Proprietary and Confidential. Service Provider Overview. Mastercard does not object to a Customer's use of a third party, but does need to know what third party(ies) support a particular
Btl mastercard Customer, and the nature of the support provided. A Service Provider may only perform the Program Services it is registered to perform
Mastercard has developed a Service Provider Registration Guide that is available on Mastercard Connect.
Mastercard does not object to a Customer’s use of a third party, but does need to know what third party(ies) support a particular Customer, and the nature of the support provided. Mastercard considers a Service Provider to be an agent of the Customer that registers it. For this reason, before a Customer begins to use a third party to support any of the Customer’s Mastercard programs, the Customer must register the third party with Mastercard as a Service Provider.
A Customer must register each third party provider that it wishes to receive services from. If a third party is to perform Mastercard services for three Customers, it must be registered as a Service Provider by each of the three Customers. If the third party is registered by only one of the three Customers, it may only provide Mastercard services on behalf of that one Customer and not on behalf of the other two.
A Service Provider is categorized by the Corporation based upon the Corporation’s understanding of the nature of the Program Services to be performed.
A Service Provider may only perform the Program Services it is registered to perform.
“Sales person” – Solicitation of Cardholders and/or merchants
Cannot have access to account data – “Account Data – full Primary Account Number”
ATM Deployment - The end to end installation and management of ATM network including site selection and preparation, ATM procurement and installation.
Merchant Training - Any/all Merchant training related to payment card operations, installation, and/or other functions of technologies associated with payment cards.
Examples: Online Shopping cart
Tracks the cookies and traffic for a particular site
Website hosting - Provides space on a server own or lease for use by clients as well as providing internet connectivity, typically in a data center. Any/all computer hosting services, including web hosting.
Level 1 PCI - All DSE with more than 300,000 total combined Mastercard and Maestro Transactions annually
Level 2 PCI – All DSE with 300,000 or less total combined Mastercard and Maestro Transactions annually
Encryption Key Loading - The loading of encryption keys through a safe and secure key code encrypted database. For use in preventing unauthorized access to transaction data in route between endpoints or residing on a network server.
Software Application - Software permitting Customers to send or receive card transaction information (for example, non-card account number, expiration date, transaction amount, and so on).
Terminal Driving - ATM or POS terminal driving. The proactive management, monitoring, and/or maintenance of ATM and/or POS devices.
Chargebacks - Processing chargebacks to resolve disputes between cardholders and Merchants
Customers Service w/access - Any type of Customer service provided by issuing banks, acquiring banks, or payment card companies with direct access to cardholder account information.
Gateway Services - Any service that provides Merchants with real time card authorization and payment settlement solutions using the Internet. Includes sending and receiving data to and from Internet applications (for example, an authorization request) through the Internet.
Switching Services - Transaction switching services, which includes authorization, clearing, and settlement.
A Type I TPP is a TPP that Mastercard deems could significantly impact the integrity of the Interchange System, typically a TPP that provides Program Service for more than USD 100 million in transactions annually. A Type I TPP is the only type of Service Provider that may self-register with Mastercard as a Service Provider. Among other things, an applicant to be registered as a Type I TPP must enter into an agreement directly with Mastercard.
•A Type II TPP is any TPP that Mastercard does not deem to be a Type I TPP.
a Type I Third Party Processor (TPP) is directly registered with Mastercard. If registered as a Type I TPP, the third party may provide Mastercard services on behalf of any Mastercard Customer. However, the relationship still needs to be registered in Mastercard Connect, the same way a type II TPP is registered.
In a Pass-through Digital Wallet, the wallet is simply a digital version of the physical wallet that a consumer would carry. A Pass-through Digital Wallet stores card information in a digital format for the consumer, and when a purchase is made, that information is passed directly to the Merchant, as if the cardholder was using their physical card.
In a Staged Digital Wallet, there are two separate transactions. There is a funding stage, where the cardholder can use any credit card to fund or reimburse the wallet.
In the payment stage, a separate transaction transfers money from the wallet to the retailer in order to pay for the goods or services being purchased. When a consumer uses a Staged Digital Wallet, the card Issuer would only see the information from the funding stage of the transaction, with the DWO acting as a Merchant, and the Merchant would only see payment from the DWO, regardless of how the consumer funded the wallet.
The wallet may conduct the funding transaction either before (prepaid/top-up), during (back to back authorization), or after (repayment) the payment transaction.
An Acquirer may permit a Payment Facilitator to manage the following obligations on
behalf of the Acquirer, and remains fully responsible for the fulfillment of each to the
extent that the Payment Facilitator fails to do so:
a. Verify that a Submerchant is a bona fide business operation, as set forth in section
7.1.2, “Submerchant Screening Procedures” in Chapter 7 of the Security Rules and
Procedures manual; and
b. Retain records concerning the investigation of a prospective Submerchant, provided
that such records are provided to the Acquirer immediately upon request; and
c. Pay a Submerchant for Transactions, in accordance with Rule 7.8.2, “Obligations as
Sponsor of Submerchants,” part 4; and
d. Ensure that a Submerchant is supplied with materials necessary to effect Transactions
as set forth in Rule 7.8.2, “Obligations as Sponsor of Submerchants,” part 5; and
e. Monitor a Submerchant’s Activity on an ongoing basis to deter fraud or other
wrongful activity, as set forth in Rule 7.8.2, part 6.
