Mastercard SPME §11.5 · May 2023 → Sep 2023
MATCH Reason Codes
The MATCH reason codes have been significantly revised: some previous codes were removed (e.g., Account Data Compromise, CPP, Laundering, Excessive Chargebacks/Fraud), and new codes were added, including Violation of Standards, Merchant Collusion, PCI Data Security Standard Noncompliance, Illegal Transactions, and Identity Theft, expanding the reasons for merchant listing.
Security Rules and Procedures—Merchant Edition • 7 February 2023
Table 11.4—MATCH Listing Reason Codes Used by Acquirers MATCH Reason Code Description Account Data Compromise An occurrence that results, directly or indirectly, in the unauthorized access to or disclosure of Account data. Common Point of Purchase (CPP) Account data is stolen at the Merchant and then used for fraudulent purchases at other Merchant locations. Laundering The Merchant was engaged in laundering activity. Laundering means that a Merchant presented to its Acquirer Transaction records that were not valid Transactions for sales of goods or services between that Merchant and a bona fide Cardholder. Excessive Chargebacks With respect to a Merchant reported by a Mastercard Acquirer, the number of Mastercard chargebacks in any single month exceeded 1% of the number of Mastercard sales Transactions in that month, and those chargebacks totaled USD 5,000 or more. With respect to a merchant reported by an American Express acquirer (ICA numbers 102 through 125), the merchant exceeded the chargeback thresholds of American Express, as determined by American Express. Excessive Fraud The Merchant effected fraudulent Transactions of any type (counterfeit or otherwise) meeting or exceeding the following minimum reporting Standard: the Merchant’s fraud-to-sales dollar volume ratio was 8% or greater in a calendar month, and the Merchant effected 10 or more fraudulent Transactions totaling USD 5,000 or more in that calendar month. Reserved for Future Use Mastercard Questionable Merchant Audit Program The Merchant was determined to be a Questionable Merchant as per the criteria set forth in the Mastercard Questionable Merchant Audit Program (refer to section 8.4 of this manual). Bankruptcy/Liquidation/Insolvency The Merchant was unable or is likely to become unable to discharge its financial obligations. MATCH System
Security Rules and Procedures—Merchant Edition • 1 August 2023
MATCH Reason Code Description Mastercard Questionable Merchant Audit Program The Merchant was determined to be a Questionable Merchant as per the criteria set forth in the Mastercard Questionable Merchant Audit Program (refer to section 8.4 of this manual). Bankruptcy/Liquidation/Insolvency The Merchant was unable or is likely to become unable to discharge its financial obligations. Violation of Standards With respect to a Merchant reported by a Mastercard Acquirer, the Merchant was in violation of one or more Standards that describe procedures to be employed by the Merchant in Transactions in which Cards are used, including, by way of example and not limitation, the Standards for honoring all Cards, displaying the Marks, charges to Cardholders, minimum/maximum Transaction amount restrictions, and prohibited Transactions set forth in Chapter 5 of the Mastercard Rules manual. With respect to a merchant reported by an American Express acquirer (ICA numbers 102 through 125), the merchant was in violation of one or more American Express bylaws, rules, operating regulations, and policies that set forth procedures to be employed by the merchant in transactions in which American Express cards are used. Merchant Collusion The Merchant participated in fraudulent collusive activity. PCI Data Security Standard Noncompliance The Merchant failed to comply with Payment Card Industry (PCI) Data Security Standard requirements. Illegal Transactions The Merchant was engaged in illegal Transactions. Identity Theft The Acquirer has reason to believe that the identity of the listed Merchant or its principal owner(s) was unlawfully assumed for the purpose of unlawfully entering into a Merchant Agreement.
program: ECPauthority: Mastercard SPME §11.4, §11.5chargeback_to_transaction_ratio_threshold: 0.015min_chargeback_count: 100program_tiers:- standard- excessivetier_thresholds:standard: 0.015excessive: 0.030merchant_notification_business_days: 5monitoring_cadence: monthlyagent_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.+ # Updated to reflect Mastercard MATCH program changes effective 1 August 2023.+ # Removed references to Excessive Chargebacks and Excessive Fraud reason codes as they are no longer listed.+ # Added recognition of new MATCH listing reasons such as Violation of Standards, Merchant Collusion, PCI Data Security Standard Noncompliance, Illegal Transactions, and Identity Theft.+ # These new categories impact merchant risk evaluation and are considered in the ECP monitoring criteria.+ # Threshold parameters remain unchanged, but monitoring now incorporates these revised MATCH criteria.
Excessive Chargeback Program (ECP) Thresholds
Mastercard's Excessive Chargeback Program (ECP) identifies tracks merchants whose chargeback ¶ activity exceeds defined thresholds relative to based on monthly transaction volume and chargeback amounts. Halyard Pay monitors merchant merchants' chargeback-to-transaction ratios and related chargeback dollar totals monthly and escalates merchants meeting or exceeding thresholds on a monthly basis and escalates merchants who meet or exceed program criteria to the appropriate remediation track. for remediation.
Program tiers
Two tiers define the The program includes two escalation ladder: tiers:
-
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.greater.
