Mastercard SPME §11.4 · May 2023 → Sep 2023

Merchant Removal from MATCH

breaking

⚠ Extraction warning — review against source PDF. One side of the Mastercard SPME text below appears to contain only the page-running header, not body content. This usually means the section heading fell on a page boundary and the body was attributed to a neighbouring section in the source PDF. The AI summary and proposed edit below may be misleading. Verify in: May 2023 · page 146 ↗ · Sep 2023 · page 135 ↗.

The entire content of the 'Merchant Removal from MATCH' section has been removed, deleting previous details on reasons and procedures for removing a Merchant listing from MATCH.

Sources Mastercard SPME · May 2023 · page 146 PDF Mastercard SPME · Sep 2023 · page 135 PDF ECP Thresholds current

Also in §11.x this release substantive §11.1 MATCH Overview substantive §11.1.2 How does MATCH search when conducting an inquiry? substantive §11.2.1 Certification substantive §11.2.3 Inquiring about a Merchant substantive §11.5 MATCH Reason Codes substantive §11.5.1 Reason Codes for Merchants Listed by the Acquirer

Why these edits? The 'Merchant Removal from MATCH' section deletion affects the 'Excessive Chargeback Program (ECP) Thresholds' policy because it removes previously outlined procedures and conditions under which a merchant can be removed from MATCH, impacting removal processes referenced in ECP management.

Mastercard SPME §11.4

This section was substantively restructured between versions (10% text overlap). Compare the texts directly below.

Before · May 2023 · page 146

Mastercard may remove a Merchant listing from MATCH for the following reasons:

The Acquirer reports to Mastercard that the Acquirer added the Merchant to MATCH in error.
The Merchant listing is for reason code 12 (Payment Card Industry Data Security Standard Noncompliance) and the Acquirer has confirmed that the Merchant has become compliant with the Payment Card Industry Data Security Standard. The Acquirer must submit the request to remove a MATCH reason code 12 Merchant listing from MATCH in writing on the Acquirer’s letterhead to MATCH System

After · Sep 2023 · page 135

Security Rules and Procedures—Merchant Edition • 1 August 2023

Halyard Pay · 2 files

ECP Thresholds · rules.yaml

program: ECP
authority: Mastercard SPME §11.4, §11.5
chargeback_to_transaction_ratio_threshold: 0.015
min_chargeback_count: 100
program_tiers:
  - standard
  - excessive
tier_thresholds:
  standard: 0.015
  excessive: 0.030
merchant_notification_business_days: 5
monitoring_cadence: monthly
agent_owner: ecp_ops_agent
 
- # Added citation to Mastercard SPME §11.5 due to updated MATCH Listing Reason Codes.
- # Although thresholds for chargebacks remain, the updated MATCH section clarifies American Express-specific thresholds and criteria for excessive chargebacks and fraud,
- # which are relevant to this program's monitoring and notification practices. No parameter changes needed at this time.
+ # The deletion of the 'Merchant Removal from MATCH' section in Mastercard SPME §11.4 eliminates previous guidance on removing merchants from the MATCH list.
+ # This change influences ECP processes by removing certain removal protocol references, but ECP threshold parameters and monitoring rules remain unchanged.
+ # Therefore, no changes to thresholds or operational parameters are needed at this time.

ECP Thresholds · policy.md

Excessive Chargeback Program (ECP) Thresholds

Mastercard's Excessive Chargeback Program (ECP) identifies merchants whose chargeback

activity exceeds defined thresholds relative to monthly transaction volume and chargeback amounts. Halyard Pay monitors merchant chargeback-to-transaction ratios and related chargeback dollar thresholds on a monthly basis and escalates merchants who meet or exceed program criteria to the appropriate remediation track.

Program tiers

Two tiers define the escalation ladder:

Standard: chargeback-to-transaction ratio of 1.5% (0.015) or greater and at

least 100 chargebacks in the month.

Excessive: ratio of 3.0% (0.03) or greater in the same measurement period.

MATCH Listing criteria

In addition to ratio thresholds, merchants may be reported to MATCH if the number of Mastercard chargebacks in a single month exceeds 1% of Mastercard sales transactions for that month and chargebacks total at least USD 5,000 or more. American Express acquirers use their own thresholds for chargeback reporting to MATCH.

Required actions

Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount at month close.
Assign the merchant to the applicable tier if ratio thresholds are met.
Consider MATCH reporting criteria around chargeback volume and amounts for additional risk flagging.
Open an ECP case and notify the merchant within five business days.
Track the merchant's progress on a monthly basis until they exit the program.
Escalate to chargeback agent for automated case management.

Note: The previous Mastercard provision allowing Acquirers to request removal of Merchants from MATCH for certain reasons, including error listings or resolving PCI compliance issues, has been removed from the current Mastercard Security Rules and Procedures (SPME). As a result, Halyard Pay's policy no longer references specific merchant removal procedures from MATCH.

Source authority: Mastercard SPME §§11.4, 11.5.

policies/ecp_thresholds/policy.md — after applying change

Excessive Chargeback Program (ECP) Thresholds

Mastercard's Excessive Chargeback Program (ECP) identifies merchants whose chargeback

Program tiers

Two tiers define the escalation ladder:

Standard: chargeback-to-transaction ratio of 1.5% (0.015) or greater and at

least 100 chargebacks in the month.

Excessive: ratio of 3.0% (0.03) or greater in the same measurement period.

MATCH Listing criteria

Required actions

Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount at month close.
Assign the merchant to the applicable tier if ratio thresholds are met.
Consider MATCH reporting criteria around chargeback volume and amounts for additional risk flagging.
Open an ECP case and notify the merchant within five business days.
Track the merchant's progress on a monthly basis until they exit the program.
Escalate to chargeback agent for automated case management.

Source authority: Mastercard SPME §§11.4, 11.5.

Source authority: Mastercard SPME §11.4.

--- a/policies/ecp_thresholds/rules.yaml
+++ b/policies/ecp_thresholds/rules.yaml
@@ -12,6 +12,6 @@
 monitoring_cadence: monthly
 agent_owner: ecp_ops_agent
 
-# Added citation to Mastercard SPME §11.5 due to updated MATCH Listing Reason Codes.
-# Although thresholds for chargebacks remain, the updated MATCH section clarifies American Express-specific thresholds and criteria for excessive chargebacks and fraud,
-# which are relevant to this program's monitoring and notification practices. No parameter changes needed at this time.+# The deletion of the 'Merchant Removal from MATCH' section in Mastercard SPME §11.4 eliminates previous guidance on removing merchants from the MATCH list.
+# This change influences ECP processes by removing certain removal protocol references, but ECP threshold parameters and monitoring rules remain unchanged.
+# Therefore, no changes to thresholds or operational parameters are needed at this time.

--- a/policies/ecp_thresholds/policy.md
+++ b/policies/ecp_thresholds/policy.md
@@ -23,4 +23,6 @@
 5. Track the merchant's progress on a monthly basis until they exit the program.
 6. Escalate to chargeback agent for automated case management.
 
+Note: The previous Mastercard provision allowing Acquirers to request removal of Merchants from MATCH for certain reasons, including error listings or resolving PCI compliance issues, has been removed from the current Mastercard Security Rules and Procedures (SPME). As a result, Halyard Pay's policy no longer references specific merchant removal procedures from MATCH.
+
 Source authority: Mastercard SPME §§11.4, 11.5.