Mastercard
Revised Nominal Authorization Transaction Processing Excellence Program in the Asia/Pacific Region excluding Indonesia
FEE CHANGE | Mastercard | Asia Pacific
Effective Date: September 2, 2024
Merchant Impact:
Effective September 2, 2024, the Mastercard pricing for the Nominal Authorization TPE program fee will be revised to USD 0.10 to encourage the use of Account Status Inquiry. Merchants who use nominal auths for account verification will be impacted and are advised to update their transaction criteria accordingly.
Furthermore, effective January 1, 2025, Mastercard will adjust the criteria used to identify transactions assessed by the TPE program to be applicable for approved authorizations that meet the following criteria:
- Equal or up to 2 full units of local currency or 2 USD.
- With a subsequent reversal within 48 hours of approved authorization request.
This fee is applicable only to Card-Not-Present transactions (CNP).
Digital Assurance Fee
FEE CHANGE | Mastercard | Asia Pacific
Effective Date: July 1, 2024, October 14, 2024
Merchant Impact:
Mastercard is introducing the Digital Assurance fee. Merchants not using tokens or 3DS can expect additional fees and are advised to review the use of tokens and 3DS in AP region. See the following fee schedule for more details:
| Event | Authentication | Fees |
|---|---|---|
| PAN submitted | No 3DS | 2bps AU |
| 4bps Southeast Asia/South Asia | ||
| 3bps for Remaining AP markets | ||
| PAN submitted | 3DS | 1bps AU |
| 2bps remaining AP markets | ||
| Dynamic Token submitted | No 3DS | 1bps AU |
| 2bps Southeast Asia and South Asia | ||
| Dynamic Token submitted | 3DS | 0bps |
Authorization Optimizer Pricing for Asia Pacific
BEHAVIORAL CHANGE | Mastercard | Asia Pacific
Effective Date: July 1, 2024
Merchant Impact:
Mastercard is introducing a fee for Authorization Optimizer for insufficient funds declines in certain AP countries and territories. The fee is 3bps ($0.0003 min; $0.075 max) and any merchant in impacted regions conducting card-not-present recurring transactions should be aware of these changes to reduce excessive retries.
This fee applies to card-not-present recurring transactions when decline code 51 (insufficient funds) is received and Merchant Advise Code 24-30 is provided.
Please see the following thresholds:
24 – Retry after 1 hour
25 – Retry after 24 hours
26 – Retry after 2 days
27 - Retry after 4 days
28 - Retry after 6 days
29 - Retry after 8 days
30 - Retry after 10 days
Introduction of Time-Based Authorization Validity Value Fees in the European Economic Area Countries, the United Kingdom, and Gibraltar (Switch)
BEHAVIORAL CHANGE | Mastercard | EU (inclusive of EU and EEA unless otherwise noted), UK
Effective Date: January 6, 2025
Merchant Impact
Merchants are advised to review clearing timeframes to ensure they are within compliance to avoid following new fees.
Mastercard is introducing the following time-based authorization validity value fees to acquirers for cleared final authorization transactions initiated in European Economic Area (EEA) countries, the United Kingdom, and Gibraltar:
Phase 1 effective January 6, 2025
-
Clearing transactions submitted between 72 hours and 168 hours after final authorizations are approved.
-
Fee .006% capped at .60 EUR
Phase 2 effective January 4, 2027
Final Authorization Validity Value Fee Mid
-
Clearing transactions submitted between 24 hours and 72 hours after the authorization.
-
Fee .002% capped at .20 EUR
Final Authorization Validity Value Fee Max
-
Clearing transactions submitted between 72 hours and 168 hours after the authorization.
-
Fee .006% capped at .60 EUR
What is the Revising Interregional Acquirer Cross-Border Fee and Acquiring Interregional Transaction Fee in Europe and Ireland, mandate?
FEE CHANGE | Mastercard | EU
Effective Date: 1 July 2024 (EU); 30 September 2024 (Ireland)
Merchant Impact:
Effective 1 July 2024 in the EU and 30 September 2024 in Ireland, Mastercard is revising the interregional cross-border fee for acquirers to 75 basis points (0.75%) for select countries in Europe. The rate for the acquirer cross-border fee on intraregional transactions and, where applicable, interregional transactions that are not submitted in the local currency of the merchant, remains unchanged.
The revised fee will be applied when a merchant and issuer are in different regions and where the merchant transaction currency is not the local currency of the card.
Note: An increase for the UK has not been announced.
What is the Revising and Introducing Interregional Acquirer Card-Not-Present Fees mandate?
FEE CHANGE | Mastercard | EU
Effective Date: 1 July 2024
Merchant Impact:
Effective 1 July 2024, Mastercard will raise the existing interregional acquirer card-not present fee from 5 basis points (0.05%) to 15 basis points (0.15%) in select countries in Europe (see list below). There are no changes to intraregional transactions, and the CNP fee definition remains unchanged.
Countries in Scope: Albania, Andorra, Austria, Belgium, Bosnia And Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark (Including territories), Estonia, Finland (Including territories), France (Including territories), Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Montenegro, Netherlands, Norway (Including territories), Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, Vatican City.
What is the Introducing Pricing for MDES Tokenization Services mandate?
