MC GCMSReferenceManual

Global Clearing
Management System
Reference Manual
16 April 2024
TA
Contents
Contents
Summary of changes: 16 April 2024..................................................................................... 13
Chapter 1: Overview of Global Clearing Management System........................... 14

Definition of Global Clearing Management System....................................................................... 15
Who participates in clearing?.........................................................................................................15
Why do customers perform clearing?...........................................................................................16
What is the difference between clearing and settlement?.......................................................16
System integration diagram.......................................................................................................... 17
Clearing basics....................................................................................................................................... 17
Daily clearing cycle schedule...........................................................................................................17
Settlement times............................................................................................................................. 19
Characteristics of the IPM format................................................................................................19
Elements of Integrated Product Messages............................................................................19
Customer currency conversion for chargebacks (all cycles)................................................ 20
IPM message types.....................................................................................................................20
Transferring clearing data.............................................................................................................. 20
Processing cycles of clearing transactions...................................................................................21
Protection of cardholder confidential information..........................................................................24
Clearing Optimizer software...............................................................................................................24
Customer requirements and responsibilities in clearing transactions..........................................25
Acquirer responsibilities in clearing transactions........................................................................26
Issuer responsibilities in clearing transactions............................................................................ 26
Global Clearing Management System responsibilities in clearing transactions................... 27
Establishing Global Clearing Management System services.........................................................27
Documents related to Global Clearing Management System...................................................... 27
Chapter 2: Clearing processing details.................................................................................29

Creating IPM messages........................................................................................................................31
IPM message construction requirements.....................................................................................31
IPM structure.................................................................................................................................... 32
Supported and unsupported data elements of IPM format messages................................. 32
Handling of unsupported elements......................................................................................... 32
Handling of supported elements..............................................................................................33
Customer-to-customer proprietary data in the IPM format................................................... 34
Customer-generated files in the IPM format..............................................................................35
Sequence of the customer-generated IPM file......................................................................36
Files generated by Mastercard...................................................................................................... 37
Customer clearing file delivery options...................................................................................37
© 1974–2024 Mastercard. Proprietary. All rights reserved.

Global Clearing Management System Reference Manual • 16 April 2024 2
Contents
Clearing file delivery options.....................................................................................................38

Global Clearing Management System sequence of the file generated by
Mastercard...................................................................................................................................41
Merging of clearing information between cycles.................................................................. 44
Delivery of administrative messages following clearing cycles.......................................... 45
Sequence of the early reconciliation file.................................................................................46
Administrative IPM text messages used by Global Clearing Management System.......48
Broadcast text messages used by Global Clearing Management System.......................49
No Data text messages used by Global Clearing Management System..........................49
Processing and delivery of clearing files............................................................................................ 49
Clearing times...................................................................................................................................49
Methods of transmitting data to Global Clearing Management System..............................51
Bulk IDs for clearing data................................................................................................................51
Bulk IDs for the MPE........................................................................................................................52
Record Descriptor Word at the beginning of IPM messages....................................................54
Clearing Optimizer AutoEdit Software.................................................................................. 54
MHPF MIP load and unload modules.......................................................................................54
CONNECT:Direct........................................................................................................................ 54
Mastercard network through a MIP........................................................................................ 54
Processing cards that have converted from Cirrus to the Visa/PLUS ATM Network.......... 55
Automated Fuel Dispenser processing.........................................................................................56
Guiding principles........................................................................................................................56
Multi-clearing presentments for authorization transactions...................................................57
Confirmation of successful receipt and processing of Global Clearing Management
System transmission files.....................................................................................................................57
Penalty for late Global Clearing Management System retransmission requests.................58
Global Clearing Management system rejection of messages....................................................... 58
Full IPM file rejection by Global Clearing Management System.............................................. 59
Full clearing file rejections delivered with early reconciliation.............................................60
Single message rejection.................................................................................................................61
Single message rejections delivered with early reconciliation.............................................61
Reconciling single message rejections.....................................................................................63
Messages supported by Mastercard for Mexico domestic transactions................................ 63
Syntax errors for Mexico domestic transactions...................................................................63
Syntax error returns for Mexico domestic transactions.......................................................63
Error Detail: Input Sequence report and Global Collection Only Error Detail: Input
Sequence report............................................................................................................................... 64
Chapter 3: Processing cycles and regulations.................................................................. 86

Clearing processing cycles and time frames.....................................................................................88
Customer requirements and guidelines for processing transactions through Global
Clearing Management System......................................................................................................88

Contents
Customer guidelines for first presentments............................................................................... 89

Currency conversion of Global Clearing Management System transactions.................. 89
Time frame for first presentments..........................................................................................89
Risk reduction process applied to Global Clearing Management System
transactions.................................................................................................................................90
Retrieval requests and fulfillments............................................................................................... 91
Healthcare retrieval requests and fulfillments......................................................................91
Chargeback processing................................................................................................................... 92
Time frame for first chargeback..............................................................................................92
Time frames for second presentments or arbitration chargebacks.................................. 93
Time frames for disputes involving arbitration..................................................................... 93
Chargeback timeliness edits.....................................................................................................94
Exclusion from chargeback timeliness edits...........................................................................95
Processing chargeback messages............................................................................................96
Identifying the chargeback cycle........................................................................................ 96
Submitting the transaction amount for first chargebacks, second
presentments, and arbitration............................................................................................97
Chargeback procedures for purchase with cash back transactions.............................98
DE 95 (Card Issuer Reference Data)............................................................................... 100
PDS 0262 (Documentation Indicator)............................................................................101
DE 72 (Data Record)..........................................................................................................101
Getting additional information about chargebacks...........................................................101
Arbitration following chargebacks..............................................................................................103
Chargeback infractions worthy of compliance action.............................................................103
Transaction research request............................................................................................................103
Ways to perform a transaction research request....................................................................104
Capabilities of the Transaction Investigator tool.....................................................................104
Transaction Investigator product registration..........................................................................105
Accessing and using the Transaction Investigator................................................................... 105
How to set user preferences........................................................................................................ 108
Understanding fees for transaction research requests.......................................................... 109
Global Clearing Management System transaction and chargeback analysis reports............109
Chapter 4: Global Clearing Management System transaction

processing for Account Level Management services................................................. 120
Account Level Management..............................................................................................................121
Chapter 5: Mastercard contactless and PAN Mapping Service..........................122

Overview of the Mastercard contactless and PAN Mapping Service.........................................123
Mastercard contactless Mapping Service participation guidelines.......................................123
PAN Mapping Service......................................................................................................................... 124

Contents
Processing-only participation in the Mastercard contactless Mapping Service................. 124

Processing and issuance of non-card form factor participation........................................... 124
Process flow of the Mastercard PAN Mapping Service...........................................................124
Using the MPE to identify issuer account ranges participating in the contactless
Mapping Service.............................................................................................................................125
Identifying PAN Mapping within IPM Messages.......................................................................126
Contents of PDS 0001 (Mastercard Mapping Service Account Number)..................... 126
PDS 0001, subfield 1 (Account Number Type).............................................................. 127
PDS 0001, subfield 2 (Account Number)........................................................................129
Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data Input
Mode)..........................................................................................................................................129
Processing transactions through the Mastercard contactless Mapping Service............... 129
DE 22 values identify contactless transactions to Global Clearing Management
System........................................................................................................................................130
Processing First Presentment/1240 messages through the Mastercard
contactless Mapping Service..................................................................................................130
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration
Chargeback/1442 messages through the Mastercard contactless Mapping Service.131
Processing Second Presentment/1240 messages through the Mastercard
contactless Mapping Service..................................................................................................133
Processing Fee Collection (Retrieval Fee Billing)/1740 messages through the
Mastercard contactless Mapping Service............................................................................133
Summary of the contents of elements related to the Mastercard contactless
Mapping Service....................................................................................................................... 134
Interchange compliance processing............................................................................................135
Mastercom processing..................................................................................................................136
Chapter 6: Mastercard Digital Enablement Service..................................................137

Overview of Mastercard Digitial Enablement Service..................................................................138
Mastercard Digital Enablement Service process flow..................................................................138
Using the MPE to identify issuer account ranges participating in the Mastercard Digital
Enablement Service............................................................................................................................142
Identifying Mastercard Digital Enablement Service mapping within IPM messages............. 142
Contents of PDS 0001 (Mastercard Mapping Service Account Number)...........................142
PDS 0001, subfield 1 (Account Number Type)....................................................................143
PDS 0001, subfield 2 (Account Number).............................................................................144
Processing First Presentment/1240 Messages through the Mastercard Digital
Enablement Service Mapping Service............................................................................................. 144
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration
Chargeback/1442 messages through the Mastercard Digital Enablement Service.............. 145
Processing Second Presentment/1240 Messages through the Mastercard Digital
Enablement Service............................................................................................................................146

Contents
Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement

Service...................................................................................................................................................147
Summary of the contents of elements related to the Mastercard Digital Enablement
Service...................................................................................................................................................148
Interchange compliance processing................................................................................................. 149
Mastercom processing........................................................................................................................149
Chapter 7: Mastercard Transaction Enablement Service...................................... 150

Overview of Mastercard Transaction Enablement Service (TES).............................................. 151
Service Requirements for Acquirers............................................................................................151
Acquirer Accepted Errors Detail Report (IP714010-AA)........................................................ 151
Processing Message Exception/1644-691 messages through the Mastercard
Transaction Enablement Service.................................................................................................157
Contents of PDS 0445 (Original Transaction Information)..............................................157
MCC Adjustments in Brazil.......................................................................................................... 158
Chapter 8: Mastercard In Control platform....................................................................161

Overview of the Mastercard In Control platform..........................................................................162
Mastercard In Control Real Card Spend Control service.............................................................. 162
Global Clearing Management System processing for the Mastercard In Control platform..163
Mastercard In Control mapping process....................................................................................163
Chapter 9: Private Label Program........................................................................................ 166

Overview of the Private Label Program..........................................................................................167
Private Label addendum....................................................................................................................167
Private Label card activation plus initial load.................................................................................168
Participation in the Private Label Program.................................................................................... 168
Chapter 10: Clearing Chip Processing service............................................................... 169

Clearing Chip Processing service overview..................................................................................... 170
Chip to Magnetic Stripe Conversion................................................................................................ 170
Chapter 11: Extended Decimal Precision service.........................................................172

Extended Decimal Precision service overview................................................................................ 173
Extended Decimal Precision adjustment amount determination.............................................. 173
Chapter 12: Business service.................................................................................................... 177

Definition of business service............................................................................................................179
Types of business service arrangements.........................................................................................180

Contents
Business-to-business business service........................................................................................182

Customer-to-customer business service................................................................................... 182
Intracountry business service.......................................................................................................182
Intercountry business service.......................................................................................................182
Intraregional business services.................................................................................................... 182
Interregional business services.................................................................................................... 183
Participating in business service arrangements............................................................................ 183
Requirements for customers participating in business service arrangements................... 183
Business service features and qualification criteria...................................................................... 184
Additional features for business service arrangements..........................................................185
Business service calendar and transaction timeliness....................................................... 185
Interchange rates and fees structure................................................................................... 186
Manual cash disbursement accommodation fee................................................................186
Procedures for applying for a business service arrangement......................................................186
Identifying business service within IPM messages........................................................................ 186
Contents of PDS 0158 (Business Activity)................................................................................187
PDS 0158, subfield 1 (Card Program Identifier).................................................................188
PDS 0158, subfield 2 (Business Service Arrangement Type Code)................................. 188
PDS 0158, subfield 3 (Business Service ID Code)...............................................................188
Account Management System (AMS) region codes.....................................................189
Intraregional ID codes........................................................................................................ 189
Interregional ID codes.........................................................................................................190
PDS 0158, subfield 4 (Interchange Rate Designator)....................................................... 192
Acquirer creation of the outbound message with business activity..................................... 192
Issuer identification of business activity within the inbound message................................ 193
Retrieval request and retrieval fee billing transactions...........................................................194
When business service is submitted by the customer.............................................................194
Using the MPE to select the card program identifier and business service information........194
Data and message content validation by Global Clearing Management System............. 198
Step 1: validate the elements used in the selection process............................................ 198
Step 1a: validate format requirements................................................................................199
Step 1b: validate syntax/attribute of selection elements................................................ 199
Step 1c: validate content of selection elements.................................................................200
Step 2: determine whether the transaction requires business service processing....... 201
Step 3: business service arrangement selection................................................................. 202
Step 3a (standard process): retrieve and match card program identifier and
business service arrangement participation........................................................................202
Step 3b (central acquiring process): retrieve and validate issuer card program
identifier and business service arrangement participation...............................................203
Global Clearing Management System validation of business service arrangement......... 206
Step 4: validate the message reason code and reversal indicator for the card
program identifier/business service arrangement combination......................................207

Contents
Step 5: validate the processing code and reversal indicator for the card program
identifier/business service arrangement combination...................................................... 208
Step 6: determine whether IRD validation is required for the transaction.................... 208
Interchange rate designator (IRD) validation........................................................................... 209
Step 7: validate the processing code and reversal indicator for the IRD........................209
Step 8: validate product codes for the IRD..........................................................................209
Step 9: validate AB programs for the IRD............................................................................211
Step 10: validate transaction currency for the business service......................................212
Step 11: check for intracountry business service overrides.............................................. 212
Enforcement of business service arrangements...................................................................... 213
Default business service arrangements............................................................................... 214
Life cycle processing supported by Global Clearing Management System.........................214
Global Clearing Management System edits, fee assignments, and fee calculation..........217
Chapter 13: Settlement service..............................................................................................221

Definition of settlement service....................................................................................................... 222
Calculating net positions..............................................................................................................223
Settlement service levels....................................................................................................................225
Settlement service selection process...............................................................................................226
Settlement service selection........................................................................................................227
Settlement service parameters...................................................................................................228
Settlement service participation and criteria selection..........................................................229
Intracurrency settlement service selection................................................................................230
Regional settlement service selection........................................................................................ 233
Settlement date cycle calculation....................................................................................................235
Fee calculation routines for settlement service levels...................................................................236
System-provided data in PDS 0159 (Settlement Data)............................................................. 237
Settlement service advisements...................................................................................................... 238
Customer settlement advisements............................................................................................238
Chapter 14: Currency conversion...........................................................................................240

Overview of currency conversion service performed during clearing process...........................241
Amount and currency definitions................................................................................................242
Rates used for currency conversion............................................................................................ 242
Data elements calculated during currency conversion process...................................................248
Currency conversion for first presentments qualifying for regional settlement service... 248
Acquirer side data elements........................................................................................................ 248
Other acquirer calculation considerations: computed cross rates and fixed interchange 258
Issuer side data elements.............................................................................................................259
Rounding of Global Clearing Management System currency conversion............................ 267
Customer currency conversion for chargebacks (all cycles).........................................................269

Contents
Customer requirements for submitting first chargeback amounts......................................269

Acquirer processing of second presentments........................................................................... 273
Processing of pre-arbitration and arbitration case filings......................................................273
Currency conversion for settlement of fee collection messages.................................................275
Currency conversion for reversals.....................................................................................................275
Currency Update/1644-640 Messages...........................................................................................276
T057 Currency Conversion Rate File.......................................................................................... 276
Acquirer Currency Conversion Rate File.......................................................................................... 280
Originating Institution Payment Transaction Currency Conversion Rate File.......................... 281
Clearing Detail File (IP755120-AA) to facilitate acquirer reconciliation...................................282
Chapter 15: ICCR service............................................................................................................ 284

ICCR service overview.........................................................................................................................285
ICCR enrollment...................................................................................................................................285
ICCR reports.........................................................................................................................................285
ICCR bulk files...................................................................................................................................... 288
Chapter 16: Reconciliation.........................................................................................................289

Options for reconciliation of clearing and settlement data........................................................ 290
IPM reconciliation messages for clearing and settlement data..................................................290
Reconciliation messages generated by the Global Clearing Management System...........290
Financial messages considered in reconciliation.......................................................................291
Acknowledgment messages created by Global Clearing Management System................291
Notification messages.................................................................................................................. 292
Location of reconciliation totals..................................................................................................292
List of optional reconciliation categories............................................................................. 294
Account range reconciliation category............................................................................303
Transaction function reconciliation category.................................................................304
Customer Reconciliation Indicator 1 reconciliation category......................................305
Functionality in the reconciliation messages.......................................................................306
File Currency Summary/1644-680 message............................................................................307
Financial Position Detail/1644-685 message.......................................................................... 307
Choosing clearing reconciliation categories.........................................................................308
Settlement Position Detail/1644-688 message......................................................................311
Choosing settlement reconciliation categories...................................................................311
Global Clearing Management System reconciliation reports................................................ 312
IPM clearing reports: Clearing Cycle Acknowledgment and Clearing Cycle
Notification reports..................................................................................................................315
IPM clearing reports: Clearing Cycle Summary...................................................................315
Clearing Cycle Acknowledgment Report samples.........................................................316
Clearing Cycle Notification Report samples...................................................................332

Contents
Clearing Cycle Summary Reconciliation Report (IP728010-AA)..................................... 337

IPM Messages Created On Behalf of a Member Report (IP142110-AA).......................358
On-behalf Service Fee Collection Report (IP142520-AA).................................................367
Miscellaneous Override Financial Adjustments Report (IP148320-AA)......................... 368
Acquirer-funded Reward Presentments Created On Behalf of a Member Report
(IP170010-AA)..........................................................................................................................374
Consolidated on-request XML data file distribution.................................................... 374
Using both IPM messages and reports to collect information...............................................376
Accumulating reconciliation totals............................................................................................. 377
IPM reconciliation split.................................................................................................................. 378
Chapter 17: Early Reconciliation............................................................................................ 380

Overview and summary..................................................................................................................... 381
Functionalities......................................................................................................................................381
T113 File contents and details..........................................................................................................382
Comparison of T112 and T113.........................................................................................................383
Onboarding...........................................................................................................................................384
Billing..................................................................................................................................................... 385
Chapter 18: Cross-Border Fee Manager service.......................................................... 386

Cross-Border Fee Manager service overview................................................................................. 387
Cross-Border Fee Manager service enrollment..............................................................................388
Cross-Border Fee Manager service reports.................................................................................... 389
Cross-Border Fee Manager service bulk files..................................................................................391
Chapter 19: Mastercard Cardless ATM Program.........................................................392

Mastercard Cardless ATM program overview................................................................................ 393
Chapter 20: Mastercard ATM Cash Pick-Up service.................................................. 394

Mastercard ATM Cash Pick-Up service overview........................................................................... 395
Chapter 21: Fee collection..........................................................................................................396

Fee collection overview.......................................................................................................................397
Fee collection messages for retrieval fee billing.............................................................................397
Fee collection messages for purposes other than retrieval fee billing....................................... 397
Presenting the Fee Collection/1740 message...............................................................................398
Returning and resubmitting the Fee Collection/1740 message.................................................398
Reason codes for fee collection.........................................................................................................400
Global Clearing Management System minimal rounding.......................................................400
Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782.......401

Contents
Fee Collection (Clearing System-generated)/1740–783.......................................................419
Chapter 22: Reversals................................................................................................................... 428

How to create reversals......................................................................................................................429
Identification of reversal messages............................................................................................429
Identification of reversal files...................................................................................................... 429
How to send reversal messages..................................................................................................429
How to send reversal files: full files.............................................................................................430
How to send reversal files: partial files...................................................................................... 431
Using the Clearing Optimizer Message Selection Utility to create reversals......................432
Full File Reversal Utility................................................................................................................. 432
Having Mastercard reverse files..................................................................................................433
Editing reversal messages................................................................................................................. 433
Reporting reversal rejects.................................................................................................................. 433
Chapter 23: Duplicate Global Clearing Management System files,

postings, and potential duplicate rejects..........................................................................434
Global Clearing Management System editing for duplicate files...............................................435
Reasons for duplicate Global Clearing Management System files or postings....................... 435
Identification of duplicate Global Clearing Management System postings.............................435
Potential duplicate clearing transaction rejections.......................................................................436
Chapter 24: Collection-only transaction reporting.....................................................437

Collection-only transactions..............................................................................................................438
Global Collection Only Data Collection Program...........................................................................438
Collection-only transactions that are not permitted for Global Collection Only................439
Reversing Collection-only data....................................................................................................439
Editing collection-only data..........................................................................................................439
Reporting GCO Data Collection Program rejects.................................................................... 439
Collection-only activity in relation to reconciliation messages.............................................. 440
IPM First Presentment/1240: Global Collection Only format.....................................................440
IPM 1240 Global Collection Only data elements......................................................................440
Global Collection Only mapping for single message system transactions................................444
Mapping 0200 to 1240.................................................................................................................444
Chapter 25: Bilateral settlement activity.........................................................................452

Definition of bilateral settlement agreement................................................................................453
Identification of bilateral settlement transactions................................................................. 453
Editing bilateral transactions............................................................................................................453
Global Clearing Management System calculations for bilateral settlement transactions....454

Contents
Bilateral transactions in relation to reconciliation messages......................................................455
Chapter 26: Electronic commerce.........................................................................................456

Electronic commerce...........................................................................................................................457
Process for an electronic commerce transaction..................................................................... 457
Security of electronic commerce transactions......................................................................... 458
Universal Cardholder Authentication Field................................................................................458
Relationship between e-commerce and Mastercard Identity Check....................................459
UCAF in Digital Secure Remote Payments................................................................................459
Chapter 27: Acquirer interchange reporting...................................................................460

Interchange Detail Report (IP755020-AA).....................................................................................461
Chapter 28: Acquirer clearing detail reporting..............................................................468

Clearing Detail Report (IP755120-AA)........................................................................................... 469
Chapter 29: Acquirer ALM reconciliation reporting....................................................476

ALM Reconciliation Data Report (IP755220-AA)..........................................................................477
Chapter 30: Acquirer Currency Conversion Rate File format.............................. 480

Acquirer Currency Conversion Rate File format.............................................................................481
Chapter 31: Originating Institution Payment Transaction Currency

Conversion Rate File format..................................................................................................... 488
Originating Institution Payment Transaction Currency Conversion Rate File format............ 489
Notices.................................................................................................................................................... 492

Summary of changes: 16 April 2024
Summary of changes: 16 April 2024

This document reflects changes associated with the Global Clearing Management System
Reference Manual. To locate these changes online, click the related hyperlinks.
Description of Change Source Where to Look

Added new chapter for Early AN 6264 Introducing Early Early Reconciliation
Reconciliation Reconcilation Service
Enhancements and Fee in Select
Regions
AN 6026 Early Reconcilation
Service
Updated logical file limitations AN 7719 Release 24.Q2 Sequence of the early
Miscellaneous Core Systems reconciliation file
Updates
Updated Clearing Detail Report AN 7705 Enhancing the Clearing Detail File (IP755120-
Mastercard Identity Check AA) to facilitate acquirer
Program reconciliation
Added message values for Syntax AN 7571 Modifying Processing for Syntax error returns for Mexico
error returns for Mexico domestic Non-Mastercard Scheme domestic transactions
transactions Messages in Mexico
Revised for clarification Currency conversion Acquirer side data elements
Revised for clarification Retirement of 3DS1 SecureCode Electronic commerce
& SPA1 AAVs

Overview of Global Clearing Management System
Chapter 1 Overview of Global Clearing Management

System
This section provides the reader with a basic understanding of what Global Clearing Management
System is, what message types it uses, and what components compose it or interact with it.
Definition of Global Clearing Management System.......................................................................................15

Who participates in clearing?........................................................................................................................15
Why do customers perform clearing?..........................................................................................................16
What is the difference between clearing and settlement?......................................................................16
System integration diagram..........................................................................................................................17
Clearing basics.......................................................................................................................................................17
Daily clearing cycle schedule..........................................................................................................................17
Settlement times.............................................................................................................................................19
Characteristics of the IPM format............................................................................................................... 19
Elements of Integrated Product Messages...........................................................................................19
Customer currency conversion for chargebacks (all cycles)............................................................... 20
IPM message types....................................................................................................................................20
Transferring clearing data..............................................................................................................................20
Processing cycles of clearing transactions..................................................................................................21
Protection of cardholder confidential information......................................................................................... 24
Clearing Optimizer software.............................................................................................................................. 24
Customer requirements and responsibilities in clearing transactions.........................................................25
Acquirer responsibilities in clearing transactions.......................................................................................26
Issuer responsibilities in clearing transactions............................................................................................26
Global Clearing Management System responsibilities in clearing transactions.................................. 27
Establishing Global Clearing Management System services........................................................................ 27
Documents related to Global Clearing Management System......................................................................27

Definition of Global Clearing Management System
Definition of Global Clearing Management System

The Global Clearing Management System manages the clearing processing of credit
transactions and debit transactions (in offline mode). Global Clearing Management System is a
centralized clearing facility owned and operated by Mastercard for the daily processing and
routing of worldwide financial transactions between Mastercard and its customers.
Clearing is the movement of data from the customer to Mastercard and from Mastercard to
the customer.
The Global Clearing Management System processes clearing transactions, using the Integrated
Product Messages (IPM) format, by
• editing transactions for adherence to Mastercard processing standards
• performing currency conversion, assessing interchange fees, and calculating settlement
values for each transaction
• providing currency conversion rates for customer use
• routing clearing transactions (messages) to the appropriate customer or vendor
• providing acknowledgment messages to advise the originator of the transaction that Global
Clearing Management System received the transaction
• providing notification messages to advise the receiver of the transaction that Global Clearing
Management System has processed clearing transactions for that receiver
• providing error messages and reports to advise the originator of an invalid transaction that
Global Clearing Management System rejected the transaction
• creating reconciliation reports
• providing summarized settlement request information to the Settlement Account
Management (S.A.M.) system
• providing clearing information to other Mastercard systems such as the Mastercom
electronic imaging system, and the Mastercard Consolidated Billing System (MCBS), and
Data Warehouse, and
• providing optional on-behalf services for customers such as Account Level Management,
mapping services for both Mastercard® contactless and Mastercard In Control™
Commercialization, Clearing Chip Processing service, and several clearing on-behalf reports.
Who participates in clearing?

Customers participate in clearing. A customer can be an issuer, an acquirer, or both.
The issuer is the customer that maintains the contractual relationship with the cardholder.
The acquirer is the customer that has the contractual relationship with acceptors to process
payment account transactions and to reimburse the acceptors for those transactions.
Mastercard allows an acquirer and an issuer involved in a transaction to clear and settle the
transaction.

Why do customers perform clearing?
Why do customers perform clearing?

Customers perform clearing to exchange transaction data. From the data provided in clearing,
Global Clearing Management System derives the amounts for settlement.
Settlement provides acquirers with the funds to reimburse their acceptors and collects funds
from issuers.
Customers also use clearing data for some of their back-office processes, including posting to
cardholder accounts.
Customers that issue Mastercard cards and customers contracting with acceptors to accept
cards must perform clearing to exchange transaction data.
What is the difference between clearing and settlement?

There are distinct differences between the clearing and settlement processes.
Clearing is the process of exchanging clearing data. For example, clearing includes sending
transactions from the acquirer to the issuer for posting to the cardholder account (also called
presentment). Global Clearing Management System accepts the data, edits it, assesses the
appropriate fees, and routes it to the appropriate receiver. The clearing messages contain data
but do not actually exchange or transfer funds.
Settlement is the process by which funds are exchanged. The funds represent the net equivalent
of monetary value from clearing processing. These funds are exchanged each day between
customers for the net monetary value of the cleared transactions. Mastercard calculates in
reconciliation currency the net position of each customer involved in the clearing process and
performs the settlement functions of
• sending advisements and
• transferring funds (when applicable).
Global Clearing Management System manages clearing. The Mastercard Settlement Account
Management (S.A.M.) system supports settlement. Global Clearing Management System feeds
clearing data to S.A.M.
NOTE: For more information about settlement, refer to the Settlement Manual.

System integration diagram
System integration diagram

The system integration diagram shows the systems with which Global Clearing Management
System interacts.
Clearing basics
To understand clearing through Global Clearing Management System, customers should
understand clearing basics, including
• when clearing can occur
• when settlement occurs
• the Integrated Product Messages (IPM) format (the clearing message format)
• clearing message types
• means of transferring clearing data, and
• processing cycles.
Daily clearing cycle schedule

The sending customer can submit transaction data for clearing to the St. Louis Operations
Center (Central Site) seven days a week, 24 hours a day.
NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists exclusively for
Mexico domestic switching transactions.
The following table shows the daily schedule for the six primary clearing cycles and the seventh
clearing cycle designated for Mexico domestic switching transactions.

Daily clearing cycle schedule
Business Clearing Clearing Clearing Clearing Clearing Clearing

Day Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
Sunday Saturday Saturday Sunday Sunday Sunday Sunday
18:00 21:00 0:00 3:00 6:00 8:00
Monday Sunday Sunday Monday Monday Monday Monday

18:00 21:00 00:00 03:00 06:00 08:00
Tuesday Monday Monday Tuesday Tuesday Tuesday Tuesday

18:00 21:00 00:00 03:00 06:00 08:00
Wednesday Tuesday Tuesday Wednesday Wednesday Wednesday Wednesday

18:00 21:00 00:00 03:00 06:00 08:00
Thursday Wednesday Wednesday Thursday Thursday Thursday Thursday

18:00 21:00 00:00 03:00 06:00 08:00
Friday Thursday Thursday Friday Friday Friday Friday

18:00 21:00 00:00 03:00 06:00 08:00
Saturday Friday Friday Saturday Saturday Saturday Saturday

18:00 21:00 00:00 03:00 06:00 08:00
The following table shows the daily schedule for the seventh clearing cycle designated for
Business Day Clearing 7 (Mexico domestic switching transactions)

Sunday Sunday, 11:00
Monday Monday, 11:00
Tuesday Tuesday, 11:00
Wednesday Wednesday, 11:00
Thursday Thursday, 11:00
Friday Friday, 11:00
Saturday Saturday, 11:00
Refer to the Clearing Processing Details chapter of the Global Clearing Management System
Reference Manual for clearing file delivery options.

Settlement times
Settlement times
Mastercard settles with most customers Monday through Friday following the sixth clearing
cycle cutoff. However, for intracurrency settlement participants, the option to settle after any
clearing cycle is available.
Customers receive settlement advisements from the Mastercard Settlement Account
Management (S.A.M.) system.
The deadline for U.S. dollar funds transfer is 14:00 St. Louis, Missouri, U.S.A. time.
Transactions processed in the Saturday and Sunday clearing cycles are included in the Monday
net settlement totals. Advisements that customers receive on Monday report Saturday, Sunday,
and Monday settlement totals. Settlement can occur only after clearing has already occurred.
NOTE: For more information about settlement, refer to the Settlement Manual.
Characteristics of the IPM format

Customers send clearing data to Global Clearing Management System using the Integrated
Product Messages (IPM) format, which is based on the ISO 8583-1993 format and has the
following characteristics.
• Variable-length: A particular element in the message or the entire message can have a
different length based on the data it contains.
• Variable-format: The location of a particular element within a message can vary between
messages, depending on the other elements that are present in each message.
• Bit map orientation: The bit map indicates whether data elements are present or absent
from the message.
Elements of Integrated Product Messages

Integrated Product Messages (IPMs) contain four types of message elements.
• Message Type Identifier (MTI): Identifies the purpose of the message, such as Financial,
Administrative, or Fee Billing.
• Two bit-maps: A series of binary digits (bits) that indicate the presence or absence of data
elements.
• Data elements: Message elements, defined within the ISO 8583-1993 specification that may
contain data.
• Private data subelements: Message elements that Mastercard defined to support data not
defined within the ISO 8583-1993 specification.

Customer currency conversion for chargebacks (all cycles)

Customers must meet specific requirements for submission of chargeback amounts (including
currency conversion of chargeback amounts) depending on the phase of the chargeback life
cycle.
IPM message types

The IPM message uses a combination of two elements to define the message type.
Message Type Identifier (MTI) + Data Element (DE) 24 (Function Code)
The MTI identifies the general ISO message type. Valid MTIs include the following.
MTI Description
1240 Presentment
1442 Chargeback
1644 Administrative
1740 Fee Collection
The Function Code more specifically defines the message’s purpose.

For example, the combination of an MTI value of 1644 plus a DE 24 (Function Code) value of
697 indicates a file header.
Mastercard documentation refers to IPM message types by stating the MTI value and then the
function code value, separated by a hyphen, as follows: File Header/1644-697.
NOTE: For more information about the construction of the IPM message, refer to the IPM Clearing
Formats manual and the Clearing Processing Details chapter of the Global Clearing Management
System Reference Manual.
Transferring clearing data

Customers can choose from multiple methods of transmitting data.
• Mastercard interface processor (MIP): A mid-range central processing unit (CPU) that
accesses the customer gateway to the Mastercard Network. The sending customer captures
data and transmits it to Global Clearing Management System at Central Site.
• Mastercard File Express: Transfer through dial-up access between remote personal
computers and a Central Site-based mainframe using modems and communications
software developed and licensed by Mastercard. The Mastercard File Express Client Users’
Guide contains more information about this transmission method.
• CONNECT:Direct: Mastercard mainframe to customer mainframe using dedicated network
communication facilities. This facility supports all bulk data types.

Processing cycles of clearing transactions

There are five processing cycles through which a clearing transaction may travel. Customers can
submit clearing transactions from any of these processing cycles in one file.
1. First Presentment
The acquirer presents transaction data to the issuer.
The following diagram illustrates the movement of data in processing a first presentment .
2. Retrieval requests and fulfillments

An issuer can request the transaction slip from the acquirer if there is any question about
the transaction that the original document or facsimile may resolve.
To complete this cycle, the acquirer either fulfills the issuer’s request or sends a message
documenting the inability to honor the request. Mastercard encourages the use of the
Mastercom electronic imaging system to deliver transaction slips and other information
concerning the request.
3. Chargeback
After the initial presentment of the cardholder transaction from the acquirer to the issuer,
the issuer may determine that, for a given reason, the transaction may not be valid. The
issuer may return the transaction to the acquirer as a chargeback.
The issuer can submit a chargeback if the issuer or the cardholder disputes the first
presentment. The chargeback must be processed within the designated time frames after
receiving the first presentment (These time frames vary according to the chargeback
reason). This returns the transaction to the acquirer for possible remedy.
4. Second Presentment
The acquirer may return the transaction with additional information as a second
presentment. The acquirer may return the second presentment to correct the original defect
or to indicate a disagreement with the issuer’s chargeback.
5. Arbitration chargeback
If the issuer continues to dispute the item, it returns the transaction to the acquirer for the
second time as an arbitration chargeback. This cycle is not supported for ATM, Maestro, or
Cirrus transactions.

Arbitration
The final phase in the chargeback process is arbitration. A customer may petition Mastercard to
determine responsibility for a transaction after unsuccessful dispute resolution through the
chargeback process outlined above.
Compliance
The customers request that Mastercard resolve a rules violation or a dispute between the
customers when no remedy exists through the chargeback life cycle.
Diagram of the transaction processing cycles

The following diagram shows the relationships of customers during the first three cycles of
transaction processing.


Protection of cardholder confidential information
Protection of cardholder confidential information

Customers are required to protect all data files of and storage methods for cardholder
confidential information that is in electronic form and while the information is in storage per the
Payment Card Industry Data Security Standard (PCI DSS).
This protection should be performed by encryption or other appropriate compensating controls.
In addition, this information must be placed in secure areas with adequate controls (which may
include encryption or other appropriate compensating controls) to prevent unauthorized access.
Customers will dispose of confidential information in accordance with customer policies, to
avoid exposing or compromising cardholder confidential information.
Acquirers and issuers that use either the Clearing Optimizer: Mainframe or Clearing Optimizer:
AutoEdit software must ensure that data files of and the storage methods used for cardholder
confidential information are protected from unauthorized access using PCI DSS.
Clearing Optimizer software

Mastercard has developed the Clearing Optimizer software package to help customers to
interact with IPM formatted messages.
The software
• emulates many of the editing functions performed by Global Clearing Management System
at Central Site
• helps the customer to manipulate IPM messages
• parses or rebuilds IPM messages for use by other software tools, and
• provides a file of customer parameters for use in populating IPM messages.
Customers that choose to use this software install it at their sites on their own hardware.
NOTE: For more information about the distributed software, refer to either the Clearing Optimizer:
Mainframe manual or the Clearing Optimizer: AutoEdit manual.
In addition to the distributed software described above, Mastercard will deliver Member Host
Preparation Facility (MHPF) communication software upon request. The purpose of the
software is to assist in the management of data transfers through a Mastercard Interface
Processor (MIP).
The MHPF communication software
• transmits files through the TCP/IP transmission protocol
• provides modules to perform some very basic file structure edits on non-clearing files, and
• provides MIP Bulk File Advisement software to perform queries and reporting of bulk files
received and available for unloading from their MIP.

Customer requirements and responsibilities in clearing transactions
Bulk File Advisement Module (module not specific to clearing format files)
Module Description
MH410010 MIP Bulk File Advisement
NOTE: For more information about the MHPF software, refer to the File Transfer Manual and the Data
Communications Manual.
NOTE: Mastercard will deliver modules MH590010 and MH700010 solely to support the existing
compile and link edit processes for the driver routines that contain them. Customers no longer will run
the modules themselves.
Customer requirements and responsibilities in clearing transactions

All customers have certain rights and obligations in the processing and settlement of clearing
transactions and must accept such items received in clearing as specified in this manual.
All customers must present (submit) and accept specific messages electronically through Global
Clearing Management System. Chapter 2 of this manual and the IPM Clearing Formats manual
define the specific messages that customers are required to use for the clearing of data.
An issuer receiving a presented transaction that is incomplete, invalid, or otherwise not in
conformance with the provisions of this manual or the IPM Clearing Formats manual has specific
rights to return the transaction to the acquirer (chargeback). The acquirer has specific rights to
present the transaction again to the issuer so that the acquirer can remedy the transaction
(second presentment). In turn, the issuer may originate another chargeback (an arbitration
chargeback) if the acquirer incorrectly presented it a second time.
All customers are responsible for sending, receiving, and balancing Global Clearing Management
System messages.
All customers should balance the daily net settlement advisement to their IPM reconciliation
messages, Global Clearing Management System reconciliation reports, or both.
NOTE: The daily net settlement advisement is the definitive authority about funds movement.
Differences between the Global Clearing Management System reconciliation messages and reports
and the settlement advisement may occur from time to time because of risk management edits
present in the settlement system.
NOTE: For more information about net settlement procedures, refer to the Settlement Manual.

Acquirer responsibilities in clearing transactions
Acquirer responsibilities in clearing transactions

There are a number of tasks for which acquirers are responsible during the processing and
settlement of clearing transactions.
Acquirers must
• ensure that presented data is accurate, complete, and in compliance with the Mastercard
rules. Further, acquirers are responsible for editing and monitoring all messages sent and
received.
• edit and balance the prepared data before submission to Central Site through MIP,
Mastercard File Express, or CONNECT:Direct. Make any necessary corrections to the input of
data based on the edits, using the Clearing Optimizer software (if supported). Customers
using the Clearing Optimizer software must always work with the most current version.
• transmit the prepared data to Global Clearing Management System to await processing by
Central Site.
• keep a transmission log or listing of each file sent to Global Clearing Management System.
• verify the incoming acknowledgment messages from Global Clearing Management System
against outgoing file data, and resubmit any rejected items or files based on the rejected
messages that Global Clearing Management System returns.
• receive all first chargeback and arbitration chargeback messages submitted by issuers. In
accordance with the Mastercard rules and procedures outlined in the Chargeback Guide, the
acquirer may either accept responsibility for the transactions or
– Second present the transactions on receipt of a first chargeback, or
– File for arbitration on receipt of an arbitration chargeback.
• capture and process incoming retrieval requests.
• initiate fee collection messages in accordance with the format and details defined in IPM
Clearing Formats.
• edit and reconcile messages sent and received by balancing the IPM acknowledgment and
notification reconciliation messages or reports to their internal system reports of outgoing
and incoming data. Acquirers must ensure that they have reconciled all rejected and
accepted messages.
Issuer responsibilities in clearing transactions

There are a number of tasks for which issuers are responsible during the processing and
settlement of clearing transactions.
Issuers must
• receive all financial records as presented by the acquirer and ensure that all data necessary
to identify the transaction is provided to the cardholder or is readily accessible for
transaction research and monitoring purposes
• reconcile net settlement figures
• edit and reconcile retrieval, chargeback, and fee collection messages to ensure that the issuer
sends complete and accurate detail in compliance with Mastercard operating standards

Global Clearing Management System responsibilities in clearing transactions
• edit and reconcile messages received by balancing the IPM notification reconciliation
messages or reports to the issuer's internal system reports of incoming data sent from
Mastercard
• capture and process retrieval request fulfillments when received, and
• initiate retrieval, chargeback, and fee collection messages in accordance with
– the formats and details defined in IPM Clearing Formats and
– Mastercard chargeback rules and procedures outlined in the Chargeback Guide.
To reconcile messages sent, issuers must balance the IPM acknowledgment reconciliation
messages to their internal system reports of outgoing data sent to Mastercard.
Global Clearing Management System responsibilities in clearing transactions

The Global Clearing Management System serves a variety of functions.
Global Clearing Management System
• edits, balances, and distributes clearing data received from each customer
• determines the net amount for each customer's daily incoming and outgoing work (Global
Clearing Management System produces a net settlement figure in reconciliation currency
that it sends to the Mastercard Settlement Account Management (S.A.M.) system.)
• verifies and adjusts fee calculations when necessary
• rejects individual messages or entire files and then notifies the sending customer of the
rejection
• updates accepted file information for each customer sending files
• produces and sends clearing files to participating customers, and
• provides currency conversion rates to customers at their option.
Establishing Global Clearing Management System services

Customers must provide Mastercard with various information, including
• current processing procedures
• testing preferences
• contacts, and
• requested Global Clearing Management System clearing options.
Customers provide this data by contacting their account manager or Mastercard Customer
Implementation Specialist.
Documents related to Global Clearing Management System

These documents and resources provide information related to the subjects discussed in the
Global Clearing Management System Reference Manual.
• Authorization and clearing release announcements

Documents related to Global Clearing Management System
• Authorization Manual
• Chargeback Guide
• Clearing Optimizer Mainframe
• Clearing Optimizer AutoEdit
• Customer Interface Specification
• Data Communications Manual
• File Transfer Manual
• Global Clearing Management System Parameter Table Layouts
• Interchange Manual
• IPM Clearing Format Error Numbers and Messages
• IPM Clearing Formats
• Mastercard Clearing Presentment Simulator Guide
• Mastercard MoneySend and Funding Transactions Program Standards
• Mastercard Rules
• Quick Reference Booklet
• Security Rules and Procedures
• Transaction Processing Rules

Clearing processing details
Chapter 2 Clearing processing details

This section presents details about the functionality and support that Global Clearing Management
System provides. It addresses how to send and receive messages and how the system edits certain
transactions.
Creating IPM messages.......................................................................................................................................31

IPM message construction requirements....................................................................................................31
IPM structure....................................................................................................................................................32
Supported and unsupported data elements of IPM format messages.................................................32
Handling of unsupported elements........................................................................................................ 32
Handling of supported elements.............................................................................................................33
Customer-to-customer proprietary data in the IPM format...................................................................34
Customer-generated files in the IPM format.............................................................................................35
Sequence of the customer-generated IPM file.....................................................................................36
Files generated by Mastercard......................................................................................................................37
Customer clearing file delivery options..................................................................................................37
Clearing file delivery options....................................................................................................................38
Global Clearing Management System sequence of the file generated by Mastercard.................41
Merging of clearing information between cycles..................................................................................44
Delivery of administrative messages following clearing cycles..........................................................45
Sequence of the early reconciliation file................................................................................................ 46
Administrative IPM text messages used by Global Clearing Management System...................... 48
Broadcast text messages used by Global Clearing Management System......................................49
No Data text messages used by Global Clearing Management System......................................... 49
Processing and delivery of clearing files............................................................................................................49
Clearing times..................................................................................................................................................49
Methods of transmitting data to Global Clearing Management System.............................................51
Bulk IDs for clearing data...............................................................................................................................51
Bulk IDs for the MPE.......................................................................................................................................52
Record Descriptor Word at the beginning of IPM messages...................................................................54
Clearing Optimizer AutoEdit Software..................................................................................................54
MHPF MIP load and unload modules......................................................................................................54
CONNECT:Direct........................................................................................................................................54
Mastercard network through a MIP........................................................................................................54
Processing cards that have converted from Cirrus to the Visa/PLUS ATM Network......................... 55
Automated Fuel Dispenser processing........................................................................................................ 56
Guiding principles.......................................................................................................................................56

Multi-clearing presentments for authorization transactions.................................................................. 57

Confirmation of successful receipt and processing of Global Clearing Management System
transmission files.................................................................................................................................................. 57
Penalty for late Global Clearing Management System retransmission requests................................58
Global Clearing Management system rejection of messages.......................................................................58
Full IPM file rejection by Global Clearing Management System............................................................. 59
Full clearing file rejections delivered with early reconciliation............................................................60
Single message rejection................................................................................................................................61
Single message rejections delivered with early reconciliation............................................................61
Reconciling single message rejections.................................................................................................... 63
Messages supported by Mastercard for Mexico domestic transactions............................................... 63
Syntax errors for Mexico domestic transactions..................................................................................63
Syntax error returns for Mexico domestic transactions......................................................................63
Error Detail: Input Sequence report and Global Collection Only Error Detail: Input Sequence
report.................................................................................................................................................................64

Creating IPM messages
Creating IPM messages

The Global Clearing Management System processes the Integrated Product Messages (IPM)
format. IPM messages contain various data elements.
Element
Element Number Description
Message Type Identifier (MTI) ---- Describes the message class.
Primary Bit Map ---- A series of binary digits (bits) that indicate the
presence or absence of DE 1-DE 64.
Secondary Bit Map DE 1 A series of binary digits (bits) that indicate the
presence or absence of DE 65-DE 128.
Function Code DE 24 A three-position data element indicating the specific

purpose of a message within the message class. The
function code provides additional information about
the MTI or message class (such as first presentment,
second presentment partial, or first chargeback full).
Message Reason Code DE 25 A four-position data element indicating the reason for
sending the message. Most, but not all, IPM messages
require the message reason code.
Message Number DE 71 An eight-position data element that monitors the

integrity and continuity of the files being exchanged.
The IPM Clearing Formats manual documents the specifications for each data element and
private data subelement.
IPM message construction requirements

Users must meet various requirements when constructing Integrated Product Messages (IPM)
messages.
• The file header and file trailer for each logical file must contain the same value in PDS 0105
(File ID).
• Every message must contain the message type identifier (MTI) in positions 1-4, followed by
both bit maps in positions 5-20, followed by the International Organization for
Standardization (ISO)-defined data elements (DE 1-DE 128) in ascending sequence.
• DE 24 (Function Code) and DE 71 (Message Number) must be present in every IPM message.
• DE 71 must always contain 00000001 in the file header. For each subsequent message in the
logical file, the value in DE 71 must be greater than the value in the previous message (The
only exception to this occurs when Global Clearing Management System rejects a message,

IPM structure
in which case Global Clearing Management System returns the message to the customer
with the original DE 71 value).
NOTE: Customers must not populate an element with all high values, such as hexadecimal FF, or all low
values, such as hexadecimal 00, within clearing messages. Global Clearing Management System edits
for all low and high values and will reject messages that contain them.
IPM structure
The structure of an IPM message has several identifying components.
Supported and unsupported data elements of IPM format messages

Within the IPM ISO 8583-1993 format, there are data elements supported by Mastercard and
data elements not supported by Mastercard. There are also data elements that Mastercard
may support for future use.
Customers should refer to the IPM Clearing Formats manual for a description of the supported
data elements and private data subelements that customers may submit in IPM format
messages.
Mastercard does not reject customer-generated messages for including extraneous data or
unsupported elements. Global Clearing Management System simply drops the undefined
elements before sending such messages to the receiving customer. This protects the data
integrity and validity of files generated by Mastercard.
Customers managing their inbound clearing files should know that Mastercard limits the data
sent to customers to the data elements and private data subelements defined for use in the
IPM Clearing Formats manual.
Handling of unsupported elements

A message containing unsupported data elements or private data subelements results may not
be accepted by Global Clearing Management System.
Global Clearing Management System does not edit and does not include, in any accepted
message to the transaction destination, unsupported data elements or private data
subelements, nor any data elements not supported for specific message type identifier (MTI)

Handling of supported elements
and DE 24 (Function Code) combinations. This includes elements and subelements that
Mastercard will support in the future.
For example, the IPM Clearing Formats manual defines DE 17 (Capture Date) as an element
that Mastercard does not currently support and does not plan to support in the future. Global
Clearing Management System does not edit DE 17 or include it in any accepted message to the
transaction destination.
In addition to the above examples, some data elements are not valid for specific MTI and DE 24
combinations. For example, DE 55 (Integrated Circuit Card System Related Data) is a valid data
element for first presentment, second presentment, first chargeback, and arbitration
chargeback messages. However, it is not a valid data element for financial detail addendum
messages. Therefore, Global Clearing Management System would not forward it to the
transaction destination if it were included in a financial detail addendum message by the sender
of the message.
Mastercard follows the IPM Clearing Formats manual data element and private data
subelement specifications.
As shown in the following figure, Global Clearing Management System drops an unsupported
data element or private data subelement if Global Clearing Management System accepts the
message. An accepted message is one that Global Clearing Management System processes
because it does not fail format, syntax, content, or context edits.
Global Clearing Management System Handling of an Unsupported Element
Handling of supported elements

Global Clearing Management System accepts a message if it contains supported elements.
Global Clearing Management System includes a supported data element or private data
subelement if Global Clearing Management System accepts the message. For example,
Mastercard considers PDS 1000-1099, which contain customer-to-customer proprietary data,
to be supported elements. Global Clearing Management System always forwards proprietary
elements to the destination for accepted messages, and always returns them to the sender for
rejected messages. As shown in the following figure, Global Clearing Management System
forwards DE 38 (Approval Code) if the First Presentment/1240-200 is accepted.
Global Clearing Management System handling of a supported element

Customer-to-customer proprietary data in the IPM format
Global Clearing Management System accepts a particular data element or private data
subelement if the element is
• valid
• parseable, and
• identified as a recognized element for the transaction function (message type identifier
(MTI) and DE 24 [Function Code]), regardless of whether the field is mandatory, optional, or
conditional.
Valid means that the data element or private data subelement passes any format, syntax,
content, or context edits applied during the edit process. For example, a private data
subelement that the IPM Clearing Formats manual defines as containing only numeric digits
must contain only numeric digits to be considered valid. Chapters 7, 8, 9, and 10 of the IPM
Clearing Formats manual document the specifications for each data element and private data
subelement.
For example, within a first presentment, the IPM Clearing Formats manual defines
• PDS 0165 (Settlement Indicator) as a mandatory field for a first presentment, and
• PDS 0171 (Alternate Acceptor Description Data) as optional (that is, the transaction
originator may or may not include it) in a first presentment.
IF the transaction originator THEN Global Clearing

includes… AND… Management System will…
Both fields described above Both are valid Forward the fields to the
transaction destination.
Both fields described above Any field is invalid Reject the message and return
both fields.
Customer-to-customer proprietary data in the IPM format

Mastercard has allocated 100 private data subelement within the range of 1000 through 1099
for customer proprietary use. This enables customers to exchange customer-defined proprietary
data with other customers who process in the Integrated Product Message (IPM) format.
Customers can use these private data subelements to exchange information that the IPM
format does not define and capture in other elements. Customers can present up to 999 bytes
of non-binary data (including tags, lengths, and data for all PDS in the 1000-1099 range) within
a single IPM message.
To accommodate varying global business requirements, customers have two options for
presenting their data:
• Customers who want to use their own parsing routines to parse the proprietary data may
provide one string of up to 992 characters of data within a single private data subelement in
the 1000-1099 range. With this option, customers would provide a single private data

Customer-generated files in the IPM format
subelement tag (ID) and one length definition, followed by the desired data string. Global
Clearing Management System will leave this customer data intact.
• Customers who would like Mastercard to parse the proprietary data may use up to 100
individual private data subelement in the 1000-1099 range to define their data. With this
option, customers must use the normal tag-length-data private data subelement encoding
structure to define as many private data subelements as they choose to use. Customers may
provide up to 999 positions total (including tags, lengths, and data for all private data
subelements within the range) per message.
Customers may present proprietary data in private data subelements 1000-1099 in any of the
IPM message types for which the customer is the originator. They may include the customer-to-
customer proprietary private data subelements in any of the Additional Data DEs (DE 48, DE
62, DE 123, DE 124, and DE 125), which are the carrier data elements for private data
subelements. Customers also should be prepared to receive private data subelements
1000-1099 in any of the carrier data elements.
The contents of PDSs 1000-1099 must be in display format. The Global Clearing Management
System does not accommodate binary data in the private data subelements dedicated for
customer-to-customer proprietary data.
Customers must treat the data in the Customer-to-Customer Proprietary private data
subelements as confidential. Customers may disregard unsolicited Customer-to-Customer
Proprietary private data subelement data, and may discard it, provided this is done in a manner,
which preserves the confidentiality of the data.
Customer-generated files in the IPM format

The Integrated Product Message (IPM) format provides a flexible structure for customer-
generated logical and physical files.
Logical file
logical file is an offline file that contains a single file header, followed by various IPM clearing
messages, followed by a single file trailer.
Physical file
A physical file is an offline transmission that is a single dataset or bulk file and that contains one
or more logical files. There is no transmission header or transmission trailer to enclose an offline
transmission.
A GCMS limitation requires that the number of logical files within a physical file must not
exceed 20,000. If the allowed limit is exceeded, then customers will be impacted by Mastercard
actions to split the logical files between multiple physical files, not receiving reconciliation as
expected, and could miss the preferred settlement cycle.
Offline
As used above, offline refers to an operating mode in which current active files are not being
viewed during the time the transaction is conducted.

Sequence of the customer-generated IPM file
Global Clearing Management System processes each logical file within a physical file
independently. The transmission originator determines whether to submit a single logical file or
multiple logical files within a physical file.
Logical files within a physical file
There are no requirements related to the grouping of IPM messages into logical files. For
example, one transmission originator may choose to create a separate logical file for each
ending customer ID. Another transmission originator may choose to create one logical file for
chargebacks and retrievals and another for presentments.
Sequence of the customer-generated IPM file

Customers must adhere to certain rules when constructing IPM files.
There are relatively few sequencing rules for customer-generated logical files. The customer may
construct its IPM outbound logical file using any message sequence, with the following
exceptions:
• A file must begin with a file header message and end with a file trailer message.
• The file ID in the header must match the file ID in the trailer.
• DE 71 (Message Number) in the file header message always must contain 00000001.
Subsequent DE 71 values must be incremented, so that each succeeding DE 71 value is
greater than the previous.
• Financial detail addendum messages must immediately follow the associated first
presentment messages.
IPM files may contain data from multiple customer IDs and may mix Global Collection Only data
with other clearing data.
For example, customer 004444 processes clearing data for customer IDs 002222 and 003333.
The following table specifies the contents of a possible clearing file that customer 004444 could send.
MTI-Function Code Description Endpoint, From:

1644-697 File Header 004444

Files generated by Mastercard
MTI-Function Code Description Endpoint, From:

1644-603 Retrieval Request 002222
1240-205 Second Presentment (Full) 003333
1240-200 First Presentment: Non-Global Collection Only 002222
1644-696 Financial Detail Addendum 002222
1740-700 Fee Collection 003333
1240-200 First Presentment: Global Collection Only 002222
1240-282 Second Presentment (Partial) 002222
1240-200 First Presentment: Global Collection Only 003333
1442-450 First Chargeback (Full) 003333
1442-451 Arbitration Chargeback (Full) 003333
1240-200 First Presentment 003333
1644-695 File Trailer 004444
Files generated by Mastercard

Files generated by Mastercard (incoming to customers) have unique options, requirements, and
structure.
Customer clearing file delivery options

Customers have multiple options from which they may choose to receive clearing files.
Each customer must receive data from all six cycles per day. In addition to the six primary
clearing cycles, a seventh clearing cycle exists exclusively for Mexico domestic switching
transactions. If a customer participates in the seventh cycle for the Mexico domestic service,
they must receive clearing files in the seventh clearing. All customers will continue to receive the
outbound from the sixth clearing including customers under the Mexico domestic processing.
Default delivery cycles
Cutoff Time (Central

Cycle Number time) File Delivery Default Cycle
1 18:00 Yes
2 21:00 Yes
3 00:00 Yes
4 03:00 Yes

Clearing file delivery options
Cutoff Time (Central

Cycle Number time) File Delivery Default Cycle
5 06:00 Yes
6 (Final) 08:00 Yes
7 (Mexico domestic switching 11:00 Yes
transactions)
Customers automatically receive clearing files at these default times, unless they contact
Mastercard. Customers that want to change their clearing cycle cutoff times should contact
their account manager or Mastercard Customer Implementation Specialist.
NOTE: The outbound delivery of the files of cycles one and two is extended by 1-3 hours on release
implementation dates only. The files from cycles three through six will be delivered at the usual times.
Release implementation dates occur four times a year and occur on a Friday of the release
implementation month. Although the files of cycles one and two are delivered on a different calendar
day from cycles three through six, Mastercard considers the delivery of all six cycles of files to occur in
one processing day.

Customers have multiple options to choose from when receiving clearing data from Global
Clearing Management System.
Global Clearing Management System provides several options for organizing into separate files
incoming clearing data generated by Mastercard. Global Clearing Management System will
assign different endpoints to different categories of data. An endpoint is a numeric, seven-digit
identifier that is linked to a physical file delivery location defined to Mastercard.
Global Clearing Management System delivers one file to each endpoint after each clearing cycle
in which a customer chooses to receive data.
File delivery options include
• Customer ID
• Acquirer Reference ID
• Acquirer Reference ID plus card program identifier
• issuer account range
• issuer account range plus card program identifier, and
• ssuer account range plus card program identifier plus ATM versus POS.
Option 1: Customer ID
With this option, customers can specify different endpoints according to customer ID. The
following table is an example.

Customer ID Endpoint
001234 0000001
005678 0000002
002222 0000001
In this example, Global Clearing Management System will create one file for endpoint 0000001
and one file for endpoint 0000002 after each specified clearing cycle cutoff.
The file created for endpoint 0000001 will contain transactions destined for customer IDs
001234 and 002222. The file created for endpoint 0000002 will contain transactions destined
for customer ID 005678.
A processor might choose to use this arrangement to group its customers into different files.
Option 2: Acquirer Reference ID
With this option, a customer can specify different endpoints according to acquirer bank
identification number (BIN). The following table is an example.
Acquirer Reference ID Endpoint

541234 0000001
543333 0000002
The file created for endpoint 0000001 will contain transactions destined for Acquirer Reference
ID 541234. The file created for endpoint 0000002 will contain transactions destined for
Acquirer Reference ID 543333.
Option 3: Acquirer Reference ID plus card program identifier
With this option, a customer can specify different endpoints according to the combination of
Acquirer Reference ID plus card program identifier. The following table is an example.
Acquirer Reference ID Card Program Identifier Endpoint

544444 Maestro (MSI) 0000001
544444 Mastercard (MCC) 0000002

The file created for endpoint 0000001 will contain Maestro transactions destined for Acquirer
Reference ID 544444. The file created for endpoint 0000002 will contain Mastercard
transactions destined for Acquirer Reference ID 544444.
An acquirer might choose to use this arrangement to separate debit and credit activity.
Option 4: issuer account range
With this option, a customer can specify different endpoints according to issuer account range.
The following table is an example.
Issuer Account Range Endpoint

541111 0000001
542222 0000002
The file created for endpoint 0000001 will contain transactions destined for issuer account
range 541111. The file created for endpoint 0000002 will contain Mastercard transactions
destined for issuer account range 542222.
An issuer might choose to use this arrangement to separate consumer and corporate activity, by
assigning consumer account ranges to one endpoint and corporate account ranges to another
endpoint.
An issuer might also choose to use this arrangement to separate debit and credit activity, by
assigning one endpoint to Maestro or Cirrus account ranges and another endpoint to
Mastercard account ranges.
Option 5: Issuer account range plus card program identifier
With this option, a customer can specify different endpoints based on the combination of issuer
account range plus card program identifier. The following table is an example.
Issuer Account Range Card Program Identifier Endpoint

545555 Cirrus (CIR) 0000001
545555 Mastercard (MCC) 0000002

Global Clearing Management System sequence of the file generated by Mastercard
The file created for endpoint 0000001 will contain Cirrus transactions destined for issuer
account range 545555. The file created for endpoint 0000002 will contain Mastercard
transactions destined for issuer account range 545555.
An issuer might choose to use this arrangement to separate Cirrus and Mastercard activity for
each account range.
Option 6: Issuer account range plus card program identifier plus ATM versus POS
With this option, a customer can specify different endpoints according to the combination of
issuer account range, card program identifier, and whether the transaction is an ATM
transaction. The following table is an example.
Issuer Account Range Card Program Identifier ATM/POS Endpoint

545555 Cirrus (CIR) ATM 0000001
545555 Mastercard (MCC) Not specified 0000002
547777 Maestro (MSI) ATM 0000001
547777 Maestro (MSI) POS 0000003
In this example, Global Clearing Management System will create one file for endpoint 0000001,
one file for endpoint 0000002, and one file for endpoint 0000003 after each specified clearing
cycle cutoff.
The file created for endpoint 0000001 will contain Maestro and Cirrus ATM transactions
destined for issuer account ranges 545555 and 547777. The file created for endpoint 0000002
will contain all Mastercard transactions destined for issuer account range 545555. The file
created for endpoint 0000003 will contain Maestro point-of-sale (POS) transactions destined
for issuer account range 547777.
An issuer could use this option to simulate the processing class concept by assigning one
endpoint to Maestro and Cirrus ATM transactions, one endpoint to Maestro POS transactions,
and one endpoint to Mastercard transactions, for each issuing account range.

Within a given Mastercard destination (a combination of endpoint and DE 93 [Destination ID]),
Global Clearing Management System sequences files generated by Mastercard as shown in the
Sequence of Files Generated by Mastercard table.
Sequence of files generated by Mastercard
IPM MTI-Function Code

IPM Inbound Message Type Combination
1. File Header 1644-697

IPM MTI-Function Code

IPM Inbound Message Type Combination
2. Text Messages 1644-693
3. Currency Updates 1644-640
4. First Presentments 1240-200
5. Financial Detail Addendum (if required) 1644-696
6. Retrieval Requests 1644-603
7. Fee Collections (Retrieval Fee Billing) 1740-700
8. First Chargebacks, Full and Partial 1442-450

1442-453
9. Second Presentments, Full and Partial 1240-205

1240-282
10. Arbitration Chargebacks, Full and Partial 1442-451

1442-454
11. Fee Collections (non–Retrieval Fee Billing): DDDD-generated, 1740-700

Returns, Resubmissions, Arbitration Returns, and Clearing
1740-780
System-Generated
1740-781
1740-782
1740-783
12. Message Exception and File Reject 1644-691

1644-699
13. File Currency Summary, Financial Position Details, and 1644-680

Settlement Position Details
1644-685
1644-688
1644-698
14. File Trailer 1644-695
When there are multiple message types (for example, multiple first presentments) for multiple
receiving customer IDs, the Global Clearing Management System sequences them as follows:

• All message types except 1644-693 (Text Message) and 1644-640 (Currency Update): first
by receiving customer ID and then by message type
• 1644-693 (Text Message) and 1644-640 (Currency Update) messages: once per processor by
the first occurring (lowest) customer ID and then by message type
If a customer or processor processes for multiple customer IDs, Global Clearing Management
System constructs files generated by Mastercard as shown in the following table. For example,
suppose that customer ID 004444, endpoint 1, processes for customer ID 002222 and customer
ID 003333. When processing for multiple customer IDs, Global Clearing Management System
would construct the receiver's inbound file as shown in the following table.
Example of sequencing of files generated by Mastercard
Endpoint 1, to Customer ID
MTI-Function Code Description (ICA)
1644-697 File Header 004444
1644-693 Text Message 002222
1644-640 Currency Update 002222
1644-696 Financial Detail Addendum 002222
1240-282 Second Presentment (Partial) 002222
1644-685 Financial Position Detail 002222
1644-698 Settlement Position Detail 002222
1644-603 Retrieval Request 003333
1740-700 Fee Collection (Retrieval Fee Billing) 003333
1442-450 First Chargeback: Full Amount 003333
1240-205 Second Presentment 003333
1442-451 Arbitration Chargeback: Full Amount 003333
1740-700 Fee Collection (non-Retrieval Fee Billing) 003333
1644-695 File Trailer 004444

Merging of clearing information between cycles
Merging of clearing information between cycles

New customers must participate in all clearing cycles. Existing customers and processors may
choose to receive clearing data less than six times per day. This results in the merging of their
clearing activity across cycle boundaries.
When the customer’s or processor’s next delivery cycle is completed, the clearing file delivered
will actually represent activity from two cycles, or even three cycles, if two consecutive cycles
have been skipped. In the following example, if a customer receives clearing data after cycles 1,
2, 5, and 6, the file delivered after cycle 5 will contain data from clearing cycles 3, 4, and 5.
NOTE: Within the MTI-Function Code category, data will not necessarily be in ascending clearing cycle
sequence. For example, cycle 5 First Presentments might precede cycle 4 First Presentments.
Example illustrating delivery cycle 5 with clearing cycles 3, 4, and 5
MTI-Function Clearing
Code Description Cycle Delivery Cycle
1644-697 File Header 5 5
1644-693 Text Message 5 5
1644-640 Currency Update 5 5
1240-200 First Presentment 3, 4, 5 5
1644-696 Financial Detail Addendum (when present) 3, 4, 5 5
1644-603 Retrieval Request 3, 4, 5 5
1740-700 Fee Collection/Retrieval Fee Billing (DE 25 = 7614) 3, 4, 5 5
1442-450/453 First Chargeback, Full or Partial 3, 4, 5 5
1240-205/282 Second Presentment, Full or Partial 3, 4, 5 5
1442-451/454 Arbitration Chargeback, Full or Partial 3, 4, 5 5
1740-700/780/ Fee Collections/Other (other then DE 25 = 7614) 3, 4, 5 5

781/782/783
1644-691 Message Exception 3, 4, 5 5
1644-699 File Reject 3, 4, 5 5
1644-680 File Currency Summary 3, 4, 5 5

Delivery of administrative messages following clearing cycles
MTI-Function Clearing
Code Description Cycle Delivery Cycle
1644-685 Financial Position Detail 3, 4, 5 5
1644-688 Settlement Position Detail 3, 4, 5 5
1644-695 File Trailer 5 5
The individual messages in a specific MTI-Function Code will continue to be sequenced as they
are today.
Delivery of administrative messages following clearing cycles

Customers and processors that receive early reconciliation files will receive their early
reconciliation files as soon as Global Clearing Management System has processed their outgoing
files. They will receive their administrative messages, such as those from Mastercard to
customers, after the next available delivery cycle.
Customers and processors that elect to receive early reconciliation files will receive information
after all six cycles.
Customers and processors that choose to not receive early reconciliation will receive all of their
reconciliation messages, error messages, and messages from Mastercard to customers after
the next available delivery cycle.
Global Clearing Management System will not recalculate or merge totals of reconciliation
messages that are held until the next available delivery cycle.
For example, if an existing customer or processor participates in cycles 1, 3, 4, and 6 as its
delivery cycles and has elected to not receive early reconciliation files, the following will apply:
• Reconciliation and error messages, if any, from cycle 1 will be delivered after cycle 1
processing.
• Reconciliation and error messages generated in clearing cycle 2 will be held, combined with
any reconciliation and error messages reconciliation and error messages generated during
cycle 3, and delivered after cycle 3 processing.
• Reconciliation and error messages generated in clearing cycle 4 will be delivered after cycle 4
processing.
• Reconciliation and error messages generated in clearing cycle 5 will be held, combined with
any generated during cycle 6, and delivered after cycle 6 processing.
The following table illustrates the differences of selecting receipt of early reconciliation
messages when both processors have chosen cycles 1, 3, 4, and 6 as their delivery cycles.
Early reconciliation customer and non-early reconciliation processor example

Sequence of the early reconciliation file
Processors that do not choose

IF the current AND both processors Processors that choose early early reconciliation files will
cycle is… send in… reconciliation files will receive… receive…
Cycle 1 First Presentment Acknowledgment messages for Acknowledgment messages for
messages totaling the USD 1,000 in First the USD 1,000 in First
USD 1,000 Presentments when Global Presentments from cycle 1
Clearing Management System
processes the file
Cycle 2 First Presentment Acknowledgment messages for Acknowledgment held for the
messages totaling the USD 2,000 in First next delivery cycle
USD 2,000 Presentments when Global
processes the file

Acknowledgment messages for
processes the file
the USD 3,000 in First
Presentments from cycle 3

processes the file
Cycle 5 First Presentment Acknowledgment messages for Acknowledgment held for the
messages totaling the USD 5,000 in First next delivery cycle
USD 5,000 Presentments when Global
processes the file

Acknowledgment messages for
processes the file
the USD 6,000 in First
Presentments from cycle 6

Guidelines and processes exist for the generation and exchange of early reconciliation files
between Mastercard, Global Clearing Management System, and customers.
Customers electing to receive early reconciliation files generated by Mastercard will receive one
physical file for each physical file sent to Mastercard for processing. If the customer sends a

physical file containing two logical files, Global Clearing Management System will return one
early reconciliation Message file. The acknowledgment reconciliation messages for the two
logical files contained in the file sent to Mastercard will be contained in the single early
reconciliation message physical file.
For example, if the customer sends two logical files within a physical file, Global Clearing
Management System will send the acknowledgment reconciliation messages for the two logical
files within one physical file. Refer to the following figure for an illustration of this example.
Number of early reconciliation files returned
The sequence number returned by Global Clearing Management System in the T113 early
reconciliation bulk file generated by Mastercard will match the sequence number sent by the
customer in the corresponding customer-generated R111 Global Clearing Management System
Data bulk file for those customers electing receipt of the early reconciliation files. Mexico
Domestic transactions for the seventh clearing is sent by customers under bulk type RSP1 and
Global Clearing Management System will use the sequence number from the RSP1 bulk file for
early reconciliation and sent under the Bulk File T113 bulk to customers.
The sequence of an IPM early reconciliation message physical file generated by Mastercard is
similar to the sequence in the following table. Suppose that customer ID 004444, endpoint 1,
processes for customer IDs 002222, 003333, 005555, and 006666. When processing for
multiple customer IDs, Global Clearing Management System would construct the receiver's
inbound file as shown in the following table.
Customers participating in GCMS early reconciliation experience duplicate file sequence
numbers in acknowledgment reconciliation messages when a physical file contains more than
99 logical files. Because PDS 0300 (Reconciled, File), subfield 4 (File Sequence Number),
positions 24-25 (Sequence Number) is a two-position value, submitting over 99 logical files
causes the sequence to repeat. Furthermore, if a physical file exceeds 999 logical files, the
customer will not receive early reconciliation for the physical file, and could miss the preferred
settlement cycle. To avoid undesired processing of early reconciliation files Mastercard advises
customers to limit the number of logical files to 99.
Sequencing of files generated by Mastercard early reconciliation

Administrative IPM text messages used by Global Clearing Management System
Endpoint 1, to Customer ID
MTI-Function Code Description (ICA)
1644-697 File Header 004444
1644-680 File Currency Summary 002222
1644-691 Message Exception 005555
1644-695 File Trailer 004444
NOTE: This example assumes that data for all customers was received in two logical files. Each logical
file contains a file header, followed by various IPM clearing messages, followed by a file trailer.
Customers can match the physical file sent to Mastercard with the early reconciliation file
shown below by the T113 Global Clearing Management System early reconciliation file. The
following table identifies the pairing of the early reconciliation files with the file sent by the
customer.
The customer should match the… With the…

T113 Global Clearing Management System R111 (or RSP1 for Mexico Domestico transactions under
Early Reconciliation File received from the seventh clearing cycle) Global Clearing Management
Mastercard System Data sent by the customer.
T121 Test: Global Clearing Management R119 (or RSP3 for Mexico Domestico transactions under
System Early Reconciliation File received from the seventh clearing cycle) Test: Global Clearing
Mastercard Management System Data sent by the customer.
Administrative IPM text messages used by Global Clearing Management System

Global Clearing Management System uses IPM text messages to
• transmit broadcast messages from the Global Clearing Management System to all
customers, and
• transmit text messages (such as No Data messages) from the Global Clearing Management
System to a customer.
This message type contains 1644 in the MTI and 693 in DE 24 (Function Code) to identify it as a
text message.

Broadcast text messages used by Global Clearing Management System
Broadcast text messages used by Global Clearing Management System

Global Clearing Management System distributes broadcast text messages in every clearing
cycle for the applicable period by the combination of customer or processor, endpoint, and card
program identifier.
Because broadcast text messages may contain time-critical information, these text messages
are not optional. Global Clearing Management System distributes them whether or not
customers have financial activity or other clearing data in the next available delivery cycle based
on options for the destination endpoint. If Global Clearing Management System has
acknowledgment, notification, or error messages ready to send at the time of the broadcast
message, Global Clearing Management System may include them in the same file as the
broadcast message. However, even if no such messages are ready to be sent, Global Clearing
Management System will send the broadcast message after the clearing cycle cutoff is
complete.
No Data text messages used by Global Clearing Management System

If selected by the customer, Global Clearing Management System generates a No Data
message when there is no clearing data activity for the specified customer ID for an entire
clearing cycle.
The message text in DE 72 (Data Record) will appear as follows: NO DATA FOR THIS MEMBER
AND/OR ENDPOINT FOR THIS CLEARING.
The Global Clearing Management System distributes No Data text messages by the
combination of customer or processor endpoint and clearing cycle. The Global Clearing
Management System generates these messages only if the customer or processor chooses to
receive them.
If the customer or processor does not choose to receive this No Data message and there is no
data for that customer or endpoint, the customer or processor will not receive an empty
dataset for specified clearing cycles. This No Data message also applies to the seventh clearing
cycle for Mexico domestic switching transactions.
NOTE: Mastercard recommends that customers using CONNECT:Direct choose to receive the No Data
file.
Processing and delivery of clearing files
Clearing times
The sending customer can submit transaction data for clearing to the St. Louis Operations
Center (Central Site) seven days a week, 24 hours a day.
Mastercard processes the data during one of six clearing periods Monday through Sunday. The
six cutoff times per processing day are 18:00 and 21:00 the day before the processing day, and
00:00, 03:00, 06:00, and 08:00 of the processing day (All times shown are expressed as St. Louis
time) central time.

