Issuers may choose to have
MasterCard validate a PIN if a PIN is present in an online request message
when the issuer is unavailable.
IF the issuer requests that… THEN MasterCard…

MasterCard perform Stand-In processing and Processes the online request message
PIN validation and validates the PIN.
MasterCard not perform PIN validation during Returns a response of “decline” when
Stand-In processing the issuer is unavailable.
See chapter 6 for more information about Stand-In processing tests.

For more information about ATM participation, see the Security Rules and
Procedures.

MasterCard SecureCode
MasterCard® SecureCode™ builds upon the infrastructure requirements for
channel encryption with the additional benefit of cardholder authentication.
When used in conjunction with components of the MasterCard payment
infrastructure, this program provides a mechanism for online merchants to
potentially receive an enhanced payment guarantee similar to what retailers
(non-Internet) receive with qualifying physical point-of-sale transactions.
Universal Cardholder Authentication Field

The Universal Cardholder Authentication Field (UCAF) is a standard, globally
interoperable method of collecting cardholder authentication data at the point
of interaction.
Within the MasterCard authorization networks, UCAF is a universal,

multipurpose data transport infrastructure that is used to communicate
authentication information between cardholders, merchants, issuers, and
acquirers. It is a variable length (maximum 32 characters) field with a flexible
data structure that can be tailored to support the needs of issuer security and
authentication approaches.
SecureCode Authentication Platforms

MasterCard SecureCode offers a flexible and robust solution for cardholder
authentication. Recognizing that one size does not fit all, MasterCard places a
premium on flexibility, enabling issuers to choose from a broad array of
security solutions for authenticating their cardholders, which includes both
password and smart card-based approaches.
Based on the MasterCard implementation of the 3-D Secure protocol issuers

may use issuer-assigned or cardholder-selected passwords to authenticate their
cardholders. The Chip Authentication Program (CAP), also based on the 3-D
Secure protocol, provides a seamless integration of both EMV and 3-D Secure
technologies that result in stronger authentication than traditional static
password solutions.
Licensing SecureCode Specifications

The design specifications associated with SecureCode are based on MasterCard
intellectual property. MasterCard licenses the specification to technology
vendors and members to integrate into their current authentication security
solutions and platforms.

Technology vendors that want to integrate SecureCode functionality into

current or future products first must establish licensing agreements with
MasterCard.
Accountholder Authentication Value

The Accountholder Authentication Value (AAV) is a MasterCard®
SecureCode™ -specific implementation of UCAF related to issuer authentication
platforms that incorporate the Secure Payment Application (SPA) algorithm.
SPA is a MasterCard security method designed to authenticate cardholders
when they pay online.
AAV is generated by the issuer and presented to the merchant for placement in
the authorization request upon successful authentication of the cardholder.
UCAF is used to transmit the AAV from the merchant to the issuer for
authentication purposes during the authorization process.
Issuers that want to use AAV verification may implement the following AAV
verification services:
• MasterCard SecureCode AAV Verification
• MasterCard SecureCode Dynamic AAV Verification in Stand-In Processing
To implement the MasterCard SecureCode AAV Verification service, complete

the Key Validation Service Specification Form and follow the procedures in the
On-behalf Key Management (OBKM) Document Set.
MasterCard SecureCode AAV Verification Service

MasterCard offers AAV verification service on every authorization transaction
that contains UCAF data—regardless of whether the issuer’s host system is
available or unavailable to respond to the Authorization Request/0100
message.
When the issuer’s host system is available and after the verification process is
complete, MasterCard includes in the Authorization Request/0100 message
DE 48, subelement 71 (On-behalf Services) containing:
• Subfield 1 (On-behalf [OB] Service) with the value 05
• Subfield 2 (On-behalf [OB] Result 1) with the value I, U, or V
When the issuer’s host system is unavailable, Stand-In processing forwards to

the issuer the Authorization Advice/0120 message where DE 48, subelement 71
contains:
• Subfield 1 (On-behalf [OB] Service) with the value 05

• Subfield 2 (On-behalf [OB] Result 1) with the value I, U, or V
For more information about using the SecureCode AAV Verification service,
MasterCard SecureCode AAV Verification service is an optional on-behalf

service.

Processing
MasterCard offers AAV verification service for authorization transactions
processed by Stand-In processing that contain AAV data in DE 48, subelement
43 (Universal Cardholder Authentication Field [UCAF]) of the Authorization
Request/0100 message.
Issuers that want to participate in the MasterCard SecureCode Dynamic AAV

verification in Stand-In processing will provide the confidential key data that
MasterCard will use in the verification process. MasterCard applies an
algorithm to the issuer’s confidential key data, the AAV, and the issuer’s PAN
to determine the validity of the AAV data provided by the acquirer.
MasterCard uses DE 48, subelement 71 (On-behalf Services) in the

Authorization Advice/0120 message to communicate the results of the AAV
verification test to the issuer:
• Subfield 1 (On-behalf [OB] Service) contains value 06 (MasterCard
SecureCode Dynamic AAV Verification Service).
• Subfield 2 (On-behalf [OB] Result 1) contains one of the following values:
− I (Invalid)
− U (Unable to process)
− V (Valid)
• Subfield 3 (On-behalf [OB] Result 2) is always blank (space).
MasterCard SecureCode Dynamic AAV Verification in Stand-In Processing is an

optional service.

For more information regarding SecureCode, including detailed transaction
flows and participation requirements, see the SecureCode Member Enrollment
and Implementation Guide.
For additional information about the data elements required to support the use
of UCAF, see the Customer Interface Specification manual.

Comparison of Security Protocols

The following table lists the features provided by each security protocol
described in this chapter.
Type of Security Protocol

Feature None Channel Encryption SecureCode (using UCAF)
Protection of Unprotected Protected Protected
information over
the Internet
Protection of Payment information Payment information Payment information
information at unprotected. (Merchant unprotected. (Merchant unprotected unless used in
the merchant sees all cardholder sees all cardholder conjunction with pseudo–
site information.) information.) account number solution.
(Merchant sees all cardholder
information. Merchant
should encrypt all sensitive
data behind a firewall, as
specified in MasterCard Best
Practices.)
Authentication No authentication No authentication No authentication
of Acquirer
Authentication No authentication No authentication No authentication
of Merchant for
payment
Authentication No authentication No authentication Reliable authentication
of Cardholder provided by the MasterCard
for payment issuer

MasterCard-acquired Visa Transactions

The MasterCard Authorization System allows acquirers to process Visa
transactions via the connection to the MasterCard Banknet network. It
supports both transactions that qualify for the Custom Payment Service (CPS)
and transactions that do not.
Issuer Options
Issuers may choose to accept Visa activity using their connection to the
Banknet network. This connection is called “peer-to-peer.”
If the issuer is not peer-to-peer, MasterCard routes authorization requests to

the Visa network.
CPS Transactions
For Visa transactions that indicate CPS, MasterCard routes the authorization
request to the Visa network.
MasterCard-acquired CPS transactions have particular requirements for the

Authorization Request/0100 and the Authorization Request Response/0110
messages.
For the data requirements as they apply to the authorization message formats,
If the Visa network is unavailable to authorize a CPS transaction through the
MasterCard gateway, MasterCard processes the authorization request using the
MasterCard Stand-In parameters for Visa activity.
Indicators
MasterCard provides support of various Visa programs by the use of specific
indicators in Authorization Request/0100 messages.
Authorization Characteristics Indicator

MasterCard members that acquire Visa transactions can receive valid Visa
response values for the Authorization Characteristics Indicator (ACI).

MasterCard forwards the ACI value provided by Visa in DE 48, subelement 90

(Visa Custom Payment Service [CPS] Request) of Authorization Request
Mail/Telephone or Electronic Commerce Indicator

Visa allows acquirers to participate in its interregional interchange
reimbursement fee (IRF) program in cases where the merchant and acquirer
met and complied with SET requirements even though the cardholder did not.
MasterCard acquirers forwarding Visa electronic commerce transactions must

have the following values in Authorization Request/0100 messages.
Data Element Value Description

DE 61, subfield 10 6 Electronic Commerce
DE 48, subelement 40, Variable binary To indicate that the merchant is SET-
subfield 01 value1–16 positions compliant
DE 48, subelement 40, Not present To indicate that the cardholder is not
subfield 02 SET-compliant
DE 48, subelement 42, 91 To indicate no security protocol,
subfield 01, position 1-2 cardholder certificate not used
Market-specific Data Identifier (Visa-only)

Apr
2006
The Visa Market-Specific Data Identifier is a value used in Visa transactions to
show the market-specific data identifier. Acquirers provide the appropriate
Visa market-specific data identifier.
Prestigious Properties Indicator

The Prestigious Properties Indicator is a value used in Visa transactions to
specify participants in the Visa Prestigious Lodging program. Acquirers
provide the appropriate Visa Prestigious properties indicator.
Relationship Participant Indicator

The Relationship Participant Indicator is a value used in Visa transactions to
show that merchants have had long-term relationships with a cardholder from
whom they regularly collect recurring payments.
MasterCard acquirers forwarding Visa transactions with a Relationship

Participant Indicator must have value R in DE 48, subelement 86 (Visa
Relationship Participant Indicator) of Authorization Request/0100 messages.

Transponder Indicator
Cardholders may use transponders, which use radio frequency signals, to
exchange identification information with cardholder-activated terminals or
other point-of-interaction (POI) devices to initiate a transaction. These non–
face-to-face transactions occur when the card is not present (when the
transponder is the device activating the transaction).
MasterCard members acquiring Visa transactions with a transponder must have

value 7 in DE 61, subfield 10 in Authorization Request/0100 messages. This
value indicates that a transponder was used to exchange authorization
information.
U.S. Deferred Billing Indicator

The U.S. Deferred Billing Indicator is a value used by U.S. acquirers in Visa
transactions to notify U.S. issuers that the transaction is being submitted to bill
the cardholder for merchandise that was received within the past 90 days.
MasterCard acquirers forwarding Visa transactions with the U.S. Deferred

Billing Indicator must have value D in DE 48, subelement 78 (Visa U.S.
Deferred Billing Indicator) in Authorization Request/0100 messages.
U.S. Existing Debt Indicator

When MasterCard acquirers in the U.S. region forward to Visa through the
Banknet network transactions that pay an existing debt, they must indicate
such in Authorization Request/0100 messages.
Acquirers must include value 9 in DE 48, subelement 85 (Visa U.S. Existing

Debt Indicator) to indicate that the transaction is a payment for an existing
debt.
Retail Key Entry Program

MasterCard acquirers forwarding Visa Retail Key Entry transactions must have
the following values in Authorization Request/0100 messages.

DE 22 (Point-of-Service [POS] Entry 01 Indicates that the card number was
Mode), subfield 1 (POS Terminal keyed into the POS device
PAN Entry Mode)
DE 61 (Point-of-Service [POS] Data), 0 Indicates that the cardholder is
subfield 4 (POS Cardholder present
Presence)


DE 61, subfield 5 (POS Card 0 Indicates that the card is present
Presence)
DE 61, subfield 11 (POS Card Data 2, 5, 7, or 8 Indicates that the POS terminal can
Terminal Input Capability) transmit magnetic stripe data
Note For a transaction to be forwarded automatically to the Visa gateway, acquirers

must identify transactions as CPS transactions. Meeting Retail Key Entry criteria
will not force a transaction to the Visa gateway if the issuer is a MasterCard
peer-to-peer participant.
Secure Electronic Commerce Verification Service

The MasterCard Authorization System supports the Visa secure electronic
commerce verification service.
MasterCard will forward to the Visa gateway Authorization Request/0100

messages including secure electronic commerce data that also contain a Visa
account number in DE 2 (Primary Account Number [PAN]).
To participate, acquirers must provide all electronic commerce data elements,

including the data elements for the secure electronic commerce verification, in
Authorization Request/0100 messages.
Acquirers must use DE 48, subelement 43 (UCAF), and subelement 44

(Electronic Commerce Transaction Identifier) to send the secure electronic
commerce data in Authorization Request/0100 messages. If Visa responds with
a Cardholder Authentication Verification Value (CAVV) Results Code,
MasterCard will forward the code values to the acquirer in DE 48, subelement
45 (Electronic Commerce Transaction Response Code) of the Authorization
Visa Commercial Card Inquiry

Acquirers can inquire on Visa Commercial Cards using specific values in
DE 48, subelement 94 (Visa Commercial Card inquiry request and response
indicator). These values are described in the Customer Interface Specification
manual.

Visa CVV2
MasterCard supports processing of Visa CVV2 transactions in the same
subelements that support MasterCard CVC 2 data.
Acquirers must provide one of the following Visa-defined scenarios in DE 48,

subelement 92 (Visa CVV2 Data) in the Authorization Request/0100 message:
• Merchant did not provide CVV2 or it was deliberately bypassed

• CVV2 value present
• CVV2 value is on card, but illegal
• Cardholder states no CVV2 is on the card
MasterCard forwards the following Visa-defined responses in DE 48,

subelement 87 (Visa CVV2 Response) in the Authorization Request
Response/0110 message:
• CVV2 match
• CVV2 no match
• Not processed
• CVV2 is on the card, but the merchant has indicated that CVV2 is not
present
• Issuer is not Visa-certified for CVV2, has not provided Visa encryption
keys, or both
Visa Fleet Card

MasterCard supports processing of Visa Fleet Card transactions through the
Banknet network in DE 48, subelement 93 (Visa Fleet Card ID Request Data)
indicator. For more detailed information, see the Customer Interface

Appendix A includes diagrams that show the routing of these transactions.

Member-defined Data
Member-defined Data
MasterCard allows members to exchange as many as 99 bytes of member-
defined data to and from another member in authorization messages.
Members may use member-defined data to transmit information such as:

• Loyalty program information
• Promotional information
• Details about a purchase
• Any other business-related data
Structure of Member-defined Data

Acquirers may provide as many as 99 bytes of member-defined data in DE 124
of the Authorization Request/0100 message.
Issuers may provide as many as 99 bytes of member-defined data in DE 124 of

the Authorization Request Response/0110 message. Issuers will receive DE
124 in Authorization Advice/0120 messages if DE 124 was present in the
Authorization Request/0100 sent by the acquirer and the transaction was
processed by Stand-In processing, Limit-1, or X-Code.
The Authorization System will not edit the content of DE 124 as long as it is
alphanumeric/special character data and is only as many as 99 bytes in length.
The Authorization System will limit the length of the member-defined data in
DE 124 to 99 bytes in Authorization Request/0100 messages and 99 bytes in
Authorization Request Response/0110 messages.
For additional details on providing member-defined data in DE 124, see the

Customer Interface Specification manual

Merchant Advice Codes

MasterCard supports the use of Merchant Advice codes for issuers to
communicate clearly with merchants:
• The reason for approving or declining a transaction

• The actions merchants can take to continue to serve their customers
Issuers can use Merchant Advice codes to provide specific direction to

acquirers.
DE 48, Subelement 84 Values

Issuers can use the following values to indicate Merchant Advice codes in
Authorization Request Response/0110 messages, DE 48, subelement 84.
Value Description
01 New Account Information Available
02 Cannot Approve at This Time
03 Do Not Try Again
Apr
21 Recurring Payment Cancellation Service 2006
Common DE 39 Values
The following table lists the most common values for DE 39 that issuers send
in conjunction with the Merchant Advice codes.
Value Description
00 Approved
05 Do not honor
14 Invalid card number
51 Insufficient funds/over credit limit
54 Expired card

DE 48, Subelement 84 with DE 39

In conjunction with existing values in DE 39 in Authorization Request
Response/0110 messages, issuers should use the Merchant Advice codes
provided in DE 48, subelement 84 to communicate which actions merchants
can take to best support cardholders.
The following table provides examples of how issuers and acquirers should
use the combination of DE 48, subelement 84 and DE 39.
DE 48, Merchant Advice Examples of Suggested

DE 39 subelement 84 Description Reasons Merchant Action
00 01 New account • Expired card Obtain new
05 information • Account upgrade account
14 available information before
51 • Portfolio sale next billing cycle
54 • Conversion
51 02 Cannot Approve at • Over credit limit Recycle
This Time • Insufficient transaction 72
funds hours later
05 03 Do not try again • Account closed Obtain another

14 • Fraudulent type of payment
51 from customer
54
Apr
05 21 Recurring Payment Cardholder canceled Do not submit 2006
Cancellation agreement
Service

Partial Approvals
Partial Approvals
Apr
The partial approval enables issuers to approve a portion of a requested 2006
transaction amount, instead of declining the entire authorization request when
the transaction amount exceeds the amount of funds available on a prepaid
card.
When the acquirer transmits an indicator in the authorization request that the
merchant terminal supports partial approvals, the issuer has the option to
respond with the partial approval amount and partial approval response code.
The cardholder can then choose to use a supplemental payment method (split
tender) to pay the balance and complete the purchase. The partial approval
can reduce checkout times and enable cardholders to use a prepaid card’s
entire balance, even when the available balance is unknown and does not
cover the entire purchase.
Upon receipt of a partial approval, acquirers often send a balance due message
to the integrated terminal. This message indicates the difference between the
original purchase amount and the partial amount approved by the issuer. By
displaying the remaining balance due amount, the cashier can quickly and
accurately prompt the customer to complete the split-tender purchase.
The Stand-In processing and X-Code processing do not provide partial
approval responses to authorization requests because these systems do not
maintain prepaid card balances.


Payment Transaction Authorization

Person-to-person transactions allow the movement of funds between two
parties, a payer (sender) and a payee (recipient). These transactions are often
non–face-to-face payments used to complete electronic commerce transactions,
such as purchases made at auction Web sites or online money transfers
unrelated to a purchase of goods or services.
Person-to-Person Transactions
Person-to-person transactions may be initiated by consumer, business, or
corporate cardholders. Person-to-person transactions usually require:
• A funding transaction initiated by the payer

• A payment transaction initiated by the payee
Funding Transaction
In the funding transaction, the payer initiates the transfer of funds to a
payment transaction provider through a Web site maintained by the payment
transaction provider. The payer usually indicates the name and e-mail address
of the payee to receive the payment amount.
The following diagram illustrates one type of funding transaction successfully

using a MasterCard card.
Figure 9.28—Funding Transactions
1 Payment 2 3
Transaction
Provider
Cardholder 6 Web Site 5 4
Payer Acquirer Issuer
Stage Description
1. The payer authorizes the payment transaction provider to transfer funds to a
designated payee, entering MasterCard account information via the payment
transaction provider Web site.
2. The payment transaction provider Web site forwards authorization information
for the payment amount to an acquirer.
3. The acquirer transmits an Authorization Request/0100 message to the payer’s
issuer.

Stage Description
4. The payer’s issuer responds with an Authorization Request Response/0110
5. The acquirer forwards authorization response information to the payment
transaction provider Web site.
6. The payment transaction provider Web site confirms that the person-to-person
transaction has been initiated, usually providing a confirmation number and
transaction details.
Funding transactions occur independently of subsequent Payment

Transactions. For example, funding transactions initiated by the payer can use
different methods of payment than the Payment Transaction initiated by the
payee.
Payment Transaction
The payment transaction is used to transfer funds to a payee (the recipient of
the payment transaction).
The following diagram illustrates how the payment transaction pays the
cardholder payee when using Authorization System enhancements.
Figure 9.29—Payment Transaction Authorizations
1 Payment 3 4
2 Transaction
Cardholder
Provider 6 5
Payee 7 Web Site
Acquirer Issuer
Stage Description
1. After the payer has requested a transfer of funds using his or her payment
account to the payee, the MasterCard payment transaction provider sends an
e-mail message to the payee to advise that funds are currently payable to the
payee.
2. The payee enters MasterCard account information via the payment transaction
provider Web site.
3. The payment transaction provider Web site forwards authorization information
to an acquirer.
4. The acquirer transmits an Authorization Request (Payment Transaction)/0100
message to the payee’s issuer.

Stage Description
5. The payee’s issuer responds with an Authorization Request Response/0110
6. The acquirer forwards authorization information to the payment transaction
provider Web site.
7. The payment transaction provider Web site confirms that funds have been
transferred to the payee’s MasterCard account, usually providing a
confirmation number and transaction details.
Payment Transaction Blocking

Issuers can block Payment Transaction authorizations at the account number
range level (as many as 11 digits).
Requirements
MasterCard must approve all requests to block Payment Transaction
authorizations.
Issuers requesting to block Payment Transactions must follow these steps.
Step Action
1. Document the legal restrictions that would prevent their participation in
Payment Transactions.
2. Complete and submit the Payment Transaction Blocking Form.
For account ranges that issuers have arranged to have blocked, the
Authorization System rejects Payment Transactions containing any account
number within the account range listed in the Payment Transaction Blocked
BIN file.
Optional Acquirer Use of the Payment Transaction Blocked BIN File

Registered acquirers also have the option to receive the Payment Transaction
Blocked BIN file and may deny Payment Transactions to cardholders with
accounts in the blocked account ranges.
When acquirers submit Payment Transaction authorizations to issuers that

MasterCard approved for Payment Transaction account range blocking, the
acquirer MIP will reject the authorization. The MIP returns a response code of
“Transaction not permitted to issuer/cardholder” (DE 39 = 57) to the acquirer.

Members can choose to use Stand-In processing for Payment Transactions.
Member cannot use Limit-1 processing or X-Code processing for Payment
Transactions.
Note MasterCard does not encourage members to use Stand-In processing for
Payment Transaction authorizations.
Stand-In Processing
If members choose to use Stand-In processing for Payment Transaction
authorizations, MasterCard recommends that members use discretion for these
transactions.
Parameters
Issuers may specify Stand-In processing parameters for Payment Transactions,

including TCC global parameters and expanded parameter combinations with a
TCC of P. The minimum/default value for Payment Transaction limits in Stand-
In processing is USD 0.
Note Stand-In processing declines Payment Transactions for issuers that do not
specify a higher Stand-In processing limit for Payment Transactions. To set
higher Stand-In processing limits, use the Stand-In Processing Worksheet to
submit your requested limits.
Velocity Testing
Stand-In processing does not accumulate payment transaction activity for

velocity testing. Stand-In processing does not add Payment Transactions to the
cumulative number of approved transactions allowed or to the cumulative
approved amounts allowed by the issuer.

Limit-1 Processing
Limit-1 processing cannot be established for Payment Transactions.
X-Code Processing
Acquirer MIP X-Code processing will not approve Payment Transactions.
When X-Code processing processes the authorization, it will generate an

authorization response of “refer to card issuer” (DE 39 = 01) for the Payment
Transaction. During acquirer host X-Code processing, the acquirer must issue
a “refer to card issuer” response to the merchant for Payment Transaction
authorizations.

PIN Processing
PIN Processing
The Authorization System supports processing of MasterCard purchase
transactions that contain a personal identification number (PIN). Cardholders
may enter a PIN at the point of interaction as an alternative to signing a sales
slip.
Acquirer Requirements
Acquirers that choose to support PIN authorization requests must use their
existing Banknet MIP Authorization System interface connections with no
changes in authorization message routing. Acquirers must comply with the
following steps before processing MasterCard purchase transactions that
contain a PIN in Authorization/01xx messages.
Step Action
1. Determine whether to support static or dynamic PEK exchanges.
The Authorization System and members’ systems use PEKs to encrypt or
decrypt PINs. PEKs provide a secure means of passing PIN information in
Authorization/01xx messages. Acquirers must determine whether they will
support either static or dynamic PEK exchanges. For increased security,
MasterCard strongly recommends using dynamic PEK exchanges.
2. Be compliant with MasterCard Magnetic Stripe Compliance Program.

