What is changing?
Mastercard is expanding their Transaction Processing Excellence (TPE) program for nominal authorizations to the US region. The TPE program is a Mastercard compliance program to promote correct processing behavior. Nominal amount authorizations are small amount authorizations which get reversed to validate card status. The same program was already announced for the Europe, Asia-Pacific and Canada region.
What does the change mean?
Mastercard will charge a fee for any approved nominal amount authorization with a subsequent reversal for transactions under one full unit of local currency. This will apply only to Card-Not-Present transactions.
How will this affect you?
Payvision will pass these fees on to merchants. To avoid these TPE fees merchants are encouraged to use the “zero authorization” transaction type for validating card status. See the table below for the fine (per nominal auth. reversal) per region:
|Europe (EEA)||EUR 0.050|
|Europe (non-EEA)||EUR 0.050|
See the table below for the effective date per region:
|Europe (EEA)||October 1, 2019|
|Europe (non-EEA)||October 13, 2019|
|Canada||October 13, 2019|
|Asia-Pacific||October 13, 2019|
|US||January 6, 2020|