Clearing times
Customers may create and send clearing files as frequently as they want. Sending clearing files
earlier allows customers to have more transactions processed in earlier clearing cycle cutoffs,
thus ensuring the next available settlement of their accepted transactions.
Mastercard recommends that customers submit large files (insert size) at least 30 minutes
before the cutoff to ensure data is processed during the clearing period. Large files submitted
close to the cutoff period may be deferred to the subsequent cycle, which could impact
settlement timing. To avoid file processing delays, customers should dedicate sufficient time to
prepare large files for submission 30 minutes prior to the cutoff.
NOTE: Mastercard does not recommend that customers send multiple single-record logical files on a
physical file. For alternative options, contact Global Customer Service. Sending in multiple single-
record logical files could cause processing of files to be significantly delayed.
Julian date refers to the day of the year expressed as a three-position number, with a range of
001 through 366 (for example, 001 on 1 January).
The file sequence subfield within PDS 0105 (File ID), a five-position file sequence number,
supports the frequent submission of files. It allows customers to have up to 99,999 files per
unique combination of PDS 0105, subfields one through three. PDS 0105 in the IPM format
consists of the subfields shown in the following table.
File ID format for PDS 0105
Subfield Description Format

1 File Type n-3
File type 001 = Clearing system to customer
File type 002 = Customer Generated
File type 003 = Early Reconciliation
2 File Reference Date n-6
3 Processor ID n-11

Methods of transmitting data to Global Clearing Management System
Subfield Description Format

4 File Sequence Number n-5
For customer-generated files: Number assigned by
customer or processor. Must be unique for each Processor
ID and File Reference Date combination.
For files generated by Mastercard:
Positions 1-2 = Clearing Cycle
NOTE: This will be 99 if the customer receives clearing
files containing data from two or more clearings.
Position 3 = Delivery Cycle (Values = 1–6)
Positions 4-5 = Sequence Number
NOTE: For additional information about customer delivery cycle options, refer to the Files Generated
by Mastercard section.
Methods of transmitting data to Global Clearing Management System

Customers transmit clearing data to Global Clearing Management System through certain
media and under certain conditions.
Mastercard supports several file transfer methods within Global Clearing Management System.
Refer to the File Transfer Manual for information about the specific methods.
For each transmission method, Global Clearing Management System performs edits to ensure
that the system does not process test files in the production environment. Therefore, if a
customer inadvertently sends a test file to the production environment, Global Clearing
Management System does not process it as production data.
Customers use the PDS 0122 (Processing Mode) to designate their outbound clearing files as
production (value P) or test (value T). All files generated by Mastercard will specify whether
Mastercard created them in production or in test mode, so that the customer can perform
checks for verifying that it does not process test files in the production environment.
Bulk IDs for clearing data

Customers transmitting IPM clearing data through the MIP should use PDS 0122 (Processing
Mode) and IPM bulk ID values.
Value in PDS 0122

Bulk Type Description (Processing Mode)
R111 Customer-generated production outbound IPM data to Central Site P
RSP1 Customer-generated production outbound IPM data to Central Site P

Bulk IDs for the MPE
Value in PDS 0122

T112 Production IPM data generated by Mastercard from Central Site P
T113 Early Reconciliation Message file generated by Mastercard: If the P

customer chooses to receive this file, it provides early reconciliation
and error message details after each logical file from a customer is
processed
T121 Test bulk ID for the Early Reconciliation Message file generated by T
Mastercard
R119 Customer-generated test IPM data to Central Site T
RSP3 Customer-generated test IPM data to Central Site T
T120 Test IPM data generated by Mastercard from Central Site T

Customers receiving the IPM MPE via the Mastercard interface processor (MIP) will receive IPM
bulk ID values.
Value in (PDS 0122

T067 Production IPM MPE generated by Mastercard from Central Site
P
(daily updates)
T068 Production IPM MPE generated by Mastercard from Central Site (full
P
file replacement)
T167 Test IPM MPE generated by Mastercard from Central Site (daily
T
updates)
T168 Test IPM MPE generated by Mastercard from Central Site (full file
T
replacement)
Acknowledgment bulk files

After having applied the bank identification number (BIN) updates from the IPM MPE bulk files
listed above, acquirers must submit corresponding acknowledgment bulk files with these IPM
bulk ID values to Mastercard.
• RMF5: Acknowledgment GCMS Parameter Extract Data-Daily Updates
• RMF7: Acknowledgment GCMS Parameter Extract Data Full File Replace

• RMG5: Test-Acknowledgment GCMS Parameter Extract File Daily Update

• RMG7: Test-Acknowledgment GCMS Parameter Extract Full File Replace
The acknowledgment bulk files will contain header information from the MPE file being
acknowledged so that the two may be matched.
Layout of acknowledgment files: daily update MPE files
Field Name Positions Attribute Comments and Values

IPM MPE File Identifier 1-15 an-15 Constant value: UPDATE FILE
followed by four spaces.
Date created 16-23 n-8 Date the IPM MPE Daily Update file
was generated.
Format: YYYYMMDD.
Time created 24-27 n-4 Time the IPM MPE Daily Update file
was generated.
Format: HHMM.
Filler 28-125 an-98 Spaces.
Layout of acknowledgment files: full file replace MPE files

IPM MPE File Identifier 1-17 an-17 Constant value: REPLACEMENT FILE
followed by one space.
Module Identifier 18-31 an-14 Module that generated the IPM MPE.
Filler 32-45 an-14 Constant value: CURRENT-DATE=

followed by one space.
Date created 46-54 an-9 Date the IPM MPE Full File
Replacement was generated.
Format: MM DD YY followed by one
space.
Filler 55-61 an-7 Constant value: TIME = followed by

one space.
Time created 62-69 an-8 Time the IPM MPE Full File
Replacement was generated.
Format: HH:MM:SS

Record Descriptor Word at the beginning of IPM messages

Filler 70-125 an-56 Spaces.
Record Descriptor Word at the beginning of IPM messages

A Record Descriptor Word (RDW) field appears before each IPM message.
The format of the data in both IPM clearing messages and IPM MPE messages (both full file
and updates) is Variable Blocked Spanned (VBS). Therefore, messages may be longer than the
Mastercard Network constraint of 1014 bytes. To accommodate customers delivering and
receiving these messages over the Network and through Mastercard File Express, a four-byte
Record Descriptor Word field immediately preceding each IPM message holds the length of the
data in each message.
Clearing Optimizer AutoEdit Software

The Clearing Optimizer AutoEdit software handles the Record Descriptor Word (RDW) in the
IPM clearing messages and in the IPM MPE messages correctly.
An RDW is present in all Variable Block Spanned (VBS) clearing files that Mastercard delivers to
customers or receives from customers. The customer’s method of file transfer determines how
the customer must handle the files.
MHPF MIP load and unload modules

The Member Host Preparation Facility (MHPF) MIP load and unload modules handle the RDW in
the IPM clearing messages and in the IPM MPE messages correctly.
Additional information may be found in the File Transfer Manual.
CONNECT:Direct
The Record Descriptor Word (RDW) does not affect customers that send or receive IPM clearing
files, the IPM MPE file, or both through CONNECT:Direct.
Mastercard network through a MIP

This table defines what to do with the Record Descriptor Word (RDW) based on the
communications software they use.
IF a customer… AND the customer… THEN the customer…

Sends IPM clearing files Uses Mastercard MHPF Can handle the RDW by installing the
through the Mastercard communications software optional JCL.
Network through a MIP
Job SMH1003R is the Customer Host Bulk
Load for Variable Length Data Files.
Does not use Mastercard MHPF Must delete then insert the RDW at the
communications software beginning of each IPM clearing message
before loading the IPM clearing file to the
MIP for delivery to Mastercard.

Processing cards that have converted from Cirrus to the Visa/PLUS ATM Network
IF a customer… AND the customer… THEN the customer…

Receives IPM clearing files, the Uses Mastercard MHPF Can handle the RDW by installing the
IPM MPE, or both through the communications software optional JCL.
Mastercard Network through
Job SMH2003R is the Customer Host Bulk
a MIP
Unload for Variable Length Data Files.
Does not use Mastercard MHPF Must remove the RDW from the beginning
communications software of each IPM clearing message, as the file is
unloaded from the MIP.
Processing cards that have converted from Cirrus to the Visa/PLUS ATM Network
Once cards are converted from Cirrus® to the Visa/PLUS ATM Network, customers must be
aware of the processing changes that occur.
In instances where an issuing account range has been converted from Cirrus to the Visa/PLUS
ATM Network, new transactions occurring after the conversion must be authorized and
processed by the Visa/PLUS ATM Network, not by the Single Message System. However,
transactions that were authorized by the Single Message System before the conversion to the
Visa/PLUS ATM Network must be cleared and settled by both Global Clearing Management
System and the Single Message System.
To accommodate customers that use the IPM MPE file for both authorization routing decisions
and clearing processing, when an issuer account range converts to the Visa/PLUS ATM Network,
Mastercard removes the account range from table IP0040T1 (Issuer Account Range) in the IPM
MPE file sent to customers, but still retains it in table IP0040T1 in the IPM MPE file used by
Global Clearing Management System. This procedure allows acquirers to stop sending new
authorization requests for the issuer account range to the Single Message System, but still
process clearing messages for previously authorized transactions by sending them to Global
Acquirers that use the Clearing Optimizer software to process production clearing messages
before sending their files to Global Clearing Management System may receive error messages
from the Clearing Optimizer software for these transactions, even though they are accepted
when processed by Global Clearing Management System. To account for this condition,
Mastercard enhanced the Clearing Optimizer software to prevent customers from receiving
error messages when processing clearing messages for transactions authorized before an issuer
account range is converted from Cirrus to the Visa/PLUS ATM Network. This enhancement
consisted of adding the issuer account ranges that had been converted from Cirrus to the Visa/
PLUS ATM Network, to a Mastercard private use IPM MPE table IP9000T1. The Clearing
Optimizer software will use this table in its optimized table processing, to allow Clearing
Optimizer to accept clearing transactions involving these converted account ranges. The
following table describes distinctions between the two versions of the IPM MPE file in this
context.

Automated Fuel Dispenser processing
File Change
IPM MPE file sent to customers • Mastercard private use table IP9000T1: contains
issuer account ranges that have converted from
Cirrus to the Visa/PLUS ATM Network
• Table IP0090T1 (Issuer Account Range Card Program
Identifier and Business Service Arrangement
Participation): contains issuer account ranges that
have converted from Cirrus to the Visa/PLUS ATM
Network.
• Table IP0040T1 (Issuer Account Range): omits issuer
account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network, so that acquirers can
continue to understand that new authorizations for
these account ranges must be authorized and
processed through the Visa/PLUS ATM Network, and
not by Single Message System.
Optimized version of the IPM MPE (created • Table IP0090T1 (optimized version): contains issuer
by the Clearing Optimizer software) account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network.
• Table IP0040T1 (optimized version): contains issuer
account ranges that have converted from Cirrus to
the Visa/PLUS ATM Network so that the Clearing
Optimizer software will no longer reject clearing
transactions for these issuer account ranges.
These changes are provided here to customers as a courtesy reminder of this feature; therefore,
no action is required.
Automated Fuel Dispenser processing

This section describes the clearing impact for Automated Fuel Dispenser (AFD) processing.
Guiding principles
Unless otherwise specified, these are suggested best practices for AFD processing and are not
mandatory.
• AFD transactions often clear for an amount that is different from the authorized amount.
Mastercard recommends (required in the Europe region) that AFD transactions be submitted
as preauthorizations (DE 61, subfield 7, [POS Transaction Status = 4]). Mastercard
recommends (required in the Canada, Europe, and U.S. regions) that acquirers submit an
AFD completion advice message to the issuer with the final transaction amount after fueling
is completed, regardless of the method used (1.00 AFD or maximum amount), even when
the final purchase equals the authorized amount.
• If DE 38 (Approval Code) is contained in Authorization Request Response/0110 or
Authorization Advice Response/0130 message, the Mastercard also recommends that the
Trace ID (DE 15 [Settlement Date] and DE 63 [Network Data]) of the completion advice

Multi-clearing presentments for authorization transactions
response be used within the clearing presentment (Refer to the Automated Fuel Dispenser
Clearing Processing in the following section).
As an alternative, the Trace ID (DE 15 [Settlement Date] and DE 63 [Network Data]) of the
original preauthorization may be used for clearing presentment if that same Trace ID is
included in the AFD completion advice message within DE 48, subelement 63 (Trace ID).
Multi-clearing presentments for authorization transactions

Mastercard provides a multi-clearing indicator that is used when an authorized transaction will
have multiple presentments with partial amounts.
Multi-clearing, single authorization transactions in a First Presentment/1240 message use two
values with DE 25.
DE 25 (Message Reason Code) provides the message receiver with the reason for sending the
message.
Values
The following values will be valid for First Presentment/1240 messages.
Value Description
1403 Previously approved authorization: partial amount, multi-clearing
1404 Previously approved authorization: partial amount, final clearing
Guiding principles
• Multi-clearing is intended for improved open-to-buy (OTB) management of e-commerce split
shipments, but not limited to card-not-present merchants. Issuers should manage OTB holds
using the new multi-clearing reason codes and their own balance management policies.
• Multi-clearing must include proper authorization matching data (DE 38 Approval Code, DE
63 Trace ID) or the presentment will be rejected. If the split shipment sequence is not
deterministic, e-commerce processors may not be able to identify which presentment is final.
• Multi-presentment airline ticket and installment purchases are unaffected and will process
business as usual. Multi-clearing only applies to Mastercard credit and Debit Mastercard
transactions.
Confirmation of successful receipt and processing of Global

Clearing Management System transmission files
Customers that send an inbound Global Clearing Management System transmission data file to
Mastercard will receive an automated corresponding outbound confirmation file from
Mastercard.
Customers that do not receive a confirmation file must contact the Global Customer Service
team to verify that their inbound file was received and processed successfully by Mastercard.

Penalty for late Global Clearing Management System retransmission requests
Penalty for late Global Clearing Management System retransmission requests

Customers that submit late Global Clearing Management System retransmissions requests will
be subject to an administrative fee.
If a customer is unable to process a Global Clearing Management System transmission and is
connected to the Mastercard Network, the customer must restage the data and unload it
again. If the customer is not connected to the Mastercard Network, the customer must
immediately request a recreate of the transmission.
Because satisfying late requests requires reprocessing in Global Clearing Management System,
Mastercard will charge each customer that requests the transmission of data no longer
available on the MIP. An administrative fee is charged per file of data requested. Refer to
2GC0001: Clearing Data Recreation fee in the Mastercard Consolidated Billing System manual.
Global Clearing Management system rejection of messages

Global Clearing Management System will reject transactions containing inadequate message
elements.
In general, all transactions submitted to Global Clearing Management System for clearing must
pass specific Global Clearing Management System edits. The sending customer must present all
message elements with correct contents (for example, a numeric element must contain only
digits) and ensure that all required elements are present. If the sending customer does not have
an accurate description of required information, the customer should not provide the element in
the IPM message.
NOTE: Global Clearing Management System will reject the message if edits reveal that required
information is missing. In most cases, Global Clearing Management System will also reject a message
if an element contains all low values, all high values, all spaces, or all zeros.
Refer to the IPM Clearing Formats manual for specific exceptions to this policy. One such
exception is for Mexico Domestic transactions where, under certain conditions, the transaction is
not rejected but flagged for error and the transaction settles. This is referred to as syntax error
condition.
NOTE: For information about the edits that apply to individual IPM messages, refer to the IPM Clearing
Formats manual.
When Global Clearing Management System encounters exception conditions at the single
message or file level, it generates appropriate error messages. Global Clearing Management
System creates IPM error message types
• full file rejection messages and
• single message rejection messages.
NOTE: IPM reject messages contain no warning or adjustment conditions, only reject conditions.

Full IPM file rejection by Global Clearing Management System
Global Clearing Management System can reject both a first presentment message and its
associated financial detail addendum messages, or it can reject just the associated financial
detail addendum messages.
• If Global Clearing Management System rejects an IPM first presentment message, it also
rejects and returns to the transaction originator all associated financial detail addendum
messages.
• If Global Clearing Management System rejects financial detail addendum messages, it does
not necessarily reject the associated first presentment message.
Full IPM file rejection by Global Clearing Management System

If Global Clearing Management System rejects an entire IPM file, it does not forward the file or
any of its messages for further processing. Global Clearing Management System generates the
file reject messages to indicate that it has rejected the entire file.
The full file reject message provides
• up to 10 error codes describing the errors that caused the file to reject,
• the file ID of the rejected file, if it is present and the Global Clearing Management System is
able to parse it, and
• up to 200 positions of the rejected file's first message.
NOTE: Global Clearing Management System does not return the IPM file reject message if the header
message of the rejected file is unparseable, nor if PDS 0105 (File ID), subfield 3 (Processor ID) is
invalid. In these cases, Global Clearing Management System cannot determine the receiver of the file
reject message and therefore cannot notify the appropriate customer of the file reject.
Example 1
Suppose that the transaction originator omits IPM messages between the file header and file
trailer messages. Because Global Clearing Management System requires data between the file
header and file trailer messages in a customer-submitted logical file, the absence of data results
in a file reject. The Global Clearing Management System would return a file reject message to
the transaction originator indicating
• the file ID of the rejected file
• the appropriate error code, and
• up to 200 positions of the first message (the header) in the rejected file.
The Global Clearing Management System would not forward any of the messages to the
intended transaction destinations because it rejected the entire file.
Example 2
Suppose that the transaction originator includes a file ID in the file trailer message that does
not match the file ID in the file header message. The Global Clearing Management System
would return a file reject message to the transaction originator indicating

Full clearing file rejections delivered with early reconciliation
• the field in error, with the appropriate error code, and

• up to 200 positions of the first message in the rejected file.
Example 3
Suppose that the transaction originator includes PDS 0105 on a file header message that has a
duplicate file ID, where the file ID duplicates the ID of another clearing file submitted within the
previous 180 days. The Global Clearing Management System would return a file reject message
to the transaction originator indicating
• the field in error, with the appropriate error code, and
• up to 200 positions of the rejected file's first message.
Full clearing file rejections delivered with early reconciliation

If a customer receives the Early Reconciliation file, and Global Clearing Management System
rejects their entire clearing file, Global Clearing Management System sends the file reject
between a file header and a file trailer.
MTI-Function Code Description Endpoint 1, To:

1644-697 File Header 001111
1644-699 File Reject 001111
1644-695 File Trailer 001111
If a customer processes for multiple customer IDs, Global Clearing Management System sends a
single file reject for that customer processor surrounded by a file header and a file trailer. For
example, if customer 004444, endpoint 1,
• processes for customer IDs 001111, 002222, and 003333
• sends a file with transactions for customer IDs 001111, 002222, and 003333, which Global
Clearing Management System rejects with a full file reject, and
• receives the Early Reconciliation File,
Global Clearing Management System would construct the file generated by Mastercard as
follows.
MTI-Function Code Description Endpoint 1, To

1644-697 File Header 004444

Single message rejection
MTI-Function Code Description Endpoint 1, To

1644-699 File Reject 004444
1644-695 File Trailer 004444
Single message rejection

Global Clearing Management System generates IPM message exception messages when the
system encounters an exception condition as it is processing single messages.
• Up to 10 codes identifying the errors within the message being rejected and the associated
data elements, private data subelements, or both that caused the exception conditions.
• The file ID of the file containing the rejected message, if it is present and the Global Clearing
Management System can parse the data.
• The Acceptance Brand and Business Service ID being evaluated at the time of the reject.
The entire original message that the Global Clearing Management System rejected follows the
single message reject, if the message is parseable.
IF the message is rejected by… THEN…

Global Clearing Management System Global Clearing Management System provides the entire
original message unaltered.
The Clearing Optimizer software The Clearing Optimizer software provides the entire
original message, unaltered except for DE 71 (Message
Number) (Refer to the following information).
The Clearing Optimizer software assigns a new DE 71 value to the rejected original message
when returning it to the sending customer, although Global Clearing Management System
retains the DE 71 value from the original message. Customers also may use PDS 0138 (Source
Message Number ID) of the message exception message to identify the input source message
number. PDS 0138 will not be present if the original message is unparseable and Global Clearing
Management System cannot determine the DE 71 value from the original message.
If all detail messages in a logical file are rejected, the Global Clearing Management System
generates a Message Exception/1644-691 for each rejected detail message. Additionally, the
Global Clearing Management System generates a File Reject/1644-699 because none of the
individual messages were accepted.
Single message rejections delivered with early reconciliation

If a customer receives the Early Reconciliation File and Global Clearing Management System
rejects individual messages in the customer’s clearing file, Global Clearing Management System
sends the message exception messages between a file header and a file trailer.
The rejected message follows its associated message exception message, as shown in the
following table.

Single message rejections delivered with early reconciliation
MTI-Function Code Description Endpoint 1, to:

1644-697 File Header 001111
1240-200 Rejected First Presentment 001111
1644-696 Rejected Financial Detail Addendum 001111
1442-450 Rejected First Chargeback 001111
1644-695 File Trailer 001111
If a customer processes for multiple customer IDs, Global Clearing Management System sends
all the message rejects for that customer surrounded by a file header and a file trailer. For
example, if customer 4444, endpoint 1, processes for customer IDs 1111 and 2222 and receives
the Early Reconciliation File, Global Clearing Management System would construct the file
generated by Mastercard as follows.
MTI-Function Code Description Endpoint 1, to

1644-697 File Header 004444
1240-200 Rejected First Presentment 001111
1240-205 Rejected Second Presentment 001111
1644-603 Rejected Retrieval Request 002222
1644-680 File Currency Summary 002222
1644-695 File Trailer 004444

Reconciling single message rejections
Reconciling single message rejections

Customers should be prepared to administer the appropriate accounting procedures to handle
single message rejections and to reconcile incoming acknowledgment reconciliation data with
the previous outgoing data.
The customer may resubmit the rejected (corrected) messages mixed within a new file that
contains other messages or as a separate file. The customer may resubmit a rejected file with
the old file ID number only if the entire transmission is rejected.
Messages supported by Mastercard for Mexico domestic transactions

Mastercard supports syntax errors, syntax error returns, retrieval request acknowledgment
messages, and late presentments for Mexico domestic transactions.
Syntax errors for Mexico domestic transactions

Mexico domestic rules allow for transactions that meet certain conditions to be cleared and
settled. Under these conditions, transactions are not rejected, but are flagged as containing one
or more syntax errors.
When a transaction is flagged with a syntax error, the receiver of the transaction has the right
to return the transaction to the sender.
Mastercard will identify syntax errors in the following PDS 0005 (Message Error Indicator)
messages for all Mexico domestic point-of-sale (POS) and credit card payment transactions.
• First and Second Presentment/1240
• First and Arbitration Chargeback/1442
• Retrieval Request/1644
• Miscellaneous Fee Collection/1740
PDS 0005 will contain both the Mastercard-defined syntax error number and the local reason
code. For details about the syntax error identification, refer to PDS 0005 in the IPM Clearing
Formats manual.
Transactions that are flagged only with syntax errors are not rejected, but will be cleared and
settled business as usual. However, transactions that are flagged with syntax errors and also
have other errors resulting from Clearing Platform edits will be rejected.
Syntax error returns for Mexico domestic transactions

The Clearing Platform will support the ability for the receiver of a Mexico domestic transaction
with a syntax error to return the syntax error to the sender within a given timeframe using the
same message format as used for the original transaction.
For example, an issuer may return a syntax error for a First Presentment/1240 message to the
acquirer using a First Presentment/1240 message. Likewise, an acquirer may return a syntax
error for a First Chargeback/1442 message to the issuer using a First Chargeback/1442
message.
When sending a syntax error return, the receiver must ensure that the message contains the
following values:

report
• DE 25 (Message Reason Code) containing one of these reason codes that identifies a syntax
error return.
– 1500 (for presentment messages only)
– 4890 (for chargeback messages only)
– 6380 (for retrieval request messages only)
– 7615 (for fee collection messages only)
– 7690 (for fee collection messages only)
– 7715 (for miscellaneous fee collection messages only)
• PDS 0005 (Message Error Indicator) containing the syntax error. While a transaction may
have multiple syntax errors, for syntax error return PDS 0005 will only identify a single
condition as the reason for the return.
• PDS 0225 (Syntax Return, Original Message Reason Code) containing the original message
reason code value from DE 25.
NOTE: Interchange and fees will be reversed on syntax error return messages. The receiver of the
returned syntax error can return the message and collect funds using a Miscellaneous Fee Collection/
1740 message, if applicable.
Error Detail: Input Sequence report and Global Collection Only Error Detail: Input
Sequence report
Global Clearing Management System reports rejected transaction data through the Error
Detail: Input Sequence report and the Global Collection Only Error Detail: Input Sequence
report. These reports provide all data elements of a rejected message, including data that fails
edits and data that passes edits, highlighting the data elements in error.
These reports include rejected transaction details at levels
• Logical file to Mastercard
• Processing Mode (Test or Production)
• Source Message Number
• Source Currency
• Source Amount
• Transaction Function, and
• Global Collection Only separated from non-Global Collection Only rejected transactions.
The reports are billed through the Mastercard Consolidated Billing System (MCBS). Current
rates are listed in the Pricing Guide on the Pricing and Billing Resource Center. The billing event
numbers are as follows.
Report Number Description Billing Event Number

IP857010-AA Error Detail Report 2RP2219

report

IP857010-BB Global Collection Only Error Detail Report 2RP2220
The Error Detail: Input Sequence reports are optional. The Global Clearing Management System
transmits this report using bulk type T140 for production and bulk type T150 for test reports.
NOTE: Customers that request these reports will receive them after each clearing cycle.

report
Figure: Error Detail: Input Sequence Report (IP857010-AA), Banner Page, page 1

report
Error Detail: Input Sequence Report (IP857010-AA), banner page field descriptions
Field Description
Run Date The date on which this report was produced.
Page The page number within the report.
File ID The logical file ID of the customer-generated file to which the data in this
report pertains.
Processing Mode Type of processing (Production or Test) to be performed on this file.
Description A detailed description of the error encountered, or if no errors are

encountered, the literal FILE PROCESSED: NO ERRORS ENCOUNTERED.

report
Figure: Error Detail: Input Sequence Report (IP857010-AA), File Level Reject, page 2

report
Error Detail: Input Sequence Report (IP857010-AA), File Level Reject, page 2 field descriptions
Field Description
report pertains.
Error Code A unique code (established by Mastercard) that identifies the type of error
encountered. Refer to the IPM Clearing Format Error Numbers and
Messages manual for a list of the error codes established by Mastercard
and their corresponding descriptions.
Description A detailed description of the error encountered.
Source Message Number Number of the original message that contains the error, from DE 71
(Message Number).
Element ID The number of the data element or private data subelement causing the
error condition.
Invalid Data (Does not print for file level rejects).
File Information If parseable, contains up to the first 200 positions of data in a reject of an
entire file (This information prints only for file-level rejects).

report
Figure: Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 3

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Figure: Error Detail: Input Sequence Report (IP857010-AA), continuation of page 3
Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 3 field descriptions
Field Description

report
Field Description
report pertains.
(Message Number).
Source Amount Monetary amount of the rejected message. For messages without a DE 4
(Amount, Transaction) value (for example, retrieval fee billing or financial
detail addendum messages), the field will be zero.
MTI-Function Code The Message Type Identifier and the DE 24 (Function Code) value
associated with the rejected message.
Source Currency The alphabetic currency code associated with the monetary amount.
(Message Number).
error condition.
Invalid Data Listing of the contents of the data element or private data subelement in
error, within the rejected message (This information prints only for message
level rejects).
Message Details Details about the message.

report
Figure: Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 3 (alternate)

report
Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 3 (alternate) field
descriptions
Field Description
report pertains.
(Message Number).
error condition.
Invalid Data Listing of the contents of the data element or private data subelement in
error, within the rejected message (This information prints only for message
level rejects).
Message Unparseable Contains up to the first 200 positions of the rejected message when Global
Clearing Management System cannot parse the message into elements.

report
Figure: Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 4

report
Error Detail: Input Sequence Report (IP857010-AA), Message Level Reject, page 4 field descriptions
Field Description
report pertains.
Message Type Identifies whether the message has a settlement indicator of settled by
Mastercard, bilateral (not settled by Mastercard), or Global Collection Only.
Financial Detail Identifies messages that have monetary impact.
Non-Financial Detail Identifies messages that do not have monetary impact.
Unrecognizable Detail Identifies messages that cannot be parsed.
Currency The alphabetic currency code of the source currency.
Amount The net total of the source monetary amount of the messages. Messages
that do not include a DE 4 (Amount, Transaction) value are not included in
this field.
Count The total number of messages.

report
Figure: Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), banner page (page
1)

report
Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), banner page field descriptions
Field Description
report pertains.
Description A detailed description of the error encountered, or if no errors are

encountered, the literal FILE PROCESSED: NO ERRORS ENCOUNTERED.

report
Figure: Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), Message Level
Reject

report
Figure: Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), continuation
Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), Message Level Reject field
descriptions
Field Description

report
Field Description
report pertains.
(Message Number).
Source Amount Monetary amount of the rejected message. For messages without a DE 4
(Amount, Transaction) value (for example, retrieval fee billing or financial
detail addendum messages), the field will be zero.
MTI: Function Code The Message Type Identifier and the Function Code associated with the
rejected message.
Source Currency The alphabetic currency code associated with the monetary amount.
(Message Number).
Source Element ID Identifies the element for which Global Clearing Management System
encountered the reject condition.
Invalid Data Listing of the contents of the element within the rejected message.
Message Details Details about the message.

report
Reject (alternate)

report
Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), Message Level Reject
(alternate) field descriptions
Field Description
File ID The logical file ID of the customer-generated file to which the data in
this report pertains.
Error Code A unique code (established by Mastercard) that identifies the type of
error encountered. Refer to the IPM Clearing Format Error Numbers and
(Message Number).
Element ID The number of the data element or private data subelement causing
the error condition.
Invalid Data Listing of the contents of the data element or private data subelement
in error, within the rejected message.
Message Unparseable Contains up to the first 200 positions of the rejected message when
Global Clearing Management System cannot parse the message into
elements.

report
Reject

report
Global Collection Only Error Detail: Input Sequence Report (IP857010-BB), Message Level Reject, page 2
field descriptions
Field Description
report pertains.
Message Type Identifies whether the message has a settlement indicator of settled by
Mastercard, bilateral (not settled by Mastercard), or Global Collection Only.
Financial Detail Identifies messages that have monetary impact.
Non-Financial Detail Identifies messages that do not have monetary impact.
Unrecognizable Detail Identifies messages that cannot be parsed.
Currency The alphabetic currency code of the source currency.
Amount The net total of the source monetary amount of the messages. Messages
that do not include a DE 4 (Amount, Transaction) value are not included in
this field.
Count The total number of messages.

Processing cycles and regulations
Chapter 3 Processing cycles and regulations

This section describes the processing cycles for clearing transactions and introduces the time frame
requirements associated with each processing cycle.
Clearing processing cycles and time frames.................................................................................................... 88

Customer requirements and guidelines for processing transactions through Global Clearing
Management System..................................................................................................................................... 88
Customer guidelines for first presentments...............................................................................................89
Currency conversion of Global Clearing Management System transactions..................................89
Time frame for first presentments.........................................................................................................89
Risk reduction process applied to Global Clearing Management System transactions................90
Retrieval requests and fulfillments...............................................................................................................91
Healthcare retrieval requests and fulfillments..................................................................................... 91
Chargeback processing...................................................................................................................................92
Time frame for first chargeback............................................................................................................. 92
Time frames for second presentments or arbitration chargebacks................................................. 93
Time frames for disputes involving arbitration.....................................................................................93
Chargeback timeliness edits.................................................................................................................... 94
Exclusion from chargeback timeliness edits..........................................................................................95
Processing chargeback messages...........................................................................................................96
Identifying the chargeback cycle........................................................................................................96
Submitting the transaction amount for first chargebacks, second presentments, and
arbitration..............................................................................................................................................97
Chargeback procedures for purchase with cash back transactions............................................98
DE 95 (Card Issuer Reference Data).............................................................................................. 100
PDS 0262 (Documentation Indicator)........................................................................................... 101
DE 72 (Data Record).........................................................................................................................101
Getting additional information about chargebacks..........................................................................101
Arbitration following chargebacks.............................................................................................................103
Chargeback infractions worthy of compliance action............................................................................103
Transaction research request........................................................................................................................... 103
Ways to perform a transaction research request................................................................................... 104
Capabilities of the Transaction Investigator tool.................................................................................... 104
Transaction Investigator product registration.........................................................................................105
Accessing and using the Transaction Investigator.................................................................................. 105
How to set user preferences....................................................................................................................... 108
Understanding fees for transaction research requests..........................................................................109

Global Clearing Management System transaction and chargeback analysis reports........................... 109

Clearing processing cycles and time frames
Clearing processing cycles and time frames

The clearing process follows a particular process that occur over various cycles and time frames.
The clearing process begins when the acquirer presents transaction data to the issuer for the
first time, for posting to the cardholder’s account. After the first presentment of the cardholder
transaction, the issuer may determine that, for one of the reasons specified in the Chargeback
Guide, the transaction may be invalid. The issuer may charge back the transaction when
procedures in the Chargeback Guide specifically allow the issuer to return the transaction to the
acquirer for possible remedy.
For each transaction between issuer and acquirer, the following cycles allow presentment,
retrieval, and chargeback processing:
• First presentment consists of one step: from the acquirer to the issuer.
• The retrieval process consists of two steps: retrieval request and fulfillment.
• Except in the case of ATM, Maestro®, and Cirrus® transactions, the chargeback cycle consists
of three steps: chargeback, second presentment, and arbitration chargeback. Arbitration
chargeback does not occur for ATM, Maestro, and Cirrus transactions.
If necessary, arbitration case filing follows the arbitration chargeback.
The Global Clearing Management System maintains a chargeback history file, which stores
selected information from all incoming chargeback transactions that Global Clearing
Management System accepts. The purpose of the chargeback history file is to track chargeback
cycles and documentation that customers send. Global Clearing Management System edits
chargeback messages against the chargeback history file to validate cycle sequence, time
frames, and documentation requirements.
Mastercard standards govern the clearing presentment, retrieval, and chargeback cycles for all
interchange transactions involving the Mastercard brand. These standards define specific time
frames, constraints, and thresholds.
Mastercard has designed Global Clearing Management System to support customization of
these standards related to customer agreements, such as business service arrangements.
Mastercard considers requests for such customization on a case-by-case-basis.
Customer requirements and guidelines for processing transactions through Global

Customers must use the message formats detailed in the IPM Clearing Formats manual for all
presented transactions and chargebacks for processing through Global Clearing Management
System.
Mastercard encourages customers to process all chargeback documentation through the
Mastercom® Chargeback Support Documentation (CSD) application of the Mastercom
electronic imaging system. Using the CSD application will help ensure timely delivery of the
items, maintain an audit trail for the life cycle of the chargeback, and retain subsequent
chargeback and second presentment rights.

Customer guidelines for first presentments
Customer guidelines for first presentments

The first presentment occurs when the acquirer submits transaction data to the issuer for the
first time, for posting to the cardholder’s account.
To minimize subsequent retrievals, chargebacks, and second presentments, acquirers must
ensure that all presented clearing transactions contain accurate and complete data in the
applicable first presentment and addendum messages. To further minimize subsequent
chargebacks and second presentments, issuers must ensure that all transaction detail provided
by the acquirer is readily available to the cardholder and to internal operations.
The acquirer must send all presented transactions to Global Clearing Management System
using the messages and procedures that Mastercard specifies.
NOTE: For information about the message procedures for presentment of transactions, refer to the
IPM Clearing Formats manual.
The acquirer must present all cash disbursements, purchases, credits, unique, and Payment
Transactions for the full amount of the original transaction currency as agreed to by the
cardholder. The amount may not be increased (or reduced in the case of a credit or a Payment
Transaction) unless specifically authorized within this manual. Acquirers must promptly present
these transactions to issuers.
Currency conversion of Global Clearing Management System transactions

Mastercard will convert all transactions processed through Global Clearing Management
System into the equivalent reconciliation currency amount for settlement.
Mastercard (not the acceptor or acquirer) will convert the transaction using the buy, mid, fixed,
and sell rates of the representative group of currencies most frequently traded. Other
arrangements are defined for those customers participating in bilateral agreements as
described in Chapter 1 of the Settlement Manual and intracurrency settlement agreements as
described in the Settlement Manual.
NOTE: For more information about currency conversions, refer to the Currency Conversion chapter.
Time frame for first presentments

A variety of rules and guidelines exist for customers to follow when first presenting, or first
receiving, a Global Clearing Management System transaction.
Mastercard defines the presentment time frame as the time between the date of the
transaction and the date the transaction is presented to the issuer. Thus, the seven-day time
frame defined below for electronically-read transactions does not include the transaction date
but does include the St. Louis Operations Center (Central Site) business date of the First
Presentment/1240 message.
The following first presentment time frames apply:
• When the transaction was completed with electronically recorded card information (whether
card-read or key-entered), the acquirer has a maximum of seven calendar days after the
transaction date to present the transaction to the issuer.

Risk reduction process applied to Global Clearing Management System transactions
• When the transaction was completed with manually recorded card information (whether
imprinted or handwritten), the acquirer has a maximum of 30 calendar days after the
• For transactions effected at a U.S. region merchant with a card issued in the U.S. region,
when the transaction was completed with manually recorded card information (whether
imprinted or handwritten), the acquirer has a maximum of 14 calendar days after the
• A payment transaction must be presented in clearing within one business day of the
authorization date.
• A contactless transit aggregated transaction must be presented in clearing within 14
calendar days of the authorization date.
• A refund transaction must be presented in clearing within five calendar days of the date the
merchant agreed to provide a refund to the cardholder (the refund transaction receipt date,
or if the refund transaction was authorized by the issuer, then the refund transaction
authorization date).
Notwithstanding these time frames, the acquirer has a maximum of 30 calendar days (14
calendar days for intra-United States transactions) after the transaction date to present a
transaction when the acquirer must delay presentment:
• Because of the merchant's delay in submitting the transaction, as permitted under Chapter
3, Transaction Records of Transaction Processing Rules;
• A national bank holiday of at least four consecutive days occurred, which prevented the
acquirer from presenting a card-read or key-entered transaction within the applicable seven-
calendar-day time frame.
An issuer must still accept transactions submitted beyond the applicable time frame if the
cardholder account is in good standing or the transaction can be otherwise honored and posted.
If the message has no transaction date when processed through Global Clearing Management
System, the date 15 days before the date in PDS 0105 (File ID), subfield 2 (File Reference Date)
will be presumed (for rules administration) to be the transaction date, subject to subsequent
establishment of the actual date by support documentation.
Risk reduction process applied to Global Clearing Management System transactions

Mastercard is updating the risk-reduction process that is applied to clearing messages.
When a First Presentment/1240 message violates risk-reduction parameters and is rejected
with error numbers 2202 or 2203, the following currently occurs to notify the acquirer of the
rejection:
• Mastercard sends a Bulk Type T112 or T113 file to global acquirers (or a TY30 or TY34 file for
customers in Russia) and, optionally, the IP857010-AA Error Detail Report.
• The Global Customer Service team notifies acquirers.
To avoid duplicate communications, Mastercard will no longer require the Global Customer
Service team to contact the acquirer when a First Presentment/1240 message is rejected. Upon
receiving a T112/T113 or TY30/TY34 file, global acquirers should immediately check the file for
error number 2202 or 2203. If the T112/T113 or TY30/TY34 file contains either of these error

Retrieval requests and fulfillments
numbers, acquirers must contact the Global Customer Service team to request a risk-
management approval code.
Retrieval requests and fulfillments

On occasion, the issuer may find it necessary to request a copy of the TID to satisfy a
cardholder’s inquiry or resolve an internal investigation. An acquirer is under obligation to fulfill
this request by providing a copy or substitute draft of the TID, or by providing a response
indicating the reason for its failure to honor the request.
Customers may not submit retrieval requests for ATM transactions.
NOTE: Refer to the MasterCom manuals for more information about retrieval requests and
fulfillments, including information about processing time frames and processing procedures.
Healthcare retrieval requests and fulfillments

Mastercard has provided a means for issuers who must respond to an IRS request for healthcare
Inventory Information Approval System (IIAS) data.
The issuer instigates the retrieval request process through Mastercom electronic imaging
system. The healthcare retreival request must be fulfilled by the acquirer outside of Mastercom
through a secure method (such as, sending a bulk file, a fax, or a hard copy to a mailing
address).
When the acquirer fulfills the retrieval request outside of Mastercom, the request within
Mastercom will cycle off their Mastercom request queue or the acquirer can use an appropriate
fulfillment response code.
Issuers can provide instructions to the acquirer for fulfilling this request through PDS 1046
(Member-to-Member Proprietary Data), to be sent in the Retrieval Request/1644 message.
PDS 1046 is the preferred method. If the issuer sends more than one preferred method (for
example, both a fax and a hard copy to a mailing address), the acquirer can choose which
method to use to fulfill the request. For all IIAS (an accepted and widely adopted inventory
system that assists merchants with substantiation of qualified health care purchases including
cash back, healthcare, prescription, prepaid bill pay, and vision amounts) requests, the acquirer is
not allowed to send documentation through Mastercom to fulfill the request. The ability to
attach documentation for all IIAS requests has been disabled in Mastercom.
Used in this context for retrieval requests, PDS 1046 would be variable in length, with a
minimum of 16 positions and a maximum of 200. It would be preceded by the standard IPM tag
field of 1046 and a three-digit length value.
The suggested format for issuers requesting this information follows.

Chargeback processing
PDS 1046 (Member-to-Member Proprietary Data)
Sequence of
Information Positions Name Attribute Justification
1 1-16 Fulfillment Fax Number ans-16 left
2 17-46 Contact Name ans-30 left
3 47-62 Contact Phone Number ans-16 left
4 63-122 Contact E-mail Address ans-60 left
5 123-152 Contact Street Address ans-30 left
6 153-177 Contact City ans-25 left
7 178-187 Contact Postal (ZIP) Code ans-10 left
8 188-190 Contact State, Province, or ans-3 left

Region
9 191-193 Contact Country (alpha) ans-3 left
NOTE: Because this format is only a recommendation and uses existing customer-to-customer
proprietary data fields within the IPM format, it is not documented in the IPM Clearing Formats
manual.
Chargeback processing
The chargeback process begins when an issuer determines that, for a valid chargeback reason
specified in the Chargeback Guide, the transaction may be charged back to the acquirer for
possible remedy. The chargeback life cycle includes the first chargeback and, if necessary, a
second presentment, arbitration chargeback, if applicable, and arbitration case filing.
The required time frames applicable to each cycle are described below.
Time frame for first chargeback

First chargebacks are carried out within certain amount of time following the St. Louis
Operations Center (Central Site) processing date depending on various details.
The message reason code determines the timeliness requirements for the first chargeback. The
time frames for first chargebacks are 45, 60, 90, 120, and 540 calendar days after the Central
Site processing date, depending on the reason for the chargeback. For certain message reason
codes, Global Clearing Management System does not edit the time frame. The chargeback time
frame may begin with a day after the Central Site processing date.

Time frames for second presentments or arbitration chargebacks
When delayed delivery of goods or performance of services by an acceptor results in a

subsequent dispute about the condition of the goods or the quality of the services, Mastercard
will calculate the period of 120 days using the delivery or performance date.
In cases that involve… Mastercard calculates the period of 120 days from…
Delayed delivery of goods or The latest anticipated date that the acceptor was to provide the
performance of services that goods or services.
the cardholder asserts the
acceptor never provided
Interrupted services The date that the services cease.
NOTE: In no case shall the first

chargeback exceed 540 days
(approximately 18 months)
from the Central Site
processing date of the first
presentment. The issuer must
prorate the chargeback
amount to reflect the services
received.
NOTE: For more information about chargeback life cycle support and the time frame associated with
each chargeback reason, refer to the Chargeback Guide.
Time frames for second presentments or arbitration chargebacks

Second presentments or arbitration chargebacks are carried out within a certain amount of
time.
The time frame for a second presentment involving the Mastercard brand or arbitration
chargeback is 45 calendar days. Global Clearing Management System measures this as the time
between the St. Louis Operations Center (Central Site) processing date on which the customer
received the chargeback or second presentment and the Central Site processing date on which
Global Clearing Management System processed the transaction as a second presentment or
arbitration chargeback. Global Clearing Management System will reject any second
presentment or arbitration chargeback submitted more than 45 days after receipt of the
previous cycle.
Time frames for disputes involving arbitration

Disputes involving arbitration are carried out within a certain amount of time.
The acquirer may file an arbitration case to Mastercard, for a decision on the dispute, within 45
calendar days of the St. Louis Operations Center (Central Site) processing date of the
arbitration chargeback.

Chargeback timeliness edits
Chargeback timeliness edits

The chargeback timeliness edits verify that second presentments and arbitration chargebacks
do not exceed the applicable time frames for submission.
The chargeback timeliness edits use the Central Site processing date found in PDS 0158
(Business Activity).
The life cycle timeliness edits will compare

the… To the…
Central Site processing date in PDS 0158 Retrieval history date in PDS 0243 (Mastercom
(Business Activity), subfield 5 (Business Date) Retrieval Response Data), subfield 1 (Mastercom
Issuer Retrieval Request Date)
Central Site processing date in PDS 0158, Chargeback History File business date in PDS 0158,
subfield 5 subfield 5
Central Site processing date in PDS 0158, Date in retrieval history in DE 31 (Acquirer Reference
subfield 5 Data), subfield 3 (Julian Processing Date YDDD)
Retrieval history in PDS 0243, subfield 1 Date in retrieval history in DE 31, subfield 3
Examples
Compare the following examples to understand the effect of the submission date and time on
chargeback processing. In both examples, the customer submits the second presentment with a
message reason code of 2008, which has the requirement of submission within 45 days after
the first chargeback.
Events Example 1 Example 2

Global Clearing Management System 05 July 05 July
processes the first chargeback (Central
Site processing date):
The customer submits the second Saturday, 18 August after the Saturday, 18 August before
presentment with a message reason sixth clearing. The file header the sixth clearing. The file
code of 2008. date is Saturday, 18 August. header date is Saturday, 18
August.
Global Clearing Management System Sunday, 19 August. Therefore, Saturday, 18 August.

attempts to process the second the date in PDS 0158, subfield Therefore, the date in PDS
presentment (Central Site processing 5 is 19 August. 0158 (Business Activity),
date). subfield 5 (Business Date) is
18 August.

Exclusion from chargeback timeliness edits
Events Example 1 Example 2

Global Clearing Management System PDS 0158, subfield 5 date = PDS 0158, subfield 5 date =
compares the second presentment 19 August 18 August
processing date (date in PDS 0158,
First chargeback processing First chargeback processing
subfield 5), to the first chargeback
date = 05 July date = 05 July
processing date (date in the
Chargeback History File).
Global Clearing Management System 46 days 45 days

edits determine the time elapsed
between the first chargeback
processing date and the second
presentment processing date.
RESULT Global Clearing Management Global Clearing Management

System rejects the second System accepts the second
presentment because it is past presentment because it is
the 45-day time frame. within the 45-day time frame.
Exclusion from chargeback timeliness edits

Under certain conditions, Mastercard may grant exclusions for individual account ranges or
acquiring BINs.
A customer experiencing severe operational difficulties because of a natural disaster may
contact the Global Customer Service team and apply for a hardship variance. Once approved by
Mastercard, the hardship variance waives timeliness edits applicable to all chargeback reasons
for the prescribed time frame.
To allow for situations in which the hardship affects only a portion of a customer’s activity or
affects a processing center located in another country, Mastercard may grant exclusions for
individual account ranges or acquiring BINs. Exclusions granted at the customer level will cause
timeliness edits to be waived for all of a customer’s activity. Mastercard may also grant a
hardship variance at the processor level, which will result in timeliness edits being waived for all
customers assigned to that processor.
To implement a chargeback exclusion systematically, the IPM format uses edit exclusion
indicators.
Edit exclusion indicators are codes that Global Clearing Management System uses to designate
a transaction.
Global Clearing Management System edits PDS 0260 (Edit Exclusion Indicator), subfield 1
(Exclusion Request Code) for valid values. If Global Clearing Management System receives a
first chargeback, second presentment, or arbitration chargeback transaction with an invalid
exclusion indicator in this private data subelement, Global Clearing Management System will
reject the message.
Global Clearing Management System may reject a transaction for a reason other than an
invalid exclusion indicator (such as an invalid processing code provided in DE 3 [Processing

Processing chargeback messages
Code]) and also find that the exclusion indicator is invalid. In this case, Global Clearing
Management System will provide the IPM error code 2006 (INVALID EXCLUSION INDICATOR) in
addition to the other applicable error codes in the IPM error message that the system returns to
the sender of the transaction.
Processing chargeback messages

Customers must process all chargebacks, second presentments, and arbitration chargebacks
through Global Clearing Management System using the First Chargeback/1442, Second
Presentment/1240, and Arbitration Chargeback/1442 messages.
The IPM Clearing Formats manual shows the formats and data requirements for these
messages.
IPM messages are composed of data elements and private data subelements critical to the
exchange of transactions between acquirers and issuers. Customers must ensure that all of the
data contained within the messages specified above is accurate and complete.
The submitting customer must perform specific edits on the messages specified above. In
general, the customer must edit all fields for correct content, and the message must contain all
required fields.
If the customer processes the message and it does not pass the edit criteria when Global
Clearing Management System receives it, Global Clearing Management System will reject the
message as a single item reject.
Identifying the chargeback cycle
Customers must use a combination of message type identifier (MTI) and function code to
identify the current cycle of the chargeback.
The specific reason for the First Chargeback/1442, Second Presentment/1240, or Arbitration
Chargeback/1442 is in DE 25 (Message Reason Code).
DE 24 (Function
MTI Code) Description
1442 450 First Chargeback (Full)/1442 for the full First Presentment/1240
amount. Initiated by the issuer.
453 First Chargeback (Partial)/1442 for part of the First Presentment/1240

1240 205 Second Presentment (Full)/1240 for the full First Presentment/1240
amount. Initiated by the acquirer.
282 Second Presentment (Partial)/1240 for part of the First Presentment/

1240 amount. Initiated by the acquirer.

Submitting the transaction amount for first chargebacks, second presentments, and arbitration
DE 24 (Function
MTI Code) Description
1442 451 Arbitration Chargeback (Full)/1442 for the full First Presentment/1240
454 Arbitration Chargeback (Partial)/1442 for part of the First Presentment/

1240 amount. Initiated by the issuer.
An issuer may exercise one first chargeback per presented transaction within the applicable
time frame limit specified in the Chargeback Guide.
An acquirer may process a second presentment if it can provide additional information, as
specified in the Chargeback Guide, to correct the original defect that led to the chargeback.
An issuer may process an arbitration chargeback if it is determined that a transaction was
improperly presented for a second time or if the issuer does not receive supporting
documentation required with the second presentment.
Submitting the transaction amount for first chargebacks, second presentments, and
arbitration
Customers must submit three elements for first chargebacks, second presentments, and
arbitration.
For first chargebacks, second presentments, and arbitration chargebacks, the sender submits
• DE 4 (Amount, Transaction), which provides the amount of the current chargeback in either
U.S. dollars or the customer's intracurrency settlement currency
• DE 30 (Amount, Original), which provides the original amount from the first presentment, in
the original transaction currency; and
• PDS 0149 (Currency Codes, Amounts, Original), which provides the currency code associated
with the original transaction amount in DE 30.
If the message is for a partial amount, the sender also may submit PDS 0268 (Amount, Partial
Transaction), which provides the partial amount being submitted as a chargeback or second
presentment, in the original transaction currency.
NOTE: Once an issuer or acquirer submits a transaction as a partial transaction, customers must
submit the transaction as partial in all subsequent phases of the chargeback cycle.
DE 30 consists of the following subfields

• Subfield 1: Original Amount, Transaction and
• Subfield 2: Original Amount, Reconciliation.
PDS 0149 consists of the subfields
• Subfield 1: Currency Code, Original Transaction Amount and
• Subfield 2: Currency Code, Original Reconciliation Amount.
PDS 0268 consists of subfields

Chargeback procedures for purchase with cash back transactions
• Subfield 1: Amount, Partial Transaction and

• Subfield 2: Currency Code, Partial Transaction.
The combination of DE 4 and these three elements provides the receiver of the transaction with
a complete history of the amounts involved in the chargeback cycle. The DE 4 amount supports
partial first chargebacks, second presentments, and arbitration chargebacks while still providing
the original amount of the transaction from the first presentment in the original transaction
currency.
Customers must meet the following specific requirements related to the amount, depending on
the phase of the chargeback life cycle.
• An issuer must not present a chargeback for an amount that exceeds the full amount of the
transaction presented by the acquirer. An issuer may present a chargeback for an amount
less than the full amount of the transaction. The only exceptions are the following:
– If the message must be converted to U.S. dollars, the chargeback may be for an amount
greater than the transaction amount originally presented by the acquirer.
– If the transaction uses message reason code 4853 (Cardholder Dispute: Credit Posted as
a Purchase) or 4860 (Credit Posted as a Purchase), the chargeback is for twice the
transaction amount originally presented by the acquirer.
• To charge back a transaction for an amount less than the full amount of the transaction, the
issuer uses function code 453 with MTI 1442. The issuer includes the partial amount in
PDS 0268.
• An acquirer must not second present a chargeback for an amount that exceeds the full
amount of the transaction charged back by the issuer. The acquirer may second present for
an amount less than the full amount of the transaction.
• To submit a second presentment for an amount less than the full amount of the transaction,
the acquirer uses function code 282 with MTI 1240. The acquirer includes the partial amount
in PDS 0268.
• An issuer must not submit an arbitration chargeback for an amount that exceeds the full
amount of the transaction presented by the acquirer. An issuer may present an arbitration
chargeback for an amount less than the full amount of the transaction.
• To submit an arbitration chargeback for an amount less than the full amount of the
transaction, the issuer uses function code 454 with MTI 1442. The issuer includes the partial
amount in PDS 0268.
Issuers choosing to process chargebacks on purchases with cash back transactions for Maestro®
and Debit Mastercard® transactions should adhere to certain guidelines.
Chargebacks on net purchase only

If only the net purchase or a portion of the net purchase of a purchase with cash back
transaction is to be charged back, the issuer should submit it as a First Chargeback (Partial)/
1442 or Arbitration Chargeback (Partial)/1442.
The following table identifies the message element criteria for processing chargebacks on
purchases with cash back transactions.

Message element criteria for processing chargebacks on purchase with cash back transactions
Message Element Requirement

DE 3 (Processing Code), subfield Should be populated with 09, purchase with cash back
1 (Cardholder Transaction Type)
DE 4 (Amount, Transaction) Should contain the amount to be charged back
DE 30 (Amounts, Original) Should contain the original transaction amount of the First
Presentment/1240
DE 54 (Amounts, Additional) Should be present and be populated with zeros
Chargebacks on total amount

If the entire transaction amount of a purchase with cash back transaction is to be charged back,
the issuer should submit it as a First Chargeback (Full)/1442 or Arbitration Chargeback (Full)/
1442.
The following table identifies the message element criteria for processing chargebacks on
purchase with cash back transactions.
Message element criteria for processing chargebacks on purchase with cash back transactions
Message Element Requirement

DE 3 (Processing Code), subfield Should be populated with 09, purchase with cash back
1 (Cardholder Transaction Type)
DE 4 (Amount, Transaction) Should contain the amount to be charged back
DE 30 (Amounts, Original) Should contain the original transaction amount of the First
Presentment/1240
DE 54 (Amounts, Additional) Should contain the cash back portion of the purchase with cash back
transaction
Issuers must not submit chargebacks on the cash back amount on Debit Mastercard purchases
with cash back transactions for the following message reason codes.

DE 95 (Card Issuer Reference Data)
Message reason codes
DE 25 (Message
Reason Code) Description
4853 Cardholder Dispute: Defective Merchandise/Not as Described
4854 Cardholder Dispute: Not Elsewhere Classified (U.S. region only)
4855 Nonreceipt of Merchandise
4859 Services Not Rendered
4860 Credit Not Processed
If initiating a chargeback for the purchase amount or a portion thereof, the issuer should submit
a First Chargeback (Partial)/1442 or Arbitration Chargeback (Partial)/1442.
DE 95 (Card Issuer Reference Data)
DE 95 (Card Issuer Reference Data) is a control value of 10 positions that the issuer assigns
with its original chargeback and is used to track the chargeback throughout its life cycle.
The issuer may, at its option, include its customer ID number when defining the value for this
element. The card issuer reference data may be used to identify the originator, and in turn, the
originator may determine and direct the chargeback to the department or affiliate customer
that initiated the original chargeback.
The issuer provides DE 95 when processing retrieval or chargeback messages. The acquirer is
required to include the same data in a subsequent fulfillment of the retrieval request or acquirer
advisement. In the case of a chargeback, this applies to both Second Presentment/1240 and
Arbitration Chargeback/1442 case filings.
The unique card issuer reference data provides an audit trail of a chargeback’s processing life
cycle. It allows customers to locate the source documentation needed to rebill a cardholder or
recharge a acceptor.
The issuer must not use the card issuer reference data number more than once in a 12-month
period. Global Clearing Management System edits validate all incoming chargebacks against
the chargeback history file to ensure that the incoming chargebacks do not contain a card issuer
reference data used previously with the same BIN. Acquirers must not modify the card issuer
reference data when second presenting a chargeback. Global Clearing Management System will
reject the chargeback or second presentment if it contains an invalid card issuer reference data.
Customers should always submit DE 95 in all chargeback life cycle transactions, even though
Global Clearing Management System does not perform the validation edits for ATM chargeback
life cycle transactions (DE 3 [Processing Code], subfield 1 [Cardholder Transaction Type], value
of 01).

PDS 0262 (Documentation Indicator)
PDS 0262 (Documentation Indicator)

The documentation indicator shows whether supporting documentation will be provided for the
current chargeback or fee collection cycle. The field is mandatory for First Chargeback/1442,
Second Presentment/1240, and Arbitration Chargeback/1442 messages.
IF supporting documentation… THEN this PDS contains a value of…

Is neither required nor sent (for example, for a retrieval or fee 0
collection message)
Will follow the message 1
Global Clearing Management System will edit this private data subelement for all First
Chargeback/1442, Second Presentment/1240, and Arbitration Chargeback/1442 messages
and will reject the message if the indicator is not a 0 or a 1.
DE 72 (Data Record)
DE 72 (Data Record) is used during the different chargeback processing cycles to provide the
receiving customer with specific information about the item.
NOTE: For specific message text requirements for each type of message, refer to the Chargeback
Guide.
Getting additional information about chargebacks

Elements which carry information about the previous cycle of the transaction provide customers
with additional information when processing exception items.
• DE 30 (Amounts, Original), PDS 0149 (Currency Codes, Amounts, Original), and PDS 0268
(Original and Amount, Partial Transaction)
For first chargebacks, second presentments, and arbitration chargebacks, the sender
submits DE 30 and PDS 0149, which provide the original amount and associated currency
code from the first presentment, in the original transaction currency. PDS 0268 provides the
partial amount being submitted as a chargeback or second presentment, in the original
transaction currency.
• PDS 0243 (Mastercom Retrieval Response Data)
This private data subelement contains information related to the issuer's retrieval request,
the acquirer's response, and any subsequent decisions made by the issuer, the Mastercom
system, or both. The information provided in this private data subelement is obtained from
Mastercom historical data supplied by Global Clearing Management System. This private
data subelement consists of these eight subfields.
– PDS 0244 (Mastercom Chargeback Support Documentation Dates)
– Subfield 1: Mastercom Chargeback Support Documentation Sender Processing Date
(First Chargeback/1442).
– Subfield 2: Mastercom Chargeback Support Documentation Sender Processing Date
(Second Presentment/1240).

Getting additional information about chargebacks
This private data subelement contains each date that the customers sent Chargeback
Support Documentation (CSD) for the first two chargeback cycles. This information
indicates whether the customers provided CSD in the appropriate time frames. The
system provides this information if it is available.
– PDS 0260 (Edit Exclusion Indicator)
This private data subelement contains information about processing of edit exclusions
when Mastercard has granted deactivation of transaction life cycle editing to a particular
customer. Mastercard will notify the customer when the system excludes chargeback
cycle edits and will advise the customer of the reason for the exclusion. PDS 0260 consists
of the following subfields:
– Subfield 1: Exclusion Request Code. This code identifies the originator request to
bypass edit sets during processing of the transaction.
– Subfield 2: Exclusion Reason Code. This code, which the Global Clearing Management
System assigns, indicates approval of, and the reason for, the edit exclusion.
– Subfield 3: Exclusion Results Code. This code, which the Global Clearing Management
System assigns, indicates the edit set or sets that the Global Clearing Management
System actually bypassed when it processed the transaction.
– PDS 0262 (Documentation Indicator)
This private data subelement indicates whether supporting documentation will be
provided for the current chargeback cycle.
– PDS 0266 (First Chargeback/Fee Collection Return Data)
This private data subelement contains dates, reasons, and other information from a first
chargeback. When this PDS is present in a second presentment or an arbitration
chargeback, it provides information from the first chargeback of that transaction,
including the message text from the first chargeback.
– PDS 0267 (Second Presentment/Fee Collection Resubmission Data)
This private data subelement contains dates, amounts, reasons, and other information
from a second presentment. When this private data subelement is present in an
arbitration chargeback, it provides information from the second presentment of that
transaction, including the message text from the second presentment.
Both PDS 0266 and PDS 0267 contain the following information from the appropriate
chargeback cycle.
– Subfield 1: Message reason code (from DE 25 [Message Reason Code] of the first
chargeback or second presentment)
– Subfield 2: First return business date (from PDS 0158 [Business Activity], subfield 5
[Business Date] of the first chargeback or second presentment)
– Subfield 3: Edit exclusion reason code (from PDS 260, subfield 2 of the first
– Subfield 4: Edit exclusion results code (from PDS 260, subfield 3 of the first
– Subfield 5: First return amount (from DE 4 [Amount, Transaction] of the first

Arbitration following chargebacks
– Subfield 6: First return currency code (from DE 49 [Currency Code, Transaction] of the
first chargeback or second presentment)
– Subfield 7: First return data record (from DE 72 [Data Record] of the first chargeback
or second presentment)
Arbitration following chargebacks

When the acquirer and issuer have exhausted all of their rights under the previously mentioned
three-step chargeback cycle, the acquirer may petition Mastercard to resolve the dispute in an
arbitration case filing.
The customer may not file an arbitration case unless it has first exercised all of its rights under
the previous processing cycles noted in this chapter.
Chargeback infractions worthy of compliance action

Compliance addresses situations where there is a rules violation but no applicable chargeback
reason code.
A customer may proceed to compliance for any alleged violation that
• would result in a financial loss
• is directly related to a rule or other Standard that is published in a Mastercard bulletin or
manual and is currently effective, and
• is not addressed by a chargeback remedy defined in the Chargeback Guide.
Any customer may proceed to compliance within 180 calendar days from the date when the
infraction occurred.
NOTE: For more information about compliance procedures, refer to the Chargeback Guide.
Transaction research request

A transaction research request is a request by a customer for Mastercard to provide information
about a transaction.
Customers can use either of the following two methods to research information about previous
transactions.
• Transaction Investigator tool to conduct research about specific transactions or a range of
transactions for an account number. The report generated provides customers with
transactional data such as card number, card validation code 2 (CVC 2) response, point-of-
sale entry mode, cardholder present information, merchant advice code, and message type
identifier (MTI).
• If the transaction is over 180 days, customers can submit a request using the Authorization
Research Request (Form 074). The Global Customer Service team will perform the research
for you. The team provides information about authorization transactions, duplicate reports,
microfiche re-creation, currency conversion rates, BIN and ICA numbers, and conversions.

Ways to perform a transaction research request
Ways to perform a transaction research request

Customers can choose between two methods to research information about previous
transactions.
• Mastercard Transaction Investigator tool: This tool allows customers to conduct research
about specific transactions or a range of transactions for an account number.
• Global Customer Service: Contact the Global Customer Service team to have the team
perform the research for you. The team provides information about clearing transactions. To
participate in this service, customers must complete the Clearing Transaction Research
Request (Form 949).
Capabilities of the Transaction Investigator tool

The Mastercard Transaction Investigator tool enables users to complete variety of unique tasks.
The Mastercard Transaction Investigator tool allows users to search the Mastercard data
warehouse for first presentment transactions that a customer has processed either as an issuer
or an acquirer.
This capability
• provides secure access to proprietary clearing information
• retrieves relevant transaction data elements online with the option to view all available data
elements for a transaction message type, and
• returns the data within seconds after the customer electronically submits the request for
research.
In addition, users can print the transaction data or export the information into a Microsoft®
Excel file.
The transaction data is stored in the Mastercard data warehouse and is available to customers
for three years. Most transactions are available within 24 hours of the transaction time.
To access the Transaction Investigator Tool, customers must be licensed users. New users can
sign up for Mastercard Connect through the Online Registration System. Registration is free to
Mastercard customers.
Mastercard Connect registration
To register for Mastercard Connect, follow these steps.
1. Log on to Mastercard Connect at www.mastercardconnect.com.
2. On the Mastercard Connect landing page, click the Sign Up link in the left panel.
3. Follow the instructions that appear on your screen.
Initial access to Mastercard Connect requires only your user ID and password, which are created
during the enrollment process. A SecurID token is assigned, if required for a Mastercard Connect
product that requires higher security level access.
For any assistance with Mastercard Connect enrollment or product registration, contact Global
Customer Service Support at [email protected].

Transaction Investigator product registration
Transaction Investigator product registration

After you have successfully registered and obtained your Mastercard Connect user ID and
password or if you are an existing Mastercard Connect user, follow these steps to register for
Transaction Investigator.
Procedure
1. Log on to Mastercard Connect at www.mastercardconnect.com.
2. Enter your User ID and Password.
3. Click Store on the main menu (located in the upper-right corner) on the Mastercard Connect
home page.
4. Scroll or search for Transaction Investigator.
5. Click Add to Shopping. A confirmation message appears.
6. Click Cart to display the cart, and then click Checkout to display the Order Details window.
7. Under Order Details, click Review Order, and then click Place Order.
Once the Security Administrator approves the request, Transaction Investigator will appear
under the Applications menu on the Mastercard Connect home page.
For any assistance with Mastercard Connect enrollment or product registration, contact
Global Customer Service Support at [email protected].
Accessing and using the Transaction Investigator

After becoming licensed for the Transaction Investigator tool, follow these steps to access and
use the tool.
Procedure
1. Log on to Mastercard Connect using your Mastercard Connect user ID and PIN/SecurID.
2. From the Applications menu, click Transaction Investigator.
On selecting Transaction Investigator, a new browser window opens and displays the
Transaction Investigator home page.
Searches can be performed from this screen using an account number and dates
combination, Auth Only data or click Advanced Search for additional search criteria.

3. Click Advanced Search and select the Clearing View on the left pane.
Clearing summary
A summary of clearing information is displayed here based on the criteria entered in the
search. The information displayed may contain several records. Clicking a record in the grid
will automatically highlight and display the corresponding data at the top of the other open
panel: Clearing Detail. Data elements that do not contain any data are indicated in the
display with the words No Data.

You can customize the data display using the sort feature on any column in the Clearing
Summary. By clicking the column heading, the sort direction can be toggled. The default sort
is by transaction date.
Clearing detail
The clearing data detail is displayed here for the record selected in the Clearing Summary
grid.
To expand the data elements that contain subfield data, click the corresponding plus sign.
The subfield data is highlighted for the expanded data element.
Global Collection-Only data

Global Collection-Only data consists of Collection-only transactions neither issued nor
acquired in the United States. A GCO transaction is a transaction that is cleared and settled
outside the Mastercard Clearing system. This would include transactions that are either
– acquired and issued by the same customer (On-Us) or
– acquired and issued by customers processing through the same processor (intra-
processor)
When a collection-only transaction occurs, the transaction is sent to Mastercard's Global
Collection Management System GCMS with a settlement indicator (PDS165S01) value C to
indicate collection-only.

How to set user preferences
When the Global Collection Only option is selected, the query searches for GCO transactions
from the GCO data store. The Clearing summary and details grids will display the GCO
transaction records.
How to set user preferences

You can set user preferences to customize the display of information in each panel within the
Transaction Investigator.
Procedure
1. Click the Customize box, from the panel tool bar.
2. From the Customize window, select the data elements that you want to hide from view.

Understanding fees for transaction research requests
3. Click the Move Left arrow to move the selected data elements to the Hidden from View
panel. Use the Move Right arrow to move selected data elements to the My View panel.
4. Select the desired data element in the My View panel and click either the Up or Down arrow
to change the display order of the data elements.
5. Click Save.
6. Click Restore Default to reset the display to show all data elements.
7. Clicking on Search after entering the Cardholder account number and the date range, the
results may look similar to the following illustration. The Clearing Detail will display the
details corresponding to the highlighted transaction in the Clearing Summary grid.
Understanding fees for transaction research requests

A general research fee applies to each customer inquiry requesting information that is readily
available to the customer in a Mastercard publication, report, service, or other source.
Refer to the appropriate regional Mastercard Consolidated Billing System manual for fees and
billing information (The billing events 2AB1710, 2AB1711, and 2RP1778 apply).
Global Clearing Management System transaction and chargeback

analysis reports
These tables and figures provide details about Global Clearing Management System transaction
and chargeback analysis reports, such as the bulk types through which they are transmitted, the
versions in which they appear, and the descriptions of their fields.
The transaction and chargeback analysis reports include
• Global Clearing Management System Transaction/Chargeback Analysis Report (IP776010-
AA)

Global Clearing Management System transaction and chargeback analysis reports
• Chargeback Activity Summary: Acquirer (IP776020-AA), and

• Dollar/Volume Summary Report: Acquirer (IP776030-AA).
The Global Clearing Management System uses the T783 (production) and T784 (test) bulk
types to transmit these reports.
These three reports have three versions with the same layout.
Version… Summarizes activity by…

-AA Acquirer
-BB Issuer
-CC Global Clearing Management System totals
Because the layouts are the same, the following shows only the -AA version.
These reports are available in media types
• Mastercard Network/Bulk
• Mastercard File Express, and
• CONNECT:Direct.
To request these reports, please contact your account manager or Mastercard Customer
Implementation Specialist. the Global Customer Service team.

Figure: Global Clearing Management System Transaction/Chargeback Analysis report (IP776010-AA)

Report IP776010-AA field descriptions
Field Description
Report Name Constant; Value is always Mastercard Global Clearing Management System
Transaction/Chargeback Analysis..
Report Number Constant; Value is always IP776010-AA.
Customer ID Received from Global Clearing Management System customer master file.
Customer Name Name of the customer associated with the above member ID.
Report Subtitle Constant; Value is always Life Cycle Volume Analysis—Acquirer.
Run Date Current processing date.
Page Incremental number starting at 1 for each new ICA number/customer ID.
Period From The specific beginning and end dates of the reporting month.
Year-to-date Calendar year to date beginning with January through the current reporting month.
Financial Detail Sent Total number of First Presentments/1240-200.
Dollar Volume Total U.S. dollar amount of First Presentments/1240-200.
First Chargeback Total number of First Chargebacks/1442-450 (full) and 1442-453 (partial).
Received
Chargeback Dollars Total U.S. dollar amount of 1442-450 (full) and 1442-453 (partial) messages.
Retrieval Reqst Recd Total number of Retrieval Request/1644-603 messages.
PCNT FNCL Value of the first Chargeback Received, Chargeback Dollars, and Retrieval Reqst
Recd fields as a percentage of the total First Presentments/1240-200 messages
sent/received by the customer.
PCNT Global Clearing Value of fields 1 and 5 for the customer as compared with the total volume of
Management System corresponding activity processed by Global Clearing Management System for all
customers (IP776010-CC report).
Retrieval Volume
Retrieval ReqstRecd (by Total number of Retrieval Request/1644-603 messages processed for Mastercom
acquirer) Sent (by and manual (non-Mastercom) retrieval activity.
issuer)
Retrieval Volume
Fulfillments Sent Total number of fulfillments processed for Mastercom and manual (non-Mastercom)
fulfillment activity.

Field Description
Retrieval Volume
CgbkRecd Total number of First Chargeback/1442-450 and 1442-453 messages sent/

received. Both Mastercom and manual (non-Mastercom) chargeback activity is
reported.
vs Retvls Recd Total number of First Chargeback/1442-450 and 1442-453 messages as a

percentage of total retrieval requests received (Retrieval Reqst Recd field).
Percentages are shown in the report for Mastercom, manual (non-Mastercom), and
total activity.
Reason Code Total number of First Chargeback/1442-450 and 1442-453 messages. Both
Mastercom and manual (non-Mastercom) activity is reported.
Retrieval Volume
c
Retrvls Recd vs Fin Sent Total number of Retr. Rqst. Rcd. (Retrieval Request/1644-603 messages) as a
percentage of Financial Detail Sent (First Presentment/1240-200 messages) for
Mastercom and manual (non-Mastercom) activity.
1st Cgbk Number of 45-day, 120-day, and total First Chargeback/1442-450 (Full) and
1442-453 (Partial) messages for all message reason codes received (by acquirer) or
sent (by issuer).
NOTE: Included in the 45-day count are transactions submitted with message
reason code, which are 60-day chargebacks, and included in the 120-day count are
ATM transactions submitted with reason code 4859, which are 180-day
chargebacks.
2nd Pres Number of 45-day, 120-day, and Second Presentment/1240-205 (Full) for all
message reason codes received (by issuer) or sent and 1240-282 (Partial) messages
(by acquirer).
Arbitration Chargeback Number of 45-day, 120-day, and total Arbitration Chargeback/1442-451(Full) and
1442-454 (Partial) messages for all reason codes received (by acquirer) or sent (by
issuer).
Total Volume Number of all first chargeback, second presentment, and arbitration chargeback
messages.
Total Total number of First Chargeback (1442-450 and 1442-453), Second Presentment
(1240-205 and 1240-282), and Arbitration Chargeback (1442-451 and 1442-454)
messages.

