Halyard Pay · Policy Updates Powered by Carver Agents

Mastercard SPME §7.3 · Jun 2022 → May 2023

Merchant Education

substantive

The updated section adds a requirement for Acquirers to ensure that Payment Facilitators provide adequate education activities to each of their Sponsored Merchants, emphasizing compliance with data storage and encryption standards.

Sources Mastercard SPME · Jun 2022 · page 67 PDF Mastercard SPME · May 2023 · page 78 PDF KYB Acquirer current
Also in §7.x this release substantive §7 Availability control substantive §7.1 Screening New Merchants, Sponsored Merchants, and ATM Owners substantive §7.1.1 Required Screening Procedures substantive §7.1.3 Assessments for Noncompliance with Screening Procedures substantive §7.2 Ongoing Monitoring
Why these edits? The updated requirement for Acquirers to ensure Payment Facilitators provide education to Sponsored Merchants expands the Acquirer KYB obligations to include oversight of educational activities promoting compliance with data storage and encryption standards.
Mastercard SPME §7.3
This section was substantively restructured between versions (21% text overlap). Compare the texts directly below.
Before · Jun 2022 · page 67

Security Rules and Procedures—Merchant Edition • 22 February 2022

Chapter 8 Mastercard Fraud Control Programs This chapter may be of particular interest to Customer personnel responsible for monitoring Merchant and/or Issuer activity for compliance with fraud loss control Standards.

After · May 2023 · page 78

Security Rules and Procedures—Merchant Edition • 7 February 2023

stored, and any storage of data is done in accordance with the Standards for encryption, Transaction processing, and other prescribed practices. An Acquirer must also ensure that a Payment Facilitator conducts appropriate education activities for each of its Sponsored Merchants.

Halyard Pay · 2 files
program: Acquirer KYB


- authority: Mastercard SPME §2.1


+ authority: Mastercard SPME §2.1, §7.3


required_documents:


  - incorporation


  - beneficial_ownership


  - aml_screen


  - license_verification


min_review_cycle_days: 365


suspension_trigger: document_collection_failure


record_retention_years: 7


aml_watchlist_sources:


  - ofac_sdn


  - eu_consolidated


agent_owner: kyb_agent


+ payment_facilitator_education_required: true

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

  1. Collect all required KYB documents at onboarding prior to approval.

  2. Conduct AML screening against applicable watchlists before approval.

  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 any Payment Facilitators under Halyard Pay's sponsorship provide

appropriate education to their Sponsored Merchants regarding data storage,

encryption standards, and transaction processing requirements.

Source authority: Mastercard SPME §2.1.§2.1 and §7.3.

policies/kyb_acquirer/policy.md — after applying change

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

  1. Collect all required KYB documents at onboarding prior to approval.

  2. Conduct AML screening against applicable watchlists before approval.

  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 any Payment Facilitators under Halyard Pay's sponsorship provide

appropriate education to their Sponsored Merchants regarding data storage,

encryption standards, and transaction processing requirements.

Source authority: Mastercard SPME §2.1.§2.1 and §7.3.

Source authority: Mastercard SPME §7.3.

--- 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 §2.1, §7.3
 required_documents:
   - incorporation
   - beneficial_ownership
@@ -12,3 +12,4 @@
   - ofac_sdn
   - eu_consolidated
 agent_owner: kyb_agent
+payment_facilitator_education_required: true

--- a/policies/kyb_acquirer/policy.md
+++ b/policies/kyb_acquirer/policy.md
@@ -19,5 +19,8 @@
 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 any Payment Facilitators under Halyard Pay's sponsorship provide
+   appropriate education to their Sponsored Merchants regarding data storage,
+   encryption standards, and transaction processing requirements.
 
-Source authority: Mastercard SPME §2.1.
+Source authority: Mastercard SPME §2.1 and §7.3.