Because PIN verification requires valid track data, only acquirers that comply
with MasterCard Magnetic Stripe Compliance Program to provide complete
and unaltered track data in their Authorization Request/0100 messages can
support PIN processing. See the magnetic stripe compliance requirements in
this chapter and in the Customer Interface Specification manual.
3. Ensure that applicable data elements are present in Authorization
Request/0100 messages.
For PIN authorization requests, Authorization Request/0100 messages must
contain the following data elements:
• DE 22 (Point-of-Service [POS] Entry Mode)
• DE 26 (POS PIN Capture Code)
• DE 45 (Track 1 Data) or DE 35 (Track 2 Data)
• For CAT/Level 1 transactions, DE 61 (Point-of-Service [POS] Data)
• DE 52 (PIN Data)
4. Ensure the ability to process applicable data elements in Authorization Request
For detailed data element descriptions, see the Customer Interface Specification
manual.

PIN Processing
Issuer Requirements
Issuers must comply with the following steps before verifying the PINs in
MasterCard purchase transactions that contain a PIN in Authorization
Step Action
1. Determine the method for receiving purchase transactions that contain a PIN
from the following options:
• Through a Banknet network Authorization Request/0100 message
interface—this method is the default method for issuers that currently
receive their MasterCard ATM cash disbursement and ATM balance inquiry
activity using this interface. Static PEKs that are already active and
operational at the MDS will be used for each of the issuer’s bank
identification number (BIN)/card ranges. Issuers may choose to support
dynamic PEK exchanges instead.
• Through an MDS Financial Transaction Request/0200 message interface—
this method is the default method for issuers that currently receive their
MasterCard debit activity, ATM activity, or both using this interface. These
transactions are identified as “preauthorization requests” with value 4 in
position 7 of DE 61 because they must be cleared through the MasterCard
clearing facility (the Global Clearing Management System) with all other
purchase activity. PEKs that are already active and operational at the MDS
will be used for each of the issuer’s BIN/card ranges.
Note: Members inform MasterCard which method they select by completing
and returning to MasterCard the PIN Processing Profile Form.
2. Determine whether to support dynamic PEK exchanges.
For dynamic PEK exchanges, the Authorization System and the issuer must
establish a new single Key Encryption Key (KEK) for all BINs that the issuer
will process. This new KEK must be associated with the issuer’s Member
Group ID that the issuer uses for sign-on, sign-off, and store-and-forward
(SAF) sessions for the associated BINs.
The issuer must complete the Member-Initiated KEK Part Exchange Form.
For increased security, MasterCard strongly recommends using dynamic PEKs.
3. Ensure the ability to process applicable data elements in Authorization

4. Ensure the ability to process applicable data elements in Authorization
Advice/0120 messages.
5. Ensure the ability to process applicable data elements in Acquirer Reversal
Advice/0420 messages.

PIN Processing
Note If an issuer does not comply with the requirements for verifying PIN data, the
Authorization System will forward all authorization requests for purchase
transactions that contain a PIN to the issuer with PIN data containing zeroes.
The issuer can then make the authorization decision based on other data within
the authorization message.
For detailed data element descriptions, see the Customer Interface Specification
manual.
Stand-In, Limit-1, and Acquirer MIP X-Code Processing

Issuers may choose to have the Authorization System to verify PIN data on
their behalf. If the Authorization System performs PIN verification, it can
perform Stand-In, Limit-1, and X-Code processing using the existing
authorization-qualifying criteria (issuer or MasterCard), when applicable.
If the Authorization System does not verify the PIN data and the issuer is
unavailable or unable to process the Authorization Request/0100 message, the
Authorization System responds to the acquirer with an Authorization Request
Response/0110 message indicating the issuer could not process the
Support for Both Acquiring and Issuing Processing

Members that support both acquiring and issuing authorization processing may
use the same PEK for all purchase transactions that contain a PIN. To use the
same PEK, the member must use the same Customer ID as follows:
• As the Member Group ID for establishing the static PEK or the KEK.
• In DE 32 or DE 33 in all acquired transactions.
• In Member Group ID (DE 2) and DE 33 of the Network Management
Request (PEK Exchange—On Demand)/0800 message.
• In DE 2 of the Network Management Request/0800 group sign-in message.

PIN Processing
Authorization System Security Requirements

Within the Authorization System environment, security includes ensuring
message security and integrity as well as protection against cardholder PIN
disclosure. MasterCard uses secure PIN encryption in the Authorization System
to protect all PINs.
Encryption
The approach that the Authorization System uses for network security
management is PIN encryption using data encryption standard (DES).
Members may choose to use either single DES or triple DES. The acquirer
must send the entered PIN to the MDS, encrypted in an ANSI block format
(see Figure 9.30).
To encrypt a PIN, use the following requirements:

• The first digit of the first block contains the control character “0,” followed
by a number representing the length of the PIN, and then the PIN itself.
The remaining digits of the block are filled with the pad character “F.”
• The first four characters of the second block contain “0000,” followed by
the 12 right-most digits of the PAN, excluding the check digit.
• In formatting an ANSI PIN block, the acquirer makes the two 16-digit
blocks “Exclusive-OR” (XOR).
• After creation, the PIN block goes through the DES algorithm with the 16-
digit key (PEK), producing the encrypted PIN block, which is sent to the
MDS. If MasterCard does not perform PIN verification, the issuer receives
the encrypted PIN block for PIN verification.

PIN Processing
Figure 9.30—ANSI PIN Block Format
Entered PIN: "1234"

PAD: "F"
PEK: "935A342A1122B33B"
Account #: "5415973333334456"
Partial PAN: "597333333445"
PIN Block Calculation
Code 1 PIN Length
PIN pad chair
0 4 1234 FFFFFFFFFF ANSI PIN Block
XOR 04126D8CCCCCCBBAA
0000 597333333445
Ctrl Partial PAN
Encryption
PIN Block PEK
04126D8CCCCCCBBAA 935A342A1122B33B
DES Algorithm Encode
Encrypted PIN
Block
C4E1E07AEFCC16B5
Decryption
Encrypted PIN Block PEK
C4E1E07AEFCC16B5 935A342A1122B33B
DES Algorithm Encode
PIN Block 04126D8CCCCCCBBAA

PIN Processing
Security
Security using DES depends on the secrecy of the keys used, and therefore on
the management of the keys (see Figure 9.31). The Authorization System
implements the “zone” approach rather than the “end-to-end” approach to key
management.
The following table describes the difference between the two types of key
management.
Zone End-to-End
Encryption of data between zones using a Encryption of data between its origination
PEK unique to the Authorization point and final destination using a key
System/member pair. Data that must be unique to the end-to-end pair. Data is
transmitted through several zones is encrypted at the source and not decrypted
decrypted and re-encrypted at each entity. until reaching the final destination. Each
For dynamic PEK exchanges, the point of origin must maintain a unique key
Authorization System/member pair must for each final destination to which it
also maintain a unique KEK. transmits, and each final destination must
maintain a unique key for each point of
entry from which it can receive.
MasterCard chose the zone approach instead of the end-to-end approach for
the following reasons:
• Key exchange is required only between issuers and acquirers connected to
• The approach does not require loading keys to the terminal for every card
that processes MasterCard purchase transactions containing a PIN.
For MasterCard purchase transactions that contain a PIN, all PINs must be
encrypted at the point of entry (the terminal). The PIN remains encrypted
until the issuer receives it for verification. It is translated from one zone’s PEK
to another zone’s PEK as it is passed from one member to another through the
Authorization System. When the member passes the PIN to the Authorization
System, the Authorization System translates it using the ANSI PIN block format.
The ANSI PIN block is the only format that the Authorization System supports.

PIN Processing
Figure 9.31—Zone Key Management
HSM that
stores Point of
PEK 1 Interaction
HSM that
stores Point of
Interaction PEK 1 used Zone 1
PEK 1
HSM that
stores
PEK 1 and 2
Acquirer
Zone 2
PEK 2 used
HSM that MasterCard

stores Authorization
PEK 2 and 3 System
PEK 3 used Zone 3
HSM that
stores
PEK 3
Issuer
Establishing PEKs
The Authorization System shares a PEK with each member during PIN
transaction processing. The Authorization System and member use ANSI PIN
block formatting for encryption and decryption.
The member may use the same or a separate PEK for issuing and acquiring
transactions.
PEK Storage
Members are responsible for safely storing their PEKs by encrypting them
under a proprietary Master File Key using hardware security procedures.
Members must store PEKs within a Tamper Resistant Security Module (TRSM).

PIN Processing
PEK Implementation
When new PEKs are created, the member has five minutes to implement the
new PEK. During that period, the Authorization System attempts decryption
using the previous PEK in the event that the new PEK is in error.
PEK Exchange Methods
The Authorization System and members exchange PEKs in two manners:

statically and dynamically. Acquirers and issuers connected to the Banknet
network that are processing MasterCard purchase transactions that contain a
PIN may use either static or dynamic key encryption to translate the PIN in DE
52.
Note For increased security, MasterCard strongly recommends using dynamic PEKs.
Static PEK
The Authorization System and the member do not exchange the static PEK
online; they create it through a manual (offline) process. Members must use
the Static PEK Component Form to create the static PEK with MasterCard. The
MasterCard and Member Key Officers 1 must adhere to the strict procedure
described on the form to establish the static PEK.
Dynamic PEK
The Authorization System randomly generates dynamic PEKs for each member.
Only the Authorization System can send a new dynamic PEK; however, a
member may request a new PEK at any time.
The Authorization System will create a new dynamic PEK automatically online
every 24 hours or every 2,500 transactions, whichever occurs first. It will also
create a new dynamic PEK after five consecutive Sanity Check errors.
1 MasterCard recommends that Member Key Officers not have extensive technical
backgrounds.

PIN Processing
Establishing KEKs
The Authorization System sends new dynamic PEKs online using Network
Management (08xx) messages. The member must establish the Key Exchange
Key (KEK) with the Authorization System before exchanging dynamic PEKs.
The Authorization System and the member use a shared KEK to encrypt and
decrypt each PEK. The Authorization System and each member are jointly
responsible for generating the unique KEKs used to exchange and encrypt
PEKs.
The Authorization System uses the following process to create and

communicate dynamic PEKs.
Stage Description
1. The Authorization System uses the KEK to encrypt the new PEK and check
value.
2. The Authorization System sends the new PEK to the issuer in an online
Network Management Request (PEK Exchange)/0800 message.
3. The member validates the check value and loads the new PEK.
4. The member uses the check values to ensure that the Authorization System
generated the new PEK from the same unique KEK established between the
member and the Authorization System.
Sanity Check Errors
The Authorization System changes the PEK after five consecutive Sanity Check
errors. Sanity Check errors are those that the PSD detects as possible PEK
corruption by verifying that the cleartext PIN block is in the expected format.
Members must use the Member-Initiated KEK Part Exchange Form to create the
KEK with MasterCard. The MasterCard and Member Key Officers must adhere
to strict procedure described on the form to establish the KEK.
Master File Key

MasterCard recommends that each member establish a Master File Key (MFK)
to encrypt PEKs and KEKs for secure storage on a database. MFKs work in a
similar manner to PEKs and KEKs in that they are comprised of key parts.
Each member is responsible to generate and securely maintain its proprietary
MFK.

PIN Processing
PIN Verification
MasterCard provides a PIN verification service for all purchase transactions that
contain a PIN.
The PIN verification service is an optional service.
Note Track data must be present for MasterCard to perform PIN validation because
the Authorization System must have a means to obtain offset data from the
issuer.
If the issuer chooses to have the Authorization System perform PIN

verification, it must provide PIN processing parameters to MasterCard. These
parameters determine placement of PIN verification track data.
If the issuer currently uses the PIN Verification Service that the MDS provides
for ATM cash disbursement and balance inquiries, the issuer may choose to
have the Authorization System perform PIN verification on all PIN-based
purchase activity using the same parameters.
PIN Verification in Stand-In Processing

MasterCard provides a PIN verification service for transactions processed by
Stand-In processing that contain unverified PIN data in Authorization
Issuers that want MasterCard to verify the PIN provided in DE 52 (Personal ID

Number [PIN] Data) on transactions processed by Stand-In processing must
provide PIN processing parameters to MasterCard.
WHEN the PIN data is… THEN Stand-In processing…

Valid Proceeds to the next appropriate Stand-In processing
test.
Invalid Sends a response of decline in the Authorization Request
MasterCard uses DE 48, subelement 80 (PIN Service Code) and DE 60 (Advice

Reason Code), subfield 2 (Advice Detail Code) in the Authorization
Advice/0120 message to communicate the results of the PIN verification test to
the issuer.

PIN Processing
THEN DE 48, subelement AND DE 60, subfield 2

WHEN… 80 contains… contains…
The PIN is valid PV (the Authorization Not applicable
System verified the PIN)
The PIN is invalid PI (the Authorization 0004 (Reject: Invalid PIN)
System was unable to
verify the PIN)
The Authorization System PI (the Authorization 0030 (Reject: Unable to
is unable to perform PIN System was unable to verify PIN data)
verification verify the PIN)
The PIN Verification in Stand-In processing is an optional service.
Members that want to use the PIN Verification in Stand-In Processing service
can request this service by completing the Key Validation Service Specification
Form and following the procedures in the On-behalf Key Management (OBKM)
Document Set.
PIN Key Exchange and Processing Forms

MasterCard strongly recommends that issuers use dynamic (online) key
encryption to process MasterCard transactions containing PIN data. However,
if an issuer chooses to use static (hard copy) key encryption for PIN-based
MasterCard credit card transactions, the issuer must complete one or both sets
of the following forms as applicable:
• For ATM transactions—Issuers connecting to the MDS through the Banknet
network to process ATM transactions in the Authorization Request/0100
message format must complete the PIN Processing Profile and the Hard
Copy Key Exchange forms, available in the Business Forms section of
MasterCard OnLine and at the end of this manual.
• For PIN-based purchase and other non-ATM transactions—Issuers connecting
to the MDS through the Banknet network to process MasterCard purchase
transactions and other non-ATM transactions in the Authorization
Request/0100 message format must complete the PIN Processing Profile
and the Static PIN Encryption Key (PEK) Component Form.

Portfolio Sales Support

MasterCard offers the following support for members when they buy or sell a
portfolio.
Service Available for

Full BIN Partial BIN
Service Transfer Transfer
Transfer of BINs from one member to another. After
MasterCard transfers the BIN, the Authorization System
processes all transactions within the BIN under the new
ICA.
Transfer of AMS account listings from one member to
another. After MasterCard transfers the listings, the new
ICA maintains the listings.
Full BIN Transfer

To transfer an entire BIN from one ICA number to another, contact the
Customer Operations Services team and request support for a portfolio
transfer.
You will need to provide the following information:
• Old ICA number

• New ICA number
• Time and date on which the transfer will be effective
• BIN that you are buying or selling
Automatic AMS Transfer

If you are requesting an automatic AMS transfer as part of the BIN transfer,
then complete section “e” of the Member Conversion Questionnaire. (The
Customer Operations Services team will provide the questionnaire.)
For examples of the automatic transfer of AMS accounts and for billing
information for that service, see the Account Management User Manual.
The following table shows the stages in the transfer of BINs and AMS
accounts.

Stage When it Occurs Description

1. Before the planned transfer date The member (new ICA number or old
ICA number) requests support for a
portfolio transfer.
2. At the time and date when the The Authorization System moves
transfer is effective authorization processing from the old
ICA to the new ICA.
3. On the transfer effective date, after MasterCard automatically transfers the
the authorization processing ownership of the AMS accounts from the
transfer old ICA to the new ICA.
4. On the evening of the transfer The Daily Account File Activity Report
effective date for the new ICA shows the account
listings under the new ICA.
Partial BIN Transfer

To transfer a part of a BIN from one member to another, notify the Customer
Operations Services team in writing. You will need to provide the following
information:
• Old ICA
• New ICA
• Time and date on which the transfer will be effective
• Which portion of the BIN requires the new routing

Transfer Process for a Partial BIN

The following table shows the stages in the partial transfer of a BIN.
Stage When it Occurs Description

1. Before the planned transfer The member (new ICA or old ICA) requests
date support for the transfer.
2. At the time and date when the • The Authorization System routes
transfer is effective authorization requests for the transferred
part of the BIN to the new endpoint.
• The Limit-1 and Stand-In parameters of
the new ICA number and BIN govern
processing for the transferred part of the
BIN.
• MasterCard bills all issuing authorization
charges to the new ICA number.
• The new ICA number can add accounts
within the BIN to AMS and to the
Account File.
Fees
The following fees apply to portfolio sales services.
Service Fee
Full BIN—Authorization Flat fee, billed to the requesting member.
Processing
Full BIN—AMS account transfer • Flat fee, billed at ICA/BIN level
• Per-account fee, billed at the account level for
each account transfer
Partial BIN—Authorization Flat fee per portfolio and BIN, billed to the
Processing requesting member
The members involved in the portfolio sale may decide which of them will
receive the charges for the Full BIN—AMS account transfer fees. MasterCard
can bill one member for both fees, or MasterCard can bill one member for the
flat fee and another member for the per-account fee.

Promotion Code
Promotion Code
The promotion code is an alphanumeric code that members can include in the
The promotion code service is an optional service.
Purpose of Using a Promotion Code

Issuers may decide to offer a promotion to merchants.
This promotion may require issuers to use different authorization criteria than
they do with most transactions. The promotion code allows the issuer to
recognize that this transaction uses the different criteria to determine
authorization responses for transactions that occur at the participating
merchants.
MasterCard may also specify other uses of the promotion code. When
MasterCard specifies these other uses, the Customer Interface Specification
manual provides details about them.
How the Promotion Code Service Works

The following table shows the process for participating members to use a
promotion code.
Stage Description
1. The merchant includes the promotion code when it sends transaction data to
the acquirer.
2. The acquirer sends the promotion code in DE 48 (Additional Data—Private
Use) of the Authorization Request/0100 message to the issuer for the
authorization decision.
3. The issuer can use the promotion code to identify transactions that occur at a
merchant that participates in that issuer’s promotion program.
To Participate in the Promotion Code Service

Issuers must notify MasterCard to participate in this service. To participate,
contact the Customer Operations Services team.

Purchase of Goods or Services with Cash Back Transactions for Debit MasterCard Cards
Purchase of Goods or Services with Cash Back Transactions

for Debit MasterCard Cards
MasterCard supports Purchase of Goods or Services with Cash Back
transactions for Debit MasterCard® cards. This feature allows acquirers and
issuers to process Debit MasterCard non-ATM transactions through their
Banknet® connection.
MasterCard allows the use of Purchase of Goods or Services with Cash Back in
Authorization/01xx and Reversal/04xx messages for Debit MasterCard cards.
Issuers may choose whether to allow the Stand-In System to process Purchase Apr
of Goods or Services with Cash Back transactions that are either PIN-based, 2006
signature-based, or both for Debit MasterCard cards. To indicate the Stand-In
System to process Purchase of Goods or Services with Cash Back transactions
for PIN-based, signature-based, or both for Debit MasterCard cards, issuers
may update the Purchase of Goods and Services with Cash Back for Debit
MasterCard Cards Participation form.
Support of Purchase of Goods or Services with Cash Back is optional for

acquirers and issuers that process Debit MasterCard cards.
To Participate
Issuers may complete the Purchase of Goods or Services with Cash Back for
Debit MasterCard Cards Participation form, available in the Business Forms
section of MasterCard OnLine (under Resources in the main menu) and at the
end of this manual.


Proximity Chip Payments
Proximity Chip Payments

The MasterCard Proximity Chip Payment solution, also known as Paypass®, is
part of the global Proximity Payments Program and is designed to enrich the
traditional card with a new contactless interface. The contactless interface
provides cardholder and merchant benefits that are particularly relevant in
environments such as:
• Unattended Point-of-Service (POS) devices (for example, gas pumps and
vending machines)
• Mass throughput venues (for example, quick service and drive-through
restaurants)
Proximity Chip Payments do not require cardholders holding a contactless

MasterCard Chip card to swipe their card through or to insert their card into a
card reader or terminal. Instead, cardholders only need to present their
contactless card in “proximity” of a specially equipped merchant terminal to
make a payment.

Recurring Payments
Recurring Payments
Recurring payments are payments by an issuer to an acquirer on behalf of a
cardholder who authorizes a merchant to bill the cardholder’s account on a
recurring basis (such as monthly or quarterly). The amount of each payment
may be the same or may fluctuate.
Indicating a Recurring Payment

Acquirers can indicate to issuers that a transaction is a recurring payment by
including value 4 in DE 61, subfield 4 in Authorization Request/0100 messages.
Note The recurring payment indicator in DE 61, subfield 4 is required for all recurring
payment transactions.
For more information about recurring payments, see “Merchant Advice Codes”
earlier in this chapter.

Recurring Payment Cancellation Service
Recurring Payment Cancellation Service Apr

2006
The Recurring Payment Cancellation Service (RPCS) is an optional service that

allows issuers to specify criteria to block recurring payment transactions
identified in authorization messages and clearing records.
Benefits of RPCS
RPCS provides the following benefits to the parties involved in processing
recurring payment transactions:
• Increases cardholder confidence to engage in preauthorized recurring
payment transactions
• Promotes recurring payments to increase cardholder transaction volume
• Reduces cardholder dissatisfaction due to being charged after terminating a
recurring payment arrangement with a merchant
• Reduces chargebacks and costs of chargeback handling
How RPCS Works

Issuers participating in RPCS submit recurring payment blocking criteria to the
MasterCard RPCS File database using Issuer File Update/03xx messages (MCC
105) or by notifying the Global Service Center by mail, telex, or fax. The
Authorization System uses the issuer payment blocking criteria to decline
online authorization requests for recurring payments, and the Global Clearing
Management System (GCMS) uses the same issuer criteria to reject clearing
records.
Acquirers receive Authorization Request Response/0110 messages containing

DE 48 (Additional Data—Private Use), subelement 84 (Merchant Advice Code)
with value 21 (Recurring Payment Cancellation Service) indicating RPCS
service.
Issuers receive a store-and-forward Authorization Advice/0120 message

indicating that the authorization request was blocked by the Authorization
System.

Recurring Payment Cancellation Service
Authorization Reports Apr

2006
The following reports provide information that support RPCS:

• The Authorization Parameter Summary Report (SI737010-AA) includes a
RPCS participant parameter in the Global Parameters.
• The Daily Account File Activity Report (AM700010-AA) includes a section
to report the RPCS account maintenance activity. This section groups RPCS
activity by rejected, accepted, and purged.
• The Delete Preview Report (AM710010-AA) includes a section to report the
RPCS accounts that are due to be deleted in the next three weeks. A total
field by ICA of RPCS accounts to be purged also will display.
For samples of these reports and field descriptions, see chapter 10.
To Participate
Issuers must notify MasterCard to participate in this service. To request
participation, contact the Customer Operations Services team.


RiskFinder
RiskFinder
RiskFinder™ is a service that MasterCard offers to help issuers more effectively
predict fraudulent card use. RiskFinder uses a state-of-the-art neural network
to evaluate authorization transactions and produce a transaction score relative
to the potential fraudulent use of the card.
RiskFinder is an optional service.
Using RiskFinder
RiskFinder bases scores on merchant and cardholder data available to the
issuer’s RiskFinder scoring system. This global information complements
members’ current account-based fraud prediction systems. For members not
currently using any fraud predictive model, this package provides a
comprehensive tool to help issuers potentially reduce fraudulent card use.
To Participate
Issuers must notify MasterCard to participate in this service. To request

Members can obtain more information about RiskFinder from the Customer
Interface Specification manual or by contacting the Customer Operations
Services team.