Field Description
Average Ticket Total chargeback dollars divided by total chargeback volume. Total U.S. dollars can
be derived by adding the net U.S. dollar amount for chargebacks and second
presentments shown on the corresponding IP776030 Dollar Volume Summary
report.

Figure: Chargeback Activity Summary: Acquirer (IP776020-AA)

Field Description
Transaction/Chargeback Analysis..
Customer Name Name of the customer associated with the above customer ID.
Report Subtitle Constant; Value is always Chargeback Activity Summary–Acquirer.
Reason Code All activity on this report is sorted by message reason code. Message reason
codes 4834 and 4859 include both ATM and non-ATM activity. For a
chargeback reason code, both MasterCom and manual (non-MasterCom)
activity is reported.
Percent of Cgbk Percentage of Total Chargeback Volume (for message reason code
specified) to the grand total of total chargeback volume processed.
Total Cgbk Volume Total number of first chargebacks, second presentments, and arbitration
chargebacks by message reason code.
Total Cgbk DollarAmount Total dollar amount of first chargebacks, second presentments, and
arbitration chargebacks by message reason code.
1st Cgbk Volume of First Chargeback/1442-450 (Full) and 1442–453 (Partial)

messages.
2nd Pres Volume of Second Presentment/1240-205 (Full) and 1240-282 (Partial)

messages.
Arb Cgbk Volume of Arbitration Chargeback/1442-451 (Full) and 1442-454 (Partial)

messages.
Grand Total Grand totals for all chargeback, second presentment, and arbitration
chargeback activity.

Figure: Dollar/Volume Summary Report: Acquirer (IP776030-AA)

Field Description
Transaction/Chargeback Analysis.
Report Subtitle Constant; Value is always Dollar/Volume Summary: Acquirer.
Year-to-date Calendar year-to-date beginning with January through the current

reporting month.
Transactions The count of transactions.
Dollar Amount The dollar amount corresponding to the specified transactions.
Financial Detail Debits Total number and associated dollar volume of First Presentment/1240-200
non-reversal debit messages.
Financial Detail Debit Reversals Total number and associated dollar volume of First Presentment/1240-200
reversal debit messages.
Financial Detail Credits Total number and associated dollar volume of First Presentment/1240-200
non-reversal credit messages.
Financial Detail Credit Reversals Total number and associated dollar volume of First Presentment/1240-200
credit reversal messages.
* Net Total (Transactions) Debits + credits - debit reversals - credit reversals.
* Net Total (Dollar Volume) Debits - credits - debit reversals + credit reversals.
Chargeback Debits Total number and associated dollar volume of non-reversal debit First
Chargeback/1442-450 (Full) and 1442-453 (Partial) and Arbitration
Chargeback/1442–451 (Full) and 1442-454 (Partial) messages.
Chargeback Debit Reversals Total number and associated dollar volume of reversal debit First
Chargeback/1442-450 (Full) and 1442-453 (Partial), and Arbitration
Chargeback/1442-451 (Full) and 1442-454 (Partial) messages.

Field Description
Chargeback Credits Total number and associated dollar volume of non-reversal credit First
Chargeback Credit Reversals Total number and associated dollar volume of credit reversal First
Representment Debits Total number and associated dollar volume of non-reversal debit Second
Presentment/1240-205 (Full) and 1240-282 (Partial) messages.
Representment Debit Reversals Total number and associated dollar volume of reversal debit Second
Representment Credits Total number and associated dollar volume of non-reversal credit Second
Representment Credit Reversals Total number and associated dollar volume of reversal credit Second
Presentment/1240–205 (Full) and 1240–282 (Partial) messages.
Retrieval Requests Total number and associated dollar volume of non-reversal Retrieval
Request/1644-603 messages.
Retrieval Request Reversals Total number and associated dollar volume of reversal Second
presentment/1240-205 (Full) and 1240-282 (Partial) messages.
Retrieval Request Fulfillments Total number and associated dollar volume of non-reversal Mastercom and
manual (non-Mastercom) fulfillment activity.
Retrieval Request Fulfillment Total number and associated dollar volume of reversal Mastercom and
Reversals manual (non-Mastercom) fulfillment activity.

Global Clearing Management System transaction processing for Account Level Management
services
Chapter 4 Global Clearing Management System

transaction processing for Account Level Management
services
This section describes how Global Clearing Management System performs transaction processing for
applicable Account Level Management services.
Account Level Management.............................................................................................................................121

Global Clearing Management System transaction processing for Account Level Management
services
Account Level Management
Account Level Management

Mastercard Account Level Management is a platform that enables specialized processing so
that Mastercard can manage capabilities at the individual card account level.
Mastercard Account Level Management provides issuers the flexibility of qualifying cardholder
accounts for competitive interchange as well as upgrading cardholder accounts to a different
card product. The following are the key capabilities of Account Level Management functionality.
Availability of, and distinctions of, are based on location:
• Enhanced Value
• Product Graduation Plus
• Product Graduation Select
• High Value
• Spend Shortfall
• Small Business Spend Processing
• Consumer Product Monitoring
Refer to the Account Level Management Manual for detailed information.

Mastercard contactless and PAN Mapping Service
Chapter 5 Mastercard contactless and PAN Mapping

Service
This chapter describes both how Global Clearing Management System performs transaction processing
for Mastercard contactless and the PAN Mapping Service.
Overview of the Mastercard contactless and PAN Mapping Service........................................................123

Mastercard contactless Mapping Service participation guidelines......................................................123
PAN Mapping Service.........................................................................................................................................124
Processing-only participation in the Mastercard contactless Mapping Service................................ 124
Processing and issuance of non-card form factor participation.......................................................... 124
Process flow of the Mastercard PAN Mapping Service..........................................................................124
Using the MPE to identify issuer account ranges participating in the contactless Mapping
Service.............................................................................................................................................................125
Identifying PAN Mapping within IPM Messages...................................................................................... 126
Contents of PDS 0001 (Mastercard Mapping Service Account Number).....................................126
PDS 0001, subfield 1 (Account Number Type)..............................................................................127
PDS 0001, subfield 2 (Account Number).......................................................................................129
Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data Input Mode)..............129
Processing transactions through the Mastercard contactless Mapping Service...............................129
DE 22 values identify contactless transactions to Global Clearing Management System........130
Processing First Presentment/1240 messages through the Mastercard contactless
Mapping Service.......................................................................................................................................130
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/
1442 messages through the Mastercard contactless Mapping Service........................................131
Processing Second Presentment/1240 messages through the Mastercard contactless
Mapping Service.......................................................................................................................................133
Processing Fee Collection (Retrieval Fee Billing)/1740 messages through the Mastercard
contactless Mapping Service.................................................................................................................133
Summary of the contents of elements related to the Mastercard contactless Mapping
Service....................................................................................................................................................... 134
Interchange compliance processing...........................................................................................................135
Mastercom processing................................................................................................................................. 136

Overview of the Mastercard contactless and PAN Mapping Service
Overview of the Mastercard contactless and PAN Mapping Service

Mastercard supports account level processes for Mastercard contactless and PAN Mapping
Service.
Mastercard contactless cards and non-card form factors that contain a proximity chip offer
consumers a fast and convenient way to pay. Using proximity chip payment technology,
consumers can pay for their purchases at the point of sale by tapping their Mastercard
contactless card or non-card form factor on a Mastercard contactless terminal. The Mastercard
contactless card or non-card form factor transmits the card information to the terminal. The
Mastercard contactless terminal interacts with existing authorization mechanisms to initiate
and complete the authorization. The increased speed and convenience make Mastercard
contactless a very attractive way to pay, especially in high-traffic venues such as mass transit
stations, movie theaters, and fast food restaurants.
Mastercard contactless Mapping Service participation guidelines

Participation in the Mastercard contactless and PAN Mapping Service, including definitions of
Mastercard contactless account number and primary account number (PAN), requires a user to
follow various guidelines.
Mastercard contactless account number is a unique number encoded on the proximity chip of a
Mastercard contactless card or non-card form factor that the Mastercard PAN Mapping Service
associates with the PAN.
PAN is the number that is embossed, encoded, or both, on a Mastercard card that identifies the
issuer and the particular cardholder account.
Mastercard recommends that a unique account number be used for Mastercard contactless
transactions. This unique account number is the optimal way to avoid the risk of cross-
contamination. Use of a unique account number in the Mastercard contactless chip is accepted
by the issuer only if the value in DE 22 (Point of Service Data Code), subfield 7 (Card Data Input
Mode) indicates proximity (for example, from a Mastercard contactless contactless chip). This
comparison allows blocking of the authorization for transactions presented through non-
proximity channels such as magnetic stripe, mail order/telephone order (MO/TO), and the
Internet.
Implementation of a separate Mastercard contactless account number requires the issuer to
• allocate an extra account number to provide Mastercard contactless functionality for an
existing PAN, and
• establish a cross-reference between the PAN and the Mastercard contactless account
number so that they are managed together, if required.
Mastercard recognizes that the use of a separate Mastercard contactless account number for
some issuers may not be viable; therefore, Mastercard created the Mastercard PAN Mapping
Service. This optional service helps issuers process Mastercard contactless transactions by
translating Mastercard contactless account numbers into PANs that issuers can process with

PAN Mapping Service
minimal impact. Mastercard contactless account numbers eligible for the service may belong to
a Mastercard issuer.
Through the Mastercard PAN Mapping Service, Mastercard can provide Mastercard contactless
issuance and processing services as described in this chapter.
PAN Mapping Service
Processing-only participation in the Mastercard contactless Mapping Service

Issuers may choose to offer the Mastercard contactless Mapping Service by creating the
mapping file themselves. This choice is referred to as Processing-only participation.
In this scenario, the issuers provide Mastercard with a file mapping their cardholders’ PAN to
Mastercard contactless account numbers. The issuer or Mastercard then provides each
cardholder with a Mastercard contactless card or non-card form factor containing a Mastercard
contactless account number.
When the Mastercard contactless card or non-card form factor is used at a Mastercard
contactless terminal, the transaction first comes to Mastercard, where the Mastercard
contactless account number is replaced with the cardholder’s PAN.
Processing and issuance of non-card form factor participation

Individual consumers may request a Mastercard contactless card or non-card form factor from
a secure Web site. This process is referred to as Processing and Issuance of Non-card Form
Factor participation.
Cardholders use a secure Web site to request or register a Mastercard contactless card or non-
card form factor and enter the PAN they would like to associate with it. The Web site performs
some security checks on the information entered and then approves the request. Mastercard
then provides the cardholder with the Mastercard contactless card or non-card form factor
requested. Upon receipt, the cardholder returns to the Web site and registers the Mastercard
contactless card or non-card form factor to activate the Mastercard contactless account
number. Mastercard collects the information provided through the Web site and creates the file
mapping of the Mastercard contactless account number to the PAN.
Process flow of the Mastercard PAN Mapping Service

Mastercard maintains a Mastercard PAN Mapping Service database that maps Mastercard
contactless account numbers to PANs.
The Mastercard contactless Mapping Service database is used by the Mastercard Network and
Global Clearing Management System, so that the acquirer can always process transactions
using the Mastercard contactless account number and the issuer can always process using the
PAN.

Using the MPE to identify issuer account ranges participating in the contactless Mapping Service
1. When a consumer taps an eligible Mastercard contactless card or non-card form factor on a
Mastercard contactless terminal, the card or non-card form factor transmits the
Mastercard contactless account number to the terminal.
2. The Mastercard contactless terminal passes the Mastercard contactless account number
and other authorization information to the acquirer.
3. The acquirer initiates an authorization message containing the Mastercard contactless
account number and sends it to the Mastercard Network.
4. The Mastercard Network maps the Mastercard contactless account number to the
cardholder’s PAN before sending the transaction to the issuer.
5. The issuer responds with an authorization response message containing the PAN.
6. The Mastercard Network maps the cardholder’s PAN back to the Mastercard contactless
account number and sends the response message on to the acquirer.
7. The acquirer forwards the Mastercard contactless account number and other authorization
response information to the Mastercard contactless terminal.
8. The Mastercard Network logs all authorizations for which it performed the Mastercard PAN
Mapping Service and makes this information available to Global Clearing Management
System.
9. The acquirer sends to Global Clearing Management System the corresponding clearing
message, containing the Mastercard contactless account number.
10. Global Clearing Management System maps the Mastercard contactless account number to
the PAN using either the authorization logs or the Mastercard PAN Mapping Service
database before sending the clearing message to the issuer for posting.
11. Issuers can send to Global Clearing Management System subsequent retrieval and
chargeback messages containing the cardholder’s PAN, and Global Clearing Management
System maps the cardholder’s PAN to the Mastercard contactless account number before
sending the message to the acquirer.
Refer to the Authorization Manual for detailed information about using this service for
authorization processing.
Using the MPE to identify issuer account ranges participating in the contactless Mapping
Service
The IPM MPE table IP0040T1: Issuer Account Range contains the Mapping Service Indicator
field. This field identifies issuer account ranges that require the Mastercard PAN Mapping
Service.
This field contains one of the following values for each issuer account range.
Value Description
space The issuer account range does not participate in the Mastercard PAN Mapping Service.
1 The issuer account range consists of PAN account numbers owned by an issuer, in
which the issuer actively participates in the PAN Mapping Service. Every transaction
containing this account range is to be mapped.

Identifying PAN Mapping within IPM Messages
Value Description
2 The issuer account range consists of PAN account numbers owned by an issuer, in
which the issuer actively participates in the PAN Mapping Service. Not all transactions
containing this account range are to be mapped because the issuer is phasing in the
PAN Mapping Service.
3 The issuer account range consists of contactless account numbers provided by

Mastercard, assigned to an issuer that participates in the Processing Only option of
the PAN Mapping Service.
4 The issuer account range consists of PAN account numbers provided by Mastercard,
assigned to an issuer that participates in the Processing and Issuance of Non-card
Form Factor option of the contactless Mapping Service by permitting its cardholders
to request a contactless card or non-card form factor through the website.

Mastercard, assigned to a merchant that sponsors the contactless card or non-card
form factor. The issuer passively participates in the PAN Mapping Service.

Mastercard, and Mastercard sponsors the contactless card or non-card form factor.
The issuer passively participates in the PAN Mapping Service.
Before distributing contactless non-card form factors to consumers, Mastercard adds to the
IPM MPE file issuer account ranges that consist of contactless account numbers. The IPM MPE
file contains valid Global Clearing Management System Product IDs, country codes, and other
fields necessary for processing for these issuer account ranges. They are assigned to participate
in all the default interregional, intraregional, and intracountry business services that are relevant
to their assigned country codes.
NOTE: If an issuer account range contains a value of 1-6 in this new field in the IPM MPE, acquirers
must send ALL transactions involving this issuer account range to Mastercard for authorization and
clearing because only the Mastercard systems contain the data needed to map a contactless account
number to a PAN. Transactions processed in an On-Us or intraprocessor mode will not have access to
this mapping data.
Identifying PAN Mapping within IPM Messages
Contents of PDS 0001 (Mastercard Mapping Service Account Number)

Global Clearing Management System provides PDS 0001 in any First Presentment/1240,
Retrieval Request/1644, Fee Collection (Retrieval Fee Billing)/1740, First Chargeback/1442,
Second Presentment/1240, or Arbitration Chargeback/1442 message in which it maps
between a contactless account number and a PAN.
This element indicates to the receiver of the message that Global Clearing Management System
performed the PAN Mapping Service for the transaction, and therefore, the sender of the
message has processed the transaction using a different value in DE 2. PDS 0001 is for

PDS 0001, subfield 1 (Account Number Type)
information only. The receiver of the message is not required to recognize PDS 0001 and must
not retain and return PDS 0001 in future life cycle messages, although customers may choose
to store and use it within their internal systems to help resolve processing questions that may
occur.
PDS 0001 contains the following two subfields.
Number Name Description

1 Account Number Type This subfield indicates whether subfield 2 contains
a contactless account number or a PAN. It also
indicates the participation option and whether
Global Clearing Management System performed
the PAN Mapping Service using authorization logs
or another source.
2 Account Number In messages received by issuers, this subfield

contains the contactless account number and DE 2
(Primary Account Number [PAN]) contains the
PAN.
In messages received by acquirers, this subfield
contains the PAN and DE 2 contains the
contactless account number.

Technical details about PDS 0001 (Mastercard Mapping Service Account Number), subfield 1
(Account Number Type).
Position 1 of this subfield contains
• a value of 1-6, or the value 8 or 9 if the number in subfield 2 is a virtual account number, and
• the value T if the account number in subfield 2 is a real card number.
Position 2 of this subfield contains the value space if Global Clearing Management System
performed the mapping service according to the authorization logs. It contains a C if Global
Clearing Management System performed the mapping service according to a source other than
the authorization logs (This position will contain a C in all retrieval and chargeback messages).
Values for this subfield are listed in the following table.
Value Description
TC Subfield 2 contains a PAN. Mapping was based on a source other than the authorization
logs.
1 Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Every transaction containing this
account range is to be mapped. Mapping was based on the authorization logs.

Value Description
1C Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Every transaction containing this
account range is to be mapped. Mapping was based on a source other than the
authorization logs.
2 Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Not all transactions in this issuer
account range are mapped, because the issuer is phasing in the PAN Mapping Service.
Mapping was based on the authorization logs.
2C Subfield 2 contains a contactless account number owned by an issuer, and the issuer is
actively participating in the PAN Mapping Service. Not all transactions in this issuer
account range are mapped, because the issuer is phasing in the PAN Mapping Service.
Mapping was based on a source other than the authorization logs.
3 Subfield 2 contains a contactless account number provided by Mastercard and is

assigned to an issuer that is actively participating in the PAN Mapping Service. Mapping
was based on the authorizations logs.
3C Subfield 2 contains a contactless account number provided by Mastercard and is
assigned to an issuer that is actively participating in the PAN Mapping Service. Mapping
was based on a source other than the authorization logs.
assigned to an issuer that is passively participating in the PAN Mapping Service by
permitting its cardholders to request a contactless card or device via that Web site.
Mapping was based on the authorization logs.
assigned to an issuer that is passively participating in the contactless Mapping Service by
permitting its cardholders to request a contactless card or device via the Web site.
Mapping was based on a source other than the authorization logs.
assigned to a merchant that sponsors the contactless card or device. The issuer is
passively participating in the PAN Mapping Service. Mapping was based on the
authorization logs.
assigned to a merchant that sponsors the contactless card or device. The issuer is
passively participating in the PAN Mapping Service. Mapping was based on a source
other than the authorization logs.
6 Subfield 2 contains a contactless account number provided by Mastercard, and
Mastercard sponsors the contactless card or device. The issuer is passively participating
in the PAN Mapping Service. Mapping was based on the authorization logs.
6C Subfield 2 contains a contactless account number provided by Mastercard, and
Mastercard sponsors the PAN card or device The issuer is passively participating in the
contactless Mapping Service. Mapping was based on a source other than the
authorization logs.

PDS 0001, subfield 2 (Account Number)

PDS 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number)
technical details are listed here.
Subfield 2 contains a virtual or real account number or a PAN. When issuers receive PDS 0001,
the subfield 2 always contains a virtual account number.
This subfield is 6-19 digits in length.
Contents of DE 22 (Point of Service Data Code), Subfield 7 (Card Data Input Mode)
Currently, issuers only receive values A or M when sent by the acquirer.
For the mapping of contactless M/Chip and Contact M/Chip transactions in the PAN Mapping
Service, Mastercard will pass through the values (C and M) as provided by the acquirer.
The issuer must send the same values (either the C or M value), which are the original values
sent by the acquirer, in any subsequent First Chargeback/1442 or Arbitration Chargeback/1442
messages.
Processing transactions through the Mastercard contactless Mapping Service

Transactions involving Mastercard contactless account numbers must be sent to the Mastercard
Network for authorization and to Global Clearing Management System for clearing, because
these are the only systems that have access to the Mastercard PAN Mapping Service database
needed to map between Mastercard contactless account numbers and PANs.
1. The Mastercard Network maps a Mastercard contactless account number to a PAN before
sending the authorization message to the issuer, and it maps the PAN back to the
Mastercard contactless account number before sending the authorization response to the
acquirer. In both the authorization and authorization response messages, the Mastercard
Network provides data fields indicating that the Mastercard Authorization System
performed the Mastercard PAN Mapping Service.
2. The acquirer receives an authorization response message containing the Mastercard
contactless account number in DE 2 (Primary Account Number [PAN]), and the PAN in DE
48 (Additional Data: Private Use), subelement 33 (contactless Mapping Information). The
acquirer is not required to recognize or store the PAN.
3. The acquirer populates DE 2 in the IPM First Presentment/1240 message with the
Mastercard contactless account number captured by the Mastercard contactless terminal.
4. Global Clearing Management System performs the Mastercard PAN Mapping Service for
the First Presentment/1240 and any subsequent life cycle transactions. All clearing
messages received by the issuer contain the PAN in DE 2, the Mastercard contactless
account number in PDS 0001 (Mastercard Mapping Service Account Number), and a value
of A or M in DE 22 (Point of Service Data Code), subfield 7 (Card Data Input Mode). All
clearing messages received by the acquirer contain the Mastercard contactless account
number in DE 2, the PAN in PDS 0001, and the acquirer’s originally submitted value in DE
22, subfield 7.

DE 22 values identify contactless transactions to Global Clearing Management System
DE 22 values identify contactless transactions to Global Clearing Management System

These are the requirements to perform the Mastercard contactless Mapping Service for various
messages.
To perform the PAN Mapping Service for First Presentment/1240 messages, Global Clearing
Management System requires that the First Presentment/1240 contain DE 22 (Point of Service
Data Code), subfield 7 (Card Data Input Mode) with a value of A or M to indicate PAN entry
through a contactless mode. The acquirer must provide one of these values in a First
Presentment/1240 message when DE 2 contains a contactless account number.
To perform the PAN Mapping Service for First Chargeback/1442 and Arbitration Chargeback/
1442 messages, Global Clearing Management System requires that the chargeback message
contain DE 22, subfield 7 with a value of A or M, which are the original values sent by the
acquirer, to indicate that Global Clearing Management System performed the PAN Mapping
Service for the first presentment. The issuer receives this value in the First Presentment/1240
message and must provide it in any subsequent chargeback message to identify to Global
Clearing Management System when to map a PAN back to a contactless account number.
Therefore, issuers that participate in PAN mapping must be able to receive and provide DE 22,
subfield 7, value A (PAN auto-entry through contactless magnetic stripe) or M (PAN auto-entry
through contactless M/Chip), which are the original values sent by the acquirer, in IPM clearing
messages, even if they do not issue contactless cards.
Processing First Presentment/1240 messages through the Mastercard contactless Mapping

Service
When processing a First Presentment/1240, Global Clearing Management System validates the
contents of DE 2 (Primary Account Number [PAN]) against IPM MPE table IP0040T1.
If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a service-
eligible Mastercard contactless account number (indicated by a value of 1 to 6 in the Mapping
Service Indicator field. Global Clearing Management System checks DE 22 (Point of Service
Data Code), subfield 7 (Card Data: Input Mode) to ensure that it is present and that it contains
a value of A or M to indicate PAN entry through a contactless mode. If DE 22, subfield 7
contains A or M, Global Clearing Management System continues processing. If DE 22, subfield 7
does not contain A or M, Global Clearing Management System rejects the transaction because
this would be a fraudulent use of the Mastercard contactless account number.
1. Global Clearing Management System first attempts to match to the Mastercard PAN
Mapping Service authorization log according to the combination of Mastercard contactless
account number and Banknet Reference Number and Date. The Mastercard contactless
account number is in DE 2. The Banknet Reference Number and Date are present in DE 63
(Transaction Life Cycle ID), subfield 2 (Trace ID) in the IPM First Presentment/1240.
2. If Global Clearing Management System does not find a match in the Mastercard PAN
Mapping Service authorization log, or if DE 63 is not present in the First Presentment/1240,
Global Clearing Management System attempts to match to the Mastercard PAN Mapping
Service database using the Mastercard contactless account number in DE 2.
3. If Global Clearing Management System cannot match the First Presentment/1240
message to either the Mastercard PAN Mapping Service authorization log or the Mastercard

Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/1442
messages through the Mastercard contactless Mapping Service
PAN Mapping Service database, Global Clearing Management System rejects the
transaction.
After successfully mapping the Mastercard contactless account number to a PAN, Global
Clearing Management System uses the PAN in its processing. For example, it uses business
services in which the issuer of the PAN participates, and it delivers the transaction to the
endpoint associated with the issuer of the PAN, as opposed to the Mastercard contactless
account number. If the transaction contains no errors, Global Clearing Management System
modifies the data as follows before sending the First Presentment/1240 to the issuer by
• moving the Mastercard contactless account number from DE 2 to PDS 0001 (Mastercard
Mapping Service Account Number), subfield 2 (Account Number)
• populating DE 2 with the PAN, and
• passing through the value received from the acquirer in DE 22, subfield 7.
Global Clearing Management System also logs the mapped transaction to a Mastercard PAN
Mapping Service First Presentment history file. Any acknowledgment reconciliation messages or
reporting created for the acquirer is based on the Mastercard contactless account number. Any
notification reconciliation messages or reporting created for the issuer is based on the PAN.
If the transaction is rejected for any existing Global Clearing Management System error, Global
Clearing Management System sends the rejected transaction back to the acquirer with the
acquirer's originally submitted values in DE 2.
For chargebacks and retrieval requests, issuers will be allowed to use
• value A (for Contactless Magnetic Stripe transactions)
• value M (for Contactless M/Chip transactions)
• value R (for Digital Secure Remote Payment containing EMV data transactions)
• value S (for Digital Secure Remote Payment containing UCAF data transactions or Card on
File, Electronic Commerce tokenization), or
• value T (for Card on File tokenization).
'
Processing Retrieval Request/1644, First Chargeback/1442, and Arbitration Chargeback/

1442 messages through the Mastercard contactless Mapping Service
The issuer populates DE 2 (Primary Account Number [PAN]) with the PAN in all retrieval and
chargeback messages.
In addition, for First Chargeback/1442 and Arbitration Chargeback/1442 messages, the issuer
must also populate DE 22 (Point of Service Data Code), subfield 7 (Card Data: Input Mode)
with A or M. This value is needed to indicate that Global Clearing Management System must
map the PAN in DE 2 to a Mastercard contactless account number.
For First Chargeback/1442 and Arbitration Chargeback/1442 messages, Global Clearing
Management System attempts to match the PAN in DE 2 to the Mastercard PAN Mapping
Service First Presentment history file if DE 22, subfield 7 is present and contains a value of A or
M.

messages through the Mastercard contactless Mapping Service
Global Clearing Management System attempts to match to the history file using the following
fields.
Matching criteria for retrieval requests and chargebacks
Global Clearing Management System attempts To this combination of fields in the Mastercard
to match this combination of fields in the PAN Mapping Service First Presentment history
retrieval request or chargeback message… file
DE 2 (Primary Account Number) PAN
DE 31 (Acquirer Reference Data) DE 31
DE 30 (Amounts, Original) subfield 1 (Original DE 4 (Amount, Transaction)

Amount, Transaction)
PDS 0149 (Currency Codes, Amounts, Original), DE 49 (Currency Code, Transaction)

subfield 1 (Currency Code, Original Transaction
Amount)
DE 12 (Date and Time, Local Transaction), subfield DE 12, subfield 1

1 (Date)
If the chargeback message does not contain DE 22, subfield 7 with a value of A, C or M, Global
Clearing Management System assumes that it did not perform the Mastercard PAN Mapping
Service at the time of the First Presentment/1240. Global Clearing Management System
continues processing the Retrieval Request/1644, First Chargeback/1442, or Arbitration
Chargeback/1442 as it normally does and delivers the message to the acquirer with the PAN in
DE 2 and the issuer’s submitted values in DE 22. If, upon receipt, the acquirer does not recognize
the transaction because the First Presentment/1240 had actually been submitted with a
Mastercard contactless account number, the acquirer must follow existing dispute resolution
rules and procedures that apply when the PAN is not recognized.
If Global Clearing Management System does successfully match the message to the Mastercard
PAN Mapping Service First Presentment history file, and the message is a First Chargeback/
1442, Global Clearing Management System validates that the chargeback amount is greater
than the regional limit for reason code 4837.
If the mapped retrieval or chargeback transaction contains no errors, Global Clearing
Management System modifies the data before sending the message to the acquirer by
• moving the PAN from DE 2 to PDS 0001, subfield 2
• populating DE 2 with the contactless account number

Processing Second Presentment/1240 messages through the Mastercard contactless Mapping
Service
• populating DE 94 (Transaction Originator Institution ID Code) and DE 33 (Forwarding

Institution ID Code) with customer ID information related to the contactless account
number, and
• moving the value originally submitted by the acquirer in the First Presentment/1240
message to DE 22, subfield 7 if the issuer provided the other DE 22 subfields in the retrieval
or chargeback.
When Global Clearing Management System logs the Retrieval Request/1644, First Chargeback/
1442, or Arbitration Chargeback/1442 message to its existing retrieval or chargeback history
files, it logs both the PAN and the Mastercard contactless account number. Any
acknowledgment reconciliation messages or reports created for the issuer are based on the
PAN. Any notification reconciliation messages or reports created for the acquirer are based on
the Mastercard contactless account number.
Processing Second Presentment/1240 messages through the Mastercard contactless

Mapping Service
Details about the processing of Second Presentment/1240 messages through the Mastercard
contactless Mapping Service are described here.
The acquirer populates DE 2 (Primary Account Number [PAN]) with the Mastercard contactless
account number in the Second Presentment/1240. Global Clearing Management System
attempts to match all Second Presentment/1240 messages to the existing chargeback history
file as usual. If Global Clearing Management System is unable to match the message to the
chargeback history file, it rejects the Second Presentment/1240.
If Global Clearing Management System successfully matches the Second Presentment/1240 to
the chargeback history file, and the chargeback history file indicates that DE 2 contains a
Mastercard contactless account number, Global Clearing Management System maps it to the
PAN and uses the PAN in its processing. For example, it uses business services in which the issuer
of the (PAN) participates, and it delivers the transaction to the endpoint associated with the
issuer of the PAN as opposed to the Mastercard contactless account number. If the transaction
contains no errors, Global Clearing Management System modifies the data before sending the
Second Presentment/1240 to the issuer by
• moving the Mastercard contactless account number from DE 2 to PDS 0001 (Mastercard
Mapping Service Account Number), subfield 2 (Account Number), and
• populating DE 2 with the PAN.
Any acknowledgment reconciliation messages or reports created for the acquirer are based on
the Mastercard contactless account number. Any notification reconciliation messages or reports
created for the issuer are based on the PAN.
Processing Fee Collection (Retrieval Fee Billing)/1740 messages through the Mastercard
contactless Mapping Service
A Fee Collection (Retrieval Fee Billing)/1740 message is used only when an issuer has requested
a hardcopy retrieval document, the acquirer fulfills the request through Mastercom, and the
acquirer seeks to collect the delivery fee from the issuer as reimbursement for costs associated
with delivering the hardcopy document to the issuer.

Summary of the contents of elements related to the Mastercard contactless Mapping Service
The acquirer populates DE 2 (Primary Account Number [PAN]) with the service-eligible
Mastercard contactless account number in the Fee Collection (Retrieval Fee Billing)/1740.
Global Clearing Management System validates the contents of DE 2 against IPM MPE table
IP0040T1, as usual. If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2
contains a service-eligible Mastercard contactless account number, Global Clearing
Management System maps the Mastercard contactless account number in DE 2 to the PAN
using the Mastercard PAN Mapping Service First Presentment history file.
If Global Clearing Management System cannot match the Fee Collection (Retrieval Fee Billing)/
1740 message to the Mastercard PAN Mapping Service First Presentment history file, Global
Clearing Management System rejects the transaction.
After successfully mapping the Mastercard contactless account number to a PAN, Global
Clearing Management System uses the PAN in its processing. For example, it uses business
services in which the issuer of the PAN participates, and it delivers the transaction to the
endpoint associated with the issuer of the PAN, as opposed to the Mastercard contactless
account number. If the transaction contains no errors, Global Clearing Management System
modifies the data before sending the message to the issuer by
• moving the Mastercard contactless account number from DE 2 to private data subelement
(PDS) 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number),
and
the Mastercard contactless account number. Any notification reconciliation messages or reports
created for the issuer are based on the PAN.
Summary of the contents of elements related to the Mastercard contactless Mapping

Service
This table summarizes the contents of the elements that are affected when Global Clearing
Management System performs the Mastercard contactless Mapping Service.
Clearing PDS 0001,

Message Scenario DE 2 Subfield 2 DE 22, subfield 7 DE 94 and DE 33
First From acquirer to contactless Not present A or M As provided by
Presentment/ Mastercard account acquirer
1240 number
Retrieval From issuer to PAN Not present As provided by As provided by

Request/1644 Mastercard issuer issuer
From Mastercard contactless PAN A or M, if issuer Customer IDs

to acquirer account provided other DE associated with the
number 22 values in the contactless account
retrieval number

Interchange compliance processing
Clearing PDS 0001,

Message Scenario DE 2 Subfield 2 DE 22, subfield 7 DE 94 and DE 33
Fee Collection From acquirer to contactless Not present DE 22 not in As provided by
(Retrieval Fee Mastercard account message layout acquirer
Billing)/1740 number
From Mastercard PAN contactless DE 22 not in As provided by

to issuer account message layout acquirer
number
First From Mastercard contactless PAN A, C, or M, if issuer Customer IDs

Chargeback/ to acquirer account provided other associated with the
1442 number DE 22 values in the contactless account
chargeback number
Second From acquirer to contactless Not present A or M As provided by

Presentment/ Mastercard account acquirer
1240 number
From Mastercard PAN contactless A or M As provided by

to issuer account acquirer
number
Arbitration From issuer to PAN Not present A or M As provided by

Chargeback/ Mastercard issuer
1442
From Mastercard contactless PAN A, C, or M, if issuer Customer IDs
to acquirer account provided other DE associated with the
number 22 values in the contactless account
chargeback number

Mastercard performs the Mastercard contactless Mapping Service for First Presentment/1240
messages, which are analyzed during the interchange compliance process.
As described in the Authorization Manual, transactions for which the Mastercard Authorization
System performs the Mastercard PAN Mapping Service do not contain magnetic stripe data
when they are sent to the issuer and logged by the Mastercard Network. Therefore, U.S.-
acquired First Presentment/1240 messages for which Mastercard performs the Mastercard
PAN Mapping Service may not pass the magnetic stripe quality test within the interchange
compliance process. This test requires validation of the magnetic stripe presence at the time of
the authorization for specific incentive interchange programs, unless the transaction is exempt.
Mastercard modified the interchange compliance magnetic stripe quality test to exempt
transactions in which PDS 0001 is present in the IPM First Presentment/1240 message. The
presence of PDS 0001 indicates that Mastercard performed the Mastercard PAN Mapping
Service; and therefore, magnetic stripe data is not expected to be present in the authorization
message.

Mastercom processing
All customers have been assigned a Mastercom endpoint to help with the routing of retrieval
and chargeback documentation through the Mastercom system.
The Mastercom system is PC-based and electronically transmits a copy of the requested TID
through the Mastercom server. The result is a clear copy that the issuer and the cardholder can
read, and proof for the acquirer that it fulfilled the request. Once again, Mastercard strongly
recommends that customers use the Mastercom system to ensure timely delivery of items and
to retain subsequent chargeback and presentment rights.

Mastercard Digital Enablement Service
Chapter 6 Mastercard Digital Enablement Service

This chapter describes the Mastercard Digital Enablement Service (MDES) as it pertains to the clearing
process.
Overview of Mastercard Digitial Enablement Service................................................................................. 138

Mastercard Digital Enablement Service process flow................................................................................. 138
Enablement Service........................................................................................................................................... 142
Identifying Mastercard Digital Enablement Service mapping within IPM messages.............................142
Contents of PDS 0001 (Mastercard Mapping Service Account Number).......................................... 142
PDS 0001, subfield 1 (Account Number Type)...................................................................................143
PDS 0001, subfield 2 (Account Number)............................................................................................ 144
Processing First Presentment/1240 Messages through the Mastercard Digital Enablement
Service Mapping Service....................................................................................................................................144
messages through the Mastercard Digital Enablement Service................................................................145
Processing Second Presentment/1240 Messages through the Mastercard Digital Enablement
Service.................................................................................................................................................................. 146
Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement Service......147
Summary of the contents of elements related to the Mastercard Digital Enablement Service......... 148
Interchange compliance processing.................................................................................................................149
Mastercom processing.......................................................................................................................................149

Overview of Mastercard Digitial Enablement Service
Overview of Mastercard Digitial Enablement Service

MDES is a secure, globally-scalable digitization platform for the management, generation, and
provisioning of digital payment credentials onto mobile devices, PCs, servers, and other form
factors. MDES provides simpler, more secure digital payment experiences.
MDES was developed to facilitate the financial industry transition from consumer account
credentials stored on payment cards to digital credentials provisioned into mobile devices. These
digitized credentials enable consumers to perform payments via existing contactless point-of-
sale (POS) and other POS systems and via new remote payment methods, such as in-app
payments.
MDES technology has been enhanced to allow the digitization of cardholder credentials stored
on servers, facilitating more secure browser-based electronic commerce (e-commerce) and in-
app transactions.
Mastercard Digital Enablement Service process flow

Mastercard maintains a PAN mapping database that maps tokens to PANs.This database is
used by both the Authorization and Clearing Platforms, so that the acquirer can always process
using the token and the issuer can always process using the PAN.
The following explains the dual message system process flow when a transaction is generated
using a token.
1. The cardholder initiates a transaction with a token by
– tapping a device to a contactless reader at a point-of-sale (POS) terminal
– initiating a Digital Secure Remote Payment (DSRP) with a mobile wallet or web-based
payment application that uses MDES
– using a device provisioned with a token that is able to leverage the magnetic stripe
reader at a POS terminal (for dynamic magnetic stripe data transactions).
– initiating an e-commerce transaction with a payment application on a web site hosted by
a Digital Activity Customer (DAC), such as a wallet provider or token requestor, that uses
MDES static tokens that do not have dynamic payment credentials; or
– initiating a credential-on-file transaction.
For contactless or dynamic magnetic stripe data, the token and associated chip or dynamic
magnetic stripe data are transmitted to the terminal, and subsequently, the merchant and
the acquirer. For DSRP, the token and associated chip data are transmitted to the merchant
or merchant payment gateway, which forwards the data to the acquirer. For static tokens,
the DAC, when the DAC is not a merchant, provides the cardholder's token to the merchant
or the merchant payment gateway. The merchant or merchant payment gateway forwards
the data to the acquirer.
2. The acquirer initiates an authorization request containing the token and chip or dynamic
magnetic stripe data and sends it to the Mastercard Network. The acquirer will provide DE
22 (POS Entry Mode), subfield 1 (POS Terminal PAN Entry Mode) with value

– 07 (PAN auto-entry via contactless M/Chip)

– 09 (PAN/Token entry via electronic commerce containing DSRP cryptogram in DE 55
[Integrated Circuit Card System-Related Data])
– 10 (Credential on File)
– 81 (PAN/Token entry via electronic commerce with optional AAV or DSRP cryptogram in
UCAF)
– 90 (PAN auto-entry via magnetic stripe): The full track data has been read from the data
encoded on the card and transmitted within the authorization request in DE 35 (Track 2
Data) or DE 45 (Track 1 Data) without alteration or truncation; or
– 91 (PAN auto-entry via contactless magnetic stripe): The full track data has been
transmitted by the acquirer within the authorization request in DE 35 or DE 45 and
forwarded to the issuer without alteration or truncation.
For electronic commerce (e-commerce) transactions using static tokens, the acquirer will
initiate an authorization request containing the token and DE 22, subfield 1 with value
– 81 or
– 82 (PAN auto-entry via server [issuer, acquirer, or third party vendor system]).
NOTE: For static tokens, cryptography data will not be present in transactions.
3. For secure element and Mastercard Cloud-Based Payment tokens, the Authorization
Platform performs either chip or dynamic CVC 3 data pre-validation, and maps the token to
the primary account number. For static tokens, the Authorization Platform maps the token
to the PAN.
4. If the cryptography validation and PAN mapping are successful, the Authorization Platform
then sends the issuer the authorization request.
5. The issuer responds with an authorization response message, and the Authorization
Platform maps the PAN back to the token and provides the response to the acquirer.
6. The acquirer forwards the token and other authorization response information to the
contactless terminal or merchant payment gateway.
7. The Authorization Platform logs all authorizations for which it performed MDES services
and makes this information available to the Clearing Platform.
8. The acquirer sends the first presentment message to the Clearing Platform containing the
token in DE 2 (Primary Account Number). The acquirer provides DE 22, subfield 7 (Card
Data: Input Mode) with value
– A (PAN auto-entry via contactless magnetic stripe)
– B (Magnetic stripe reader inout; track data captured and passed unaltered)
– M (PAN auto-entry via contactless M/Chip)
– R (PAN entry via electronic commerce, including remote chip), or
– S (Electronic commerce).
For static tokens, the acquirer provides DE 22, subfield 7 with value
– 7 (Credential on file)
– S (Electronic commerce), or
– T (PAN auto-entry via server [issuer, acquirer, or third party vendor system]).

9. The Clearing Platform maps the token to the PAN using either the authorization logs or the
PAN mapping database and sends the first presentment to the issuer containing
– DE 2 with the cardholder's PAN
– DE 14 (Data, Expiration)
– If provided on a presentment from the acquirer, DE 14 will not be present in the
presentment message to the issuer when MDES has been applied.
– DE 22, subfield 7 with the value provided by the acquirer.
– The Clearing Platform no longer converts values, but passes through these values.
– PDS 0001 (Mastercard Mapping Service Account Number), subfield 1 (Account Number
Type) with one of the following values:
– C (C followed by a space), indicating that subfield 2 (Account Number) contains the
MDES secure element device token used at the point of sale. The account range is
owned by an issuer. Mapping was based on the authorization log.
– CC (value CC), indicating that subfield 2 contains the MDES secure element device
token used at the point of sale. The account range is owned by an issuer. Mapping was
based on a source other than the authorization log.
– H (value H followed by a space), indicating that subfield 2 contains the MDES Cloud-
Based Payments token device account number used at the point of sale. The account
range is owned by an issuer. Mapping was based on the authorization log.
– HC (value HC), indicating that subfield 2 contains the MDES Cloud-Based Payments
token device account number used at the point of sale. The account range is owned by
an issuer. Mapping was based on a source other than the authorization log.
PDS 0001, subfield 2 (Account Number) contains the token. For static tokens, PDS 0001,
subfield 1 will be the following:
– O (O followed by a space), indicating that subfield 2 contains the MDES Card on File
token submitted by the acquirer. The account range is owned by Mastercard. Mapping
was based on the authorization log.
– OC, indicating that subfield 2 conatins the MDES Card on File token submitted by the
acquirer. The account range is owned by Mastercard. Mapping was based on a source
other than the authorization log.
PDS 0001, subfield 2 contains the token.
– PDS 0058 (Token Assurance Level) (if applicable)
– PDS 0059 (Token Requestor ID), and
– PDS 0207 (Wallet Identifier) (if applicable).
On a first presentment, if there is no match on the authorization logs or PAN mapping
database for the token, the Clearing Platform will reject the first presentment with existing
error number 2358 (DE2 PRIMARY ACCOUNT NUMBER [PAN] INVALID. THE PAN MAPPING
SERVICE CANNOT MAP DE2 TO ANOTHER ACCOUNT NUMBER).
10. Issuers send subsequent retrieval and chargeback messages containing the cardholder's
PAN in DE 2. For all Retrieval Request/1644 messages, the Clearing Platform attempts to
match the PAN in DE 2 to the MDES First Presentment history file. For First Chargeback/
1442 and Arbitration Chargeback/1442 messages, the Clearing Platform attempts to

match the PAN in DE 2 to the MDES First Presentment history file. If a match is found, the
Clearing Platform will map the cardholder's PAN to the token before sending the message
to the acquirer. Acquirers will receive retrieval requests or chargeback messages that have
had MDES performed with
– DE 2 with the token
– DE 22, subfield 7 with the original value provided by the acquirer in the first presentment
– PDS 0001, subfield 1, value TC (Subfield 2 contains a PAN. Mapping was based on a
source other than the authorization logs.); PDS 0001, subfield 2 containing the
cardholder's PAN
– PDS 0058 (Token Assurance Level) (if applicable)
– PDS 0059 (Token Requestor ID), and
– PDS 0207 (Wallet Identifier) (if applicable).
If DE 2 in the Retrieval Request/1644 message or First Chargeback/1442 message cannot
be matched to a First Presentment/1240 message in the MDES First Presentment History
File, the Clearing Platform assumes that it did not perform MDES at the time of the First
Presentment/1240 message. The Clearing Platform continues processing the Retrieval
Request/1644 message, First Chargeback/1442 message, or Arbitration Chargeback/1442
message and delivers the message to the acquirer with the PAN in DE 2. If, upon receipt, the
acquirer does not recognize the transaction because the First Presentment/1240 message
had actually been submitted with an MDES token, the acquirer must follow existing dispute
resolution rules and procedures that apply when the PAN is not recognized.
11. Within second presentments, the acquirer provides the token in DE 2. The Clearing Platform
attempts to match all Second Presentment/1240 messages to the existing chargeback
history file. If the Clearing Platform is unable to match the message to the chargeback
history file, it rejects the Second Presentment/1240 message. If the Clearing Platform
successfully matches the Second Presentment/1240 message to the chargeback history
file, and the chargeback history file indicates that DE 2 contains an MDES token, the
Clearing Platform maps it to the PAN and uses the PAN in its processing. The Clearing
Platform sends the Second Presentment/1240 message to the issuer containing
– DE 2 with the cardholder's PAN
– DE 22, subfield 7 with the value provided by the acquirer, and
– PDS 0001, subfield 1 with value
– C (followed by a space)
– CC
– H (H followed by a space)
– HC
– O (O followed by a space)
– OC
– PDS 0058 (if applicable)
– PDS 0059, or
– PDS 0207 (if applicable).

Enablement Service
Suspended or deactivated tokens

When a token has been suspended or deactivated from use, Mastercard will permit these
transactions to pass through to the issuer for clearing. If the cardholder disputes the
transaction, the issuer can chargeback under message reason code 4808 (Requested/Required
Authorization Not Obtained). This processing is consistent with that applied for non-token
transactions. Mastercard will not block the transaction in clearing but rather allow the dispute
resolution process to occur. For transactions including a token, Mastercard will not enforce error
number 2358 (DE2 PRIMARY ACCOUNT NUMBER [PAN] INVALID. THE PAN MAPING SERVICE
CANNOT MAP DE2 TO ANOTHER ACCOUNT NUMBER) and will allow the deactivated or
suspended tokens to pass through to the issuer for clearing.
Using the MPE to identify issuer account ranges participating in the

The IPM MPE table IP0040T1: Issuer Account Range contains the Mapping Service Indicator
field. This field identifies issuer account ranges that require MDES with value C (Mastercard
Digital Enablement Service Account Range).
Mastercard adds the applicable MDES token account ranges to the IPM MPE before generating
tokens for use in smart devices. The IPM MPE file contains valid Global Clearing Management
System Product IDs, country codes, and other fields necessary for processing for these account
ranges. They are assigned to participate in all the default interregional, intraregional, and
intracountry business services that are relevant to their assigned country codes.
NOTE: If an issuer account range contains a value of C in the Mapping Service Indicator field in the IPM
MPE, acquirers must send ALL transactions involving this issuer account range to Mastercard for
authorization and clearing because only the Mastercard systems contain the data needed to map an
MDES token to a PAN. Transactions processed in an On-Us or intraprocessor mode will not have access
to this mapping data.
Identifying Mastercard Digital Enablement Service mapping within

IPM messages
This section identifies MDES mapping within IPM messages.
Contents of PDS 0001 (Mastercard Mapping Service Account Number)

The Clearing Platform provides PDS 0001 (Mastercard Mapping Service Account Number) in
any First Presentment/1240, Retrieval Request/1644, Retrieval Request Acknowledgement/
1644, Fee Collection (Retrieval Fee Billing, Handling Fees, and Other than Retrieval Fee Billing/
Handling Fees)/1740, First Chargeback/1442, Second Presentment/1240, or Arbitration
Chargeback/1442 message in which it maps between an MDES token and a PAN.
This element indicates to the receiver of the message that the Clearing Platform performed the
MDES PAN mapping service for the transaction, and therefore, the sender of the message has

processed the transaction using a different value in DE 2 (Primary Account Number [PAN]). PDS
0001 is for information only. The receiver of the message must not retain and return PDS 0001
in future life cycle messages, although customers may choose to store and use it within their
internal systems to help resolve processing questions that may occur.
PDS 0001 contains the following two subfields.
Number Name Description

1 Account Number Type This subfield indicates whether subfield 2 contains an
MDES token or a PAN. It also indicates whether the
Clearing Platform performed MDES PAN mapping using
authorization logs or another source.
2 Account Number In messages received by issuers, this subfield contains the
MDES token and DE 2 contains the PAN.
In messages received by acquirers, this subfield contains the
PAN and DE 2 contains the MDES token.

Technical details about PDS 0001 (Mastercard Mapping Service Account Number), subfield 1
(Account Number Type).
Position 1 of this subfield contains
• value C if the number in subfield 2 is an MDES secure element token
• value H if the number is in subfield 2 is an MDES Cloud-Based Payments token
• value O if the number in subfield 2 is a static token, or
• value T if the account number in subfield 2 is a PAN.
Position 2 of this subfield contains a space if the Clearing Platform performed the mapping
service according to the authorization logs. It contains a C if the Clearing Platform performed
the mapping service according to a source other than the authorization logs (This position will
contain a C in all retrieval and chargeback messages).
Values for this subfield are listed in the following table.
Value Description
C Space Subfield 2 contains the MDES token used at the point of sale. The account range is
CC Subfield 2 contains the MDES token used at the point of sale. The account range is
owned by an issuer. Mapping was based on a source other than the authorization log.
H Space Subfield 2 contains the MDES token used at the point of sale. The account range is

Value Description
TC Subfield 2 contains a PAN. Mapping was based on a source other than the authorization
logs.
O Subfield 2 contains the MDES Card on File token submitted by the acquirer. The account
range is owned by Mastercard. Mapping was based on the authorization log..
OC Subfield 2 contains the MDES Card on File token submitted by the acquirer. The account
range is owned by Mastercard. Mapping was based on a source other than the
authorization log.

PDS 0001 (Mastercard Mapping Service Account Number), subfield 2 (Account Number)
technical details are listed here.
Subfield 2 contains a token or a PAN. When issuers receive PDS 0001, subfield 2 always
contains a token. When acquirers receive PDS 0001, subfield 2 always contains a PAN.
This subfield is 6-19 digits in length.
Processing First Presentment/1240 Messages through the

Mastercard Digital Enablement Service Mapping Service
When processing a First Presentment/1240, the Clearing Platform validates the contents of DE
2 (Primary Account Number [PAN]) against IPM MPE table IP0040T1, as usual.
If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a service-
eligible MDES token (indicated by a value of C in the Mapping Service Indicator field):
1. The Clearing Platform first attempts to match to the MDES authorization log according to
the combination of MDES token and Banknet Reference Number and Date. The MDES
token is in DE 2. The Banknet Reference Number and Date are present in DE 63 (Transaction
Life Cycle ID), subfield 2 (Trace ID) in the IPM First Presentment/1240.
2. If the Clearing Platform does not find a match in the MDES authorization log, or if DE 63 is
not present in the First Presentment/1240, the Clearing Platform attempts to match to the
PAN Mapping database using the MDES token in DE 2.
3. If the Clearing Platform cannot match the First Presentment/1240 message to either the
MDES authorization log or the PAN mapping database, the Clearing Platform rejects the
transaction.
4. The Clearing Platform will validate and when incorrect, reject the First Presentment/1240
message containing PDS 0052 (Electronic Commerce Security Level Indicator), subfield 1
(Security Protocol), subfield 2 (Cardholder Authentication), and subfield 3 (UCAF Collection
Indicator) values if they do not match the correct security level indicator (SLI) value in DE 48
(), subelement 42 (), subfield 1 () from the Authorization Request Response/110 message.

messages through the Mastercard Digital Enablement Service
After successfully mapping the MDES token to the PAN, the Clearing Platform uses the PAN in
its processing. For example, it uses business services in which the issuer of the PAN participates,
and it delivers the transaction to the endpoint associated with the issuer of the PAN, as
opposed to the MDES token. If the transaction contains no errors, the Clearing Platform
modifies the data before sending the First Presentment/1240 to the issuer by
• moving the MDES token from DE 2 to PDS 0001 (Mastercard Mapping Service Account
Number), subfield 2 (Account Number)
• populating DE 2 with the PAN, and
• passing through the value received from the acquirer in DE 22 (POS Entry Mode), subfield 7
(Card Data: Input Mode).
The Clearing Platform also logs the mapped transaction to a MDES First Presentment history
file. Any acknowledgment reconciliation messages or reporting created for the acquirer is based
on the MDES token. Any notification reconciliation messages or reporting created for the issuer
is based on the PAN.
If the transaction is rejected for any existing Clearing Platform error, the Clearing Platform
sends the rejected transaction back to the acquirer with the acquirer's originally submitted
values in DE 2 and DE 22.
Processing Retrieval Request/1644, First Chargeback/1442, and

Arbitration Chargeback/1442 messages through the Mastercard
Digital Enablement Service
For all Retrieval Request/1644 messages, the Clearing Platform attempts to match the PAN in
DE 2 (Primary Account Number [PAN]) to the MDES First Presentment history file.
For First Chargeback/1442 and Arbitration Chargeback/1442 messages, the Clearing Platform
attempts to match the PAN in DE 2 to the MDES First Presentment history file. If a match is
found, the Clearing Platform will map the cardholder’s PAN to the token before sending the
message to the acquirer.
The Clearing Platform attempts to match to the history file using the following fields.
Matching criteria for retrieval requests and chargebacks
The Clearing Platform attempts to match this To this combination of fields in the MDES First
combination of fields in the retrieval request or Presentment history file
chargeback message...
DE 2 (Primary Account Number) PAN
DE 31 (Acquirer Reference Data) DE 31
DE 30 (Amounts, Original) subfield 1 (Original DE 4 (Amount, Transaction)
Amount, Transaction)

Processing Second Presentment/1240 Messages through the Mastercard Digital Enablement
Service
The Clearing Platform attempts to match this To this combination of fields in the MDES First
combination of fields in the retrieval request or Presentment history file
chargeback message...
PDS 0149 (Currency Codes, Amounts, Original), DE 49 (Currency Code, Transaction)
subfield 1 (Currency Code, Original Transaction
Amount)
DE 12 (Date and Time, Local Transaction), subfield DE 12, subfield 1
1 (Date)
If the mapped retrieval or chargeback transaction contains no errors, the Clearing Platform
modifies the data before sending the message to the acquirer by
• moving the PAN from DE 2 to PDS 0001 (Mastercard Mapping Service Account Number),
subfield 2 (Account Number),
• populating DE 2 with the MDES token, and
• populating DE 94 (Transaction Originator Institution ID Code) and DE 33 (Forwarding
Institution ID Code) with customer ID information related to the MDES token.
When the Clearing Platform logs the Retrieval Request/1644, First Chargeback/1442, or
Arbitration Chargeback/1442 message to its existing retrieval or chargeback history files, it logs
both the primary account number and the MDES token. Any acknowledgment reconciliation
messages or reports created for the issuer are based on the PAN. Any notification reconciliation
messages or reports created for the acquirer are based on the MDES token.
If DE 2 in the Retrieval Request/1644 message or First Chargeback/1442 message cannot be
matched to a First Presentment/1240 message in the MDES First Presentment history file, the
Clearing Platform assumes that it did not perform MDES at the time of the Fist Presentment/
1240 message. The Clearing Platform continues processing the Retrieval Request/1644
message, First Chargeback/1442 message, or Arbitration Chargeback/1442 message and
delivers the message to the acquirer with the PAN in DE 2. If, upon receipt, the acquirer does not
recognize the transaction because the First Presentment/1240 message had actually been
submitted with an MDES token, the acquirer must follow existing dispute resolution rules and
procedures that apply when the PAN is not recognized.
Processing Second Presentment/1240 Messages through the

Details about the processing of Second Presentment/1240 messages through MDES are
described here.
The acquirer populates DE 2 (Primary Account Number [PAN]) with the MDES token in the
Second Presentment/1240. The Clearing Platform attempts to match all Second Presentment/
1240 messages to the existing Chargeback history file. If the Clearing Platform is unable to
match the message to the Chargeback history file, it rejects the Second Presentment/1240.

Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement Service
If the Clearing Platform successfully matches the Second Presentment/1240 to the

Chargeback history file, and the Chargeback history file indicates that DE 2 contains an MDES
token, the Clearing Platform maps it to the PAN and uses the PAN in its processing. For
example, it uses business services in which the issuer of the (PAN) participates, and it delivers
the transaction to the endpoint associated with the issuer of the PAN as opposed to the MDES
token. If the transaction contains no errors, the Clearing Platform modifies the data before
sending the Second Presentment/1240 to the issuer by
Number), subfield 2 (Account Number), and
• populating DE 2 with the PAN
the MDES token. Any notification reconciliation messages or reports created for the issuer are
based on the PAN.
Processing Fee Collection/1740 Messages through the Mastercard

Fee Collection/1740 messages initiated with MDES tokens: The acquirer populates DE 2
(Primary Account Number [PAN]) with the service-eligible MDES token in the Fee Collection/
1740.
The Clearing Platform validates the contents of DE 2 against IPM MPE table IP0040T1, as
usual. If the Mapping Service Indicator field in table IP0040T1 indicates that DE 2 contains a
service-eligible MDES token, the Clearing Platform maps the MDES token in DE 2 to the PAN
using the MDES First Presentment history file.
If the Clearing Platform cannot match the Fee Collection/1740 message to the MDES First
Presentment history file, the Clearing Platform rejects the transaction.
After successfully mapping the MDES token to a PAN, the Clearing Platform uses the PAN in its
processing. For example, it uses business services in which the issuer of the PAN participates,
and it delivers the transaction to the endpoint associated with the issuer of the PAN, as
opposed to the MDES token. If the transaction contains no errors, the Clearing Platform
modifies the data before sending the message to the issuer by
Number), subfield 2 (Account Number), and
the MDES token. Any notification reconciliation messages or reports created for the issuer are
based on the PAN.
Fee Collection 1740/messages initiated with the PAN: The issuer populates DE 2 with the PAN
in the Fee Collection/1740 message. The Clearing Platform attempts to match the PAN in DE 2
to the MDES First Presentment history file. If a match found, the Clearing Platform will map

Summary of the contents of elements related to the Mastercard Digital Enablement Service
the cardholder's PAN to the MDES token before sending the message to the acquirer. If the
Clearing Platform cannot match the Fee Collection/1740 message to the First Presentment
history file, the Clearing Platform will continue processing the Fee Collection/1740 message as
a non-PAN mapped transaction. DE 2 in the Fee Collection/1740 message to the acquirer will
contain the PAN.
Summary of the contents of elements related to the Mastercard

This table summarizes the contents of the elements that are affected when the Clearing
Platform performs MDES processing.
Clearing Scenario DE 2 PDS 0001, DE 22, subfield DE 94 and DE

Message Subfield 2 7 33
First From acquirer to Token Not present A, B, M, R, S, or T As provided by
Presentment/ Mastercard acquirer
1240
From PAN Token A, B, M, R, S, or T As provided by
Mastercard to acquirer
issuer
Retrieval From issuer to PAN Not present As provided by As provided by
Request/1644 Mastercard issuer issuer
From Token PAN A, B, M, R, S, or T Customer IDs
Mastercard to if issuer provided associated with
acquirer other DE 22 the token
values in the
retrieval
Fee Collection From acquirer to Token Not present DE 22 not in As provided by
(Retrieval Fee Mastercard message layout acquirer
Billing)/1740
From PAN Token DE 22 not in As provided by
Mastercard to message layout acquirer
issuer
First From issuer to PAN Not present A, B, M, R, S, or T As provided by
1442
Mastercard to associated with
acquirer the token
Second From acquirer to Token Not present A, B, M, R, S, or T As provided by
Presentment/ Mastercard acquirer
1240
From PAN Token A, B, M, R, S, or T As provided by
Mastercard to acquirer
issuer

Clearing Scenario DE 2 PDS 0001, DE 22, subfield DE 94 and DE

Message Subfield 2 7 33
Arbitration From issuer to PAN Not present A, B, M, R, S, or T As provided by
1442
Mastercard to associated with
acquirer the token

MDES is performed for First Presentment/1240 messages, which are analyzed during the
interchange compliance process.
As described in the Authorization Manual, transactions for which the Authorization Platform
performs the MDES do not contain magnetic stripe data when they are sent to the issuer and
logged by the Authorization Platform. Therefore, U.S.-acquired First Presentment/1240
messages for which Mastercard performs the MDES may not pass the magnetic stripe quality
test within the interchange compliance process. This test requires validation of the magnetic
stripe presence at the time of the authorization for specific incentive interchange programs,
unless the transaction is exempt.
Mastercard modified the interchange compliance magnetic stripe quality test to exempt
transactions in which PDS 0001 (Mastercard Mapping Service Account Number) is present in
the IPM First Presentment/1240 message. The presence of PDS 0001 indicates that
Mastercard performed a PAN mapping; and therefore, magnetic stripe data is not expected to
be present in the authorization message.
All customers have been assigned a Mastercom endpoint to help with the routing of retrieval
and chargeback documentation through the Mastercom system.
The Mastercom system is PC-based and electronically transmits a copy of the requested TID
through the Mastercom server. The result is a clear copy that the issuer and the cardholder can
read, and proof for the acquirer that it fulfilled the request. Once again, Mastercard strongly
recommends that customers use the Mastercom system to ensure timely delivery of items and
to retain subsequent chargeback and presentment rights.

Mastercard Transaction Enablement Service
Chapter 7 Mastercard Transaction Enablement Service
Overview of Mastercard Transaction Enablement Service (TES)..............................................................151

Service Requirements for Acquirers...........................................................................................................151
Acquirer Accepted Errors Detail Report (IP714010-AA)........................................................................151
Processing Message Exception/1644-691 messages through the Mastercard Transaction
Enablement Service......................................................................................................................................157
Contents of PDS 0445 (Original Transaction Information).............................................................157
MCC Adjustments in Brazil..........................................................................................................................158

Overview of Mastercard Transaction Enablement Service (TES)
Overview of Mastercard Transaction Enablement Service (TES)

TES is an optional service that ensures the correct submission of certain Data Elements (DEs)
and or Private Data Subelements (PDSs) by correcting DEs and or PDSs on behalf of acquirers.
Acquirers participating in TES may obtain various benefits, including reduced settlement delays
and operational impacts associated with the management of clearing rejects. Also, acquirers
that would like to receive reconciliation report data associated with TES can request it from
Mastercard.
Mastercard will make the reconciliation data available to acquirers through the raw data file
upon request via Customer Support. The file contains the data elements and or subelements
originally submitted by acquirers and were subsequently adjusted by GCMS as a result of
participating in the service. This file will only be sent to acquirers upon First Presentment
(1240-200) messages clearing succesfully.
Service Requirements for Acquirers
TES is an opt-out service in Brazil. All acquirers configuring new identifiers (also referred to as an
ICA number) will be automatically enrolled unless they choose to opt out at the time of
onboarding.
However, the raw data file, IP714010-AA (Acquirer Accepted Errors Detail Report), containing
reconciliation data from TES will be available to acquirers only by request through Customer
Support.
Acquirer Accepted Errors Detail Report (IP714010-AA)

Mastercard created a new logical raw data file (IP714010-AA) that is sent to acquirers within
the existing TN70 (prod) / TN72 (test) bulk file types. Each raw report date file will be
differentiated by looking at the header and trailer record of each report.
NOTE: TN70 (prod) / TN72 (test) bulk file type attributions are not changing, only a new logical raw
data file is being added to these existing bulk file types.
Header Record
Field ID Length Comments

1 ans-17 Value HIP714010-AA
2 n-11 ICA
3 n-07 Endpoint
4 ans-683 Filler of spaces

Detail Record
Starting
Field name DE PDS Subfield Length position
D (Detail Static value 1 1
Record)
Distribution ICA 11 2
Message Type MTI 4 13
Indicator
Primary 2 19 17
Account
Number (PAN)
Processing 3 1, 2, 3 6 36
Code (includes
all subfields)
Amount, 4 12 42
Transaction
Reconciliation 5 12 54
Amount
Conversation
Rate
Date and Time, 12 12 74
Local
Transaction
Point of Service 22 1-12 12 86
Data Code
Function Code 24 3 98
Message 25 4 101
Reason Code
Card Acceptor 26 4 105
Business Code
Original 30 1 12 109
Amount,
Transaction
Acquirer 31 23 121
Reference Data
Approval Code 38 6 144
Service Code 40 3 150

Starting
Terminal ID
ID Code
Card Acceptor 43 1, 2, 3 83 176
Name and
location
Card Acceptor 43 4 10 259
post Code
State, Province,
or Region Code
Country Code
Global Clearing 0002 3 275
Management
System Product
Identifier
Licensed 0003 3 278
Product
Identifier
Terminal Type 0023 3 281
Message 0025 1 1 284
Reversal
Indicator
Electronic 0052 1, 2, 3 3 285
Commerce
Security Level
Indicator
File ID 0105 1, 2, 3, 4 25 288
Fee Type Code 0146 1 2 313
Fee Processing 0146 2 2 315
Code
Fee Settlement 0146 3 2 317
Indicator
Currency Code 0146 4 3 319
Amounts, 0146 5 12 322
Transaction Fee

Starting
Fee
Reconciliation
Amount Fee 0146 7 12 337
Reconciliation
Extended: Fee 0147 1 2 349
Type Code
Processing
Code
Settlement
Indicator
Extended: 0147 4 3 355
Currency Code,
Fee
Extended: 0147 5 18 358
Interchange
Amount, Fee
Extended: 0147 6 3 376
Currency Code,
Recon.
Extended: 0147 7 18 379
Interchange
Amount, Fee,
Recon.
Currency 0148 1, 2 4 397
Exponents
Currency Code, 0149 1 3 401
Original
Transaction
Amount
Card Program 0158 1 3 404
Identifier
Business 0158 2 1 407
Service
Arrangement
Type Code
Business 0158 3 6 408
Service ID Code

Starting
Interchange 0158 4 2 414
Rate
Designator
Central Site 0158 5 6 416
Business Date
Business Cycle 0158 6 2 422
Classification
Override
Indicator
Product Class 0158 8 3 425
Override
Indicator
Corporate 0158 9 1 428
Incentive Rates
Apply Indicator
Special 0158 10 1 429
Conditions
Indicator
Mastercard 0158 11 1 430
Assigned ID
Override
Indicator
ALM Account 0158 12 1 431
Category Code
Rate Indicator 0158 13 1 432
MasterPass 0158 14 1 433
Incentive
Indicator
Settlement 0159 1 11 434
Service Transfer
Agent ID
Service Transfer
Agent Account
Service Level
Code

Starting
Service ID Code
Foreign
Exchange Rate
Class Code
Reconciliation 0159 6 6 485
Date
Cycle
Date
Cycle
Transaction 49 3 501
Currency Code
Currency Code
Additional 54 20 507
Amount
Trace ID 63 2 15 527
Destination
Institution ID
Code
Originator
Institution ID
Code
Data Record 72 100 564
Digital Wallet 0158 15 1 664
Interchange
Override
Indicator
Currency 0015 1 6 665
Conversion
Date

Enablement Service.
Starting
Currency 0015 2 1 671
Conversion
Indicator
Original MCC 26 4 672
Original IRD 0158 4 2 676
Accepted Error 0005 3 40 678
Numbers
Trailer Record

1 ans-17 Value of TIP714010-AA
2 n-11 ICA
3 n-07 Endpoint
4 n-12 Total of detail records only
Application Notes
• The interchange rate designator (IRD) is not applicable for Brazil, therefore the Original IRD
field will contain spaces.
• The Original MCC field applies to Brazil only.

Enablement Service.
Contents of PDS 0445 (Original Transaction Information)

PDS 0445 (Original Transaction Information) contains one or more data elements (DE) and
private data subelements (PDS) echoing the transaction information that was submitted by
acquirers and adjusted by TES.
For more information about the attributes, please refer to the IPM Clearing Formats Manual

MCC Adjustments in Brazil
For acquirers participating in TES, Mastercard will adjust the submitted data element (DE) 26
(Acceptor Business Code [MCC]) within Brazilian intracountry First Presentment/1240-200
messages. If the MCC submitted by the acquirer is not valid for the Merchant Tax ID provided in
Private Data Subelement (PDS) 0220 (Brazil Merchant Tax ID), Mastercard will replace it with a
valid MCC to ensure that the transaction is not rejected with GCMS error 3007.
When Mastercard rejects the original First Presentment for a reason other than error code
3007, Mastercard will return the message with an updated DE 26 (Acceptor Business Code
[MCC]) value in First Presentment/1240-200 message and the originally submitted DE 26 value
in PDS 0445 (Original Transaction Information) within the Message Exception/1644-691
message that accompanies the reject. For example, a customer submits MCC code (DE 26)
1234 to Mastercard in the First Presentment/1240-200 message and it is not valid for the
Brazil Merchant Tax ID. When Mastercard applies TES, the MCC value is updated with 5678.
Later in the process, the message is rejected with a different error code and must be returned to
the acquirer.
Mastercard will include adjusted MCC 5678 in DE 26 within the First Presentment/1240-200
message, and the original, acquirer-provided MCC 1234 in PDS 0445 within the Message
Exception/1644-691 message in the T112 and T113 files. For more information about PDS
0445, refer to AN 7424 Introducing Private Data Subelement (PDS) 0445 (Original Transaction
Information).
NOTE: As a result of the MCC adjustment, GCMS may derive an interchange fee amount that differs
from the amount originally expected by the acquirer. This can occur because TES may modify the MCC
but will not change the IRD. As a result, GCMS interchange overrides that are based on the MCC will
be affected by the adjusted MCC.
The Associação Brasileira das Empresas de Cartões de Crédito e Serviços (ABECS), of which
Mastercard is an associated member, is enabling public access to their CNPJ/TAX ID and MCC
database. ABECS will make updates to their CNPJ/TAX ID and MCCs database on the last
business day of every month. In turn, Mastercard will provide the following one month for
acquirers and processors to make their database updates as needed before changes are
effective in Mastercard systems.
Accordingly, the effective date for changes or rejections due to incorrect MCCs will be the first
of the month, based on data updates from the prior month. For example:
Example
Step Description Date

Step 1 ABECS updates the database on Friday, September 29, 2023
the last business day of the
month, which may or may not be
the last calendar day of the
month.

Step Description Date

Step 2 ABECS provides the following Sunday, October 1, 2023 through
month for acquirers and Tuesday, October 31, 2023
Mastercard to make updates to
their databases.
Step 3 Clearing messages will be Wednesday, November 1, 2023
validated and modified by
Mastercard using the latest
updates made during the prior
month by Mastercard.
Step 4 Process repeats monthly.
NOTE:
Mastercard is not responsible for the timing, availability and content of the data made available on the
ABECS website.
https://www.abecs.org.br/consulta-mcc-individual
ABECS has sole discretion to alter the data as needed.
TES adjusts MCC in DE 26 and the message clears successfully
1. The acquirer submits a First Presentment/1240-200 message through the R111 bulk file for
processing.
2. GCMS performs the Brazil Merchant Tax ID/MCC validation and it fails.
3. TES adjusts the MCC to a value corresponding to the Brazil Merchant Tax ID present in the
First Presentment message.
4. GCMS performs the remaining edit validations and all edit validations pass.
5. GCMS passes the First Presentment/1240-200 to the Brazil issuer with the updated MCC.

6. If the Brazil acquirer opts to receive the new report (IP714010-AA), then it will be sent to
them.
TES adjusts the MCC in DE 26 and the message is rejected
1. The acquirer submits a First Presentment/1240-200 message through the R111 bulk file for
processing.
2. GCMS performs the Brazil Merchant Tax ID/MCC validation and it fails.
3. TES adjusts the MCC to a value corresponding to the Brazil Merchant Tax ID that was
present in the first presentment message.
4. GCMS performs the remaining edit validations. One other validation fails, causing the
message to be rejected.
5. GCMS rejects the First Presentment/1240-200 message.
6. TES populates the original MCC in PDS 0445 within the Message Exception/1644-691
message and the adjusted MCC in DE 26 within the First Presentment/1240-200 message.
7. GCMS sends this information either in T112 or T113 depending on the acquirer's
participation in T113.

Mastercard In Control platform
Chapter 8 Mastercard In Control platform

This chapter describes the optional Mastercard In Control processing services as they pertain to clearing
processing.
Overview of the Mastercard In Control platform......................................................................................... 162

Mastercard In Control Real Card Spend Control service............................................................................. 162
Global Clearing Management System processing for the Mastercard In Control platform................. 163
Mastercard In Control mapping process...................................................................................................163

Overview of the Mastercard In Control platform
Overview of the Mastercard In Control platform

The Mastercard In Control platform is a powerful and flexible system that provides a number of
advanced authorization, transaction routing, and alert notification capabilities designed to
assist issuers in creating new and enhanced payment products for their consumer and
commercial cardholders.
Mastercard In Control fully integrates patented payment technologies with unparalleled global
processing capabilities. With the integration of this capability into Mastercard core processing,
issuers can benefit from cost efficiencies and speed-to-market for new commercial product
development.
With the Mastercard In Control platform, issuers can leverage off-the-shelf solutions and create
customized offerings to meet the needs of their customers.
Among the advanced features issuers can leverage to support their commercial card portfolios
are
• enhanced authorization controls that direct how, when, and where cards may be used
• personalized real-time communication about transaction activities through a robust alert
functionality
• improved levels of security, control, data capture, and traceability on every purchase through
a limited use number feature that allows authorization, spending limits, and usability
controls to be set on a transaction-by-transaction basis
• the ability for cardholders to establish spend-control rules for their pre-existing payment
cards to be applied during the authorization process, and
• enhanced purchase controls for Mastercard commercial cards. In addition to other
capabilities, this service platform allows for the generation of a unique Mastercard In Control
virtual card number for every transaction, and
Participation in Mastercard In Control is optional.
Mastercard In Control Real Card Spend Control service

The Mastercard In Control Real Card Spend Control service provides cardholders with the ability
to establish spend control rules for their pre-existing payment cards.
The spend control rules for cardholders’ payment cards
• are enforced during the authorization process
• can be defined for both card-present and card-not-present transaction environments, and
• may result in an alert notification being generated to the cardholder or the transaction being
declined on their behalf (depending on the cardholder's pre-defined response rules).