FEE CHANGE | Mastercard | APAC and EU
Effective Date: 1 July 2024 (APAC); 7 October 2024 (EU)
Merchant Impact:
Mastercard will introduce a fee for Token Validation and Lifecycle Services Fee via Mastercard Digital Enablement Service (MDES) in select countries in Asia Pacific (Effective 1 July 2024) and Europe (effective 7 October 2024). The fee will apply to any approved tokenized transaction.
MDES Pricing | ||||
APAC Countries | SEPA Countries (Europe, excl. NL) | Non-SEPA Countries (Israel) | Netherlands | |
Card not Present | 0.02% (Domestic) 0.10% (Cross border) | 0.02% (Domestic/ Intraregional) 0.10% (Cross border) | 0.02% (Domestic/ Intraregional) 0.10% (Cross border) | 0% (Domestic Debit) 0.02% (Domestic/ Intraregional [excl. debit] fee) 0.10% (Cross border) |
Card Present | 0.01% (Domestic) 0.10% (Cross border) | 0.01% (Domestic/ Intraregional) 0.05% (Cross border) | 0.01% (Domestic/ Intraregional) 0.05% (Cross border) | 0.001% (Domestic Debit fee) 0.01% (Domestic/ Intraregional [excl. Debit] fee) 0.05% (Cross border) |
Note: The fee is different for the Netherlands because the MDES Authentication fee does not apply to Domestic Debit E-Commerce traffic. On 5 October 2020, Mastercard introduced a domestic Debit e-commerce service fee in the Netherlands to acquirers on all authorizations of ecommerce transactions in the Netherlands using Debit/Maestro products. This fee is exclusive to the Netherlands, and it already covers the objective of the new fee, hence it is zero for CNP.
What is the Revised Excessive Authorization Attempts in Transaction Processing Excellence Program change?
BEHAVIORAL CHANGE | Mastercard | EU
Effective Date: 1 August 2024
Merchant Impact:
Effective 1 August 2024, with an initial billing of 8 September 2024, Mastercard is establishing a threshold of 35 declined authorization attempts that happen on the same account number, at the same card acceptor and for the same amount, within a 30-day period. Exceeding such threshold will trigger an Excessive Authorization Attempts Transaction Processing Excellence Fee of 0.55 EUR per transaction to reinforce proper processing behavior surrounding repeated authorization declines.
To avoid the Excessive Authorization Attempts TPE Fees, Mastercard recommends that acquirers immediately:
- Stop sending authorization requests on the same card and same card acceptor ID, within a 24-hour period after receiving 10 consecutive decline responses
- Stop sending authorization requests on the same card, same card acceptor ID, for the same amount, within a 30-day period after receiving 35 decline responses
What is the Extending Network Access and Brand Usage Fee mandate?
BEHAVIORAL CHANGE | Mastercard | US
Effective Date: 15 April 2024
Merchant Impact:
Effective 15 April 2024, Mastercard is extending the Network Access and Brand Usage fee (NABU) for Non-domestic Authorizations, Collection-only, and Refund/Credit transactions in the United States. This new fee for US merchants who process transactions from non-US issued cards will be $0.0295 per transaction. NABU fees—sometimes also referred to as card association fees or card brand fees—are the fees associated with processing a transaction with a card network like Mastercard.
Extending Network Access and Brand Usage Fee | |
Merchant Country is U.S. | |
Issuer Country is U.S. | $0.0195 (existing fee) |
Issuer Country is non-U.S. | $0.0295 (new fee) |
What is the Revising Acquirer Brand Volume Fee mandate?
FEE CHANGE | Mastercard | US
Effective Date: 5 April 2024
Merchant Impact:
Effective 5 April 2024, Mastercard is introducing two enhanced tools—Merchant Risk Dashboard and Small Business Credit Analytics—designed to streamline acquirers' efforts to identify and mitigate potential risks during both the initial onboarding process and daily operations. In addition, Mastercard will raise the Acquirer Brand Volume fee by 1 basis point (0.01%) to 14 basis points (0.14%.) from 13 basis points (0.13%). This updated fee will apply to all Mastercard transactions.
What is the Revision of Arbitration Case Filing Fees mandate?
FEE CHANGE | Mastercard | US
Effective Date: 1 March 2024
Merchant Impact:
Effective 1 March 2024, Mastercard is raising arbitration case filing fees. See table below for more details:
Mastercard Revised Arbitration Case Filing Fees | |||
Billing Event # | Billing Event Name | Current Rate (USD) | New Rate (USD) |
2MS2400 2MS2430 2MS2440 2MS2450 2MS2420 | Filing Fee Processing Fee – Arbitration Case Fee* Processing Fee – Compliance Case Fee* Processing Fee – Precompliance Case Fee* Administration Fee NW Case Ruling Fee | 150 20 20 20 250 420 | 200 25 25 25 350 575 |
2MS2410 | Technical Violation Fee | $100 | $200 |
*Each billing would include only one processing fee | |||
What is the Revision of Cross-Border Assessments for Select APAC Countries mandate?
FEE CHANGE | Mastercard | APAC
Effective Date: 1 July 2024
Merchant Impact:
Effective 1 July 2024, Mastercard is raising rates of cross border assessments in the Asia Pacific region from 45 basis points (0.45%) to 125 basis points (1.25%)