Mastercard SPME §11.2.1 · Jun 2022 → May 2023
Certification
The revised section removes the requirement for Acquirer MATCH certification and clarifies that failure to enter a Merchant into MATCH can result in noncompliance assessments and unfavorable compliance rulings by subsequent Acquirers.
Each Acquirer that conducts Merchant acquiring Activity must be certified by Mastercard to use MATCH because it is a mandatory system. An Acquirer that does not comply with these requirements may be assessed for noncompliance, as described in this chapter. Certification is the process by which Mastercard connects an Acquirer to the MATCH system, so that the Acquirer may send and receive MATCH records to and from Mastercard. To be certified for MATCH usage, Acquirers must request access for each Member ID/ICA number under which acquiring Activity is conducted. NOTE: An Acquirer that conducts Merchant acquiring Activity under a Member ID/ICA number that does not have access to the MATCH system is not considered certified. An Acquirer that is not MATCH-certified is subject to noncompliance assessments as described in Table 11.3.
Security Rules and Procedures—Merchant Edition • 7 February 2023
An Acquirer that fails to enter a Merchant into MATCH is subject to a noncompliance assessment, and may be subject to an unfavorable ruling in a compliance case filed by a subsequent Acquirer of that Merchant.
program: Acquirer KYB- authority: Mastercard SPME §2.1+ authority: Mastercard SPME §11.2.1required_documents:- incorporation- beneficial_ownership- aml_screen- license_verificationmin_review_cycle_days: 365suspension_trigger: document_collection_failurerecord_retention_years: 7aml_watchlist_sources:- ofac_sdn- eu_consolidatedagent_owner: kyb_agent+ match_requirements:+ obligation: "Acquirers must enter Merchants into the MATCH system."+ noncompliance_assessment: true+ compliance_risk: "Failure to enter Merchants into MATCH may lead to noncompliance assessments and unfavorable rulings in disputes."
Acquirer KYB (Know Your Business) Obligations
Acquirers processing transactions on the Mastercard network are required to perform
Know Your Business (KYB) due diligence on merchants before onboarding and on a
recurring basis thereafter. Halyard Pay, as an acquirer, must collect and verify a
minimum set of documents for each merchant to establish business legitimacy, confirm
beneficial ownership, and satisfy anti-money laundering screening requirements.
When this policy applies
This policy applies to all new merchant onboarding and to all periodic re-verification
reviews. Merchants that fail to supply required documentation within the stipulated
period must be suspended from processing until compliance is restored.
Required actions
-
Collect all required KYB documents at onboarding prior to approval.
-
Conduct AML screening against applicable watchlists before approval.
-
Verify business licenses for regulated merchant categories.
-
Schedule a full re-verification review at least once every 365 days.
-
Document all verification outcomes and retain records for audit purposes.
6. Ensure that all merchants are entered into the Mastercard MATCH system to avoid noncompliance assessments and potential unfavorable rulings in compliance cases (Mastercard SPME §11.2.1).
Source authority: Mastercard SPME §2.1.§2.1, §11.2.1.
Acquirer KYB (Know Your Business) Obligations
Acquirers processing transactions on the Mastercard network are required to perform
Know Your Business (KYB) due diligence on merchants before onboarding and on a
recurring basis thereafter. Halyard Pay, as an acquirer, must collect and verify a
minimum set of documents for each merchant to establish business legitimacy, confirm
beneficial ownership, and satisfy anti-money laundering screening requirements.
When this policy applies
This policy applies to all new merchant onboarding and to all periodic re-verification
reviews. Merchants that fail to supply required documentation within the stipulated
period must be suspended from processing until compliance is restored.
Required actions
-
Collect all required KYB documents at onboarding prior to approval.
-
Conduct AML screening against applicable watchlists before approval.
-
Verify business licenses for regulated merchant categories.
-
Schedule a full re-verification review at least once every 365 days.
-
Document all verification outcomes and retain records for audit purposes.
6. Ensure that all merchants are entered into the Mastercard MATCH system to avoid noncompliance assessments and potential unfavorable rulings in compliance cases (Mastercard SPME §11.2.1).
Source authority: Mastercard SPME §2.1.§2.1, §11.2.1.
Source authority: Mastercard SPME §11.2.1.
--- a/policies/kyb_acquirer/rules.yaml +++ b/policies/kyb_acquirer/rules.yaml @@ -1,5 +1,5 @@ program: Acquirer KYB -authority: Mastercard SPME §2.1 +authority: Mastercard SPME §11.2.1 required_documents: - incorporation - beneficial_ownership @@ -12,3 +12,7 @@ - ofac_sdn - eu_consolidated agent_owner: kyb_agent +match_requirements: + obligation: "Acquirers must enter Merchants into the MATCH system." + noncompliance_assessment: true + compliance_risk: "Failure to enter Merchants into MATCH may lead to noncompliance assessments and unfavorable rulings in disputes." --- a/policies/kyb_acquirer/policy.md +++ b/policies/kyb_acquirer/policy.md @@ -19,5 +19,6 @@ 3. Verify business licenses for regulated merchant categories. 4. Schedule a full re-verification review at least once every 365 days. 5. Document all verification outcomes and retain records for audit purposes. +6. Ensure that all merchants are entered into the Mastercard MATCH system to avoid noncompliance assessments and potential unfavorable rulings in compliance cases (Mastercard SPME §11.2.1). -Source authority: Mastercard SPME §2.1. +Source authority: Mastercard SPME §2.1, §11.2.1.