Global Clearing Management System processing for the Mastercard In Control platform
Global Clearing Management System processing for the Mastercard

In Control platform
The Mastercard In Control service processes normally in Global Clearing Management System,
with certain exceptions.
• Transactions with the Mastercard In Control virtual card number (VCN) in DE 2 (Primary
Account Number) are rejected back to the acquirer if mapping to the cardholder's real card
number (RCN) cannot be performed. An example would be an unauthorized, fraudulent
clearing transaction using a Mastercard In Control account number.
• PDS 0001 (Mastercard Mapping Service Account Number) is included in the transaction
messages sent to the issuer when PAN Mapping has been performed. PDS 0001 contains the
Mastercard In Control VCN. PDS 0001 is not included in transaction messages sent to the
acquirer when PAN mapping has been performed.
• Chargebacks are not rejected back to the issuer if there is no mapping for the transaction.
Mastercard attempts to map every chargeback, and if this is not successful, processing will
proceed as usual.
• A Spend Control RCN Switch has been added to the IPM Mastercard Parameter Extract
(MPE) Table IP0040T1: Issuer Account Range. This switch is set to Y when the account range
participates in Mastercard In Control Real Card Spend Control services. Rules for the Real
Card Spend Control service are enforced during the authorization process. Refer to the
Authorization Manual for more information.
For In Control First Presentment/1240 messages:
• If PDS 0502 (Custom Identifier) is present in the First Presentment/1240 message, then the
values will be overlaid with the value OTHER1 in subfield 1 (Custom Identifier Type) and the
Virtual Account Number in subfield 2 (Custom Identifier Detail).
• If PDS 0502 is not present in the First Presentment/1240 message, then PDS 0502 is added
to the message and sent to the issuer. The values are OTHER1 in subfield 1 (Custom
Identifier Type) and the Virtual Account Number in subfield 2 (Custom Identifier Detail).
Mastercard In Control mapping process

The mapping processes for both acquirer-initiated and issuer-initiated transactions are
described in the Mapping Process for Acquirer-initiated Transactions and Mapping Process for
Issuer-initiated Transactions tables.
Mastercard supports a virtual card number (VCN) as an optional service for Mastercard In
Control participants. This added layer of security protects issuers and cardholders against the
risk of fraudulent acquisition and use of an Mastercard In Control account number.
Mastercard maps the VCN to the PAN for processing for acquirer-initiated transactions.
Mapping process for acquirer-initiated transactions

Stage Description
1. The VCN is sent to the Global Clearing Management System.
2. The Global Clearing Management System maps the VCN to the cardholder PAN.
The PAN is used during the clearing process.
1. The first attempt to match to the mapping service authorization log according to the
combination of VCN, Banknet Reference Number, and Banknet Date.
– VCN is in DE 2 (Primary Account Number [PAN])
– The Banknet Reference Number and Date are present in DE 63 (Transaction Life
Cycle ID), subfield 2 (Trace ID) in First Presentment/1240 messages.
2. If Global Clearing Management System does not find a match in the mapping service
authorization log, or if DE 63 is not present in the First Presentment/1240 message,
Global Clearing Management System attempts to match to the mapping service
database using the VCN and registration flag.
3. If Global Clearing Management System cannot match the First Presentment/1240
message, Global Clearing Management System rejects the transaction.
3. The issuer receives the cardholder's PAN in DE 2 (Primary Account Number [PAN]) and the
VCN in PDS 0001 (Mastercard Mapping Service Account Number).
Mapping process for issuer-initiated transactions
Stage Description
1. The RCN is sent in DE 2.
This DE 2 account number is used during the clearing process.
2. Clearing recognizes the transaction as a mapped transaction by checking the virtual

presentment history table and maps the cardholder’s PAN to the VCN.
3. The acquirer receives the VCN in DE 2.
NOTE: The acquirer only receives the masked RCN in PDS 0001 (Mastercard Mapping
Service Account Number) for retrieval and chargeback requests.
NOTE: Transactions that contain the VCN in DE 2 and which cannot be mapped are rejected back to
the sender.
When acquirers receive PDS 0001, the subfield 2 (Account Number) always contains a real,
masked card number. The real card number (RCN) will be masked according to PCI guidelines by
• displaying the first six digits

• filling the remaining digits of the real card number with zeros, and
• displaying the final four digits (for example: 1234560000001234 for a 16-digit PAN or
1234560000000001234 for a 19-digit PAN).

Private Label Program
Chapter 9 Private Label Program

This section describes the Mastercard Private Label Program that offers customers a superior private
label transaction processing solution.
Overview of the Private Label Program......................................................................................................... 167

Private Label addendum................................................................................................................................... 167
Private Label card activation plus initial load................................................................................................168
Participation in the Private Label Program................................................................................................... 168

Overview of the Private Label Program
Overview of the Private Label Program

The Mastercard Private Label Program leverages the existing Mastercard payment system
infrastructure to provide efficient authorization, clearing, and settlement services for private
label card transactions, in addition to value-added products and services that issuers may use in
conjunction with their private label programs.
Mastercard has extensive network reach, acceptance, and standardized formats that provide
issuers with a robust network processing solution for private label card transactions, thereby
addressing the infrastructure limitations of a closed-loop processing model.
In addition to providing a superior private label transaction processing solution, the Mastercard
Private Label Program provides issuers with the ability to use many of the world-class, value-
added services offered by Mastercard. Issuers may optionally benefit from the array of
Mastercard risk management solutions, enhanced transaction processing services, and portfolio
performance management expertise to facilitate financial improvement of their portfolios.
These services are provided exclusively for transactions originating from the approved private
label card portfolios of Mastercard issuers.
Private Label addendum

Private Label Program participants have conveyed the need to obtain the same data they
receive in their closed-loop processing model when they process transactions through the
Private Label Program. The receipt of this custom data is integral to customers meeting their
business needs as participants in a private label program.
The two addenda messages that support the Private Label Program are
• Private Label Common Data, which supports data fields common to the transaction, and
• Private Label Line Item Detail, which supports data fields specific to the individual items
being purchased and included in the transaction.
The Private Label Common Data and Private Label Line Item Detail addenda messages will be
optional for Private Label First Presentment/1240 messages. The Private Label Common Data
addendum message will be conditionally required if the Private Label Line Item Detail
addendum message is provided. In addition, the Private Label Common Data addendum
message must precede the Private Label Line Item Detail addendum message. If the Private
Label Common Data or Private Label Line Item Detail addendum messages are submitted and
rejected, the corresponding First Presentment/1240 message will not be rejected.
Layouts for the Private Label Common Data and Private Label Line Item Detail addendum
messages can be found in the IPM Clearing Formats manual.

Private Label card activation plus initial load
Private Label card activation plus initial load

Mastercard has expanded the existing card activation at the point-of-sale terminal (POS)
functionality to allow card activation messages to be submitted with an initial load. Customers
can offer this functionality, making private label cards more attractive to their merchants, by
enabling activation of prepaid cards with or without a predefined amount.
Acquirers that want to offer the private label card activation plus initial load functionality must
be able to support and value C09 (Card Activation) for PDS 0043 (Transaction Type Identifier)
in First Presentment/1240 messages.
Private label card issuers that want to offer the private label card activation plus initial load
functionality must be able to support and receive value C09 for PDS 0043 in First Presentment/
1240 messages.
Participation in the Private Label Program

Issuers and acquirers are not required to participate in the Mastercard Private Label Program.
Those issuers and acquirers that choose to participate in the program are required to support all
provisions of the program.

Clearing Chip Processing service
Chapter 10 Clearing Chip Processing service

This chapter describes the optional Clearing Chip Processing service for issuers that choose the Chip to
Magnetic Stripe Conversion service.
Clearing Chip Processing service overview.....................................................................................................170

Chip to Magnetic Stripe Conversion................................................................................................................170

Clearing Chip Processing service overview
Clearing Chip Processing service overview

Mastercard provides a Clearing Chip Processing service to assist issuers that want to migrate to
Mastercard chip technology while minimizing the impact and cost of upgrading their host
systems and operations. This On-behalf Service allows issuers to take advantage of the latest
chip technology.
Chip to Magnetic Stripe Conversion Service is offered in both the Global Clearing Management
System and Authorization System. For additional information about Authorization System Chip
to Magnetic Stripe Conversion refer to the Authorization Manual. Clearing and Authorization
System On-behalf Services are optional for issuers.
NOTE: Clearing and Authorization System On-behalf Services must be requested individually.
Chip to Magnetic Stripe Conversion

The Chip to Magnetic Stripe Conversion service removes chip-related data in DE 55 (Integrated
Circuit Card [ICC] System-related Data) if it is present when DE 14 (Date Expiration) is greater
than or equal to the floor expiration date.
The issuer receives the First Presentment/1240–200 message containing PDS 0071 (Chip to
Magnetic Stripe Conversion Indicator), subfield 1 (On-behalf Service) with a value of 01,
indicating chip to Magnetic Stripe Conversion, and subfield 2 (On-behalf Service) with a value of
C, S, or M (based on value in DE 22 [Point of Service Data Code)]) indicating that the conversion
of the chip transaction to a magnetic stripe transaction has been completed.
The following lists the actions for the chip to Magnetic Stripe Conversion service.
If Chip to Magnetic Stripe Conversion is Y for Then the Global Clearing Management System
clearing issuer account range… will…
DE 55 Remove DE 55
PDS 0071 (Chip to Magnetic Stripe Conversion

Indicator) Will contain
Subfield 1 (On-behalf Service) 01 = Chip to Magnetic Stripe Conversion
Subfield 2 (On-behalf Service) C = Conversion of the Chip transaction to

magnetic transaction has been completed when
DE 22 is 05
S = Conversion of the Chip transaction to
DE 22 is 07
M = Conversion of the Chip transaction to
DE 22 is 80

Chip to Magnetic Stripe Conversion
Subfield 3 (On-behalf Service) Blank = No value present
NOTE: The Chip to Magnetic Stripe Conversion service affects issuers only. Acquirers are not affected
by this service.
The Chip to Magnetic Stripe Conversion service is optional for issuers.

Issuers must contact their regional Mastercard representative to request this service and
identify the account range for which the Chip to Magnetic Stripe Conversion service will
support.

Extended Decimal Precision service
Chapter 11 Extended Decimal Precision service

Conditional Extended Decimal Precision service provides participating customers with interchange
calculated to six decimal positions for each transaction.
Extended Decimal Precision service overview............................................................................................... 173

Extended Decimal Precision adjustment amount determination..............................................................173

Extended Decimal Precision service overview
Extended Decimal Precision service overview

The Extended Decimal Precision (EDP) service provides participating customers with
interchange calculated to six decimal positions for each transaction. Qualified transactions are
totaled using a defined set of criteria, and then rounded. In the European Union countries, if the
transactions are identified as regulated, the totaled amount is truncated.
Participation in the EDP service is established at the business service arrangement level.
Transactions qualified for the EDP service have these attributes.
• EDP adjustment amounts are distributed in Fee Collection Messages with a message reason
code of 7827 (Extended decimal precision adjustment amount).
• EDP adjustment amounts are applied to settlement on the next available settlement date.
• Customers receive PDS 0147 (Extended Precision Amounts).
• Customers can select to receive Reconciliation Messages, which provide EDP totals by
– Debits, Extended Precision Amount in Reconciliation Currency (PDS 0397)
– Credits, Extended Precision Amount in Reconciliation Currency (PDS 0398), and
– Amount, Net Extended Precision in Reconciliation Currency (PDS 0399).
NOTE: Regardless of selected reconciliation options, customers receive separate reconciliation

messages 1644-685 (Financial Position Detail) and 1644-688 (Settlement Position Detail) from GCMS
for EDP and non-EDP transactions.
Extended Decimal Precision adjustment amount determination

Once daily, after the last clearing cycle, Mastercard calculates the EDP adjustment amount as
follows.
• For each Transaction Originator (Sender)/Destination (Receiver) Institution ID pair and
reconciliation currency, the amounts in PDS 0146 (Amounts, Transaction Fee), subfield 7
(Amount, Fee, Reconciliation) are summed.
• For each Transaction Originator (Sender)/Destination (Receiver) Institution ID pair and
reconciliation currency, the amounts in PDS 0147 (Extended Precision Amounts), subfield 7
(Interchange Amount, Fee, Reconciliation) are summed.
• The totaled amounts of PDS 0146, subfield 7 are subtracted from the totaled amounts of
PDS 0147, subfield 7 to calculate the EDP adjustment amount in sender and receiver
reconciliation currency.
EDP adjustment amount calculation example

All transactions in this example have these characteristics.
• First Presentment/1240 messages
• Transaction currency is EUR
• Sender Reconciliation Currency is EUR

• Receiver Reconciliation Currency is EUR

• Assume 1 EUR = 1.25 USD (mid currency conversion rate)
Sender Receiver
Sender Fee Interchange Receiver Fee Interchange
Amount in Amount, Amount in Amount,
Recon Fee, in Recon Recon Fee, in Recon
Currency Currency Currency Currency
(PDS 0146, (PDS 0147, (PDS 0146, (PDS 0147,
Transaction Sender Receiver SF 7) SF 7) SF 7) SF 7)
1 Acquirer 1 Issuer 1 -5.00 -5.003987 5.00 5.003987
2 Acquirer 1 Issuer 1 -10.00 -10.001234 10.00 10.001234
3 Acquirer 1 Issuer 1 -20.00 -20.005841 20.00 20.005841
4 Acquirer 2 Issuer 2 -6.00 -6.001223 6.00 6.001223
5 Acquirer 2 Issuer 2 -7.00 -7.003589 7.00 7.003589
6 Acquirer 3 Issuer 1 -8.00 -8.001899 8.00 8.001899
7 Acquirer 2 Issuer 1 -11.00 -11.002651 11.00 11.002651
8 Acquirer 2 Issuer 1 -30.00 -30.003877 30.00 30.003877
9 Acquirer 2 Issuer 1 -40.00 -40.002445 40.00 40.002445
10 Acquirer 4 Issuer 3 -50.00 -50.008511 50.00 50.008511
11 Acquirer 4 Issuer 3 -20.00 -20.007688 20.00 20.007688
EDP Calculation: PDS 0146, subfield 7 and PDS 0147, subfield 7 summed by Sender/Receiver
pairs:
Sender Sender Net Receiver Receiver Net

Net Fee Sender Net Adjustment Net Fee Receiver Net Adjustment
Amount Interchange in Recon Amount Interchange in Recon
in Recon Amount, Fee, Currency in Recon Amount, Fee, Currency
Currency in Recon (PDS 0147, Currency in Recon (PDS 0147,
(PDS Currency SF 7 minus (PDS Currency SF 7 minus
0146, SF (PDS 0147, PDS 0146, 0146, SF (PDS 0147, PDS 0146,
Sender Receiver 7) SF 7) SF 7) 7) SF 7) SF 7)
Acquirer 1 Issuer 1 -35.00 -35.011062 -0.011062 35.00 35.011062 0.011062
Acquirer 2 Issuer 2 -13.00 -13.004812 -0.004812 13.00 13.004812 0.004812
Acquirer 3 Issuer 1 -8.00 -8.001899 -0.001899 8.00 8.001899 0.001899
Acquirer 2 Issuer 1 -81.00 -81.008973 -0.008973 81.00 81.008973 0.008973

Sender Sender Net Receiver Receiver Net

Net Fee Sender Net Adjustment Net Fee Receiver Net Adjustment
Amount Interchange in Recon Amount Interchange in Recon
in Recon Amount, Fee, Currency in Recon Amount, Fee, Currency
Currency in Recon (PDS 0147, Currency in Recon (PDS 0147,
(PDS Currency SF 7 minus (PDS Currency SF 7 minus
0146, SF (PDS 0147, PDS 0146, 0146, SF (PDS 0147, PDS 0146,
Sender Receiver 7) SF 7) SF 7) 7) SF 7) SF 7)
Acquirer 4 Issuer 3 -70.00 -70.016199 -0.016199 70.00 70.016199 0.016199
Net EDP adjustment of the acquirer

Net EDP adjustment amount of Acquirer 1 in USD = 0.011062 * 1.25 = 0.013827 = 0.01 USD
(DR)
(DR)
(DR)
(DR)
Net EDP adjustment of the issuer
Net EDP adjustment amount of Issuer 1 in USD = 0.021934 * 1.25 = 0.027417 = 0.02 USD (CR)
The EDP adjustment amounts are reported per Institution ID in Fee Collection Messages,
Message Type Indicator (MTI) = 1740, and Function Code (DE 24) = 783, with Message Reason
Code (DE 25) = 7827.
The Fee Collection Messages are processed through GCMS on the following GCMS Central Site
Business Date.
Using the example above, GCMS builds Fee Collection Messages as follows.
DE 93 (Transaction DE 3 (Processing Code),

Destination Institution SF 1 (Cardholder DE 4 (Amount, DE 49 (Currency Code,
ID Code) Transaction Type) Transaction) Transaction)
Acquirer 1 19 000000000001 840
Acquirer 2 19 000000000001 840
Acquirer 4 19 000000000002 840
Issuer 1 29 000000000002 840

DE 93 (Transaction DE 3 (Processing Code),

Destination Institution SF 1 (Cardholder DE 4 (Amount, DE 49 (Currency Code,
ID Code) Transaction Type) Transaction) Transaction)
Issuer 3 29 000000000002 840
Balancing reconciliation messages to transactions

• Accumulate financial transactions by selected reconciliation options and currency.
• Sum PDS 0146, subfield 7 debits and match to the debits' fee amount received in PDS 0392
(Debits, Fee Amounts in Reconciliation Currency).
• Sum PDS 0146, subfield 7 credits and match to the credits' fee amount received in PDS
0393 (Credits, Fee Amounts in Reconciliation Currency).
• Net PDS 0146, subfield 7 debits and credits and match to the net fee amount received in
PDS 0395 (Amount, Net Fee in Reconciliation Currency).
• Sum PDS 0147, subfield 7 debits and match to the debits' fee amount received in PDS 0397
(Debits, Extended Precision Amount in Reconciliation Currency).
• Sum PDS 0147, subfield 7 credits and match to the credits' fee amount received in PDS
0398 (Credits, Extended Precision Amount in Reconciliation Currency).
• Net PDS 0147, subfield 7 debits and credits and match to the net fee amount received in
PDS 0399 (Amount, Net Extended Precision in Reconciliation Currency).
Balance reconciliation messages to Clearing Acknowledgment and Notification

Cycle Reports
The net sum of PDS 0394 (Amount, Net Transaction) and PDS 0395 (Amount, Net Fee) will
match to the IP727010-AA Clearing Cycle Acknowledgment and IP727020-AA Clearing Cycle
Notification Reports.

Business service
Chapter 12 Business service

This section defines business service and describes the types of business service options Mastercard
offers.
Definition of business service........................................................................................................................... 179

Types of business service arrangements........................................................................................................ 180
Business-to-business business service.......................................................................................................182
Customer-to-customer business service...................................................................................................182
Intracountry business service......................................................................................................................182
Intercountry business service...................................................................................................................... 182
Intraregional business services....................................................................................................................182
Interregional business services....................................................................................................................183
Participating in business service arrangements............................................................................................183
Requirements for customers participating in business service arrangements.................................. 183
Business service features and qualification criteria..................................................................................... 184
Additional features for business service arrangements.........................................................................185
Business service calendar and transaction timeliness...................................................................... 185
Interchange rates and fees structure...................................................................................................186
Manual cash disbursement accommodation fee............................................................................... 186
Procedures for applying for a business service arrangement..................................................................... 186
Identifying business service within IPM messages........................................................................................186
Contents of PDS 0158 (Business Activity)...............................................................................................187
PDS 0158, subfield 1 (Card Program Identifier)................................................................................188
PDS 0158, subfield 2 (Business Service Arrangement Type Code)................................................ 188
PDS 0158, subfield 3 (Business Service ID Code)..............................................................................188
Account Management System (AMS) region codes.................................................................... 189
Intraregional ID codes........................................................................................................................189
Interregional ID codes........................................................................................................................190
PDS 0158, subfield 4 (Interchange Rate Designator).......................................................................192
Acquirer creation of the outbound message with business activity.................................................... 192
Issuer identification of business activity within the inbound message................................................193
Retrieval request and retrieval fee billing transactions..........................................................................194
When business service is submitted by the customer............................................................................ 194
Using the MPE to select the card program identifier and business service information....................... 194
Data and message content validation by Global Clearing Management System............................ 198
Step 1: validate the elements used in the selection process............................................................198
Step 1a: validate format requirements...............................................................................................199

Business service
Step 1b: validate syntax/attribute of selection elements................................................................199

Step 1c: validate content of selection elements................................................................................200
Step 2: determine whether the transaction requires business service processing...................... 201
Step 3: business service arrangement selection................................................................................ 202
Step 3a (standard process): retrieve and match card program identifier and business
service arrangement participation.......................................................................................................202
Step 3b (central acquiring process): retrieve and validate issuer card program identifier
and business service arrangement participation...............................................................................203
Global Clearing Management System validation of business service arrangement.........................206
Step 4: validate the message reason code and reversal indicator for the card program
identifier/business service arrangement combination......................................................................207
Step 5: validate the processing code and reversal indicator for the card program identifier/
business service arrangement combination........................................................................................208
Step 6: determine whether IRD validation is required for the transaction................................... 208
Interchange rate designator (IRD) validation.......................................................................................... 209
Step 7: validate the processing code and reversal indicator for the IRD....................................... 209
Step 8: validate product codes for the IRD.........................................................................................209
Step 9: validate AB programs for the IRD...........................................................................................211
Step 10: validate transaction currency for the business service.....................................................212
Step 11: check for intracountry business service overrides..............................................................212
Enforcement of business service arrangements......................................................................................213
Default business service arrangements...............................................................................................214
Life cycle processing supported by Global Clearing Management System........................................ 214
Global Clearing Management System edits, fee assignments, and fee calculation......................... 217

Business service
Definition of business service
Definition of business service

A business service is an arrangement with Mastercard between two or more customers that
defines, in a manner consistent with Mastercard Standards (or the standards of the other
applicable brand), the card program identifier, business rules, and interchange processing
requirements for transactions occurring between the participating customers.
An arrangement can be either mandated by Mastercard Standards or voluntarily entered into by
the participating customers. Business service processing in Global Clearing Management Service
(Global Clearing Management System) supports current mandated arrangements as well as
current and future voluntary arrangements.
Business service functionality provides for flexibility and customization of transaction
processing. The particular processing options and fee structures are based on
• mutual participation in the arrangement, where both the issuer and acquirer agree to
participate in the business service arrangement, and
• the business rules that are defined by Mastercard for the particular business service
arrangement and interchange program.
Mastercard defines a set of qualification criteria and editing rules for each card program
identifier within a business service arrangement. Card program identifiers include any of the
Mastercard family of brands, including, but not limited to, Mastercard, Cirrus, and Maestro.
Mastercard may agree to add additional brands (that are not Mastercard brands) as business
needs dictate. The qualification criteria and editing rules are parameter-based and maintained
in tables to provide for timely updates and to permit implementation of changes outside the
normal Mastercard release schedule.
NOTE: Most major changes, such as changes that affect all customers globally or all customers within
a specific region, will continue to be implemented in a standard release schedule.
In Global Clearing Management System, business services allow customers to customize

interchange rules, options, and fee structures for transactions that involve a given card program.
The customization also may be based on
• the acquirer's business country code: the country code associated with the acquiring BIN
involved in the transaction. Mastercard establishes the country codes and includes them on
the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE) file, or
• the issuer's business country code: the country code associated with the issuing account
range involved in the transaction (Mastercard establishes the country codes and includes
them on the IPM MPE), or
• the merchant's country code: the country code associated with the merchant and found in
Data Element (DE) 43 (Acceptor Name/ Location), subfield 6 (Acceptor Country Code), or
• The interchange program rules that the particular business service agreement and
interchange program define. These business rules include
– specific product identification codes
– timeliness requirements (such as submission time frames for first presentments)

Business service
Types of business service arrangements
– authorization code requirements

– acceptor business code (MCC) requirements
– processing code requirements, and
– other business service and business service ID criteria.
The purpose of business service functionality is to
• support customers by reducing the development and testing effort required to establish new
business arrangements and interchange programs and rates, thereby allowing Mastercard to
react to changing market situations quickly, and
• support customers in their business relationships with other customers, including mandated
business relationships, such as intraregional and interregional interchange programs. For
example, Global Clearing Management System can assess fees for business service
transactions in local currencies. This can simplify the calculation and reconciliation of
expected fees for customers.
NOTE: For more information about processing cycles, time frames, and thresholds for clearing
transactions, refer to the Processing Cycles and Regulations chapter of the Global Clearing
Management System Reference Manual.

Business service arrangements may exist at many levels of customer business relationships.
Customers may participate in multiple business service arrangements under a single customer
ID.
There are five types of business service arrangements, each with a defined hierarchy or priority
to determine how the system processes transactions.
All customers participate in at least one intraregional business service arrangement and at least
five interregional business service arrangements. These arrangements consist of the
interchange programs and rates defined by Mastercard (such as International Standard
interchange and International Electronic interchange).
The following are the types of arrangements that Mastercard defines:

Business service
Business Service Description System Geography Arrangement

Arrangement Selection Type Code
Hierarchy (PDS 0158s2)
Business-to- An arrangement between First priority None 8
Business all the customers (acquirers
and issuers) that participate
in a given business initiative.
The interchange is defined
by Mastercard. This business
service type has no
geographic or business
region boundaries.
Customer-to- An arrangement involving a First priority None 8
Customer pair of customers, or group
of customers (This business
service type has no
geographic or business
region boundaries).
NOTE: If both Business-to-

Business and Customer-to-
Customer Business Service
arrangements are valid,
then the Customer-to-
Customer Business Service
Arrangement will have
priority over the Business-
to-Business Service
Arrangement.
Intracountry An arrangement involving all Second priority Single Country 4

customers within a single
country.
Intercountry An arrangement involving Third priority Two or more 3
(formerly customers in multiple Countries or
Subregional) countries or business Regions
regions. Participants are not
required to be within a
single business region.
Intraregional An arrangement involving all Fourth priority Single Region 2
customers within a business
region.
Interregional An arrangement involving all Fifth priority Two Regions: 1
customers in different From and To
business regions.

Business service
Business-to-business business service
Business service arrangements are established in accordance with local laws and regulations.
For questions about participation in, or the hierarchy of business arrangement qualification,
please contact your Mastercard representative.
Business-to-business business service

Business-to-business arrangement leverages Business Service Level 8. This arrangement reflects
the relationship between all customers that are part of the business initiative.
As an example, all acquirers globally and participating issuers could be part of business-to-
business arrangement. The same criteria is used by all participating acquirers and issuers
regardless of where the transaction is acquired or issued. This arrangement is not the same as
customer-to-customer arrangement. Mastercard defines the interchange criteria and
interchange rate.
Customer-to-customer business service

Customer-to-customer arrangements reflect specific business relationships among customers.
Participating customers work with Mastercard to establish common processing standards,
interchange programs and rates, and qualifying criteria for the arrangement.
Global Clearing Management System supports customers’ participation in multiple customer-
to-customer arrangements.
Intracountry business service

The intracountry business service supports business arrangements available to all customers
within the same country. This type of business service arrangements apply when the acquirer,
issuer, and merchant are all located in the same country. Customers work with Mastercard to
establish common processing standards, interchange programs and rates, and qualifying criteria
for the arrangement.
Intercountry business service

Intercountry business service arrangements allow all customers within multiple countries or
business regions to enter into an agreement with Mastercard to apply unique fees and editing
rules to transactions among participating customers. This type of business service
arrangements apply when the acquirer, issuer, and merchant are located across multiple
countries and at least one is located in a different country.
NOTE: The definition of the rules for all customer defined arrangements must be consistent with
Mastercard standards (or the standards of the other applicable brands) and established in accordance
with the Mastercard Rules.
Intraregional business services

Intraregional business service arrangements apply to all customers within a single region. This
type of business service arrangements apply when the acquirer, issuer, and merchant are
located within single region, and at least one participant among the acquirer, issuer, or merchant
is located in a different country within the region. For the United States region, Intraregional
business service will applied when the acquirer, issuer, and merchant are all located within

Business service
Interregional business services
United States region. All customers currently participate in at least one intraregional business
service arrangement.
Intraregional arrangements consist of the interchange programs and rates defined by
Mastercard, such as the Interregional Consumer Rate I, Digital Commerce, Core and the Issuer/
Acquirer Chip incentive interchange rate programs.
Interregional business services

Interregional business service arrangements apply to all customers in two different regions. This
type of business service arrangements apply when at least one participant among the acquirer,
issuer, and merchant is located in another region. All customers currently participate in at least
five interregional business service arrangements, depending on the country that is defined for
the customers’ issuing account ranges, acquiring BINs, or both.
Interregional arrangements consist of the International interchange programs and rates defined
by Mastercard (such as Interregional Consumer Rate I, Digital Commerce, Core and Corporate
Purchasing Data Rate II).
The geographic designation for interregional arrangements consists of a from region and a to
region.
• The from region is defined as the region associated to the value in DE 31 (Acquirer Reference
Data), subfield 2 (Acquirer Reference ID), or in the absence of DE 31, the value in DE 94
(Transaction Originator Institution ID Code) of the message.
• The to region is defined as the region associated to the value in the DE 2 (Primary Account
Number [PAN]), or in the absence of DE 2 the value in DE 93 (Transaction Destination
Institution ID Code) of the message.
When the acquirer and issuer are in the same region and the merchant is in a different region,
the from region is defined as the region associated to the merchant identified in DE 43
(Acceptor Name/ Location), subfield 6 (Acceptor Country Code).
Participating in business service arrangements

Customers may participate in business service arrangements at the individual issuing account
range and acquiring BIN levels. Once the issuer and acquirer are identified, Global Clearing
Management System selects the appropriate business service arrangement for each message
on the basis of those in common between the issuer and acquirer.
NOTE: A customer is considered a participant in a business service if at least one issuing account range
or acquiring BIN is participating.
Requirements for customers participating in business service arrangements

There are various technical requirements for customer participation in business service
arrangements.
Participants must

Business service
Business service features and qualification criteria
• issue cards or acquire transactions

• format all transactions using the appropriate IPM message format
• recognize from the IPM MPE or from internal host database tables the parameters used in
determining business service arrangement participation
• use an approved Mastercard method of file transfer to submit transactions (such as the
Mastercard interface processor [MIP], CONNECT:Direct, or Mastercard File Express), and
• participate in mandatory testing.
Business service features and qualification criteria

Each business service has specific requirements, or criteria, that transactions must meet to be
processed within that arrangement. When transactions are exchanged between participating
customers of an arrangement, Global Clearing Management System validates the transaction
against the established criteria and determines whether the transaction qualifies.
Additionally, IRDs are defined within the arrangement, each with its own unique set of qualification
criteria and corresponding interchange fee structure. The criteria available for customization within an
arrangement are described in the following table.
Qualification Criteria Description

Card Program Identifier The set of card program identifiers in PDS 0158 (Business Activity),
subfield 1 (Card Program Identifier) that are valid for the arrangement.
Each of the remaining business service setup parameters have unique
values for each card program identifier.
Global Clearing Management The set of clearing product codes in PDS 0002 (Global Clearing
System Product Identifier Management System Product Identifier), derived from DE 2 (Primary
Account Number [PAN]) that are valid for the card program identifier
within the business service arrangement.
Transaction Function The set of transaction functions (Message Type Identifier plus DE 24
[Function Code]) that are valid for the card program identifier within the
business service arrangement.
Processing Code/ The set of Processing Codes in DE 3 (Processing Code), subfield 1

Reversal Indicator (Cardholder Transaction Type) that are valid for each transaction
function established for the card program identifier within the business
service arrangement. Also defines whether reversals in PDS 0025
(Message Reversal Indicator), subfield 1 (Message Reversal Indicator) are
permitted for the processing code.
Cardholder From Account ID The set of Cardholder From Account ID codes in DE 3 (Processing Code),
subfield 2 (Cardholder From Account Type Code) that are valid for each
transaction function established for the card program identifier within
the business service arrangement.

Business service
Additional features for business service arrangements
Qualification Criteria Description

Cardholder To Account ID The set of Cardholder To Account ID codes in DE 3 (Processing Code),
subfield 3 (Cardholder To Account Type Code) that are valid for each
transaction function established for the card program identifier within
the business service arrangement.
Message Reason Codes/ The set of Message Reason Codes in DE 25 (Message Reason Code) that
Reversal Indicator are valid for each card program identifier within the business service
arrangement. Defines whether reversals are permitted for the message
reason code.
Geography The valid geographical usage for the brand, expressed as a set of valid
regions, country codes, or a combination of both.
Acceptor Business (CAB) The set of CAB programs that are valid for each card program identifier
Programs within the business service arrangement.
Additional features for business service arrangements

Options such as timeliness editing and authorization code requirements may be defined for a
business service. In addition, interchange fee structures and optional addendum message
requirements must be defined for transactions to be exchanged within the arrangement.
Business service calendar and transaction timeliness

A business service calendar is established by the participants of each arrangement, defining the
processing days and holidays to be observed within the arrangement. Global Clearing
Management System uses the information in the calendar for calculating transaction
timeliness, when applicable.
If requested, Global Clearing Management System will perform transaction timeliness editing
according to the number of days permitted, considering any excluded days as specified in the
business service calendar. Several types of dates may be excluded from the interchange
timeliness calculation, such as
• non-processing days (holidays)
• holidays
• transaction date, and
• file header date.
NOTE: When two or more conditions occur on the same day (for example, Holiday = excluded date, and
Processing Date = not excluded), exclusions take precedence and the day will not be counted in the
timeliness calculation.

Business service
Interchange rates and fees structure
Interchange rates and fees structure

Customer arrangements define, in accordance with Mastercard Standards, interchange rate
designators (IRDs) and corresponding interchange rate structures to be applied to transactions
exchanged between participating customers.
In addition, participating customers can specify whether Global Clearing Management System
should calculate interchange fees for bilaterally settled transactions that qualify for the
business service. For more information about bilaterally settled transactions, refer to the
Bilateral Settlement Activity chapter of the Global Clearing Management System Reference
Manual.
Manual cash disbursement accommodation fee

Customers that participate in an intracountry business service arrangement may establish an
accommodation fee for manual (non-ATM) cash disbursements. The issuer pays an
accommodation fee to the acquirer for transactions involving a manual (non-ATM) cash
disbursement.
Customer-defined manual cash disbursement fees may be calculated as a percentage of the
transaction amount, a unit fee in local currency or U.S. dollars, a minimum cash disbursement
accommodation fee, or any combination thereof.
Procedures for applying for a business service arrangement

Customers should contact the Global Customer Service team or the appropriate Mastercard
regional office for information about initiating a business service arrangement or modifying an
arrangement currently recognized by Mastercard and processed within Global Clearing
Management System.
Certain business service arrangements will be documented and signed by participating
customers. All agreements requiring signatures must be signed and submitted to Mastercard
before business service testing may begin. In addition, each business service arrangement is
subject to and conditioned on the prior written approval of Mastercard.
NOTE: Customers that require additional assistance to support unique local requirements should
contact the appropriate regional office.
Identifying business service within IPM messages

Global Clearing Management System uses the IRD submitted by the sender of the message and
the parameters established within the system to select or validate various information for each
transaction:
• PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)
• PDS 0158, subfield 2 (Business Service Type)
• PDS 0158, subfield 3 (Business Service ID)

Business service
Contents of PDS 0158 (Business Activity)
Depending on the business activity for the transaction, Global Clearing Management System
applies appropriate processing rules, in accordance with the business service.
The sending customer optionally may submit the business service arrangement type and ID code
in the message. In this situation, Global Clearing Management System will validate only that the
values submitted in PDS 0158, subfields 2 and 3 are applicable for the message. Global Clearing
Management System will either select the card program identifier or validate the customer-
submitted card program identifier value in PDS 0158, subfield 1. If the system finds the
transaction does not qualify for the submitted business service and interchange rate designator,
the transaction will be rejected.
Contents of PDS 0158 (Business Activity)

Global Clearing Management System selects or validates the values in PDS 0158 (Business
Activity) for each applicable financial transaction.
The first four subfields are as follows.
Subfield Description Definition For example...

1 Card Program Three-position code that identifies MCC = Mastercard® card
Identifier Mastercard or other applicable
brand under whose umbrella
transactions are processed.
2 Business Service One-position code that identifies the 2 = Intraregional

Arrangement interchange relationship for the
Type Code business arrangement.
3 Business Service Unique, six-position code that 010001 = U.S. intraregional

ID Code identifies the specific interchange business service
arrangement assigned to the
transaction.
4 Interchange Code that specifies the interchange 70 = U.S. intraregional

Rate Designator rate to apply to the transaction. Merit III
interchange rate
When sending transactions to Global Clearing Management System, customers must submit an
interchange rate designator in subfield 41 and may populate subfields 1, 2, and 3 with either
spaces or the appropriate business service data. Global Clearing Management System will reject
any transaction that contains invalid data in PDS 0158, subfields 1 through 4. For all other valid
transactions, Global Clearing Management System will populate subfields 1, 2, and 3 with the
system-selected information, and will also populate subfields 5 through 12 of PDS 0158 before
forwarding the transaction to the receiving customer.
1 Refer to PDS 0158: Business Activity in the IPM Clearing Formats manual for format exceptions to subfield 4.

Business service
PDS 0158, subfield 1 (Card Program Identifier)
Global Clearing Management System derives the information according to evaluation of the
message contents against the qualification criteria for business service arrangements in
common between the issuer and acquirer. If Global Clearing Management System cannot find a
business service in which to process the transaction, the Global Clearing Management System
will reject the transaction.
PDS 0158, subfield 1 (Card Program Identifier)

The use of PDS 0158 (Business Activity), subfield 1 (Card Program Identifier) by transaction
originators is conditional; if used, it may require Mastercard to exercise alternate card program
edits, which use the BIN in the Acquirer Reference Data (ARD) to obtain and validate the card
program.
PDS 0158, subfield 2 (Business Service Arrangement Type Code)

This table indicates the business service type (located in PDS 0158, subfield 2 [Business Service
Arrangement Type Code]) currently defined.
PDS 0158, Subfield 2 Value Business Service Type

1 Interregional
2 Intraregional
3 Intercountry
4 Intracountry
8 Business-to-Business Arrangement or Customer-

to-Customer Agreement
PDS 0158, subfield 3 (Business Service ID Code)

PDS 0158, subfield 3 (Business Service ID Code) is a six-position value that identifies the
business service to which the transaction is assigned for reconciliation and rules considerations.
Type Code Type Description ID Code ID Code Description

1 Interregional FFTTnn FF = from acquiring region
2
TT = to issuing region
nn = unique number the corporation assigned

to each interregional business service
2 When the acquirer and issuer are in the same region and the merchant is in a different region, the from region is
defined as the region associated to the merchant identified in DE 43 (Acceptor Name/ Location), subfield 6
(Acceptor Country Code).

Business service
Account Management System (AMS) region codes
Type Code Type Description ID Code ID Code Description

2 Intraregional RRnnnn RR = business region
nnnn = unique number the corporation assigned

to each intraregional business service
3 Intercountry nnnnnn nnnnnn = unique ID the corporation assigned to

each intercountry business service
4 Intracountry CCCnnn CCC = ISO numeric country code
nnn = unique number the corporation assigned

to each intracountry business service
8 Customer-to- Nnnnnn Nnnnnn = unique number the corporation assigned

Customer or to each customer-to-customer
Business-to- arrangement on file
Business
Account Management System (AMS) region codes

This table lists the Mastercard billing/clearing codes, Account Management System (AMS)
region codes, and corresponding descriptions.
Global Clearing Management

System Code and MCBS
(billing) Code AMS Region Code Description
01 1 United States
02 A Canada
03 B Latin America and the Caribbean
04 C Asia/Pacific
05 D Europe
06 E Middle East/Africa
Intraregional ID codes
This table lists and describes the intraregional ID codes found in PDS 0158, subfield 3 (Business
Service ID Code).
Intraregional ID Code Description

010001 Intraregional business service 0001 for Region 1 (Global Clearing
Management System region 01).

Business service
Interregional ID codes
Intraregional ID Code Description

020001 Intraregional business service 0001 for Region A (Global Clearing
030001 Intraregional business service 0001 for Region B (Global Clearing

040001 Intraregional business service 0001 for Region C (Global Clearing

050001 Intraregional business service 0001 for Region D (Global Clearing

Management System region 05). This business service will be used for
POS transactions (Mastercard POS, Maestro POS, payment
transactions, purchase with cashback, and Mastercard manual cash
disbursements).
050002 Intraregional business service 0002 for Region D (Global Clearing

Management System region 05). This business service will be used for
ATM transactions (Mastercard ATM, Maestro ATM, Maestro manual
cash disbursements, and Cirrus).
060001 Intraregional business service 0001 for Region E (Global Clearing

This table lists and describes the interregional ID codes found in PDS 0158, subfield 3 (Business
Service ID Code).
Interregional ID Code Description

010201 Interregional business service 01 for Region 1 to Region A (Global
Clearing Management System region 01 to 02)
010301 Interregional business service 01 for Region 1 to Region B (Global

010401 Interregional business service 01 for Region 1 to Region C (Global

010501 Interregional business service 01 for Region 1 to Region D (Global

010601 Interregional business service 01 for Region 1 to Region E (Global

020101 Interregional business service 01 for Region A to Region 1 (Global


Business service

020301 Interregional business service 01 for Region A to Region B (Global
020401 Interregional business service 01 for Region A to Region C (Global

020501 Interregional business service 01 for Region A to Region D (Global

020601 Interregional business service 01 for Region A to Region E (Global

030101 Interregional business service 01 for Region B to Region 1 (Global

030201 Interregional business service 01 for Region B to Region A (Global

030401 Interregional business service 01 for Region B to Region C (Global

030501 Interregional business service 01 for Region B to Region D (Global

030601 Interregional business service 01 for Region B to Region E (Global

040101 Interregional business service 01 for Region C to Region 1 (Global

040201 Interregional business service 01 for Region C to Region A (Global

040301 Interregional business service 01 for Region C to Region B (Global

040501 Interregional business service 01 for Region C to Region D (Global

040601 Interregional business service 01 for Region C to Region E (Global

050101 Interregional business service 01 for Region D to Region 1 (Global

050201 Interregional business service 01 for Region D to Region A (Global

050301 Interregional business service 01 for Region D to Region B (Global


Business service
PDS 0158, subfield 4 (Interchange Rate Designator)

050401 Interregional business service 01 for Region D to Region C (Global
050601 Interregional business service 01 for Region D to Region E (Global

060101 Interregional business service 01 for Region E to Region 1 (Global

060201 Interregional business service 01 for Region E to Region A (Global

060301 Interregional business service 01 for Region E to Region B (Global

060401 Interregional business service 01 for Region E to Region C (Global

060501 Interregional business service 01 for Region E to Region D (Global

NOTE: The IPM MPE contains a complete list of business service arrangements.
PDS 0158, subfield 4 (Interchange Rate Designator)

For transactions that involve Mastercard card programs, the originator of the message must
submit a valid interchange rate designator (IRD) value in PDS 0158 (Business Activity), subfield
4 (Interchange Rate Designator).
PDS 0158, subfields 1 through 3 may contain spaces. Global Clearing Management System will
populate these subfields with the system-derived values. If the system cannot find a business
service in which to process the transaction, the Global Clearing Management System will reject
the transaction.
For transactions that involve card programs other than Mastercard, the originator of the
message must submit a valid IRD value in PDS 0158, subfield 4, if required by the arrangement.
Spaces may be submitted in PDS 0158, subfields 1-3, and Global Clearing Management System
will populate these subfields with the system-derived values.
NOTE: If PDS 0158, subfield 4 is CS, and the merchant or acquirer country is not China (CHN), or the
issuer country is China (CHN), the Clearing Platform will reject the chargeback message with error
number 2709 (PDS0158S4 INTERCHANGE RATE DESIGNATOR INVALID WHEN MERCHANT OR
ACQUIRER COUNTRY IS NOT CHINA OR ISSUER COUNTRY IS CHINA).
Acquirer creation of the outbound message with business activity

Acquirers must use various information to create outbound messages with business activity.
The acquirer

Business service
Issuer identification of business activity within the inbound message
• uses information provided by Mastercard to identify the country codes of the sender and
receiver of the transaction
• uses information provided by Mastercard to identify the business arrangements in which the
sender and receiver participate, and, and
• provides the appropriate interchange rate designator (IRD) in PDS 0158, subfield 4
(Interchange Rate Designator) to designate an interchange arrangement within the specified
business arrangement.
Issuer identification of business activity within the inbound message

The issuer identifies the business service information within the transaction.
Location of the business service information used by the issuer

PDS 0158, subfield 1: Card Program Identifier
PDS 0158, subfield 2: Business Service Arrangement Type Code
PDS 0158, subfield 3: Business Service ID Code
PDS 0158, subfield 4: Interchange Rate Designator (IRD)
PDS 0158, subfield 5: Business Date (Global Clearing Management System provides this field)
PDS 0158, subfield 6: Business Cycle (Global Clearing Management System provides this field)
PDS 0158, subfield 7: Acceptor Classification Override Indicator
PDS 0158, subfield 8: Product Class Override Indicator
PDS 0158, subfield 9: Corporate Incentive Rates Apply Indicator
PDS 0158, subfield 10: Special Conditions Indicator
PDS 0158, subfield 11: Mastercard Assigned ID Override Indicator
PDS 0158, subfield 12: Future Use Account Level Management Account Category Code
PDS 0158, subfield 13: Rate Indicator
PDS 0158, subfield 14: Masterpass Incentive Indicator
PDS 0158, subfield 15: Digital Wallet Interchange Override Indicator

Business service
Retrieval request and retrieval fee billing transactions
Retrieval request and retrieval fee billing transactions

PDS 0158 (Business Activity) is not required in retrieval request or retrieval fee billing
transactions.
When business service is submitted by the customer

The sending customer may submit business service arrangement information in the message.
• PDS 0158, subfield 1: Card Program Identifier
• PDS 0158, subfield 2: Business Service Arrangement Type Code
• PDS 0158, subfield 3: Business Service ID Code
When the sending customer submits business service arrangement information in the private
data subelements listed above, Global Clearing Management System validates only that the
submitted arrangement information is applicable for the message. Global Clearing
Management System either selects the card program identifier, if not submitted by the
customer, or validates the customer-submitted card program identifier value in PDS 0158,
subfield 1. If the submitted information in PDS 0158, subfield 2 and PDS 0158, subfield 3 is not
valid for the message or for the Global Clearing Management System-selected or customer-
submitted card program identifier in PDS 0158, subfield 1, Global Clearing Management
System rejects the message.
IF the sender submits… THEN…

Business service arrangement • Both the Business Service Arrangement Type Code (PDS
information (PDS 0158, subfield 2 and 0158, subfield 2) and Business Service ID Code (PDS
subfield 3) 3 0158, subfield 3) must be submitted together.
• The Card Program Identifier (PDS 0158, subfield 1) must
contain spaces or a valid card program identifier for the
business service arrangement information provided.
• If IRD validation is required for the message, the IRD also
must be present in the message. Global Clearing
Management System validates the transaction against
the qualification criteria for the IRD.
Using the MPE to select the card program identifier and business
service information
Global Clearing Management System can select or validate the business activity (PDS 0158,
subfields 1-4) for all financial transactions. The following outlines the steps that Global Clearing
Management System follows to select the business activity for financial transactions using the
IPM Mastercard Parameter Extract (MPE). This includes selection or validation of the card
3 Card Program Identifier (PDS 0158, subfield 1) may be spaces or may contain a card program identifier value when
submitting business service information in PDS 0158, subfield 2 and PDS 0158, subfield 3.

Business service
Using the MPE to select the card program identifier and business service information
program identifier, selection or validation of the business service arrangement, and validation of
the interchange rate designator (IRD), if applicable.
Step Action
Data and Message Content Validation
1a. Validate format requirements of the elements used in the selection process
1b. Validate syntax and attributes of elements used in the selection process
1c. Validate content of elements used in the selection process
2. Determine whether the transaction requires business service processing
Business Service Arrangement Selection

3a. Retrieve and Validate Issuer Card Program Identifier and Business Service Arrangement
Participation (Standard Process)
3b. Retrieve and Validate Issuer Card Program Identifier and Business Service Arrangement
Participation (Central Acquiring Process)
Global Clearing Management System determines whether Central Acquiring logic applies to
an intra-European or inter-European transaction by comparing the acquiring BIN country code
(found in table IP0041T1) with the merchant country code (found in DE 43 [Acceptor Name/
Location], subfield 6 [Acceptor Country Code] of the transaction). If these country codes are
the same, the Standard Process (defined in Step 3a above) applies. If the country codes are
not the same, the Central Acquiring Process applies, as defined in this subsection.
Business Service Arrangement Validation

4. Validate MTI/Function Code/Processing Code/Reversal Indicator Combination
5. Validate MTI/Function Code/Message Reason Code combination
6. Determine whether IRD validation is required for the transaction
IRD Validation
7. Validate MTI/Function Code/Processing Code/Reversal Indicator combination for the IRD
8. Validate product codes
9. Validate AB programs
10. Validate transaction currency
11. Determine whether the issuer account range is exempt from Central Acquiring
The following diagrams depict the flow:

Business service
Data and message content validation

Business service
Business service arrangement selection and validation

Business service
Data and message content validation by Global Clearing Management System
IRD validation
Data and message content validation by Global Clearing Management System

These steps describe the process of validating the data and message content.
Step 1: validate the elements used in the selection process

Certain elements must be present and valid in each message to begin the process of selecting
the card program identifier and business service arrangement. These are the elements used to

Business service
Step 1a: validate format requirements
validate the qualification criteria for card program identifiers and business service
arrangements.
The format requirements, syntax/attribute definitions, and content of these critical elements
are defined by Mastercard.
Step 1a: validate format requirements

Global Clearing Management System validates that all the elements necessary for selection are
present and valid using Table IP1102T1 Mandatory Field Edits.
The columns in the figure that follows show the elements used in the selection process. The rows
in this figure show whether each of these elements is mandatory, conditional, or optional for
each transaction function.
Table IP1102T1 format requirements for elements used in selection
If one of the elements shown in the previous figure is mandatory for a message but not present,
Global Clearing Management System rejects the message with the following error message
(where <fldname> represents the name of the missing element):
735 - <fldname> MUST BE PRESENT
Step 1b: validate syntax/attribute of selection elements

Global Clearing Management System edits the syntax/attribute requirements for all the
elements used in the selection process.
• IP0006T1 Data Element Attributes
• IP0007T1 Data Element Subfield Attributes
• IP0008T1 PDS Attributes
• IP0009T1 PDS Subfield Attributes
Syntax/attribute requirements for elements used in the selection process4
4 All of the above elements may not be present in all messages.

Business service
Step 1c: validate content of selection elements
Name Element Syntax/Attribute Table ID

MTI First four positions n-4 IP0006T1
PAN DE 2 n…19; LLVAR IP0006T1
Processing Code DE 3 n-6 IP0007T1
Function Code DE 24 n-3 IP0006T1
Message Reason Code DE 25 n-4 IP0006T1
Acceptor Business Code DE 26 n-4 IP0006T1
Acquirer Reference Data DE 31 n-23; LLVAR IP0007T1
Acceptor Name/ DE 43 ans…99; LLVAR IP0007T1

Location
Transaction Destination DE 93 n…11; LLVAR IP0006T1

Institution ID Code
Transaction Originator DE 94 n…11; LLVAR IP0006T1

Institution ID Code
Message Reversal PDS 0025 an…7; TAGLLLVAR IP0009T1

Indicator
File Reversal Indicator PDS 0026 an…7; TAGLLLVAR IP0009T1
Business Activity PDS 0158 ans…30; TAGLLLVAR IP0009T1
Settlement Method PDS 0165 ans...30; TAGLLLVAR IP0009T1

Indicator
Step 1c: validate content of selection elements

Global Clearing Management System edits the content of the elements to ensure the values
submitted are valid system values.
Name Element Table Name Table ID

PAN DE 2 Issuer Account Range Table IP0040T1
Processing Code DE 3, subfield 1 DE 3 Processing Code, subfield 1 IP2048T1

Cardholder Transaction Type
Cardholder From DE 3, subfield 2 DE 3 Processing Code, subfield 2 IP2054T1

Account Cardholder From Account Type
Code

Business service
Step 2: determine whether the transaction requires business service processing
Name Element Table Name Table ID

Cardholder To Account DE 3, subfield 3 DE 3 Processing Code, subfield 3, IP2055T1
Cardholder To Account Type
Code
Acceptor Business DE 26 Acceptor Business Codes (MCCs) IP0075T1

(AB) Code5
Acquirer Reference ID DE 31, subfield 2 BIN Table IP0041T1
Acceptor Country DE 43, subfield 6 Country Codes Table IP0028T1

Code
Transaction DE 93 Expanded Customer ID Master IP0072T1

Destination Institution Table
ID Code
Transaction Originator DE 94 Expanded Customer ID Master IP0072T1

Institution ID Code Table
Message Reversal PDS 0025 PDS 0025 Message Reversal IP2059T1

Indicator Indicator, subfield 1 Message
Reversal Indicator
The IP2nnnT1 series tables contain valid values based on card program identifier/business
service arrangement combination. They contain some entries for which the Card Program
Identifier field contains all spaces and the Business Service Arrangement Type and Business
Service ID fields contain all zeros. These entries represent the default valid values. At this stage
of validation, when Global Clearing Management System is trying to ensure that all of the
mandatory fields are present and contain valid values, Global Clearing Management System
uses these default valid values.
Later, after Global Clearing Management System assigns a specific card program identifier/
business service arrangement combination, Global Clearing Management System may perform
edits that require a specific subset of valid values depending on the business service. For these
types of edits, Global Clearing Management System uses the IP2nnnT1 table entries that
contain specific values in the Card Program Identifier, Business Service Arrangement Type, and
Business Service ID fields.
Step 2: determine whether the transaction requires business service processing

Not all messages require business service processing. Table IP0092T1 identifies the transaction
functions that are eligible for business service processing. If the switch in the table is equal to Y
for the transaction function, Global Clearing Management System performs business service
processing.
Mastercard defines the following as the specific transaction functions that are eligible.
5 The table includes acceptor business codes that are active and life cycled. If the AB code provided by the customer is
in life cycle status, First Presentment/1240 non-reversal messages will be rejected.

Business service
Step 3: business service arrangement selection
MTI Function Code Description Requires Business Service

(DE 24) Processing Switch
1240 200 First Presentments Y
1644 695 File Trailer N
1644 696 Financial Detail Addendum (inherits N

business service from associated First
Presentment)
1644 697 File Header N
1442 450, 453 First Chargebacks Y
1240 205, 282 Second Presentments Y
1442 451, 454 Arbitration Chargebacks Y
1644 603 Retrieval Requests Y
1740 700, 780, 781, Fee Collections Y

782, 783
1740 790 Fee Collection Fund Transfer Y
Step 3: business service arrangement selection

There are two processes for selecting business service arrangements.
Step 3a (standard process): retrieve and match card program identifier and business service
arrangement participation
Global Clearing Management System retrieves the card program identifier and business service
arrangement participation information for both customers in the message.
To Retrieve Card Program Identifier Use Element Table Name Table ID

and Business Service Arrangement
Participation Combinations for the…
Issuer (applies to Presentments, DE 2 (expanded to Issuer Account Range Card IP0090T1
Chargebacks, and Fee Collection 19 positions) Program Identifier and Business
Retrieval Fee Billing messages) Service Arrangement Participation
Acquirer (applies to Presentments, DE 31, subfield 2 Acquiring BIN Card Program IP0091T1
Chargebacks, and Fee Collection Identifier and Business Service
Retrieval Fee Billing messages) Arrangement Participation

Business service
Step 3b (central acquiring process): retrieve and validate issuer card program identifier and
business service arrangement participation

Receiver (applies only to Fee Collection DE 93 (expanded Customer Business Service IP0056T1
messages other than Fee Collection to 11 positions) Arrangements
Retrieval Fee Billing)
Sender (applies only to Fee Collection DE 94 (expanded Customer Business Service IP0056T1
messages other than Fee Collection to 11 positions) Arrangements
Retrieval Fee Billing)
Using the tables listed above, Global Clearing Management System finds all card program
identifier/business service arrangement combinations in common between the two customers.
If none are in common, Global Clearing Management System rejects the transaction.
If the two customers have one or more card program identifier/business service arrangement
combinations in common, Global Clearing Management System evaluates each card program
identifier/business service arrangement combination that is in common between the customers
against the characteristics of the transaction. This process begins with Step 4 as described in
the Business Service Arrangement Validation subsection later in this section. If one arrangement
fails the validation, Global Clearing Management System returns to Step 3a to evaluate the
next higher priority issuer card program identifier/business service arrangement combination.
Central acquiring logic applies only to presentments, chargebacks, and ATM withdrawal
transactions for which the issuer, the acquirer, and the acceptor are in the Europe region.
Central acquiring logic does not apply to manual cash advance transactions, balance inquiries,
PIN unlock, or PIN change.
For central acquiring, the acquiring bank identification numbers (BINs) do not show all the
relevant intracountry business service arrangements in table IP0091T1. Such an approach
would be too restrictive for acquirers as they would need to wait until they were set up in table
IP0091T1 for a new intracountry arrangement before they could successfully submit
transactions in that market. Therefore, for central acquiring situations, Global Clearing
Management System considers only the issuing account range participation as defined in table
IP0090T1.
Global Clearing Management System determines whether central acquiring logic applies to an
intra-European transaction by comparing the acquiring BIN country code (found in table
IP0041T1) with the merchant country code (found in DE 43 [Acceptor Name/Location], subfield
6 [Acceptor Country Code] of the transaction). If these country codes are the same, the
standard process (defined in Step 3a above) applies. If the country codes are not the same, the
central acquiring process applies, as defined in this subsection.

Business service
For the central acquiring process, Global Clearing Management System retrieves the card
program identifier and business service arrangement participation information for the issuer
only.

Issuer (applies to presentments and DE 2 (expanded to Issuer Account Range Card IP0090T1
chargebacks) 19 positions) Program Identifier and Business
Service Arrangement Participation
Global Clearing Management System then evaluates each card program identifier/business
service arrangement combination in which the issuer participates, in the sequence in which they
are provided in table IP0090T1, to determine whether the acquirer accepts the card program
identifier, and whether the geography and Central Acquiring permission are appropriate.
To determine whether the acquirer accepts the card program identifier of the card program
identifier/business service arrangement combination being evaluated, Global Clearing
Management System checks all the table IP0041T1 entries for the acquiring BIN. If the contents
of the Card Program Identifier field in any of the acquiring BIN table IP0041T1 entries match
the card program identifier of the card program identifier/business service arrangement
combination being evaluated, Global Clearing Management System considers the arrangement
eligible for further processing. Otherwise, Global Clearing Management System discards the
current arrangement and returns to Step 3b to evaluate the next higher priority issuer card
program identifier/business service arrangement combination.
NOTE: Table 94 is called only when the business service level equals 4 Intra or 3 Inter. It is not called for
M2M.
To validate the geography of the arrangement, Global Clearing Management System looks up
the issuer's card program identifier/business service arrangement combination in table
IP0094T1 Geographic Restrictions. Table IP0094T1 restricts business service arrangements at
either the country code level or the region level.
If table IP0094T1 has no entry for the card program identifier/business service arrangement
combination, Global Clearing Management System considers the card program identifier/
business service arrangement combination to have no geographic restrictions and, therefore, it
is eligible for further processing.
If table IP0094T1 has at least one entry for the card program identifier/business service
arrangement combination, the business service arrangement combination has at least one
geographic restriction. Global Clearing Management System evaluates each of these entries to
ensure that the transaction meets at least one of the table IP0094T1 geographic restrictions as
follows:

Business service
• If the table IP0094T1 entry contains a country code in the Country field, Global Clearing
Management System compares the merchant country code (found in DE 43, subfield 6 of
the transaction) with the Country field in table IP0094T1.
• If the table IP0094T1 entry contains a region code on the Region field, Global Clearing
Management System determines the region associated with the merchant country code of
the transaction and compares it with the Region field in table IP0094T1.
• If the merchant country or region matches the table IP0094T1 country or region, Global
Clearing Management System considers the card program identifier/business service
arrangement combination eligible for further processing.
• If none of the table IP0094T1 entries for the business service arrangement matches the
merchant country/region of the transaction, Global Clearing Management System discards
the current arrangement and returns to Step 3b to evaluate the next higher priority issuer
card program identifier/business service arrangement combination.
If the issuer arrangement being evaluated is not a Customer-to-Customer arrangement, Global
Clearing Management System evaluates the issuer card program identifier/business service
arrangement combination against the characteristics of the transaction. This process begins
with Step 4 as described in the Business Service Arrangement Validation subsection later in this
section.
If the arrangement fails the validation, Global Clearing Management System returns to Step 3b
to evaluate the next higher priority issuer card program identifier/business service arrangement
combination. If the issuer arrangement being evaluated is a Customer-to-Customer
arrangement, Global Clearing Management System continues its Central Acquiring process by
validating acquirer participation in this customer-to-customer business service arrangement.
Global Clearing Management System does this by looking up the combination of Acquirer
Reference ID, Customer-to-Customer business service arrangement, and card program
identifier in table IP0091T1.
If no matching entry is in table IP0091T1, the acquirer does not participate in the Customer-to-
Customer business service arrangement; therefore, it cannot be used. Global Clearing
Management System discards the current Customer-to-Customer business service
arrangement and returns to Step 3b to evaluate the next higher priority issuer card program
identifier/business service arrangement combination. If a matching entry is in table IP0091T1
for the Customer-to-Customer business service arrangement, Global Clearing Management
System continues its Central Acquiring process by validating Central Acquiring permission. To do
this, Global Clearing Management System looks up the issuer's Customer-to-Customer business
service arrangement in table IP0089T1 Business Service Switches.
• If the table IP0089T1 entry contains a Y in the Central Acquired Switch field, the Customer-
to-Customer business service arrangement cannot be used, because an appropriate
intracountry business service arrangement should be used instead for the centrally acquired
transactions. Therefore, Global Clearing Management System discards the current
Customer-to-Customer arrangement and returns to Step 3b to evaluate the next higher
priority issuer card program identifier/business service arrangement combination.
• If the table IP0089T1 entry contains an N in the Central Acquired Switch field, or table
IP0089T1 has no entry for the specified Customer-to-Customer business service

Business service
Global Clearing Management System validation of business service arrangement
arrangement, Global Clearing Management System evaluates this M2M business service
arrangement against the characteristics of the transaction beginning with Step 4, within the
Central Acquiring process. If current M2M fails validation, Global Clearing Management
System returns to Step 3B.
Global Clearing Management System validation of business service arrangement

Global Clearing Management System validates the qualification criteria for a card program
identifier/business service arrangement combination.
If the transaction does not meet all of the qualification criteria for the arrangement, including
criteria for the submitted IRD, Global Clearing Management System discards the current card
program identifier/business service arrangement combination and returns to Step 3 to evaluate
the next higher priority card program identifier/business service arrangement combination. This
process continues until the transaction qualifies for an arrangement, or there are no more
arrangements in common.
Global Clearing Management System evaluates business service arrangements according to the
sequence in which the entries appear in the optimized table IP0090T1, because the entries are
provided in this table in sequence by the correct priority. This process allows Global Clearing
Management System to select the most appropriate card program identifier/business service
combination for the transaction.
When the transaction satisfies all qualifying criteria for a card program identifier/business
service arrangement combination, including IRD criteria, Global Clearing Management System
assigns this information to the message in private data subelement (PDS) 0158 (Business
Activity).
NOTE: Global Clearing Management System evaluates all original and reversal financial transactions,
with the exception of global collection only transactions, against the qualification parameters for all
eligible card program identifiers and business service arrangements unless otherwise noted.
NOTE: Global collection only transactions bypass all qualification criteria except for Message Reason
Code validation. Selection of the card program identifier and business service arrangement for global
collection only transactions is based only on issuing account range and Acquirer Reference ID (or
sending and receiving customer ID) participation and priority, and message reason code validation.
When Global Clearing Management System is unable to select an arrangement for the message
or to validate the customer-submitted arrangement information in PDS 0158, Global Clearing
Management System rejects the message. Global Clearing Management System generates a
Message Exception/1644 message with an error code indicating the fields in error and the
reason for the error. Global Clearing Management System generates one Message Exception/
1644 message with one error code for each card program identifier and business service
arrangement combination evaluated (Or if IRD validation is required for the message, Global
Clearing Management System generates one Message Exception/1644 message with an error
code for each card program identifier/business service arrangement/IRD combination
evaluated).

Business service
Step 4: validate the message reason code and reversal indicator for the card program identifier/
business service arrangement combination
Step 4: validate the message reason code and reversal indicator for the card program
identifier/business service arrangement combination
In some messages, such as First Presentment/1240 messages, DE 25 (Message Reason Code) is
an optional field. If DE 25 is not present in the message, Global Clearing Management System
performs this step using spaces for the message reason code.
Global Clearing Management System first looks up the combination of card program identifier,
business service arrangement type, and business service ID in table IP0088T1 to determine
whether it is masked to another business service arrangement.
• If table IP0088T1 has no entry that matches all of these values, the business service
arrangement is not masked and Global Clearing Management System will perform all table
lookups using the actual card program identifier and business service arrangement values.
• If table IP0088T1 has an entry that matches all of these values, Global Clearing
Management System obtains the related masked card program identifier, masked business
service arrangement type, and masked business service ID and will perform table IP0097T1
and IP0098T1 lookups using these masked values instead of the actual card program
identifier and business service arrangement values.
Global Clearing Management System then looks up the combination of message type identifier
(MTI), function code, message reason code, card program identifier, business service
arrangement type, and business service ID, in table IP0097T1. When performing this lookup,
Global Clearing Management System uses the masked card program identifier and business
service arrangement values if table IP0088T1 indicates that the business service arrangement is
masked.
If table IP0097T1 has no entry that matches all of these values, Global Clearing Management
System discards the current arrangement and returns to Step 3 to select the next card program
If table IP0097T1 has an entry that matches all of these values, Global Clearing Management
System obtains the value in the table IP0097T1 Reversal Indicator field.
• If this value is B, the table IP0097T1 entry is valid for both reversal and non-reversal
transactions, and Global Clearing Management System continues processing with Step 5.
• If this value is R, the table IP0097T1 entry is valid only for reversal transactions. If the
transaction is a reversal, indicated by PDS 0025 (Message Reversal Indicator), subfield 1
(Message Reversal Indicator) being present in the transaction and containing a value of R,
Global Clearing Management System continues processing with Step 5. If the transaction is
not a reversal, Global Clearing Management System discards the current arrangement and
returns to Step 3 to select the next card program identifier/business service arrangement
combination.
• If this value is N, the table IP0097T1 entry is valid only for non-reversal transactions. If the
transaction does not contain PDS 0025, subfield 1 with a value of R, it is not a reversal and
Global Clearing Management System continues processing with Step 5. Otherwise, Global
Clearing Management System discards the current arrangement and returns to Step 3 to
select the next card program identifier/business service arrangement combination.

Business service
Global Clearing Management System first looks up the value in DE 3 (Processing Code), subfield
2 (Cardholder From Account Type Code) of the transaction in table IP2054T1 and obtains its
related masked value. The masked value is located immediately following the actual value.
Global Clearing Management System will perform table IP0098T1 and IP0052T1 lookups using
the masked DE 3, subfield 2 value in place of the actual DE 3, subfield 2 value.
Global Clearing Management System then looks up the combination of message type identifier
(MTI), function code, processing code, card program identifier, business service arrangement
type, and business service ID, in table IP0098T1. Global Clearing Management System uses the
masked DE 3 and masked business service arrangement values where appropriate.
combination.
Step 6: determine whether IRD validation is required for the transaction

Global Clearing Management System looks at the table IP0098T1 entry found in Step 5
validation and checks the Requires IRD Validation Switch field.
• If this field contains Y, Global Clearing Management System performs IRD validation
(beginning with Step 7) and determines the correct interchange fee using the IRD submitted
in PDS 0158 (Business Activity), subfield 4 (Interchange Rate Designator) of the transaction.
• If this field contains N, Global Clearing Management System performs IRD validation
(beginning with Step 8) and determines the correct interchange fee using an IRD value of
spaces.

Business service
Interchange rate designator (IRD) validation
Interchange rate designator (IRD) validation

The interchange rate designator (IRD) must be validated.
Step 7: validate the processing code and reversal indicator for the IRD
If IRD validation is not required for the transaction, Global Clearing Management System omits
Step 7 and continues processing with Step 8.
Otherwise, Global Clearing Management System looks up the combination of message type
identifier (MTI), function code, processing code, card program identifier, business service
arrangement type, business service ID, and interchange rate desigator (IRD), in table IP0052T1.
To perform this lookup, Global Clearing Management System uses
• the masked value for DE 3 (Processing Code), subfield 2 (Cardholder From Account Type
Code), as described in Step 5
• the actual (unmasked) values for the card program identifier/business service arrangement
combination, and
• The actual interchange rate designator in the IRD field.
identifier and business service arrangement combination.
combination.
Step 8: validate product codes for the IRD

Global Clearing Management System looks up the combination of card program identifier,
business service arrangement type, business service ID, and interchange rate designator (IRD) in
masked business services and interchange rate designators table (IP0087T1) to see whether it
is masked to another business service arrangement and IRD.
Spaces are used in the IRD field for look-up when IRD validation is not required as described in
Step 6.

Business service
Step 8: validate product codes for the IRD
• If there is no entry in table IP0087T1 that matches all of these values, the business service
arrangement is not masked and Global Clearing Management System performs table
IP0096T1 look-up using the actual card program identifier, business service arrangement
type, business service ID, IRD, and Global Clearing Management System product ID values.
• If there is an entry in table IP0087T1 that matches all of these values, Global Clearing
Management System obtains the related masked card program identifier, masked business
service arrangement type, masked business service ID, masked interchange rate designator,
and Global Clearing Management System product ID and performs table IP0096T1 look-up
using these masked values instead of the actual card program identifier, business service
arrangement, and IRD values.
NOTE: Product code validation process is bypassed when the message is a life cycle transaction and
the product reassignment switch on table IP0040T1 is set to Y or the message is a first presentment
and the first presentment reassignment switch on table IP0040T1 is Y.
Global Clearing Management System looks up the value in DE 2 (Primary Account Number) of
the transaction in table IP0040T1 by finding the table entries for which the DE 2 PAN falls
within the issuer account range: low and issuer account range: high values in table IP0040T1.
There may be more than one entry in table IP0040T1 for the issuer account range. Global
Clearing Management System chooses the table IP0040T1 entry for which the Card Program
Identifier matches the card program identifier of the card program identifier/business service
arrangement combination being evaluated. From this table IP0040T1 entry, Global Clearing
Management System obtains the related Global Clearing Management System Product ID for
use in table IP0096T1.
The product class feature provides the ability to vary interchange rates by product grouping,
while maintaining common interchange structures. The product class override indicator is used
in the interchange product override functionality. Override of interchange rates by product code
is accomplished by assigning a product class override indicator to one or more product codes
that would be associated with a given interchange rate value.
An example would be product class override indicator MCC (Consumer) being used to indicate a
specific rate for a given IRD and product class override indicator. This product class override
indicator MCC would be used for product codes MDS, MDH, MCE, MCC, MCG, MPL, and MDP,
thereby avoiding the repetition of each of these product code rates in the appropriate tables in
the member profile extract (MPE). This helps Mastercard to limit the number of entries in the
MPE tables, reducing the delivery time to our customers.
Please refer to the IPM Clearing Formats manual to learn about the product class override
indicator associated with each product code.
business service arrangement type, business service ID, IRD, and Global Clearing Management
System product ID, in table IP0096T1. To perform this lookup, Global Clearing Management
System uses
• the actual (unmasked) values for the card program identifier/business service arrangement
combination or use masked values, if found

Business service
Step 9: validate AB programs for the IRD
• the interchange rate designator in the IRD field (if IRD validation is required), or a space in
the IRD field (if IRD validation is not required), as described in Step 6, and
• the Global Clearing Management System Product ID from table IP0040T1 in the product ID
field.
IF… THEN…
There is no entry in table IP0096T1 that matches Global Clearing Management System discards the
all the values mentioned in the previous bullet list current business service arrangement and returns
to Step 3 to select the next card program
identifier/business service arrangement
combination.
There is an entry in table IP0096T1 that matches Global Clearing Management System proceeds to
all the values mentioned in the previous bullet list Step 9 to continue validating the IRD.
There is an entry in table IP0096T1 that matches Global Clearing Management System discards the
all the values mentioned in the previous bullet list, current business service arrangement and returns
and to Step 3 to select the next Card Program
Identifier/Business Service Arrangement
• the Card Program Identifier associated with
combination. This is because ATM transactions
this entry is other than CIR,
involving Mastercard Electronic cards must qualify
• the transaction is an ATM transaction (DE 3 for a business service that supports Cirrus.
[Processing Code], subfield 1 [Cardholder
Transaction Type], value of 1), and
• at least one entry for this account range in
table IP0040T1 contains a Global Clearing
Management System Product ID of MCE, MEC,
or MBE (denoting a Mastercard Electronic
account range).
Step 9: validate AB programs for the IRD

Global Clearing Management System looks up the value in DE 26 (Acceptor Business Code/
MCC) of the transaction in table IP0075T1. There may be more than one entry in table
IP0075T1 for the DE 26 value.
For each entry in table IP0075T1 applicable to the DE 26 value, Global Clearing Management
System obtains the related acceptor business (AB) program for use in table IP0095T1.
Global Clearing Management System then looks up the combination of card program identifier,
business service arrangement type, business service ID, interchange rate designator (IRD), and
acceptor business (AB) program, in table IP0095T1. As with Step 8 (Validate product codes for
the IRD), GCMS searches for a masked value in table IP0087T1. If found, Global Clearing
Management System uses masked card program identifier, masked business service
arrangement type, masked business service ID, and masked interchange rate designator if
found in step 8. Spaces are used in the IRD field for look up when IRD validation is not required
as described in Step 6.

