Mastercard updated its Data Integrity standards to improve the security and accuracy of cardholder and merchant transactions. Merchants and their vendors must make sure point-of-sale devices, systems and gateways correctly flag cardholder-initiated transactions (CIT) and merchant-initiated transactions (MIT).
Understanding the update
The edit targets e-commerce and credential-on-file transactions, meaning payments made with a card your business has stored. Each one must carry a CIT or MIT indicator so Mastercard can tell transaction types apart, which improves accuracy and fraud prevention.
Mastercard checks authorization messages for a valid indicator in specific data fields, following detailed criteria it publishes for processors.
Compliance requirements
Merchants on systems like Clover were told to expect supporting updates by the first quarter of 2024. Vendors needed to confirm their platforms could support the change, especially on authorization platforms such as Nashville, North, Omaha and Buypass.
Vendors should work with their certification contacts and Mastercard to confirm the exact requirements. If a vendor can’t support them, a merchant may need to switch vendors to stay compliant.
Action steps for compliance
- Update POS systems. Make sure devices and software run the latest versions that include Mastercard’s updates.
- Replace end-of-life devices. Older devices may not meet new or existing EMV requirements.
- Monitor and correct transactions. Fix the merchants with the most errors first, but every merchant under an acquirer needs updating.
- Understand the fines. Assessments start at $2,500 per month for each non-compliant ISO or acquirer and rise the longer the issue lasts.
Potential consequences
Beyond fines, non-compliance can lead to losing the ability to accept Mastercard. Payment facilitators and processors will likely pass fines on to the partners or merchants responsible.
Conclusion
Merchants, vendors and service providers all share responsibility for these changes. Staying compliant protects your ability to accept cards and strengthens the security of the whole payment network.
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