Transaction Research Request

A transaction research request is a request by a member for MasterCard to
provide information about a transaction.
Conducting a Transaction Research Request

Members can use either of the following two methods to research information
about previous transactions:
• MasterCard eService Transaction Research tool. This tool allows members
to conduct research about specific transactions or a range of transactions
for an account number. The report provides members with transactional
data such as card number, card validation code 2 (CVC 2) response, point-
of-sale (POS) entry mode, cardholder present information, Merchant Advice
Code, and message type identifier (MTI).
• Authorization Research Request form to request for the Customer
Operations Services team to perform the research for you. The team
provides information about authorization transactions, duplicate reports,
microfiche re-creation, currency conversion rates, BIN ICAs, and
conversions.
Using the MasterCard eService Transaction Research Tool

The MasterCard eService Transaction Research tool allows users to search the
MasterCard data warehouse for transactions that a member has processed as
either an issuer or an acquirer.
This capability:
• Provides secure access to proprietary authorization information
• Retrieves 17 relevant transaction data elements online with the option to
view all available data elements for a transaction.
• Returns the data within seconds after the member electronically submits
the request for research
In addition, users can print the transaction data or export the information into
a Microsoft® Excel file.
The transaction data is stored in the MasterCard data warehouse and is

available to members for 180 days. Most transactions are available within six
to 12 hours of the transaction time.

To access the MasterCard eService Transaction Request tool, members must be

licensed users. To become a licensed user, follow these steps.
Step Action
1. Log on to MasterCard OnLine® at www.mastercardonline.com.
2. Under the Products menu, click Order Products. The MasterCard Product
Catalog page appears.
3. Click the letter E in the alphabet (the first letter in the MasterCard eService
product name) to go to the MasterCard eService products.
4. Scroll to the eService Transaction Research section.
5. Click New Product Request to request access or Update Product Access to
request a change to an existing profile.
6. Complete the online form, and then click Submit
For help with requesting this process, send an e-mail to

online_requests@mastercard.com.
Accessing the Transaction Research Tool

After being licensed, follow these steps to access the Transaction Research
tool.
Step Action
1. Log on to MasterCard OnLine at www.mastercardonline.com.
2. On the Products menu, point to My Products, and then click MasterCard
eService. The MasterCard eService home page appears.
3. On the Tools menu, click Transaction Research. The Transaction Research

page appears.
The following procedure explains how to use the Transaction Research tool.

Figure 9.32—MasterCard eService Transaction Research Tool

Step Action
1. In the Card Number box, enter the cardholder account number that you want
to research.
Note: MasterCard uses the optional ICA number for your tracking purposes
only. If you enter an ICA number here, it will appear on your billing report to
help you identify transactions.
2. In the Data Range area, enter a starting transaction date and an ending
transaction date using a MM/DD/YYYY format.
Note: Click the Calendar link to select a date.
3. If you want to identify a transaction more specifically by its approval code,

enter the Authorization Code.
4. If you want to identify a transaction more specifically by its amount, select one
of the following options:
• Click All Transactions to retrieve all transactions.
• Click Single Transaction, and then enter the amount in U.S. dollars to
identify a single transaction.
• Click Transaction Range, and then enter a starting transaction amount in
U.S. dollars and the ending transaction amount in U.S. dollars to identify a
range of transactions.
5. Click Search.
Figure 9.33 provides a sample of the search results screen that the MasterCard
eService Transaction Research tool provides.

Figure 9.33—MasterCard eService Transaction Research Tool, Results Screen
To display the detailed results for a specific transaction, select the transaction
you want, and then click Detail.
Figure 9.34 provides a sample of the detailed results that the MasterCard
eService Transaction Research tool provides.

Figure 9.34—MasterCard eService Transaction Research Tool, Detail Results

Screen
Using the Transaction Research Request Form

You also may submit a transaction research request by completing and sending
the Transaction Research Request form to MasterCard. If you do, MasterCard
will send you a letter, with the authorization information, that you can use for
chargeback purposes. If you request the services informally via a member
representative, you will not receive a letter.
Understanding Fees for Transaction Research Requests

A general research fee applies to each member inquiry requesting information
that is readily available to the member in a MasterCard publication, report,
service, or other source. See the MasterCard Consolidated Billing System
Manual for fees and billing information. (The billing events are 2RP1778,
2AB1698, and 2AB1699.)

Travel Industries Premier Service
Travel Industries Premier Service

The Travel Industries Premier Service supports express services that are part of
preferred customer programs. The vehicle rental and lodging industries
frequently support these express services.
The Travel Industries Premier Service uses value P in DE 48 (Additional Data—

Private Use) of the Authorization Request/0100 to identify transactions that
require express services. The code indicates that the cardholder is enrolled in
a merchant preferred customer program. MasterCard does not capture
magnetic stripe data on the transaction when value P is present.
To Participate
Acquirers must notify MasterCard to participate in this service. To request


Velocity Monitoring
Velocity Monitoring
Velocity monitoring reports specific information about unusual authorization
activity, based on parameters that members supply. The purpose of the
service is to help members identify fraudulent transactions or merchants.
Velocity monitoring uses the activity that the Authorization System processes
and the member-supplied parameters to produce reports.
Velocity monitoring is an optional service.
Types of Velocity Monitoring

MasterCard provides two types of velocity monitoring:
• Authorization Velocity Monitoring (AVM) allows members to identify possible
fraudulent transactions.
• Merchant Velocity Monitoring (MVM) allows members to identify possible
fraudulent merchants.
Velocity Monitoring Reports

Members have the following options for receiving reports:
• Members can receive the AVM and MVM reports as a bulk file via the
mainframe (with setup through the Product Support Department), or
• Using the Fraud Velocity Monitor software on MasterCard OnLine®,
members can retrieve their reports online. For AVM, members also can set
their parameters online. For MVM, members also can set their variances
and thresholds online.
AVM Reporting
AVM reports identify accounts for which authorization activity met or exceeded
the criteria that the member specified. Members can specify parameters for:
• All transactions
• By region
• By industry
• By product type
• For unique transaction types
• For MCC combinations

Velocity Monitoring
The following parameters apply:

• The number of attempted authorization requests for an account within the
48-hour reporting period
• The total dollar amount of all attempted authorizations for an account
within the 48-hour reporting period
• The highest dollar amount of a single authorization request for an account
within the last 24 hours of the reporting period
• The number of key-entered authorization requests within the 48-hour
reporting period
• A CAT or other leading MCC and up to five subsequent MCCs. These
identify transactions that occur at the leading MCC, which are immediately
followed by a transaction at one of the subsequent MCCs.
MVM Reporting
At the end of each authorization day (from midnight to midnight, St. Louis
time), the Authorization System scans all Banknet authorization activity for
unusual activity by an individual merchant. The Authorization System
compares particular data elements against pre-established thresholds.
The criteria to monitor merchants include the following:

• Total amount of authorization activity in U.S. dollars
• Number of authorization requests
• Average authorization request amount
• Percentage of keyed versus swiped authorization requests
• Percentage of approvals versus non-approval authorization responses
• Single maximum authorization request amount
• Multiple authorization requests on a single account
• Multiple authorization requests for a single amount, regardless of the
cardholder account number
Requesting AVM or MVM

Both AVM and MVM are optional services. To request these services or to find
out more about them, see the Security Rules and Procedures manual.
You also can contact the Customer Operations Services team.

10 Reports
This chapter contains information about the reports and logs related to the
MasterCard Authorization System.
Related Reports in Other Manuals....................................................................10-1
Presentation of Reports in this Manual ............................................................10-1
Report Header Information...............................................................................10-2
Authorization Summary Report (AB505010-AA) ..............................................10-3

Report Sample .............................................................................................10-4
Field Descriptions .....................................................................................10-11
Authorization Parameter Summary Report (SI737010-AA) ............................ 10-19

Report Sample ........................................................................................... 10-20
Header Information ............................................................................ 10-25
Global Parameters............................................................................... 10-26
Stand-In Parameters ............................................................................ 10-28
Authorization Summary by CAT Level Report (SI458010-AA)....................... 10-33

Report Sample ........................................................................................... 10-34
GARS Weekly Issuer Transaction Detail Report (GR122010-AA).................. 10-39

Report Sample ........................................................................................... 10-40
GARS Weekly Acquirer Transaction Detail Report (GR122010-BB).............. 10-45

Report Sample ........................................................................................... 10-46
GARS Monthly Acquirer Response Report (GR128010-AA)........................... 10-51

Report Sample ........................................................................................... 10-52

Reports
GARS Monthly Acquirer Response Below Target Report

(GR128010-BB)................................................................................................ 10-55
Report Sample ........................................................................................... 10-56
GARS Monthly Issuer Call Referral Report (GR129010-AA)...........................10-59

Report Sample ........................................................................................... 10-60
Daily Activity Report (SI441010-A) ................................................................. 10-63

Report Sample ........................................................................................... 10-64
Issuer Information............................................................................... 10-64
Acquirer Information .......................................................................... 10-66
AMCC Information .............................................................................. 10-67

Reports
Related Reports in Other Manuals
Related Reports in Other Manuals

Please refer to the MasterCard Consolidated Billing System Manual for layouts
of authorization detail and billing reports, including the following reports.
Report Name Report Number

Issuer Authorization Detail Report AB201010-A2
Acquirer Authorization Detail Report AB202010-A1
Billable Customer Summary GB071010-AA
Customer Service Summary GB073010-AA
Customer Service Roll-Up GB074010-AA
Please refer to the Account Management User Manual for layouts of all reports
related to listing accounts in the Account Management System (AMS), the
Account File, or the Merchant File.
Presentation of Reports in this Manual

This manual introduces each report with an overview that contains the
following information:
• Title—Name or title of the report
• Generated by—System generating the report
• Purpose—Reason for providing the report
• Description—Kind of information included in the report
• Frequency—How often the report is generated
• Distribution Methods—Distribution alternatives and associated bulk file or
MasterCard File Express application identification numbers
A sample of the report follows each overview, with numbers next to fields that
may require description. The field descriptions for the report follow the report
sample.

Reports
Report Header Information
Report Header Information

To avoid redundancy, the bullets below describe header information contained
in all the reports generated by the MasterCard Authorization System. This
information is not described with the individual report descriptions.
• The report number appears in the upper left-hand corner of each report
and identifies the report by number.
• The report header is located in the upper center of each report and
identifies the report by name.
• The page number appears in the upper right-hand corner of each report
and identifies the page number within the report.
• The date appears in the upper right-hand corner of each report and
identifies the date the report was generated. All are St. Louis dates.
• The time, when it appears, is in the upper right-hand corner of each report
and identifies the time the report was generated. All are St. Louis times.

Reports
Title Authorization Summary Report
Generated by MasterCard Authorization System
Purpose To provide members with a tool for analyzing

authorization performance.
Description This report shows authorization transaction

processing volumes and percentages by BIN for the
week. It reflects transactions that use the Banknet®
telecommunications network and billable items.
Frequency Weekly
Distribution Methods Paper (Sent to the authorization contact established

on the Principal Member Questionnaire.);
MasterCard eService, MasterCard File Express,
complex-to-complex, bulk ID (T829)

Reports
Report Sample
REPORT AB505010-AA MASTERCARD INTERNATIONAL INC. PAGE 1

AUTHORIZATION SUMMARY DATE 04/26/05 TIME 05:58:39
FOR MCBS BILLING WEEK BEGINNING 04/16/05 AND ENDING 04/22/05
ICA 999999 PREFIX 999900 THRU 999999
MEMBER PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY

ACTIVITY VOLUME VOLUME VOLUME VOLUME RANK
ACCEPT 564,630 22,883,608 50,564,716 1,889,434,968 00017/07153

PERCENT OF TOTAL 90.2 90.5 96.2 96.4
DECLINE 59,215 2,307,720 1,741,380 60,674,795 00002/07153

PERCENT OF TOTAL 9.5 9.1 3.3 3.1
CALL-ME 0 0 150,001 5,834,621 N/A

PICK-UP 2,075 87,892 121,165 4,411,816 00010/07153

TOTAL MEMBER PROCESSED 625,920 25,279,220 52,577,262 1,960,356,200
----------------------------------------------------------------------------------------------------------------------------
--
MEMBER APPROVALS BY AVERAGE TOTAL TOTAL YTD AVERAGE YTD TOTAL YTD TOTAL
TRANSACTION TYPE DOLLARS DOLLARS VOLUME DOLLARS DOLLARS VOLUME
MAIL/TELEPHONE 62.98 4,551,994.70 72,276 65.15 185,280,386.57 2,843,761
RETAIL 58.86 23,437,278.81 398,177 59.18 956,823,819.59 16,168,211
CASH ADVANCE 515.73 1,521,389.34 2,950 500.61 68,338,524.18 136,511
COLLEGE/HOSPITAL 128.54 188,570.61 1,467 159.22 11,772,145.33 73,935
HOTEL/MOTEL 129.13 2,524,940.10 19,554 124.37 96,485,766.89 775,819
VEHICLE RENTAL 147.57 672,896.56 4,560 151.75 27,413,086.86 180,651
TRANSPORTATION 205.26 1,153,968.62 5,622 210.15 50,413,442.93 239,892
RESTAURANT 33.25 1,942,706.50 58,435 33.58 80,370,436.82 2,393,379
CIRRUS/ATM .00 .00 0 395.35 5,139.61 13
UNIQUE 270.75 430,219.68 1,589 259.43 18,532,388.74 71,436
PAYMENT TXN .00 .00 0 0 0 0
TOTAL MEMBER APPROVALS 64.51 36,423,964.92 564,630 65.35 1,495,435,137.52 22,883,608

Reports

ICA 999999 PREFIX 999900 THRU 999999
STAND-IN PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY

ACCEPT 411 41,001 232,355 8,355,358 00108/07153
PERCENT OF TOTAL 94.9 91.0 86.2 88.4
DECLINE 20 3,676 15,356 500,897 00158/07153
CALL-ME 0 0 20,625 552,119 N/A
PICK-UP 2 357 1,083 39,632 00067/07153
TOTAL STAND-IN PROCESSED 433 45,034 269,419 9,448,006
TIMED OUT 397 5,718 98,929 3,876,488 00046/07153
PERCENT OF TOTAL 91.7 12.7 36.7 41.0
MEMBER DOWN 0 37,815 116,520 3,172,070 00364/07153
SIGNED OUT 0 1,501 53,970 2,399,448 N/A
NON-ACCEPTED AUTHORIZATIONS BY FAIL REASON

MEMBER DOLLAR
FAIL REASON VOLUME VOLUME
AUTH FILE 0 .00

TRANS LIMIT 20 15595.02
DAY 1 TRANS 0 .00
DAY 1 DOLLARS 0 .00
DAY 2 TRANS 0 .00
DAY 2 DOLLARS 0 .00
DAY 3 TRANS 0 .00
DAY 3 DOLLARS 0 .00
DAY 4 TRANS 0 .00
DAY 4 DOLLARS 0 .00
VIP ACCUM LIMIT 0 .00
CASH ADV ACCUMS 0 .00
MERCH SUSPIC 0 .00
INVALID CHIP/CVC 0 .00
ACCEPTED DOLLARS $19,193.36 NON-ACCEPTED DOLLARS $15,684.82
LIMIT-1 MIP PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY
ACCEPT 0 0 1,319,640 78,253,680 N/A

DECLINE 0 0 0 0 N/A
CALL-ME 0 0 0 0 N/A
PICK-UP 0 0 665 45,597 N/A

TOTAL LIMIT-1 PROCESSED 0 0 1,320,305 78,299,277
-------------------------------------------------------------------------------------------------------------------------------------

Reports

ICA 999999 PREFIX 999900 THRU 999999
-------------------------------------------------------------------------------------------------------------------------------------
MAIL/TELEPHONE 0 0 10,479 429,365 N/A

CASH ADVANCE 0 0 294 24,068 N/A

RETAIL 0 0 1,116,166 69,546,553 N/A

TRAVEL/ENTERTAINMENT 0 0 193,366 8,299,291 N/A

X-CODE MIP PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY
ACCEPT 459 27,852 48,775 2,139,689 00020/07153

PERCENT OF TOTAL 95.4 96.9 79.7 78.2
DECLINE 8 103 6,182 282,101 00087/07153

CALL-ME 14 723 6,222 313,486 00033/07153

PICK-UP 0 52 47 2,216 N/A

TOTAL X-CODE PROCESSED 481 28,730 61,226 2,737,492
MIP PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY

ACCEPT 0 23 19 1,866 N/A

DECLINE 0 21 20 1,465 N/A

CALL-ME 0 0 0 0 N/A
PICK-UP 0 0 0 0 N/A
TOTAL MIP PROCESSED 0 44 39 3,331
BAT PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY

ACCEPT 51 84 542 1,882 00000/13568

PERCENT OF TOTAL 100.0 100.0 98.5 94.2
DECLINE 0 0 3 16 N/A
CALL-ME 0 0 5 101 N/A

PICK-UP 0 0 0 0 N/A
TOTAL BAT PROCESSED 51 84 550 2,000

Reports

ICA 999999 PREFIX 999900 THRU 999999
WEEKLY TOTALS
----------------------------------------------------------------------------------------------------------------------------
---------
WEEKLY TOTAL MEMBER MEMBER YTD SYSTEM SYSTEM YTD WEEKLY

ACCEPT 565,500 22,952,484 52,165,505 1,978,185,561 00017/07153

PERCENT OF TOTAL 90.2 90.5 96.2 96.5
DECLINE 59,243 2,311,520 1,762,938 61,459,258 00002/07153

PERCENT OF TOTAL 9.5 723 3.3 3.0
CALL-ME 14 9.1 176,848 6,700,226 00711/07153

PICK-UP 2,077 88,301 122,960 4,499,261 00010/07153

TOTAL PROCESSED 626,834 25,353,028 54,228,251 2,050,844,306
REPORT AB505010-AA MASTERCARD INTERNATIONAL, INC. PAGE 5

ACQUIRER GENERATED REVERSAL AUTHORIZATION SUMMARY DATE 04/26/05 TIME 05:58:39
ICA 999999 PREFIX 999900 THRU 999999
REVERSAL PROCESSED REVERSAL REVERSAL YTD SYSTEM SYSTEM YTD WEEKLY
ACCEPT 0 0 0 5 N/A
DECLINE 0 0 0 0 N/A
CALL-ME 0 0 0 0 N/A
PICK-UP 0 0 0 0 N/A
TOTAL REVERSAL PROCESSED 0 0 0 5

Reports
--------------------------------------------------------------------------------------------------------------------------------
REVERSAL APPROVALS BY AVERAGE TOTAL TOTAL YTD AVERAGE YTD TOTAL YTD TOTAL
MAIL/TELEPHONE .00 .00 0 .00 .00 0
RETAIL .00 .00 0 .00 .00 0
CASH ADVANCE .00 .00 0 .00 .00 0
COLLEGE/HOSPITAL .00 .00 0 .00 .00 0
HOTEL/MOTEL .00 .00 0 .00 .00 0
VEHICLE RENTAL .00 .00 0 .00 .00 0
TRANSPORTATION .00 .00 0 .00 .00 0
RESTAURANT .00 .00 0 .00 .00 0
CIRRUS/ATM .00 .00 0 .00 .00 0
UNIQUE .00 .00 0 .00 .00 0
PAYMENT TXN .00 .00 0 .00 .00 0
TOTAL REVERSAL APPROVALS .00 .00 0 .00 .00 0

Reports
--------------------------------------------------------------------------------------------------------------------------------
MIP REV PROCESSED REVERSAL REVERSAL YTD SYSTEM SYSTEM YTD WEEKLY
ACCEPT 0 0 0 0 N/A
DECLINE 0 0 0 2 N/A
CALL-ME 0 0 0 0 N/A
PICK-UP 0 0 0 0 N/A
TOTAL MIP REV PROCESSED 0 0 0 2

Reports
REPORT AB505010-AA MASTERCARD INTERNATIONAL, INC. PAGE 6
ACQUIRER GENERATED REVERSAL AUTHORIZATION SUMMARY DATE 04/26/05 TIME 05:58:39
ICA 999999 PREFIX 999999 THRU 999900
-----------------------------------------------------------------------------------------------------------------
W E E K L Y T O T A L S
-----------------------------------------------------------------------------------------------------------------
WEEKLY REVERSAL TOTAL REVERSAL REVERSAL YTD SYSTEM SYSTEM YTD WEEKLY
ACCEPT 0 0 0 0 N/A
DECLINE 0 0 0 0 N/A
CALL-ME 0 0 0 0 N/A
PICK-UP 0 0 0 0 N/A
TOTAL PROCESSED 0 0 0 0

Reports
Field Descriptions
Field Description
Member Processed Activity Summary of all authorization activity received and
processed by the issuer, listed by the following response
categories:
• Accept (“approved”)
• Decline
• Call-Me (“refer to card issuer”)
• Pick-Up (“capture card”)
Member Volume Total transaction volume processed by the member that
generated the specific response and the percentage it
represents of total member transaction volume. The
sample report shows that the member approved
(ACCEPT) 564,630 authorization requests, which were
90.2% of the 625,920 requests processed by the member
that week.
Member YTD Volume Summary of the member’s authorization volume for the
(member year-to-date calendar year-to-date (by response category) and the
volume) percentage it represents of total member volume for the
year-to-date.
System Volume Volume of authorization transactions processed by the
entire membership that week and the percentage it
represents of total volume for the membership for the
week.
System YTD Volume Volume of authorization transactions processed by the
(system year-to-date entire membership for the calendar year-to-date and the
volume) percentage it represents of total volume for the
membership for the year-to-date.
Weekly Rank Ranking by bank identification number (BIN) of member
volume within the membership (compared to total system
volume). This field shows where each BIN stands in
relation to other BINs. In the sample, the Weekly Rank
column at the Accept Category line shows 00017/07153.
This indicates that this BIN ranks 17th out of a total of
7,153 BINs in issuing approvals; 16 BINs issued more
approvals and 7,136 BINs issued fewer approvals.

Reports
Field Description
Member Approvals by Summary of all “approved” responses returned, broken
Transaction Type down by the following transaction categories:
• Mail/Telephone
• Retail
• Cash Advance
• College/Hospital
• Hotel/Motel
• Vehicle Rental
• Transportation
• Restaurant
• Cirrus/ATM
• Unique
• Payment Transaction
Average Dollars Average dollar amount approved for the week, listed by
transaction type. The sample report shows that the
average amount for Mail Order/Telephone Order
(MO/TO) transactions approved for the week was USD
62.98. This amount is the result of dividing the TOTAL
DOLLARS by the TOTAL VOLUME.
Total Dollars Total dollar amount approved for the week, listed by
transaction type
Total Volume Total transaction volume processed by the member for
the week, listed by transaction type. In the sample, the
total volume for MO/TO transactions is 72,276. This
indicates that out of a total of 564,630 approved
transactions, 72,276 were for MO/TO.
YTD Average Dollars Average U.S. dollar amount approved, by transaction
(year-to-date average type, for the calendar year-to-date. This amount is the
dollars) result of dividing the YTD TOTAL DOLLARS by the YTD
TOTAL VOLUME.
YTD Total Dollars Total U.S. dollar amount approved by the member, listed
(year-to-date total by transaction type, for the calendar year-to-date.
dollars)
YTD Total Volume Total transaction volume approved by the member, listed
volume)
Total Member Average U.S. dollar amount, total U.S. dollar amount, total
Approvals transaction volume, and year-to-date totals for all
transactions approved by the member.