Business service
Step 10: validate transaction currency for the business service
If there is no entry in table IP0087T1 that matches all of these values, the business service
arrangement is not masked, and the Global Clearing Management System performs table
IP0095T1 look-up using the actual card program identifier, business service arrangement type,
business service ID, IRD, and acceptor business (AB) program values.
System proceeds to Step 10 to continue validating the business service.
Otherwise, Global Clearing Management System returns to table IP0075T1 and obtains the
next table IP0075T1 entry for the DE 26 value and looks up its acceptor business (AB) program
and business service/IRD information in table IP0095T1.
If Global Clearing Management System does not find an entry in table IP0095T1 that matches
the business service arrangement/IRD and any one of the acceptor business (AB) programs in
the relevant table IP0075T1 entries, Global Clearing Management System discards the current
business service arrangement and returns to Step 3 to select the next card program identifier/
business service arrangement combination.
Step 10: validate transaction currency for the business service

Currently, Global Clearing Management System performs Step 10 only when both the issuer
and acquirer are in the Europe region. However, this functionality could be made available, if
needed, to customers in other regions.
business service arrangement type, and business service ID, in table IP0099T1. To perform this
lookup, Global Clearing Management System uses the actual (unmasked) values for the card
program identifier/business service arrangement combination.
• If table IP0099T1 has no entry for the business service arrangement, Global Clearing
Management System proceeds to Step 11 to continue validating the business service.
• If table IP0099T1 has an entry for the business service arrangement, Global Clearing
Management System obtains the value in the transaction currency code field and compares
it to DE 49 (Currency Code, Transaction) in the message.
If the transaction currencies match, Global Clearing Management System proceeds to Step 11
to continue validating the business service.
Otherwise, Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business service
arrangement combination.
Step 11: check for intracountry business service overrides

Currently, Global Clearing Management System performs Step 11 only when both the issuer
and acquirer are in the Europe region. However, this functionality could be made available, if
needed, to customers in other regions.
For intracountry business services, Global Clearing Management System looks up the
combination of business service arrangement type, business service ID, issuer account range:
low, and issuer account range: high, in table IP0093T1. To perform this lookup, Global Clearing
Management System uses

Business service
Enforcement of business service arrangements
• the actual (unmasked) values for the business service arrangement combination, and
• the issuer account range: low and issuer account range: high fields from the relevant table
IP0040T1 entry.
System continues processing as described in the Edits and Fee Assignment section of this
chapter.
If table IP0093T1 has an entry that matches all of these values and the Card Program Identifier
of the card program identifier/business service arrangement being validated is MSI (Maestro) or
CIR (Cirrus), Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business service
arrangement combination.
If table IP0093T1 has an entry that matches all of these values and the Card Program Identifier
being validated is other than MSI or CIR, Global Clearing Management System checks that the
issuing account range country code (found in table IP0040T1) and the merchant country code
(found in DE 43 [Acceptor Name/Location], subfield 6 [Acceptor Country Code] of the
transaction) are the same.
• If so, Global Clearing Management System continues processing as described in the Edits
and Fee Assignment subsection of this section.
• Otherwise, Global Clearing Management System discards the current business service
arrangement and returns to Step 3 to select the next card program identifier/business
service arrangement combination.
Enforcement of business service arrangements

Mastercard will enforce the use of the business service arrangement for First Presentment/
1240 and optionally life cycled transactions between acquirers and issuers.
If all customers in a country have agreed to participate in the pricing agreement, Mastercard is
obliged to ensure that applicable transactions receive that pricing.
The business service selection enforcement code will be set to F (business service arrangement is
mandatory for First Presentment/1240 messages) for designated business service
arrangements.
This means that First Presentment/1240 transactions occurring between an Acquirer Reference
ID and an issuer account range associated with the intracountry business service arrangements
whose business service selection enforcement code has been set to F (mandatory business
service arrangement) must be submitted for an interchange program that is valid for that
intracountry business service arrangement.
If Global Clearing Management System processes a First Presentment/1240 transaction
occurring between an acquirer and an issuer, and it is submitted with an IRD that does not
qualify for the intracountry business service arrangement but qualifies for a less restrictive
business service such as the regional business service arrangement, Global Clearing
Management System will reject the transaction with error codes

Business service
Default business service arrangements
• 2425: PDS 0158 (Business Activity), subfield 4 (Interchange Rate Designator) is not valid for
enforced business service arrangement and acceptance brand ID code, and
• 2451: submitted business service arrangement is not valid. Must be submitted for enforced
business service arrangement.
First Chargeback/1442, Second Presentment/1240, or Arbitration Chargeback/1442
transactions that contain an IRD that applies to the respective regional business service
arrangement will still be permitted.
The business service selection enforcement code does not apply to the following transactions:
• Fee Collection/1740 messages. Existing functionality as it pertains to Fee Collection/1740
messages remains unchanged.
• Global collection only (On-Us and intraprocessor) transactions
• Transactions qualifying for an intracountry business service arrangement submitted with an
airline acceptor business code (MCC in the range of 3000 to 3299)
Countries with established business service arrangements fall into one of two business service
arrangement categories: default or non-default.
Default business service arrangements

Intracountry business service arrangements have been set up in Global Clearing Management
System. These arrangements are established as default, which means that all acquiring BINs
and all issuing account ranges identified for this country are automatically included as
participants.
Their participation in the enforced intracountry business service arrangement program will be
finalized once the business service arrangement enforcement code has been updated from
space (default value, not a mandatory business service arrangement) to F (mandatory business
service arrangement).
Life cycle processing supported by Global Clearing Management System

Global Clearing Management System supports life cycle activity processing when changes are
made to certain system parameters or qualification parameters for card program identifiers,
business service arrangements, and interchange rate designators (IRDs). This allows reversals
and exception items such as chargebacks and retrievals to continue to be processed with the
original settings, while new activity (such as First Presentment-originals) is processed using the
new settings.
A life cycle indicator is associated with specific qualification parameters, which Global Clearing
Management System uses to determine the valid messages (MTI/function code/processing
code/reversal indicator combinations) for a given parameter. The life cycle indicator codes
associated with each parameter are as follows.
Code Description
A All transaction types are valid.

Business service
Code Description
L Only Life Cycle transactions are valid.
A life cycle indicator parameter exists in the following IPM MPE tables and associated
parameters.
Table ID Name Life cycle indicator added to parameter

IP0036T1 Default Business Service For combination of card program identifier/
business service arrangement type/business
service arrangement ID
IP0056T1 Customer Business Service For combination of card program identifier/

Arrangement Participation business service arrangement type/business
service arrangement ID/customer ID
IP0075T1 Acceptor Business Codes (MCCs) Acceptor Business Code
IP0075T1 Acceptor Business Codes (MCCs) Acceptor Business Program
IP0076T1 Mastercard Assigned IDs Mastercard Assigned IDs
IP0090T1 Issuer Account Range Card For combination of card program identifier/
Program Identifier and Business business service arrangement type/business
Service Arrangement Participation service arrangement ID/issuer account range-low/
issuer account range-high
IP0091T1 Acquiring BIN Card Program For combination of card program identifier/
Identifier and Business Service business service arrangement type/business
Arrangement Participation service arrangement ID/acquiring BIN
IP0096T1 Card Program Identifier/Product Global Clearing Management System Product ID

Restrictions
For combination of card program identifier/
service arrangement ID/interchange rate
designator
IP0094T1 Geographic Restrictions for Card Country Code

Program Identifier/Business
Service Arrangement
IP0094T1 Geographic Restrictions for Card Region

Program Identifier/Business
Service Arrangement

Business service
Table ID Name Life cycle indicator added to parameter

IP0095T1 Acceptor Business Program Acceptor Business (AB) Program
Restrictions (new)
service arrangement ID/interchange rate
designator
When a parameter has a life cycle indicator of L, only life cycle transactions, as defined by
Mastercard, are valid for the parameter value.
Example
A business service arrangement has the following setup for AB programs:
AB program setup for business service arrangement 4/123456
AB Program Life Cycle Indicator

V001 A = All
A001 L = Life Cycle Only
In the above example, the AB program value for A001 has a life cycle indicator value of L-life
cycle only. In this instance, Global Clearing Management System will accept transactions that
are defined as life cycle transactions only if the acceptor business code in DE 26 is assigned to
the A001 AB program.
The following table indicates the transaction types that are defined by Mastercard as life cycle
transactions:
MTI Function Code Processing Code Reversal Indicator

1240 200 All Processing Codes R
1240 205 All Processing Codes All Reversal Indicator values

Business service
Global Clearing Management System edits, fee assignments, and fee calculation
MTI Function Code Processing Code Reversal Indicator

This section describes Global Clearing Management System edits, fee assignments, and fee
calculation.
Edits
The IP2nnT1 series tables contain valid values based on card program identifier/business service
arrangement combination. After Global Clearing Management System assigns a specific card
program identifier/business service arrangement combination, Global Clearing Management
System may perform edits that require specific valid values depending on the business service.
For these types of edits, Global Clearing Management System uses the IP2nnnT1 table entries
that contain specific values in the card program identifier, business service arrangement type,
and business service ID fields. Valid-value edits that are not specific to a business service
arrangement are performed using the default values of spaces and zeros in the card program
identifier/business service arrangement combination fields.
Global Clearing Management System also performs other edits, depending on the business
service assigned, and does not use the IPM MPE for these edits.
If the transaction fails any edits, Global Clearing Management System rejects the transaction.
Otherwise, Global Clearing Management System continues processing and determines the fees
applicable to the transaction.
Fee assignment
Global Clearing Management System looks up the transaction and business service information
in table IP0052T1. Table IP0052T1 contains pointers to tables IP0053T1 and IP0057T1. Table
IP0053T1 contains the fee groups that are assigned to the transaction. Table IP0057T1
contains override pointers to table IP0053T1.
Global Clearing Management System already looked up the card program identifier, business
service arrangement type, business service ID, IRD, message type identifier (MTI), function code,
and processing code information in table IP0052T1, in step 7 of this process. Global Clearing
Management System now looks at the fee code pointer information in the table IP0052T1
entry.
If the IP0052T1 field Product Class: Acceptor Override Pointer contains all zeros, Global Clearing
Management System disregards it and instead looks up the value from table IP0052T1 Fee

Business service
Code Pointer in the Fee Code Pointer field in table IP0053T1. Global Clearing Management
System then calculates the fees as described in the Fee Calculation section of this article.
If the IP0052T1 field product class: acceptor override pointer contains a non-zero value, it
indicates that an override may exist for the interchange rate and represents a pointer to table
IP0057T1.
Global Clearing Management System searches table IP0057T1 in accordance with the pointer
obtained from table IP0052T1. Each pointer may have multiple entries. The multiple entries
represent a number of different override rates that can be applied. On the basis of a
predetermined hierarchy, Global Clearing Management System searches until the first matching
entry is found. If no match is found, no override applies.
The criteria combinations are listed below in hierarchical order of selection:
1. The Mastercard Assigned ID, in combination with the product class and MCC
2. The Mastercard Assigned ID, in combination with the product class and acceptor business
type
3. The Mastercard Assigned ID, in combination with the product class
4. The Mastercard Assigned ID, in combination with MCC
5. The Mastercard Assigned ID, in combination with the acceptor business type
6. The Mastercard Assigned ID
7. The product class, in combination with MCC
8. The product class, in combination with the acceptor business type
9. MCC
10. The acceptor business type
11. The product class
If Global Clearing Management System finds an entry in table IP0057T1 that matches the
combination of one of the criteria listed in the hierarchy above, Global Clearing Management
System then looks up the value from that table IP0057T1 entry’s fee code pointer in the fee
code pointer field in table IP0053T1. Global Clearing Management System then applies the
appropriate rate types and calculates the fees as described in the Fee Calculation section of this
manual.
If Global Clearing Management System does not find an entry in table IP0057T1 that matches
the combination of one of the criteria listed in the hierarchy above, Global Clearing
Management System uses the base rate. Global Clearing Management System then calculates
the fees as described in the Fee Calculation section of this manual.
A refund service fee on European commercial transactions is applied a fixed percentage of the
corresponding commercial purchase rate.
This will apply to all commercial refund transactions that are cleared within the European
business service agreements (BSAs) having a value of Y in the exception rate override switch
field in IPM MPE table IP0098T1.
Refunds on European commercial products will use the basis of product class override to look up
the percentage that will apply to the commercial purchase rate.

Business service
If no match is found, no override applies and the Global Clearing Management System uses the
base rate as the fixed percentage of the commercial purchase rate.
Fee calculation
Table IP0053T1 contains multiple entries for the same fee code pointer. Each entry contains the
payment party (issuer, acquirer, or internal entity), the interchange rate (if applicable) and rate
direction, the interchange unit fee (if applicable) and its direction, the currency code and
exponent for the unit fee (if applicable), and any minimum or maximum fee limits and direction.
NOTE:
The IPM MPE file does not provide the rates and fees for all business service arrangements, because
this information is proprietary. The business service arrangement and IRD parameters are stored in the
IPM MPE file, but the fee code pointer and product class: acceptor override pointer fields in table
IP0052T1 that normally point to the correct fee entries in tables IP0057T1, IP0053T1, or both, contain
all zeros.
The table IP0053T1 entries are grouped by rate type. For example, Rate Type 001 is the
interchange fee and Rate Type 014 is the first-level corporate incentive discount (currently
applies only to intra-European and inter-European transactions). For rate types other than 001,
Global Clearing Management System determines whether to apply the fees according to
internal programming logic. For example, Global Clearing Management System applies the Rate
Type 014 first-level corporate incentive discount only if the transaction is accompanied by the
required addendum elements. Participating customers understand the conditions in which the
various rate types apply to business service arrangements in which they participate.
The rate types are as follows:
• 000: Cash Advance Fee (applies to manual cash disbursement transactions)
• 001: Interchange Fee
• 002: Merchant Investment Fee
• 003: Pay by Account Rate Adjustment Increase
• 004: Pay by Account Rate Adjustment Decrease
• 010: IVA on interchange fee (specific to Mexico processing)
• 013: ATM Late Presentment Fee (Currently specific to Europe processing. Applies to non-
reversal First Presentment ATM transactions for which the transaction date is older than 45
days.
• 014: First-level Corporate incentive discount (applies when one corporate IRD can have
different rates, depending on the presence of valid addendum data. Currently specific to
Europe processing)
• 015: Purchase with Cash Back (applies only to the cash back portion of a purchase with cash
back transaction)
• 016: Rewards Program
• 017: Second-level Corporate Incentive discount (applies when the transaction qualifies for
neither the First-level Corporate incentive discount nor the U.K. Summary VAT Incentive

Business service
discount, but the acquirer provides information in PDS 0502 [Custom Identifier]. Currently
specific to Europe processing)
• 018: New UK Summary VAT Incentive Interchange (applies when the transaction does not
qualify for the First-level Corporate Incentive discount, but the acquirer submits the data
needed for Mastercard to generate the U.K. Summary VAT Invoice on behalf of the
merchant. Required data is
– PDS 0508 [Customer Code]
– PDS 0596 [Acceptor Tax ID], in which subfield 1 [Acceptor Tax ID] contains the correct tax
ID and subfield 2 [Acceptor Tax ID Provided Code] contains value Y
– PDS 0597 [Total Tax Amount]
– PDS 0600 [Acceptor Reference Number]
– PDS 0641 [Product Code]
– PDS 0642 [Item Description]
– PDS 0647 [Extended Item Amount], with a non-zero value, and
– PDS 0682 [Detail Tax Amount 1]).
• 019: Merchant Interchange
• 020: Europe Enhanced Value

Settlement service
Chapter 13 Settlement service

This chapter defines the settlement service, various settlement service levels, and how Global Clearing
Management System supports the settlement services.
Definition of settlement service.......................................................................................................................222

Calculating net positions............................................................................................................................. 223
Settlement service levels...................................................................................................................................225
Settlement service selection process..............................................................................................................226
Settlement service selection.......................................................................................................................227
Settlement service parameters..................................................................................................................228
Settlement service participation and criteria selection......................................................................... 229
Intracurrency settlement service selection...............................................................................................230
Regional settlement service selection....................................................................................................... 233
Settlement date cycle calculation................................................................................................................... 235
Fee calculation routines for settlement service levels..................................................................................236
System-provided data in PDS 0159 (Settlement Data).............................................................................237
Settlement service advisements......................................................................................................................238
Customer settlement advisements........................................................................................................... 238

Settlement service
Definition of settlement service
Definition of settlement service

Mastercard’s settlement services provide the method by which Mastercard and customers
transfer funds to complete settlement for clearing and billing activities.
A settlement service is a facility within which funds are exchanged between customers and
Mastercard to settle transaction and fee amounts Each settlement service supports a
reconciliation currency that Mastercard and its customers may exchange. Refer to the
Settlement Manual for details about each settlement service.
Reconciliation currency is the currency in which a customer is paid or pays for the settlement of
its activity. Reconciliation currency also is referred to as payment currency or settlement
currency.

Settlement service
Calculating net positions

This diagram shows how Mastercard settles transactions among four customers: A, B, C, and D.

Settlement service

Settlement service
Settlement service levels
Settlement service levels

Mastercard requires each customer to select the settlement service levels in which it wants to
participate and to maintain a settlement account in the appropriate currency. The following
explains settlement service functionality, which allows customers to customize settlement
processing criteria for their transaction data.
The Global Clearing Management System will determine the settlement service, account, and
associated currency for each payment party according to customer selected options.
Customers choose the settlement service levels and corresponding reconciliation currency that
they want to support their specific settlement needs. Customers optionally may designate their
participation in specific settlement services; however, all customers are required to participate in
at least one regional settlement service. Clearing activity between two customers usually is
settled at the lowest possible common settlement service level. If a customer pair does not
settle in a common settlement service, the customers settle at their respective regional
settlement service accounts. The defined regional default service for the customer will be used if
no other settlement service can be applied to the transaction.
Global Clearing Management System supports the settlement service levels listed in the
following table.
Settlement
Service Level Description
Bilateral Customers participating in a bilateral agreement instruct Mastercard to clear their
transactions through Global Clearing Management System applying all appropriate
business rules. The customers settle these transactions directly rather than through
the Mastercard Settlement Account Management (S.A.M.) system.
Intracurrency Customers participating in an intracurrency settlement service adhere to a common

settlement calendar, settlement cutoff, and reconciliation currency for their
transactions. Mastercard settles these transactions for both parties on the same
day. Interchange fees are calculated in the reconciliation currency, minimizing
currency conversion impacts to the customers participating in the intracurrency
settlement agreement.
Customers that participate in intracountry interchange may settle transactions
through intracurrency settlement services or regional settlement services.
Transactions that qualify for intracountry interchange, but not intracurrency
settlement service, are processed as regional settlement transactions; however,
intracountry interchange is still applied.
A customer ID may participate in multiple intracurrency settlement services. The
participating customers must all agree on one reconciliation currency for each
intracurrency service.
Intracurrency settlement is an optional settlement service, and Mastercard must
approve any agreements.

Settlement service
Settlement service selection process
Settlement
Service Level Description
Regional A settlement agreement involving customers that may settle in different currencies
and that may use different settlement banks. This is the default agreement; that is,
transactions settled by Mastercard that do not qualify for intracurrency settlement
are automatically settled in a regional settlement service. Transactions that qualify
for regional settlement are settled in U.S. dollars or a local currency approved by
Mastercard, at a settlement bank defined by Mastercard.
Each customer ID must participate in at least one regional settlement service. If a
customer participates in more than one regional settlement service, it must
designate one regional settlement service as the default service, with no selection
criteria. For the other regional settlement services, the customer must define
specific settlement service selection criteria to indicate the circumstances in which
Global Clearing Management System should select each of the other regional
services.
Base currency is the currency that Mastercard uses as the basis for settlement calculations. All
transaction currencies are converted against this currency when determining the customer
reconciliation amount in the reconciliation currency. Summing all reconciliation amounts in base
reconciliation currency will net to zero.
Customers may specify more than one account within each settlement service to segregate
settlement activity according to criteria within the transaction, such as card program, account
range, or BIN. However, each account must be in the currency supported by the agreement.
NOTE: The Global Settlement Services department must approve all settlement arrangements
requested by a customer.
Settlement service selection process

The hierarchy for settlement service selection is bilateral, intracurrency, then regional.
The settlement service selection process evaluates customer participation in this order. If no
intracurrency settlement service agreement exists in which both customers participate,
Mastercard assigns each payment party’s regional settlement service and account information.
Transactions are qualified for a settlement service agreement that is in effect at the time that
Global Clearing Management System processes the transaction. For financial exception items
(chargebacks, second presentments, and fee collections) this may result in the assignment of a
different settlement service from the time that Global Clearing Management System originally
processed the transaction as a first presentment.
If, during the settlement service selection process, it is determined that the transaction qualifies
for multiple settlement services within the same level, Global Clearing Management System will
use the parameters with the most specific matching criteria; otherwise, the parameters with
the most recent effective date and time are used.

Settlement service
Settlement service selection
To illustrate the settlement service selection process, assume that the following customers
participate in settlement service agreements, with no additional criteria specified, as shown in
the following table.
Customer Intracurrency Regional

001234 X X
005678 X X
009876 X
Assume that customers 001234 and 005678 participate in the same intracurrency settlement
agreement.
According to the information above, the following settlement services would be selected:
Transactions from 001234 to/from 005678⇛ Intracurrency settlement
Transactions from 005678 to/from 009876⇛ Regional settlement
Transactions from 009876 to/from 001234⇛ Regional settlement
Settlement service selection

Customers optionally may use the following elements to specify how Global Clearing
Management System should select the settlement service and associated account for their
submitted clearing data.
• PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)
• Account Range (DE 2 [Primary Account Number])
• DE 31 (Acquirer Reference Data), subfield 2 (Acquirer Reference ID)
• Issuing/Acquiring Activity (message type identifier [MTI] plus DE 24 [Function Code])
Settlement service selection criteria are communicated to Mastercard through the Net
Settlement Information Form (Form 0339). These options may be applied for either of the
Global Clearing Management System supported settlement service levels: intracurrency and
regional.
NOTE: Global Clearing Management System does not perform settlement service selection for Global
Collection Only transactions because these transactions are submitted for reporting purposes only.

Settlement service
Settlement service parameters
Settlement service parameters

Customers may use optional parameters to specify how Global Clearing Management System
should select the settlement account associated to the settlement service for their submitted
clearing data.
IPM Parameter Element Usage

Card Program Identifier PDS 0158 (Business If selected by the customer, this may be used for
Activity), subfield 1 settlement service/TAA selection.
(Card Program
Identifier)
Account Range Derived from DE 2 If selected by the customer, this may be used for
(Primary Account the settlement service/TAA selection.
Number [PAN])
This element identifies the account range
associated with the cardholder account number
of the transaction.
Acquiring BIN DE 31 (Acquirer If selected by the customer, this may be used for
Reference Data), settlement service/TAA selection.
subfield 2 (Acquirer
This element identifies the acquiring BIN
Reference ID)
associated with the acquirer of the transaction.
Issuing/Acquiring/Both Transaction Function If selected by the customer, this may be used for
Activity (MTI plus DE 24 settlement service/TAA selection.
[Function Code])
The transaction function is used to classify a
transaction as issuing and acquiring activity.
Fee collection messages are considered an
acquirer transaction for the sending ICA when
this option is used.
NOTE: The customer’s transfer agent (TA) may be the customer or a separate entity that the
customer authorizes to settle with Mastercard on its behalf.
A TAA is a combination of the customer’s transfer agent (TA) and the customer bank account
number.
The following is an example of the settlement service selection process. Assume both customers
participate in an intracurrency service using Canada Dollars (CAD) as the reconciliation currency.
Customer ID 001234 is both an issuer and an acquirer. This customer has criteria established for
the Intracurrency 1 settlement service. The customer chooses to settle only its issuing activity
submitted with an assigned card program identifier of Mastercard Credit (MCC). Customer ID
005678 is an issuer only and has not specified criteria in order for transactions to qualify in this
service.

Settlement service
Settlement service participation and criteria selection
The transaction is a First Presentment/1240 message and assigned a card program identifier of
MCC. The transaction is sent by customer ID 001234 and received by customer ID 005678.
Iss/Acq
Customer Settlement Service CPI Acct Rg Acq BIN Act TAA Txn Qualify
001234 Intracurrency 1 CAD MCC — — Issuing 11111 No
005678 — — — — 22222 Yes
Transaction meets criteria for each ✓ — — No — No

customer?
Global Clearing Management System determines the classification of acquiring activity or

issuing activity based on customer ID (sending or receiving) within the message:
• Sending: DE 94 (Transaction Originator Institution ID Code)
• Receiving: DE 93 (Transaction Destination Institution ID)
In first presentments the sending customer is identified as the acquirer and the receiving
customer is identified as the issuer.
In the example above, the transaction does not qualify for the service, because it did not meet
the criteria of customer ID 001234 that only its issuing activity should be settled within this
service. Since customer ID 001234 is sending the first presentment, it is acting in the capacity of
an acquirer.
In first chargebacks, the sending customer is identified as the issuer and the receiving customer
is identified as the acquirer.
In the example above, the transaction qualifies for the service, because it meets the customer's
criteria that only its issuing activity should be settled within this service. Since customer ID
001234 is sending the first chargeback, it is acting in the capacity of an issuer.
Settlement service participation and criteria selection

Customers designate new or changed settlement account information using the Net
Settlement Information Form (NSIF) (Form 0339). Customers may also select criteria by which
Mastercard will select an appropriate settlement service and transfer agent assignment for
their transactions.
These criteria will be on the NSIF. Selection criteria for existing settlement services or accounts
may be submitted using the NSIF. The Net Settlement Agreement (NSA) is in the Settlement
Manual.
The bilateral and intracurrency settlement agreement information is distributed to customers
through the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE).
Customers can use this information as the selection criteria in their own settlement service
selection process. For example, by using the selection criteria, customers determine when they
can submit chargeback transactions in their local currency as opposed to U.S. dollars.

Settlement service
Intracurrency settlement service selection

Global Clearing Management System will verify the possible intracurrency settlement services in
which both the sending and receiving customers participate. All criteria associated with each
customer’s participation are also used in the selection process.
The following information is applicable for customers participating in an intracurrency
settlement service agreement. Customers who do not participate in an intracurrency
settlement service agreement may disregard this section.
Intracurrency settlement service level specific features include
• a common settlement currency used for all payment parties
• a common settlement calendar used for all payment parties
• a common settlement cutoff(s) used for all payment parties
• a common settlement date interval used for all payment parties, and
• a common value date interval used for all payment parties.
Step 1: settlement service selection
Global Clearing Management System compares the possible intracurrency settlement services
in which both the sender and receiver participate to determine whether there are any common
intracurrency settlement service agreements, as follows:
• If the customer pair has only one common intracurrency settlement service agreement, that
service is selected and used in the subsequent validation process.
• If the customer pair has multiple common intracurrency settlement service agreements, the
common settlement service agreement with the most specific matching criteria is selected.
Otherwise, the common settlement service agreement with the most recent effective date is
selected and used in the subsequent validation process.
Example 1
Customer 001234 and customer 005678 both participate in intracurrency settlement
agreements with the specified criteria in the following table.
Settlement
Customer Service ID CPI Acct Rg Acq BIN Iss/Acq Act Effective Date
001234 Intracurrency 1 Not Not Not Not Specified 1 Dec 2003
Specified Specified Specified
Intracurrency 2 MCC Not Not Not Specified 15 May 2004

Specified Specified

Intracurrency 2 MCC Not Not Not Specified 15 May 2004

Specified Specified

Settlement service
Settlement
Transactions submitted between customer 001234 and customer 005678 with an assigned
card program identifier of MCC and processed on or after May 15th 2004, will be qualified for
the intracurrency 2 settlement agreement. These transactions could be qualified for either the
intracurrency 1 or the intracurrency 2 settlement service agreement. However, the intracurrency
2 agreement specifying all transactions with an assigned card program identifier of MCC
contains more specific criteria, and is thus the selected settlement service agreement.
Transactions submitted between customer 001234 and customer 005678 with an assigned
card program identifier other than MCC will be qualified for the intracurrency 1 settlement
agreement.
Transactions submitted between customer 001234 and customer 009012 do not have an
intracurrency settlement agreement in common and, therefore, would use the regional
settlement service selection.
Example 2
Customer 001234 and customer 005678 both participate in intracurrency settlement
agreements with the specified criteria in the following table.
Settlement
001234 Intracurrency 1 Not Not Not Not 1 Dec 2003
Specified Specified Specified Specified
Intracurrency 2 Not Not Not Not 15 May 2004

005678 Intracurrency 1 Not Not Not Not 1 Dec 2003

Intracurrency 2 Not Not Not Not 15 May 2004

Transactions submitted between customer 001234 and customer 005678 on or after 15 May
2004 could be qualified for either the intracurrency 1 or the intracurrency 2 settlement
agreement. There are no criteria for either service to help the system decide. Therefore, the
selection process will use the most recent effective date and qualify transactions between these
customers in the intracurrency 2 service.

Settlement service
The above example (example 2) is included to explain Global Clearing Management System
functionality. In reality, customers would add specific criteria to one of these settlement service
selection setups, or delete one, instead of defining two settlement services with no selection
criteria.
Step 2: settlement service and TAA selection
For each payment party (the sender and the receiver), identify all transfer agent assignments
that meet each customer’s criteria specified within the common settlement services identified
in step 1.
Step 2a: settlement service and issuer TAA selection
Settlement service is assigned according to one of the following:
• If there is only one intracurrency settlement service in common and only one TAA for each
payment party that matches the transaction data, Global Clearing Management System
assigns that settlement service and TAA combination to the transaction for each payment
party.
• If there are multiple settlement services and/or TAA combinations with customized
assignment criteria that match the transaction data, the issuing customer's assignment
that has the most specific criteria matching the transaction is used to determine the service
and the issuing customer TAA.
• If there are multiple TAA assignments for the issuing customer that match the transaction
data, the assignment with the most recent effective date is used.
Step 2b: acquirer TAA selection
Once the settlement service and TAA are assigned for the issuing customer, the acquiring
customer's TAA is selected from those identified within the selected settlement service that
match the transaction criteria:
• If there is only one TAA for the acquirer within the selected settlement service, that
assignment is used for the acquirer's settlement.
• If there are multiple TAA combinations with customized assignment criteria that match the
transaction data, the assignment that has the most specific criteria matching the
transaction is used to determine the acquiring customer's TAA.
• If there are multiple TAA assignments for the acquiring customer that match the transaction
data, the assignment with the most recent effective date is used.
Example
To illustrate the TAA selection process, assume that both customers participate in the
intracurrency 1 service and that customer 001234 is the issuing customer with the specified
criteria shown in the following table.

Settlement service
Regional settlement service selection
Settlement TAA Acct Iss/ Acq Effective

Service ID Customer and Cur CPI Acct Rg Acq BIN Act Date
Intracurrency 1 XXXX, Not Not Not
001234 HKD DMC Specified Specified Specified 1 Dec 2004
Intracurrency 2 YYYY, Not Not Not

001234 HKD MCC Specified Specified Specified 1 Jan 2004
Intracurrency 2 ZZZZ, MCC, MSI Not Not Not

001234 HKD Specified Specified Specified 1 Feb 2004
Intracurrency 1 AAAA, MCC, MSI Not Not Not

005678 HKD Specified Specified Specified 1 Mar 2004
Intracurrency 2 BBBB, Not Not Not

005678 HKD MCC Specified Specified Specified 1 Jan 2004
Intracurrency 2 CCCC, Not Not Not Not

005678 HKD Specified Specified Specified Specified 1 Feb 2004
Transactions submitted with a transaction currency of HKD that are assigned a card program
identifier of MCC will be assigned the settlement service ID intracurrency 2 for both customers,
and TAA of ZZZ for customer 001234 because it is the assignment with the most recent
effective date. Because the transaction meets both of the acquirer’s TAA criteria for the
intracurrency 2 agreement, the TAA of BBBB would be chosen because it has the acquirer’s
most specific criteria that match the transaction.
Step 3: transaction amount and fee calculation
The transaction amount is converted to the intracurrency account currency (reconciliation
currency), if necessary. Additionally, the interchange fees are calculated in the intracurrency
account currency (reconciliation currency).

Regional settlement services are qualified independently and do not require both the sender and
receiver to participate in the same regional level settlement service. If the transaction does not
qualify for intracurrency settlement, it is qualified for settlement at the regional level.
The regional settlement service level specific features include
• each regional service specifies a settlement calendar.
• each regional service specifies settlement cutoff time(s)
• each regional service specifies a settlement date interval, and
• each regional service specifies a settlement value date interval.
Step 1: settlement service and transfer agent assignment (TAA) selection

Settlement service
The settlement service selection process described in the previous section does not apply to
transactions processed at the regional settlement service level. Regional level services are
qualified independently for the sender and receiver against the customer's specified criteria, as
follows:
• If only one regional settlement service and TAA combination is established for a payment
party that matches the transaction data, Global Clearing Management System assigns that
TAA and account currency to the transaction.
• If multiple settlement services and/or TAAs are established with customized assignment
criteria for a payment party that matches the transaction data, Global Clearing
Management System assigns the settlement service and TAA combination with the most
specific criteria. If more than one settlement service and TAA combination have the same
level of specificity, the TAA with the most recent effective date is selected.
• The default settlement service and TAA are selected when no selection criteria are defined
that match the transaction.
Example 1
To illustrate the service selection process, assume that a customer participates in settlement
service agreements with the specified selection criteria shown in the following table.
Settlement TAA Acct and

Customer Service ID Cur CPI Acct Rg Acq BIN Iss/Acq Act
001234 Regional 1 XXXX, USD Not Not Not Specified Not Specified
Specified Specified
001234 Regional 2 YYYY, CAD MCC Not Not Specified Not Specified
Specified
Transactions submitted with an assigned card program identifier of MCC will be assigned the
settlement service ID regional 2 and account YYYY because it has the most specific criteria that
match the transaction. Transactions submitted with an assigned card program identifier other
than MCC would be assigned to the settlement service ID regional 1 and account XXXX.
Example 2
To illustrate the settlement service TAA account selection process, assume that a customer
participates in the regional settlement service agreements as specified in the following table.

Settlement service
Settlement date cycle calculation
Settlement TAA Acct and Iss/Acq

Customer Service ID Cur CPI Acct Rg Acq BIN Act Effective Date
005678 Regional 1 VVVV, USD MCC Not Not Issuing 1 Jan 2004
Specified Specified
Regional 1 XXXX, USD DMC Not Not Issuing 15 Jan 2004

Specified Specified
Regional 2 YYYY, CAD Not Not Not Acquiring 1 Jan 2004

Regional 2 ZZZZ, CAD Not Not Not Acquiring 15 Jan 2004

Regional 3 AAAA, USD Not Not Not Not 1 Jan 2004

The optional settlement service selection criteria defined above can have multiple occurrences
per customer and are used to determine or restrict settlement account selection. Each unique
grouping represents the criteria used to select a specific customer ID, TA, and TAA combination.
The more specific the criteria defined by the customer, the more combinations of customer ID,
TA, and TAA will exist.
Customer 005678 is an issuer or acquirer. In this example, all issuing transactions with a card
program identifier of MCC or DMC and a transaction currency of USD will be settled in USD
through the Regional 1 service. However, transactions with a card program identifier of MCC
will be settled using VVVV and transactions with DMC will be settled using account XXXX. All
acquiring transactions will be settled in CAD through the Regional 2 service in account YYYY
before 15 Jan 2004 and will be settled in account ZZZZ on or after 15 Jan 2004. All other
issuing transactions will settle in USD through the Regional 3 Service in account AAAA.
Step 2: transaction amount and fee calculation
The transaction amount is converted through U.S. dollars to the TAA account currency
(reconciliation currency). Interchange fees are calculated in U.S. dollars and converted to each
TAA account currency.
Settlement date cycle calculation

Once the appropriate settlement service has been identified for each payment party, the
settlement date is assigned.
The settlement date is the date on which the Mastercard Settlement Account Management
(S.A.M.) system determines the customers’ final net settlement positions and generates the
settlement advisements for customers and transfer agents.

Settlement service
Fee calculation routines for settlement service levels
A single transaction may qualify for a different regional settlement service for each payment
party, which may result in the use of a different settlement date for each customer.
Transactions qualifying for the same intracurrency agreements will always result in the same
settlement date for each customer. The settlement date rules include the following:
• If the settlement bank is closed, Global Clearing Management System will not assign that
date as a settlement date. For regional services, the U.S. settlement holidays are used.
• Settlement holiday dates are expressed in relation to Central Site time, from a St. Louis,
Missouri, USA perspective.
• Certain settlement agreements may optionally delay their settlement. Two methods are
used to delay settlement:
– Generate the settlement advisements a specific number of days after the transactions
have been processed. The delayed settlement advisements result in delayed funds
movement.
– Generate the settlement advisements as scheduled, but delay the funds movement by a
specific number of days after the advisement.
NOTE: In addition to the six primary clearing cycles, a seventh clearing cycle exists for Mexico domestic
switching transactions. For more information on the seven clearing cycles, refer to the Daily Clearing
Cycle Schedule section.
Fee calculation routines for settlement service levels

Global Clearing Management System uses the settlement service level to determine the
currency in which to calculate fees. The following table describes how Global Clearing
Management System calculates fees for each settlement service level.
Settlement
Service Level Fee Calculation Method
Intracurrency • Transaction amounts and fixed fees are converted to the reconciliation currency
(if necessary).
• Fees are calculated in the reconciliation currency.
• Fees are converted to U.S. dollars for reporting purposes.
Regional • Transaction amounts and fixed fees are converted to U.S. dollars (if necessary).
• Fees are calculated in U.S. dollars.
• Transaction amounts and calculated fees are converted to each customer's
reconciliation currency and remain in U.S. dollars for reporting purposes.

Settlement service
System-provided data in PDS 0159 (Settlement Data)
System-provided data in PDS 0159 (Settlement Data)

Global Clearing Management System creates PDS 0159 (Settlement Data) in IPM-format
messages sent to the receiving customer to provide reconciliation and settlement information
for each clearing transaction that has settlement impact. This element contains nine subfields.
PDS 0159 Data that GCMS will Provide Description

Settlement Service Transfer Agent ID Populated according to the Transfer Agent ID selected for the
Code receiving customer
Settlement Service Transfer Agent Populated according to the Transfer Agent Assignment bank
Account account number for the receiving customer
Settlement Service Level Code 1 = Regional
3 = Intracurrency
Settlement Service ID Code Populated according to the settlement service ID selected for
the receiving customer
Settlement Foreign Exchange Rate Class Populated according to the currency conversion rate type
Code used:
F = Fixed; indicates that a fixed rate was used to

convert from base currency to receiver’s payment
currency
M = Market; indicates that a market rate was used to

convert from base currency to receiver’s payment
currency
N = Not applicable; no conversion performed
Reconciliation Date Populated with the Global Clearing Management System

processing date (located in PDS 0158 [Business Activity],
subfield 5 [Business Date]) associated with the message
Reconciliation Cycle Populated with the Global Clearing Management System

processing cycle (located in PDS 0158 [Business Activity],
subfield 6 [Business Cycle]) associated with the message

Settlement service
Settlement service advisements
PDS 0159 Data that GCMS will Provide Description

Settlement Date Populated with the date on which net settlement positions
are determined. This date matches the date of the
corresponding Settlement Advisement generated from the
Mastercard Settlement Account Management (S.A.M.)
system.
If Global Clearing Management System assigns a settlement
service in which the customer does not provide the
settlement date, this field contains the appropriate
settlement service date, as calculated by Global Clearing
Management System for the receiving customer.
If Global Clearing Management System assigns a settlement
service in which the customer is required to provide the
settlement date, this field contains the customer submitted
settlement date.
This date is adjusted for each settlement service level and
settlement service ID.
Settlement Cycle Populated with the appropriate settlement service

settlement cycle determined by Global Clearing Management
System
Settlement service advisements

Mastercard offers settlement reporting to the customer, the transfer agent, or both. The
customer advisement provides a settlement report for each settlement date and settlement
service. The transfer agent advisement provides a settlement report for each settlement date
and settlement service and itemizes settlement positions by customer.
A unique settlement advisement is generated for each transfer agent assignment (TAA) within
a settlement service. If a customer has the same settlement account designated for multiple
intracurrency and regional settlement services, a unique settlement advisement is generated for
each settlement service.
Customer settlement advisements

Customers optionally receive settlement advisements for all settlement positions for clearing
activity resulting from one settlement service date and cutoff cycle.
Customer settlement advisements serve as notification to a customer of outstanding
settlement positions resulting from a settlement service cutoff. This either provides the
customer a method to ensure that appropriate funds are in place to effect settlement or
notifies the customer about funds that will be available.

Settlement service
Customer settlement advisements
NOTE: For more information about settlement advisements and the Net Settlement Information Form
(NSIF), refer to the Settlement Manual.

Currency conversion
Chapter 14 Currency conversion

This chapter describes the currency conversion process, including how Global Clearing Management
System calculates and rounds amounts during currency conversion.
Overview of currency conversion service performed during clearing process..........................................241

Amount and currency definitions............................................................................................................... 242
Rates used for currency conversion............................................................................................................242
Data elements calculated during currency conversion process..................................................................248
Currency conversion for first presentments qualifying for regional settlement service...................248
Acquirer side data elements........................................................................................................................248
Other acquirer calculation considerations: computed cross rates and fixed interchange............... 258
Issuer side data elements............................................................................................................................ 259
Rounding of Global Clearing Management System currency conversion............................................267
Customer currency conversion for chargebacks (all cycles)........................................................................269
Customer requirements for submitting first chargeback amounts.....................................................269
Acquirer processing of second presentments.......................................................................................... 273
Processing of pre-arbitration and arbitration case filings.....................................................................273
Currency conversion for settlement of fee collection messages................................................................275
Currency conversion for reversals.................................................................................................................... 275
Currency Update/1644-640 Messages..........................................................................................................276
T057 Currency Conversion Rate File..........................................................................................................276
Acquirer Currency Conversion Rate File..........................................................................................................280
Originating Institution Payment Transaction Currency Conversion Rate File......................................... 281
Clearing Detail File (IP755120-AA) to facilitate acquirer reconciliation.................................................. 282

Currency conversion
Overview of currency conversion service performed during clearing process
Overview of currency conversion service performed during clearing

process
Currency conversion is a service that Mastercard performs to convert transaction amounts to
cardholder billing amounts and reconciliation amounts whenever the transaction currency is
different from the currency of the cardholder or the currency of reconciliation.
This process enables customers to:
• Acquire transactions in multiple currencies and issue cards that are billed in currencies
preferred by cardholders. For each transaction, Mastercard converts the acquired transaction
amounts from the transaction currency to the issuer-designated cardholder billing currency.
• Settle in currencies that best align with local business practices of acquirers and issuers.
Mastercard buys and sells currencies to support settlement in multiple currencies for
customers. Mastercard uses currency conversion rates for calculating acquirer and issuer
reconciliation amounts.
Mastercard guarantees the Mastercard-Issued currency conversion rates (refer to definitions
that follow) for each supported currency.
The following are terms used in this manual.
Term Description
Base Amount Transaction amount converted to U.S.
dollars.
Computed Cross Rates An exchange rate between two non-U.S.
dollar currencies computed by reference to
the U.S. dollar.
Mastercard-Issued Cross Rates Buy, mid, and sell rates for certain non-
U.S. dollar currency pairs set by
Mastercard (Applies to regional
settlement service only).
Mastercard-Issued USD Rates Buy, mid, and sell rates against the U.S.
dollar set by Mastercard.
Reference Currency Reference currency is quoted as one unit
per a certain amount of foreign currency.
NOTE: Currency conversion and foreign exchange are used interchangeably in the context of the
information presented in this chapter.
Reconciliation and settlement are used interchangeably in the context of the information presented in
this chapter.

Currency conversion
Amount and currency definitions
Amount and currency definitions

Definitions of cardholder billing amount and transaction amount are defined here.
• Cardholder Billing Amount: The International Organization for Standardization (ISO) name
for DE 6. Although Mastercard adheres to the ISO name for this data element, the
cardholder billing amount is actually the transaction amount in the currency that has been
designated as the cardholder billing currency by the issuer, which Mastercard transmits to
the issuer in this data element. Issuers have the relationship with the cardholder and
determine the eventual billing to the cardholder.
• Transaction Amount: The ISO name for DE 4, in which Mastercard transmits the transaction
amount. The transaction amount is in the currency appearing on the Transaction Information
Document (TID) in a first presentment. If no currency is identified on the TID, the transaction
is deemed to have occurred in the currency that is legal tender at the point of interaction.
Refer to the Mastercard Dictionary on Mastercard Connect for other currency-related
definitions.
Rates used for currency conversion

Except as otherwise provided in the Mastercard Standards, Mastercard will convert all
transaction amounts processed through Global Clearing Management System into the
equivalent reconciliation currency amount for settlement. When necessary, Mastercard will
convert the transaction using the appropriate rates to calculate acquirer reconciliation,
cardholder biling, and issuer reconciliation amounts.
NOTE: There may be other arrangements defined for those customers participating in bilateral
agreements. For more information about participation in bilateral agreements, refer to the Settlement
Manual.
Mastercard-issued USD rates

The Mastercard-Issued USD Rates support currency conversion involving currencies that are
managed against the U.S. dollar. In this case, the U.S. dollar is considered as the reference
currency. With this manual, the Rate Class M (value M) description will indicate that a
Mastercard-issued USD rate was used in the currency conversion process (for example, to
convert from the transaction currency to the cardholder billing and/or reconciliation currency).
For all Mastercard-issued USD rates, the U.S. dollar is the reference currency whereby the rates
are quoted in units of foreign currency per U.S. dollar.
Mastercard-issued cross rates

The Mastercard-issued cross rates support currency conversion involving currencies that are
managed against currencies other than the U.S. dollar. For each cross rate, there is a non-U.S.
dollar reference currency (for example, EUR and GBP) whereby the cross rates are quoted in
units of foreign currency per reference currency. The Rate Class F (value F) will indicate that a
Mastercard-issued cross rate was used in the currency conversion process.
In addition to enhancing the global capabilities of the Mastercard Network, this rate class aids
Mastercard in complying with the following monetary policies.

Currency conversion
• European Monetary Union (EMU) regulations requiring conversion of currencies transitioning

to the euro at the fixed rate to the euro that is established by the EMU for the transition
period.
• Other policies as defined from time to time by the monetary authorities in the countries
where Mastercard does business and Mastercard has been informed of said policies.
The T057 production and T058 test bulk files contain the Currency Conversion Rate Detail
Records; Mastercard-issued cross rates (Rate Class F) and Mastercard-issued USD rates (Rate
Class M). For each Mastercard-issued rate, the reference currency is indicated in field 3 of the
T057 file.
Mastercard will communicate availability of any new Mastercard-issued cross rates through a
Global Operations Bulletin.
Global Clearing Management System selects the Mastercard-issued cross rates, class record
(Rate Class F) only, when the source and target currencies match the source and reference
currency pair identified in the rate record.
All other currency conversions occur using the Mastercard-Issued USD Rates, class records (Rate
Class M), for the source currency to the target currency. In cases where the target currency is
not USD, the source currency is converted to USD and then to the target currency (for example,
a computed cross rate).
Example
Assume that Global Clearing Management System processes a transaction in which
• transaction currency is GBP
• acquirer’s reconciliation currency is USD, and
• cardholder billing currency is EUR.
Also assume that a Mastercard-issued cross rate has been established for the currency pair
GBP: EUR and that EUR is the reference currency for this currency pair.
Global Clearing Management System will calculate:
• USD acquirer’s reconciliation amount using the GBP: USD Mastercard-Issued USD Rate.
• EUR cardholder billing amount using the GBP: EUR Mastercard-Issued Cross Rate.
Refer to examples further in this chapter for calculations.
Application of currency conversion rates

The Global Clearing Management System uses the currency conversion rates in effect at the
time of authorization for eligible transactions requiring currency conversions.
Under certain circumstances, transactions will not be eligible for use of the rates in effect at the
time of authorization. The following table provides an explanation of the special cases that can
apply.

Currency conversion
Special Case Description Impact

Special Case 1: Delayed clearing Transactions submitted for These transactions will not be
submissions clearing for a Central Site eligible for the rates effective at
Business Date more than 9 the time of authorization
calendar days (not including the
The Mastercard-issued rates as
original authorization day).
published in the Currency
Conversion Rate File T057 for the
current clearing processing day
will apply.
PDS 0015, subfield 1 (Currency
Conversion Date) = Date of
Currency Conversion Rate File
T057 for current clearing process
day.
Conversion Indicator) = Value 2
Special Case 2: Multiple Transaction contains multiple If the clearing record was
authorizations, one clearing authorizations, for example, an submitted within nine calendar
message initial authorization and days of the initial authorization,
subsequent incremental the Mastercard-issued rates as
authorizations. published in the Currency
Conversion Rate File T057 used
for the initial authorization will
apply.
T057 at the time of
authorization.

Currency conversion

Special Case 3: One There are multiple clearing If any of the clearing messages
authorization, multiple clearing messages associated with a were presented within nine
messages single authorization message. For calendar days of the
example, a transaction for GPB authorization, the Global
100 is authorized, but two Clearing Management System
messages are presented for will use the currency conversion
clearing: one for GBP 80 and one rates from the Currency
for GPB 20. Conversion Rate File T057 in
effect at the time of the
authorization.
T057 at the time of
authorization.
Conversion Indicator) = Value 1.
If a clearing record is submitted
after the nine calendar day (U.S.
Central date) period from
authorization, the Mastercard-
issued rates as published in
T057 on the day of clearing, will
apply for this clearing record.
day.
Special Case 4: Cleared, not Transaction was presented for The Mastercard-Issued rates as
authorized clearing without authorization published in the Currency
(that is, transaction was cleared Conversion Rate File T057 on the
but not authorized). day of clearing will apply.
day.

Currency conversion

Special Case 5: Partial The transaction was partially If any of the clearing messages
authorizations authorized. were presented within nine
calendar days of the
authorization, the clearing
system will use the currency
conversion rates from the
T057 in effect at the time of the
authorization.
T057 at the time of
authorization.
Conversion Indicator) = Value 1 .
Special Case 6: Specific MCCs, Transactions classified under At this time, all MCCs,
transaction types, and certain MCCs, authorization transaction types and
authorization types types or transaction types. authorization types for first
presentment transactions will
benefit from the rates effective
at the time of authorization.
Chargebacks and second
presentments will continue to use
the rates applicable at the time
of clearing.

Currency conversion

Special Case 7: Transactions Clearing transactions submitted These transactions will not be
submitted for clearing for a with an invalid trace ID and/or eligible for the rates effective at
Central Site Business Date within does not match an authorization the time of authorization, which
9 calendar days (not including the record. require the matching of the
original authorization day) but clearing record to the
are unmatched to authorization authorization record to
records. determine the applicable date of
the currency conversion rate.
Therefore, acquirers must submit
all clearing records with identical
trace IDs from the authorization
record.
day.
Additional information for special case 1: delayed clearing submissions

Transactions presented for clearing within 9 calendar days (not including the original
authorization day) and the Central Site Business Date will be eligible for the rate at the time of
authorization. See the chart below for the eligibility window.
Transaction eligibility window
And submitted for clearing for the Central Site

Transactions Authorized Between 00:00 St Louis Business Date will utilize the rate from the time
Time to 23:59 St. Louis Time of authorization
Sunday Tuesday (Authorization date+9)
Monday Wednesday (Authorization date+9)
Tuesday Thursday (Authorization date+9)
Wednesday Friday (Authorization date+9)
Thursday Saturday (Authorization date+9)
Friday Sunday (Authorization date+9)
Saturday Monday (Authorization date+9)

Currency conversion
Data elements calculated during currency conversion process
Example
Transaction A was authorized on Tuesday, 1 December 2020 at 23:00 St. Louis time.
Transaction B was authorized on Wednesday, 2 December 2020 at 01:00 St. Louis time. Both
Transaction A and B were submitted for the clearing Central Site Business Date of Friday, 11
December 2020.
Transaction A will not be eligible for the rate at the time of authorization because the
transaction was submitted more than 9 calendar days (not including the original authorization
day) (that is, Tuesday, 1 December 2020) and the Central Site Business Date (that is, Friday, 11
December 2020). Therefore, the Mastercard-issued rates as published in the Currency
Conversion Rate File T057 for the current clearing business day will apply to Transaction A.
Transaction B will utilize the rate at the time of authorization because the transaction was
submitted within 9 calendar days (not including the original authorization day) (that is,
Wednesday, 2 December 2020) and the Central Site Business Date (that is, Friday, 11
December 2020).
Data elements calculated during currency conversion process

Global Clearing Management System calculates a number of data elements for each
transaction during the currency conversion process to calculate issuer and acquirer reconciliation
amounts and cardholder billing amounts.
Currency conversion for first presentments qualifying for regional settlement service
This section provides details and some examples related to the currency conversion approach
used for transactions processed under a regional settlement service. To see a full list of the
currencies that Mastercard offers for regional settlement, refer to the Settlement Manual.
Acquirer side data elements

To calculate the acquirer settlement amount, Global Clearing Management System calculates
and uses various data elements.
• Transaction Amount: Each transaction is conducted in a currency agreed upon by a merchant
and a cardholder. The value of the transaction in the transaction currency is referred to as
the Transaction Amount.
• Total Acquirer Reconciliation Amount: The Transaction Amount is converted to acquirer
reconciliation currency using the applicable rate associated with the transaction currency and
the acquirer reconciliation currency. The Transaction Amount in acquirer reconciliation
currency is referred to as the Total Acquirer Reconciliation Amount.
Transaction Amount conversion flow

Currency conversion
• Fixed Interchange Amount: Fixed component of interchange fee applicable for a transaction
is referred to as Fixed Interchange Amount in fixed interchange amount currency. This portion
of the interchange fee does not change with the Transaction Amount. The Fixed Interchange
Amount is converted from fixed interchange currency to acquirer reconciliation currency.
• Variable Interchange Amount: Variable component of interchange fee applicable for a

transaction is referred to as Variable Interchange Amount. This amount is calculated in
transaction currency by multiplying the percentage Interchange Rate and the Transaction
Amount. The calculated Variable Interchange Amount is then converted from transaction
currency to acquirer reconciliation currency.
• Total Interchange Amount: Fixed Interchange Amount and Variable Interchange Amount in
acquirer reconciliation currency are added to calculate Total Interchange Amount in acquirer
• Acquirer Net Reconciliation Amount: Total Interchange Amount is subtracted/added from
Total Acquirer Reconciliation Amount to calculate Acquirer Net Reconciliation Amount in
acquirer reconciliation currency.
NOTE: Mastercard provides the T057 Currency Conversion Rate File, the Acquirer Currency Conversion
Files (TQQ4: Regional First Presentments, TQQ8: Regional Second Presentments, and TQX2:
Intracurrency Presentments), and the Clearing Detail File (IP755120-AA) to facilitate acquirer
reconciliation. The Acquirer Currency Conversion Rate File provides the effective currency conversion
rate of all possible ISO currency codes between the transaction currency code and the acquirer
reconciliation currency code and is available at the same time as the T057 file. The Clearing Detail File
provides transaction-level details for the acquirer after each clearing cycle. Details regarding all the
data elements provided in these files and how customers can register for them are provided at the end
of this chapter.
All above mentioned data elements are shown in the Clearing Detail File (IP755120-AA) as
follows.
Description Data Element/Private Data Subelement

Transaction Amount DE 4 (Amount, Transaction)
Total Acquirer Reconciliation Amount DE 5 (Amount, Reconciliation)
Total Interchange Amount in acquirer reconciliation PDS 0146 (Amounts, Transaction Fee), subfield 7
currency (Amount, Fee, Reconciliation)

Currency conversion
Description Data Element/Private Data Subelement

Effective Currency Conversion Rate: Transaction DE 9 (Conversion Rate, Reconciliation)
Amount to Acquirer Reconciliation Amount
Currency Conversion Date PDS 0015 (Clearing Currency Conversion
Identifier), subfield 1 (Currency Conversion Date)
Currency Conversion Indicator PDS 0015 (Clearing Currency Conversion
Identifier), subfield 2 (Currency Conversion
Indicator)
Timing of the applicable Mastercard-issued rates used in the clearing calculations will align with
the Mastercard-issued rates applied during the authorization of the transaction based on
transaction eligibility as described in section “Application of Currency Conversion Rates.”
The following example illustrates two methods that can be used in determining the applicable
currency conversion rate.
Example
An acquirer submits two transactions to Mastercard Clearing for GCMS processing date 3
December 2020 which were authorized successfully on 1 December 2020 at 17:00 St. Louis
time.
• Based on the nature of the transaction, Transaction A is eligible for use of the rates in effect
at the time of authorization for clearing.
• Based on the nature of the transaction, Transaction B is not eligible to use the rates in effect
at the time of authorization for clearing.
Acquirers can use the following methods to determine which effective date rates are applied for
currency conversion during clearing processing.
Acquirers that use the IP755120-AA Clearing Detail Report
For each transaction cleared, refer to PDS 0015 in the report to determine the date of the rate
file used by the Global Clearing Management System during clearing processing and the reason
why that date was used. In this example, PDS 0015 will contain the following:
Example
PDS 0015, Subfield

Transaction 1 PDS 0015, Subfield 2
Transaction A 201201 Value 1
Matched with authorization information and authorization
date rates applied for currency conversion.

Currency conversion
PDS 0015, Subfield

Transaction 1 PDS 0015, Subfield 2
Transaction B 201202 Value 0
Not Applicable (for example, transaction not eligible/
applicable for currency conversion rate effective at the time
of authorization) and GCMS Central site processing date
rates applied for currency conversion.
All other acquirers that reconcile using internal methods

For each transaction cleared, match with its corresponding authorization message. Acquirers
should determine the most effective method for matching; one approach would be to use the
Banknet Reference Number found in CIS DE 63, subfield 2.
If the transaction is eligible to use the rate in effect at the time of authorization, then use DE 16
of the corresponding authorization message to determine which day's rate file to use for
clearing message reconciliation.
If not, the rate files in effect on the clearing business processing date applies. The date in DE 16
is not used in this case.
Example
Transaction Value to Use Explanation

Transaction A 201201 from DE 16 The currency conversion rates in effect on 1 December 2020
will be applicable in clearing (even though the clearing
business processing date is 3 December 2020).
Transaction B Clearing business Because the transaction is not eligible to use the rates in
processing date 3 effect at the time of authorization, the currency conversion
Dec 2020 rates effective on the clearing business processing date will be
applied.
The following are examples showing currency conversion calculations on the acquirer side of
transactions with each using Mastercard-Issued USD Rates and Mastercard-Issued Cross Rates.
NOTE: For simplicity, all examples are presented with rounding to the second decimal point. To see
precise rounding conventions and calculations of the system, refer to the Rounding of Global Clearing
Management System Currency Conversion section of this manual.
Example 1: acquirers currency conversion examples for Point-of-Sale transactions,

transaction and reconciliation currency are the same
The following example illustrates currency conversion calculations for a point-of-sale (POS) card
transaction where the transaction currency and acquirer reconciliation currency are the same. In

Currency conversion
this case, the transaction currency and acquirer reconciliation currency are the Canadian dollar
(CAD). Other assumptions are listed as follows.
Assumptions
• Transaction Amount: CAD 50.00
• Acquirer Reconciliation Currency: CAD
• Fixed Interchange Amount: CAD 0.10
• Mastercard-Issued USD Rate (USD-CAD): 1 USD = 1.25 CAD; Reference Currency: USD
• Interchange Rate = 1.00%
Operation method using Clearing Detail File

The following table contains the transaction-level details through the Clearing Detail File.
Data Element/Private Data Subelement Value

DE 4 CAD 50.00
DE 5 CAD 50.00
PDS 0146, subfield 7 CAD 0.60

DE 9 1.0000
1. Obtain DE 4 and DE 9 from the Clearing Detail File.

2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Acquirer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
CAD 50.00 x 1.0000 = CAD 50.00
Operational method using acquirer Currency Conversion Rate File
Field 2 (Transaction Currency Field 3 (Acquirer Recon Currency Field 5 (Effective Currency
Code) Code) Conversion Rate)
CAD CAD 1.00
1. Locate the record in the Acquirer Currency Conversion Rate File where the Transaction
Currency matches the currency in field 2 and the Acquirer Reconciliation Currency matches
the currency in field 3 and extract the corresponding Conversion Rate in field 5.
Conversion Rate (field 5) = 1.00
2. Determine the total acquirer reconciliation amount (DE 5) by multiplying the transaction
amount (DE 4) by the conversion rate (field 5)
(field 5)

Currency conversion
CAD 50.00 x 1.0000 = CAD 50.00
Illustrative method with formulas

1. Total Acquirer Reconciliation Amount
NOTE: Since transaction currency and acquirer reconciliation currency are the same, Total Acquirer
Reconciliation Amount and Transaction Amount are equal.
Total Acquirer Reconciliation Amount = Transaction Amount = CAD 50.00

2. Variable Interchange Amount
NOTE: Since transaction currency and acquirer reconciliation currency are the same, Variable
Interchange Amount in acquirer reconciliation currency is same as the amount in transaction
currency.
Variable Interchange Amount in acquirer reconciliation currency = Variable Interchange

Amount in transaction currency = Transaction Amount x Interchange Rate
CAD 50.00 x 1.00% = CAD 0.50
3. Fixed Interchange Amount
NOTE: Since fixed interchange amount currency and acquirer reconciliation currency are the same,
Fixed Interchange Amount in acquirer reconciliation currency is same as the amount in fixed
interchange amount currency.
Fixed Interchange Amount in acquirer reconciliation currency = Fixed Interchange Amount in

fixed interchange amount currency = CAD 0.10
4. Total Interchange Amount
Total Interchange Amount in acquirer reconciliation currency = Variable Interchange Amount
in acquirer reconciliation currency + Fixed Interchange Amount in acquirer reconciliation
currency
CAD 0.50 + CAD 0.10 = CAD 0.60
5. Acquirer Net Reconciliation Amount
Acquirer Net Reconciliation Amount = Total Acquirer Reconciliation Amount – Total
Interchange Amount
CAD 50.00 – CAD 0.60 = CAD 49.40
Example 2: acquirers Point-of-Sale transactions (Mastercard issued rates), the

transaction currency and the reconciliation currency are different, the transaction
currency is the reference currency
The following example illustrates currency conversion calculations for a POS card transaction
where the transaction currency does not equal the acquirer reconciliation currency. In this case,
the transaction currency is in British pounds (GBP), and the acquirer reconciliation currency is in
Australian dollars (AUD).

Currency conversion
The calculations in this example would apply for any transaction where a Mastercard-Issued
Rate (USD and Cross Rate) and the transaction amount are in the Reference Currency (in this
case, GBP), and the reconciliation amount is not in the Reference Currency. This includes any
transactions where the transaction amount is in U.S. dollars, and the reconciliation currency is
something other than U.S. dollars, since the U.S. dollar is the Reference Currency for all
Mastercard-Issued USD Rates (Rate Class M currency pairs).
In such cases, Mastercard uses the currency conversion rate in field 7 of the T057 file (that is,
the buy rate) to convert from transaction currency to reconciliation currency. In the example
below, the GBP-AUD rate of 2.0000 AUD per 1 GBP represents the rate in field 7 of the Rate
Class F table in the T057 file. This same rate will also be seen in the corresponding matching
record in the Acquirer Currency Conversion Rate File delivered during the same period as the
T057 file and in DE 9 for the transaction as presented in the Clearing Detail File once the
transaction is processed.
Other assumptions are listed as follows.
Assumptions
• Transaction Amount: GBP 30.00
• Acquirer Reconciliation Currency: AUD
• Mastercard-Issued Cross Rate (GBP-AUD): GBP 1 = AUD 2.0000; Reference Currency GBP
• Fixed Interchange Amount = AUD 0.10
Operation method using Clearing Detail File

The following table contains the transaction level details through the Clearing Detail File.

DE 4 GBP 30.00
DE 5 AUD 60.00
PDS 0146, subfield 7 AUD 0.82

DE 9 2.0000

(DE 9)
GBP 30.00 x 2.0000 = AUD 60.00

Currency conversion
Operational method using acquirer Currency Conversion File

The following table contains the effective currency conversion rate in the Acquirer Currency
Conversion Rate File
GBP AUD 2.00
Currency (GBP) matches the currency in field 2 and the Acquirer Reconciliation Currency
(AUD) matches the currency in field 3 and extract the corresponding Conversion Rate in field
5.
2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying Transaction Amount
(DE 4) by Conversion Rate (field 5)
(field 5)
GBP 30.00 x 2.0000 = AUD 60.00

Total Acquirer Reconciliation Amount = Transaction Amount x Conversion Rate (GBP-AUD)
GBP 30.00 x GBP-AUD 2.0000 = AUD 60.00
Variable Interchange Amount in transaction currency = Transaction Amount x Interchange
Rate
GBP 30.00 x 1.20% = GBP 0.36
Amount in transaction currency x Conversion Rate (GBP-AUD)
GBP 0.36 x GBP-AUD 2.0000 = AUD 0.72

fixed interchange amount currency = AUD 0.10

Currency conversion

currency
AUD 0.72 + AUD 0.10 = AUD 0.82
Interchange Amount in acquirer reconciliation currency
AUD 60.00 – AUD 0.82 = AUD 59.18
Example 3: acquirers Point-of-Sale transactions (Mastercard issued rates), the

transaction currency and the reconciliation currency are different, the
reconciliation currency is the reference currency
where a Mastercard-Issued Rate was applied and the transaction currency does not equal the
acquirer reconciliation currency. In this case, the transaction currency is in Japanese yen (JPY),
and the acquirer reconciliation currency is in U.S. dollars (USD).
The calculations in this example would apply for any transaction where the Reconciliation
amount is in the Reference Currency (in this case, USD), and the Transaction Amount is not in
the Reference Currency (in this case, JPY).
In such cases, in calculating the acquirer reconciliation amount on transactions for which
Mastercard does offer a regional settlement currency, Mastercard uses the currency conversion
rate in field 9 of the T057 file (that is, the sell rate) to convert from transaction currency to
reconciliation currency. In the example below, the USD-JPY rate of 108.3300 JPY per 1 USD
represents the rate in field 9 of the Rate Class M table in the T057 file.
Otherwise, in calculating the acquirer reconciliation amount on transactions for which
Mastercard does not offer a regional settlement currency, Mastercard uses the currency
conversion rate in field 8 of the T057 file (that is, the mid rate) to convert from transaction
currency to reconciliation currency. In both cases, this same rate will also be seen in the
corresponding matching record in the Acquirer Currency Conversion Rate File delivered during
the same period as the T057 file and in DE 9 for the transaction as presented in the Clearing
Detail File once the transaction is processed.
Assumptions
• Transaction Amount: JPY 3,500
• Acquirer Reconciliation Currency: USD
• Mastercard-Issued USD Rate: USD 1 = JPY 108.3300; Reference Currency USD
• Fixed Interchange Amount = USD 0.15
Operation Method Using Clearing Detail File

The following table contains the transaction level details through the Clearing Detail File.

Currency conversion

DE 4 JPY 3,500
DE 5 USD 32.31
PDS 0146, subfield 7 USD 0.54

DE 9 0.009231

(DE 9)
JPY 3,500 x 0.009231 = USD 32.31
Operational method using acquirer currency conversion file
JPY USD 0.009231
Currency (JPY) matches the currency in field 2 and the Acquirer Reconciliation Currency
(USD) matches the currency in field 3 and extract the corresponding Conversion Rate in field
5.
2. Determine Total Acquirer Reconciliation Amount (DE 5) by multiplying Transaction Amount
(DE 4) by Conversion Rate (field 5)
(field 5)
JPY 3,500 x 0.009231 = USD 32.31

Total Acquirer Reconciliation Amount = Transaction Amount / Conversion Rate (USD-JPY)
JPY 3,500 / USD-JPY 108.3300 = USD 32.31
Rate
JPY 3,500 x 1.20% = JPY 42

Currency conversion
Other acquirer calculation considerations: computed cross rates and fixed interchange

Amount in transaction currency / Conversion Rate (USD-JPY))
JPY 42 / USD-JPY 108.3300 = USD 0.39

fixed interchange amount currency = USD 0.15
currency
USD 0.39 + USD 0.15 = USD 0.54
Interchange Amount in acquirer reconciliation currency
USD 32.31 – USD 0.54 = USD 31.77
Other acquirer calculation considerations: computed cross rates and fixed interchange
For transactions where a Mastercard Issued Rate is not applicable (that is, none of the
currencies are U.S. dollar or the currency pair is not a Mastercard Issued Cross Rate), the
Clearing system will perform currency conversion by going through the U.S. dollar and using two
Mastercard-Issued Rates to calculate a cross rate (computed cross rate).
First, the system will calculate a cross rate by dividing the currency conversion rate for the
reconciliation currency as published in field 7 of the T057 file by the currency conversion rate for
the transaction currency published in field 8. Then, this computed cross rate will be used to
multiply the transaction amount to obtain the reconciliation amount in the reconciliation
currency. Similarly, the computed cross rate will be used to convert the variable interchange
from the transaction currency to the reconciliation currency. The computed cross rate is also
provided in the Acquirer Currency Conversion Rate File. In addition, the Clearing Detail File
provides the computed cross rate for each transaction in DE 9 and can be used for
reconciliation.
Regarding fixed interchange, any time the fixed interchange currency is different from the
acquirer reconciliation currency, the currency conversion process will follow the same process as
described in the examples above where the fixed interchange amount will be converted as any
other transaction amount.

Currency conversion
Issuer side data elements

To calculate the issuer reconciliation and cardholder billing amounts, Global Clearing
Management System calculates various data elements.
• Transaction Amount: Each transaction is conducted in a currency agreed upon by a merchant
and a cardholder. The value of the transaction in the transaction currency is referred to as
the Transaction Amount.
• Initial Cardholder Billing Amount: This amount is calculated by converting Transaction
Amount from transaction currency to cardholder billing currency.
• Currency Conversion Assessment: Initial Cardholder Billing Amount is multiplied by the

Currency Conversion Assessment Rate (CCA Rate) to calculate the Currency Conversion
Assessment in cardholder billing currency. This amount is then converted to issuer
• Issuer Currency Conversion Amount: This amount is calculated in cardholder billing currency
by multiplying Initial Cardholder Billing Amount and Issuer Currency Conversion Rate (ICCR or
Cross Border Fee Manager Rate).
• Total Cardholder Billing Amount: This amount is calculated in cardholder billing currency by
adding Initial Cardholder Billing Amount and Issuer Currency Conversion Amount.
• Initial Issuer Reconciliation Amount: This amount is calculated by converting cardholder billing
amount based on the default cardholder billing currency to issuer reconciliation currency.
• Total Issuer Reconciliation Amount: This amount is calculated in issuer reconciliation currency
by adding Initial Issuer Reconciliation Amount and Currency Conversion Assessment in issuer
• Fixed Interchange Amount: Fixed component of interchange fee applicable for a transaction
is referred to as Fixed Interchange Amount in fixed interchange amount currency. This portion
of the interchange fee does not change with the Transaction Amount. The Fixed Interchange
Amount is converted from fixed interchange currency to issuer reconciliation currency.

