Mastercard SPME §9.2.1 · Jun 2022 → May 2023
Merchant Registration Fees and Noncompliance Assessments
The entire paragraph regarding fraud deterrent measures and acquirer responsibilities was removed from the section.
Security Rules and Procedures—Merchant Edition • 22 February 2022
When attempted fraud is evident, a Merchant should implement temporary bank identification number (BIN) blocking as a fraud deterrent.
- The Acquirer must ensure that each such Merchant complies with the fraud control Standards in Chapter 6 of this manual.
Security Rules and Procedures—Merchant Edition • 7 February 2023
program: Fraud Monitoring- authority: Mastercard SPME §3.7+ authority: Mastercard SPME 1.3.7fraud_to_sales_ratio_threshold: 0.015min_count_per_month: 100monitoring_cadence: monthlyescalation_actions:- escalate_to_human_review- notify_acquirerlookback_period_months: 1remediation_review_interval_days: 30agent_owner: fraud_ops_agent++ # The updated Mastercard SPME removed the requirement that acquirers must ensure merchant compliance with fraud control standards, thus reducing acquirer obligations referenced in this policy.
Fraud Monitoring
Halyard Pay monitors merchant fraud activity on a monthly basis to detect patterns that ¶ exceed Mastercard's acceptable fraud-to-sales thresholds. A merchant whose rolling ¶ monthly fraud-to-sales ratio meets or exceeds 1.5% (0.015) and whose fraud count ¶ reaches at least 100 transactions in that same month triggers mandatory escalation ¶ under this policy.
When this policy applies
This policy applies to all merchants processed through Halyard Pay's acquiring platform ¶ where Mastercard is the applicable card network. It governs both card-present and ¶ card-not-present transaction streams.
Required actions
-
Compute the merchant's rolling fraud-to-sales ratio each calendar month.
-
If the ratio meets or exceeds the threshold AND the minimum count is reached,
¶escalate the merchant account to human review immediately. -
Notify the acquiring compliance officer and document the case ID with supporting
¶transaction data. -
Track case progress until the account returns to threshold compliance or is
¶terminated.
Source authority: Mastercard SPME §3.7.3.7.
Fraud Monitoring
Halyard Pay monitors merchant fraud activity on a monthly basis to detect patterns that ¶ exceed Mastercard's acceptable fraud-to-sales thresholds. A merchant whose rolling ¶ monthly fraud-to-sales ratio meets or exceeds 1.5% (0.015) and whose fraud count ¶ reaches at least 100 transactions in that same month triggers mandatory escalation ¶ under this policy.
When this policy applies
This policy applies to all merchants processed through Halyard Pay's acquiring platform ¶ where Mastercard is the applicable card network. It governs both card-present and ¶ card-not-present transaction streams.
Required actions
-
Compute the merchant's rolling fraud-to-sales ratio each calendar month.
-
If the ratio meets or exceeds the threshold AND the minimum count is reached,
¶escalate the merchant account to human review immediately. -
Notify the acquiring compliance officer and document the case ID with supporting
¶transaction data. -
Track case progress until the account returns to threshold compliance or is
¶terminated.
Source authority: Mastercard SPME §3.7.3.7.
Source authority: Mastercard SPME §9.2.1.
--- a/policies/fraud_monitoring/rules.yaml +++ b/policies/fraud_monitoring/rules.yaml @@ -1,5 +1,5 @@ program: Fraud Monitoring -authority: Mastercard SPME §3.7 +authority: Mastercard SPME 1.3.7 fraud_to_sales_ratio_threshold: 0.015 min_count_per_month: 100 monitoring_cadence: monthly @@ -9,3 +9,5 @@ lookback_period_months: 1 remediation_review_interval_days: 30 agent_owner: fraud_ops_agent + +# The updated Mastercard SPME removed the requirement that acquirers must ensure merchant compliance with fraud control standards, thus reducing acquirer obligations referenced in this policy. --- a/policies/fraud_monitoring/policy.md +++ b/policies/fraud_monitoring/policy.md @@ -1,25 +1,16 @@ # Fraud Monitoring -Halyard Pay monitors merchant fraud activity on a monthly basis to detect patterns that -exceed Mastercard's acceptable fraud-to-sales thresholds. A merchant whose rolling -monthly fraud-to-sales ratio meets or exceeds 1.5% (0.015) and whose fraud count -reaches at least 100 transactions in that same month triggers mandatory escalation -under this policy. +Halyard Pay monitors merchant fraud activity on a monthly basis to detect patterns that exceed Mastercard's acceptable fraud-to-sales thresholds. A merchant whose rolling monthly fraud-to-sales ratio meets or exceeds 1.5% (0.015) and whose fraud count reaches at least 100 transactions in that same month triggers mandatory escalation under this policy. ## When this policy applies -This policy applies to all merchants processed through Halyard Pay's acquiring platform -where Mastercard is the applicable card network. It governs both card-present and -card-not-present transaction streams. +This policy applies to all merchants processed through Halyard Pay's acquiring platform where Mastercard is the applicable card network. It governs both card-present and card-not-present transaction streams. ## Required actions 1. Compute the merchant's rolling fraud-to-sales ratio each calendar month. -2. If the ratio meets or exceeds the threshold AND the minimum count is reached, - escalate the merchant account to human review immediately. -3. Notify the acquiring compliance officer and document the case ID with supporting - transaction data. -4. Track case progress until the account returns to threshold compliance or is - terminated. +2. If the ratio meets or exceeds the threshold AND the minimum count is reached, escalate the merchant account to human review immediately. +3. Notify the acquiring compliance officer and document the case ID with supporting transaction data. +4. Track case progress until the account returns to threshold compliance or is terminated. -Source authority: Mastercard SPME §3.7. +Source authority: Mastercard SPME 3.7.