Reports
Field Description
Stand-In Processed Activity Summary of all authorization activity received and
processed by Stand-In processing, listed by the following
response categories:
• Decline
See field descriptions for an explanation of Member
Volume, Member YTD Volume, System Volume, System
YTD Volume, and Weekly Rank. All values are for
authorization activity processed by Stand-In processing on
behalf of the member.
Timed Out Number of times the Banknet authorization application
(Percent of Total) sent the original authorization request to the issuer for
processing but the acquiring MIP did not receive a
response in the allocated time. The second line indicates
the percentage of total authorization requests that timed
out in this manner.
Member Down Number of authorization requests sent to Stand-In
(Percent of Total) processing because the Banknet authorization application
recognized that the issuer’s host was down. Transactions
that left the acquiring node but did not reach the issuing
MIP, or did reach the issuing MIP but could not
communicate with the issuer’s host, are included in this
count. The second line indicates the percentage of total
authorization requests sent that the application handled in
this manner.
Signed Out Number of transactions sent to Stand-In processing
(Percent of Total) because the issuer was signed out. The second line
indicates the percentage of total authorization requests
sent that went to Stand-In processing for this reason.
Non-accepted Authorizations by Summary of all authorization activity processed by Stand-
Fail Reason In that Stand-In did not approve because it failed the
indicated tests performed during Stand-In processing.
Fail Reason List of the Stand-In tests that authorization requests must
pass to be approved.
Note: The Fail Reason INVALID CHIP/CVC includes both
transactions that failed for invalid CHIP/CVC in Stand-In
and transactions that failed for magnetic stripe/CVC error
(codes A–J) at the MIP.
Member Volume Total volume of transactions declined authorization
because of failure to pass the Stand-In test listed.

Reports
Field Description
Dollar Volume Total U.S. dollar amount declined authorization because
of failure to pass the Stand-In test listed.
Accepted Dollars Total U.S. dollar amount that Stand-In authorized on
behalf of the issuer for the week reported.
Non-Accepted Dollars Total U.S. dollar amount that Stand-In did not authorize
when processing on behalf of the issuer for the week
reported.
Limit-1 MIP Processed Activity Summary of all authorization activity processed on the
member’s behalf using Limit-1, broken down by the
following response categories:
• Decline
The second part of this page breaks down Limit-1 activity
by the four Limit-1 categories:
• Mail/Telephone
• Cash Advance (cash disbursement)
• Retail
• Travel/Entertainment
authorization activity processed using Limit-1 parameters.

Reports
Field Description
X-Code MIP Processed Activity Summary of all authorization activity processed as X-Code
transactions at the acquirer MIP. These transactions are
transactions that were more than Limit-1 and should have
gone to the issuer or to Stand-In for processing, but the
authorization application could not obtain a response
from either one.
Transactions are listed by the following response
categories:
• Decline
authorization activity processed at the acquirer MIP using
X-Code parameters.
MIP Processed Activity Summary of all authorization activity involving certain
cardholder-activated terminals processed at the MIP that
would not be processed by an issuer or Stand-In.
categories:
• Decline
authorization activity processed at the MIP using X-Code
parameters.

Reports
Field Description
BAT Processed Activity Summary of all authorization activity processed at the
RSC.
categories:
• Decline
authorization activity processed at the Regional Service
Center (RSC) using BAT parameters.
Weekly Total Activity Summary of total transaction volume processed by the
member, Stand-In, Limit-1, X-Code, MIP, and BAT on
behalf of the member for the week reported.
YTD Volume, and Weekly Rank.
Reversal Processed Activity Summary of Acquirer Reversal Request/0400 message
activity received and processed by the issuer, listed by the
• Decline
Reversal Volume Total reversal volume processed by the member that
represents of total member transaction volume.
Reversal YTD Volume Summary of the member’s reversal volume for the
(reversal year-to-date calendar year-to-date (by response category) and the
volume) percentage it represents of total member volume for the
year-to-date.
System Volume Volume of reversal transactions processed by the entire
membership that week and the percentage it represents
of total volume for the membership for the week.
System YTD Volume Volume of reversal transactions processed by the entire
(system year-to-date membership for the calendar year-to-date and the
volume) percentage it represents of total volume for the

Reports
Field Description
Weekly Rank Ranking by bank identification number (BIN) of member
volume within the membership (compared to total system
volume). This field shows where each BIN stands in
relation to other BINs.
Total Reversal Average U.S. dollar amount, total U.S. dollar amount, total
Processed transaction volume, and year-to-date totals for all
Reversal Approvals by Summary of all “approved” responses returned, broken
Transaction Type down by the following transaction categories:
• Mail/Telephone
• Retail
• Cash Advance
• Hotel/Motel
• Vehicle Rental
• Transportation
• Restaurant
• Cirrus/ATM
• Unique
Average Dollars Average dollar amount approved for the week, listed by
transaction type.
Total Dollars Total dollar amount approved for the week, listed by
transaction type
Total Volume Total transaction volume processed by the member for
the week, listed by transaction type.
YTD Average Dollars Average U.S. dollar amount approved, by transaction
(year-to-date average type, for the calendar year-to-date. This amount is the
dollars) result of dividing the YTD TOTAL DOLLARS by the YTD
TOTAL VOLUME.
YTD Total Dollars Total U.S. dollar amount approved by the member, listed
dollars)
YTD Total Volume Total transaction volume approved by the member, listed
volume)
Total Reversals Average U.S. dollar amount, total U.S. dollar amount, total
Approvals transaction volume, and year-to-date totals for all

Reports
Field Description
Stand-In Reversal Processed Summary of all reversal activity received and processed
Activity by Stand-In, listed by the following response categories:
• Decline
See field descriptions for an explanation of Reversal
Volume, Reversal YTD Volume, System Volume, System
authorization activity processed by Stand-In processing on
behalf of the member.
Total Stand-In Reversal Total reversal transaction volume, and year-to-date totals
Processed for all reversals approved by the member.
Weekly Total Activity Summary of total reversal transaction volume processed
by the member, Stand-In, Limit-1, X-Code, MIP, and BAT
on behalf of the member for the week reported.
See field descriptions for an explanation of Reversal
Volume, Reversal YTD Volume, System Volume, System
YTD Volume, and Weekly Rank.

Reports
Authorization Parameter Summary Report (SI737010-AA)
Title Authorization Parameter Summary Report
Purpose To provide members with a list of authorization

parameters.
Description This report includes a comprehensive list of the

parameters that the member uses. It includes
global parameters and Stand-In parameters.
MasterCard provides updates to this report when

members’ parameters change.
Frequency Weekly

on the Principal Member Questionnaire);
MasterCard eService, MasterCard File Express,
complex-to-complex, bulk ID (T300)

Reports
Report Sample
Apr
SI737010-AA MASTERCARD INTERNATIONAL RUN DATE 11/28/05 2006
ICA: 123456 AUTHORIZATION PARAMETER SUMMARY REPORT PAGE: 1
ACQUIRER PARAMETERS N/A
ISSUER PARAMETERS
ACCOUNT RANGE: FROM: 59999999990
THRU: 59999999999
GLOBAL PARAMETERS
----------------------------------------------------------------------------------------------------------------------------
PRODUCT CODE AMCC PARTICIPANT CVC2 PARTICIPANT AVS LEVEL PARTICIPANT RPCS PARTICIPANT
MPL N Y 3 Y
840
----------------------------------------------------------------------------------------------------------------------------
EXPIRATION DATE PARTICIPANT POS BALANCE INQUIRY PARTICIPANT ACQUIRER REVERSAL MESSAGE PARTICIPATION
Y N N - ISSUER DOES NOT RECEIVE THE 0400 MESSAGE

----------------------------------------------------------------------------------------------------------------------------
IN-FLIGHT COMMERCE BLOCKED RANGE
----------------------------------------------------------------------------------------------------------------------------
PAYMENT TRANSACTION BLOCKED RANGE
----------------------------------------------------------------------------------------------------------------------------
GARS PARTICIPANT AUTHORIZATION REFERRAL INTERNATIONAL GARS SECURITY NUMBER
Y 1-800-555-5555 1-800-555-0000 1-800-555-5555
----------------------------------------------------------------------------------------------------------------------------
LOST/STOLEN CUSTOMER SERVICE
1-800-555-5555 1-800-555-5555
-----------------------------------------------------------------------------------------------------------------------------
LOST/STOLEN CUSTOMER SERVICE
1-800-999-9999 1-800-999-9999
-----------------------------------------------------------------------------------------------------------------------------

Reports
SI737010-AA MASTERCARD INTERNATIONAL RUN DATE 11/28/05

ISSUER PARAMETERS

THRU: 59999999999
STAND-IN PARAMETERS
-----------------------------------------------------------------------------------------------------------------------------
HOURS OF OPERATION:
UTC. OFFSET: 0000 + OR - + D.S.T. START DATE: 000000 TIME: 0000
END DATE: 000000 TIME: 0000
LOCAL TIME OPEN CLSE OPEN CLSE OPEN CLSE
SUN 0000 2400 0000 0000 0000 0000
MON 0000 2400 0000 0000 0000 0000
TUE 0000 2400 0000 0000 0000 0000
WED 0000 2400 0000 0000 0000 0000
THU 0000 2400 0000 0000 0000 0000
FRI 0000 2400 0000 0000 0000 0000
SAT 0000 2400 0000 0000 0000 0000
-----------------------------------------------------------------------------------------------------------------------------
HOLIDAYS FOR CALL REFERRAL CENTER:
DATE OPEN CLSE OPEN CLSE DATE OPEN CLSE OPEN CLSE
01. N/A N/A N/A N/A N/A 14. N/A N/A N/A N/A N/A

Reports

ISSUER PARAMETERS

THRU: 59999999999
STAND-IN PARAMETERS
------------------------------------------------------------------------------------------- ---------------------------------
DECISION MATRIX:
OPEN SIGNED-IN: AUTHORIZATION TRANSACTION ACCUMULATIVES VIP
N N N N
OPEN SIGNED-OUT: AUTHORIZATION TRANSACTION ACCUMULATIVES VIP
N N N N
CLOSED SIGNED-IN: AUTHORIZATION TRANSACTION ACCUMULATIVES VIP
N N N N
CLOSED SIGNED-OUT: AUTHORIZATION TRANSACTION ACCUMULATIVES VIP
N N N N
-----------------------------------------------------------------------------------------------------------------------------
CARD LEVEL SUPPORT PARTICIPANT MULTI-CURRENCY LIMITS PARTICIPANT
N N
-----------------------------------------------------------------------------------------------------------------------------

ISSUER PARAMETERS

THRU: 59999999999
-----------------------------------------------------------------------------------------------------------------------------
TRANSACTION PROCESSING PARAMETERS:
TARGET PROMO CAT PRODUCT MCC/TCC CURRENCY

COUNTRY CODE LEVEL ID CODE
GLOBAL ****** * MMM TCC 840
TCC VALUES CARD PRESENT CARD NOT PRESENT

T - MAIL/PHONE 100 200
R - RETAIL 500 500
F - RESTAURANT 225 225
O - COLLEGE/HOSPITAL 450 450
H - HOTEL/MOTEL 750 750
A - AUTOMOBILE 375 375
X - OTHER TRANSPORT 1125 1125
Z - ATM 0 0
U - UNIQUE 150 150
C - CASH ADVANCE 200 200
P - PAYMENT 0 0

Reports

ISSUER PARAMETERS

THRU: 59999999999
-----------------------------------------------------------------------------------------------------------------------------
TARGET PROMO CAT PRODUCT MCC/TCC CURRENCY

COUNTRY CODE LEVEL ID CODE
GLOBAL ****** * VIP TCC 840
TCC VALUES CARD PRESENT CARD NOT PRESENT

T - MAIL/PHONE 999999 999999
R - RETAIL 999999 999999
F - RESTAURANT 999999 999999
O - COLLEGE/HOSPITAL 999999 999999
H - HOTEL/MOTEL 999999 999999
A - AUTOMOBILE 999999 999999
X - OTHER TRANSPORT 999999 999999
Z - ATM 999999 999999
U - UNIQUE 999999 999999
C - CASH ADVANCE 999999 999999
P - PAYMENT 0 0
-----------------------------------------------------------------------------------------------------------------------------
TARGET PROMO CAT PRODUCT MCC/TCC

COUNTRY CODE LEVEL ID
GLOBAL ****** 4 MMM MCC
MCC LIMITS:
MCC CARD PRESENT CARD NOT PRESENT CURRENCY CODE
7995 350 0 840

Reports

ISSUER PARAMETERS

THRU: 59999999999
----------------------------------------------------------------------------- -----------------------------------------------
ACCUMULATIVE LIMITS:
CURRENCY CODE: 840
DAYS COUNT AMOUNT
01 2 1200
02 4 1200
03 4 1200
04 4 1200
CASH ADVANCE: DAYS AMOUNT

0 0
-----------------------------------------------------------------------------------------------------------------------------
VIP CONTROLS:
DAYS COUNT
4 999
-----------------------------------------------------------------------------------------------------------------------------
GROUP & SERIES:
FROM: 5412-3456-7890-0000 THRU: 5412-3999-9999-9999
REGIONS: A: X B: X C: X D: X E: X 1: X
-----------------------------------------------------------------------------------------------------------------------------
STAND-IN BLOCKED RANGE:
FROM: 5999999999000000000 THRU: 5999999999010000000

FROM: 5999999999900000000 THRU: 5999999999960000000
-----------------------------------------------------------------------------------------------------------------------------

ISSUER PARAMETERS

THRU: 59999999999
-----------------------------------------------------------------------------------------------------------------------------
CVC1 PROCESSING PARAMETERS:
FROM: 59000000000 THRU: 59999999999
NO QUALIFYING EXPIRATION DATE RANGES FOUND - CVC VERIFICATION ON ENTIRE CVC RANGE.
-----------------------------------------------------------------------------------------------------------------------------
LIMIT 1 PROCESSING
MAIL/TELEPHONE: 150
TRAVEL: 25
CASH-DISBURSEMENT: 50
RETAIL: 100
NTH TRANSACTION: 3
------------------------------------------------------------------------ ----------------------------------------------------
ON-BEHALF SERVICES
DESCRIPTION
M/CHIP CRYPTOGRAM VALIDATION IN STAND-IN
* END OF DETAIL RECORDS *

*************************************************** BOTTOM OF DATA **********************************************************

Reports
Field Descriptions
The Authorization Parameter Summary Report (SI737010-AA) includes:
• Header Information
• Global Parameters
• Stand-In Parameters
Note MasterCard provides an updated version of this report for members when their
parameters change.
Header Information
The Authorization Parameter Summary Report (SI737010-AA) header
information includes the following data:
ICA Unique six-digit ID number assigned by MasterCard to identify

a member or processing end-point. (Sequenced by ICA.)
Acquirer Parameters— For future use.
N/A
Issuer Parameters All parameters relating to that issuer.

Account Range Range of accounts within “From…Thru.” These range
numbers are associated with the member’s ICA number.
From: Range of account numbers for the issuer’s parameters. The
Thru: report shows the first 19 digits of each range.

Reports
Global Parameters
The Authorization Parameter Summary Report (SI737010-AA) global parameters
include the following data:
Field Description
Product Code Three-position field that identifies Financial Network
Codes.
AMCC Participant A one-character flag that indicates whether an account
range processes authorizations in its own currency.
• Y—Report includes the currency code of the
participant.
• N—Report does not include the currency code of the
participant.
Currency Code Three-digit number that identifies the participant’s
currency code.
CVC 2 Participant A one-character flag that indicates whether a member
participates in CVC 2. CVC 2 is a three-digit numeric
character code that is indent-printed into the signature
panel in the back of a card.
• Y—Member participates in CVC 2.
• N—Member does not participate in CVC 2.
AVS Level Participant A one-position field that indicates a member’s AVS service
level.
• 0—AVS not supported.
• 1—Issuer provides AVS, receives full address data.
• 2—Issuer provides AVS, receives condensed address
data. (This level supports the algorithm that uses the
first five numeric digits in an address [when scanning
the address from left to right].)
• 3—Issuer provides AVS, receives condensed address
data. (This level supports the algorithm that uses the
first five numeric digits in an address. This algorithm
stops searching for numbers after it encounters an
alphabetic character or space [when scanning the
address from left to right.])
Apr
RPCS Participant A one-character flag that indicates whether a member 2006
participates in the Recurring Payment Cancellation Service
(RPCS).
• Y—Member participates in RPCS.
• N—Member does not participate in RPCS.

Reports
Field Description
Expiration Date Participant A one-character flag that indicates whether a member
participates in the Expired Card Override service.
• Y—Member participates in the Expired Card Override
service.
• N—Member does not participate in the Expired Card
Override service.
POS Balance Inquiry One-position field that indicates whether the account
Participant range participates in POS balance inquiries.
• Y—Account range participates in POS balance
inquiries.
• N—Account range does not participate in POS
balance inquiries.
Acquirer Reversal Message A field that indicates whether the issuer participates in the
Participation acquirer reversal request message functionality:
• Y—Issuer receives the 0400 message
• N—Issuer does not receive the 0400 message
In-flight Commerce Blocked Two 19-digit account range numbers that indicate the
Range “from” and the “to” account ranges to block for in flight
commerce service.
In-flight commerce (IFC) is a service that identifies
transactions conducted via interactive video terminals by
passengers on a long-distance airplane flight.
Payment Transaction Two 19-digit numeric account range numbers that
Blocked Range indicate the “from” and the “to” account ranges to block
for this transaction type. A Payment Transaction is a
transaction in which a Payment Service Provider facilitates
the transfer of funds to an issuer for posting to a
cardholder’s MasterCard account.
GARS Participant Flag that indicates whether the member is a Global
Automated Referral System (GARS) participant.
• Y—Member participates in the GARS service.
• N—Member does not participate in the GARS service.
Authorization Referral Indicates the phone number GARS uses to contact the
issuer on domestic-call referral responses.
International GARS Indicates the phone number GARS uses to contact the
issuer on international call referral responses.
Security Number Indicates the phone number for reporting security issues.
Lost/Stolen Indicates the phone number for reporting lost or stolen
MasterCard® cards.

Reports
Field Description
Customer Service Indicates the phone number for cardholder inquiries.
Stand-In Parameters
The Authorization Parameter Summary Report (SI737010-AA) Stand-In
parameters include the following data:
Field Description
Hours of Operation Indicates the hours of operations for the issuer’s
authorization system.
UTC Offset Time difference between the member’s local time and
Coordinated Universal Time (UTC—formerly GMT
[Greenwich mean time]).
UTC Offset represents whether the local time is ahead (+)
or behind (-) UTC by the number of hours indicated in
the UTC Offset field.
D.S.T. Daylight Saving Time (D.S.T.) represents the daylight-
saving time start and end dates and times for the member.
Local Time Indicates the open and close local time for the member.
Holidays for Call Referral Definition of 26 holidays for the issuer’s Call Referral
Center Center, with up to two openings and closings per
holiday.
Decision Matrix A matrix that contains values that represent a member’s
choice of Stand-In processing responses to transactions if
a transaction goes to Stand-In processing in a given state.
• C—Call referral
• N—Decline
• A—Continue with Stand-In processing
• P—Capture card
Open Signed In, Indicates times when the issuer’s authorization center is
Closed Signed In open versus when it is closed.
Open Signed Out, Indicates times when the issuer’s authorization center is
Closed Signed Out signed in versus when it is signed out (for online issuers).
Card Level Support A one-character flag that indicates if the member is a Card
Participant Level Support participant.
• Y—Member participates in Card Level Support.
• N—Member does not participate in Card Level
Support.

Reports
Field Description
Multi-Currency Limits A one-character flag that indicates if the member
Participant participates in multi-currency limits in Stand-In
processing.
• Y—Member participates in multi-currency limits.
• N—Member does not participate in multi-currency
limits.
Transaction Processing This section of the report depends on the number of rules
Parameters that apply to a member. The report reflects all rules that
apply to that particular member.
Target Country Indicates the acquirer country for which the limits are
applied.
MasterCard has established minimum and maximum
values for certain parameters. MasterCard will set the
minimum limits as default values to establish member’s
limits.
• Foreign Default—Established limits outside of the
country of issuance.
• Global—Established limits for all members by
product code, MCC, and/or CAT level.
Promo Code Indicates the promotion code for which the limits are
(Promotion Code) applied. Lists the six-character alphanumeric codes that
an issuer establishes to identify transactions that meet
requirements for an issuer’s promotional program for a
card range.
CAT Level Lists a one-character numeric code that identifies
transactions that occur at a CAT. A CAT is a cardholder-
activated terminal that is usually unattended and accepts
bankcards, debit, charge, and proprietary cards for a card
range. CATs are defined by levels.
• 0—Not a CAT transaction
• 1—Automated dispensing machines with PIN
• 2—Self-service terminals
• 3—Limited-amount terminals
• 4—In-flight commerce terminals
• 6—Electronic commerce
• 7—Transponder
Product ID Lists the three-character code that identifies the type of
card program for an account, such as Gold MasterCard®
card.

Reports
Field Description
MCC/TCC Lists the card acceptor business code/merchant category
code (MCC) and the transaction category code (TCC) for
which limits are applied.
Currency Code Three-digit number that identifies the member’s chosen
currency code for amount limits.
Card Present Amount Transaction amount limit when a card is present.
Card Not Present Transaction amount limit when a card is not present.
Amount
Accumulative Limits Four-day accumulative day and amount limits established

by the issuer. The accumulation limits are for the number
of transactions and amounts. Stand-In processing will not
approve any amount that raises the accumulative amount
already approved above the specified limit for the
specified period of days.
Currency Code Three-digit number that identifies the member’s chosen
currency code for amount limits.
VIP Controls Indicates specific limits that Stand-In processing applies to
accounts listed in the Account File as VIP. The VIP
designation is a method of identifying accounts that the
issuer wants Stand-In to process differently from
MasterCard cards, BusinessCard cards, and Gold
MasterCard cards.
During the Accumulative Limits test for VIP accounts,
Stand-In processing applies the Days and Count Limit
parameters.
Group and Series Identifies a range of card account numbers listed on a
Warning Notice or in the Electronic Warning Bulletin file
submitted by MasterCard on behalf of an issuer to the
Account Management System for the purpose of notifying
a merchant to capture any card bearing an account
number that falls within that range.
Regions There is a Warning Notice for each region outside of the
United States. The following list defines the geographical
areas that make up each of these regions:
• A—Canada
• B—Caribbean, Central America, Mexico, and South
America
• C—Asia/Pacific
• D—Europe
• E—South Asia/Middle East/Africa (SAMEA)

Reports
Field Description
Stand-In Blocked Range Identifies a range of card numbers within a BIN that have
not been issued to cardholders or card ranges previously
blocked and should be unblocked. Range blocking only
applies for transactions processed by Stand-In. Card
numbers within blocked ranges do not automatically
appear in the Account Management System (AMS)
Electronic Warning Bulletin file.
CVC 1 Processing Indicates if the IIN listed participates in Card Validation
Parameters Code 1 (CVC 1) verification in Stand-In processing. A
two-part card security feature, CVC 1 is a three-digit value
encoded on tracks 1 and 2 in three contiguous positions
in the “discretionary data” field of a magnetic stripe on a
MasterCard card.
From: Thru: Qualifying account BIN range that the member wants to
target for CVC 1 verification in Stand-In processing.
Members specify qualifying BIN ranges when they sign
up for CVC 1 verification in Stand-In processing. Each
qualifying BIN range has an associated expiration date.
If the report shows qualifying BIN ranges, then
MasterCard performs CVC 1 verification in Stand-In
processing only on the qualifying BIN ranges.
Within the qualifying BIN ranges, MasterCard performs
CVC 1 verification only when the expiration date on the
account is equal to or greater than the expiration date
listed for the qualifying BIN range.
If the report does not show qualifying BIN ranges, then
the report prints the following message:
NO QUALIFYING EXPIRATION DATE RANGES FOUND—
CVC VERIFICATION ON ENTIRE CVC RANGE
In this case, MasterCard performs CVC 1 verification in
Stand-In processing on the entire BIN range shown in
report sample.
If there are no account ranges defined for CVC 1
verification, then the report prints the following message:
THERE ARE NO RANGES DEFINED FOR CVC 1
VERIFICATION.
Exp Date Year/Mo Date the card expires.