Currency conversion
• Variable Interchange Amount: Variable component of interchange fee applicable for a

transaction is referred to as Variable Interchange Amount. This amount is calculated in
transaction currency by multiplying the percentage Interchange Rate and the Transaction
Amount. The calculated Variable Interchange Amount is then converted from transaction
currency to issuer reconciliation currency.
• Total Interchange Amount: Fixed Interchange Amount and Variable Interchange Amount in
issuer reconciliation currency are added to calculate Total Interchange Amount in issuer
• Issuer Net Reconciliation Amount: Total Interchange Amount in issuer reconciliation currency
is subtracted/added from Total Issuer Reconciliation Amount to calculate Issuer Net
Reconciliation Amount in issuer reconciliation currency.
The above-mentioned data elements are shown in the IPM File as follows.
Data Element/Private
Description Data Subelement Notes
Transaction Amount DE 4
Total Issuer DE 5 Inclusive of CCA if applicable

Reconciliation Amount
Total Cardholder Billing DE 6 Inclusive of Issuer Currency Conversion Rate (ICCR)

Amount Amount or Cross Border Fee Manager Amount if
applicable
Currency Conversion DE 9 (Conversion Rate, Effective conversion rate (inclusive of CCA if
Rate: Transaction Reconciliation) applicable)
Amount to Issuer
Currency Conversion DE 10 (Conversion Rate, Effective conversion rate (Inclusive of Issuer
Rate: Transaction Cardholder Billing) Currency Conversion Rate [ICCR] Amount or Cross
Amount to Cardholder Border Fee Manager Amount if applicable)
Billing Amount
Currency Conversion DE 111 (Amount,
Assessment in issuer Currency Conversion
cardholder billing Assessment)
currency
Total Interchange PDS 0146, subfield 7
Amount in issuer
reconciliation currency

Currency conversion
Description Data Subelement Notes
Currency Conversion PDS 0015 (Clearing
Date Currency Conversion
Identifier), subfield 1
(Currency Conversion
Date)
Currency Conversion PDS 0015 (Clearing
Indicator Currency Conversion
Identifier), subfield 2
Indicator)
For issuers using the T112 Bulk File Type to reconcile, the applicable currency conversion rate
and related data elements (for example, DE 9 [Conversion Rate, Reconciliation] and DE 10
[Conversion Rate, Cardholder Billing]) will be included in this file.
Timing of the applicable Mastercard-issued rates used in the clearing calculations will align with
the Mastercard-issued rates applied during the authorization of the transaction based on
transaction eligibility as described in the section titled "Application of Currency Conversion
Rates."
For issuers that want to determine the date of the rate file used by the Global Clearing
Management System during clearing processing for each transaction, and the reason why that
date was used, refer to PDS 0015. Below is an example of how PDS 0015 may be populated.
Example
An acquirer submits two transactions to Mastercard Clearing for GCMS processing date 3
December 2020 which were authorized successfully on 1 December 2020.
• Based on the nature of the transaction, Transaction A is eligible for use of the rates in effect
at the time of authorization for clearing processing.
• Based on the nature of the transaction, Transaction B is not eligible for use of the rates in
effect at the time of authorization for clearing processing.
In this example, PDS 0015 will contain the following:

Currency conversion
Examples
PDS 0015, subfield 1

Transaction Date) PDS 0015, subfield 2 (Currency Conversion Indicator)
Transaction A 201201 Value 1
(Matched with authorization information and
authorization date rates applied for currency
conversion.)
Transaction B 201202 Value 0

Not Applicable (for example, transaction not eligible/
applicable for currency conversion rate effective at the
time of authorization) and GCMS Central site
processing date rates applied for currency conversion.
The following are examples that illustrate how interchange, CCA, and ICCR or Cross Border Fee
Manager Rates are calculated throughout the transaction flow. For the specific currency
conversion rates for any transaction scenario, issuers can use the transaction IPM message, in
particular DE 9 and DE 10 as described above. The currency conversion rates in these data
elements will be the same, or derived from, the rates in the T057 file, which are wholesale
market rates.
Example 4: issuers currency conversion examples for Point-of-Sale transactions,

Mastercard-issued USD rates
The following example illustrates currency conversion calculations for a POS transaction where
the transaction currency does not equal the cardholder billing currency. In this case, the
transaction currency is in Mexican pesos (MXN), and the cardholder billing currency is in U.S.
dollars (USD). Other assumptions are listed as follows.
Assumptions
• Transaction Amount: MXN 180.00
• Cardholder Billing Currency Default: USD
• Issuer Reconciliation Currency: USD
• Mastercard-Issued USD Rate (USD-MXN): USD 1 = MXN 18.0000
• CCA Rate = 0.20%
• ICCR or Cross Border Fee Manager Rate = 0%
• Fixed Interchange Amount = USD 0.10
The following table contains the transaction level details through Mastercard's outbound IPM
file.

Currency conversion
Data Subelement Value Notes
DE 4 MXN 180.00
DE 5 USD 10.02 Inclusive of CCA if applicable
DE 6 USD 10.00 Inclusive of Issuer Currency Conversion Rate (ICCR)

Amount or Cross Border Fee Manager Amount if
applicable
DE 9 0.055667 Effective conversion rate (inclusive of CCA if
applicable)
DE 10 0.055556 Effective conversion rate (Inclusive of Issuer
Currency Conversion Rate [ICCR] Amount or Cross
Border Fee Manager Amount if applicable)
DE 111 USD 0.02
PDS 0146, subfield 7 USD 0.20
Operational method
1. Obtain DE 4, DE 9 and DE 10 from the outbound IPM file.
2. Determine Total Cardholder Billing Amount (DE 6) by multiplying DE 4 and DE 10.
Total Cardholder Billing Amount (DE 6) = Transaction Amount (DE 4) x Conversion Rate (DE
10)
MXN 180.00 x 0.055556 = USD 10.00 (Inclusive of Issuer Currency Conversion Rate [ICCR]
Amount or Cross Border Fee Manager Amount if applicable)
3. Determine Total Issuer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Issuer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
MXN 180.00 x 0.055667 = USD 10.02006, rounded to USD 10.02 (inclusive of CCA if
applicable)

Rate
MXN 180.00 x 1.00% = MXN 1.80
Variable Interchange Amount in issuer reconciliation currency = Variable Interchange
Amount in transaction currency / Conversion Rate (USD-MXN)
MXN 1.80 / USD-MXN 18.0000 = USD 0.10

Currency conversion
NOTE: Since fixed interchange amount currency and issuer reconciliation currency are the same,
Fixed Interchange Amount in issuer reconciliation currency is same as the amount in fixed
Fixed Interchange Amount in issuer reconciliation currency = Fixed Interchange Amount in

fixed interchange amount currency = USD 0.10
Total Interchange Amount = Variable Interchange Amount + Fixed Interchange Amount
USD 0.10 + USD 0.10 = USD 0.20
4. Initial Cardholder Billing Amount
Initial Cardholder Billing Amount in cardholder billing currency = Transaction Amount /
Conversion Rate (USD-MXN)
MXN 180.00 / USD-MXN 18.0000 = USD 10.00
5. Currency Conversion Assessment
Currency Conversion Assessment in cardholder billing currency = Initial Cardholder Billing
Amount x CCA Rate
USD 10.00 x 0.20% = USD 0.02
6. Issuer Currency Conversion Amount
Issuer Currency Conversion Amount in cardholder billing currency = Initial Cardholder Billing
Amount x ICCR or Cross Border Fee Manager Rate
USD 10.00 x 0.00% = USD 0.00
7. Total Cardholder Billing Amount
Total Cardholder Billing Amount in cardholder billing currency = Initial Cardholder Billing
Amount + Issuer Currency Conversion Amount
USD 10.00 + USD 0.00 = USD 10.00
8. Initial Issuer Reconciliation Amount
NOTE: Since cardholder billing currency and issuer reconciliation currency are the same, Initial
Issuer Reconciliation Amount in issuer reconciliation currency is same as Initial Cardholder Billing
Amount in cardholder billing currency.
Initial Issuer Reconciliation Amount in issuer reconciliation currency = Initial Cardholder

Billing Amount in cardholder billing currency = USD 10.00
9. Currency Conversion Assessment in issuer reconciliation currency
NOTE: Since cardholder billing currency and issuer reconciliation currency are the same, Currency
Conversion Assessment in issuer reconciliation currency is same as Currency Conversion
Assessment in cardholder billing currency.
Currency Conversion Assessment in issuer reconciliation currency = Currency Conversion

Assessment in cardholder billing currency = USD 0.02
10. Total Issuer Reconciliation Amount
Total Issuer Reconciliation Amount = Initial Issuer Reconciliation Amount + Currency
Conversion Assessment in issuer reconciliation currency

Currency conversion
USD 10.00 + USD 0.02 = USD 10.02

11. Issuer Net Reconciliation Amount
Issuer Net Reconciliation Amount = Total Issuer Reconciliation Amount – Total Interchange
Amount in issuer reconciliation currency
USD 10.02 – USD 0.20 = USD 9.82
Example 5: issuers currency conversion examples, Point-of-Sale transactions,

Mastercard-issued cross rates
where the transaction currency does not equal the cardholder billing currency. In this case, the
transaction currency is in Polish zloty (PLN), and the cardholder billing currency is in euros (EUR).
Other assumptions are listed as follows.
Assumptions
• Transaction Amount: PLN 600.00
• Cardholder Billing Currency Default: EUR
• Issuer Reconciliation Currency: EUR
• Mastercard-Issued Cross Rate (EUR-PLN): EUR 1 = PLN 5.0000; Reference Currency is EUR
• ICCR or Cross Border Fee Manager Rate = 3.00%
• CCA Rate = 0.20%
• Fixed Interchange Amount = EUR 0.10
The following table contains the transaction level details through Mastercard’s outbound IPM
file.
DE 4 PLN 600.00
DE 5 EUR 120.24 Inclusive of CCA if applicable
DE 6 EUR 123.60 Inclusive of Issuer Currency Conversion Rate (ICCR)

Amount or Cross Border Fee Manager Amount if
applicable
DE 9 0.20040 Effective conversion rate (inclusive of CCA if
applicable)
DE 10 0.20600 Effective conversion rate (Inclusive of Issuer
Currency Conversion Rate [ICCR] Amount or Cross
Border Fee Manager Amount if applicable)
DE 111 EUR 0.24

Currency conversion
PDS 0146, subfield 7 EUR 1.54
Operational method
1. Obtain DE 4, DE 9, and DE 10 from the outbound IPM file.
2. Determine Total Cardholder Billing Amount (DE 6) by multiplying DE 4 and DE 10.
Total Cardholder Billing Amount (DE 6) = Transaction Amount (DE 4) x Conversion Rate (DE
10)
PLN 600.00 x 0.20600 = EUR 123.60 (Inclusive of Issuer Currency Conversion Rate [ICCR]
Amount or Cross Border Fee Manager Amount if applicable)
3. Determine Total Issuer Reconciliation Amount (DE 5) by multiplying DE 4 and DE 9.
Total Issuer Reconciliation Amount (DE 5) = Transaction Amount (DE 4) x Conversion Rate
(DE 9)
PLN 600.00 x 0.20040 = EUR 120.24 (inclusive of CCA if applicable)

Rate
PLN 600.00 x 1.20% = PLN 7.20
Variable Interchange Amount in issuer reconciliation currency = Variable Interchange
Amount in transaction currency / Conversion Rate (EUR-PLN)
PLN 7.20 / EUR-PLN 5.0000 = EUR 1.44
NOTE: Since fixed interchange amount currency and issuer reconciliation currency are the same,
Fixed Interchange Amount in issuer reconciliation currency is same as the amount in fixed
Fixed Interchange Amount in issuer reconciliation currency = Fixed Interchange Amount in

fixed interchange amount currency = EUR 0.10
Total Interchange Amount = Variable Interchange Amount + Fixed Interchange Amount
EUR 1.44 + EUR 0.10 = EUR 1.54
4. Initial Cardholder Billing Amount
Initial Cardholder Billing Amount in cardholder billing currency = Transaction Amount /
Conversion Rate (EUR-PLN)
PLN 600.00 / EUR-PLN 5.0000 = EUR 120.00
5. Currency Conversion Assessment

Currency conversion
Rounding of Global Clearing Management System currency conversion
Currency Conversion Assessment in cardholder billing currency = Initial Cardholder Billing

Amount x CCA Rate
EUR 120.00 x 0.20% = EUR 0.24
6. Issuer Currency Conversion Amount
Issuer Currency Conversion Amount in cardholder billing currency = Initial Cardholder Billing
Amount x ICCR or Cross Border Fee Manager Rate
EUR 120.00 x 3.00% = EUR 3.60
7. Total Cardholder Billing Amount
Total Cardholder Billing Amount in cardholder billing currency = Initial Cardholder Billing
Amount + Issuer Currency Conversion Amount
EUR 120.00 + EUR 3.60 = EUR 123.60
8. Initial Issuer Reconciliation Amount
NOTE: Since cardholder billing currency and issuer reconciliation currency are the same, Initial
Issuer Reconciliation Amount in issuer reconciliation currency is same as Initial Cardholder Billing
Amount in cardholder billing currency.
Initial Issuer Reconciliation Amount in issuer reconciliation currency = Initial Cardholder

Billing Amount in cardholder billing currency = EUR 120.00
9. Currency Conversion Assessment in Issuer Reconciliation Currency
NOTE: Since cardholder billing currency and issuer reconciliation currency are the same, Currency
Conversion Assessment in issuer reconciliation currency is same as Currency Conversion
Assessment in cardholder billing currency.
Currency Conversion Assessment in issuer reconciliation currency = Currency Conversion

Assessment in cardholder billing currency = EUR 0.24
10. Total Issuer Reconciliation Amount
Total Issuer Reconciliation Amount = Initial Issuer Reconciliation Amount + Currency
Conversion Assessment in issuer reconciliation currency
EUR 120 + EUR 0.24 = EUR 120.24
11. Issuer Net Reconciliation Amount
Issuer Net Reconciliation Amount = Total Issuer Reconciliation Amount – Total Interchange
Amount in issuer reconciliation currency
EUR 120.24 – EUR 1.54 = EUR 118.70

When Global Clearing Management System performs multiple currency conversion calculations
before deriving a final amount, Global Clearing Management System performs the calculations
on the interim amounts using the full six positions to the right of the decimal. Global Clearing
Management System determines the final/target amount by rounding the amount to the
currency exponent.

Currency conversion
The Member Parameter Extract (MPE) T067 (daily updates) and T068 (full file replacement),
table IP0017T1: Currency Code and Exponents table provide customers with currency codes and
associated currency exponents for each currency supported by Mastercard. The currency
exponent indicates the number of significant digits to the right of the decimal point that are
displayed when communicating amounts in the associated currency. This position (underlined in
the examples that follow) will be referred to as the minor currency unit position.
Examples of currency exponent positioning
Currency Description Currency Code Currency Exponent Currency Amount

Japanese Yen 392/JPN 0 0
U.S. Dollar 840/USD 2 0.00
Tunisian Dinar 788/TND 3 0.000
• If the number in the low order position is equal to or greater than 5, the number in the minor
currency position is increased by a value of 1 to round the amount. For example, 17.559048
results in 17.56.
• If the number in the low order position is less than 5, the low order positions are truncated
without rounding the amount. For example, 17.530011 results in 17.53.
Global Clearing Management System only rounds amounts to the number of positions to the
right of the decimal point specified by the currency exponent, once they are calculated in the
final (issuer/acquirer reconciliation currency, cardholder billing currency) currency, as shown
below:
• After Global Clearing Management System calculates the currency conversion assessment in
cardholder billing currency.
• After Global Clearing Management System completes the calculation of the total cardholder
billing amount (Inclusive of Issuer Currency Conversion Rate [ICCR] Amount or Cross Border
Fee Manager Amount if applicable).
• After Global Clearing Management System completes the calculation of acquirer and issuer
reconciliation amounts in acquirer/issuer reconciliation currency.
• After Global Clearing Management System completes the calculation of an interchange fee
in reconciliation currency.

Currency conversion

Customers must meet specific requirements for submission of chargeback amounts (including
currency conversion of chargeback amounts) depending on the phase of the chargeback life
cycle.
Customer requirements for submitting first chargeback amounts

These requirements apply to the amount that issuers may submit in first chargebacks.
• An issuer must not chargeback a transaction for an amount that exceeds the full amount of
the transaction presented by the acquirer. The only exception is when the disputed amount
must be converted to U.S. dollars, in which case, the chargeback may be for an amount
greater than the transaction amount originally presented by the acquirer.
• An issuer may chargeback a transaction for less than the full amount of the transaction.
• The issuer should include the amount resulting from a currency conversion assessment (if
applicable) in the chargeback amount that the issuer presents to Mastercard.
• Full chargebacks for ATM transactions (identified by a value of 01 in DE 3, subfield 1):
– May include the processing fee (less the decline fee).
– Should include the surcharge amount (access fee, direct charging fee, or convenience fee),
when applicable in DE 54 (Amounts Additional), subfield 2 (Additional Amount, Amount
Type), value 42. When DE 54 is in a chargeback message, the surcharge amount must be
provided in the same currency of the chargeback message as indicated in DE 49 (Currency
Code, Transaction).
– Should not include switch fees.
• Partial chargebacks for ATM transactions should not include
– transaction processing fees (including the decline fee)
– surcharge amounts (such as, ATM access fees, direct charging fees, or convenience fees),
or
– switch fees.
Customer requirements and guidelines for charging back a partial amount

The rules and guidelines that customers charging back a transaction for less than its full amount
must abide by are as follows.
To chargeback a transaction for an amount less than the full amount of the transaction,
customers should submit a First Chargeback/1442 message containing DE 24 (Function Code),
value 453. This identifies the first chargeback as a partial chargeback, which indicates that the
first chargeback amount differs from the original transaction amount. Customers must identify
subsequent second presentments and arbitration chargebacks as partial when the previous
transaction was a partial first chargeback or a partial second presentment. The customer must
include the partial currency conversion assessment in the chargeback amount.

Currency conversion
Customer requirements for charging back a purchase with cash back transaction
A purchase with cash back transaction is a Debit Mastercard® transaction in which a purchase
was conducted, and cash was dispensed by the acceptor at the point of interaction.
In the First Presentment/1240 messages, the total amount of the transaction (purchase plus
cash) must be submitted in DE 4 (Amount, Transaction). The cash back portion of the
transaction must be identified in DE 54 (Amounts, Additional), subfield 5 (Additional Amount,
Amount) in the same currency as the transaction amount contained in DE 4.
Customers should follow the chargeback procedures for Purchase with Cash Back transactions
described in Processing Chargeback Messages. To chargeback all or part of the purchase
amount but not the cash back amount of a purchase with cash Back transaction, the customer
must subtract the cash back portion from the cardholder billing amount. If the currency of the
cash back portion differs from the currency of the cardholder billing amount, the customer must
perform the following calculation:
• Remove any assessments or fees added to the cardholder billing amount.
• Use the process described in the Currency Conversion Calculations section to convert the
cash back portion in DE 54 to the cardholder billing currency, applying the same exchange
rates used by Global Clearing Management System.
• Subtract the converted DE 54 amount from the DE 4 amount of the First Presentment/
1240 message to obtain the purchase amount.
• The revised DE 4 will now contain the purchase amount only.
When charging back all or a part of the purchase portion but not the cash back portion of a
Purchase with Cash Back transaction, the customer must submit a First Chargeback/1442
message containing DE 24 (Function Code), value 453.
Currency conversion for customers in the U.S. region processing a chargeback

message
A U.S. issuer processing a chargeback message will not convert the message nor indicate any
conversion therein but will process it in U.S. dollars through the First Chargeback/1442
message.
The chargeback amount submitted in DE 4 should not exceed the transaction amount previously
provided to the issuer in DE 4 of the First Presentment/1240 message.
For partial chargebacks, the chargeback amount submitted in DE 4 of the chargeback message
should be less than the transaction amount previously provided to the issuer in DE 4 of the first
presentment. If an issuer submits multiple partial chargebacks for one first presentment, the
total of the partial chargebacks must not exceed the transaction amount previously provided to
the issuer in DE 4 of the first
Currency conversion for customers outside the U.S. region processing a

chargeback message
An issuer not in the U.S. region processing a chargeback message will determine the currency of
the chargeback amount as follows.

Currency conversion
Chargeback processing currency determination process
If... And... Then...

The issuer sending the The disputed amount is The issuer processes the chargeback in the currency
chargeback and the in the intracurrency of the intracurrency settlement agreement.
acquirer receiving the reconciliation currency.
The issuer is required to pre-convert the disputed
chargeback participate
The disputed amount is amount to U.S. dollars and then to the
in the same
not in the intracurrency intracurrency reconciliation currency. The rate used
intracurrency settlement
reconciliation currency for the pre-conversion should be the current or
agreement and the
(for example, it is stated previous day’s mid rate.
transaction qualifies for
in the transaction
the intracurrency
currency or in the issuer
agreement based on
billing currency).
customer specified
criteria.
If... And... Then...

The issuer sending the The disputed amount is The issuer processes the chargeback in U.S. dollars.
chargeback and the in U.S. dollars.
The issuer is required to pre-convert the disputed
acquirer receiving the
The disputed amount is amount to U.S. dollars. The rate used for the pre-
chargeback do not
not in U.S. dollars (for conversion should be the current or previous day’s
participate in the same
example, it is stated in mid rate.
intracurrency settlement
the transaction currency
agreement, or if the
or in the issuer billing
issuer is in region D and
currency).
the transaction is not
intra-Europe.
For intra-European and inter-European transactions only, issuers may process a chargeback for
the same or lesser amount of the original presentment received from the acquirer either:
• In the original presentment reconciliation currency, as specified in DE 5 (Amount,
Reconciliation) of the First Presentment/1240 message.
• In the amount debited in the issuer's payment currency used for settlement of the original
presentment, as specified in DE 6 (Amount, Cardholder Billing) of the First Presentment/
1240 message.
For example, if the transaction is in EUR and the cardholder's currency is GBP, the chargeback
amount may be in either EUR or GBP.
Rates To Be used for pre-conversion in chargeback processing

Customers should use the following rates when pre-converting chargeback amounts.

Currency conversion
NOTE: Customers must use Mastercard-published rates when pre-converting chargeback amounts.
Pre-conversion chargeback rates
Chargeback Submitted
for Global Clearing
Management System FX Rate File Received Currency Update/1644 Messages Received in
Processing Day Calendar Day Clearing Transmission with Processing Day
Monday Saturday Saturday
Tuesday Monday Monday
Wednesday Tuesday Tuesday
Thursday Wednesday Wednesday
Friday Thursday Thursday
Saturday Friday Friday
Pre-conversion calculation for a chargeback in intracurrency reconciliation

currency
If the issuer sending a chargeback and the acquirer receiving the chargeback participate in the
same intracurrency settlement agreement, and the transaction qualifies for the agreement
according to customer specified criteria, and the disputed amount is in the reconciliation
currency, no pre-conversion is required.
The issuer may process the chargeback using the amount in intracurrency reconciliation
currency.
If the disputed amount is not in the intracurrency reconciliation currency, the issuer should use
the intracurrency reconciliation amount (represented in DE 5 [Amount, Reconciliation]).
To calculate a chargeback in the intracurrency reconciliation currency, the issuer first converts
the disputed amount to U.S. dollars by dividing it by the appropriate mid rate. The issuer then
multiplies the resulting U.S. dollar amount by the mid rate associated with the intracurrency
Pre-conversion calculation for a chargeback in U.S. dollars

To perform a pre-conversion calculation of a chargeback in U.S. dollars, the issuer divides the
disputed amount by the mid rate associated with the disputed amount.
NOTE: The chargeback amount presented by the issuer to Mastercard in U.S. dollars should include
amounts resulting from a Currency Conversion Assessment, if applicable.

Currency conversion
Acquirer processing of second presentments
Acquirer processing of second presentments

An acquirer processes a second presentment for the same or lesser amount of the chargeback
received from the issuer in U.S. dollars, without any further currency conversion.
For intra-European and inter-European transactions only, an acquirer may process a second
presentment for the same or lesser amount of the chargeback received from the issuer either:
• In the currency of the chargeback, as specified in DE 4 (Amount Transaction) of the First
Chargeback/1442 message, or
• In the acquirer payment currency used for reconciliation of the chargeback, as specified in DE
5 (Amount, Reconciliation) of the First Chargeback/1442 message.
Acquirers cannot process a second presentment for an amount greater than the issuer's
chargeback, but the acquirer may process a second presentment for a lesser amount.
Acquirers can initiate partial amount second presentments when an issuer has charged back the
full amount of the original financial presentment and, through communication with the
merchant, the acquirer is accepting responsibility for a portion of the disputed amount.
Acquirers notify Mastercard and issuers that the second presentment is for less than the full
amount of the initial chargeback by providing value 282 in DE 24 (Function Code) of the Second
Presentment/1240 message.
Processing of pre-arbitration and arbitration case filings

A pre-arbitration or arbitration case filing should use the same currency as the currency used in
the second presentment unless the second presentment currency is listed in the table below. If
the currency of the second presentment is listed in the table, the amount should be converted to
USD by utilizing the Mastercard published midrate from the day prior to the submission of the
first chargeback.
A pre-arbitration or arbitration case filing may not be for an amount in excess of the acquirer’s
second presentment, but it may be for a lesser amount.

Currency conversion
Processing of pre-arbitration and arbitration case filings

Currency conversion
Currency conversion for settlement of fee collection messages
Currency conversion for settlement of fee collection messages

When transaction currency is not equal to the sender/receiver reconciliation currency, the
transaction amount will be converted to appropriate reconciliation currency.
Customers may find the currency conversion rate used in DE 9 of the Clearing Detail File if the
customer is the message originator, or in DE 9 of the IPM file if the customer is the message
receiver.
Currency conversion for reversals

This section includes details about the currency conversion of reversal transactions, including
how the conversion rate type is determined and the elements in which customers must provide
the original Global Clearing Management System processing date.
The currency conversion rate types (buy, mid, and sell) used for processing reversal transactions
are determined using the same rules outlined earlier in this chapter for presentments,
chargebacks, and fee collection messages.
Acquirers submitting first presentment reversal messages are required to provide the original
Global Clearing Management System processing date when submitting a first presentment
reversal transaction in
• PDS 0025 (Message Reversal Indicator), subfield 2 (Central Site Processing Date of Original
Message) (if reversing an individual message), or
• PDS 0026 (File Reversal Indicator), subfield 2 (Central Site Processing Date of Original File)
(if reversing an entire file)
If the current GCMS processing date is within 7 processing days (excluding the original
processing date) of the historical GCMS processing date, GCMS will use the historical currency
conversion rate that was applied during the original clearing of the transactions.
If the current GCMS processing date is more than 7 processing days (excluding the original
processing date) before the historical GCMS processing date, GCMS will use the currency
conversion rates on the current processing day (for example, the currency conversion rates
available at the reversal submission date, when processing the reversals).
For all reversals other than first presentments, GCMS will continue to use the current processing
day’s currency conversion rates.
For chargeback and fee collection reversals, Global Clearing Management System uses the
current processing day’s currency conversion rates when calculating the settlement value of the
reversal.

Currency conversion
Currency Update/1644-640 Messages
Currency Update/1644-640 Messages

The Currency Update/1644-640 messages provide Mastercard-Issued USD Rates. These rates
are published rates (as opposed to cross-rates).
Customers may request Currency Update/1644-640 messages from Mastercard as part of
their inbound clearing files. This option is available at the processor level with the ability to
specify the clearing cycle in which the processor should receive the messages.
NOTE: Global Clearing Management System sends the Currency Update/1644-640 messages once per
processor endpoint to the lowest (first) occurring customer ID in the logical file. Global Clearing
Management System does not provide a set of these messages for each customer ID associated with
the same processor. Only one set will be provided in a delivery file. For example, if the customer elects
to have clearing cycles 3 and 4 delivered as one file after the fourth clearing, only one set of rate
messages will be sent, not one each from 3 and 4.
Delivery options for the Currency Update/1644-640 messages are

• do not deliver Currency Update/1644-640 messages
• deliver mid rate Currency Update/1644-640 messages
• deliver buy and sell rate Currency Update/1644-640 messages only, and
• deliver buy, sell, and mid rate Currency Update/1644-640 messages.
The customer or processor will receive the Currency Update/1644-640 messages in the delivery
cycles for which the customer or processor has elected to receive the rates. The clearing system
will not generate Currency Update/1644-640 messages for customers when there is no
financial activity for that customer for a processing day.
T057 Currency Conversion Rate File

The Currency Conversion Rate File provides customers with Mastercard-Issued USD Rates and
Mastercard-Issued Cross Rates, in effect for a given processing day.
Customers may choose to receive the Currency Conversion Rate File through
• MIP (production bulk file T057, test bulk file T058)
• CONNECT:Direct, or
• Mastercard File Express.
Currency conversion rate effective day and time

The currency conversion rates used by Global Clearing Management System are guaranteed for
each Global Clearing Management System processing day for transactions not eligible for rates
effective at the time of authorization. For transactions eligible for rates effective at time of
authorization, refer to the Transaction Eligibility Window table in Rates used for currency
conversion.

Currency conversion
Effective day and time for currency conversion rates not qualified for FX rates at the time of
authorization
Rates Effective Rates Effective for Calendar Day/ Time

for Global
Clearing
Management FX Rate File
System Received
Processing Day Calendar Day From To
Monday Sunday Sunday 08:00 Monday 08:00
Tuesday Monday Monday 08:00 Tuesday 08:00
Wednesday Tuesday Tuesday 08:00 Wednesday 08:00
Thursday Wednesday Wednesday 08:00 Thursday 08:00
Friday Thursday Thursday 08:00 Friday 08:00
Saturday Friday Friday 08:00 Saturday 08:00
Sunday Saturday Saturday 08:00 Sunday 08:00
NOTE: Calendar days and times are expressed in Central Standard Time in the table above.
Customers interested in receiving the currency conversion rate file should contact the Global
Customer Service team for additional information.
The currency conversion rate file detail record provides the rate class in field 5. The values for
rate class are defined in the following table.
Valid Value Description Comments

M = Mastercard-Issued USD Rate Buy, mid, and sell rates against The Mastercard-Issued USD
the U.S. dollar Rates will reside in the Currency
Conversion Rate File Detail
Record as follows.
• Field 7 will contain the BUY
Currency Conversion Rate.
• Field 8 will contain the MID
• Field 9 will contain the SELL

Currency conversion
Valid Value Description Comments

F = Master-Issued Cross Rate Buy, mid, and sell rates against The cross rates will reside in all
non-U.S. dollar currencies three rate type fields.
• Field 7 will contain the BUY
• Field 8 will contain the MID
• Field 9 will contain the SELL
Currency conversion rate file format

The currency conversion rate file header, detail, and trailer record layouts are shown in the
following tables.
Currency conversion rate file header record
Field Number and

Name Position Length Format Comments and Values
1 Header Description 1 1 an Constant: H
2 Date 2-9 8 n File creation date. YYYYMMDD
3 Time 10-15 6 n The time the file was created. Coordinated
Universal time (UTC); six digits in military
format HHMMSS. For example, 3:30:30 p.m.
would show as 153030.
4 Rate File Format 16 1 an This field identifies the file format version.
Version The initial version will be 1 and will be
incremented each time the file format
changes.
5 Filler 17-125 109 an Spaces
Currency conversion rate file detail record
Field Number and

1 Detail Description 1 1 an Constant: D
2 Source Currency 2-4 3 n ISO currency code for the currency for which
Code rates are being provided.

Currency conversion
Field Number and

3 Reference Currency 5-7 3 n ISO code for the reference currency against
Code which rates are quoted.
NOTE: This field will continue to always

contain a value of U.S. dollars (840) for
Mastercard-Issued USD Rates (Rate Class =
M). However, for Mastercard-Issued Cross
Rates (Rate Class = F), this field may
contain any valid currency code.
4 Source Currency 8 1 n Exponent of the currency code in field 2,

Exponent positions 2-4.
5 Rate Class 9 1 an M = Mastercard-Issued USD Rates
F = Mastercard-Issued Cross Rate
6 Rate Format 10 1 an Constant—D = Direct (only rate format

Indicator currently supported)
7 BUY Currency 11-25 15 n Eight numbers to the left of the decimal,
Conversion Rate seven numbers to the right of the decimal.
8 MID Currency 26-40 15 n Eight numbers to the left of the decimal,
9 SELL Currency 41-55 15 n Eight numbers to the left of the decimal,
10 Reserved Field 56-70 15 n Nine-filled
Currency Conversion Rate File Trailer Record
Field Number and Comments and

Name Position Length Format Values
1 Trailer 1 1 an Constant: T
Description
2 Record Count 2-7 6 n Total number of
detail records. This
count does not
include the header
or trailer records.

Currency conversion
Acquirer Currency Conversion Rate File
Field Number and Comments and

3 Hash Total 8-24 17 n Hash total of all
MID Currency
Conversion Rate
fields presented in
the detail records.
Ten numbers to the
left of the decimal,
seven numbers to
the right of the
decimal.
Acquirer Currency Conversion Rate File

The Acquirer Currency Conversion Rate File provides the effective currency conversion rate of all
possible ISO currency codes between the transaction currency code and the acquirer
reconciliation currency code.
The files are provided for the following presentments:
• Regional First Presentments (production bulk file TQQ4, test bulk file TQQ6)
• Regional Second Presentments (production bulk file TQQ8, test bulk file TQR0)
• Intracurrency Presentments (production bulk file TQX2, test bulk file TQX4)
Customers may choose to receive the file through
• Mastercard Interface Processor (MIP) (production bulk files TQQ4, TQQ8, and TQX2; and
test bulk files TQQ6, TQR0, and TQX4)
• CONNECT:Direct®, and
NOTE: The Acquirer Currency Conversion Rate File is applicable only to determine the acquirer
reconciliation amount from the transaction currency. This file does not replace the existing T057
Currency Conversion Rate File. Customers will continue to receive T057 rate files the same as before.
Acquirer Currency Conversion Rate effective day and time

The conversion rates in Acquirer Currency Conversion Rate File follow the same effective times
as the T057 Currency Conversion Rate File.
Customers interested in receiving the updated Acquirer Currency Conversion Rate File should
contact the Global Customer Service team for additional information.
Please refer to Chapter 26—Acquirer Currency Conversion Rate File Format for full details
regarding the Acquirer Currency Conversion Rate File format.

Currency conversion
Originating Institution Payment Transaction Currency Conversion Rate File
Originating Institution Payment Transaction Currency Conversion

Rate File
The Originating Institution Payment Transaction Currency Conversion Rate File gives customers
the ability to determine the funding amount needed to reconcile with Mastercard specifically for
cross-border payment transactions. To assist customers in reconciling their payment
transactions (DE 3, Processing Code, subfield 1, Cardholder Transaction Type Code, value 28),
this rate file contains all possible currency conversion rates from the transaction currency to the
Originating Institution’s reconciliation currency code for regional First Presentment payment
transactions.
Customers may receive this new file through
• Mastercard Interface Processor (MIP) (production bulk files TS40, and test bulk files TS42)
• CONNECT:Direct, and
NOTE: The Originating Institution Payment Transaction Currency Conversion Rate File is applicable
only for determining the Originating Institution's reconciliation amount to support cross-border
payment transactions. This file will not replace the existing T057 Currency Conversion Rate File.
Customers will continue to receive T057 rate files.
Receiving institutions that reconcile must continue reconciling using currency conversion rate
information provided in the First Presentment message and must not use the Originating Institution
Payment Transaction Currency Conversion Rate File.
Originating Institution Payment Transaction Currency Conversion Rate effective

day and time
The Originating Institution Payment Transaction Currency Conversion Rate File conversion rates
follow the same effective times as the T057 Currency Conversion Rate File conversion rates.
Originating Institution Payment Transaction Currency Conversion Rate File

format
Mastercard provides the Originating Institution Payment Transaction Currency Conversion Rate
File for regional First Presentment Payment Transactions in production bulk file TS40, and test
bulk file TS42.
Please refer to Chapter 27—Originating Institution Payment Transaction Currency Conversion
Rate File Format for full details regarding the rate file format.

Currency conversion
Clearing Detail File (IP755120-AA) to facilitate acquirer reconciliation
Clearing Detail File (IP755120-AA) to facilitate acquirer

reconciliation
The Clearing Detail Report (IP755120-AA) is offered to acquirers to facilitate acquirer
reconciliation. Customers can sign up for this report delivered through bulk file TN70
(Production) and TN72 (Test).
The report will be generated and sent after each clearing cycle, including cycle seven.
The report (in the form of a raw data file) provides acquirers transaction-level details from the
Global Clearing Management System (GCMS) including the currency conversion rate DE 9
(Conversion Rate, Reconciliation) used to convert the transaction amount to the acquirer
reconciliation amount.
Per transaction, the report will contain the following Detail Record. For the corresponding data
element and private data subelement, refer to the IPM Clearing Formats manual.
To register for this file, acquirers must send an email to Global Customer Service at
[email protected] designating which ICA(s) and endpoint(s) they would like
to be set up for bulk file TN70/TN72 Clearing Detail Report IP755120-AA.
Select data elements from the Clearing Detail File
Data Element Description

DE 5 (Amount, Reconciliation) Acquirer Reconciliation Amount
DE 9 (Conversion Rate, Reconciliation) Currency Conversion Rate: Transaction Amount to Acquirer
PDS 0146 (Amounts, Transaction Total Interchange in Acquirer Reconciliation Currency
Fee), subfield 7 (Amount, Fee,
Reconciliation)
PDS 0015 (Clearing Currency Currency conversion date
Conversion Identifier), subfield 1
(Currency Conversion Date)
PDS 0015 (Clearing Currency Currency conversion indicator
Conversion Identifier), subfield 2
(Currency Conversion Indicator)
Refer to the Acquirer Clearing Detail Reporting chapter for the layout of a Clearing Detail File.

Currency conversion
Clearing Detail File (IP755120-AA) to facilitate acquirer reconciliation
Header record

Detail record
Starting
Detail DE PDS Subfield Length position
Original - 0052 - 3 672
Transaction
Information -
SLI
Trailer record


ICCR service
Chapter 15 ICCR service

Issuers in the Europe region have the option to enroll in the Issuer Currency Conversion Rate (ICCR)
service, which charges the cardholder an additional fee for transactions that require currency
conversion.
ICCR service overview........................................................................................................................................285

ICCR enrollment..................................................................................................................................................285
ICCR reports........................................................................................................................................................285
ICCR bulk files......................................................................................................................................................288

ICCR service
ICCR service overview
ICCR service overview

The Issuer Currency Conversion Rate (ICCR) is a parameter-based system that charges
cardholders by applying a mark-up called ICCR in clearing.
Issuers in the Europe region can add this supplemental fee to a transaction amount when the
transaction currency is different from the cardholder billing currency. This fee is listed under DE
6 (Amount Cardholder Billing).
Issuers will be able to set their issuer currency conversion rate by account range, which will apply
to First Presentment messages. Issuers can also apply ICCR to First Presentment Reversals and
Credits.
Issuers have the option to apply a back-out process for the ICCR amount on First Chargebacks
(and reversals) in cases where the ICCR amount is included in the DE 4 amount on Chargebacks.
Issuers can receive daily audit report files of the clearing transactions where the ICCR was
applied. A new bulk file type will be introduced in support of the daily audit report files.
ICCR applies to POS and ATM transactions acquired worldwide.
In the dual message system, all payment transactions (processing code = 28) will be bypassed
for ICCR.
ICCR enrollment
All issuers in the Europe region that choose to enroll in the ICCR service must submit the correct
enrollment form.
The ICCR Service Enrollment Form, available on Mastercard Connect™, must be completed and
submitted before issuers can participate in the ICCR service.
Forms should be submitted to the issuer’s local customer delivery manager.
ICCR reports
Issuers can choose to receive daily audit report files that align with each clearing cycle from
Global Clearing Management System.
This audit report will be available for the clearing transactions for which the ICCR calculation
was performed.
Bulk File TN70 On Request Report Data File Transfer raw format
Header record

ICCR service
ICCR reports

1 an-17 Value ‘HIP830010’
2 an-11 ICA
3 an-07 Endpoint
Detail record

1 a-01 Value ‘D’
2 an-11 ICA
3 an-04 MTI Code
4 an-03 Function Code
5 an-08 Processing Date
6 an-19 PAN
7 n-02 Process Code
8 n-11 Issuer ICA
9 an-01 Reversal Indicator
10 an-03 Filler
11 an-06 Transaction Date
12 an-04 Transaction Time
13 an-03 Merchant Country Code
14 an-09 Banknet Reference Number
15 n-12 Transaction Amount
16 an-03 Transaction Currency Code
17 an-01 Transaction Currency Exponent
18 n-12 Reconciliation Amount
19 an-03 Reconciliation Currency Code
20 an-01 Reconciliation Currency Exponent
21 an-12 Cardholder Billing Amount
22 an-03 Cardholder Billing Currency Code
23 an-01 Cardholder Billing Currency
Exponent

ICCR service
ICCR reports

24 an-08 Filler
25 n-12 ICCR Amount
26 n-15 ICCR Rate
Trailer record

1 an-17 Value of ‘TIP830010’
2 an-11 ICA
3 an-07 Endpoint
4 an-12 Total of detail records only
Audit report fields included in raw data

The following table shows audit report fields that will be included in the raw data from the Bulk
File TN70. Depending on the receiver of the file, a linend character may be inserted after each
record.
1st Presentment Field Description 1st Chargeback (Full and Partial) Position Length Format
Field Description
MTI MTI 1 4 an
Func Code_DE24 Func Code_DE24 5 3 an
DW_PROCESS_DATE DW_PROCESS_DATE 8 8 an
DE2_CARD_NBR DE2_CARD_NBR 16 19 an
DE3_CARDHOLDER_TXN_TYPE DE3_CARDHOLDER_TXN_TYPE 35 2 an
DE93_ISSUER_ID DE94_SEND_ICA 37 11 an
PDS25_REVERSAL_IND PDS25_REVERSAL_IND 48 1 an
FILLER_REV_IND_MDS FILLER_REV_IND_MDS 49 3 an
DE12_TXN_DATE DE12_TXN_DATE 52 6 an
DE12_TXN_TIME 58 4 an
DE43_MERCH_COUNTRY_CD DE43_MERCH_COUNTRY_CD 62 3 an

ICCR service
ICCR bulk files
1st Presentment Field Description 1st Chargeback (Full and Partial) Position Length Format
Field Description
DE63_BANKNET_REF_NBR DE63_BANKNET_REF_NBR 65 9 an
DE4_TXN_AMT DE4_TXN_AMT 74 12 n
DE49_TXN_CURR_CD DE49_TXN_CURR_CD 86 3 an
PDS148_TXN_CURR_EXP DE49_TXN_CURR_EXP 89 1 an
DE5_SETTLEMENT_AMT DE5_SETTLEMENT_AMT 90 12 n
DE50_SETTLEMENT_CURR_CD DE50_SETTLEMENT_CURR_CD 102 3 an
PDS148_SETTLEMENT_CURR_EXP PDS148_SETTLEMENT_CURR_EXP 105 1 an
DE6_CARDHOLDER_BILLING_AMT 106 12 n
DE51_CH_BILLING_CURR_CD 118 3 an
PDS148_ISSUER_CURR_EXP 121 1 an
FILLER_DE10_MDS FILLER_DE10_MDS 122 8 an
PDS863_ICCR_AMT PDS863_ICCR_AMT 130 12 n
PDS863_ICCR_RATE PDS863_ICCR_RATE 142 15 n
ICCR bulk files

Mastercard will create a new bulk file layout, Bulk File TN70 (On Request Report Data File
Transfer Raw Format), to replace bulk file type TAV8.

Reconciliation
Chapter 16 Reconciliation
This section describes the Global Clearing Management System messages and reports and how they can
be used in the reconciliation process.
Options for reconciliation of clearing and settlement data........................................................................290

IPM reconciliation messages for clearing and settlement data.................................................................290
Reconciliation messages generated by the Global Clearing Management System..........................290
Financial messages considered in reconciliation......................................................................................291
Acknowledgment messages created by Global Clearing Management System............................... 291
Notification messages..................................................................................................................................292
Location of reconciliation totals.................................................................................................................292
List of optional reconciliation categories.............................................................................................294
Account range reconciliation category...........................................................................................303
Transaction function reconciliation category................................................................................304
Customer Reconciliation Indicator 1 reconciliation category.....................................................305
Functionality in the reconciliation messages......................................................................................306
File Currency Summary/1644-680 message...........................................................................................307
Financial Position Detail/1644-685 message..........................................................................................307
Choosing clearing reconciliation categories........................................................................................308
Settlement Position Detail/1644-688 message.....................................................................................311
Choosing settlement reconciliation categories.................................................................................. 311
Global Clearing Management System reconciliation reports............................................................... 312
IPM clearing reports: Clearing Cycle Acknowledgment and Clearing Cycle Notification
reports....................................................................................................................................................... 315
IPM clearing reports: Clearing Cycle Summary..................................................................................315
Clearing Cycle Acknowledgment Report samples........................................................................316
Clearing Cycle Notification Report samples..................................................................................332
Clearing Cycle Summary Reconciliation Report (IP728010-AA).................................................... 337
IPM Messages Created On Behalf of a Member Report (IP142110-AA)......................................358
On-behalf Service Fee Collection Report (IP142520-AA)................................................................367
Miscellaneous Override Financial Adjustments Report (IP148320-AA)........................................ 368
Acquirer-funded Reward Presentments Created On Behalf of a Member Report
(IP170010-AA).........................................................................................................................................374
Consolidated on-request XML data file distribution................................................................... 374
Using both IPM messages and reports to collect information..............................................................376
Accumulating reconciliation totals.............................................................................................................377
IPM reconciliation split..................................................................................................................................378

Reconciliation
Options for reconciliation of clearing and settlement data
Options for reconciliation of clearing and settlement data

The Global Clearing Management System provides several options to assist customers with
reconciling their clearing and settlement data:
• Reconciliation messages provide detail and summary information of the customer's clearing
and settlement financial activity totals.
• Reconciliation reports provide detail and summary information of the customer's clearing
and settlement financial activity totals.
• Early Reconciliation allows customers to receive errors and acknowledgment reconciliation
messages earlier than clearing cycle cutoff.
• Reconciliation Utility allows customers to submit the contents of amount fields in individual
customer outgoing and incoming Integrated Product Messages (IPMs).
Each option is available for customers depending on the type of financial transaction activity
received.
Option Clearing financial transactions Settlement financial transactions

Reconciliation Messages Yes Yes
Reconciliation Reports Yes
Early Reconciliation Yes Yes
Reconciliation Utility Yes Yes
For more information about the Reconciliation Utility, refer to the Clearing Optimizer: Mainframe
manual.
IPM reconciliation messages for clearing and settlement data
Reconciliation messages generated by the Global Clearing Management System

Reconciliation messages are optional for customers and are generated for each clearing cycle in
which there was applicable transaction data.
Reconciliation messages available to customers are
• the IPM File Currency Summary/1644-680 message
• the IPM Financial Position Detail/1644-685 message, and
• the IPM Settlement Position Detail/1644-688 message.
The Global Clearing Management System generates these messages as an acknowledgment
message, a notification message, or both, depending on the type of data being accumulated
and the options elected by the customer.

Reconciliation
Financial messages considered in reconciliation
The messages include a four-position DE 25 (Message Reason Code), which identifies it as either
an acknowledgment or a notification reconciliation message.
IF DE 25 contains a value of… THEN this message is a…

6861 Acknowledgment Reconciliation message
6862 Notification Reconciliation message
Acknowledgment is a type of IPM reconciliation message confirming the customer's outbound

activity that Global Clearing Management System processed.
Notification is a type of IPM reconciliation message confirming the customer's inbound activity
that Global Clearing Management System processed.
Financial messages considered in reconciliation

Only some of the IPM messages available for customer use have a financial impact on
reconciliation.
For example, retrieval request messages are not considered financial activity and therefore are
not included in the reconciliation message amount totals.
Financial activity messages that contribute to reconciliation message amount totals are
• 1240-200 First Presentments
• 1442-450 First Chargebacks (Full)
• 1442-453 First Chargebacks (Partial)
• 1240-205 Second Presentments (Full)
• 1240-282 Second Presentments (Partial)
• 1442-451 Arbitration Chargebacks (Full)
• 1442-454 Arbitration Chargebacks (Partial)
• 1740-700 Fee Collection (Retrieval Fee Billing), and
• 1740-700, 1740-780, 1740-781, 1740-782, 1740-783 Fee Collection (Other): all cycles.
Acknowledgment messages created by Global Clearing Management System

Customers may optionally choose to receive acknowledgment messages based on the activity
received from the customer.
If Mastercard receives clearing files from the customer, Global Clearing Management System
creates clearing acknowledgment messages for each customer’s logical files, regardless of
whether the files contain financial clearing data.
If the files that Mastercard receives from the customer contain financial activity, Global Clearing
Management System may create clearing acknowledgment messages, settlement
acknowledgment messages, or both for each customer’s logical files. If no financial activity is
received, no settlement acknowledgment messages are created.

Reconciliation
Notification messages
Clearing acknowledgment messages
THEN the Global Clearing Management

IF Mastercard… AND the files… System…
Receives clearing files from Do not contain financial Creates clearing acknowledgment
the customer clearing data (for example, if reconciliation messages containing zeros
all messages between the file in the amount and count fields, and U.S.
header and file trailer dollars in the corresponding currency
messages are retrieval code fields. This advises the customer
requests) that the Global Clearing Management
System received and processed the non-
financial logical file.
Does not create settlement
acknowledgment messages.
Contain financial clearing data Creates clearing and settlement

acknowledgment reconciliation
messages for the financial data.
Does not receive any clearing Will not generate any acknowledgment
files from the customer messages.
Notification messages
Mastercard generates notification messages only when there is notification data to transmit.
Location of reconciliation totals

Based on the reconciliation categories that the customer chooses, Global Clearing Management
System will include the totals in the following private data subelements of the 1644-680 File
Currency Summary, 1644-685 Financial Position Detail, or 1644-688 Settlement Position Detail
messages.
Refer to the three columns to the right to determine when the private data subelements are
mandatory or conditional within the 1644-680, 1644-685 and 1644-688 messages.

Reconciliation
Location of reconciliation totals
Presence of this PDS in 6

Will include reconciliation 1644-680 1644-685 1644-688
PDS totals for… In… message message message
0360 Reconciled, This indicates that there a C C C
split has occurred in the
Transaction
reconciliation total reported in
Sequence reconciliation messages. The
subfields indicate the
Identifier
sequence and the total
number of message splits.
0380 Debits, transaction amount Transaction currency M C N/A
0381 Credits, transaction amount Transaction currency M C N/A
0384 Amount, net transaction Transaction currency M C N/A
0390 Debits, transaction amount Reconciliation currency N/A M M
0391 Credits, transaction amount Reconciliation currency N/A M M
0392 Debits, fee amounts Reconciliation currency N/A M M
0393 Credits, fee amounts Reconciliation currency N/A M M
0394 Amount, net transaction Reconciliation currency N/A M M
0395 Amount, net fee Reconciliation currency N/A M M
0396 Amount, net total Reconciliation currency N/A M M
0400 Debits, transaction number This is a record count of all M M N/A

bilateral, and Global
Collection Only transactions
settled by Mastercard.
0401 Credits, transaction number This is a record count of all M M N/A

0402 Total, transaction number This is a record count of all M M N/A

6 C = Conditional: The data element is present in the message if the conditions described in the accompanying text
are applicable. M = Mandatory: The data element is always present in the message.

Reconciliation
List of optional reconciliation categories

The Reconciliation Message Categories table lists optional reconciliation categories.
Customers may select or change these reconciliation categories by contacting their account
manager or Mastercard Customer Implementation Specialist.
These definitions are used in the table.
• Transactions cleared and settled by Mastercard: Financial activity from customer to
customer, from customer to Mastercard, and from Mastercard to customer for which the
Mastercard settlement system completes settlement.
• Bilateral transactions: Transactions submitted for clearing that Mastercard does not settle
because customers settle them through an interface outside of the Mastercard settlement
system. These transactions are reported only in transaction currency; they are not reported in
reconciliation currency, because they are not settled through Mastercard.
• Global collection only transactions: On-Us or intraprocessor transactions that customers
cleared and settled outside of the Mastercard Global Clearing Management System.
Customers send these transactions to Global Clearing Management System for reporting
purposes only (Customers will never receive notification reconciliation messages with global
collection only totals because Global Clearing Management System does not forward the
global collection only messages; therefore, only acknowledgment reconciliation messages are
created). These transactions are reported only in transaction currency; they are not reported
in reconciliation currency, because they are not settled through Mastercard.
• In addition, full business service selection does not occur on global collection only. Therefore,
the global collection only transactions are reported within the lowest level card program
identifier, business service type, and business service ID in common for both customers.
Customers that want to receive reconciliation totals for Mastercard settled, bilateral
settlement, and global collection only activity should request both the transaction currency
option and the settlement indicator option for IPM financial position detail reconciliation
messages to differentiate amount totals for each of these types of transactions.
Reconciliation message categories

Reconciliation
Available for: 7
1644-685 1644-688
Reconciliation Provides Totals of Fin Pos Dtl Smt Pos Dtl
Message Reconciliation Additional Information about this
Category Amounts by: Reconciliation Category Ack Not Ack/Not
1 PDS 0300 PDS 0105 (Sending The file originator must create a R R D
(Reconciled, File File ID) unique File ID for each File Header/
ID) 1644-697 message in and across
transmissions. The file originator
accomplishes this by using unique
values in the file ID in each File
Header/1644-697 message and
corresponding File Trailer/
1644-695 message. This value
appears in PDS 0300 of the
reconciliation message.
The value provided in the customer
acknowledgment messages
identifies the file ID in PDS 0105
submitted by the customer. 8
The value provided in the customer
notification messages identifies
the clearing cycle and the delivery
cycle within the file ID in PDS 0105
sent to the customer.
These values can be used for
reconciliation to the Settlement
Advisement totals.
7 D = Default: If the customer elects to receive reconciliation messages, this category will be provided
automatically. O = Optional: The category is not required but may be included at the customer’s option. R =
Recommended: Unless the customer specifies otherwise, this category will be provided.
8 Customers sending a full file reversal using the same file ID, within the same clearing, may receive reconciliation
messages with amount totals that net to zero as a result of the original file and the reversal file processing in the
same clearing.

Reconciliation
Available for: 7
1644-685 1644-688
2 PDS 0165 • Transactions Each reconciliation message R R N/A
(Settlement cleared and contains totals only for a single
Indicator) settled by settlement indicator, not a
Mastercard combined total for transactions
• Bilateral settled by Mastercard, bilateral
transactions transactions, and global collection
• Global Collection only transactions.
Only transactions Global Clearing Management
System reports bilateral and
global collection only transactions
only in transaction currency
because they are not settled
through Mastercard. Global
reports only transactions settled
through Mastercard in
reconciliation currency, and
additionally may report them in
transaction currency or
transaction counts depending on
the reconciliation message type.
3 PDS 0378 • Original Customers receiving this category R R N/A

(Original/ transactions will receive amount totals for
Reversal Totals • Reversal original transaction activity and
Indicator) transactions reversal transaction activity, each
in separate reconciliation
messages.

Reconciliation
Available for: 7
1644-685 1644-688
4 PDS 0374 Processing Code Processing Code describes the R R N/A
(Reconciled effect of a transaction on a
Processing Code) customer account and the type of
account affected.
Customers that receive this
reconciliation category will receive
amount totals for all processing
codes for which there is activity.
Customers cannot specify amount
totals for only certain processing
codes. Currently supported
processing codes are:
00 = Purchase (goods and

services) transaction
01 = ATM transaction
09 = Purchase with cash

back transaction
12 = Cash disbursement
transaction
17 = Convenience check
(Global Collection
Only specific)
18 = Unique transaction
19 = Fee collection (credit

originator)
20 = Credit transaction
28 = Payment
transaction
29 = Fee collection (debit

originator)

Reconciliation
Available for: 7
1644-685 1644-688
30 = Balance Inquiry9
50 = Payment/balance
transfer (global
collection only
specific)
91 = PIN Unblock4
92 = PIN Change4
5 DE 49 (Currency Transaction currency Customers that receive this O O O

Code, reconciliation category will receive
Transaction amount totals for each unique
Currency) combination of reconciliation and
transaction currency pair.
6 PDS 0370 Issuing account Customers may receive amount O O O

(Reconciled ranges totals only for their own issuing
Account Range) account ranges up to 11 positions,
as established at Mastercard.
Customers selecting this category
also must select the Member
Activity category to receive
complete reconciliation
information for their:
• Issuing account ranges

• Acquiring activity (at the
member ID level), and
• Fee collection activity (at the
member ID level).
9 Although these transactions are traditionally considered to be non-financial with respect to the processing code, they
are classified as financial transactions when they are originated containing an access fee collected by the ATM
provider.

Reconciliation
Available for: 7
1644-685 1644-688
When this category is selected, the
issuer will receive messages for
each account range established for
its member ID that had activity in
the applicable file, clearing cycle, or
both.
Additional information on this
reconciliation category is located in
the following section titled
Account Range Reconciliation
Category.
7 PDS 0302 Any or all of the If the customer selects the O O C

(Reconciled, following: Account Range reconciliation
Member Activity) category, the customer also must
• Acquiring activity
select this category so that the
• Issuing activity Global Clearing Management
• Fee collection System can provide the customer
activity with complete reconciliation
information.
If the customer selects the
account range or Acquirer
Reference ID settlement
reconciliation categories, the
customer activity will
automatically be included as a
settlement reconciliation category.

Reconciliation
Available for: 7
1644-685 1644-688
8 PDS 0358 All of the following: Customers that receive this O O N/A
(Reconciled reconciliation category will receive
• Card Program
Business Activity) amount totals for all business
Identifier
activity categories for which there
• Business service is activity. Customers cannot
level specify to receive amount totals
• Business service for only certain Business Activity
ID categories.
• Interchange rate
designator The Global Clearing Management
System takes this data from the
• Business Date
business activity element of the
• Business Cycle original transaction.
• Acceptor
Classification For customers processing
Override transactions such as product class
Indicator overrides or special conditions, if
• Product Class business activity is one of the
Override reconciliation message categories
Indicator being received, amount totals are
based on the product class and
• Corporate
special conditions being received.
Incentive Rates
Apply Indicator
• Special
Conditions
Indicator
• Mastercard
Assigned ID
Override
Indicator

Reconciliation
Available for: 7
1644-685 1644-688
9 PDS 0359 • Settlement Customers that elect to receive N/A N/A D
(Reconciled, service level the settlement reconciliation
Settlement • Settlement messages will always receive
Activity) Service ID Settlement Position Detail/
• Transfer agent 1644-688 messages grouped by
• Transfer agent this category. Customers will
account receive settlement position detail
totals based on the information
• Foreign exchange
that Global Clearing Management
rate class
System populates in PDS 0159
• Reconciliation (Settlement Activity) of each
date and cycle transaction settled by Mastercard.
• Settlement date
and cycle
10 PDS 0372 Transaction Currently, the Global Clearing R R N/A

(Reconciled functions that Management System supports the
Transaction represent financial financial transaction functions
Function) activity noted in the table titled Currently
Supported Transaction Functions.
The Global Clearing Management
System takes this data from the
message type indicator (MTI) and
function code of the original
transaction.
Additional information on this
reconciliation category is located in
the following section titled
Transaction Function
Reconciliation Category.

Reconciliation
Available for: 7
1644-685 1644-688
11 PDS 0375 Customers that Customers can populate PDS O N/A N/A
(Member select this as an 0375 in their customer outgoing
Reconciliation acknowledgment messages with any proprietary
Indicator 1)10 reconciliation option, value up to 50 positions in length.
and populate PDS When using this option, all
0375 in outgoing financial records that do not
messages, will contain PDS 0375 upon
receive totals based submission, will be accumulated
on the contents of and returned in acknowledgment
PDS 0375 in reconciliation messages in which
Acknowledgment PDS 0375 contains the value
Financial Position undefined.
Detail/1644
Business service arrangements
messages.
that qualify for the Extended
Decimal Precision service will have
PDS 0375 populated with the
value undefined. Additional
information on this reconciliation
category is located in the following
section titled Member
Reconciliation Indicator 1.
12 PDS 0367 Card Program Customers that select this as a N/A N/A O
(Reconciled Card Identifier settlement reconciliation option
Program will receive totals based on the
Identifier) contents of PDS 0367 in
Acknowledgment Settlement
Position/1644 message. Global
Clearing Management System will
populate PDS 0367 based on
PDS 0158 (Business Activity),
subfield 1 (Card Program
Identifier).

Reconciliation
Account range reconciliation category
Available for: 7
1644-685 1644-688
13 PDS 0368 Totals are provided Customers that select this as a N/A N/A O
(Reconciled for each unique settlement reconciliation option
Transaction Transaction Function will receive totals based on the
Function Group group. contents of PDS 0368 in
Code) Acknowledgment Settlement
Position/1644 message.
14 PDS 0369 Acquirer Reference Customers may receive amount N/A N/A O
(Reconciled ID totals only for their own Acquirer
Acquirer Reference ID as established by
Reference ID) Mastercard.
Customers that select this as a
settlement reconciliation category
will receive complete reconciliation
information for their:
• Acquirer Reference ID
• Issuing activity (at the
customer ID level), and
• Fee collection activity (at the
customer ID level)
When this category is selected, the

acquirer will receive messages for
each BIN range established for its
member ID that had activity in the
applicable file, clearing file, or
both.
The initial population of BIN uses
the customer's BIN.
Account range reconciliation category

The initial population of account ranges uses the customer’s issuer account range.
Account range building
10 Note: For customers using this Financial Reconciliation option, the totals within a business service arrangement
subject to the Extended Decimal Precision Service will be accumulated and returned in acknowledgment
reconciliation messages where PDS 0375 contains the value "undefined." Use of PDS 0375 in other business services
arrangements is not affected. Refer to the Extended Decimal Precision Service section for more information.

Reconciliation
Transaction function reconciliation category
Global Clearing Management System, Clearing Optimizer, and IPM MPE will construct Customer ID
and issuer account range as follows:
Customer ID 009999 or 00000009999
NOTE: The IPM MPE contains the 11-position representation. The IPM format supports a variable
representation from six positions to 11 positions.
Account Range Low 5555550000000000000 (zero-filled)
Account Range High 5555559999999999999 (nine-filled) (issuer only or both)
The account ranges initially allow specification by 11-position ranges; however, this field
supports 19 positions for future use. The positions 12-19 in the Issuing Account Range
reconciliation category element are zero-filled for the beginning account range and nine-filled
for the ending account range.
Transaction function reconciliation category
The transaction functions currently supported for reconciliation messages are listed in the
Currently Supported Transaction Functions table.
NOTE: If the customer chooses to receive reconciliation messages for transaction functions,
Mastercard will provide reconciliation detail only for the transaction functions for which financial
detail activity has occurred.
Currently supported transaction functions
Message Type
Identifier Function Code Transaction Function
1240 200 First Presentment
1240 205 Second Presentment (full)
1240 282 Second Presentment (partial)
1442 450 First Chargeback (full)
1442 451 Arbitration Chargeback (full)
1442 453 First Chargeback (partial)
1442 454 Arbitration Chargeback (partial)
1644 603 Retrieval Requests11
11 Customers selecting this option and submitting only 1644-603 (Retrieval Requests; non-financial messages) will
receive reconciliation messages with zero counts and amounts.

Reconciliation
Customer Reconciliation Indicator 1 reconciliation category
Message Type
Identifier Function Code Transaction Function
1740 700 Fee Collection (customer-generated)
1740 780 Fee Collection Return
1740 781 Fee Collection Resubmission
1740 782 Fee Collection Arbitration Return
1740 783 Fee Collection (Global Clearing Management System-

generated)
1740 790 Fee Collection (Funds Transfer applies only in the

Clearing Optimizer system to UK Domestic Maestro
transactions)
Customer Reconciliation Indicator 1 reconciliation category

The Customer Reconciliation Indicator 1 table provides details about PDS 0375.
Customer Reconciliation Indicator 1
IF the customer chooses the

reconciliation category… THEN…
Customer Reconciliation 1. For each of the proprietary values present in clearing activity that
Indicator 1 includes the optional PDS 0375.
Example: A customer includes the value 1234 in PDS 0375 for several
First Presentment messages and 5678 in PDS 0375 for several other
First Presentment messages. In this case, the IPM reconciliation
messages will include totals of the clearing activity for all of the
messages that have the value 1234 in PDS 0375 and separate totals for
all the messages that have the value 5678 in PDS 0375.
2. For all financial activity when PDS 0375 is not provided.
Example: A customer has chosen this reconciliation category but does

not include PDS 0375 in several of the First Presentment clearing
messages submitted. The Global Clearing Management System will
create an acknowledgment message with a Customer Reconciliation
Indicator 1 value of undefined. This process will ensure that the
acknowledgment reconciliation provided represents 100 percent of the
accepted financial activity of the customer for that file.

Reconciliation
Functionality in the reconciliation messages
IF the customer chooses the

reconciliation category… THEN…
3. Will not receive reconciliation totals based on PDS 0375 (Member
Reconciliation Indicator 1) for reporting within any business service
arrangement subject to the Extended Decimal Precision service, as the
decimal portion of the interchange is not settled at the individual
transaction level. For customers using this Financial Reconciliation
Option, the totals within a business service arrangement subject to the
Extended Decimal Precision Service will be accumulated and returned in
acknowledgment reconciliation messages where PDS 0375 contains the
value undefined. Use of PDS 0375 in other business service
arrangements is not affected.
Functionality in the reconciliation messages

The reconciliation messages provide customers with detailed reconciliation data in reconciliation
currency and, optionally, transaction currency. Customers do not receive totals in U.S. dollars
unless the transaction currency or reconciliation currency is U.S. dollars.
• The File Currency Summary message always will contain totals in transaction currency.
• The Financial Position Detail message always will contain totals in the customer's
For… Global Clearing Management System provides amount totals in…

Global Collection Only Transaction currency only.
transactions
Bilateral transactions Transaction currency only.
All other transactions The customer's reconciliation currency and, if the customer selects
it, also in transaction currency.
When the reconciliation amounts are for bilateral totals, Global Collection Only totals, or both,
the message elements related to reconciliation currency amounts will be present in the
reconciliation message, but zero-filled. However, elements related to transaction counts always
contain totals for those settled by Mastercard, bilateral, and Global Collection Only count when
there is activity for those transaction types.
The IPM format does not require customers to provide expected reconciliation totals. Customers
optionally may provide hash totals for counts and amounts in PDS 0301 and PDS 0306 in their
outbound File Trailer/1644-695 messages to activate file integrity checks. However, the Global
Clearing Management System does not use this data in PDS 0301 and PDS 0306 as part of the
reconciliation process.

Reconciliation
File Currency Summary/1644-680 message
Reconciliation messages accumulate only accepted financial activity. Financial activity currently
includes the transaction functions shown in the table Currently Supported Transaction
Functions.
The reconciliation messages do not provide amount or count totals for non-financial message
types
• File Headers
• File Trailers
• Retrieval Requests, and
• Financial Detail Addenda.
NOTE: For more information about transaction functions, as identified by MTI and Function Code (DE
24), that qualify as financial activity, refer to the IPM Clearing Formats manual.
NOTE: The reconciliation messages report only accepted (not rejected) transaction message totals.
File Currency Summary/1644-680 message

This message provides a summary by transaction currency of the customer’s clearing financial
activity totals. Customers that choose to receive this type of message will receive one message
for each transaction currency that occurs, by logical file.
Both credit and debit totals are provided by transaction currency. Global Clearing Management
System determines the original amount and identifies it as a credit or a debit through the
processing code. Global Clearing Management System then calculates the credit and debit sums
for a given currency and places those sums in the appropriate amount elements in the File
Currency Summary message.
Financial Position Detail/1644-685 message

Customers may choose to receive the Financial Position Detail message. Global Clearing
Management System generates this message for both acknowledgment and notification
activity. Customers electing to receive these messages receive both types after each clearing
cycle cutoff.
Customers submitting the early reconciliation file option will receive acknowledgement
messages after the Global Clearing Management System completes the processing of the
physical file. These totals will not be repeated after the clearing cycle cutoff.
The Financial Position Detail/1644-685 message provides details of the customer’s clearing
financial activity by reconciliation categories.
There are multiple reconciliation categories, and all are optional. Customers may select
• up to nine categories for reconciliation messages reflecting customer inbound data (referred
to as Notification data), and
• up to 10 categories for reconciliation messages reflecting customer outbound data (referred
to as Acknowledgment data).

Reconciliation
Choosing clearing reconciliation categories
The Global Clearing Management System automatically provides all message amount totals for
the Financial Position Detail/1644-685 in the customer's reconciliation currency. If a customer
selects the Transaction Currency reconciliation category, the message will contain amount
totals for each unique pair of transaction currency and reconciliation currency for which there
was clearing activity.

For clearing reconciliation messages, customers may choose reconciliation categories separately
for acknowledgment messages and notification messages.
Customers that want to receive reconciliation totals for Mastercard settled, bilateral
settlement, and global collection only activity should request both the transaction currency
option and the settlement indicator option for IPM Financial Position Detail Reconciliation
messages to differentiate amount totals for each of these types of transactions.
Customers may select category options by contact their account manager or Mastercard
Customer Implementation Specialist.
The Global Clearing Management System generates a Financial Position Detail/1644-685
message for each unique combination of values for the selected reconciliation categories. For
example, a customer could select the reconciliation categories for acknowledgment and
notification messages as shown in the following table titled Example of Customer Reconciliation
Messages.
Example of customer reconciliation messages
Acknowledgment or
Notification Reconciliation Category
Notification Customer Activity
Notification Account Range:

54XXXXXXXXXXXXXXXXX - 54XXXXXXXXXXXXXXXXX
Note: Initially, account ranges will allow specification by 11-position
ranges; however, this field supports 19 positions for future use. Refer to
previous table titled Account Range Building for additional information
about building account ranges.
Notification Settlement Indicator (values B, C, and M)
Notification Original/Reversal Transactions
Notification Processing Code
Acknowledgment Customer Activity
Acknowledgment File ID
Acknowledgment Settlement Indicator (values B, C, and M)

Reconciliation
Acknowledgment or
Notification Reconciliation Category
Acknowledgment Original/Reversal Transactions
Acknowledgment Processing Code
For each combination of category, the Global Clearing Management System generates a unique
notification or acknowledgment Financial Position Detail/1644-685 message. For example, one
Financial Position Detail/1644-685 reconciliation message would contain totals for the
combination of one account range plus settlement indicator, another for a second account
range plus settlement indicator, and so forth.
Within the reconciliation categories for account range, customer activity, settlement indicator,
and processing code are multiple possible values. This can result in additional reconciliation
category combinations, generating additional Financial Position Detail/1644-685 messages.
This applies to all reconciliation categories.
For example, suppose that customer 001234 has selected the following reconciliation
categories for acknowledgment and notification messages and has clearing data as shown.
Reconciliation Category
Acknowledgment or Notification Selected Clearing Data Received/Sent
Notification Business Activity MCC and DMC
U.S.-U.S.
IRDs:
70 (Merit III) for MCC
78 (Merit I) for DMC
Notification Settlement Indicator (values B, C, M (Mastercard Settled): both

and M) MCC and DMC
Notification Original/Reversal Transactions O (original): MCC

R (reversal): DMC
Notification Processing Code (for example, Purchase: both MCC and DMC,
purchase or unique) USD 100 each
Acknowledgment File ID 00205290300123400001
Acknowledgment Settlement Indicator (values B, C, M (Mastercard Settled): both

and M) MCC and DMC
Acknowledgment Original/Reversal Transactions O (original): both MCC and DMC

Reconciliation
Acknowledgment or Notification Selected Clearing Data Received/Sent
Acknowledgment Processing Code (such as Purchase: both MCC and DMC,
purchase and unique) USD 50 each
Unique: MCC, USD 25
For each combination of categories, Global Clearing Management System generates a unique
notification or acknowledgment Financial Position Detail/1644-685 message.
In addition, within the reconciliation categories for business activity, settlement indicator,
original/reversal, and processing code are multiple possible values. These values can result in
additional reconciliation category combinations, generating additional Financial Position Detail/
1644-685 messages.
Using the selected reconciliation categories and specified values shown in the previous table,
Global Clearing Management System generates the following Financial Position Detail/
1644-685 messages.
Acknowledgment or Notification Received Clearing Data Totals Reported

Notification Message 1 USD 100: credit, IRD 70, Mastercard settled,
original, purchase transaction
Notification Message 2 USD 100: debit, IRD 78, Mastercard settled,

reversal, purchase transaction
Acknowledgment Message 1 USD 100: file ID, Mastercard settled, original,

purchase transactions
Acknowledgment Message 2 USD 25: file ID, Mastercard settled, original, unique
transaction
In the above example, when the customer does not select the business activity reconciliation
category, Global Clearing Management System will combine the reconciliation totals for
consumer credit transactions and point-of-sale (POS) consumer debit transactions. Global
Clearing Management System also combines the interchange fee amount totals for those
transactions. Conversely, when the business activity reconciliation category is selected, Global
Clearing Management System specifies the interchange fee amount totals with the associated
credit or POS debit transaction amount totals in the reconciliation messages.
Customers may receive IPM acknowledgment and notification reconciliation messages for POS
debit and credit activity within the same logical file. Customers selecting the Early
Reconciliation file option also may see acknowledgment messages for both POS debit and credit
activity in the same Early Reconciliation file from Global Clearing Management System.

Reconciliation
Settlement Position Detail/1644-688 message
Settlement Position Detail/1644-688 message

Customers may choose to receive the Settlement Position Detail/1644-688 message. Global
Clearing Management System generates this message for both acknowledgment and
notification activity. Customers electing to receive these messages will receive both types after
each clearing cycle cutoff.
The Settlement Position Detail/1644-688 message provides details of the customer’s
settlement financial activity by reconciliation categories giving the customer the ability to
reconcile settlement positions and tie back to the Settlement Advisement received from the
Mastercard Settlement Account Management (S.A.M.) system.
There are multiple settlement reconciliation categories. If a customer chooses to receive
Settlement Position Detail/1644-688 messages, the two default categories must be selected.
In addition to the default categories, customers may select up to five optional categories for
reconciliation messages reflecting customer inbound notification and outbound
acknowledgment data.
The Global Clearing Management System provides all message amount totals for the
Settlement Position Detail/1644-688 in the customer’s reconciliation currency. If a customer
selects the Transaction Currency reconciliation category, the message contains reconciliation
amount totals for each unique pair of transaction currency and reconciliation currency for which
there was settlement activity.
If the customer chooses this message option, a Settlement Position Detail message will be
generated only for transactions settled by Mastercard (PDS 0165 = M) after each clearing cycle.
Refer to the IPM Clearing Formats manual for a complete message layout for the Settlement
Position Detail/1644-688 message.
NOTE: The Settlement Position Detail/1644-688 Message will be delivered along with the customers’
normal activity at the end of each clearing cycle (Bulk Type T112) and will be included in the IPM Early
Reconciliation File (Bulk Type T113) if the customer has requested it.
Choosing settlement reconciliation categories

For settlement reconciliation messages, customers choose reconciliation categories that apply
to both acknowledgment messages and notification messages.
The Global Clearing Management System generates a Settlement Position Detail/1644-688
message for each unique combination of values for the selected reconciliation categories. For
example, a customer could select the reconciliation categories for messages as shown in the
following table titled Example of Customer Settlement Reconciliation Messages.
Example of customer settlement reconciliation messages

Reconciliation
Global Clearing Management System reconciliation reports
Account Range:
54XXXXXXXXXXXXXXXXX - 54XXXXXXXXXXXXXXXXX
NOTE: Initially, account ranges will allow specification by 11-position ranges, however this field
supports 19 positions for future use. Refer to previous table titled Account Range Building for
additional information about building account ranges.
Reconciled, File (PDS 0300) default category
Reconciled, Settlement Activity (PDS 0359) default category
For each combination of category, the Global Clearing Management System generates a unique
notification or acknowledgment Settlement Position Detail/1644-688 message. For example,
one Settlement Position Detail/1644-688 reconciliation message would contain totals for the
combination of one account range, one file ID, and settlement activity, another for a second
account range, file ID, and settlement activity, and so forth.
Customers may receive IPM acknowledgment and notification settlement reconciliation
messages for point-of-sale (POS) debit and credit activity within the same logical file.