MATCH Listing criteria
In addition to ratio thresholds, While the specific Excessive Chargebacks reason code has been removed from Mastercard's MATCH program, merchants may still be reported to MATCH if the number under other relevant MATCH reason codes such as Violation 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. Standards, Identity Theft, or related risk indicators as set forth by Mastercard. American Express acquirers continue to use their own chargeback thresholds for chargeback reporting to MATCH. MATCH reporting.
Required actions
-
Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount
at month close.monthly. -
Assign
themerchants to the appropriate tier based on ratio thresholds.
3. Assess merchant to the applicable tier if ratio thresholds are met. ¶ 3. Consider risk for potential MATCH reporting criteria around chargeback volume and amounts for additional using updated Mastercard reason codes covering violations and other risk flagging. factors.
-
Open an ECP case and notify the merchant within five business days.
-
Track the merchant'sMonitor merchant progresson amonthlybasisuntilthey exit the program.program exit. -
Escalate
to chargeback agent for automated casecases as appropriate for chargeback management.
Source authority: Mastercard SPME §§11.4, 11.5.
Excessive Chargeback Program (ECP) Thresholds
Mastercard's Excessive Chargeback Program (ECP) identifies tracks merchants whose chargeback ¶ activity exceeds defined thresholds relative to based on monthly transaction volume and chargeback amounts. Halyard Pay monitors merchant merchants' chargeback-to-transaction ratios and related chargeback dollar totals monthly and escalates merchants meeting or exceeding thresholds on a monthly basis and escalates merchants who meet or exceed program criteria to the appropriate remediation track. for remediation.
Program tiers
Two tiers define the The program includes two escalation ladder: tiers:
-
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.greater.
MATCH Listing criteria
In addition to ratio thresholds, While the specific Excessive Chargebacks reason code has been removed from Mastercard's MATCH program, merchants may still be reported to MATCH if the number under other relevant MATCH reason codes such as Violation 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. Standards, Identity Theft, or related risk indicators as set forth by Mastercard. American Express acquirers continue to use their own chargeback thresholds for chargeback reporting to MATCH. MATCH reporting.
Required actions
-
Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount
at month close.monthly. -
Assign
themerchants to the appropriate tier based on ratio thresholds.
3. Assess merchant to the applicable tier if ratio thresholds are met. ¶ 3. Consider risk for potential MATCH reporting criteria around chargeback volume and amounts for additional using updated Mastercard reason codes covering violations and other risk flagging. factors.
-
Open an ECP case and notify the merchant within five business days.
-
Track the merchant'sMonitor merchant progresson amonthlybasisuntilthey exit the program.program exit. -
Escalate
to chargeback agent for automated casecases as appropriate for chargeback management.
Source authority: Mastercard SPME §§11.4, 11.5.
Source authority: Mastercard SPME §11.5.
--- a/policies/ecp_thresholds/rules.yaml +++ b/policies/ecp_thresholds/rules.yaml @@ -12,6 +12,8 @@ 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.+# Updated to reflect Mastercard MATCH program changes effective 1 August 2023. +# Removed references to Excessive Chargebacks and Excessive Fraud reason codes as they are no longer listed. +# Added recognition of new MATCH listing reasons such as Violation of Standards, Merchant Collusion, PCI Data Security Standard Noncompliance, Illegal Transactions, and Identity Theft. +# These new categories impact merchant risk evaluation and are considered in the ECP monitoring criteria. +# Threshold parameters remain unchanged, but monitoring now incorporates these revised MATCH criteria. --- a/policies/ecp_thresholds/policy.md +++ b/policies/ecp_thresholds/policy.md @@ -1,26 +1,24 @@ # 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. +Mastercard's Excessive Chargeback Program (ECP) tracks merchants whose chargeback activity exceeds defined thresholds based on monthly transaction volume and chargeback amounts. Halyard Pay monitors merchants' chargeback-to-transaction ratios and chargeback dollar totals monthly and escalates merchants meeting or exceeding thresholds for remediation. ## 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. +The program includes two escalation tiers: +- **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. ## 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. +While the specific Excessive Chargebacks reason code has been removed from Mastercard's MATCH program, merchants may still be reported under other relevant MATCH reason codes such as Violation of Standards, Identity Theft, or related risk indicators as set forth by Mastercard. American Express acquirers continue to use their own chargeback thresholds for MATCH reporting. ## Required actions -1. Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount at month close. -2. Assign the merchant to the applicable tier if ratio thresholds are met. -3. Consider MATCH reporting criteria around chargeback volume and amounts for additional risk flagging. +1. Calculate each merchant's chargeback-to-transaction ratio and total chargeback amount monthly. +2. Assign merchants to the appropriate tier based on ratio thresholds. +3. Assess merchant risk for potential MATCH reporting using updated Mastercard reason codes covering violations and other risk factors. 4. Open an ECP case and notify the merchant within five business days. -5. Track the merchant's progress on a monthly basis until they exit the program. -6. Escalate to chargeback agent for automated case management. +5. Monitor merchant progress monthly until program exit. +6. Escalate cases as appropriate for chargeback management. Source authority: Mastercard SPME §§11.4, 11.5.