Reports
Field Description
Limit 1 Processing Processing that limits the number of transactions that the
Authorization System forwards to the issuer. Limit-1
processing is part of Stand-In processing, and it uses
issuer-defined parameters to return an authorization
response. Limit-1 processing responds to authorization
requests without forwarding them to the issuer when the
transaction amount is equal to or less than the issuer-
defined amount limits, and the transaction does not fail
any of the Stand-In tests.
Mail/Telephone Current Limit-1 value established by the issuer for
mail/telephone transactions.
Travel Current Limit-1 value established by the issuer for
transactions.
Cash-Disbursement Current Limit-1 value established by the issuer for cash
disbursement transactions.
Retail Current Limit-1 value established by the issuer for retail
transactions.
Nth Transaction Indicates how many transactions Limit-1 can process
before sending the next transaction to the issuer for
processing. The sample report indicates that this issuer
allows the MIP to process 9,998 transactions on their
behalf under Limit-1 processing. The Authorization
System will transmit each 9,999th transaction acquired at
a particular acquiring MIP to the issuer for processing.
On-behalf Services Lists the on-behalf service description for the on-behalf
services that are enabled for an account range. There is a
maximum of 10 on-behalf services.

Reports
Authorization Summary by CAT Level Report (SI458010-AA)
Authorization Summary by CAT Level Report (SI458010-

AA)
Title Authorization Summary by CAT Level
Purpose To provide members with a tool for analyzing

authorization performance for cardholder-activated
transactions.
Description MasterCard produces this report for each CAT level.

The report shows authorization transaction
processing volumes and percentages by BIN for the
week for the CAT level of the report. It reflects
network usage (that is, transactions that travel
across the Banknet network, not only billable items,
which are listed apart from other transactions in the
authorization detail reports located in the
The report displays activity by authorization

response: Accept (“approved”), Decline (“decline”),
Call-Me (“refer to card issuer”), and Pick-Up
(“capture card”). It also displays transactions by
transaction category (such as mail/telephone and
retail).
Frequency Weekly

on the Principal Member Questionnaire);
MasterCard eService

Reports
Report Sample
REPORT SI458010-AA MASTERCARD INTERNATIONAL, INC. PAGE 1

AUTHORIZATION SUMMARY BY CAT LEVEL
FOR CAT 2 WEEK BEGINNING 06/21/99 AND ENDING 06/27/99 DATE 06/29/99 TIME 18:42:23
ICA 999999 PREFIX 999999
CAT 2 PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD

ACTIVITY VOLUME VOLUME VOLUME VOLUME
ACCEPT 68 3,025 6,440,271 102,163,683

PERCENT OF TOTAL 98.5 97.7 98.0 98.5
DECLINE 1 45 109,948 1,362,904

CALL-ME 0 18 10,016 105,310

PICK-UP 0 8 9,809 126,016

TOTAL MEMBER PROCESSED 69 3,096 6,570,042 103,757,913
------------------------------------------------------------------------------------------------------------------------------------
APPROVALS BY AVERAGE TOTAL TOTAL YTD AVERAGE YTD TOTAL YTD TOTAL
MAIL/TELEPHONE 1.00 45.00 45 1.00 139.00 139
RETAIL 43.45 782.21 18 35.17 100,833.28 2,861
CASH ADVANCE 0.00 0.00 0 0.00 0.00 0
COLLEGE/HOSPITAL 0.00 0.00 0 0.00 0.00 0
HOTEL/MOTEL 0.00 0.00 0 683.80 1,991.40 3
VEHICLE RENTAL 0.00 0.00 0 0.00 0.00 0
TRANSPORTATION 0.00 0.00 0 99.20 496.00 5
RESTAURANT 61.33 184.00 3 89.71 1,435.43 16
CIRRUS/ATM 0.00 0.00 0 0.00 0.00 0
UNIQUE 0.00 0.00 0 34.00 34.00 1
TOTAL MEMBER APPROVALS 15.32 1,011.21 86 34.62 104,729.11 3,025

Reports
REPORT SI458010-AA MASTERCARD INTERNATIONAL, INC. PAGE 2

AUTHORIZATION SUMMARY BY CAT LEVEL
FOR CAT 2 WEEK BEGINNING 06/21/99 AND ENDING 06/27/99 DATE 06/29/99 TIME 18:42:23
ICA 999999 - TOTAL FOR ALL PREFIXES
CAT 2 PROCESSED MEMBER MEMBER YTD SYSTEM SYSTEM YTD

ACTIVITY VOLUME VOLUME VOLUME VOLUME
ACCEPT 94 8,480 6,440,271 102,163,683

PERCENT OF TOTAL 92.2 95.4 98.0 98.5
DECLINE 8 330 109,948 1,362,904

CALL-ME 0 69 10,016 105,310

PICK-UP 0 13 9,809 126,016

TOTAL MEMBER PROCESSED 102 8,892 6,570,042 103,757,913

-----------------------------------------------------------------------------------------------------------------------------
APPROVALS BY AVERAGE TOTAL TOTAL YTD AVERAGE YTD TOTAL YTD TOTAL
MAIL/TELEPHONE 1.00 64.00 64 2.09 414.95 198
RETAIL 35.60 961.32 27 37.96 313,467.25 8,257
CASH ADVANCE 0.00 0.00 0 0.00 0.00 0
COLLEGE/HOSPITAL 0.00 0.00 0 0.00 0.00 0
HOTEL/MOTEL 0.00 0.00 0 663.80 1,991.40 3
VEHICLE RENTAL 0.00 0.00 0 0.00 0.00 0
TRANSPORTATION 0.00 0.00 0 99.20 496.00 5
RESTAURANT 61.33 184.00 3 89.71 1,435.43 16
CIRRUS/ATM 0.00 0.00 0 0.00 0.00 0
UNIQUE 0.00 0.00 0 34.00 34.00 1

TOTAL MEMBER APPROVALS 12.87 1,209.32 94 37.48 317,839.03 8,480

Reports
Field Descriptions
Field Description
CAT Processed Activity Summary of all authorization activity received and processed
by the issuer for the CAT level on the report, listed by the
• Decline
Member Volume Total CAT transaction volume processed by the member that
represents of total member CAT transaction volume. The
sample report shows that the member approved (ACCEPT) 68
CAT 2 authorization requests, which were 98.5% of the 69 CAT
2 requests processed by the member that week.
Member YTD Volume Summary of the member’s CAT authorization volume for the
(member year-to-date calendar year-to-date (by response category) and the
volume) percentage it represents of total member CAT volume for the
year-to-date.
System Volume Volume of CAT authorization transactions processed by the
entire membership that week and the percentage it represents
of total CAT volume for the membership for the week.
System YTD Volume Volume of CAT authorization transactions processed by the
(system year-to-date entire membership for the calendar year-to-date and the
volume) percentage it represents of total CAT volume for the
Total Member Total member CAT volume, year-to-date volume, system
Processed volume, and system year-to-date volume for all authorization
responses.

Reports
Field Description
Approvals by Summary of all “approved” responses returned for CAT
Transaction Type transactions, divided by the following transaction categories:
• Mail/Telephone
• Retail
• Cash Advance
• Hotel/Motel
• Vehicle Rental
• Transportation
• Restaurant
• Cirrus/ATM
• Unique
Average Dollars Average dollar amount approved for CAT transactions for the
week, listed by transaction type. The sample report shows
that the average amount for Restaurant CAT 2 transactions
approved for the week was USD 61.33. This amount is the
result of dividing the TOTAL DOLLARS by the TOTAL
VOLUME.
Total Dollars Total dollar amount approved for CAT transactions for the
week, listed by transaction type.
Total Volume Total CAT transaction volume processed by the member for
the week, listed by transaction type. In the sample, the total
volume for Restaurant transactions is 3. This indicates that out
of a total of 86 approved CAT 2 transactions, 3 were for
Restaurant.
YTD Average Dollars Average U.S. dollar amount approved, by transaction type, for
(year-to-date average CAT transactions for the calendar year-to-date. This amount is
dollars) the result of dividing the YTD TOTAL DOLLARS by the YTD
TOTAL VOLUME.
YTD Total Dollars Total U.S. dollar amount of CAT transactions approved by the
(year-to-date total member for the calendar year-to-date.
dollars)
YTD Total Volume Total CAT transaction volume approved by the member for the
(year-to-date total calendar year-to-date.
volume)

Reports
Field Description
Total Member Average U.S. dollar amount, total U.S. dollar amount, total
Approvals transaction volume, and year-to-date totals for all CAT
Total For All Prefixes Activity totals for all the member’s BINs (all of the previous
pages of the report). Totals are listed by authorization
response (accept, decline, call-me, and pick-up) and by
transaction category (mail/telephone, retail, and so on).

Reports
GARS Weekly Issuer Transaction Detail Report (GR122010-AA)
GARS Weekly Issuer Transaction Detail Report (GR122010-

AA)
Generated by Global Automated Referral Service
Purpose To provide issuers the information necessary to

monitor GARS performance.
Description Provides details for each GARS transaction and a

summary page. Reports GARS transactions that
occurred the previous week (Sunday through
Saturday).
Frequency Weekly
Distribution Methods Banknet bulk ID T892, paper, magnetic tape,

cartridge, MasterCard eService
(MasterCard distributes this report according to the

address and distribution media designated on the
GARS Initiation and Change Form.

Reports
Report Sample
GR122010-AA MASTERCARD INTERNATIONAL RUN DATE: MM/DD/YY
GARS WEEKLY ISSUER TRANSACTION DETAIL REPORT PAGE: 1
ISSUER: 540000 MEMBER NAME: ABC FINANCIAL INSTITUTION
ACQUIRER CARD NUMBER TRAN DATE/TIME DURATION OUT DIAL NO. CALL COMPLETION
001235 5000000000000001 11/31/98 14:55:00 4:02 555-555-5555 ISSUER RING, NO ANSWER
STAND-IN CODE 10=N MCC=5999 TCC=01 EXP DTE=05/00 AMT= $100.00 RESPONSE = APPROVAL
001237 5000000000000002 11/31/98 15:01:01 3:45 555-555-5555 ISSUER INTERNATIONAL
001238 5000000000000003 12/01/99 02:22:01 0:20 555-555-5555 ABANDON CALL
001239 5000000000000004 12/01/99 03:04:44 3:45 555-555-5555 ISSUER LINE BUSY
STAND-IN CODE 10=N MCC=6010 TCC=04 EXP DTE=10/01 AMT= $300.00 RESPONSE = DECLINE
001230 5000000000088885 12/02/99 14:15:25 8:45 312-123-4567 ISSUER DOMESTIC
GR122010-AA MASTERCARD INTERNATIONAL RUN DATE: MM/DD/YY
GARS WEEKLY ISSUER TRANSACTION DETAIL REPORT PAGE: 2
ISSUER: 540000 MEMBER NAME: ABC FINANCIAL INSTITUTION
ACQUIRER CARD NUMBER TRAN DATE/TIME DURATION OUT DIAL NO. CALL COMPLETION
-------------------- ISSUER 540000 ACTIVITY ------------------------
TOTAL CALLS 5
TOTAL EXCEPTIONS 1
TOTAL ISSUER 2
TOTAL STAND-IN 2
TOTAL STAND-IN APPROVALS 1
TOTAL STAND-IN NON-APPROVAL 1
STAND-IN APPROVAL PERCENTAGE 50.00 %
TOTAL TELEX TO TELEX 0
TOTAL TELEX TO PHONE 1
TOTAL PHONE TO TELEX 0
TOTAL PHONE TO PHONE 1
AVERAGE CALL DURATION 5:04

Reports
Field Descriptions
Field Description
Issuer The ICA number of the issuer that receives this report
Member Name Financial institution name of the issuer that receives this report
Acquirer The ICA number of the acquirer associated with the particular
GARS call
Card Number The card number that the acquirer’s agent entered for the
particular GARS call
Tran Date/Time The date and time when GARS received the call from the
acquirer
Duration The duration of the call in minutes and seconds
Out Dial No. The issuer or ITAC phone number to which GARS connected
the acquirer
Call Completion Result of the GARS call. Each transaction will list one of the
messages in the following table.
Message Text Used When… Action Taken
Abandon Call The call duration GARS ended the
was less than one call.
minute.
Invalid Check The card number GARS transferred
Digit entered contains an the call to a GARS
invalid check digit. agent for assistance.
Invalid Issuer The issuer phone GARS transferred
Phone Number number is invalid. the call to a GARS
agent for assistance.
Issuer GARS connected the Call successfully
call to the issuer’s completed.
agent.
Issuer Domestic GARS connected the Call successfully
agent using the
issuer’s domestic
phone line.

Reports
Field Description
International call to the issuer’s completed.
agent using the
issuer’s international
phone line.
Issuer Line Busy The issuer’s phone Stand-In processing
line was busy. generated the
authorization
response.
Issuer Ring, No The issuer’s agent Stand-In processing
Answer did not answer the generated the
call. authorization
response.
ITAC Agent GARS connected the Call successfully
call to an ITAC completed.
agent, who sent a
telex to the issuer.
ITAC Agent The issuer did not Stand-In processing
Transfer answer the ITAC generated the
agent’s telex authorization
message. response.
Merchant The acquiring agent GARS transferred
Suspicious indicated a merchant the call to a GARS
suspicious condition agent for assistance.
when entering
Stand-In information
for GARS.
Problem On GARS could not Stand-In processing
Circuit place the call. The generated the
phone number may authorization
be invalid. response.
SI Invalid Card Stand-In processing GARS ended the
Number returned a response call.
of “Invalid Card
Number.”

Reports
Field Description
Telephone Circuit After three attempts, Stand-In processing
Busy GARS was unable to generated the
place the call authorization
because the circuit response.
was busy.
Stand In Indicates that Stand-In processing occurred for the GARS
transaction. The fields on the Stand-In line provide the
information that the acquirer’s agent entered for Stand-In
processing.
Code 10 = N Confirmation that the acquiring agent did not indicate a
merchant suspicious condition.
MCC = The four-digit merchant category code that the acquiring agent
entered to GARS.
TCC = The transaction category code that the acquiring agent entered
to GARS. Refer to the field codes and the corresponding TCCs
in the table below.
Field Codes that
Appear on the
Report TCC Meaning
01 R Retail
02 T Mail Order/Telephone
Order
03 C Cash
04 X Airline and other
Transportation
11 A Automobile/Vehicle Rental
12 F Restaurant
13 H Hotel/Motel
14 O Hospitalization/College
15 U Unique
16 P Payment Transaction
EXP DTE = The expiration date of the card that the acquiring agent
entered to GARS.
AMT = The transaction amount that the acquiring agent entered to
GARS.

Reports
Field Description
Response The authorization response that Stand-In generated to
complete the GARS call.
Total Calls The total number of calls that GARS processed, including
exception calls (see “Total Exceptions” below), calls that GARS
processed via Stand-In, and calls that either the issuer or ITAC
processed.
Total Exceptions The total number of calls that GARS processed for any of the
following reasons:
• Abandon Call
• Invalid Check Digit
• Invalid Issuer Phone Number
• Merchant Suspicious
• SI Invalid Card Number
Total Issuer The total number of calls that GARS connected to the issuer or
to an ITAC agent.
Total Stand-In The total number of calls that GARS processed via Stand-In.
Total Stand-In The total number of calls that GARS processed via Stand-In
Approvals and that Stand-In approved.
Total Stand-In Non- The total number of calls that GARS processed via Stand-In
Approval that Stand-In did not approve.
Stand-In Approval The percentage of calls that resulted in an approval from
Percentage Stand-In in relation to the total number of GARS calls that
Stand-In processed.
Total Telex To Telex The total number of calls that the acquirer entered via telex to
ITAC and that ITAC connected to the issuer via telex.
Total Telex To Phone The total number of calls that the acquirer entered via telex to
ITAC and that ITAC connected to the issuer via phone.
Total Phone To Telex The total number of GARS calls that the acquirer entered via
phone, that GARS subsequently connected to ITAC, and that
ITAC connected to the issuer via telex.
Total Phone To Phone The total number of GARS calls that the acquirer entered via
phone and that GARS connected to the issuer via phone.
Average Call Duration The average duration of the call in minutes and seconds for all
calls that Stand-In, the issuer, or ITAC processed. (This
average excludes the Exceptions category of GARS calls.)

Reports
GARS Weekly Acquirer Transaction Detail Report (GR122010-BB)
GARS Weekly Acquirer Transaction Detail Report

(GR122010-BB)
Generated by Global Automated Referral Service
Purpose To provide acquirers the information necessary to

monitor GARS performance.
Description Provides details for each GARS transaction and a

summary page. Reports GARS transactions that
occurred the previous week (Sunday through
Saturday).
Frequency Weekly

MasterCard distributes this report according to the


Reports
Report Sample
GR122010-BB MASTERCARD INTERNATIONAL RUN DATE: 12/06/99
ICA 540000 GARS WEEKLY ACQUIRER TRANSACTION DETAIL REPORT PAGE: NNNNNN
ACQUIRER: 001234 MEMBER NAME: ABC FINANCIAL INSTITUTION
ISSUER CARD NUMBER TRAN DATE/TIME DURATION OUT DIAL NO. CALL COMPLETION
001235 541235000000001 11/31/98 14:55:00 4:02 312-123-4567 ISSUER RING NO ANSWER
STAND-IN CODE 10=N MCC=5999 TCC=01 EXP DTE=05/00 AMT= $100.00 RESPONSE = APPROVAL
001237 5412370000000002 11/31/98 15:01:01 3:45 44-542-456-7890 ISSUER INTERNATIONAL
001238 5412380000000003 12/01/99 02:22:01 0:20 414-123-1234 ABANDON CALL
001239 5412390000000004 12/01/99 03:04:44 3:45 123-234-567-8901 ISSUER LINE BUSY
STAND-IN CODE 10=N MCC=6010 TCC=03 EXP DTE=10/01 AMT= $300.00 RESPONSE = DECLINE
001230 5412300000000005 12/02/99 14:15:25 8:45 000-004-2174 ITAC AGENT
ICA 540000 GARS WEEKLY ACQUIRER TRANSACTION DETAIL REPORT PAGE: 2
ACQUIRER: 001234 MEMBER NAME: ABC FINANCIAL INSTITUTION
ISSUER CARD NUMBER TRAN DATE/TIME DURATION OUT DIAL NO. CALL COMPLETION
-------------------- ACQUIRER 001234 ACTIVITY -------------------------
TOTAL CALLS 5
TOTAL EXCEPTIONS 1
TOTAL ISSUER 2
TOTAL STAND-IN 2
TOTAL STAND-IN APPROVALS 1
TOTAL STAND-IN NON-APPROVAL 1
STAND-IN APPROVAL PERCENTAGE 50.00 %

Reports
Field Descriptions
Field Description
Acquirer The ICA of the acquirer that receives this report.
Member Name Financial institution name of the acquirer that receives this
report.
Issuer The ICA of the issuer associated with the particular GARS call.
Card Number The card number that the acquirer’s agent entered for the
particular GARS call.
Tran Date/Time The date and time when GARS received the call from the
acquirer.
Duration The duration of the call in minutes and seconds.
Out Dial No. The issuer or ITAC phone number to which GARS connected
the acquirer.
Call Completion Result of the GARS call. Each transaction will list one of the
messages in the following table.
Message Text Used When... Action Taken
Abandon Call The call duration was GARS ended the

less than one minute. call.
Invalid Card The card number GARS ended the
Number entered is not a call.
MasterCard number.
Invalid Check The card number GARS transferred
Digit entered contains an the call to a GARS
invalid check digit. agent for assistance.
Invalid ICA The acquiring agent GARS ended the
did not confirm the call.
acquiring ICA or the
acquiring ICA is
invalid.
Invalid Issuer The card number GARS transferred
entered is not within a the call to a GARS
valid MasterCard BIN. agent for assistance.
Invalid Issuer The issuer phone GARS transferred
Phone Number number is invalid. the call to a GARS
agent for assistance.
agent.

Reports
Field Description
Issuer Domestic GARS connected the Call successfully

agent using the
issuer’s domestic
phone line.
International call to the issuer’s completed.
agent using the
issuer’s international
phone line.
Issuer Line Busy The issuer’s phone Stand-In processing
line was busy. generated the
authorization
response.
Issuer Ring, No The issuer’s agent did Stand-In processing
Answer not answer the call. generated the
authorization
response.
ITAC Agent GARS connected the Call successfully
call to an ITAC agent, completed.
who sent a telex to
the issuer.
ITAC Agent The issuer did not Stand-In processing
Transfer answer the ITAC generated the
agent’s telex message. authorization
response.
Merchant The acquiring agent GARS transferred
Suspicious indicated a merchant the call to a GARS
suspicious condition agent for assistance.
when entering Stand-
In information for
GARS.
Problem On GARS could not place Stand-In processing
Circuit the call. The phone generated the
number may be authorization
invalid. response.
SI Invalid Card Stand-In processing GARS ended the
Number returned a response of call.
“Invalid Card
Number.”

Reports
Field Description
Telephone Circuit After three attempts, Stand-In processing

Busy GARS was unable to generated the
place the call because authorization
the circuit was busy. response.
Stand-In Indicates that Stand-In processing occurred for the GARS
transaction. The fields on the Stand-In line provide the
information that the acquirer’s agent entered for Stand-In
processing.
Code 10 = N Confirmation that the acquiring agent did not indicate a
merchant suspicious condition.
MCC = The four-digit MCC that the acquiring agent entered to GARS.
TCC = The transaction category code that the acquiring agent entered
to GARS. Refer to the field codes and the corresponding TCCs
in the table below.
Field Codes that TCC Meaning
Appear on the Report
01 R Retail
02 T Mail Order/Telephone Order
03 C Cash
04 X Airline and other
Transportation
11 A Automobile/Vehicle Rental
12 F Restaurant
13 H Hotel/Motel
14 O Hospitalization/College
15 U Unique
16 P Payment Transaction
Exp Dte = The expiration date of the card that the acquiring agent
entered to GARS.
Amt = The transaction amount that the acquiring agent entered to
GARS.
Response = The authorization response that Stand-In generated to
complete the GARS call.