The Global Clearing Management System reports supplement the reconciliation messages and
will facilitate customers’ internal reconciliation and balancing related to Mastercard.
Customers can request these reports in print image format. The print image format is a
standard 133-character print format that contains a one-position carriage control.
Customers can use the reports for both financial data reporting and for customer statistical
data capture for analysis within customer management information systems (MIS).
The Global Clearing Management System separates the clearing reports for accepted
transactions by acknowledgment and notification clearing data. The Global Clearing
Management System generates these reports upon completion of the applicable clearing cycle.
Once these reports are generated, the Global Clearing Management System sends them to the
customers that have requested them. These reports are optional.
Customers requesting the reports will receive them for each clearing cycle. The Global Clearing
Management System will transmit these reports using bulk types
• T140: Clearing Cycle Acknowledgement Report (production)
• T150: Clearing Cycle Acknowledgement Report (test)
• T140: Clearing Cycle Notification Report (production), and
• T150: Clearing Cycle Notification Report (test).
NOTE: Customers that request these reports will receive them after each clearing cycle.

Reconciliation
Although reconciliation messages may vary depending on customer reconciliation category

selections, the reports do not vary and always provide totals for all 11 of the reconciliation
categories shown in the following table titled Reconciliation Report Categories.
Customers will have the option to receive Global Clearing Management System reconciliation
reports for accepted clearing data and rejected clearing data.
Reconciliation report categories
Category Examples of Items in the Category

1 Card Program Identifier Mastercard, private label.
(Acceptance Brand)
2 Business Service Level Customer-to-customer, intracountry, intercountry, intraregional, interregional.
3 Business Service ID Business Service ID number.
4 Interchange Rate The ID assigned to the specific interchange program within the business
Designator agreement identified.
5 Transaction Function First presentment, first chargeback, second presentment.
6 Processing Code Purchase, ATM, Unique, Payment Transaction.
7 Original/Reversal Original transactions separated from reversal transactions.

Transactions
8 Settlement Indicator Settled by Mastercard, Bilateral, Global Collection Only.
9 Reconciliation Currency/ Reconciliation Currency alpha and numeric codes. These totals will reflect only
Code Mastercard settled transactions. Bilateral and Global Collection Only totals
are not provided in reconciliation currency.
10 Financial and Non- Financial transactions separated from non-financial transactions.

Financial Transactions
NOTE: Non-financial transactions include retrieval requests and financial
detail addenda.
11 Logical File ID Customer outbound logical file ID or customer inbound logical file ID.
The reconciliation reports are available for distribution to the customers upon request.
Customers can contact the Global Customer Service team or their regional office to request
these reports, detailed in the Global Clearing Management System Reconciliation Reports table
and in the report samples that follow.
If the customer chooses the option to receive reconciliation reports, detail IPM clearing reports
and a summary report will be generated for each of the six clearing cycles. These reports
supplement the IPM reconciliation messages and will facilitate reconciliation and balancing for
the customers.

Reconciliation
A seventh clearing cycle exists exclusively for Mexico domestic switching transactions. For more
information on the seven clearing cycles, refer to the Daily Clearing Cycle Schedule section.
Report Name Description Report No. Categorized by:

Clearing Cycle For transactions sent from the IP727010-AA • Transactions settled by
Acknowledgment Report customer’s processing site to Mastercard
Mastercard • Bilateral Transactions
• Global Collection Only
Transactions
• Non-Financial
Transactions
Clearing Cycle Notification For transactions sent to the IP727020-AA • Transactions settled by
Report customer's processing site Mastercard
• Bilateral Transactions
• Non-Financial
Transactions
Clearing Cycle Summary A summary of the clearing IP728010-AA N/A

Report cycle activity based on
completion of each clearing
cycle. The Global Clearing
Management System
generates one report per
clearing cycle per member ID.
IPM Messages Created On For customers that receive IP142110-AA N/A

Behalf of a Member acknowledgments for Fee
Collection/1740 messages
that they did not generate,
this report assists customers in
the reconciliation process.
Acquirer Funded Reward Aids acquirers in reconciling IP170010-AA N/A

Presentments Created On promotions that will be
Behalf of a Member merchant-funded, providing
acquirers with a recap of the
merchant-funded promotions.
On-behalf Service Fee Reconciliation summary report IP142520-AA N/A

Collection Report offered to acquirers in the
Europe region to allow
reconciliation and settlement
of their authorization and
clearing transactions.

Reconciliation
IPM clearing reports: Clearing Cycle Acknowledgment and Clearing Cycle Notification reports
IPM clearing reports: Clearing Cycle Acknowledgment and Clearing Cycle Notification reports
These reports are billable at USD 0.01 per line and are billed through the Mastercard
Consolidated Billing System (MCBS).

IP727010-AA Reconciliation Acknowledgment Report 2RP2216
IP727020-AA Reconciliation Notification Report 2RP2217
Customers may select report options by contacting their Mastercard customer implementation
specialist.
IPM clearing reports: Clearing Cycle Summary

The Clearing Cycle Summary, which is optional and is generated once per clearing cycle by the
Global Clearing Management System, provides customers with an additional reconciliation tool
by providing specific clearing totals summarized by clearing cycle.
This report includes reconciliation totals at
• Card Program Identifier (Acceptance Brand)
• Business Service Level
• Customer ID (sender or receiver)
• Logical file ID to Mastercard, or logical file ID from Mastercard, and
• Totals in the appropriate reconciliation currency, and that reconciliation currency code.
The Global Clearing Management System transmits the Clearing Cycle Summary reports using
bulk type T140 (for production) and T150 (for test).
This report is billable at USD 0.01 per line and is billed through the Mastercard Consolidated
Billing System (MCBS). The billing event number is as follows.

IP728010-AA Clearing Cycle Summary 2RP2218
Customers may select report options by contacting their account manager or Mastercard
NOTE: For each of the report samples that follows, field descriptions applicable to all of the report
pages follow the Summary page.

Reconciliation
Clearing Cycle Acknowledgment Report samples

These samples of the Clearing Cycle Acknowledgment Report show accepted totals.

Reconciliation
Clearing Cycle Acknowledgment Report (IP727010-AA), page 1: Mastercard Settled

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation
Clearing Cycle Acknowledgment Report (IP727010-AA), page 9: Global Collection Only

Transactions

Reconciliation
Clearing Cycle Acknowledgment Report (IP727010-AA), page 10: Global Collection Only
Transactions

Reconciliation

Transactions

Reconciliation

Transactions

Reconciliation
Clearing Cycle Acknowledgment Report (IP727010-AA), page 13: Non-financial Transactions

Reconciliation
Field Description
Acceptance Brand (Card The code for the Mastercard or proprietary service marks under whose
Program Identifier) umbrella transactions are processed. As an example, MCC (Mastercard
Credit) is a card program.
Business Service Level Identifies the interchange relationship for the business arrangement.
Examples are intracountry, intraregional, and interregional.
Business Service ID A unique code that identifies the specific interchange agreement
assigned to the transaction.
File ID The logical file ID to which the data in this report pertains.
Member ID The identifier that the association assigns to a customer (also referred
to as ICA number).
Settlement Indicator Identifies the settlement disposition of the reported transactions.

Values are Mastercard Settled, Global Collection Only (no settlement),
and Bilateral (no settlement).
Trans. Func. (Transaction The IPM Message Type Identifier and Function Code combination that
Function) defines the transaction. Examples of transaction functions are first
presentment, first chargeback, and second presentment.
Proc. Code (Processing Code) Describes the effect of a transaction on a customer account and the
type of account affected. Examples are purchase, credit, and ATM cash
withdrawal. All transactions are defined as either an original or a
reversal.
IRD The interchange rate designator defines the interchange program for
which the transactions were presented.
Counts The number of transactions accumulated for the applicable processing

code.
Recon. Amount (Reconciliation The total net amount (with fees applied) of the transactions in
Amount) reconciliation currency for the applicable processing code.
NOTE: Global Collection Only and Bilateral transactions are not
settled by Mastercard; therefore, the field contains a zero.
Recon. Currency Code The numeric and alpha ISO currency code associated with the
reconciliation currency (Always 840-USD for Global Collection Only and
Bilateral).

Reconciliation
Field Description
Trans. Fee (Transaction Fee) The total of the transaction fees applicable to the transactions for the
processing code.
Fee Curr. Code (Fee Currency The numeric and alpha ISO currency code associated with the fee
Code) currency (Always 840-USD for Global Collection Only and Bilateral).
Total The total count and net amount (with fees applied) of the transactions
and reconciliation currency for the applicable transaction function.
Subtotal The subtotal of the Mastercard settled, global collection only, or

bilateral transaction amounts for the specified business service level.

Reconciliation
Clearing Cycle Notification Report samples

These samples of the Clearing Cycle Notification Report show accepted totals.

Reconciliation
Clearing Cycle Notification Report (IP727020-AA), page 1: Mastercard Settled Transactions

Reconciliation

Reconciliation

Reconciliation
NOTE: This report is not available for customers submitting only Global Collection Only transaction
data.
Field Description
Examples are intracountry, intraregional, and interregional.
File ID The logical file ID to which the data in this report pertains.
to as ICA number).
Settlement Indicator Identifies the settlement disposition of the reported transactions.

Values are M: Mastercard Settled and B: Bilateral (no settlement).
Trans. Func. (Transaction The IPM Message Type Identifier and Function Code combination that
Function) defines the transaction. Examples of transaction functions are first
presentment, first chargeback, and second presentment.
Proc. Code (Processing Code) Describes the effect of a transaction on a customer account and the
type of account affected. Examples are purchase, payment credit, and
ATM cash withdrawal. All transactions are defined as either an original
or a reversal.
IRD The interchange rate designator defines the interchange program for
which the transactions were presented.
Counts The number of transactions accumulated for the applicable processing

code.
Recon. Amount (Reconciliation The total net amount (with fees applied) of the transactions in
Amount) reconciliation currency for the applicable processing code.
NOTE: Mastercard does not settle Global Collection Only and
Bilateral transactions; therefore, the field contains a zero.

Reconciliation
Clearing Cycle Summary Reconciliation Report (IP728010-AA)
Field Description
Recon. Currency Code The numeric and alpha ISO currency code associated with the
(Reconciliation Currency Code) reconciliation currency (Always 840-USD for Global Collection Only and
Bilateral).
Trans. Fee (Transaction Fee) The total of the transaction fees applicable to the transactions for the
processing code.
NOTE: Bilateral transactions are not settled by Mastercard;
therefore, the field contains a zero.
Fee Curr. Code (Fee Currency The numeric and alpha ISO currency code associated with the fee
Code) currency (always 840-USD for bilateral).
Total The total count and net amount (with fees applied) of the transactions
in reconciliation currency for the applicable transaction function.
Subtotal The subtotal of the Mastercard settled, global collection only, or

bilateral transaction amounts for the specified Business Service level.
NOTE: Mastercard does not settle Global Collection Only and
Bilateral transactions; therefore, the field contains a zero.

The Clearing Cycle Summary Reconciliation Report, which is optional and is generated once per
clearing cycle by the Global Clearing Management System, provides customers with an
additional reconciliation tool by providing specific clearing totals summarized by clearing cycle.
This report includes reconciliation totals at levels
• Acceptance Brand
• Business Service Level and ID
• Customer ID (sender or receiver)
• Logical file ID to Mastercard or logical file ID from Mastercard, and
• Totals in the appropriate reconciliation currency, and that reconciliation currency code.

Reconciliation
Clearing Cycle Summary Report (IP728010-AA), page 1

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation

Reconciliation
IPM Messages Created On Behalf of a Member Report (IP142110-AA)
NOTE: This report is not available for customers submitting only Global Collection Only transaction
data.
Field Description
Examples are intracountry, intraregional, and regional.
to as ICA number).
Cycle Activity The clearing cycle in which the file was processed by Global Clearing
Management System.
File ID To Mastercard The logical file ID of the file sent by the customer to Mastercard to
which the net amounts apply.
File ID From Mastercard The logical file ID of the file sent by Mastercard to the customer to
which the net amounts apply.
Net Reconciliation Currency The total net amount (with fees applied) of the transactions in
Amount reconciliation currency for the applicable logical file ID.
Reconciliation Currency Code The numeric and alpha ISO currency code associated with the
Clearing Day Total As Of The grand total net amount (with fees applied) for the specified
Clearing (001-006) clearing day as of clearing cycle NNN.

Customers that receive IPM Acknowledgment Reconciliation messages receive
acknowledgements for Fee Collection/1740 messages that they did not generate.
Mastercard creates this report to assist customers in their reconciliation process. The report is
generated in each clearing cycle and distributed as part of bulk type T140 (Production) and
T150 (Test) only if the customer had activity.

Reconciliation
Global Clearing Management System report IP142110-AA (IPM Clearing Messages Created On
Behalf of a Customer) has two additional receipt options:
• Text file available in raw data, variable length version. The bulk types are TN70 (Production)
and TN72 (Test) for outbound file delivery, and
• XML data file available in variable length version. The bulk types are TN66 (Production) and
TN68 (Test) for outbound file delivery.
The data files are created and distributed after each clearing cycle. The data files do not include
summary totals. If no data is available, the customer will receive a header and trailer only, with
record count 0.
When multiple customer IDs are packaged in a single file to the same endpoint, the data is
sequenced by customer ID. A header and trailer will be provided for each customer ID (as shown
for three customers in the following example).
XML or Raw Data File for Endpoint A

Header for customer 1
Detail for customer 1
... [detail information 1]
Trailer for customer 1
Both of the data files contain the same fields that are currently on the IP142110-AA report. In
addition, the data files contain the following fields. (These fields will not be added to the
IP142110-AA print report.

Reconciliation
Name Description
Central Site Processing Date of Contains the value in PDS 0025 (Message Reversal Indicator), subfield
Original Message 2 (Central Site Processing Date of Original Message). If PDS 0025,
subfield 2 is present because the transaction is being reversed, the
original message date is displayed.
File ID For the IP142110–AA report and data files, the File ID is the
Mastercard Source File ID. The File ID is found in PDS 0105 (File ID).
XML data file distribution

The XML file version of the report contains this data layout.
Record Type Field Name Field Format Field Value Justification

Header Record Type PIC X(1) H Left
Distribution ID PIC X(16) IP142110-AA Left
Member ID PIC 9(11) Right
Endpoint PIC X(07) Left

Reconciliation

Data Record Type PIC X(1) D Left
Transaction Originator Institution ID PIC 9(11) Right

Code
MTI PIC 9(04) Right
Function Code PIC 9(03) Right
Message Reason Code PIC 9(04) Right
File ID PIC 9(25) Right
CR DR Indicator PIC X(02) Left
Central Site Processing Date of PIC X(06) Left

Original Message
Transaction Type PIC X(02) Left
Processing Code PIC 9(02) Right
Transaction Amount PIC 9(12) Right
Transaction Currency Code PIC 9(03) Right
Currency Exponent PIC X(01) Left
Reconciliation Amount PIC 9(12) Right
Reconciliation Currency Code PIC 9(03) Right
Transaction Destination Institution PIC 9(11) Right

ID Code
Forwarding Institution ID Code PIC 9(11) Right
Fee Collection Control Number PIC 9(20) Right
Card Program Identifier PIC X(03) Left
Receiving Institution ID Code PIC 9(11) Right
MasterCom Control Number PIC X(07) Left
PAN PIC X(19) a Left

Reconciliation

Trailer Record Type PIC X(01) T Left
Distribution ID PIC X(16) IP142110–AA Left
Count PIC 9(12) Count of XML Right

data detail
records b
aSixteen-digit PANs will be left-justified with trailing spaces. If PAN is unavailable, the field will contain PAN NA.
b Count does not include Header/Trailer records.
Raw data distribution

The raw data version of the report contains this data layout.

Distribution ID PIC X(16) IP142110-AA Left

Reconciliation

Data Record Type PIC X(01) D Left
Transaction Originator Institution ID PIC 9(11) Right

Code
MTI PIC 9(04) Right
Function Code PIC 9(03) Right
Message Reason Code PIC 9(04) Right
File ID PIC 9(25) Right
CR DR Indicator PIC X(02) Left
Central Site Processing Date of PIC X(06) Left

Original Message
Transaction Type PIC X(02) Left
Processing Code PIC 9(02) Right
Transaction Amount PIC 9(12) Right
Transaction Currency Code PIC 9(03) Right
Reconciliation Amount PIC 9(12) Right
Reconciliation Currency Code PIC 9(03) Right
Reconciliation currency exponent PIC X(01) Left
Transaction Destination Institution PIC 9(11) Right

ID Code
Forwarding Institution ID Code PIC 9(11) Right
Fee Collection Control Number PIC 9(20) Right
Card Program Identifier PIC X(03) Left
Receiving Institution ID Code PIC 9(11) Right
MasterCom Control Number PIC X(07) Left
PAN PIC X(19) a Left

Reconciliation

Count PIC 9(12) Count of raw Right

data detail
records b
a Sixteen-digit PANs will be left-justified with trailing spaces. If PAN is unavailable, the field will contain PAN NA.
b Count does not include Header/Trailer records.

Reconciliation

Reconciliation
Field Description
Page No The page number within the report.
to as ICA number). DE 94 (Transaction Originator Institution ID Code).
MTI/Function Code/Reason Message Type Identifier, DE 24 (Function Code) and DE 25 (Message

Code Reason Code).
Transaction Type Identifies the type of transaction:

• RR = Retrieval Request
• CA = Case Filing/Member Mediation
• CO = Collection Letter
• FT = Funds Transfer
• UK = UK ATM On-behalf Service
• IV = Mexico IVA Fees
Processing Code DE 3 (Processing Code), subfield 1 (Cardholder Transaction Type).
Transaction Amount DE 4 (Amount, Transaction).
CR DR Indicator Indicates the amount as a credit or debit.
Currency The numeric ISO currency code associated with the transaction
currency. DE 49 (Currency Code, Transaction).
Reconciliation Amount DE 5 (Amount, Reconciliation).
CR DR Indicator Indicates the amount as a credit or debit.
Credit Debit Indicator Indicates the amount credit or debit for the customer.
Currency The numeric ISO currency code associated with the reconciliation
currency. DE 50 (Currency Code, Reconciliation).
Transaction Destination ICA DE 93 (Transaction Destination Institution ID Code).
Forwarding Institution ICA/ DE 33 (Forwarding Institution ID Code)/DE 100 (Receiving Institution

Receiving Institution ICA ID Code.
Fee Collection Control PDS 0137 (Fee Collection Control Number)/PDS 0241 (MasterCom
Number/MasterCom Control Control Number).
Number

Reconciliation
On-behalf Service Fee Collection Report (IP142520-AA)
Field Description
Card Program Identifier/PAN PDS 0158 (Business Activity), subfield 1 (Card Program Identifier)/DE
2 (Primary Account Number [PAN]).
Transaction Amounts The net total amount of the transaction in transaction currency for the
applicable logical ID file.
Reconciliation Amounts The net total amount of the transaction in transaction currency for the
applicable logical ID file.
Currency Code The numeric ISO currency code associated with the reconciliation
currency. DE 50 (Currency Code, Reconciliation).

This Global Clearing Management System reconciliation summary report (On-behalf Service Fee
Collection Report) is offered to acquirers in the Europe region to allow reconciliation and
settlement of their authorization and clearing transactions. Customers can sign up for this
report.
Acquirers will have the option to receive the consolidated clearing report, On-behalf Service Fee
Collection Report (IP142520-AA)
• in three clearing cycles per day (cycle 1, 3, and 5) and distributed as part of bulk type T140
(Production) and T150 (Test).
• on the next clearing cycle if there is an issue with the generation of the report on one of the
three cycles listed above, and
• by total transaction counts and amounts.
In addition to the On-behalf Service Fee Collection Report, the text file or XML data file format
can also be requested.
• Text file: available in raw data, variable length version. The bulk types are TN70 (Production)
and TN72 (Test) for outbound file delivery.
• XML Data file: available in variable length version. The bulk types are TN66 (Production) and
Customers should indicate their format preference by contacting their account manager or
Mastercard Customer Implementation Specialist. the Mastercard Customer Implementation
Services team.

Reconciliation
Miscellaneous Override Financial Adjustments Report (IP148320-AA)

The Miscellaneous Override Financial Adjustments report is available to customers each
processing day and is distributed as part of bulk file type T140.
The report provides detail about the Mastercard Fee Collection/1740 messages containing
message reason code 7808 in the Clearing Cycle Notification Report (IP727020-AA) that are
generated at the account range level.
Issuers and processors can elect to receive the Miscellaneous Override Financial Adjustments
Report. Customers should indicate their format preference by contacting their account
manager or Mastercard Customer Implementation Specialist. contacting the Mastercard
Implementation Services team.

Reconciliation
Clearing system report Miscellaneous Override Financial Adjustments report (IP148320-AA) has
two additional receipt options.
• Text file is available in raw data, variable length version. The bulk type is TN70 (Production).
• XML data file is available in variable length version. The bulk type is TN66 (Production).
The data files are created and distributed after each processing day. The data files do not
include summary totals. If no data is available, the customer receives a header and trailer only,
with record count 0.
When multiple customer IDs are packaged in a single file to the same endpoint, the data is
sequenced by customer ID. A header and trailer is provided for each customer ID (as shown for
three customers in the following example).
XML or Raw Data File for Endpoint A

The Miscellaneous Override Financial Adjustments Report (IP148320-AA) includes Settlement

Service and Submitted Fee Collection Amount.
The XML file version of the report will contain the data shown in the following layout.

Reconciliation
XML data file distribution

Detail Record Type PIC X(01) D Left
Member ID PIC X(11) Left
FEE-ADJ-SETTLE-SERVICE PIC X(10) Left
FEE-ADJ-ACCT-RANGE PIC X(38) Left
FEE-ADJ-CURR-CD PIC X(03) Left
FEE-ADJ-CURR-EXP PIC X(01) Left
FEE-TRX-CURR-CD PIC X(03) Left
FEE-TRX-CURR-EXP PIC X(01) Left
FEE-ADJ-ALIGN-EXP PIC X(01) Left
FEE-ADJ-AMOUNT-DR PIC 9(18) Right
FEE-ADJ-AMOUNT-CR PIC 9(18) Right
FEE-ADJ-AMOUNT-NET PIC 9(18) Right
FEE-ADJ-NET-DR-CR PIC X(02) Left
FEE-TRX-AMOUNT-DR PIC 9(18) Right
FEE-TRX-AMOUNT-CR PIC 9(18) Right
FEE-TRX-AMOUNT-NET PIC 9(18) Right
FEE-TRX-NET-DR-CR PIC X(02) Left

Reconciliation

Count PIC 9(12) Count of XML Right

data detail
records
The Raw Data version of the report will contain the data shown in the following layout.
Raw data file distribution

Distribution ID PIC X(16) IP148320–AA Right

Reconciliation

Detail Record Type PIC X(01) D Left
FEE-ADJ-SETTLE-SERVICE PIC X(10) Left
FEE-ADJ-ACCT-RANGE PIC X(38) Left
FEE-ADJ-CURR-CD PIC X(03) Left
FEE-ADJ-CURR-EXP PIC X(01) Left
FEE-ADJ-ALIGN-EXP PIC X(01) Left
FEE-TRX-CURR-CD PIC X(03) Left
FEE-TRX-CURR-EXP PIC X(01) Left
FEE-ADJ-AMOUNT-NET PIC 9(18) Right
FEE-ADJ-DR-CR PIC X(02) Left
FEE-TRX-AMOUNT-DR PIC 9(18) Right
FEE-TRX-AMOUNT-CR PIC 9(18) Right
FEE-TRX-AMOUNT-NET PIC 9(18) Right
FEE-TRX-NET-DR-CR PIC X(02) Left
Count PIC 9(12) Count of raw Right

data detail
records

Reconciliation

Reconciliation
Acquirer-funded Reward Presentments Created On Behalf of a Member Report (IP170010-AA)
Acquirer-funded Reward Presentments Created On Behalf of a Member Report (IP170010-

AA)
The Reward Presentments Created on Behalf of a Customer Report (IP170010-AA) aids
acquirers in reconciling promotions that will be merchant-funded, providing acquirers with a
recap of the merchant-funded promotions.
Acquirers have the option to receive the consolidated clearing report, Acquirer-funded Reward
Presentments Created on Behalf of a Customer Report (IP170010-AA).
• In each clearing cycle and distributed as part of bulk type T140 (Production) and T150 (Test)
only if the customer had activity.
• By transaction origination, customer reconciliation indicator (reward program ID), acceptor,
and transaction currency.
Totals are provided by transaction currency and reconciliation currency.
In addition to the Acquirer-funded Reward Presentments Created on Behalf of a Customer
Report, the text file or xml data file format can also be requested.
• Text file: available in raw data, variable length version. The bulk types are TN70 (Production)
and TN72 (Test) for outbound file delivery.
• XML Data file: available in variable length version. The bulk types are TN66 (Production) and
Consolidated on-request XML data file distribution
Customers who request a raw data file version of a report will receive the data using default
layouts.
Record Type Field Name Field Format Field Value

Header Filler PIC X(01) H
Distribution File PIC X(16) IP170010–AA: when Funds

Transfer Fee Collection
Member ID PIC X(11)
Endpoint PIC X(07)
Data Filler PIC X(01) D
Raw Data PIC X (varies by Contains raw data for the

layout) distribution file
Trailer Filler PIC X(01) T

Reconciliation
Consolidated on-request XML data file distribution
Record Type Field Name Field Format Field Value

Distribution File PIC X(16) IP170010–AA: when Funds
Transfer Fee Collection
Member ID PIC X(11)
IP702010-AA: when Merchant
Endpoint PIC X(07) Partner Program
Count PIC X(12) Count of raw data records
RAW DATA LAYOUT

Distribution File Raw Data Format Field
IP170010–AA FILLER PIC X(01) VALUE D
TRAN-ORIG PIC X(11)
FILE-ID PIC X(25)
ACCEPTOR PIC X(15)
REWARD-PGM PIC X(11)
MTI PIC X(04)
FUNC-CD PIC X(03)
PROC-CD PIC X(02)
TRAN-AMT PIC 9(12)
TRAN-CR-DR-IND PIC X(02)
TRAN-CUR PIC X(03)
RECON-AMT PIC 9(12)
RECON-CR-DR-IND PIC X(02)
FEE-IN-RECON-CUR PIC 9(12)
FEE-IN-RECON-CR-DR-IND PIC X(02)
FEE-IN-CALC-CUR PIC 9(12)
FEE-CALC-CUR PIC X(03)
FEE-IN-CALC-CR-DR-IND PIC X(02)
RECON-CUR PIC X(03)
TRAN-DEST PIC X(11)

Reconciliation
Using both IPM messages and reports to collect information
RAW DATA LAYOUT

Distribution File Raw Data Format Field
CARD-PGM-ID PIC X(03)
IP1702010–AA FILLER PIC X(01) VALUE D
MTI PIC X(04)
FUNC-CD PIC X(03)
PRIM-ACCT-NO PIC X(19)
PROC-CD PIC X(02)
TRANS-DATE PIC X(06)
ACQ-REF-NO PIC X(23)
IRD PIC X(02)
FUNDS-DIRECTION PIC X(02)
AMOUNT-RECON-FEE PIC X(12)
CURRENCY-RECON-FEE PIC X(03)
EXPONENT-RECON-FEE PIC X(01)
AMOUNT-TRANS-FEE PIC 9(12)
CURRENCY-TRANS-FEE PIC X(03)
EXPONENT-TRANS-FEE PIC X(01)
NOTE:
Customers that request an XML data file version of a report will receive the same data as above but in
XML format.
For customers that elect to receive the text file, when no data is present, the file will consist of a
header and trailer record with zero (0) for the record count.
Using both IPM messages and reports to collect information

Customers can use both the IPM reconciliation messages and the Global Clearing Management
System reports to derive information about customer and other activity, at different total
levels.
For example:

Reconciliation
Accumulating reconciliation totals
• The customer may choose to receive the IPM reconciliation message totals at the account
range level. Global Clearing Management System reconciliation reports provide totals at the
customer level but not at the account range level. Choosing the message totals at the
account range level provides the customer with a more detailed breakdown by customer
activity than Global Clearing Management System reports will provide.
• Global Clearing Management System reports provide count totals for non-financial
transactions, in addition to financial transactions. The IPM reconciliation messages do not
provide non-financial transaction detail. Thus, customers may request the IPM clearing
reports to obtain non-financial transaction count information to supplement the financial
count and totals information in the IPM reconciliation messages.
• Global Clearing Management System reports provide amount totals in the customer's
reconciliation currency. The IPM reconciliation messages provide amount totals in the
customer's reconciliation currency and optionally in the transaction currency. Customers
receiving both the Global Clearing Management System reports and the IPM reconciliation
messages can thus receive their amount totals in these currencies: transaction, reconciliation.
• The rejected transaction reports can provide customers with rejected transaction
information that accounts for the difference between the customer clearing data totals and
the accepted clearing data totals as reported by Mastercard. For example, suppose that
customer A submits financial transactions totaling USD 3,000.00. Customer A receives
acknowledgment reconciliation messages, which show processing of USD 2,500.00 financial
activity. Customer A can refer not only to the rejected transaction reports but also to the
customer inbound error messages to verify the source of the USD 500.00 difference.
NOTE: All of the reports referenced in the list above are available per clearing cycle and are not
available within the IPM Early Reconciliation File. Reconciliation messages are delivered according to
the customer's elected file delivery schedule.
Accumulating reconciliation totals

Details about the accumulation of reconciliation messages done by customers and processors
are described here.
NOTE: Customers and processors will need to accumulate reconciliation messages to derive a grand
total, by processor, for any of the reconciliation categories for the customers for which they process.
For example, suppose that customer or processor 001111 processes for customer ID 002222,
customer ID 003333, and customer ID 004444 and that Mastercard has set up the customers’
selected categories for notification messages in this way.
• Customer ID 002222: Set up to receive reconciliation totals by processing code and
settlement indicator.
• Customer ID 004444: Set up to receive reconciliation totals by processing code and
settlement indicator.
Although it is unlikely that a customer or processor would establish such a diverse set of
categories for each customer ID, this example illustrates the process for accumulating any set of
reconciliation totals.

Reconciliation
IPM reconciliation split
Processor
001111 Receives Settlement Originals/ Transaction
Member ID Record… Processing Code Indicator Reversals Function
002222 1 Purchase: USD 100.00 Settled by
Mastercard
Subtotal of Purchase Processing USD 100.00

Code for Customer ID 2222
2 ATM: USD 50.00 Settled by

Mastercard
Subtotal of ATM Processing Code USD 50.00

for Customer ID 2222
004444 9 Purchase: USD 100.00 Settled by

Mastercard
Subtotal of Purchase Processing USD 100.00

Code for Customer ID 4444
10 ATM: USD 50.00 Settled by

Mastercard
Subtotal of ATM Processing Code USD 50.00

for Customer ID 4444
Grand Total of Purchase USD 200.00

Processing Code for Customer ID
001111
To derive a total at the customer or processor level for any of the above reconciliation
categories, the customer or processor will need to accumulate and total each applicable
customer ID’s reconciliation category.
For example, to derive the notification totals by processing code of purchase for processor
001111, the processor must accumulate the notification totals by processing code for customer
ID 002222 and customer ID 004444.
NOTE: All summarization of totals occurs within the same currency.

PDS 0360 (Reconciled, Transaction Sequence Identifier) indicates that there has been a split in
the reconciliation total amount reported in reconciliation messages. The subfields indicate the
sequence and the total number of message splits.
For example: GCMS calculates a reconciliation amount of 19,999,999,999,999,999 (17 digits or
more). Then GCMS will split that single reconciliation amount into multiple amounts (in this

Reconciliation
case, specifically three amounts) and include each amount in three separate
1644-680/1644-685/1644-688 reconciliation messages. The sum total of those three amounts
will equal the total reconciliation amount.
Additionally, to simplify customer reconciliation processing, GCMS will insert new PDS 0360 into
each of those reconciliation messages to provide the sequence number of each related message
and the total number of messages pertaining to given split amount.
1. PDS 0360 subfield 1 = 00001, PDS 0360 subfield 2 = 00003 and Amount-PDSs* =
9999999999999999 (16
positions)
9999999999999999 (16
positions)
9999999999999999 (16
positions)
The total reconciliation amount can then be calculated as: 9,999,999,999,999,999 +
9,999,999,999,999,999 + 0000000000000001 = 19,999,999,999,999,999.
All of the related 1644-680/1644-685/1644-688 messages for a given split will always be sent
in the proper order and always sent together sequentially. Mastercard will never intermix
1644-680/1644-685/1644-688 messages from unrelated splits, nor will Mastercard ever
separate the messages belonging to a split with a single message that is not related to any split
whatsoever.
*Amount-PDS: Indicates amount PDS which are applicable for split like
0380/0381/0384/0390/0391/0392/0393/0394/0395/0396 for 1644 transactions.
Customers should check for the presence of PDSs for different transactions in the table.

Early Reconciliation
Chapter 17 Early Reconciliation

This section describes the Global Clearing Management System messages and reports and how they can
be used in the early reconciliation process.
Overview and summary.....................................................................................................................................381

Functionalities.....................................................................................................................................................381
T113 File contents and details.........................................................................................................................382
Comparison of T112 and T113........................................................................................................................383
Onboarding..........................................................................................................................................................384
Billing.....................................................................................................................................................................385

Overview and summary
Overview and summary
Early Reconciliation Service helps customers expedite their clearing reconciliation process. It
provides early acknowledgment summary of clearing transactions submitted to the Global
Clearing Management System (GCMS), and error messages. This service can provide balancing
information, error records, and can help customers and processors make their merchant prefund
decisions without waiting for the next GCMS cutoff and distribution of notification data.
It allows the customer to understand its settlement position for the file processed by
Mastercard and to correct, resubmit any errors that may be present without the constraint of
waiting for the next GCMS cutoff time.
The Early Reconciliation file is transmitted using bulk type T113.
As part of the Early Reconciliation Service customers can receive the Early Reconciliation file
after the St. Louis Operations Center has processed their outbound IPM logical clearing files,
without waiting until the Central Site clearing cutoff time to receive their reconciliation
messages. This option is available at the processor level. If a customer is its own processor, the
customer may also choose this option for itself.
*Time may vary depending upon various factors
Functionalities
Early Reconciliation Service (T113) provides:

T113 File contents and details
• IPM File Currency Summary/1644-680 message

• IPM Financial Position Detail/1644-685 message
• GCMS Rejects
– Message Exception/1644-691 along with the entire Original transaction/1240-200
– Full File Reject/1644-699 messages
• IPM Settlement Position Detail/1644-688 messages
For details of File Currency Summary, Financial Position Detail and Settlement Position Detail
refer to chapter 15 Reconciliation. For details on GCMS rejects refer to Chapter 2 Clearing
processing details -> Global Clearing Management system rejection of messages. For
information about the edits that apply to individual IPM messages, refer to the IPM Clearing
Formats manual.
Early Recon is available in two options:
• Option 1 – File Currency Summary/1644-680 and Financial Position Detail/1644-685
• Option 2 – File Currency Summary/1644-680, Financial Position Detail/1644-685, and
Settlement Position Detail/1644-688
Rejected Transaction Details are provided by default in both options of Early Reconciliation.
All message formats are the same as the reconciliation messages sent in customer inbound
clearing file (Bulk Type T113).
Acquirers and issuers can only select an acknowledgment message for their Early Reconciliation
Service that has been selected for their reconciliation message. For example, if a customer or
processor has not chosen to receive Settlement Position Detail/1644-688 message for their
reconciliation messages, they cannot choose to receive Settlement Position Detail/1644-688 in
their Early Reconciliation file.
T113 File contents and details
IPM Reconciliation messages are sent in Mastercard generated clearing files Bulk Type: T113.
Integrated Product Messages (IPM) is a variable-length format based on the ISO 8583–1993
specification.
Each IPM message contains data elements (DEs) and private data subelements (PDS).
One T113 file will contain multiple IPM messages distinguished by Message Type Identifier (MTI)
and Function Codes.
T113 File begins with a File Header/1644 and ends with a File Trailer/1644.
The messages are generated in a specific sequence. For details, please refer to Chapter 2 –
Creating IPM messages – Files generated by Mastercard – Sequence of the early reconciliation
file. Sequence of the early reconciliation file
For more details on the file format refer to the IPM Clearing Formats manual -> Chapter 1 for
IPM File Structure/Overview.

Comparison of T112 and T113
Important Data Elements specific to Early Recon

For an exhaustive list of data elements related to Reconciliation Messages refer to IPM Clearing
Formats manual Chapter 5, below are a few important ones:
1644/697 File Header:
PDS 0105 Subfield 1 (File Type) (1–3) = 003 (Early Reconciliation file: Generated by
Mastercard). *Different for local processing systems.
1644/680 File Currency Summary & 1644/685 Settlement Currency Summary:

PDS 0300 contains the PDS 0105 value submitted by the file originator in customer-generated
files. This can be used by customers to reconcile data.
DE93 is the institution that has an agreement with Mastercard as being a principal member
and has the financial authority to process transactions as an acquirer or issuer.
DE 100 contains the Customer ID or Processor ID of the physically connected processing facility
that receives a message.
1644/685 Settlement Currency Summary:

Reconciled Settlement Activity (PDS 0359) identifies in reconciliation messages the settlement
activity to which the reconciliation totals pertain. Apart from other sub fields, it contains
important values like Reconciliation Date, Reconciliation Cycle, Settlement Date, Settlement
Cycle, which are important to members making prefunding to merchants and in regions where
the settlement time frame is longer.
Comparison of T112 and T113

Table below provides a summary of important differences.
T112(Clearing Reconciliation
File) T113 (Early Reconciliation File)
Frequency Provided once per cycle Provided against every inbound
clearing file
Message Reason Codes Acknowledgment of Outbound Acknowledgment of Outbound
Activity (6861) Activity (6861)
& Notification to Inbound Activity
(6862)

Onboarding
T112(Clearing Reconciliation
File) T113 (Early Reconciliation File)
Message Types • File Currency Summary • File Currency Summary
• Financial Position Detail • Financial Position Detail
• Settlement Position Detail • Settlement Position Detail
• GCMS Rejects • GCMS Rejects
File Structure IPM IPM (Same as T112)

Reconciliation Categories As per the Message Type As per the Message Type. (Same
as T112)
The Global Clearing Management System does not duplicate the messages provided in the early
reconciliation files when it creates the customer inbound clearing files at cycle cutoff times. The
customer will receive the message only once. Reconciliation messages not selected in Early
Reconciliation will be delivered within the customers inbound file from Mastercard (T112) based
on customer selection.
Migration from T112 to T113

Existing member banks and processors consuming acknowledgment messages in T112 can
consume them through T113. T113 helps segregation of reconciliation for Acknowledgment
messages and Notification messages.
For details refer to the onboarding and enrollment section in the chapter, customer needs to be
aware of the following points:
• The bulk type consumed by the customer needs to be changed (T112- T113).
• While consuming T113, the File header (PDS 0105 SF1 value) would need to be changed
from 001 (T112) to 003 (T113). Refer to IPM Formats for more details.
• Configuration at Mastercard needs to be changed to enable T113. Refer to the on-boarding
section for more details.
• Customer needs to move from cycle-based processing to file based processing. As an
optional step Members/Processors can also have a look at the Reconciliation Categories that
they want to consume (this is optional and the default values would be the same as T112).
• Processing frequency at the customer end might need to change depending upon the
frequency of the files being sent by the member bank and the processor.
• T113 will only contain the Acknowledgment of Outbound Activity, if Members or Processors
want notification of inbound activity they still need to consume data from T112 in addition
to T113.
Onboarding
Customers may enroll in the Early Reconciliation Service by contacting their account manager or
Mastercard Type, Customer Implementation Specialist (CIS). Customers may work with their

Billing
CIS specialist and select the Early Reconciliation file option in the Automatic Parameter
Worksheet (APW form) under Clearing Options. Customers need to select one out of the two
options in which they want to consume T113 files.
Customers can change Reconciliation Categories during onboarding that are available in APW.
Customers can also choose to continue with the same Recon Categories.
Refer to chapter 15 to learn more about the various default, optional, and recommended
reconciliation categories by which customers can receive Financial Position Detail/1644-685,
and Settlement Position Detail/1644-688 message.
Billing
Early Reconciliation is billed through the Mastercard Consolidated Billing System (MCBS).
Current rates are listed in the Pricing Guide on the Pricing and Billing Resource Center. The billing
event identifiers are as follows.
Billing event Description

2GC1240ER Early Reconciliation Service Fee

Cross-Border Fee Manager service
Chapter 18 Cross-Border Fee Manager service

Issuers have the option to enroll in the Cross-Border Fee Manager service, an on-behalf service that
allows the application of issuer-determined cardholder fees for cross-border and currency conversion
transactions.
Cross-Border Fee Manager service overview.................................................................................................387

Cross-Border Fee Manager service enrollment............................................................................................. 388
Cross-Border Fee Manager service reports................................................................................................... 389
Cross-Border Fee Manager service bulk files.................................................................................................391

Cross-Border Fee Manager service overview
Cross-Border Fee Manager service overview

The Cross-Border Fee Manager service allows issuers to have the flexibility to set markup fees
for both currency-conversion and cross-border transactions, taking into account a variety of
parameters.
• Account range for Mastercard, Debit Mastercard, Maestro, and Cirrus acceptance brands
• Transaction currency
• Region differentiation (for example, intraregional versus interregional)
• Processing groups (for example, point-of-sale [POS], ATM, card-present, card-not-present,
and so on)
In combination with the default service in Clearing, issuers can select Authorization as an option.
Markup fees are added to the cardholder billing amount (DE 6) without any impact to other
data fields within the authorization. The markup amount provided within Authorization serves
as an estimate and may differ slightly from the amount within Clearing due to fluctuations
within the currency conversion rates used to calculate the final issuer markup.
Issuers may use any combination of the Currency Conversion Method, Cross-Border Flex
Method, or both to set the markup rates for cross-border and currency conversion transactions
and to add the associated fees to the total cardholder billing amount.
• Currency Conversion Method: Allows issuers to charge cardholders a percentage rate, fixed
amount, or both by applying a markup to currency-converted transactions that may be
further filtered by setup parameters.
• Cross-Border Flex Method: Allows issuers to charge cardholders an additional percentage
rate, fixed amount, or both by applying a markup to cross-border transactions that may be
further filtered by setup parameters.
Both of these methods are provided in message types
• First Presentment/1240 (including reversals and credits) and
• First Chargeback/1442.
Issuers can optionally set up to three different markup fee overrides based on any transaction
currency at the account range level for both authorization and clearing. If the transaction
currency matches the override currency, the markup fee override is used to calculate the markup
versus the issuer's default service setting for all other currencies. Issuers may use these
overrides to change the existing markup fee setup or even nullify the markup service (using a 0
percent override) for lower risk currencies, or to increase the fee for higher risk, volatile
currencies.
Mastercard calculates the currency conversion method and cross-border flex method amounts
based on the markup services the issuer opts into and fees established by the issuer at the
account range level. Mastercard incorporates these calculated amounts into DE 6 (Amount,
Cardholder Billing).

Cross-Border Fee Manager service enrollment
Method Description Condition of Application Markup Calculation

Currency Conversion Method DE 49 (Currency Code, Percentage rate, fixed amount, or
Transaction) is different from DE both
51 (Currency Code, Cardholder
Billing)
Cross-Border Flex Method DE 43, subfield 6 is different Percentage rate, fixed amount, or
from the issuer country code both
(defined at account range level)
NOTE: The Cross-Border Flex Method does not apply to intra-European transactions where the
country codes of the merchant and the account range are both in the extended Eurozone (Euro
countries plus Sweden) and the transaction currency is euros (EUR).
By participating in either of the methods (Currency Conversion Method and Cross-Border Flex
Method), issuers have the option to use a combination of parameters at an account range level,
which can be applied to the total cardholder billing amount, including
• Account range for Mastercard, Debit Mastercard, Maestro, and Cirrus acceptance brands
• Region differentiation
• Processing groups (for example, point-of-sale [POS], ATM, card-present, card-not-present,
and so on)
• Transaction currency, and
• Region identifier.
For both of these methods, issuers can apply different fees for intraregional and interregional
identifiers.
Cross-Border Fee Manager self-service application
Issuers that participate in the service have the capability to change their Cross-Border Fee
Manager markup rates at the account range level within an existing service setup, using a self-
service application on Mastercard Connect™. To expedite rate changes, issuers can view their
current rates and change markup rates up to two decimal positions and set zero rates for
account ranges that are already enrolled in the Cross-Border Fee Manager service.
NOTE: Rate changes become effective within 48 hours after the rate changes are made in the self-
service application.
Cross-Border Fee Manager service enrollment

The Cross-Border Fee Manager Customer Form (Form 1155d), available on Mastercard
Connect™, must be completed and submitted before issuers can participate in the currency

Cross-Border Fee Manager service reports
conversion method, cross-border flex method, or both as part of the cross-border fee manager
service.
This form should be submitted to the issuer’s local customer delivery manager.
NOTE: Issuers may only participate in the currency conversion method and the cross-border flex
method where permitted by local regulations.

Issuers can choose to receive daily audit report files that align with each clearing cycle from
Global Clearing Management System.
This audit report will be available for the clearing transactions for which the Cross-Border Fee
Manager calculation was performed.
Bulk file TN70 on request report data file transfer raw format
Header record

1 an-17 Value HIP830020
2 an-11 ICA
3 an-07 Endpoint
Detail record

1 a-01 Value D
2 an-11 ICA
3 an-04 MTI Code
4 an-03 Function Code
5 an-08 Processing Date
6 an-19 Primary Account Number
7 n-02 Process Code
8 n-11 Issuer ICA
9 an-01 Reversal Indicator
10 an-03 Filler


11 an-06 Transaction Date
12 an-04 Transaction Time
13 an-03 Merchant Country Code
14 an-09 Banknet Reference Number
15 n-12 Transaction Amount
16 an-03 Transaction Currency Code
17 an-01 Transaction Currency Exponent
18 n-12 Reconciliation Amount
19 an-03 Reconciliation Currency Code
20 an-01 Reconciliation Currency Exponent
21 an-12 Cardholder Billing Amount
22 an-03 Cardholder Billing Currency Code
23 an-01 Cardholder Billing Currency
Exponent
24 an-08 Filler
25 n-12 Currency Conversion Method
Amount (% Rate)
26 n-15 Currency Conversion Method %
Rate
Amount (Fixed Rate)
Fixed Rate
29 n-12 Cross-Border Flex Method
Amount (% Rate)
30 n-15 Cross-Border Flex Method %
Rate
31 n-12 Cross-Border Flex Method
Amount (Fixed Rate)
32 n-12 Cross Border Flex Method Fixed
Rate
33 n-12 Cross-Border Cost Method
Amount (% Rate)

Cross-Border Fee Manager service bulk files

34 n-15 Cross-Border Cost Method %
Rate
Mastercard does not calculate a rate or amount if DE 22 (Point of Service [POS] Entry Mode]),
subfield 6 (Card Present Data) contains value 9 (Unknown; data unavailable), but the
transaction is included in report IP830020. This assists issuers with identification of why the
markup was not applied.
Trailer record

1 an-17 Value of TIP830020
2 an-11 ICA
3 an-07 Endpoint
4 an-12 Total of detail records only
Cross-Border Fee Manager service bulk files

Mastercard has added report IP830020 to bulk file TN70 for production and bulk file TN72 for
testing.

Mastercard Cardless ATM Program
Chapter 19 Mastercard Cardless ATM Program

This section provides information on the Mastercard Cardless ATM program, which allows cardholders to
use an issuer’s mobile banking app to withdraw cash from their enabled ATM without the need of a
physical card.
Mastercard Cardless ATM program overview................................................................................................393

Mastercard Cardless ATM Program
Mastercard Cardless ATM program overview
Mastercard Cardless ATM program overview

The Mastercard Cardless ATM program is a digital ATM solution that provides improved security,
convenience, and transparency to consumers, drives engagement in the mobile banking app, and
reduces time and cost of teller service cash disbursements for issuers.
For ATM acquirers, the Mastercard Cardless ATM program allows them to meet the increased
security expectations of issuers and consumers and leverages the use of existing network
capabilities for authorization, settlement, and reconciliation.
Participation in the Mastercard Cardless ATM program is on an opt-in basis.
Functionality
Mastercard enables an issuer and ATM operator to allow cardholders to view the fee of an ATM
cash withdrawal in advance of conducting the transaction from an enabled ATM using their
mobile banking app. Cardholders initiate the withdrawal using their mobile banking app after
their arrival at the ATM or any time in advance of the withdrawal. At the ATM, cardholders scan
a Quick Response Code (QR) code or manually enter a code displayed on the ATM. After viewing
any transaction fees in their mobile banking app, cardholders authenticate the withdrawal using
their mobile device. Mastercard passes the token and details of the withdrawal to the ATM
operator about the authorization request. If the transaction is approved by the issuer, the ATM
dispenses cash to cardholders.
The Mastercard Cardless ATM program supports cardless cash withdrawals initiated on the
Mastercard Network or those received from alternate networks via the Mastercard Shared
Service Platform (MSSP) or Alternative Network Routing Solution (ANRS) protocols.
For additional information on the program, refer to Cardless ATM Program Guide.

Mastercard ATM Cash Pick-Up service
Chapter 20 Mastercard ATM Cash Pick-Up service

This section provides information on the Mastercard ATM Cash Pick-Up service, which allows money to
be sent to individual recipients who obtain their funds from an ATM which has been upgraded with the
ATM Cash Pick-Up software.
Mastercard ATM Cash Pick-Up service overview.......................................................................................... 395

Mastercard ATM Cash Pick-Up service
Mastercard ATM Cash Pick-Up service overview
Mastercard ATM Cash Pick-Up service overview

The Mastercard ATM Cash Pick-Up service allows money to be sent to individual recipients who
obtain their funds from an ATM which has been upgraded with the ATM Cash Pick-Up software.
Recipients receive a code (for example, Short Message Service [SMS] text message), which they
enter into the ATM; therefore, they do not need a debit card or relationship with a bank to
receive funds.
The Mastercard ATM Cash Pick-Up Service provides multiple use cases for customers engaging
in the service, including
• Relief Fund Disbursement
• Emergency Cash Assistance
• Cash Rewards
• Person to Person Payments
• Small Insurance Claims
• Government Aid Payments/Social Benefits, and
• Compensation.
Mastercard provides customers with the ability to uniquely identify ATM withdrawal
transactions initiated via the Mastercard ATM Cash Pick-Up Service using a new payment type
value P01 (ATM Cash Pick-Up Transaction) in DE 48 (Additional Data), subelement 77
(Transaction Type Identifier) for the Dual Message System (Authorization) and Single Message
System and in PDS 0043 (Transaction Type Identifier) for the Dual Message System (Clearing).
Issuers that participate in the Mastercard ATM Cash Pick-Up service find payment type value
P01 in DE 48, subelement 77 for Mastercard ATM Cash Pick-Up transactions in message types
• Authorization Request/0100
• Authorization Request Response/0110
• Reversal Request/0400, and
• Reversal Request Response/0410.
Acquirers that participate in the Mastercard ATM Cash Pick-Up service must support payment
type value P01 in DE 48, subelement 77 for Mastercard ATM Cash Pick-Up transactions in
message types
• Financial Transaction Request/0200 and
• Acquirer Reversal Advice/0420: acquirer initiated.

Fee collection
Chapter 21 Fee collection

Various IPM messages are used for fee collection.
Fee collection overview......................................................................................................................................397

Fee collection messages for retrieval fee billing............................................................................................397
Fee collection messages for purposes other than retrieval fee billing...................................................... 397
Presenting the Fee Collection/1740 message.............................................................................................. 398
Returning and resubmitting the Fee Collection/1740 message................................................................398
Reason codes for fee collection........................................................................................................................400
Global Clearing Management System minimal rounding...................................................................... 400
Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782......................401
Fee Collection (Clearing System-generated)/1740–783...................................................................... 419

Fee collection
Fee collection overview
Fee collection overview

The Global Clearing Management System collects all fees through fee collection messages. This
includes retrieval fee billing transactions, as well as all other fee types.
The combination of message type indicator (MTI), DE 24 (Function Code), and DE 25 (Message
Reason Code) in the fee collection message indicates the fee that is being collected.
Fee collection messages are IPM messages used for the collection or disbursement of fees that
require funds settlement between various payment parties. These messages include fees
generated between pairs of customers and fees generated between Mastercard and customers.
NOTE: Mastercard does not provide or validate history for fee collection messages, although the
sender may optionally provide it.
Fee collection messages for retrieval fee billing

Customers are allowed to submit IPM Fee Collection (Retrieval Fee Billing)/1740 messages for
specific document types.
Acquirers may not submit IPM Fee Collection (Retrieval Fee Billing)/1740 messages for
• Document type 2 (copy) and
• Document type 4 (substitute draft).
However, customers may continue to submit these messages for document type 1 (hard copy
original document) at a rate of USD 15 each.
Fees for document types 2 (copy) and 4 (substitute draft) are collected through the Mastercard
Consolidated Billing System (MCBS). The Mastercom electronic imaging system does not
generate any fulfillment fee IPM messages or records.
Mastercard applies a tiered rate structure to fulfillment fee messages (applies to types 2 and 4),
depending on the type of document and number of days for fulfillment.
Fee collection messages for purposes other than retrieval fee billing
Customers must settle all miscellaneous fees and charges by use of the IPM Fee Collection/
1740 message. The fee collection message is used for a number of diverse applications, and it
contains the information required for customers to process the miscellaneous fees and charges
identified in DE 25 (Message Reason Code).
Within the IPM Fee Collection/1740 message, DE 25 indicates the reason for, or type of, fee
collection. DE 3 (Processing Code), subfield 1 (Cardholder Transaction Type) indicates the
direction of funds movement, such as debit to message originator or credit to message
originator.

Fee collection
Presenting the Fee Collection/1740 message
Presenting the Fee Collection/1740 message

The message originator must submit the entire Fee Collection/1740 message with function
code 700, providing the appropriate information for each element.
The message originator always must provide a control number for returns and resubmissions
and must retain the control number for audit trail purposes. The message originator provides
this control number in PDS 0137 (Fee Collection Control Number). The contents of PDS 0137
are assigned at the discretion of the message originator.
If the fee collection message requires supporting documentation, the message originator must
mail the documentation according to the instructions on the specific ICA form or as specified in
this chapter. The message originator should clearly note the PDS 0137 value on all of the
documentation to allow the receiving customer to readily match the documentation to the
applicable message and transaction.
If the transaction amount exceeds the U.S. dollar maximum for each message reason code, an
additional message or messages reflecting the same DE 25 (Message Reason Code) value
should be submitted for the excess amount.
NOTE: Transaction amount maximum can be set in currencies other than U.S. dollar. All Fee Collection/
1740 message with function code 700 transaction amount maximum settings can be viewed in the IPM
MPE Table IP0097T1: Message Reason Code Restrictions for Card Program Identifier and Business
Service Arrangement.
Returning and resubmitting the Fee Collection/1740 message

Reference these tables and figures for information regarding returning and resubmitting the Fee
Collection/1740 message and the values that may be entered in DE 24 (Function Code).
Customers may return or resubmit a fee collection message by sending a Fee Collection/1740
message with one of these DE 24 values.
• 700 = First Submission
• 780 = Return
• 781 = Resubmission
• 782 = Arbitration Return

Fee collection
Returning and resubmitting the Fee Collection/1740 message
Submitting the Fee Collection/1740 Message
1. The receiving customer may return a fee collection within 45 calendar days after receipt of
the message for any of the following reasons. This is handled by sending a Fee Collection/
1740 with the same data originally received, except that DE 24 must contain a value of 780
to indicate a return.
– Supporting documentation not received. The receiving customer must wait 21 calendar
days from the date the message is received before returning for this reason.
– Missorted to wrong member.
– The message text was not provided or was incomplete.
– Fee charged exceeds amount allowed.
– Fee inaccurate because of entry error.
– Charged twice for same fee.
– Past applicable time frame.
– An erroneous or inappropriate progressive handling fee was received.
– Unauthorized fee/charge: receiving member did not approve or agree to accept fee/
charge. Applicable only to reason codes for good-faith acceptance (DE 25 = 7606) and
for collection letters (DE 25=7607).
2. If a fee collection is returned for any of the previously-mentioned reasons, the receiving
customer may resubmit it within 45 calendar days of receipt of the message but only if the

Fee collection
Reason codes for fee collection
reason for return has been corrected (For example, the receiving customer has supplied the
missing documentation or the correct amount). To resubmit the fee collection, the customer
sends a Fee Collection/1740 with a DE 24 value of 781 to indicate a resubmission. The
customer should indicate an explanation of the correction in DE 72 (Data Record).
3. If a fee collection is improperly resubmitted, it may be returned within 45 calendar days of
receipt of the message, using the arbitration return. Before returning the fee collection for
missing documentation, the receiving customer must wait 21 calendar days from the date
the customer receives the message. To return the fee collection, the customer sends a Fee
Collection/1740 with a DE 24 value of 782 to indicate an arbitration return. The customer
should indicate an explanation in DE 72.
Mastercard does not permit a third submission (the second submission being in step 2, above).
Any remaining unsolved disputes concerning the fee collection message may be pursued by the
customer through a compliance case filing with Mastercard.
NOTE: For case filings initiated for a violation of this subsection, the good-faith correspondence is not
required. For more information about filing procedure, refer the Chargeback Guide.
The sending customer must reverse any Fee Collection/1740 message that is duplicated in error.
The customer handles this by processing a duplicate of the message originally processed, except
that the customer enters the letter R in PDS 0025 (Message Reversal Indicator), subfield 1
(Message Reversal Indicator). This denotes a reversal transaction.
NOTE: For more information about reversals, refer to the Reversals chapter of the Global Clearing
Management System Reference Manual.
Reason codes for fee collection

The following tables describe the DE 25 (Message Reason Code) values that apply to fee
collection messages.
Global Clearing Management System minimal rounding

Global Clearing Management System rounds to the number of positions specified by the
currency exponent.
• After Global Clearing Management System calculates a cash disbursement fee
• After Global Clearing Management System completes the calculation of acquirer and issuer
payment amounts in acquirer/issuer payment currency
• After Global Clearing Management System completes the calculation of a cardholder billing
amount
• After Global Clearing Management System completes the calculation of an interchange fee
in issuer/acquirer payment currency

Fee collection
Fee Collection Return/1740–780 and Fee Collection Arbitration Return/1740–782
NOTE: When Global Clearing Management System converts the transaction amount in transaction
currency to the (euro) issuer/acquirer payment currency, Global Clearing Management System first
converts the amount to the base currency (USD), and carries six positions to the right of the decimal
(no rounding). Then Global Clearing Management System converts the USD base amount to the euro,
and rounds to the euro currency exponent.
Global Clearing Management System only rounds amounts to the number of positions to the
right of the decimal point specified by the currency exponent, once they are calculated in the
final (issuer/acquirer payment currency, cardholder billing currency) currency, as shown in the
following table.
Global Clearing Management System minimal rounding to currency exponent
IF Global Clearing THEN Global Clearing Management System rounding to the nearest currency
Management System exponent...
has…
Calculated interchange Occurs after Global Clearing Management System has completed calculation of
fees in payment the interchange fee in acquirer/issuer currency.
currencies
Calculated an Acquirer/ Occurs after Global Clearing Management System has completed calculation of
Issuer payment the acquirer/issuer payment amount.
Calculated a Cardholder Occurs after Global Clearing Management System has completed calculation of
billing amount the cardholder billing amount.

This table describes the DE 25 (Message Reason Code) values that apply to Fee Collection
Return/1740–780 and Fee Collection Arbitration Return/1740–782 messages.
1740 message transaction amount maximum settings can be viewed in the IPM MPE Table IP0097T1:
Message Reason Code Restrictions for Card Program Identifier and Business Service Arrangement. For
example, the maximum amount for MRC 7601 for Europe intraregional business services for MCC and
DMC acceptance brand is EUR 115.
DE 25 7600
Lost/stolen telex/phone fee; for collection of lost stolen report fee and phone or telex costs
incurred for taking a lost or stolen card report.
Maximum USD 65
Amount
DE 3 19 (credit to message originator)

Fee collection
DE 72 Position Length Contents
1-32 32 LOST/STOLEN CARD TRANSACTION FEE
33 1 Space
34-100 67 When the cardholder number is absent, the cardholder name and address
should be placed in this field.
DE 73 Date lost/stolen report was taken
DE 25 7601
Recovered card award fee; for collection of reward for a acceptor or financial institution
employee when a card has been recovered.
Maximum USD 115

Amount
Required Message Data:
1 1 Card type code:
1 = Mastercard® Card
3 = Gold Mastercard® Card
4 = Mastercard BusinessCard® Card or Mastercard Corporate

Card®
5 = Mastercard Corporate Purchasing Card®
6 = Mastercard Corporate Fleet Card®
7 = Platinum Mastercard® Card
8 = World Mastercard®Card
2 1 Space
3-6 4 Valid MCC; refer to the Quick Reference Booklet for a current listing.
Valid MCC; refer to the Quick Reference Booklet for a current listing.
7 1 Space
8 1 Card recovery reason:
1 = warning bulletin listing
2 = authorization response

Fee collection
4 = code
5 = authenticator
6 = non-hologram
0 = other
Optional Message Data:
9 1 Space
10-31 22 Name of acceptor recovering card; space-filled if not applicable
32 1 Space
33-45 13 Acceptor’s City
46 1 Space
47-49 3 Alphabetic; U.S. state or country code if outside the U.S. region; left-
justified with trailing spaces
50 1 Space
51-100 50 Message text
DE 73 Date card was recovered as recorded on ICA-6 form
DE 25 7602
Emergency cash disbursement fee; for collection of fees associated with the handling of
emergency cash disbursements to cardholders.
Maximum USD 5,000

Amount
Reason Code Fee Description
1 1 A USD 95 US ECA-$65 BASE FEE, $30 LOCATION FEE1
B USD 95 NON-US ECA-$65 BASE FEE, $30 LOCATION

FEE1
C USD 50 ECA REQUEST CANCELED/DENIED (US

REGION)
D USD 50 ECA REQUEST CANCELED/DENIED (NON-US

REGION)
E USD 50 REFERRED TO U.S. ISSUER BY REQUEST

Fee collection
F USD 50 REFERRED TO NON-U.S. ISSUER BY REQUEST
G USD 95 ECA AMOUNT TO CARD-HOLDER VIA WESTERN

UNION
H-Z Reserved for future use
2-100 99 Spaces
DE 73 Emergency cash disbursement date
DE 25 7603
Compliance ruling settlement; for collection of a compliance ruling settlement amount.
Maximum USD 5,000

Amount
1-11 11 Mastercard case number (for example, 31234-001-9)
12 1 Space
13-100 88 Optional message text as may be needed
DE 73 Compliance Ruling Date
DE 25 7604
Emergency card replacement fee; for collection of fees associated with the Emergency Card
Replacement Service (ECR Service).
Maximum USD 25,000

Amount
1 1 Reason Code:
A = issuance of emergency card
B = emergency cash disbursement not picked up
C = emergency card cancelled
D = second location ECR request
E = issuer denies ECR request
F = referred to card issuer outside the U.S. region

Fee collection
G = delivery of card within the U.S. region
H = delivery of card outside the U.S. region
I = initial member participation fee
J = monthly member participation fee
K = installation and training fee
L = survey statistics
M-Z reserved for future use
2–100 99 Spaces
DE 73 Emergency card replacement date
DE 25 7605
Warning bulletin handling fee: issuer originated; for settlement of warning bulletin handling fees
in accordance with Mastercard operating rules.
Maximum USD 25
Amount
1 1 Reason Code:
A = incorrect acceptor location
B = incorrect transaction date
C = combination of A and B
2 1 Space
3-25 23 Acquirer Reference Data (ARD)
26 1 Space
27-36 10 Chargeback reference number
37-100 64 Spaces
DE 73 Second presentment Central Site processing date
DE 25 7606
Good-faith acceptance settlement; for settlement of the amount of a good-faith acceptance.
Maximum USD 5,000

Amount

Fee collection
DE 3 19 (credit to message originator), 29 (debit to message originator)
For both credit to message originator and debit to message originator
1-31 31 Reference number and the name of the person who gave acceptance
32 1 Space
DE 73 Good-faith date
DE 25 7607
Collection letter handling fee; for settlement of the amount of a collection letter acceptance.
Maximum USD 5,000

Amount
For both credit to message originator and debit to message originator:
1-11 11 Collection letter reference number
12 1 Space
DE 73 Collection letter date
DE 25 7608
Telex authorization fee; for collection of fees associated with an international telex authorization.
Maximum USD 20
Amount
1-33 33 Telex reference number and response
34-100 67 Spaces
DE 73 Authorization Request Date
DE 25 7610
Investigation fee; for fee collection when an investigation report has been completed by an
investigating member on behalf of the requesting member.

Fee collection
Maximum USD 1,000

Amount
1-19 19 INVESTIGATION FEES
20-100 81 Spaces
DE 73 Investigation request date from ICA-7A form
DE 25 7611
Retrieval fee reversal; issuer-originated; acquirer may return. For acquirer use when returning an
invalid or incorrect retrieval fee reversal; applicable only if the previous cycle message reason code
was 7611, or
For issuer use when returning an invalid or incorrect non-MasterCom fulfillment fee settlement;
applicable only if the previous cycle message reason code was 7614.
Maximum USD 15
Amount
1 1 Reason Code:
A = nonreceipt of document
B = illegible document
C = invalid acceptor description
2 1 Space
3-25 23 ARD
26 1 Space
27-36 10 Issuer control number
37-100 64 Spaces
DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the Central Site processed Retrieval Fee
Billing/1740-700 message.
DE 25 7612

Fee collection
Retrieval handling fee; issuer-originated; acquirer may return. For acquirer use when returning an
invalid or incorrect retrieval handling fee; applicable only if the previous cycle message reason
code was 7612, or
For issuer use when returning an invalid or incorrect non-Mastercom fulfillment fee settlement;
applicable only if the previous cycle message reason code was 7614, or for issuer use to assess
the acquirer for incorrect information verified by the retrieval request document or a TID sent as
chargeback documentation.
For issuer use to charge the acquirer for incorrect information verified by the retrieval request
document or a TID sent as chargeback documentation.
Maximum USD 25
Amount
1 1 Reason Code:
A = incorrect acceptor name
B = incorrect acceptor location
C = incorrect transaction date
2 1 Space
3-25 23 ARD
26 1 Space
If processing handling fee for TID received as a fulfillment, complete as follows:
27-36 10 Issuer control number
37 1 Space
38-59 22 Incorrect A, B, or C condition; acceptor name, city, state, country, or

transaction date from original acceptor description or Financial Detail
message.
60 1 Space
61-82 22 Corrected A, B, or C condition; acceptor name, city, state, country, or

transaction date from retrieval fulfillment
83-100 18 Spaces
Position Length Content
If processing handling fee for TID received as a second presentment in response to a chargeback,
complete as follows:

Fee collection
37 1 Space
38-59 22 Incorrect A, B, or C condition; acceptor name, city, state, country, or

transaction date from the original acceptor description or Financial Detail
message.
60 1 Space
61-82 22 Corrected A, B, or C condition; acceptor name, city, state, country, or

transaction date from retrieval fulfillment.
83-100 18 Spaces
DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the Central Site processed Retrieval Fee
Billing/1740-700 or Second Presentment/1240-205 or 1240-282
DE 25 7616
Handling fee for second presentment of reason codes 12 and 35 for chip transactions where
transaction certificate and DE 55 (Integrated Circuit Card [ICC] System-Related Data) are
present in the clearing message. Acquirer-originated.
Maximum USD 25
Amount
1 1 Reason Code:
A = correct information previously provided with first presentment
2 1 Space
3-25 23 ARD
26 1 Space
37-100 45 Spaces
DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the member-submitted Second
Presentment/1240-205 or 1240-282
DE 25 7617
Adjustment for promotional transactions.
Maximum None
Amount

Fee collection
1-38 38 ADJUSTMENT FOR PROMOTIONAL TRANSACTIONS
39-00 62 Spaces
DE 73 PDS 0105 (File ID), subfield 2 (File Reference Date) of the File Header/1644
DE 25 7618
Reversal of previously reimbursed State Fuel Tax.
Maximum None
Amount
1-86 86 REVERSAL OF TAX REIMBURSE: FROM JURISDICTION SSSS VIA OIL AAA
TO AGENCY NNN PERIOD YYMM
87-100 14 Spaces
DE 25 7619
Emergency card replacement center, cash advance lockbox fee.
Maximum USD 50
Amount
1 1 Reason Code Fee Description
A USD 50 U.S. ECR CENTER REIMBURSEMENT
B USD 30 ECA LOCATION REIMBURSEMENT
C USD 50 NON-U.S. ECR CENTER REIMBURSEMENT
2-100 99 Spaces
DE 73 Emergency card replacement date
DE 25 7621
ATM Balance Inquiry Fee: Reserved for intra-European and inter-European use.
Maximum USD 50
Amount

Fee collection
1-100 100
DE 25 7622
Handling fee for Authorization Related Chargebacks (4807 and 4808). This fee is sent by the
issuer after sending a First Chargeback/1442–450 or 1442–453 for one of the chargeback
reasons identified above.
Maximum USD 50
Amount
1-2 2 Values 07, 08, or 47 correspond to the IPM DE 25 (Message Reason Code)
4807 and 4808 of the related First Chargeback/1442
3 1 Constant Space
4 1 Values for Condition indicator:
A = 4808 Authorization-related chargeback (declined)
B = 4808 Authorization-related chargeback
D = 4807 Warning bulletin
5 1 Constant Space
6 1 Constant 1 to denote the first chargeback
7 1 Constant Space
8–17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

originally assigned by the issuer in the associated First Chargeback/1442
message
18 1 Constant Space
19-24 6 Date of the declined authorization associated with the disputed clearing
record if position 4 of the DE 72 (Data Record) is A. MMDDYY or spaces.
25 1 Constant Space
26-28 3 Constant 700
29 1 Constant Space
30-49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer. Right
justified, leading zeros.
50-100 51 Constant Space
DE 73 Date of the chargeback cycle with which the handling fee is associated

Fee collection
DE 25 7623
acquirer after sending a Second Presentment/1240-205 or 1240-282 for one of the chargeback
reasons identified above.
Maximum USD 100

Amount
1-2 2 Values 07, 08, or 47 correspond to the IPM Message Reason Code (DE 25)
3 1 Constant Space
4 1 Values for Condition indicator.
C = 4808 Authorization-related chargeback
5 1 Constant Space
6 1 Constant 2 to denote the second presentment
7 1 Constant Space
8-17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

message
29 1 Constant Space
30-49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer in the
(IPM Fee Collection/1740-700 message with a DE 25 (Message Reason
Code) of 7622, or spaces, if the issuer did not send a Fee Collection/
1740-700 message. Right justified, leading zeros.
50 1 Constant Space
51-56 6 Date authorization request approved. MMDDYY
57 1 Constant Space
58-63 6 DE 38 (Approval Code)–XXXXXX

Fee collection
DE 25 7624
issuer after sending an Arbitration Chargeback/1442-451 or 1442-454 for one of the
chargeback reasons identified above.
Maximum USD 150

Amount
1-2 2 Values 07, 08, or 47 correspond to the DE 25 (IPM Message Reason Code)
4807 and 4808 of the related Arbitration Chargeback/1442 message
3 1 Constant Space
5 1 Constant Space
6 1 Constant 3 to denote Arbitration Chargeback/1422
7 1 Constant Space
8-17 10 DE 95 (Card Issuer Reference Data) from the associated First Chargeback/
1442 message
18 1 Constant Space
19-24 6 Date of the declined Authorization provided with first chargeback if position
4 of the DE 72 (Data Record) is “A”. MMDDYY or spaces
25 1 Constant Space
29 1 Constant Space
30-49 20 Original PDS 0137 (Fee Collection Control Number) assigned by the
acquirer in the IPM Fee Collection/1740-700 message with a DE 25
(Message Reason Code) of 7623, or spaces, if the acquirer did not send a
Fee Collection/1740-700 message.

Fee collection
64-100 37 Explanation for arbitration chargeback, such as, the approved authorization
was not for this transaction.
DE 25 7625
PIN Management Service at ATM. (Intra-European and inter-European use only).
Maximum USD 5
Amount
DE 3 19 (credit to sender of the fee collection)
1-100 100 PIN CHANGE xxxx xxxx xxxx xxxx (where xxxx xxxx xxxx xxxx represents the
cardholder number) OR PIN TRY COUNTER RESET xxxx xxxx xxxx xxxx
(where xxxx xxxx xxxx xxxx represents the cardholder number)
DE 73 Date the service was performed at the ATM
DE 25 7626
Private Label Merchant Fee for Private Label fee collection messages. This fee collection message
reason code is available for business service arrangements level 1 (interregional), level 2
(intraregional), level 3 (intercountry) and level 4 (intracountry) where Private Label exists.
Maximum None
Amount
DE 25 7627
Fees related to the issuer’s failure to provide a Merchant Advice Code; for acquirer use only.
Maximum USD 100

Amount
1-2 2 Values 07, 08, or 47 correspond to the IPM DE 25 (Message Reason Code)
3 1 Constant Space

Fee collection
5 1 Constant Space
6 1 Constant 1 to denote the first chargeback
7 1 Constant Space
8-17 10 DE 95 (Card Issuer Reference Data). Chargeback reference number

message
18 1 Constant Space
19-24 6 Date of the declined authorization associated with the disputed clearing
record if position 4 of the DE 72 (Data Record) is “A”. MMDDYY or spaces.
25 1 Constant Space
29 1 Constant Space
30-49 20 PDS 0137 (Fee Collection Control Number) assigned by the issuer. Right
justified, leading zeros.
DE 25 7628
Reclaim surcharge: Reserved for intra-European, inter-European, and European transaction
related services.
1-100 100
DE 25 7700
Intracurrency settlement agreement; for settlement of amounts in accordance with an
intracountry agreement between transaction originator and transaction destination parties.
Maximum
Amount USD 40,000

Fee collection
1-100 100
DE 25 7704
Bank Card Interchange fee, reverse interchange for ATM transactions (Mexico Domestic).
Maximum None
Amount
DE 25 7705
Transactions below to threshold published (Mexico Domestic). Customer calculates VAT (Value
Added Tax).
Maximum None
Amount
DE 25 7706
Difference in interchange amount between member calculated and Mastercard calculated
(Mexico Domestic). Member calculates VAT (Value Added Tax).
Maximum None
Amount
DE 25 7707
Interest for late settlements (Mexico Domestic). Customer calculates VAT (Value Added Tax).
Maximum None
Amount
DE 25 7708
Non fullfiled documentation penalties (Mexico Domestic). Customer calculates VAT (Value Added
Tax).
Maximum None
Amount
DE 25 7709
Penalties on code 102 miscellaneous (Mexico Domestic). Customer calculates VAT (Value Added
Tax).

