MasterCard is a leading payment processing company that sets rules and guidelines for merchants to follow. In order to ensure the safety and security of their cardholders, MasterCard has a set of rules for high-risk merchant processing. These rules apply to merchants who operate in high-risk industries or have a history of chargebacks or fraud.
Here are some of the key rules for high-risk merchant processing with MasterCard in 2023:
- Chargeback monitoring: MasterCard will monitor merchants for excessive chargebacks and may impose penalties or even terminate their merchant agreement if the chargeback rate exceeds the allowed threshold.
- Fraud prevention: MasterCard will require merchants to implement fraud prevention measures, such as Address Verification Service (AVS) and Card Verification Value (CVV), to protect against fraudulent transactions.
- PCI compliance: MasterCard will require merchants to be PCI DSS compliant in order to accept credit card payments. This includes implementing security measures to protect cardholder data and regularly undergoing security assessments.
- KYC & AML: MasterCard will require merchants to comply with know-your-customer (KYC) and anti-money laundering (AML) regulations, such as verifying the identity of customers and reporting suspicious transactions to the relevant authorities.
- Age Verification: Merchants that operate in industries where age verification is a requirement, such as adult entertainment, will need to implement age verification systems and processes to ensure that they are only providing their services