Reports
Field Description
processed via Stand-In, and calls that either the issuer or ITAC
processed.
following reasons:
• Abandon Call
• Invalid Card Number
• Invalid ICA
• Invalid Issuer
Total Issuers The total number of calls that GARS connected to the issuer or
to an ITAC agent.
Total Stand-In The total number of calls that GARS processed via Stand-In.
Approval and that Stand-In approved.
Approval that Stand-In did not approve.
Stand-In processed.
Total Telex to Telex The total number of calls that the acquirer entered via telex to
ITAC and that ITAC connected to the issuer via telex.
Total Telex to Phone The total number of calls that the acquirer entered via telex to
Total Phone to Telex The total number of GARS calls that the acquirer entered via
ITAC connected to the issuer via telex.
Total Phone to Phone The total number of GARS calls that the acquirer entered via
average includes the Exceptions category of GARS calls.)

Reports
GARS Monthly Acquirer Response Report (GR128010-AA)
Generated By Global Automated Referral Service
Purpose To provide the acquirer with an informational tool

to help monitor the handling of call referrals.
Description Identifies merchants by terminal location that have

received call referrals and displays the number of
responses by TCC and MCC. Calculates the
response rate and compares it to the MasterCard
target response rate.
Frequency Monthly



Reports
Report Sample
GR128010-AA MASTERCARD INTERNATIONAL RUN DATE: 12/27/98
GARS MONTHLY ACQUIRER RESPONSE REPORT PAGE: 1
MONTH ENDING 12/27/98
ACQUIRER 123456 MEMBER ABC FINANCIAL INSTITUTION
PROCESSOR 654321
TRAN MCC MERCHANT TERMINAL TOTAL TOTAL RESPONSE

TYPE REFERRALS RESPONSE PERCENTAGE
C 6010 12223333 4445555 145 35 24.13 %
C 6010 22333333 5556666 30 15 50.00 %
PROCESSOR TOTALS-------------------------------------
TOTAL CALL REFERRALS RECEIVED 175
TOTAL RESPONSES 50
CALL REFERRAL RESPONSE RATE 28.57 %
MASTERCARD RESPONSE RATE TARGET 60.00 %
PROCESSOR 666666

R 5999 334455 77888 10 2 20.00 %
R 7699 55566666 22333 25 5 20.00 %
TOTAL RESPONSES 7
GARS MONTHLY ACQUIRER RESPONSE REPORT PAGE: 2
ACQUIRER TOTALS--------------------------------------
TOTAL RESPONSES 57

Reports
Field Descriptions
Field Description
Acquirer The ICA number of the acquirer that receives this report.
Member Financial institution name of the acquirer that receives this
report.
Processor The ICA number of the processor associated with the particular
GARS call.
Tran Type The TCC for the transaction type.
(transaction type) Valid codes are:
F = Restaurant
H = Hotel/Motel and Cruise Ship Service
O = Hospitalization and Cruise Ship Service
R = Retail
U = Unique Transportation
X = Transportation
MCC The numerical representation of the type of business in which
(card acceptor the merchant is engaged. Refer to the Quick Reference Booklet
business for a list of codes.
code/merchant
category code)
Merchant The merchant identification code.
Terminal Identification number of the merchant terminal.
Total Referrals Total number of referrals processed during the billing month.
Total Responses Total number of responses completed during the billing
month.
Response Percentage Percentage of responses to referrals processed during the
billing month.
Processor Totals Total number of referrals, responses, and the response
percentage for the particular processor.

Reports
Field Description
Total Call Referrals Referrals processed during the billing month for all merchants
Received for this processor.
Total Responses GARS calls placed during the billing month for all merchants
for this processor.
Call Referral Response Percent of GARS calls placed to referrals processed during the
Rate billing month for all merchants for this processor.
MasterCard Response Referral response rate standard set by MasterCard.
Rate Target
Acquirer Totals Total number of referrals, responses, and the response

percentage for the particular acquirer.

Reports
GARS Monthly Acquirer Response Below Target Report (GR128010-BB)
GARS Monthly Acquirer Response Below Target Report

(GR128010-BB)
Purpose To provide the acquirer with an informational tool

to help monitor the response rates for call referrals.
The report compares the call referrals answered to
the target rate (60% of call referrals received by
each terminal).
Description Identifies merchants by terminal location that have

call referral response rates below the target rate
established by MasterCard.
Frequency Monthly



Reports
Report Sample
GARS MONTHLY ACQUIRER RESPONSE BELOW TARGET REPORT PAGE: 1
PROCESSOR 654321

TYPE REFERRALS RESPONSES PERCENTAGE
C 6010 12223333 4445555 145 35 24.13 %

C 6010 22333333 5556666 30 15 50.00 %
TOTAL RESPONSES 50
PROCESSOR 666666

R 5999 334455 77888 10 2 20.00 %
R 7699 55566666 22333 25 5 20.00 %
TOTAL RESPONSES 7
GARS MONTHLY ACQUIRER RESPONSE BELOW TARGET REPORT PAGE: 2
ACQUIRER TOTALS--------------------------------------
TOTAL RESPONSES 57

Reports
Field Descriptions
Field Description
Acquirer The ICA number of the acquirer that receives this
report.
Member Financial institution name of the acquirer that receives
this report.
Processor The ICA number of the processor associated with the
particular GARS call.
Tran Type The code for the transaction type. Valid codes are:
(transaction type)
F = Restaurant
H = Hotel/Motel and Cruise Ship Service
O = Hospitalization and College/School Expense
R = Retail
X = Transportation
MCC The numerical representation of the type of business in
(card acceptor business which the merchant is engaged. Refer to the Quick
code/merchant category Reference Booklet for a list of codes.
code)
Merchant The merchant identification code.
Terminal Identification number of the merchant terminal.
Total Referrals Total number of referrals processed during the billing
month.
Total Responses Total number of responses completed during the billing
month.
Response Percentage Percentage of responses to referrals processed during
the billing month.
Processor Totals Total number of referrals and responses below the
target rate, and the percentage of all below-target
responses to referrals for the particular processor.
Total Call Referrals Received Total referrals below the target rate that this processor
processed during the billing month for all merchants.

Reports
Field Description
Total Responses Total GARS calls placed during the billing month that
were below the target rate. Includes activity for all
merchants for this processor.
Call Referral Response Rate Percent of GARS calls placed to referrals processed
during the billing month for all merchants for this
processor. The percent is always less than the target
rate when it appears on this report.
MasterCard Response Rate Referral response rate standard set by MasterCard.
Target
Acquirer Totals Total number of referrals, responses, and the response

percentage that were below the target rate for the
particular acquirer.

Reports
GARS Monthly Issuer Call Referral Report (GR129010-AA)
Purpose For use by the issuer to monitor GARS

performance.
Description Summary totals of call referrals issued, calls

received, and calculation of issuer’s call response
rate.
Frequency Monthly



Reports
Report Sample

SUMMARY REPORTING PAGE 1
GARS MONTHLY ISSUER CALL REFERRAL REPORT TIME: 17:18:38
ISSUER 123456 MEMBER ABC FINANCIAL INSTITUTION
GARS VOICE / TELEX GARS / INTERNET
TOTAL CALLS 955 TOTAL TRANSACTIONS 483
TOTAL EXCEPTIONS 150 TOTAL EXCEPTIONS 12
TOTAL ISSUER 745 TOTAL ISSUER 448
TOTAL STAND-IN 60 TOTAL STAND-IN 32
STAND-IN PERCENTAGE 7.45 % STAND-IN PERCENTAGE 6.79 %
TOTAL STAND-IN APPROVALS 50 TOTAL STAND-IN APPROVALS 25
TOTAL STAND-IN NON-APPROVAL 10 TOTAL STAND-IN NON-APPROVAL 7
STAND-IN APPROVAL PERCENTAGE 83.33 % STAND-IN APPROVAL PERCENTAGE 78.13 %
TOTAL CALL REFERRALS ISSUED 2,245
RESPONSE PERCENTAGE 35.86 %

Reports
Field Descriptions
Field Description
Issuer The ICA number of the issuer that receives this report.
Member Financial institution name of the issuer that receives this report.
processed via Stand-In processing, and calls that either the
issuer or ITAC processed.
following reasons:
• Abandon Call
• Invalid Card Number
• Invalid ICA
• Invalid Issuer
Total Issuer The total number of calls that GARS connected to the issuer or
to an ITAC agent.
processing.
Stand-In Percentage The percentage of calls that GARS processed via Stand-In
processing (excluding “Total Exceptions”).
Approvals processing and that Stand-In approved.
Approval that Stand-In processing did not approve.
Stand-In processed.
Total Telex to Telex The total number of calls that the acquirer entered via telex to
ITAC and that ITAC processed.
Total Telex to Phone The total number of calls that the acquirer entered via telex to
Total Phone to Telex The total number of GARS calls that the acquirer entered via
ITAC processed.

Reports
Field Description
Total Phone to Phone The total number of GARS calls that the acquirer entered via
average includes the Exceptions category of GARS calls.)
Total Call Referrals The total number of call referral responses that the issuer
Issued issued and that the acquirer entered to GARS.
Response Percentage The percentage of calls that GARS processed (excluding “Total
Exceptions”) compared to the total call referrals issued.
Total Transactions The total number of transactions that GARS/Internet processed,
including exception transactions (see “Total Exceptions”
below), transactions that GARS/Internet processed via Stand-In
processing, and transactions that either the issuer or ITAC
processed.
Total Exceptions The total number of incomplete transactions that
GARS/Internet processed.
Total Issuer The total number of transactions that GARS/Internet connected
to the issuer or to an ITAC agent.
Total Stand-In The total number of transactions that GARS/Internet processed
via Stand-In.
Stand-In Percentages The percentage of transactions that GARS/Internet processed
via Stand-In (“Total Transactions” minus “Total Exceptions”).
Total Stand-In The total number of transactions that GARS/Internet processed
Approvals via Stand-In and that Stand-In approved.
Total Stand-In Non- The total number of transactions that GARS/Internet processed
Approvals via Stand-In that Stand-In did not approve.
Percentage Stand-In in relation to the total number of GARS/Internet
transactions that Stand-In processed.

Reports
Daily Activity Report (SI441010-A)
Title Daily Activity Report (SI441010-A)
Purpose To provide CAPS issuers with the information they

need to update their cardholder accounts and make
updates to the Stand-In system.
Description This report is generated by ICA number and

contains information pertaining to each
authorization request.
Frequency Daily
Distribution Methods Banknet bulk ID T829, MasterCard File Express,

paper (mail or fax), MasterCard eService

authorization contact established on the Principal
Member Questionnaire, or by calling the Customer
Operations Services team.

Reports
Report Sample
SI441010-A MASTERCARD INTERNATIONAL RUN DATE: 11/01/98

STAND-IN AUTHORIZATION PAGE: 1
DAILY ACTIVITY REPORT

*---------------------------------ISSUER-----------------------------* *-----------------ACQUIRER-----------------------*
TRAN PROCESS ACTIVITY TRANSACTION ADVICE FAIL REF STAND-IN

TYPE ICA CARDHOLDER NO. DATE CODE PROCESS AMOUNT DATE TIME REASON/DETAIL CODE NUMBER ICA RESPONSE POS TYPE
540000 0000000000000073 11/01/98 000000 999,999,999.99 11/01/98 04:48:54 STANDIN/APPROVE BTT005 1111 APRV 833333 999 R
540000 0000000000000669 11/01/98 000000 4.00 11/01/98 03:56:20 STANDIN/APPROVE QYMM66 1111 APRV 835000 999 R
REV 540000 0000000000000669 11/01/98 000000 4.00 11/01/98 03:56:20 STANDIN/APPROVE QYMM66 1111 APRV 835000 999 R
540000 0000000000000042 11/01/98 000000 2,416.00 11/01/98 03:48:06 MLIMIT1/APPROVE QYMGH2 1111 999 H
540000 0000000000000053 11/01/98 000000 .62 10/31/98 07:14:42 X-CODE /CAPTURE 02 HR14XS 1111 999 R
540000 0000000000000063 11/01/98 000000 1.87 10/31/98 07:32:16 X-CODE /APPROVE HR5CXS 1111 999 R
540000 0000000000000022 11/01/98 000000 4.00 10/31/98 15:01:17 X-CODE /REFER 06 QWTLH2 1111 999 R
540000 0000000000000088 11/01/98 000000 114.93 10/31/98 12:16:50 MLIMIT1/CAPTURE 02 BT0TR4 1111 999 R
540000 0000000000000078 11/01/98 000000 12.00 10/31/98 10:32:16 MLIMIT1/DECLINE 01 QS6MH2 1111 999 R
540000 0000000000000006 11/01/98 000000 9.05 10/31/98 10:00:56 STANDIN/DECLINE 01 LYGKXS 1111 DECLINE 999 R
540000 0000000000000007 11/01/98 003000 72.53 11/01/98 10:53:26 00 123456 1111 812345 999 R
CH AMT/CURR/RATE: 263.72/532/00000000 TRAN AMT/CURR/RATE: 246.60/528/1.664422 RATE DATE: 11/01
Field Descriptions
Issuer Information
Field Description
Tran Type If the transaction is a reversal of a prior authorization request,
(transaction type) this field will contain “REV.” Otherwise, this field is blank.
ICA ICA number of the member that issued the card for which
authorization was requested.
Cardholder No. Cardholder number contained in the original authorization
request received by Stand-In processing. See Data Element 2 in
the Customer Interface Specification manual.
Process Date Date the report was generated in MM/DD/YY (month/day/year)
format.
Activity Code Processing code of the authorization request. See Data Element
3 in the Customer Interface Specification manual.
Process Amount Transaction amount contained in the original authorization
request, as requested and entered by the acquirer. This amount
is listed in settlement currency (U.S. dollars).
Transaction Date Date (St. Louis time) that the authorization request was
processed by Stand-In in MM/DD/YY (month/day/year) format.
This is the transmission date of the authorization request. See
Data Element 7 in the Customer Interface Specification manual.

Reports
Field Description
Transaction Time Time (St. Louis time) that the authorization request was
processed by Stand-In in HH:MM:SS (hour: minute: second)
format. This is the transmission time of the authorization
request. See DE 7 (Transmission Date and Time) in the
Advice Reason/Detail The reason for the advice, followed by the advice detail. The
advice reason indicates whether Stand-In, X-Code, or Limit-1
processing at the MIP processed the transaction. The advice
detail gives the authorization response that Stand-In, X-Code, or
Limit-1 processing at the MIP returned on behalf of the CAPS
issuer
Fail Code Code indicating the reason why Stand-In, X-Code, or Limit-1
processing at the MIP did not approve the transaction.
01 Reject Decline
02 Reject Capture Card
03 Reject Issuer not participating
04 Reject Invalid PIN
05 Reject ATM
06 Reject Transaction limit test/Refer to card issuer
07 Reject VIP cumulative limit test
08 Reject Merchant suspicious indicator test
09 Reserved
10 Reserved
11 Reject Day 1/number of transactions
15 Reject Day 1/amount
19 Reject Extended Cash Disbursement cumulative
amount
20 Reject No procurement record
21 Reject VIP transaction limit test

Reports
Field Description
22 Reject No category record
23 Reject Not authorized
24 Reject Single cash disbursement limit test
25 Reject Monthly cash disbursement limit test
26 Reject Single limit test
27 Reject Monthly limit test
28 Reject Invalid CVC
Acquirer Information
Field Description
REF Number Banknet reference number.
ICA ICA number (Customer ID) of the acquirer that transmitted
the authorization request. See DE 32 (Acquiring Institution
ID Code) in the Customer Interface Specification manual.
Stand-In Authorization response that Stand-In processing sends to
Response the acquirer on behalf of the issuer. If the transaction is an
approval, a six-digit authorization approval code beginning
with “8” appears in this field. If X-Code or Limit-1
processing at the MIP generates the authorization response,
this field is blank.
POS Numeric country code of the acquirer sending the
(point of sale) authorization request. See the list of country codes in the
Quick Reference Booklet.
Type Transaction category code. See DE 48 in the Customer
Interface Specification manual. Valid values include:
F = Restaurant
H = Hotel/Motel and Cruise Ship Services
O = Hospitalization and College/School Expenses
R = Retail
T = Mail Order/Telephone Order

Reports
Field Description
X = Transportation
Z = Automated Teller Machine (ATM) Cash
Disbursement
AMCC Information
Participating issuers and acquirers see the following fields on the Daily Activity
Report. These fields appear as a second line of data for each transaction only
if currency conversion occurred for the transaction. When present, all of the
fields in the second line of data will be populated.
Field Description
CH Amt/Curr/Rate The transaction amount in issuer currency, followed by the
(Cardholder currency code of the issuer currency, followed by the
Amount/Currency/ conversion rate used to convert the amount in acquirer
Rate) currency into the amount in issuer currency. See DE 6, DE 10,
and DE 51 in the Customer Interface Specification manual.
Tran Amt/Curr/Rate The transaction amount in acquirer currency, followed by the
(Transaction currency code of the acquirer currency, followed by the
Amount/Currency/ conversion rate used to convert the amount in acquirer
Rate) currency into the amount in U.S. dollars (shown in the Process
Amount field). See DE 4 and DE 49 in the Customer Interface
Rate Date The month and day that the conversion rate is effective to
convert the transaction amount from the acquirer currency into
the currency of settlement (U.S. dollars). See DE 16 in the

11 Testing
This chapter contains information about authorization testing procedures for
online and CAPS members.
Member Testing.................................................................................................11-1
Who Must Test ............................................................................................11-1
Select Authorization Service Features ..................................................11-2
Establish a Member Test System ..........................................................11-2
ISO 8583–1987 Transaction Format ...............................................11-2
Response Codes..............................................................................11-3
Communications Interface..............................................................11-4
Prepare MasterCard Test Systems.........................................................11-4
Member Testing Fees .....................................................................11-4
Offline Testing via the MasterCard Credit Authorization
Simulator .........................................................................................11-5
Issuer Simulator Testing...........................................................11-5
Acquirer Simulator Testing.......................................................11-6
Scheduling Installation of the Simulator........................................11-6
For More Information .....................................................................11-7
Online Testing via the Member Test Facility.................................11-7
Scheduling Online Member Testing ..............................................11-7
How to Perform Testing .............................................................................11-8
How to Begin Production Processing ........................................................11-8
CAPS Member Testing.......................................................................................11-9

When to Test ...............................................................................................11-9
How to Perform Testing ........................................................................... 11-10
How to Begin Processing ......................................................................... 11-11

Testing
Member Testing
Member Testing
The following guidelines provide information for online members about:
• Who must test
• How to prepare for testing
• How to perform testing
• How to begin processing
Who Must Test

Members must complete testing under the following circumstances:
• If they are a new online MasterCard member (that is, they have a direct
connection to a MasterCard interface processor [MIP]) or CAPS issuer
• When they choose to begin using a new authorization feature or change
authorization software or hardware that interfaces with the Banknet
network
• When a MasterCard Global Operations Bulletin announces enhancements
to the Authorization Service and states that the enhancements require
testing
How to Prepare for Testing

New members must apply for membership and complete all required forms.
The Customer Operations Services team or regional representative helps
prospective new members fill out the forms. MasterCard does not permit
conversion to production until all related paperwork is completed, including
the Net Settlement Questionnaire and the Principal Member Questionnaire.
Note Members may contact Customer Operations Services for complete instructions
about applying for MasterCard membership and selecting authorization
services.

Testing
Member Testing
Select Authorization Service Features

New online members may implement any of the authorization-related
procedures and services listed below. Members must test all authorization
service features that they choose to implement. Customer Implementation
Services specialists provide suggested test scripts based on the specific set of
authorization services the member implements.
• Authorization processing (sending and receiving MasterCard authorization
transaction messages)
• Address Verification Service (AVS) (mandatory for U.S. region members
only)
• Authorization processing of Visa transactions or transactions involving
other card types, such as American Express, Diners Club, and JCB
• Card validation code (CVC) verification
• Receiving Authorization Request/0100 ATM transactions
• Check verification
• Balance inquiry
• Issuing of Debit MasterCard® cards
• Participation in AMCC
Establish a Member Test System

Members are encouraged to establish a separate member test system that
emulates the capabilities of their production processing systems. The member
test system must support the following:
• The MasterCard CIS International Organization for Standardization (ISO)
8583–1987 transaction format
• All mandatory online message formats (see Figure 11.1) that apply for the
member’s processing type (issuer or acquirer)
• All response codes in the authorization request response that the issuer
chooses to support
• A dedicated communications interface (outlined following the required
message formats)
ISO 8583–1987 Transaction Format
See the Customer Interface Specification manual for message formats, record
layouts, field definitions, and a description of the MasterCard application of the
ISO 8583–1987 message standard.

Testing
Member Testing
Figure 11.1—Online Message Formats that Members Must Test
Then the member must test for support of the

IF the member… following message types:
Acquires authorizations • 0100—Authorization Request
(acquirer functionality) • 0110—Authorization Request Response
Authorizes transactions • 0100—Authorization Request
(issuer functionality) • 0110—Authorization Request Response
• 0120—Authorization Advice
• 0130—Authorization Advice Response
• 0190—Authorization Negative Acknowledgement
• 0400—Acquirer Reversal Request (full reversal)
• 0410—Acquirer Reversal Request Response (full
reversal)
• 0420—Acquirer Reversal Advice
• 0430—Acquirer Reversal Advice Response
• 0620—Administrative Advice
• 0630—Administrative Advice Response
• 0800—Network Management Request
• 0810—Network Management Request Response
• 0820—Network Management Advice
Note MasterCard recommends that acquirers and issuers test the usage of Acquirer
Reversal Request/0400 and Acquirer Reversal Request Response/0410 messages.
Response Codes
Issuers can choose to support any of the optional response codes outlined in
the Customer Interface Specification manual. Issuers must test for mandatory
codes. Acquirers must test for receipt of all codes.

Testing
Member Testing
Communications Interface
Members must support a dedicated communications interface for testing.

Members should choose TCP/IP as this is the preferred communications
protocol. New members can only implement TCP/IP. Legacy protocols will
no longer be implemented for new members, and existing members must
migrate to TCP/IP by July 2006. Refer to the Data Communications Manual
for further details about the TCP/IP protocol.
Prepare MasterCard Test Systems

New online members that have established a direct connection to a MIP
should initially test their authorization system offline by installing the
MasterCard Credit Authorization Simulator. Members coordinate simulator
testing with Customer Implementation Services. Using the MasterCard Credit
Authorization Simulator, online members can test authorization system features
independently in a stand-alone test environment.
Following testing with the simulator, online members send their test results to
MasterCard. Members may then schedule online testing with the Member Test
Facility. Customer Implementation Services also coordinates online testing
with the Member Test Facility.
Member Testing Fees
The following table provides pricing and support fees for the MasterCard
Credit Authorization Simulator software package.
Simulator Testing Fee

Initial Purchase of MasterCard Credit Authorization USD 9,500
Simulator
Monthly maintenance per simulator USD 180
Additional simulator support per hour USD 300
On-site support per day USD 1,500
Travel and accommodation expenses for on-site support Actual cost incurred
The following table provides pricing and support fees for online testing and
exception online testing. Examples of exception online testing include:
• Testing outside of published available test hours
• Test requests received less than five days before the test date
• Beginning online testing when inaccurate or incomplete simulator trace
files have been submitted and have not been validated

Testing
Member Testing
Member Test Facility Testing Fee

Online member testing per hour USD 300
Exception online member testing per hour USD 500
Offline Testing via the MasterCard Credit Authorization Simulator
The MasterCard Credit Authorization Simulator is an authorization application

that runs under Microsoft® Windows NT and Windows 2000. After the
member has established a host test system, the simulator is installed on a PC
connected to the member host. The resulting interface simulates the actual
interface between the member host and the MIP.
The simulator provides all the testing capabilities that are available with online
testing. Testing with the simulator can minimize the time required to perform
online testing. With the simulator, members can:
• Conduct extensive preparations for online testing in an offline environment
• Replicate the tests and procedures for scheduled online testing
The simulator provides an emulation tool for complete end-to-end application

testing for both release-related changes and internal testing purposes. Using
the simulator, members can test internally-developed systems and vendor-
purchased systems.
MasterCard updates the simulator two times a year, to coincide with the
Banknet releases. Generally, the most current version of the simulator is
available three or four weeks before MasterCard makes online testing with the
Member Test Facility available to members for each release.
Issuer Simulator Testing
The simulator allows issuers to create messages that their host systems would
expect to receive from MasterCard for processing. Examples of internal testing
that issuers can perform with the simulator are:
• Verification of fraud parameters

• Messaging-error testing
• Billing cycle or new card program processing
• Error reproduction for developer analysis
During issuer testing, the simulator sends CIS messages to the issuer host
system.

Testing
Member Testing
Figure 11.2—Issuer Host System Testing
Authorization Request/0100
Authorization Request Response/0110

Host Simulator
as Issuer
Acquirer Simulator Testing
For acquirers, the simulator supports testing all transactions that need to be
routed to MasterCard systems. Acquirers can test all point-of-interaction (POI)
locations and Internet-based transaction processing systems.
During acquirer testing, the simulator responds to messages it receives from

the acquirer host. The test simulator supports all CIS message types.
Figure 11.3—Acquirer Host System Testing
Authorization Request/0100
Authorization Request Response/0110

Host Simulator
as Acquirer
Scheduling Installation of the Simulator
New members should contact Customer Implementation Services to request

the test simulator and schedule installation of the MasterCard Credit
Authorization Simulator as soon as they become MasterCard members.
MasterCard assigns a Customer Implementation Services specialist to members

who are preparing for offline testing. Members should follow these general
steps to install and test with the MasterCard Credit Authorization Simulator:
Step Action
1. The member establishes communications connectivity between the simulator
and the host environment.
2. The Customer Implementation Services specialist selects the authorization test
cases that are appropriate to the member’s processing system. The member
modifies the test scripts provided with the simulator to include member-
specific data.

Testing
Member Testing
Step Action
3. During a test session, the simulator and the member host system exchange
authorization messages. Trace files record the results of the test session for
analysis. Members view the trace files to determine any errors that occur
during authorization message processing.
4. When testing is completed, the member forwards the trace file to the assigned
Customer Implementation Services specialist to confirm test results.
For more information about the MasterCard Credit Authorization Simulator

software, please contact:
Simulator Support
Fax: 1-636-722-2797
E-mail: credit.sim@mastercard.com
Online Testing via the Member Test Facility
After members have successfully completed testing of their host system with
the offline simulator, they may schedule online testing with the Member Test
Facility. In most cases, MasterCard will assign the same Customer
Implementation Services specialist to support both offline and online testing by
a new member.
Scheduling Online Member Testing
MasterCard schedules members for online testing sessions of one or two hours
in length. Members must schedule online testing with Customer
Implementation Services at least 10 business days before testing. If members
need MasterCard to change the MIP before testing, members must notify
Customer Implementation Services at least 15 days before testing. In addition,
if members must cancel scheduled testing, they must notify Customer
Implementation Services more than five days before the scheduled test date to
avoid being charged for testing.
Outside the U.S. region, members can schedule online testing by contacting
their regional representative.

Testing
Member Testing
How to Perform Testing

On the scheduled online test date, members send and receive the appropriate
CIS message types listed in Figure 11.1. For example, issuers sign on with the
Network Management Request/0800 message, and then receive Authorization
Request/0100 messages from MasterCard. Acquirers send Authorization
Request/0100 messages to MasterCard, and receive Authorization Request
Response/0110 messages from MasterCard. The testing session will include all
CIS message types appropriate to the member’s processing system.
If testing reveals any errors, the Customer Implementation Services specialist

consults with the member to correct the errors. Members can schedule
additional testing sessions to test the corrections to their host systems.
How to Begin Production Processing

After the member has successfully completed online testing, the Customer
Implementation Services specialist schedules production implementation of the
member’s Authorization System interface.
Note The member must inform the Customer Implementation Services specialist of
the actual cut-over production date (or postponement of a previously scheduled
cut-over date), at least ten business days before the actual date.
The member should have procedures to support a backout plan in the event
of irrecoverable problems experienced during production implementation.
This backout plan should include the following:
• Ability to switch back to previous processing environment or alternate
processing capability
• 24-hour availability of the member’s operations staff
MasterCard closely monitors activity during and after implementation, actively

reviewing logs to verify accurate processing of authorizations.
After production implementation, MasterCard encourages members to keep the

member test system available to support testing of any future application or
interface changes.
Online acquirers and all CAPS members may begin sending messages
immediately after conversion. Online issuers must initiate online processing
with a sign-in (Network Management Request/0800) message. MasterCard
responds to the sign-in request by directing authorization traffic to the issuer.

Testing
CAPS Member Testing
CAPS Member Testing

The following testing directions for CAPS members include information on:
• When to test
• How to prepare for testing
• How to perform testing
• How to begin processing
When to Test
The member must complete testing for CAPS whenever MasterCard
implements enhancements to CAPS or the Daily Activity Report and notifies
the member that the enhancements require testing.
How to Prepare for Testing

Before beginning testing, the member should do the following:
• Contact a Customer Implementation Services specialist at least two weeks
before testing begins to arrange a testing schedule. Use the contact
information shown in the Using this Manual chapter.
• Complete the following preparations for testing:
− Install MasterCard OnLine® and the MasterCard File Express software,
which will permit the member to send and receive files.
− Provide the Customer Implementation Services specialist with the
names and user IDs of the personnel who will be using MasterCard File
Express.
The Customer Implementation Services specialist will establish the MasterCard

File Express applications and coordinate setting up the necessary databases
and security functions with the names and user IDs that the member provides.

Testing
CAPS Member Testing
How to Perform Testing

On the testing date arranged with the Customer Implementation Services
specialist, the member follows these steps:
Step Action
1. Create a Sequential Account File, referring to the record layouts in chapter 8
for field attributes and valid values. Set the Last Update Info field to zeros for
this initial transmission, and include all of the accounts in your cardholder
base in the file. This will build your Positive File.
Make sure that the file you create contains all of the cards in your cardholder
base because after implementation of CAPS, MasterCard will set Stand-In limits
to zeros, and CAPS processing will approve only the cards in the CAPS file.
2. Start MasterCard File Express. When you sign on, select region C (for
certification) not region P (for production). Send the Sequential Account File
using application ID RB28. At midnight of the day you send the Sequential
Account File, Stand-In processing will process the file.
3. Via facsimile, send to your Customer Implementation Services specialist a list
of test account numbers and authorization amounts (based on the account
numbers that you sent in step 1).
MasterCard uses this list to create authorization requests and run them against
your positive file of accounts (the accounts that you sent in step 1.) Be sure
that some of the test authorization amounts you send would cause the
accounts to go over their credit limit, so that some of the authorization
requests receive a “Decline” response.
As the authorization requests are run, the credit limits on your positive file
also are updated accordingly.
4. Create an updated Sequential Account File. Refer to the record layout of this
file in chapter 8.
• Add five accounts to the file.
• Delete five accounts from the file.
• Change five accounts in the file.
5. Send another updated Sequential Account File to MasterCard and making the
following modifications:
• Delete two accounts from the file.
• Change two accounts in the file.
6. If you request to receive a Daily Activity Report, your Customer
Implementation Services specialist will create this and send it to you.

Testing
CAPS Member Testing
How to Begin Processing

The date of production cutover must be at least six business days after
successful completion of testing. (This allows MasterCard time to update all
master files and submit the required paperwork to set up a new member.)
The Customer Implementation Services specialist will coordinate with each
member to implement the cutover to production as needed.

12 Smart Card Transactions
This chapter addresses acquirer and issuer responsibilities relating to the ability
of smart cards to perform authorizations offline as well as online. In addition,
this chapter provides basic information about the various types of authorization
processing for transactions read from the chip on a MasterCard®.
Overview ...........................................................................................................12-1
Acquirer Responsibilities...................................................................................12-1
Requirements for Merchants and Service Providers ..................................12-1
Transaction Processing Categories .............................................................12-2
Full Grade Processing...........................................................................12-2
Cardholder-controlled Remote Devices .....................................................12-2
Hybrid Terminal Requirements ..................................................................12-3
Multi-application Capabilities of Hybrid Terminals.............................12-5
Fallback Procedures ....................................................................................12-5
Cardholder-activated Terminals............................................................12-6
Terminal Cardholder Verification Method Policy ......................................12-6
Hybrid Terminal Risk Management............................................................12-6
Terminal Floor Limit Check..................................................................12-7
Velocity Check ......................................................................................12-7
Acquirer Processing Requirements.............................................................12-8
Issuer Responsibilities .......................................................................................12-8

Smart Card Requirements ...........................................................................12-9
Minimum Personalization Requirements....................................................12-9
Card Risk Management .............................................................................12-10
Velocity Check .......................................................................................... 12-10
Cumulative Amount Check....................................................................... 12-10
Issuer Processing Requirements ............................................................... 12-10
Cardholder Authentication Method ................................................................12-11

CAM Policy ................................................................................................12-11
Offline SDA CAM ......................................................................................12-12
Offline DDA CAM .....................................................................................12-12
Online CAM and Online Mutual Authentication...................................... 12-13

Smart Card Transactions
Cardholder Verification Method .....................................................................12-13

CVM Policy ................................................................................................12-14
Block/Unblock ..........................................................................................12-14
PIN Block ..................................................................................................12-14

Overview
Overview
Members are not required to support smart card transactions. However,
members must comply with all relevant rules if they choose to do any of the
following:
• Acquire smart card transactions
• Issue smart cards
The acquirer or its designated agent must:
• Properly encode the Authorization Request/0100 message, including
identifying the transaction as a smart card–read in DE 22 (Point-of-Service
[POS] Entry Mode). If applicable, send the smart card data in DE 55
(Integrated Circuit Card [ICC] System-related Data).
• Develop and support member service procedures for the chip-based
application and products. The service procedures must comply with
MasterCard standards.
• For acquirers processing chip transactions—support receipt of DE 48, Apr
subelement 74, which contains information when there is a chip 2006
cryptogram issue.
Requirements for Merchants and Service Providers

Acquirers are responsible for:
• Recruiting merchants and service providers into the chip-based programs
• The sales and service support provided by service providers. This support
includes, but is not limited to:
− Risk management
− Terminal deployment
− Display of the MasterCard acceptance mark
• All transaction collection and processing operations, including but not
limited to exception item processing.
• Settlement with service providers or merchants.
• Ensuring that all terminal, service provider, or merchant requirements are
met.

Apr
Note Depending on agreed card/terminal CVM method, acquirers that support chip 2006
transaction processing may send credit cash advance transactions using chip
cards with online PIN for added security.
Transaction Processing Categories

Apr
Effective 1 January 2006, all new acquirers that choose to process smart card 2006
transactions must support Full Grade Processing for smart card transactions.
Acquirers will send DE 55 (Integrated Circuit Card [ICC] System-Related Data)
in the related network messages.
Full Grade Processing

Full Grade authorization requests have the following characteristics:
• They are captured at type-approved terminals that meet MasterCard
specifications.
• They provide the data element that identifies the authorization request as
chip-read (DE 22).
• They provide all of the data elements that are necessary to the transaction,
including the data element cryptograms that contain chip-related
information (DE 23 and DE 55).
Technical requirements for Full Grade processing are defined in the M/Chip—
Functional Architecture for Debit and Credit manual.
Cardholder-controlled Remote Devices

MasterCard does not require that cardholder-controlled remote devices that
accept MasterCard-branded smart card payment applications be hybrid
terminals. However, these devices must meet appropriate MasterCard type-
approval requirements.

Hybrid Terminal Requirements

Acquirers that want to process both smart card transactions and magnetic
stripe transactions must use hybrid terminals. All point-of-interaction (POI)
hybrid terminals must conform to the following specifications and rules.
• Hybrid terminals must support the following functions as required by these
rules.
− Fallback Procedures
− Hybrid Terminal Risk Management
− Cardholder Authentication Method (CAM) Policy
− Cardholder Verification Method (CVM) Policy
• Hybrid terminals that read and process EMV-compliant payment
applications must read and process EMV-compliant MasterCard payment
applications.
• Hybrid terminals must support offline dynamic data authentication (DDA),
online mutual authentication (OMA), and script processing.
• Hybrid terminals must support and perform the Validity Dates Check. The
Validity Dates Check reduces the offline risk relative to not yet effective or
expired applications. The hybrid terminal must check the transaction date
against the Application Effective Date and the Application Expiration Date,
which are personalized on the smart card. If the Validity Dates Check fails,
the hybrid terminal can either force the transaction online to the issuer or
decline the transaction.
• Hybrid terminals must support previous versions of MasterCard branded
payment applications residing on smart cards.
• Hybrid terminals must be able to support separate floor limits for:
− A chip floor limit
− A magnetic stripe floor limit
− A floor limit for transactions that fall back to magnetic stripe
Terminals that support both debit and credit must have separate limits for
each.

• Hybrid terminal floor limits must equal the default values that MasterCard
provides. When the hybrid terminal determines whether to perform a
transaction online or offline, it must compare the maximum transaction
amount of the smart card with the terminal floor limit.
IF… THEN…
The floor limit of the hybrid terminal is The transaction may occur offline.
lower
The maximum transaction amount of the The transaction must occur online.
smart card is lower
• Hybrid terminals must request a transaction certificate for all approved

smart card transactions. Hybrid terminals must allow the merchant to enter
a decline advice, so that the smart card can generate an application
authentication cryptogram (AAC).
• Hybrid terminals must try to perform the transaction using the chip first,
when a smart card is presented.
• Hybrid terminals must comply with the EMV specifications and be type
approved by MasterCard according to the process described in the M/Chip
Customer Implementation Guide.
• Hybrid terminals must be able to read all of the mandatory parameters for
card personalization and to apply the processing restrictions that the EMV
specifications describe.
• Hybrid terminals must identify in the authorization messages transactions
that originate from EMV-compliant terminals when the hybrid terminals are
activated to read and process smart card payment applications.
• Hybrid terminals must identify smart card transactions in the authorization
message as smart card–read.
• Hybrid terminals must be capable of performing online and offline
transactions, except that self-service terminals or CAT Level 3 and CAT
Level 4 terminals may be offline capable only.
• Hybrid terminals must provide the card acceptor business code/merchant
category code (MCC) and transaction category code (TCC) to the smart
card.
• Hybrid terminals must meet security guidelines defined by MasterCard.
Refer to the Cryptographic Modules Manual to review the security
guidelines for hybrid terminals.
To get access to the Cryptographic Modules Manual, contact
chip_help@mastercard.com.

Multi-application Capabilities of Hybrid Terminals

All hybrid terminals must support the full use of the multi-application
capabilities of smart cards as follows:
• Hybrid terminals must contain a complete list of all Application Identifiers
for all of the programs that the terminals accept.
• Hybrid terminals must receive and keep updates of Application Identifiers
for all of the programs that the terminals accept.
• Hybrid terminals must try to match all of the Application Identifiers
contained in the terminal with the Application Identifiers on any EMV
compliant smart card that cardholders use.
• Hybrid terminals must display to cardholders all of the accepted
Application Labels or Preferred Names and the transaction amount.
Multiple matching applications must be displayed in the issuer’s priority
sequence as indicated on the chip of the smart card.
• Hybrid terminals must allow cardholders to select which application to use,
when multiple matching applications exist.
• Hybrid terminals must allow cardholders to approve or cancel transactions
before dispensing goods or performing services.
MasterCard recommends that messages on the screen be available in both

English and the local language, particularly at unattended terminals.
Fallback Procedures
Members use fallback procedures when a smart card is present at a hybrid
terminal and the merchant processes the transaction by using the magnetic
stripe or by manually entering the PAN because the merchant cannot process
the transaction using smart card technology.
If fallback procedures produce a transaction authorization, the acquirer must

indicate the fallback condition in the authorization request with a value of 79
or 80 in DE 22 (POS Entry Mode).
Acquirers must send transactions resulting from fallback procedures online to

the issuer for authorization even if the amount is less than the terminal floor
limit. (Because MasterCard rules prohibit CAT Level 3 and CAT Level 4
terminals from performing fallback procedures, MasterCard does not require
these terminals to send transactions resulting from fallback procedures to the
issuers.)

Depending on the rules of the region in which the CAT exists, following are
MasterCard’s rules about performing fallback procedures from hybrid CATs.
CAT Level Terminal Type Allowance of Fallback Procedures

1 Automated Dispensing Machine May perform fallback procedures
(unless prohibited by the region)
2 Self-service Terminal May perform fallback procedures
(unless prohibited by the region)
3 Limited Amount Terminal Prohibited from performing fallback
procedures
4 In-flight Commerce Terminal Prohibited from performing fallback
procedures
Terminal Cardholder Verification Method Policy

The following table shows the requirements for cardholder verification method
(CVM) for various types of terminals.
Type of Terminal Required CVM Optional CVM

Attended hybrid POI • Signature verification for all
transactions
• Alphanumeric PIN pad that
complies with EMV specifications
CAT Level 1 Online PIN for all transactions Offline PIN (at the
acquirer’s option)
CAT Level 2 and 3 None
CAT Level 4 Offline PIN for transactions
Hybrid Terminal Risk Management

Terminal Risk Management is a set of calculations performed by the terminal
during offline transactions to help protect acquirers, issuers, and the system
from fraud. All hybrid terminals must support the following Terminal Risk
Management functions:
• Terminal Floor Limit Check
• Velocity Checking

Additional Terminal Risk Management functions that may be supported, at the

acquirer’s option, include but are not limited to Random Transaction Selection
(“1 in N”).
If, as a result of Terminal Risk Management functions, the transaction must be

authorized online, the terminal must use DE 55 in the authorization message to
identify the reason and condition that forced the transaction online.
Terminal Floor Limit Check

The purpose of the Terminal Floor Limit Check is to determine, for transactions
where the floor limit is greater than zero, whether the transaction must be
processed online.
All hybrid terminals that are capable of online processing must perform the
Terminal Floor Limit Check. Transactions that are above the terminal floor
limit must be sent online to the issuer for authorization.
If an online authorization cannot be obtained, then the chip must do one of

the following, according to the issuer’s personalization parameters, which are
programmed in the chip:
• Decline the transaction
• Authorize the transaction offline
Terminals that operate offline only (CAT Level 3 and CAT Level 4 terminals)
are not required to perform a Terminal Floor Limit Check.
Velocity Check
The Velocity Check verifies that the total number of consecutive, offline,
approved transactions that the smart card performs does not exceed a
maximum number. The Velocity Check reduces the offline risk where the
floor limit is greater than zero, because it requires online authorization of
transactions at pre-set intervals, as required by MasterCard.
All online capable hybrid terminals must perform the Velocity Check. If an
online authorization can not be obtained, then the chip must do one of the
following, according to the issuer’s personalization parameters, which are
programmed in the chip:
• Decline the transaction
• Authorize the transaction offline
Terminals that operate offline only (CAT Level 3 and CAT Level 4 terminals)
are not required to perform the Velocity Check.

Acquirer Processing Requirements

The acquirer of smart card transactions must:
• Adapt its processing to map smart card data elements between the card
and the terminal, the acquirer’s host system, and MasterCard networks’
messages.
• Identify smart card transactions in authorization and clearing messages.
The issuer or its designated agent must:
• Identify its MasterCard products and applications in accordance with the
Application Identifier list that MasterCard provides
• Develop and support member service procedures for chip-based
applications and products, in compliance with MasterCard standards
• Maintain inventory and establish audit and control procedures for smart
cards. Issuers must store smart cards in a safe and secure manner
• Support re-issuance of its cards for:
− Expired card replacement
− Defective cards
− Lost cards
− Stolen cards
− Non-receipt of issue cards (NRI). (The cardholder never received the
newly issued card.)
• Meet all smart card requirements.
• Conduct chip-based applications, products, and programs in a safe, secure,
and sound manner.
• Maintain records of all applications and operating systems it provides on
individual smart cards.
• For issuers processing chip transactions—accept and process credit cash Apr
advance transactions using chip cards with online PIN. 2006
The issuer is responsible to MasterCard for the content and performance of all
chip-based applications and programs that it or its designated agent issues on
its behalf.

Smart Card Requirements

All smart cards must:
• Be able to generate responses to the terminal as specified in the EMV
specifications.
• Support offline static data authentication (SDA) card authentication method
(CAM).
• Support both signature and online PIN as the cardholder verification
method (CVM). ATMs require online PIN as the CVM.
• Include in the discretionary data on the magnetic stripe data a service code
indicating that the smart card is “chip-capable” (2xx is the code for
international usage, and 6xx is the code for domestic-only usage).
At the issuer’s option, smart cards also may:

• Support offline dynamic data authentication (DDA) CAM.
• Support offline PIN as the CVM. Issuers also may choose to require PIN
entry for certain transactions.
• Support online mutual authentication (OMA).
• Perform card risk management functions, including maximum transaction
amount and cumulative amount.
• Support script processing.
• Contain additional personalization parameters not in conflict with any
provision of MasterCard rules.
• Contain multiple applications and products on the chip, as allowed by
MasterCard rules. Refer to the Bylaws and Rules manual for more
information about MasterCard rules governing smart card applications.
Minimum Personalization Requirements

Personalization elements for all MasterCard branded smart cards must conform
to the requirements set forth in M/Chip—Functional Architecture for Debit and
Credit manual.

Card Risk Management

Issuers may design and implement their own card risk management features to
be personalized in their smart cards. These features may include but are not
limited to:
• Checking that the number of consecutive offline transactions do not
exceed the issuer defined Lower or Upper Consecutive Offline Limits, as
appropriate
• Assessment of potential risk associated with each MCC
• Assessment of potential risk associated with each TCC
As a result of issuer-defined card risk management, a transaction may be:

• Authorized offline
• Routed to the issuer for online authorization
• Declined
Velocity Check
The Velocity Check is an optional check for issuers. It verifies that the number
of consecutive offline transactions does not exceed an issuer defined
maximum number of offline transactions. When the smart card’s internal
counter value is equal to or greater than the Upper Consecutive Offline Limit,
the chip will go online to the issuer for authorization.
Cumulative Amount Check

Cumulative Amount Check is an optional check for issuers. It compares the
cumulative transaction value against the maximum cumulative amount, as
defined by the issuer. The Cumulative Amount Check only applies to same
currency accommodations.
Issuer Processing Requirements

The issuer of smart cards must adapt its authorization, clearing, and settlement
processing to support new smart card data elements, received in Authorization
System and MasterCard® Debit Switch messages.

Cardholder Authentication Method

Cardholder authentication method (CAM) is a method to reduce risk by
determining if a card is genuine. CAM helps to control counterfeit and to
decrease the risk of fraud occurring after a card is lost or stolen but before it is
reported as lost or stolen or counterfeit fraud below the floor limits.
CAM Policy
MasterCard requires all issuers and acquirers to support offline static data
authentication (SDA) CAM for all credit transactions except at ATMs.
With the exception of 100 percent online environments, MasterCard also

requires all acquirers to support offline dynamic data authentication (DDA)
CAM for some credit point-of-interaction (POI) transactions.
Members must follow the requirements described in MasterCard chip

specifications to authenticate smart card transactions.
With the exception of 100 percent online terminals, all hybrid terminals must
support both offline SDA CAM and offline DDA CAM. For 100 percent online
terminals, support of offline SDA CAM and offline DDA CAM is at the
acquirer’s option. If the 100 percent online terminal supports offline CAM, it
must support both offline SDA CAM and offline DDA CAM.
The following table shows the processing instructions for various scenarios.
IF… THEN…
Offline SDA CAM or offline DDA CAM The transaction must go online to the issuer
fails for authorization.
The issuer must process the transaction via
dynamic online CAM in a full grade
environment.
If online authorization is not obtained, the
transaction must be declined by the acquirer.
Offline SDA CAM or offline DDA CAM The transaction must go online to the issuer
is not performed in a 100% online for authorization.
environment The issuer must process the transaction via
dynamic online CAM in a full grade
environment.
If online authorization is not obtained, the
transaction must be declined by the acquirer.

IF… THEN…
Online processing is requested but is The merchant must not capture the card
not available. unless either the issuer or the smart card
instructs the merchant to capture the card
Offline CAM fails at a CAT Level 3 or 4 The transaction must be declined.
terminal
Offline SDA CAM

SDA requires the creation of a fixed cryptographic signature over the
application data to be protected before the issuer personalizes the smart card.
For example, the signature should be over the PAN or the expiration date.
Then, the issuer personalizes the smart card with the cryptographic signature
and the protected application data.
Using SDA, the smart card is passive and the terminal is active. During a
transaction, the terminal verifies this cryptographic signature by doing all of
the following:
• Reading the protected application data from the card
• Calculating a new cryptographic signature
• Comparing the new cryptographic signature with the cryptographic
signature personalized on the smart card
Offline DDA CAM

Like SDA, DDA requires the creation of a fixed cryptographic signature over
the application data to be protected before the issuer personalizes the smart
card. Then, the issuer personalizes the smart card with the cryptographic
signature and the protected application data.
Using DDA, the smart card and the hybrid terminal are both active, and must
be capable of executing a public key algorithm. During a transaction, DDA
requires the smart card to create a new, different (dynamic) cryptographic
response to a challenge from the hybrid terminal. This response is a card
encryption (using an application-level or card-level secret key) of the protected
application data (for example, PAN, expiration date), and is a pre-personalized
digital signature and a random number from the terminal.

Cardholder Verification Method
The terminal authenticates the card by validating the encryption of the

terminal-generated random number. The terminal verifies the pre-personalized
cryptographic signature by doing all of the following:
• Reading the protected application data from the smart card
• Calculating a new cryptographic signature
• Comparing the new cryptographic signature with the cryptographic
signature decrypted from the card-generated dynamic cryptogram
Online CAM and Online Mutual Authentication

Using online CAM, the chip computes a new digital signature for each
transaction, and the issuer verifies the signature online, using the same secret
key. While online, the chip also can check the authenticity of the issuer.
Online mutual authentication (OMA) is an optional process for issuers. OMA

is the process by which the issuer and the chip authenticate each other. OMA
can occur only when an online authorization request to the issuer is initiated.
OMA can only be performed at a terminal supported by a Full Grade network.
All transactions completed from cardholder-controlled remote devices must use

online CAM and OMA. Acquirers assume the risk if they complete a
transaction using cardholder-controlled devices without online authorization.
The smart card must generate an authorization request cryptogram (ARQC) for
all online transactions.

Cardholder verification methods (CVM) check that the user of the card is the
genuine cardholder. This process reduces the risk associated with the
following situations:
• Lost cards
• Stolen cards
• Non-receipt of issue (NRI). (The cardholder never received the newly
issued card.)

CVM Policy
Smart cards must support signature for transactions and must accept signature
as the CVM for all transactions at attended terminals. The issuer may choose
to support offline PIN in addition to signature. Online PIN is the required
CVM for all ATM transactions.
All PINs must be between 4 and 12 digits. MasterCard strongly recommends

that issuers provide cardholders with the ability to select their own PINs in a
secure environment.
The PIN validation value (PVV) on the magnetic stripe must be consistent with
and correspond to the PVV on the chip.
Block/Unblock
The issuer may block one or more applications on a smart card during any
online dialogue or transaction. Reasons for blocking applications include but
are not limited to:
• The application ID number appears on the Emergency BIN List
• CAM failure
• CVM failure
PIN Block
If a PIN is required to conduct a payment transaction, the terminal will prompt
the cardholder to enter a PIN. It will allow the cardholder to attempt to enter
the correct PIN several times, as specified by the issuer. If the cardholder does
not successfully enter the correct PIN within the PIN Try Limit parameter that
the issuer specifies on the smart card, then the PIN is blocked and no further
PIN attempts are permitted. The transaction proceeds in accordance with the
Issuer Action Codes and Terminal Action Codes set by the issuer and acquirer,
respectively. As a result, the transaction may be declined offline or forced
online to the issuer.
An acquirer may choose to set a lower PIN Try Limit at its terminals than
issuers specify on their smart cards. If an acquirer chooses to set a PIN Try
Limit, it must do so according to MasterCard rules.

A Non-MasterCard Authorization Message Flow
This chapter explains MasterCard support of non-MasterCard transactions and
illustrates the flows of authorization messages for those types of transactions.
Authorization Flows for Visa Cards ................................................................... A-1

Flows for a Peer-to-Peer Visa Issuer—Transaction Does Not Qualify
for CPS.......................................................................................................... A-1
Primary Path—Direct to the Issuer ....................................................... A-1
Secondary Path—Routing through the Visa Network .......................... A-2
Tertiary Path—X-Code Processing ........................................................ A-3
Flows for a Peer-to-Peer Visa Issuer—Transaction Qualifies for CPS ....... A-4
Primary Path— Routing through the Visa Network ............................. A-4
Secondary Path—MasterCard Stand-In Processing............................... A-5
Tertiary Path—MasterCard X-Code Processing..................................... A-6
Flows for a Non–Peer-to-Peer Visa Issuer .................................................. A-7
Primary Path—Routing through the Visa Network .............................. A-7
Secondary Path—MasterCard Stand-In Processing............................... A-8
Tertiary Path—MasterCard X-Code Processing..................................... A-9
Authorization Flows for Non-MasterCard, Non-Visa Cards ............................ A-10

Primary Path—Direct to Designated Endpoint ......................................... A-10
Secondary Path—X-Code Processing ........................................................ A-11

Authorization System Manual • April 2006 A-i
Non-MasterCard Authorization Message Flow
Authorization Flows for Visa Cards

When an acquirer enters a Visa transaction into the MasterCard authorization
network, MasterCard provides one or more of the following paths to ensure
proper authorization:
• Direct to the Visa issuer (only when the Visa issuer has a direct connection
to the Banknet® telecommunications network [“peer-to-peer”] and the
transaction does not qualify for the Visa Custom Payment Service [CPS]
program. 1)
• Routing to the Visa issuer through the Visa network
• Routing to MasterCard Stand-In processing
• Routing to MasterCard X-Code processing
The paths described as primary on the following pages are always the first
path attempted. Secondary paths are followed only if the primary path is
unavailable. Tertiary paths are followed only if the first two paths are
unavailable.
Flows for a Peer-to-Peer Visa Issuer—Transaction Does Not

Qualify for CPS
If the transaction is for a peer-to-peer Visa issuer and does not qualify for the
CPS program, the transaction follows one of the flows depicted in Figure A.1,
Figure A.2, and Figure A.3. To receive Visa transactions via this direct
connection, the Visa issuer must be set up for peer-to-peer processing by a
MasterCard Customer and Technology Support representative and must
complete testing. Contact a MasterCard Customer Technology and Operations
Services representative to arrange for this service. Figure A.7, Figure A.8, and
Figure A.9 address transaction flows to Visa issuers that have not been set up
as peer-to-peer.
Primary Path—Direct to the Issuer

If the transaction can be delivered directly to the Visa issuer, the transaction
follows the flow depicted in the following diagram.
1 CPS is a Visa interchange discount program that applies to certain transactions routed
through the Visa authorization network.

Authorization System Manual • April 2006 A-1
Figure A.1—Authorization Flow Peer-to-Peer Issuer Non-CPS Transaction Direct

to the Issuer
1 1 1 1
Banknet
2 2 2 2
Network
3
Visa
Stage Description
1. The acquirer creates an authorization request conforming to MasterCard
specifications for Visa transactions. The Authorization System routes the Visa
authorization request through the Banknet network to the Visa issuer.
2. The Visa issuer formats an authorization response conforming to MasterCard
specifications. The request travels back to the Banknet network. The Banknet
network delivers the authorization response to the acquirer.
3. Online acquirers may generate an authorization acknowledgement message to
acknowledge receipt of the response.
Secondary Path—Routing through the Visa Network

If the Banknet connectivity to the Visa issuer is not functioning, the
Authorization System routes the transaction to the Visa network via a
MasterCard gateway, as shown in Figure A.2.
Visa issuers do not receive PIN data with Visa ATM transactions that are routed
to the gateway.
Figure A.2—Authorization Flow Peer-to-Peer Issuer Non-CPS Transaction to the

Issuer Via the Visa Network
1 1
Banknet
4 4
Network
Acquirer MIP MIP

2
4
MIP
MasterCard
(Gateway)
3 2
VISA

A-2 April 2006 • Authorization System Manual
Stage Description
specifications for Visa transactions. The Visa authorization request flows
through the acquirer MIP to the Banknet network.
2. The Authorization System, unable to route the authorization request to the
Visa issuer, routes it instead to the MasterCard gateway to the Visa
authorization network.
3. The Authorization System receives the authorization response from Visa.
4. The Authorization System delivers the authorization response to the acquirer.
Tertiary Path—X-Code Processing

If Banknet connectivity to both the Visa issuer and the Visa network is down,
MasterCard X-Code processing returns a response of “decline,” as illustrated in
the following diagram.
Figure A.3—Authorization Flow Peer-to-Peer Issuer Non-CPS Transaction X-Code

Processing
1 1
2 Banknet
Network
Acquirer MIP Issuer

1 VISA
MIP
MasterCard
(Gateway)
VISA
Stage Description
2. The Authorization System is unable to deliver the request to the Visa issuer or
the Visa network. X-Code processing returns a response code that indicates,
“Authorization System or issuer system inoperative” and that prompts an
acquirer response of “decline.”

Flows for a Peer-to-Peer Visa Issuer—Transaction Qualifies for

CPS
If the peer-to-peer Visa issuer chooses to receive Visa transactions via its
Banknet connection and the transaction does qualify for the CPS program, the
transaction follows one of the flows depicted in Figure A.4, Figure A.5, and
Figure A.6. Although the Visa issuer in this scenario is directly connected to
the Banknet network, MasterCard nevertheless attempts to route the
transaction through the Visa network to secure the CPS discounts for the
issuer.
Primary Path— Routing through the Visa Network

The primary path for transactions that qualify for the CPS program always
leads to the Visa network.
Visa issuers do not receive PIN data with Visa ATM transactions that are routed
to the gateway.
Figure A.4—Authorization Flow Peer-to-Peer Issuer CPS Transaction to the Issuer

via the Visa Network
1 1
4 4 Banknet
Network
5
2
Acquirer MIP 3
MIP
MasterCard
(Gateway)
3
2 VISA
Stage Description
2. The Authorization System routes the authorization request to the Visa network.
3. Visa delivers an authorization response to the Banknet network.

Stage Description
5. The acquirer has the option to return an acknowledgement message.
Secondary Path—MasterCard Stand-In Processing

If the connectivity between the Banknet network and the Visa network is
down, MasterCard routes the CPS-qualifying authorization request to
MasterCard Stand-In processing. Stand-In processing approves Visa
transactions that are less than or equal to USD 100, provided:
• They are not on the Visa negative file, which MasterCard updates once a
week with current listings, and
• They are not ATM, cash disbursement, or unique transactions.
Note Cash disbursement and unique transactions receive a response of “refer to card
issuer.” Visa ATM transactions receive a response of “decline.”
Figure A.5—Authorization Flow Peer-to-Peer Issuer CPS Transaction to

MasterCard Stand-In Processing
1 1
3 3 Banknet
Network
4 1
Acquirer MIP 2
3
MIP
MasterCard
MIP (Gateway)
2
3
VISA
Visa
Stand-In 2 Negative
File
Stage Description

Stage Description
2. The Authorization System, unable to route the request to the Visa network,
routes it instead to MasterCard Stand-In processing, where it is checked
against the Visa negative file.
3. Stand-In processing generates an authorization response, according to
MasterCard parameters for Visa transactions, and delivers the response to the
acquirer.
4. The acquirer may return an authorization acknowledgement message.
Tertiary Path—MasterCard X-Code Processing

If Banknet connectivity to both the Visa network and MasterCard Stand-In
processing is not functional, MasterCard X-Code processing returns a response
of “decline,” as shown in the following diagram.
Figure A.6—Authorization Flow Peer-to-Peer Issuer CPS Transaction X-Code

Processing
1 1
Banknet
2
Network
1
Acquirer MIP
MIP
MasterCard
MIP (Gateway)
Stand-In
VISA
MasterCard Visa
Stand-In Negative
Host File
Stage Description
2. The Authorization System is unable to route the request to the Visa network or
Stand-In processing. X-Code processing at the acquirer MIP returns a
response code that indicates, “Authorization System or issuer system
inoperative” and that prompts an acquirer response of “decline.”

Flows for a Non–Peer-to-Peer Visa Issuer

If the Visa issuer is not connected to the Banknet network or chooses not to
receive Visa transactions via its Banknet connection, the transaction follows
one of the flows depicted in the following illustrations.
Primary Path—Routing through the Visa Network

When the issuer does not have direct connectivity to the Banknet network, the
primary path for all transactions leads to the Visa network, as shown in
Figure A.7. Visa issuers do not receive PIN data with Visa ATM transactions
that are routed to the gateway.
Figure A.7—Authorization Flows Non–Peer-to-Peer Issuer to the Issuer via the

Visa Network
1 1
Banknet
4 4
Network
5
Acquirer MIP 2 Issuer
3 Visa
MIP
MasterCard
(Gateway)
3 2 VISA
Stage Description
2. The Authorization System routes the request to the Visa network.
3. The Visa network delivers an authorization response to the Banknet network.

Secondary Path—MasterCard Stand-In Processing

If the connectivity between the Banknet network and the Visa network is
down, MasterCard routes the authorization request to MasterCard Stand-In
processing. Stand-In processing approves Visa transactions that are less than
or equal to USD 100, provided
• They are not on the Visa negative file, which MasterCard updates once a
week with current listings, and
• They are not ATM, cash disbursement, or unique transactions.
Note Visa cash disbursement and unique transactions receive a response of “refer to
card issuer.” Visa ATM transactions receive a response of “decline.”
Figure A.8—Authorization Flow Non–Peer-to-Peer Issuer to MasterCard Stand-In

Processing
1 1
Banknet
3 3
Network
4 1
Acquirer MIP 2
3
MIP
MasterCard
MIP (Gateway)
2
3
VISA
Visa
Stand-In 2 Negative
File
Stage Description
2. The Authorization System, unable to route the authorization request to the
Visa network, routes it instead to MasterCard Stand-In processing, where it is
checked against a file of negative Visa accounts updated weekly by
MasterCard.
3. Stand-In processing generates an authorization response and delivers the
response over the Banknet network to the acquirer.

Stage Description
Tertiary Path—MasterCard X-Code Processing

If Banknet connectivity to both the Visa network and Stand-In processing is
not functional, MasterCard X-Code processing returns a response of “decline,”
as shown in the following diagram.
Figure A.9—Authorization Flow Non–Peer-to-Peer Issuer X-Code Processing
1 1
Banknet
2
Network
Acquirer MIP 1
MIP
MasterCard
MIP (Gateway)
VISA
Stand-In
Stage Description
2. The Authorization System is unable to route the authorization request to the
Visa network or Stand-In processing. X-Code processing at the acquirer MIP
returns a response code that indicates, “Authorization System or issuer system
inoperative” and that prompts an acquirer response of “decline.”

Authorization Flows for Non-MasterCard, Non-Visa Cards

Acquirers can process any of the following card brands via the Banknet
network:
• American Express
• Diners Club
• enRoute
• JCB
MasterCard also supports processing of a number of private label cards. If the

card is among those listed above or one of the supported private label cards,
the transaction follows one of the flows depicted in Figure A.10 and
Figure A.11.
Note Non-MasterCard ATM transactions are automatically declined at the acquirer

MIP.
Primary Path—Direct to Designated Endpoint

The primary path for non-MasterCard, non-Visa transactions always leads
directly to the endpoint designated for the specific card brand, as illustrated in
the following diagram.
Figure A.10—Authorization Flow Direct to Designated Endpoint
1 1
Banknet
4 4 Network
Acquirer MIP
Acquirer 2
3
MIP
MasterCard
(Gateway)
2
3
Endpoint

Stage Description
specifications for the particular card brand. The request flows through the
acquirer MIP to the Banknet network.
2. The Authorization System routes the authorization request to the appropriate
endpoint (such as a processor, card issuer, or other network).
3. The endpoint returns an authorization response to the Banknet network.
Secondary Path—X-Code Processing

If connectivity to the proper endpoint does not exist, MasterCard performs X-
Code processing and issues a “refer to card issuer” response (except for
MO/TO and ATM transactions, which receive a “decline” response). See
Figure A.11.
Figure A.11—Authorization Flow X-Code Processing
1 1
Banknet
2 Network
Acquirer MIP
1
MIP
MasterCard
Endpoint

Stage Description
specifications for the particular card brand. The request flows through the
acquirer MIP to the Banknet network.
2. The Authorization System, unable to route the request to the appropriate
endpoint, performs X-Code processing, returning authorization responses as
follows:
Response Transaction Type
Decline MO/TO, ATM, or merchant suspicious transactions
Refer to Card Issuer All other transactions

B File Layouts
This chapter provides file layouts for the In-flight Commerce Blocked Gaming
File and Store-and-Forward Message Transmission File (T230).
In-flight Commerce Blocked Gaming File......................................................... B-1
Store-and-Forward Message Transmission File (T230) ..................................... B-3

Authorization System Manual • April 2006 B-i
File Layouts
In-flight Commerce Blocked Gaming File

The In-flight Commerce (IFC) Blocked Gaming File has the following
specifications:
Frequency: Generated twice per month

Media: Bulk File (bulk type T104) or MasterCard File Express
(ID AM005)
LRECL: 100
Format: Fixed block
Block Size: 1,000
Refer to the following file layouts for both bulk file and MasterCard File
Express.
IFC Blocked Gaming File Header Record

Record Type 1–3 3 Constant RHD
Processing Date 4–11 8 Date of file creation.
Format: = YYYYMMDD
YYYY = Year
MM = month
DD = Day
Valid value: Must be numeric
IFC Blocked Gaming File Financial Detail Record

Record Type 1–3 3 Constant DTL
From BIN 4–22 19 First account number in the BIN range to
be blocked.
Format: Numeric, left-justified; zero-filled.
To BIN 23–41 19 Last account number in the BIN range to
be blocked.
Format: Numeric, left-justified; nine-filled.

Authorization System Manual • April 2006 B-1
File Layouts

ICA 42–46 6 ICA number associated with the blocked
BIN.
Format: Numeric, left-justified; zero-filled.
Effective Date 47–54 8 Date the BIN should begin being blocked.
Format: = YYYYMMDD
YYYY = year
MM = month
DD = day
Valid value: Must be numeric
IFC Blocked Gaming File Trailer Record

Record Type 1–3 3 Constant TRL
Record Count 4–12 9 Numeric

B-2 April 2006 • Authorization System Manual
File Layouts
Store-and-Forward Message Transmission File (T230)
Store-and-Forward Message Transmission File (T230)

The Store-and-Forward (SAF) Message Transmission File (T230) has the
following specifications:
Frequency: On request
Media: Bulk File (bulk type T230) or Tape
LRECL: 1012
Format: Fixed block
Block size: 1012
SAF Message Transmission File Header Record
Field Name Position Attribute Comments/Valid Values

Record Type 1–4 an…4 Valid value: 0001
Transmission Date 5–10 n…6 YYMMDD
Transmission Time 11–14 n…4 HHSS
Filler 15–1012 an…998 Valid value: spaces
SAF Message Transmission File Detail Record

Record Type 1–4 an…4 Valid values: 0120, 0420, 0620
ISO Messages 5–1012 an…1008 Left-justified with spaces
SAF Message Transmission File Trailer Record

Record Type 1–4 an…4 Valid value: 9999
Detailed Record 5–10 n…6 Number of detailed records contained in
Count the file
Filler 11–1012 an…1002 Valid value: spaces

Authorization System Manual • April 2006 B-3

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Authorization System Manual, April 2006

Change Summary Description of Change Where to Look

Implementation of Effective with Banknet Release 06.1, MasterCard introduced Chapter 9

Authorization Parameter In the Global Parameters section of the Authorization Chapter 10

This material may not be duplicated, published, or disclosed, in

All third-party product and service names are trademarks or

Media This document is available:

MasterCard International Incorporated

© 2006 MasterCard International Incorporated

Using this Manual

Excerpted Text ....................................................................................................... 3

Language Use ......................................................................................................... 3

Chapter 1 System Overview

Features of the System ........................................................................................1-4

© 2006 MasterCard International Incorporated

Smart Card Technology.......................................................................................1-9

Chapter 2 Basic Authorization Concepts

Accessing the Authorization System...................................................................2-4

Limit-1 Processing .............................................................................................2-11

X-Code Processing ............................................................................................2-14

© 2006 MasterCard International Incorporated

Chapter 3 MasterCard Authorization Message Flows

Variations on the Basic Authorization Flow for MasterCard Cards ...................3-2

Chapter 4 Acquirer and Issuer Responsibilities

Issuer Responsibilities .........................................................................................4-6

Chapter 5 Online Authorization Messages

Using Authorization Messages ............................................................................5-2

Processing Authorization Transactions...............................................................5-2

Processing Issuer File Update Messages ............................................................5-8

© 2006 MasterCard International Incorporated

Processing Reversal Request/Advice Messages..................................................5-9

Processing Administrative Advice Messages ....................................................5-11

Using Network Management Request Messages..............................................5-13

Chapter 6 Stand-In Processing

How Stand-In Processing Works ........................................................................6-1

Stand-In Tests ......................................................................................................6-4

© 2006 MasterCard International Incorporated

Exceptions and Additions to the Stand-In Process ..........................................6-19

Chapter 7 Setting Stand-In Parameters: Online Issuer

New or Existing Account Ranges .......................................................................7-4

Hours of Operation for Call Referral Center ......................................................7-6

Holidays for Call Referral Center......................................................................7-10

Transaction Category Code Global Parameters................................................7-11

© 2006 MasterCard International Incorporated

Transaction Category Code Local Use Parameters...........................................7-13

Accumulative Limits ..........................................................................................7-15

Cash Disbursement Accumulative Limits..........................................................7-17

Range Blocking .................................................................................................7-20

Expanded Parameter Combinations .................................................................7-21

Limit-1 Processing .............................................................................................7-25

© 2006 MasterCard International Incorporated

Chapter 8 Central Authorization Processing Service

Completing the Stand-In Processing Worksheet..............................................8-12

Hours of Operation for Call Referral Center ....................................................8-16

Holidays for Call Referral Center......................................................................8-20

© 2006 MasterCard International Incorporated

Cash Disbursement Accumulative Limits..........................................................8-21

Range Blocking .................................................................................................8-24

Expanded Parameter Combinations .................................................................8-25

Chapter 9 Authorization Services Detail