Fee collection
Maximum None
Amount
DE 25 7710
Miscellaneous (Mexico Domestic).
Maximum None
Amount
DE 25 7711
Pre-fund amount, offset for others (Mexico Domestic).
Maximum None
Amount
DE 25 7712
Bank Card Interchange fee, balance inquiry interchange. Customer calculates VAT (Value Added
Tax).
Maximum None
Amount
DE 25 7716
Adjustments to the applied negotiated interchange amount from the First Presentment/1240
message, First Chargeback/1442 message, and Second Presentment/1240 message in the event
the recipient disagrees with the applied negotiated interchange amount.
Maximum None
Amount
DE 72 Contains information to help the receiver identify the transaction(s) to which this interchange
adjustment applies.
DE 25 7750-7799
Bilateral agreement settlement; for settlement of amounts in accordance with a bilateral
agreement between transaction originator and transaction destination parties.
Maximum USD 5,000

Amount

Fee collection
1-100 100
DE 73 Charge date
DE 25 7800
MCBS customer settlement; for collection or payment of such things as customer assessments,
processed through the Mastercard Consolidated Billing System (MCBS).
Maximum None
Amount
"MCBS - IIIIIII SS - XXXXXXXXXXXXXXXXXXXXXX NNN ZZZ,ZZZ,ZZ9.99

BILLING CYCLE DATE - MMM DD, CCYY."
1-4 4 Constant = MCBS (system identification)
5 1 Space
6 1 Constant = Dash (-)
7 1 Space
8-14 7 IIIIIII = Customer ID (ICA)
15-16 2 Spaces
17-18 2 SS = Service Type
19 1 Space
21 1 Space
22-43 22 XXXXX…XXX = Service Description
44-45 2 Spaces
46-48 3 NNN = Numeric Currency Code
49-50 2 Spaces
51-64 14 ZZZ,ZZZ,ZZ9.99 = Dollar Amount
65-67 3 Spaces

Fee collection
Fee Collection (Clearing System-generated)/1740–783
68-85 18 BILLING CYCLE DATE
86 1 Space
88 1 Space
89-91 3 MMM = Calendar Month (alpha)
92 1 Space
93-94 2 DD = Calendar Day
95 1 Constant = Comma (,)
96 1 Space
97-100 4 CCYY = Calendar Year

This table describes the DE 25 (Message Reason Code) values that apply to Fee Collection
(Clearing System-generated)/1740–783 Messages.
1740 message transaction amount maximum settings can be viewed in the IPM MPE Table IP0097T1:
Message Reason Code Restrictions for Card Program Identifier and Business Service Arrangement. For
example, the maximum amount for MRC 7601 for Europe intraregional business services for MCC and
DMC acceptance brand is EUR 115.
DE 25 7621
ATM Balance Inquiry Fee: Reserved for intra-European use
DE 3 19 (credit to sender), 29 (debit to sender)
DE 25 7625
PIN Management Service at ATM: Reserved for intra-European use
DE 3 19 (credit to sender), 29 (debit to sender)
DE 25 7629
Interregional non-financial ATM interchange for collection of interchange due on a non-financial
ATM transaction (Single Message System-originated.
Maximum USD 5
Amount

Fee collection
1-11 11 DE 32 (Acquiring Institution ID Code) from the authorization message. This

value contains the acquiring institution identification code. It is right-
justified with leading zeros.
12-22 11 DE 33 (Forwarding Institution ID Code) from the authorization message.

This value contains the forwarding institution identification code. It is right-
justified with leading zeros.
23-26 4 DE 13 (Date, Local Transaction) from the authorization message. This

value contains the local month and day at which the transaction takes
place at the point of service.
27-32 6 DE 11 (Systems Trace Audit Number) from the authorization message.

This value contains the systems trace audit number (STAN) which is a
unique identifier assigned to each transaction by the message originator.
33-44 12 DE 37 (Retrieval Reference Number) from the authorization message. This

value contains the retrieval reference number and is supplied by the system,
retaining the original document of the transaction.
45-64 20 DE 127 (Private Data) from the authorization message. This value contains
the first 20 positions of Acquirer Private Data. It is left justified with
trailing spaces.
DE 25 7702
Domestic ATM VAT Fees/Services: Used for the Mexico Domestic Fee Collection/1740 message
on the VAT amount on ATM transactions. Mastercard calculates the VAT when submitted with
this message reason code.
DE 25 7800
MCBS customer settlement; for collection or payment of such things as customer assessments,
processed through the Mastercard Consolidated Billing System (MCBS).
Maximum None
Amount
"MCBS - IIIIIII SS - XXXXXXXXXXXXXXXXXXXXXX NNN ZZZ,ZZZ,ZZ9.99

BILLING CYCLE DATE - MMM DD, CCYY."
1-4 4 Constant = MCBS (system identification)
5 1 Space

Fee collection
7 1 Space
8-14 7 IIIIIII = Customer ID (ICA)
15-16 2 Spaces
17-18 2 SS = Service Type
19 1 Space
21 1 Space
22-43 22 XXXXX…XXX = Service Description
44-45 2 Spaces
46-48 3 NNN = Numeric Currency Code
49-50 2 Spaces
51-64 14 ZZZ,ZZZ,ZZ9.99 = Dollar Amount
65-67 3 Spaces
68-85 18 BILLING CYCLE DATE
86 1 Space
88 1 Space
89-91 3 MMM = Calendar Month (alpha)
92 1 Space
93-94 2 DD = Calendar Day
95 1 Constant = Comma (,)
96 1 Space
97-100 4 CCYY = Calendar Year
DE 25 7802
Interchange compliance adjustment; for settlement of financial amounts related to interchange
compliance.
Maximum None
Amount

Fee collection
1-33 33 "INTERCHANGE COMPLIANCE ADJUSTMENT"
34-100 67 Spaces
DE 25 7803
Interchange compliance adjustment reversal; for settlement of financial amounts related to the
reversal of a previous interchange compliance adjustment.
Maximum None
Amount
1-41 41 "INTERCHANGE COMPLIANCE BACKOUT ADJUSTMENT"
42-100 59 Spaces
DE 25 7804
ATM transaction settlement; for settlement of daily ATM transaction amounts.
Maximum None
Amount
Indicates an association with ATM processing:

When the issuer receives only summary data from Global Clearing
Management System, the message text must be one of the following:
1-7 7 "NET AMT" = transaction amount field equals the net dollar value of all
ATM withdrawals transacted by an issuer’s cardholders.
8-100 93 Spaces

Fee collection
1-4 4 "FEES" = transaction amount field equals the accumulation of processing

fees owed by the issuer for noncash withdrawal transactions and the
acquirer interchange fees owed by the issuer
5-100 96 Spaces
1-5 5 "SWFEE" = transaction amount field represents the Mastercard ATM

Network fees owed by the issuer for ATM transactions
6-100 95 Spaces
When the issuer receives Global Clearing Management System detail data,
the message text must be one of the following:
1-4 4 "FEES" = transaction amount field represents the accumulated processing

fees owed by the issuer for noncash withdrawal transactions
5-100 96 Spaces
1-5 5 "SWFEE" = transaction amount field represents the Mastercard ATM

Network fees owed by the issuer for ATM transactions
6-100 95 Spaces
When an ATM acquirer receives Global Clearing Management System

settlement information in the Fee Collection/1740 message, the message
text must be one of the following:
1-5 5 "NETAQ" = if summarizing the ATM cash disbursement

"FEEAQ" = if summarizing the ATM fees owed by the acquirer
6-100 95 Spaces
DE 25 7805
ATM intracountry switch fee settlement; for settlement of daily ATM transaction intracountry
switch fees.
Maximum None
Amount
When the issuer receives Global Clearing Management System summary or

detail data, the message text must be:
1-5 5 "ISISW" = transaction amount represents Cirrus ATM fees owed by the
issuer for intracountry ATM activity
6-100 95 Spaces
DE 25 7806

Fee collection
ATM Single Message Transaction Manager switch fee settlement; for settlement of MDS Single
Message Transaction Manager Switch Fees.
Maximum None
Amount
1-100 100
DE 25 7807
ATM intracountry first chargeback settlement; for settlement of daily ATM transaction
intracountry first chargeback amounts.
Maximum None
Amount
DE 3 29 (debit to message originator)
When the issuer receives Global Clearing Management System detail data,
the message text must be:
1-5 5 “ICHBK” = transaction amount represents chargeback funds owed to the

issuer for intracountry ATM activity
6-100 95 Spaces
DE 25 7808
Miscellaneous Override Financial Adjustment.
Maximum None
Amount
DE 3 19 (credit to message originator [Mastercard]), 29 (debit to message originator [Mastercard])
1-29 29 "INTERCHANGE ADJUSTMENT FOR:"
30-37 8 Process Date in MM/DD/YY format
38-38 1 Blank (only when the fee collection is for the issuer)
39-76 78 Account Range (only when the fee collection is for the issuer)
DE 25 7811
Reimbursement of State Fuel Tax.

Fee collection
Maximum None
Amount
For credit to message originator:
1-80 80 "TAX REIMBURSE DEBIT FROM JURISDICTION SSSS VIA OIL AAA TO
AGENCY NNN PERIOD YYMM"
81-100 20 Spaces
For debit to message originator:
1-81 81 "TAX REIMBURSE CREDIT FROM JURISDICTION SSSS VIA OIL AAA TO
AGENCY NNN PERIOD YYMM"
82-100 19 Spaces
DE 25 7812
Collection or return of collateral for security arrangement.
Maximum None
Amount
For credit to message originator:
1-49 49 "COLLECTION OF COLLATERAL FOR SECURITY ARRANGEMENT"
50-100 51 Spaces
For debit to message originator:
1-46 46 "RETURN OF COLLATERAL FROM SECURITY ARRANGEMENT"
47-100 54 Spaces
DE 25 7813
IVA fees
Maximum None
Amount

Fee collection
1-15 15 IVA on IC/Fee
16-100 85 Spaces
DE 25 7820
Disaster Relief Fund (credit to sender).
Maximum None
Amount
1-100 100
DE 25 7821
MCBS Credit Emergency.
Maximum None
Amount
1-100 100
DE 25 7822
Settlement Adjustment
Maximum None
Amount
DE 73 The date of the settlement adjustment
1-21 21 "SETTLEMENT ADJUSTMENT"
22-100 79 Spaces
DE 25 7823

Fee collection
Single Message System Offline Debit Settlement (Mastercard Internal Use Only).
Maximum None
Amount
1-100 100 Single Message System feed through S.A.M.
DE 25 7824
Collection of Reward Amount as agreed upon between the customers.
Maximum None
Amount
DE 3 29 (debit to message originator)
1-27 27 "Collection of reward amount"
28-100 73 Spaces
DE 25 7627
EDP Adjustment Amount (Used only by the Mastercard Network for the EDP Service).
DE 25 7949
Funds movement for disputes resolved via the Nigeria domestic disputes system.
Maximum None
Amount
DE 72 Contains the Dispute Ticket ID assigned when the dispute was initiated through IDRS.

Reversals
Chapter 22 Reversals
This section describes how to create reversals and how Global Clearing Management System will
process them.
How to create reversals.....................................................................................................................................429

Identification of reversal messages........................................................................................................... 429
Identification of reversal files......................................................................................................................429
How to send reversal messages................................................................................................................. 429
How to send reversal files: full files............................................................................................................430
How to send reversal files: partial files......................................................................................................431
Using the Clearing Optimizer Message Selection Utility to create reversals..................................... 432
Full File Reversal Utility................................................................................................................................ 432
Having Mastercard reverse files................................................................................................................. 433
Editing reversal messages.................................................................................................................................433
Reporting reversal rejects..................................................................................................................................433

Reversals
How to create reversals
How to create reversals

A reversal message informs the receiver to disregard the original message.
The settlement values for a reversal message and its original together produce a net settlement
value of zero.
Customers can reverse one or more individual messages or an entire clearing file.
Identification of reversal messages

Customers must identify a single reversal message by adding PDS 0025 (Message Reversal
Indicator) to the message and populating its subfields correctly.
In… The customer provides…

Subfield 1 A value of R.
Subfield 2 The original Global Clearing Management System processing date

of the message being reversed.
When a Single Message System to Dual Message System (Authorization) transaction (that is,
bridged transaction) has been reversed due to an ATM Withdrawal failure, a reversal message is
generated by Mastercard for the original 1240/Presentment message. The Global Clearing
Management System would directly deduct the non-financial fee into the reversal message and
no longer generate a Fee Collection (Retrieval Fee Billing)/1740 message non-financial fee.
Identification of reversal files

Customers have two options for identifying a reversal file.
• Add PDS 0026 (File Reversal Indicator) to the File Header message of the file, and populate
subfield 1 (File Reversal Indicator) with a value of R. In subfield 2 (Central Site Processing
Date of Original File), provide the original Global Clearing Management System processing
date of the file being reversed.
• Add PDS 0025 (Message Reversal Indicator) to every message in the file except for the File
Header and File Trailer messages. Subfield 1 (Message Reversal Indicator) must contain a
value of R. Subfield 2 (Central Site Processing Date of Original Message) must contain the
original Global Clearing Management System processing date of the message being
reversed.
How to send reversal messages

Customers will follow the procedure below to reverse an individual message.
Procedure
1. The customer realizes that it needs to reverse an individual message.

Reversals
How to send reversal files: full files
2. The customer extracts the message to be reversed. For example, if a customer wants to
reverse a message containing a specific cardholder account number, the customer can use
the Message Selection Criteria utility to select and extract the message containing that
cardholder account number.
3. The customer adds PDS 0025 (Message Reversal Indicator) to the message, with the value
R in subfield 1 (Message Reversal Indicator) and the original Global Clearing Management
System processing date in subfield 2.
4. The customer adds the reversal message to one of its outgoing clearing files.
5. If the customer’s original message needs to be resent because it contained incorrect data,
the customer corrects the data in the original message and resubmits it.
Global Clearing Management System will recognize and process individual reversal
messages submitted in a file. There is no requirement to isolate reversal messages or to
send them in separate files.
How to send reversal files: full files

Global Clearing Management System allows customers to send one original file and one reversal
file using the same file ID. This allows customers to correct invalid files with minimal changes to
the original file. Customers will follow the procedure below to reverse full files.
Procedure
1. The customer realizes that it needs to reverse an entire file.
2. The customer sends a full file reversal using the same file ID or a new file ID. The customer
adds PDS 0026 (File Reversal Indicator) to the file header message with the value R in
subfield 1 (File Reversal Indicator) and the original Global Clearing Management System
processing date in subfield 2 (Central Site Processing Date of Original File).
Because PDS 0026 is present in the File Header message, Global Clearing Management
System recognizes the file as a full file reversal. Global Clearing Management System
inserts PDS 0025 (Message Reversal Indicator) into each individual message in the file and
processes and distributes each message as a single-item reversal.
3. If the customer’s original file needs to be resent because it contained incorrect data, the
customer corrects the data in the original file and resubmits it using a different file ID.
Example
For example, suppose that customer 001234 sends file ID 0020406150000000123400001
on 15 June 2004.
1. The customer realizes that the data is incorrect and that the customer needs to reverse
the file and resubmit the data.
2. Customer 001234 sends a full file reversal using the same file ID
0020406150000000123400001, on 16 June 2004 to reverse the incorrect data. The
customer adds PDS 0026 to the File Header message of this file before sending it. The
date provided in PDS 0026, subfield 2 must be the 15 June 2004 date. This is the
original file processing date. Global Clearing Management System processes each
individual message in the file as a reversal; however, if an individual message is already a
reversal transaction, it will be processed as an original transaction.

Reversals
How to send reversal files: partial files
3. Customer 001234 then corrects the data in the original file and resubmits it using a
different file ID, such as 0020406150000000123400002.
If customer 001234 submits the corrected data using file ID
0020406150000000123400001 again, Global Clearing Management System will reject this
third file because it contains a duplicate file ID. Global Clearing Management System allows
one original file and one reversal file for each file ID.
Allowing customers to reverse files using the same file ID simplifies the creation of reversal
files. Customers only need to populate PDS 0026 in the File Header message with an R to
indicate that the entire file is being reversed.
NOTE: Customers will not receive an entire file that is a full file reversal file (that is, PDS 0026 will
not be present in the customer inbound file header). In the receiving customer’s clearing file,
reversal messages will be mixed with non-reversal messages.
How to send reversal files: partial files

To send a partial reversal file, follow the steps outlined in this section.
Procedure
1. Extract the messages to be reversed into a new file. For example, if a customer wants to
reverse all of the first chargebacks from a file, the customer can extract all first chargebacks
from the original file.
2. Create a file header message with a value of R in PDS 0026 (File Reversal Indicator).
3. Create a file trailer containing zeros in PDS 0301 (File Amount, Checksum) and PDS 0306
(File Message Counts).
4. Submit the file for processing.
Customers should not combine messages from more than one processing date to be
reversed. This is because the date in subfield 2 (Central Site Processing Date of Original File)
of PDS 0026 will allow specification of only one original processing date for the currency
conversion rate history. The Global Clearing Management System uses that date’s currency
conversion rate (if necessary) to apply to the reversal transactions.
NOTE: Customers submitting a full or partial reversal file (indicated by the presence of PDS 0026
in the File Header) are not required to use a File ID that has already been processed. For example,
customers creating a partial reversal file may choose to assign a new File ID instead of using the
original File ID.
NOTE: If multiple partial reversals are required before clearing a transaction, each reversal should
always reference the original transaction data. For example, within DE 48 (Additional Data:
Private Use), subelement 63 (Trace ID), DE 90 (Original Data Elements) and DE 4 (Amount,
Transaction) of the Reversal Request/0400 message, the amount value should be the authorized
amount from the original transaction to support issuer matching (do not use the adjusted amount
from DE 95 (Replacement Amounts) within a previous reversal, nor the requested amount if a
partial approval applies). If an incremental authorization has been submitted, a reversal should
reference original transaction data and DE 4 should be the sum of the original authorized amount
plus any incremental amounts.

Reversals
Using the Clearing Optimizer Message Selection Utility to create reversals
Using the Clearing Optimizer Message Selection Utility to create reversals

Mastercard’s Clearing Optimizer software includes a number of useful utilities, one of which is
the IPM Message Selection Criteria Utility that can be used to simplify the process of creating
reversal messages and files.
This utility reads a given IPM clearing file and selects messages that match the customer-
specified criteria. Its output is an IPM file containing a File Header message and the messages
that match the selection criteria.
A customer can use the IPM Message Selection Criteria Utility to select the messages it wants
to reverse. For example, if a customer needs to reverse all first presentments submitted for the
U.S. region Merit III interchange program with a transaction date of 21 August 2003, the
customer can create selection criteria for these conditions. The customer uses the selection
criteria as input to the IPM Message Selection Criteria Utility, along with the original file.
The utility selects all messages that match the input criteria and puts them in an output file
along with the file header message of the original file. The customer would then insert PDS
0026 (File Reversal Indicator) into this file header message and optionally change the value of
PDS 0105 (File ID). Finally, the customer would add a file trailer message to the end of this file,
with values of all zeros in PDS 0301 (File Amount, Checksum) and PDS 0306 (File Message
Counts). Then the customer would send this file to Mastercard for processing within Global
NOTE: For more information about the IPM Message Selection Criteria, refer to either the Clearing
Optimizer Mainframe guide or the Clearing Optimizer AutoEdit guide.
Full File Reversal Utility

The IPM File Reversal Utility can be used for building a full file reversal.
About IPM File Reversal Utility

Customers inadvertently send duplicate IPM clearing files to Mastercard, and it is critical that
the duplicate files are reversed quickly to avoid processing and financial impact. To reverse the
duplicated files, customers can utilize the IPM file reversal utility to easily create a full file
reversal and validate the file using the Clearing Optimizer software before submitting the
clearing file to Mastercard.
For example, if a customer inadvertently sent duplicate clearing files for GCMS processing date
29 August 2019, the impacted customer can now utilize the IPM file reversal utility to create a
full file reversal using the processing date of 29 August 2019.
The IPM file reversal utility will insert PDS 0026 (File Reversal Indicator) in the file header with
the information provided from the processing date on the Reversal Processing Date Selection
field. Using the noted example, the values in PDS 0026 will be PDS 0026, subfield 1 (File
Reversal Indicator) = R and PDS 0026, subfield (Central Site Processing Date of Original File) =
190829.
NOTE: The IPM file reversal utility can be used on a clearing file with one header and one
trailer. Clearing files with multiple logical files (multiple headers and trailer) cannot be used.

Reversals
Having Mastercard reverse files
For more information regarding reversals and PDS 0026, refer to the IPM Clearing Formats
manual. It is critical to select the correct processing date for the reversal files and validate the
reversal files before submitting the files to the Mastercard central site.
Having Mastercard reverse files

Mastercard will submit full file reversals at the customer’s request.
Customers that want to request this service must provide the File ID of the file to be reversed
and the original Global Clearing Management System processing date of that file to their Global
Customer Service team, regional office representative, or Strategic Operations representative.
Mastercard will use this information to create and submit a full-file reversal as documented in
the How to send Reversal Files: Full Files section.
Editing reversal messages

Global Clearing Management System automatically excludes reversal messages from most
interchange qualification edits. For example, Global Clearing Management System excludes
reversal First Presentment/1240 messages from interchange timeliness and industry-related
addendum requirements.
Global Clearing Management System does edit the file ID in all full-file reversals to ensure that
it has not been previously reversed. As noted, the file ID in a reversal file does not have to be the
original file ID, but it cannot be a file ID that has been used in a previous full-file reversal.
Reporting reversal rejects

Global Clearing Management System generates Message Exception/1644 or File Reject/1644
messages for all rejected messages or files. Within these error messages, Global Clearing
Management System designates reversal transactions by the presence of PDS 0025 (Message
Reversal Indicator) in the individual message for individual transaction reversals and PDS 0026
(File Reversal Indicator) in the header message for full file reversals.

Duplicate Global Clearing Management System files, postings, and potential duplicate rejects
Chapter 23 Duplicate Global Clearing Management

System files, postings, and potential duplicate rejects
A duplicate file occurs when the Global Clearing Management System (GCMS) processes a file more
than once. The Global Clearing Management System has edits and built-in controls to detect and reject
complete duplicate files or individual transactions when submitted by acquirers. A potential duplicate
transaction reject occurs when the Global Clearing Management System detects the transaction is a
potential duplicate of a transaction that was previously processed.
Global Clearing Management System editing for duplicate files.............................................................. 435

Reasons for duplicate Global Clearing Management System files or postings.......................................435
Identification of duplicate Global Clearing Management System postings............................................ 435
Potential duplicate clearing transaction rejections...................................................................................... 436

Global Clearing Management System editing for duplicate files
Global Clearing Management System editing for duplicate files

To prevent a duplicate file from being processed, Global Clearing Management System rejects
the entire file if PDS 0105 (File ID) in the File Header/1644 message matches one that was
processed within the last 180 days for the customer or processor (specified in PDS 0105,
subfield 3 [Processor ID]).
For example, suppose that customer 1234 sends file ID number
00204061500000001234000001. If the Global Clearing Management System File ID History
File contains the same file ID number within the last 180 days of file IDs from customer 1234,
Global Clearing Management System will reject that second file
00204061500000001234000001 as a duplicate file.
Reasons for duplicate Global Clearing Management System files or

postings
Duplicate postings may occur for various reasons, such as
• an operator changes the file ID number on a previously processed file and resends it
• previously processed merchant deposits are processed again, or
• the merchant deposits the same transaction more than once.
Mastercard recommends that customers establish controls to prevent and detect these and
other errors to help prevent duplicate files and postings.
Identification of duplicate Global Clearing Management System

postings
If a duplicate posting does occur, either the sending customer or the receiving customer may
identify it.
If the receiving customer discovers a duplicate posting, it must notify the sending customer. The
sending customer must inform the St. Louis Operations Center by telephone and then take
action to correct the duplicate postings by submitting reversals.
When the sending customer notifies Mastercard about a duplicate posting, the customer must
provide the
• File ID numbers and
• Net amounts
for both the original and the duplicated postings.

Potential duplicate clearing transaction rejections
Potential duplicate clearing transaction rejections

The GCMS rejects 1240/200 First Presentment transactions if it is determined to be a potential
duplicate of a previously processed transaction. A specific process must be followed to resubmit
the transaction if the acquirer determines the transaction not to be a duplicate.
Potential duplicate rejection

Mastercard has logic designed to identify potential duplicate First Presentment/1240/200
clearing messages by performing matching logic against the associated authorization message,
as well as a comparison against other 1240/200 messages. There will be occasions where a
false-positive is identified. When those instances occur, acquirers have the ability to resubmit
the rejected clearing message.
Mastercard's goal is to reject as many potential duplicate clearing messages as possible, but
issuers might still receive some duplicate clearing messages.
Acquirers receive 1644/691 rejection messages that indicate the transaction is being rejected
due to a potential duplication.
Potential duplicate resubmission process

A rejected transaction that is verified to be a non-duplicate can be reprocessed by retaining and
returning information from the reject message. PDS 0444: Resubmission Code will be included
in the Message Exception/1644 message. PDS 0444 will contain a resubmission code that must
be included in any resubmitted First Presentment/1240 message that was previously identified
as a potential duplicate. The presence of a valid value in PDS 0444 will allow the resubmitted
First Presentment/1240message to bypass the potential duplicate detection and rejection
process.
Mastercard will accommodate the additional time taken to receive, research, and respond to
rejected potential duplicate clearing transactions. Resubmitted First Presentment/1240
messages that contain a valid resubmission code will not be subject to any interchange program
timeliness requirements that may be required to qualify for some interchange programs.
As a reminder, Mastercard can identify up to 10 error codes, which are reasons for which a
transaction is being rejected. Acquirers must ensure that they are not only submitting PDS 0444
on the resubmission, but also that they are correcting any other identified reasons for which the
transaction was rejected.

Collection-only transaction reporting
Chapter 24 Collection-only transaction reporting

This chapter describes collection-only transactions and the Global Collection Only (GCO) Data Collection
Program.
Collection-only transactions.............................................................................................................................438
Global Collection Only Data Collection Program..........................................................................................438
Collection-only transactions that are not permitted for Global Collection Only...............................439
Reversing Collection-only data................................................................................................................... 439
Editing collection-only data.........................................................................................................................439
Reporting GCO Data Collection Program rejects................................................................................... 439
Collection-only activity in relation to reconciliation messages............................................................. 440
IPM First Presentment/1240: Global Collection Only format....................................................................440
IPM 1240 Global Collection Only data elements.....................................................................................440
Global Collection Only mapping for single message system transactions...............................................444
Mapping 0200 to 1240................................................................................................................................ 444

Collection-only transactions
Collection-only transactions
A collection-only transaction is a transaction that is reported to Mastercard by means of the
Global Clearing Management System, but which has not been cleared nor settled through the
Mastercard Network. A customer must identify each collection-only transaction by populating
PDS 0165 (Settlement Indicator), subfield 1 (Settlement Indicator), value C (Collection Only).
Any new customer processing infrastructure that generates and sends collection-only messages
on the Mastercard Network must provide separate files for GCO and GCMS financial activity.
Global Collection Only Data Collection Program

Transactions are processed in a variety of ways.
To ensure compliance with the Global Collection Only (GCO) Data Collection Program, a
Mastercard customer must submit all purchase, purchase with cash back, unique/quasi-cash,
ATM cash withdrawal, manual cash disbursement, payment transaction, and refund/credit
transactions to Mastercard as collection-only if
• the transaction was effected with a card or account issued under a Mastercard-assigned BIN
and bearing any one or more of the Mastercard brands (including (including Mastercard,
Debit Mastercard, Maestro, or Cirrus), and
• the transaction was not switched on the Mastercard Network.
For the purposes of this program, switched on the Mastercard Network means the submission
of a financial transaction message to the Single Message System or the Global Management
Clearing System in request for the settlement of an outstanding debit or credit position in
connection with an original completed transaction.
These transaction types are identified with values
• Purchase (DE 3 [Processing Code], subfield 1 [Cardholder Transaction Type] = 00)
• ATM cash withdrawal (DE 3, subfield 1 = 01)
• Purchase with cash back (DE 3, subfield 1 = 09)
• Manual cash disbursement (DE 3, subfield 1 = 12)
• Unique/quasi-cash (DE 3, subfield 1 = 18)
• Refund/credit (DE 3, subfield 1 = 20), and
• Payment Transaction (DE 3, subfield 1 = 28).
Although not required, customers may also submit balance inquiries (DE 3, subfield 1 = 30),
balance transfers (DE 3, subfield 1 = 50) and convenience checks (DE 3, subfield 1 = 17) to
Mastercard as collection-only transactions. If submitted, these transaction types must contain a
Acceptor Business Code (MCC) of 6012 (Financial Institutions: Merchandise and Services).

Collection-only transactions that are not permitted for Global Collection Only
Collection-only transactions that are not permitted for Global Collection Only
These sections describe requirements for the reporting of collection-only transactions, including
such reporting performed pursuant to the GCO Data Collection Program.
Transactions that should not be submitted as collection-only are
• Retrieval Request/1644
• First Chargeback/1442
• Second Presentment/1240
• Arbitration Chargeback/1442
• Fee Collection (Retrieval Fee Billing)/1740
• Fee Collection (Other)/1740, and
• Fee Collection (Handling Fees)/1740.
Reversing Collection-only data

A customer should reverse collection-only data only in limited circumstances.
A customer should reverse collection-only data if
• the previously submitted collection-only data was duplicated (same messages sent twice), or
• the previously submitted collection-only data was incorrect.
NOTE: For instructions for reversing a single message or an entire file (applicable to both collection-
only and non-collection-only activity), refer to Bilateral Settlement Activity.
Editing collection-only data

The Global Clearing Management System automatically excludes collection-only transactions
from most interchange qualification edits.
For example, the Global Clearing Management System excludes collection-only First
Presentment/1240 transactions from authorization code, interchange timeliness, and industry-
related addendum requirements.
Reporting GCO Data Collection Program rejects

The Global Clearing Management System generates Message Exception/1644 or File Reject/
1644 messages for all rejected messages and files. Within these error messages, collection-only
activity is designated by a value of C in PDS 0165 (Settlement Indicator), subfield 1 (Settlement
Indicator).
The Global Clearing Management System reports rejected GCO Data Collection Program data
through the Global Collection Only Error Detail Report, report number IP857010-BB. Refer to
the Clearing Processing Details chapter of this manual for more information.

Collection-only activity in relation to reconciliation messages
Collection-only activity in relation to reconciliation messages

IPM Financial Position Detail Reconciliation messages provide amount and fee totals in each
customer’s reconciliation currency. These totals are also optionally available in transaction
currency.
Because Mastercard does not clear or settle collection-only transactions, IPM Financial Position
Detail Reconciliation message totals for these transactions in the customer’s reconciliation
currency will contain zeros. If the customer has requested the "transaction currency" option for
reconciliation messages, IPM Financial Position Detail Reconciliation message totals for these
transactions in the transaction currency will be present and will contain the correct (non-zero)
amounts.
Customers that want to receive reconciliation totals for collection-only activity should request
both the transaction currency option and the settlement indicator option for IPM Financial
Position Detail Reconciliation messages to differentiate amount totals for these transactions.
Customers may select category options by contacting their account manager or Mastercard
Global Clearing Management System offers one report, IP727010-AA, Clearing Cycle
Acknowledgment, for the reconciliation of Global Collection Only clearing activity. However,
because Global Clearing Management System does not calculate the reconciliation amount on
these transactions, the amount fields will be zero. The counts field will contain the number of
collection items processed.
IPM First Presentment/1240: Global Collection Only format

A customer must submit various data as collection-only using the IPM First Presentment/1240
transaction format in order to comply with the GCO Data Collection Program, referred to in this
section as the IPM First Presentment/1240: Global Collection Only format).
IPM 1240 Global Collection Only data elements

This table identifies all mandatory and optional data elements and private data subelements
for the IPM First Presentment/1240: Global Collection Only transactions.
Data Element: IPM 1240 Data Element Name: IPM 1240 M: Mandatory/O: Optional
- Message Type Identifier M
- Bit Map, Primary M
1 Bit Map, Secondary M
2 PAN M
3 Processing Code M
4 Amount, Transaction M
5 Amount, Reconciliation O

6 Amount, Cardholder Billing O
12 Date and Time, Local Transaction M
14 Date, Expiration O
22 Point of Service Data Code M
23 Card Sequence Number O
24 Function Code M
25 Message Reason Code O
26 Acceptor Business Code M
30 Amounts, Original O
31 Acquirer Reference Data O
32 Acquiring Institution ID Code O
33 Forwarding Institution ID Code M
37 Retrieval Reference Number O
38 Approval Code O
40 Service Code O
41 Acceptor Terminal ID M
42 Acceptor ID Code M
43 Acceptor Name/Location M
48 Additional Data M
p0023 Terminal Type O
p0025 Message Reversal Indicator O
p0043 Program Registration ID O
p0052 Electronic Commerce Security Level
Indicator O
p0057 Transaction Category Indicator O
p0058 Token Assurance Level O
p0059 Token Requestor ID O
p0080 Amount, Tax O
p0145 Amount, Alternate Transaction Fee O
p0146 Amounts, Transaction Fee O
p0148 Currency Exponents M

p0149 Currency Codes, Amounts, Original O
p0157 Alternate Processor Indicator O
p0158 Business Activity O
p0159 Settlement Data O
p0165 Settlement Indicator M
p0170 Acceptor Inquiry Information O
p0171 Alternate Acceptor Description O
p0172 Sole Proprietor Name O
p0173 Legal Corporate Name O
p0174 Dun & Bradstreet Number O
p0175 Acceptor URL O
p0176 Mastercard Assigned ID O
p0177 Cross-border O
p0178 Alternate Acceptor Description
Data 2 O
p0179 Long Running Transaction (LRT)
Indicator O
p0180 Domestic Acceptor Tax ID O
p0181 Installment Payment Data O
p0189 Point-of-Interaction (POI) Phone
Data O
p0190 Partner ID Code O
p0191 Originating Message Format O
p0193 Subscriber Reference Data O
p0194 Remote Payment Program Date O
p0195 Installment Data O
p0196 Mobile Phone Reload Data O
p0197 National Use Tax Data O
p0198 Device Type O
p0199 Funding Transaction Information O
p0202 PPAN Syntax Error O
p0204 Amount, Syntax Error O

p0205 Syntax Return, Message Error
Indicator O
p0207 Wallet Identifier O
p0208 Additional Merchant Data O
p0209 Independent Sales Organization ID O
p0210 Transit Program O
p0211 Terminal Compliant Indicator O
p0220 Brazil Merchant Tax ID O
p0225 Syntax Return, Original Message
Reason Code O
p0261 Risk Management Approval Code
(Rejected by Mastercard) O
p0375 Member Reconciliation Indicator 1 O
p0446 Transaction Fee Amount, Syntax
Error O
p0502 Custom Identifier O
p0596 Acceptor Tax ID O
p0597 Total Tax Amount O
p0623 Motor Fuel Information O
p0629 Odometer Reading O
p0799 Test Case Traceability Identifiers O
p10XX Member-to-Member Proprietary
Data (p1000 through p1099) O
49 Currency Code, Transaction M
50 Currency Code, Reconciliation O
51 Currency Code, Cardholder Billing O
54 Amounts, Additional O
55 Integrated Circuit Card (ICC)
System Related Data O
62 Additional Data 2 O
63 Transaction Life Cycle ID O
71 Message Number M

Global Collection Only mapping for single message system transactions
94 Transaction Originator Institution
ID Code M
Global Collection Only mapping for single message system

transactions
This section shows how to map a Financial Transaction Request/0200 transaction to the IPM
format using field mapping.
Mapping 0200 to 1240

Single Message System Financial Transaction Request/0200 data can be mapped to IPM First
Presentment/1240: Global Collection Only transactions. Note that some of the data will have
to be set directly in IPM 1240 and cannot be used from 0200 message, that is, DE 24 function
code needs to be set to 0200 in IPM 1240 message.
An example also is provided on how to build an IPM First Presentment/1240: Global Collection
Only transaction using Mastercard Single Message System ISO 8583–1987 format as the
source.
This may be useful for customers that switch their global or cross-border transactions through
the Single Message System and are required to report collection-only transactions to Global
Clearing Management System in the IPM First Presentment/1240: Global Collection Only
format. The Single Message System format may differ slightly from a customer’s local switch;
however, it should provide a general baseline for customers.
Data Element
Guiding Data Element Name: Single
Data Element: Data Element M:Mandatory / Comments or No.: Single Message
IPM 1240 Name: IPM 1240 O:Optional Maps to Value Message 0200 System 0200
- Message Type M 1240
Identifier
- Bit Map, Primary M
1 Bit Map, M
Secondary
2 PAN M 2 PAN
3 Processing Code M 3 Processing Code

Data Element
4 Amount, M 4 Amount,
Transaction Transaction
5 Amount, O 5 Amount,
Reconciliation Settlement
6 Amount, O 6 Amount,
Cardholder Cardholder
Billing Billing
12 Date and Time, M 13 Date, Local
Local Transaction
Transaction
14 Date, Expiration O 14 Date, Expiration
22 Point of Service M 22 Point-of-Service
Data Code Entry Mode
- s7 Card Data: M 22/1 Point-of-Service
Input Mode Entry Mode
23 Card Sequence O 23 Card Sequence
Number Number
24 Function Code M 200
25 Message Reason O
Code
26 Acceptor M 18 Merchant Type
Business Code (MCC)
30 Amounts, O 4 Amount,
Original Transaction
5
Amount,
Settlement
31 Acquirer M 63/5 Network Data

Reference Data
32 Acquiring O 32 Acquiring
Institution ID Institution
Code Identification
Code
33 Forwarding M 33 Forwarding
Institution ID Institution
Code Identification
Code

Data Element
37 Retrieval O 37 Retrieval
Reference Reference
Number Number
38 Approval Code O
40 Service Code M 35 Track 2 Data
41 Acceptor M 41 Acceptor
Terminal ID Terminal
Identification
42 Acceptor ID M 42 Acceptor
Code Identification
Code
43 Acceptor Name/ M 43 Acceptor Name
Location and Location
48 Additional Data M 48 Additional Data
p0023 Terminal Type O 61/10 POS Data
p0025 Message O
Reversal
Indicator
p0043 Transaction Type O 110/2 Additional Data
Identifier -2
p0052 Electronic O 48/42 Additional Data
Commerce
Security Level
Indicator
p0057 Transaction O 48/61 Additional Data
Category
Indicator
p0058 Token Assurance O
Level
p0059 Token Requestor O
ID
p0080 Amount, Tax O
p0145 Amount, O
Alternate
Transaction Fee

Data Element
p0146 Amounts, O 28 Amount,
Transaction Fee Transaction Fee
p0148 Currency M ISO Currency
Exponents Exponent from
the FIT file or
Member
Parameter
Extract (MPE)
for each currency
code used in the
transaction
p0149 Currency Codes, O 49 Currency Code,
Amounts, 50 Original
Original Transaction
Amount
Currency Code,
Original
Reconciliation
Amount
p0157 Alternate O
Processor
Indicator
p0158 Business Activity O 110 Additional Data
-2
p0159 Settlement Data O 110/7 Additional Data
-2
p0165 Settlement M C
Indicator
p0170 Acceptor Inquiry O
Information
p0171 Alternate O
Acceptor
Description
p0172 Sole Proprietor O
Name
p0173 Legal Corporate O
Name

Data Element
p0174 Dun & O
Bradstreet
Number
p0175 Acceptor URL O
p0176 Mastercard O 48/32 Additional Data
Assigned ID
p0177 Cross-border O 126 Switch Private
Data
p0178 Alternate O
Acceptor
Description Data
2
p0179 Long Running O
Transaction
(LRT) Indicator
p0180 Domestic O
Acceptor Tax ID
p0181 Installment O
Payment Data
p0189 Point-of- O
Interaction (POI)
Phone Data
p0190 Partner ID Code O
p0191 Originating O
Message Format
p0193 Subscriber O
Reference Data
p0194 Remote O
Payment
Program Date
p0195 Installment Data O
p0196 Mobile Phone O
Reload Data
p0197 National Use Tax O
Data
p0198 Device Type O

Data Element
p0199 Funding O
Transaction
Information
p0202 PAN Syntax O
Error
p0204 Amount, Syntax O
Error
p0205 Syntax Return, O
Message Error
Indicator
p0207 Wallet Identifier O
p0208 Additional O
Merchant Data
p0209 Independent O
Sales
Organization ID
p0210 Transit Program O
p0211 Terminal O
Compliant
Indicator
p0220 Brazil Merchant O
Tax ID
p0225 Syntax Return, O
Original
Message Reason
Code
p0261 Risk O
Management
Approval Code
(Rejected by
Mastercard)
p0375 Member O
Reconciliation
Indicator 1
p0446 Transaction Fee O
Amount, Syntax
Error

Data Element
p0502 Custom O
Identifier
p0596 Acceptor Tax ID O
p0597 Total Tax O
Amount
p0623 Motor Fuel O
Information
p0629 Odometer O
Reading
p0799 Test Case O
Traceability
Identifiers
p10XX Member-to- O
Member
Proprietary Data
(p1000 through
p1099)
49 Currency Code, M 49 Currency Code,
Transaction Transaction
50 Currency Code, O 50 Currency Code,
Reconciliation Settlement
51 Currency Code, O 51 Currency Code,
Cardholder Cardholder
Billing Billing
54 Amounts, O 54 Additional
Additional Amounts
55 Integrated O 55 Integrated
Circuit Card Circuit Card
(ICC) System (ICC) System-
Related Data Related Data
62 Additional Data O 62 INF Data
2
63 Transaction Life O 63 Network Data
Cycle ID
71 Message M Per definition in
Number IPM Manual

Data Element
94 Transaction M 32 Acquiring
Originator Institution
Institution ID Identification
Code Code
123 Additional Data O
3
4
5

Bilateral settlement activity
Chapter 25 Bilateral settlement activity

This section describes what bilateral settlement is and how Global Clearing Management System will
process these transactions.
Definition of bilateral settlement agreement............................................................................................... 453

Identification of bilateral settlement transactions.................................................................................453
Editing bilateral transactions...........................................................................................................................453
Global Clearing Management System calculations for bilateral settlement transactions...................454
Bilateral transactions in relation to reconciliation messages..................................................................... 455

Definition of bilateral settlement agreement
Definition of bilateral settlement agreement

A bilateral settlement agreement is an arrangement between two Mastercard customers to
settle transactions directly, rather than through the Mastercard Settlement Account
Management (S.A.M.) system.
If this arrangement is in place, Mastercard clears transaction data between the participating
customers but does not perform settlement on the data.
Customers interested in establishing a bilateral settlement agreement with other customers
should contact their Global Customer Service team.
Identification of bilateral settlement transactions

Customers requesting bilateral settlement for a given transaction must indicate this by
populating PDS 0165 (Settlement Indicator), subfield 1 (Settlement Indicator) with a value of B
to denote bilateral settlement.
This causes the Global Clearing Management System to edit and clear the transactions but not
initiate settlement. Customers may combine bilateral transactions with all other transactions in
the same file.
These customers also may optionally populate PDS 0165, subfield 2 (Settlement Agreement
Information) with additional information related to the bilateral settlement.
Editing bilateral transactions

Global Clearing Management System will edit bilateral settlement transactions to ensure that a
bilateral settlement agreement is on file between the sending and receiving customer IDs.
Tables indicating bilateral settlement agreements and customer participation are available in
the Integrated Product Messages (IPM) Mastercard Parameter Extract (MPE).
Global Clearing Management System will automatically exclude bilateral settlement chargeback
transactions from
• Chargeback timeliness edits
• Cycle appropriateness edits
• Retrieval history edits, and
• Documentation history edits.
Global Clearing Management System does not exclude bilateral settlement transactions from
any other edits. For example, bilateral settlement First Presentment/1240 transactions must
conform to data format and content edits, and to interchange program requirements, the same
as transactions settled by Mastercard.

Global Clearing Management System calculations for bilateral settlement transactions
Global Clearing Management System calculations for bilateral

settlement transactions
This section includes information about the bilaterally settled transactions for which Global
Clearing Management System calculates amounts.
Global Clearing Management System does not calculate
• DE 6 (Amount, Cardholder Billing) or
• Amounts resulting from Currency Conversion Assessment
for bilaterally settled transactions.
DE 5 (Amount, Reconciliation) and DE 50 (Currency Code, Reconciliation)

Global Clearing Management System does calculate DE 5 (Amount, Reconciliation) and
determine DE 50 (Currency Code, Reconciliation) for bilaterally settled transactions. To do this,
Global Clearing Management System obtains the reconciliation currency by performing
settlement service selection. The settlement service selection process for regional and
intracurrency settlement transactions is documented in the Business Service chapter of the
Global Clearing Management System Reference Manual.
Just as customers can specify settlement service selection criteria for regionally settled
transactions (as described in the Business Service chapter of the Global Clearing Management
System Reference Manual), they can also specify settlement service selection criteria for
bilaterally settled transactions. If customers do not specify any settlement service selection
criteria for bilaterally settled transactions, Global Clearing Management System will use the
reconciliation currency associated with the customer's default regional settlement agreement.
Global Clearing Management System then performs any necessary currency conversion to
convert DE 4 (Amount, Transaction) to the customer's reconciliation currency. To do this, Global
Clearing Management System uses market buy and sell rates or a fixed rate if one exists. The
currency conversion process for bilaterally settled transactions is similar to that described for
regionally settled transactions in the Reconciliation chapter of the Global Clearing Management
System Reference Manual.
Interchange fees
Global Clearing Management System offers several options related to interchange fees for
bilaterally settled transactions:
• If the Business Service assigned to a bilaterally settled transaction indicates that Global
Clearing Management System should calculate interchange fees, Global Clearing
Management System will calculate the interchange fees, convert them to the receiving
customer's reconciliation currency, and populate PDS 0146 (Amounts, Transaction Fees),
subfield 4 (Currency Code, Fee), subfield 5 (Amount, Fee), subfield 6 (Currency Code, Fee,
Reconciliation), and subfield 7 (Amount, Fee, Reconciliation) PDS 0147 (Extended Precision
Amounts), subfield 4 (Currency Code, Fee), subfield 5 (Amount, Fee), subfield 6 (Currency
Code, Fee, Reconciliation), and subfield 7 (Amount, Fee, Reconciliation) with the correct

Bilateral transactions in relation to reconciliation messages
interchange fees and associated currency codes before forwarding the message to the
receiver.
Clearing Management System should not calculate interchange fees, the sending customer
may optionally populate PDS 0146, subfields 4 and 5 with the relevant interchange fees.
Global Clearing Management System will forward PDS 0146, subfields 4 and 5 to the
receiving customer without altering the data. In addition, Global Clearing Management
System will convert the fees that were provided in PDS 0146, subfields 4 and 5 to the
receiving customer's reconciliation currency and place this amount and currency into PDS
0146, subfields 6 and 7 before forwarding the message to the receiver.
Clearing Management System should not calculate interchange fees, and the sending
customer does not provide fees in PDS 0146, Global Clearing Management System will
process the transaction with no interchange fees. PDS 0146 will not be present in the
message sent to the receiver.
Bilateral transactions in relation to reconciliation messages

IPM Financial Position Detail Reconciliation messages provide amount and fee totals in each
customer’s reconciliation currency. These totals are also optionally available in transaction
currency.
Because Mastercard does not settle bilateral settlement transactions, IPM Financial Position
Detail Reconciliation message totals for these transactions in the customer’s reconciliation
currency will contain zeros. If the customer has requested the transaction currency option for
reconciliation messages, IPM Financial Position Detail Reconciliation message totals for these
transactions in the transaction currency will be present and will contain the correct (non-zero)
amounts.
Customers that want to receive reconciliation totals for bilateral settlement activity should
request both the transaction currency option and the settlement indicator option for IPM
Financial Position Detail Reconciliation messages to differentiate amount totals for these
transactions.

Electronic commerce
Chapter 26 Electronic commerce

This chapter describes how Global Clearing Management System performs transaction processing for
applicable electronic commerce services.
Electronic commerce..........................................................................................................................................457
Process for an electronic commerce transaction.................................................................................... 457
Security of electronic commerce transactions........................................................................................ 458
Universal Cardholder Authentication Field...............................................................................................458
Relationship between e-commerce and Mastercard Identity Check................................................... 459
UCAF in Digital Secure Remote Payments...............................................................................................459

Electronic commerce
Electronic commerce
Electronic commerce
Electronic commerce (e-commerce) transactions are non–face-to-face, online transactions that
use electronic media over any public network such as the Internet, or private network such as an
extranet. E-commerce processing allows transactions to be initiated from a cardholder-
controlled device, such as a PC or mobile phone, for purchasing goods and services on the
Internet.
Customer requirements
To process e-commerce transactions,
• all issuers must be able to receive and process all e-commerce data present in the
Authorization Request/0100 messages; and
• all acquirers must properly identify e-commerce messages within the Authorization Request/
0100 message. They must be able to receive and to process e-commerce Authorization
Request Response/0110 messages.
For detailed transaction flows and requirements associated with participation in the
Mastercard® SecureCode™ /Identity Check program, refer to the Mastercard Identity Check
Program Guide. For details about data requirements and transaction processing specifications,
refer to the Customer Interface Specification manual.
Process for an electronic commerce transaction

The process by which an e-commerce transactions undergoes is described here.
The following diagram illustrates the flow of a typical e-commerce transaction.
1. The cardholder accesses a merchant’s Web site through the Internet and requests to make a
purchase.
2. The merchant submits the cardholder’s information to the acquirer.
3. The acquirer sends an Authorization Request/0100 message through the Mastercard
Network to the issuer.
4. The issuer makes the authorization decision and replies using an Authorization Request
Response/0110 message.
5. The acquirer responds to the merchant.
6. The merchant completes the transaction according to the authorization response returned.

Electronic commerce
Security of electronic commerce transactions
Security of electronic commerce transactions

There are various methods for securing e-commerce transactions that customers may process
through the Mastercard Network.
Mastercard messaging requirements regarding e-commerce may vary depending on the security
protocol involved in the transactions. Security protocols may include
• no security protocol
• channel encryption, which is a security layer that resides between an application and its
transport layers, for example, SSL (Secure Sockets Layer) and HTTPS (Hypertext Transfer
Protocol Secure), and
• SecureCode/Identity Check transaction using the Universal Cardholder Authentication Field™
(UCAF).
If an e-commerce item that ships late is re-authorized for message reason code 4808
(Authorization-Related Chargeback) chargeback protection, this transaction will take on the
security characteristics of the original authorization within a dispute resolution.
NOTE: Without UCAF data present, a re-authorized transaction must be presented within clearing for
non-UCAF interchange (as applicable by region).
For more information about SecureCode/Identity Check, including detailed transaction flows
and participation requirements, refer to the Mastercard Identity Check Program Guide.
Universal Cardholder Authentication Field

The Universal Cardholder Authentication Field™ (UCAF) is a standard, globally interoperable
method of collecting cardholder authentication data at the point of interaction.
Within the Mastercard authorization networks, UCAF™ is a universal, multipurpose data
transport infrastructure that is used to communicate authentication information between
cardholders, merchants, issuers, and acquirers.
Accountholder Authentication Value

The Accountholder Authentication Value (AAV) is a Mastercard Identity Check-specific
implementation of UCAF™ related to issuer authentication platforms that incorporate the
Secure Payment Application (SPA) algorithm. SPA is a Mastercard security method designed to
authenticate cardholders when they pay online. All AAVs must be generated using the
Mastercard SPA algorithm. With the EMV® 3-D Secure protocol and the Mastercard Identity
Check program, Mastercard has created a new SPA algorithm called SPA2. For more
information about this new algorithm, refer to the SPA2 AAV for the Mastercard Identity Check
Program manual on Mastercard Connect™.
AAV are generated by Mastercard and presented to the merchant for placement in the
authorization request upon successful authentication of the cardholder or attempted
authentication of the cardholder.
UCAF is used to transmit the AAV from the merchant to the issuer for authentication purposes
during the authorization process.

Electronic commerce
Relationship between e-commerce and Mastercard Identity Check
Customers must perform AAV validation during the Authorization Request/0100 messages,
either through their own self-validation process of their IAV (Issuer Authentication Value) or
through the Mastercard Identity Check AAV Verification service.
All customers must participate in Mastercard Identity Check Dynamic AAV Verification in Stand-
In Processing. This is now an automated rule based process within Authorization for Stand-In
Processing Authorization and Stand-In generated AAVs with Smart Authentication, IDC Insights
and IDC Express.
To implement the Mastercard Identity Check Dynamic AAV Verification service, login to the
ISSM (Identity Solutions Services Management) application within MCConnect. This is only for
ACS enrolled account ranges for ACS authenticated AAVs. .
NOTE: All issuers globally that participate in Stand-In processing must have Mastercard Identity Check
Dynamic AAV verification in Stand-In performed during Stand-In processing.
All issuers globally that participate in Stand-In processing must have Dynamic CVC 3 Validation in
Stand-In performed during Stand-In processing.
Relationship between e-commerce and Mastercard Identity Check

Mastercard Identity Check builds upon the infrastructure requirements for channel encryption
with the additional benefit of cardholder authentication.
When used in conjunction with components of the Mastercard payment infrastructure,
Mastercard Identity Check provides a mechanism for online merchants to potentially receive an
enhanced payment guarantee similar to what retailers (non-Internet) receive with qualifying
physical point-of-sale transactions.
UCAF in Digital Secure Remote Payments

The UCAF field is also used to support Digital Secure Remote Payments (DSRP) submitted as
electronic commerce transactions that are initiated with MDES tokens.
In this case, the UCAF field contains an encoded list of data constructed according to UCAF
format. Refer to the Digital Remote Secure Payments: UCAF Formats manual for information on
the UCAF formats supported by Mastercard.

Acquirer interchange reporting
Chapter 27 Acquirer interchange reporting

The Global Clearing Management System report can be used in the acquirer interchange process.
Interchange Detail Report (IP755020-AA).................................................................................................... 461

Interchange Detail Report (IP755020-AA)

The Interchange Detail Report (IP755020-AA) is offered to acquirers in the Europe region and
South Africa to comply with regulatory requirements by providing details regarding their fees,
including the interchange amounts applied per transaction. Customers can sign up for this
report.
The report (in the form of a raw data file) provides acquirers automated access to the following
detailed information per transaction after each clearing cycle.
• PAN
• Transaction and interchange amounts
• Interchange details including the interchange amount actually applied by Global Clearing
Management System
• Merchant details
• Transaction identifiers to allow easy reconciliation with the acquirer's internal data
• PDS 0159: Settlement Data (Acquirer Settlement Data)
Detail record
Starting
Field Name DE PDS Subfield Length Position
D (Detail static value 1 1
Record)
Acquirer ICA 11 2
Indicator
PAN 2 19 17
Code (includes
all subfields)
Amount, 4 12 42
Transaction
Amount
Local
Transaction

Starting
Point of Service 22 1–12 12 78
Data Code
Message 25 4 93
Reason Code
Acceptor 26 4 97
Business Code
Acquirer 31 23 101
Reference Data
Acceptor 41 8 133
Terminal ID
Acceptor ID 42 15 141
Code
Acceptor Name 43 1, 2, 3 83 156
and Location
Acceptor Post 43 4 10 239
Code
Management
System Product
Identifier
Licensed 3 3 252
Product
Identifier
Message 25 1 1 258
Reversal
Indicator
Electronic 52 1,2,3 3 259
Commerce
Security Level
Indicator
File ID: File 105 2 6 262
Reference Date

Starting
Code
Indicator
Amounts, 146 5 12 277
Transaction Fee
Fee
Reconciliation
Amount Fee 146 7 12 292
Reconciliation
Type Code
Processing
Code
Settlement
indicator
Extended: 147 4 3 310
Currency Code,
Fee
Extended: 147 5 18 313
Interchange
Amount, Fee
Extended: 147 6 3 331
Currency Code,
Fee, Recon.
Extended: 147 7 18 334
Interchange
Amount, Fee,
Recon.
Currency 148 1, 2 4 352
Exponents
Identifier

Starting
Business 158 2 1 359
Service
Arrangement
Type Code
Business 158 3 6 360
Service ID Code
Rate
Designator
Business Date
Acceptor 158 7 1 376
Classification
Override Ind.
Override
Indicator
Incentive Rates
Apply Indicator
Special 158 10 1 381
Conditions
Indicator
Assigned ID
Override
Indicator
Category Code
Incentive
Indicator
Service Transfer
Agent ID

Starting
Service Transfer
Agent Account
Service Level
Code
Service ID Code
Foreign
Exchange Rate
Class Code
Date
Cycle
Date
Cycle
Currency Code
Currency Code
Amount
Trace ID 63 2 15 479
Interchange
Override
Indicator
The report uses fixed field lengths in fixed positions.

The report also includes a header and trailer record (with the total number of records for detail
records only). These records include the Global Clearing Management System Report ID, which
will be IP755020-AA.
Header record


1 an-17 Value 'HIP755020-AA'
2 an-11 ICA
3 an-07 Endpoint
Trailer record

1 an-17 Value of 'TIP755020-AA'
2 an-11 ICA
3 an-07 Endpoint
A report with n transactions will look as follows:

• Header Record
• Detail Record 1
• Detail Record 2
• …
• Detail Record n
• Trailer Record
One report will be sent at the end of each clearing cycle for all activity in that clearing cycle. If no
activity has occurred in a clearing cycle, then an empty report will be sent with just a Header
and a Trailer record.
The report will include
• Purchase transactions
• Refunds/Reversals
• Cash withdrawals
• Cash disbursement
• Purchase with cash back
• Payment transactions, and
• Unique transactions.
NOTE: The Interchange Detail Report will not include Collection-Only messages.
It will be sent to acquirers through Global File Transfer using Bulk File TN70. Acquirers can use
bulk file TN72 for testing.

Acquirers will be able to choose between 2 versions.

• Version 1: Acquirer only activity
– 1st Presentments and reversals
– 2nd Presentments and reversals
• Version 2: Acquirer and Issuer activity
– 1st Presentments and reversals
– 2nd Presentments and reversals
– 1st Chargebacks and reversals
– 2nd Chargebacks and reversals

Acquirer clearing detail reporting
Chapter 28 Acquirer clearing detail reporting

The Global Clearing Management System report can be used in the acquirer clearing process.
Clearing Detail Report (IP755120-AA)...........................................................................................................469

Clearing Detail Report (IP755120-AA)

The Clearing Detail Report (IP755120-AA) is offered to acquirers to facilitate acquirer
reconciliation. Customers can sign up for this report delivered through bulk file TN70
The report will be generated and sent after each clearing cycle, including cycle seven.
The report (in the form of a raw data file) provides acquirers transaction-level details from
Global Clearing Management System including the currency conversion rate from the
transaction amount to the acquirer reconciliation amount in DE 9 (Conversion Rate,
Reconciliation).
The report also includes header, detail, and trailer records (with the total number of records for
detail records only). These records include the Global Clearing Management System Report ID,
which will be IP755120-AA.
Header record

1 ans-17 Value 'HIP755120-AA'
2 n-11 ICA
3 n-07 Endpoint
Detail record
Starting
D (Detail static value 1 1
Record)
Indicator
Primary 2 19 17
Account
Number (PAN)
Code (includes
all subfields)

Starting
Amount, 4 12 42
Transaction
Amount
Conversion
Rate
Local
Transaction
Point of Service 22 1-12 12 86
Data Code
Message 25 4 101
Reason Code
Acceptor 26 4 105
Business Code
Original 30 1 12 109
Amount,
Transaction
Acquirer 31 23 121
Reference Data
Acceptor 41 8 153
Terminal ID
Acceptor ID 42 15 161
Code
Acceptor Name 43 1, 2, 3 83 176
and location
Acceptor Post 43 4 10 259
Code
Acceptor 43 5 3 269
Country
Subdivision
Code

Starting
Acceptor 43 6 3 272
Country Code
Management
System Product
Identifier
Licensed 0003 3 278
Product
Identifier
Message 0025 1 1 284
Reversal
Indicator
Electronic 0052 1, 2, 3 3 285
Commerce
Security Level
Indicator
File ID 0105 1, 2, 3, 4 25 288
Code
Indicator
Amounts, 0146 5 12 322
Transaction Fee
Fee
Reconciliation
Amount Fee 0146 7 12 337
Reconciliation
Type Code
Processing
Code

Starting
Settlement
Indicator
Extended: 0147 4 3 355
Currency Code,
Fee
Extended: 0147 5 18 358
Interchange
Amount, Fee
Extended: 0147 6 3 376
Currency Code,
Fee, Recon.
Extended: 0147 7 18 379
Interchange
Amount, Fee,
Recon.
Currency 0148 1, 2 4 397
Exponents
Currency Code, 0149 1 3 401
Original
Transaction
Amount
Identifier
Business 0158 2 1 407
Service
Arrangement
Type Code
Business 0158 3 6 408
Service ID Code
Rate
Designator
Business Date
Acceptor 0158 7 1 424
Classification
Override Ind.

Starting
Override
Indicator
Incentive Rates
Apply Indicator
Special 0158 10 1 429
Conditions
Indicator
Assigned ID
Override
Indicator
Category Code
Incentive
Indicator
Service Transfer
Agent ID
Service Transfer
Agent Account
Service Level
Code
Service ID Code
Foreign
Exchange Rate
Class Code
Date
Cycle

Starting
Date
Cycle
Currency Code
Currency Code
Amount
Trace ID 63 2 15 527
Destination
Institution ID
Code
Originator
Institution ID
Code
Data Record 72 100 564
Interchange
Override
Indicator
Currency 0015 0001 6 665
Conversion
Date
Currency 0015 0002 1 671
Conversion
Indicator
Trailer record

1 ans-17 Value of 'TIP755120-AA'
2 n-11 ICA
3 n-07 Endpoint


Mastercard sends the Clearing Detail File at the end of each clearing cycle for all activity in that
clearing cycle.
NOTE: If the Clearing Detail File Record does not contain data for the customer, then the customer
receives only the header and trailer for the Clearing detail file.

Acquirer ALM reconciliation reporting
Chapter 29 Acquirer ALM reconciliation reporting

The Global Clearing Management System report can be used in the acquirer reconciliation process for
Account Level Management-related transactions.
ALM Reconciliation Data Report (IP755220-AA)......................................................................................... 477

ALM Reconciliation Data Report (IP755220-AA)

The Account Level Management (ALM) Reconciliation Data Report is offered to acquirers to use
in conjunction with the Interchange Detail Report (IP755020-AA) and Clearing Detail Report
(IP755120-AA) to help facilitate acquirer reconciliation. This report is generated and sent after
each clearing cycle. Customers can sign up for this report delivered through bulk file TN70
The report (in the form of a raw data file) includes PDS 0275 (Account Level Management
Service Data) and PDS 0276 (Fee Amounts, Additional), along with other IPM clearing data,
and enables acquirers to match transaction records within their existing back-end systems, or by
matching the transactions records within the IP755020/IP755120 reports.
The IP755220-AA report will contain records for any account range that participates in ALM, as
well as ALM program/Business Service combinations that have migrated to the new ALM
service. ALM transactions with the ‘PAN not registered’ service code or service errors are not
included. Some processing conditions may create a record for transactions that did not have
ALM interchange applied. For example, purchase return/refund transactions within some
countries that participate in ALM but do not apply ALM interchange. Acquirers can determine if
ALM interchange was applied to a transaction by referencing two PDS 0276 subfield values
within the IP755220-AA records.
• PDS 0276, subfield 2 (Override Hierarchy) will be a non '00' value ('01' thru '11') if a product
class override was applied for the ALM Product Graduation program.
• PDS 0276, subfield 1 (Rate Type) will be populated with one of the '8nn' Rate Type values
directly associated with ALM when an adjustment is applied to the Base Rate amount (as
shown in the PDS 0276 occurrence with subfield 1 Rate Type '001') for non-Product
Graduation programs, e.g. Enhanced Value.
Per transaction, the new report will contain the following Detail Record. For the corresponding
data element and private data subelement, refer to the IPM Clearing Formats manual.
The report also includes header, detail, and trailer records (with the total number of records for
detail records only). These records include the Global Clearing Management System Report ID,
which will be IP755220-AA.
Header record

1 ans-17 Value 'HIP755220-AA'
2 n-11 ICA
3 n-07 Endpoint
4 ans-566 Space filler

Detail record
Starting
D (Detail Static Value 1 1
Record)
Message Type 4 13
Indicator (MTI)
Primary 2 19 17
Account
Number (PAN)
Transaction 4 12 36
Amount
Recon Amount 5 12 48
Acquirer Ref 31 23 63
Data
Transaction 49 3 86
Currency
Recon Currency 50 3 89
Trace ID 63 2 15 92
GCMS Product 0002 3 107
ID
Licensed 0003 3 110
Product ID
Transaction Fee 0146 36 113
Amount
Extended 0147 48 149
Precision
Amount
Busn Date
ALM Service 0275 15 203
Data
* Additional Fee 0276 384 218
Amounts

NOTE: * PDS 0276 (Fee Amounts, Additional) provides all fee amounts associated with transactions
that have processed for ALM. This PDS may accommodate one to eight fee amount occurrences.
GCMS will populate PDS 0276 in the IP755220-AA detail record with all eight fee amounts and any
unused occurrences will be space filled.
Trailer record

1 ans-17 Value of 'TIP755220-AA'
2 n-11 ICA
3 n-07 Endpoint
5 ans-554 Space filler
Mastercard sends the Clearing Detail File at the end of each clearing cycle for all activity in that
clearing cycle.
NOTE: If the Clearing Detail File Record does not contain data for the customer, then the customer
receives only the header and trailer for the Clearing detail file.

Acquirer Currency Conversion Rate File format
Chapter 30 Acquirer Currency Conversion Rate File

format
This section details the rate file format for the Acquirer Currency Conversion Rate File.
Acquirer Currency Conversion Rate File format............................................................................................481


The file header, detail, and trailer records for the Acquirer Currency Conversion Rate File are
noted in the following tables.
Mastercard provides the Acquirer Currency Conversion Rate File for
• Regional First Presentments (production bulk file TQQ4, test bulk file TQQ6)
• Regional Second Presentments (production bulk file TQQ8, test bulk file TQR0), and
• Intracurrency Presentments (production bulk file TQX2, test bulk file TQX4).
Acquirer Currency Conversion Rate File header record (Regional First Presentments)
Field Number and

Comments and
1 Header 1 1 an Constant: H
Description
2 Date 2-9 8 n File creation date.
YYYYMMDD
3 Time 10-15 6 n The time the file
was created.
Coordinated
Universal time
(UTC); six digits in
military format
HHMMSS. For
example, 3:30:30
p.m. would show as
153030.
4 Rate File Format 16 1 an This field identifies
Version the file format
version. The initial
version will be 2
and will be
incremented each
time the file
format changes.

Acquirer Currency Conversion Rate File detail record (regional first presentments)
Field Number and

Comments and
1 Detail 1 1 an Constant: R
Description
2 Transaction 2-4 3 n Represents
Currency Code transaction
currency code.
3 Acquirer Recon 5-7 3 n Represents
Currency Code acquirer
reconciliation
currency code.
4 Rate Class 8 1 an • M=
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rates
5 Effective 9-23 15 n Eight numbers to

Currency the left of the
Conversion Rate decimal, seven
numbers to the
right of the
decimal.
Acquirer Currency Conversion Rate File trailer record (regional first presentments)
Field Number and

Comments and
Description

Field Number and

Comments and
2 Count 2-11 10 n Total number of
count does not
include the header
or trailer records.
Acquirer Currency Conversion Rate File header record (regional second presentments)
Field Number and

Comments and
Description
YYYYMMDD
was created.
Coordinated
Universal time
military format
HHMMSS. For
example, 3:30:30
p.m. would show as
153030.
version will be 3
and will be
incremented each
time the file
format changes.

Acquirer Currency Conversion Rate File detail record (regional second presentments)
Field Number and

Comments and
1 Detail 1 1 an Constant: I
Description
currency code.
reconciliation
currency code.
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rates

numbers to the
right of the
decimal.
Acquirer Currency Conversion Rate File trailer record (regional second presentments)
Field Number and

Comments and
Description

Field Number and

Comments and
count does not
include the header
or trailer records.
Acquirer Currency Conversion Rate File header record (intracurrency presentments)
Field Number and

Comments and
Description
YYYYMMDD
was created.
Coordinated
Universal time
military format
HHMMSS. For
example, 3:30:30
p.m. would show as
153030.
version will be 4
and will be
incremented each
time the file
format changes.

Acquirer Currency Conversion Rate File detail record (intracurrency presentments)
Field Number and

Comments and
1 Detail 1 1 an Constant: S
Description
currency code.
reconciliation
currency code.
Mastercard-
issued U.S.
dollar rates
• X = Calculated
cross rates

numbers to the
right of the
decimal.
Acquirer Currency Conversion Rate File trailer record (intracurrency presentments)
Field Number and

Comments and
Description
count does not
include the header
or trailer records.

Field Number and

Comments and
Application of Acquirer Currency Conversion Rate File to determine acquirer

reconciliation amount
Acquirers can determine the reconciliation amount within the Acquirer Currency Conversion
Rate File by
• locating the record in the Acquirer Currency Conversion Rate File where the transaction
currency matches the currency in field 2 and the acquirer reconciliation currency matches the
currency in field 3; and
• multiplying the currency conversion rate in field 5 by the transaction amount to determine
the acquirer reconciliation amount.

Originating Institution Payment Transaction Currency Conversion Rate File format
Chapter 31 Originating Institution Payment

Transaction Currency Conversion Rate File format
This section details the rate file format for the Originating Institution Payment Transaction Currency
Conversion Rate File.
Originating Institution Payment Transaction Currency Conversion Rate File format........................... 489

Originating Institution Payment Transaction Currency Conversion

Rate File format
The file header, detail, and trailer records for the Originating Institution Currency Conversion
Rate File are noted below.
Originating Institution Payment Transaction Currency Conversion Rate File header
Field Number and

Comments and
Description
YYYYMMDD
was created.
Coordinated
Universal time
military format
HHMMSS. For
example, 3:30:29
p.m. would show as
153029.
4 Rate File Format 16 1 an This file identifies
version will be 2
and will be
incremented each
time the file
format changes.
Originating Institution Payment Transaction Currency Conversion Rate File detail record
Field Number and

Comments and
1 Detail 1 1 an Constant: R
Description

Field Number and

Comments and
2 Transaction Type 2-4 3 an Transaction Type
Identifier Identifier. Valid
value is:
• CXX (default
value)
3 Transaction 5-7 3 n Represents the

currency code of
the transaction.
4 Originating 8-10 3 n Represents the
Institution Recon originating
Currency Code institution
reconciliation
currency code of
the transaction.
5 Rate Class 11 1 an Indicates the rate
classification. Valid
values are:
• M=
Mastercard-
issued U.S.
dollar rates
• F = Mastercard-
issued cross
rates
• X = Calculated
cross rate
6 Effective 12-26 15 n Conversion rate

Currency (Assumed decimal
Conversion Rate after position 19).
Eight positions to
the left of the
decimal, seven
positions to the
right of the
decimal.

Originating Institution Payment Transaction Currency Conversion Rate File trailer record
Field Number and

Comments and
Description
2 Record Count 2-11 10 n Total number of
count does not
include the header
or trailer records.
The following steps explain how originating institutions can determine the reconciliation amount
using the Originating Institution Payment Transaction Currency Conversion Rate File.
1. Locate the record in the Originating Institution Payment Transaction Currency Conversion
Rate File where the Transaction Type Identifier matches the value in field 2, the transaction
currency matches the currency in field 3, and the Originating Institution reconciliation
currency matches the currency in field 4. If there is no match in field 2, then use the default
value of CXX (as the Transaction Type Identifier) to match.
2. Multiply the effective currency conversion rate in field 6 by the transaction amount to
determine the originating institution’s reconciliation amount.

Notices
Notices
Following are policies pertaining to proprietary rights, trademarks, translations, and details
about the availability of additional information online.
Proprietary Rights
The information contained in this document is proprietary and confidential to Mastercard
International Incorporated, one or more of its affiliated entities (collectively “Mastercard”), or
both.
This material may not be duplicated, published, or disclosed, in whole or in part, without the
prior written permission of Mastercard.
Trademarks
Trademark notices and symbols used in this document reflect the registration status of
Mastercard trademarks in the United States. Consult with the Global Customer Service team or
the Mastercard Law Department for the registration status of particular product, program, or
service names outside the United States.
All third-party product and service names are trademarks or registered trademarks of their
respective owners.
EMV® is a registered trademark of EMVCo LLC in the United States and other countries. For
more information, see http://www.emvco.com.
Disclaimer
Mastercard makes no representations or warranties of any kind, express or implied, with respect
to the contents of this document. Without limitation, Mastercard specifically disclaims all
representations and warranties with respect to this document and any intellectual property
rights subsisting therein or any part thereof, including but not limited to any and all implied
warranties of title, non-infringement, or suitability for any purpose (whether or not Mastercard
has been advised, has reason to know, or is otherwise in fact aware of any information) or
achievement of any particular result.
Translation
A translation of any Mastercard manual, bulletin, release, or other Mastercard document into a
language other than English is intended solely as a convenience to Mastercard customers.
Mastercard provides any translated document to its customers “AS IS” and makes no
representations or warranties of any kind with respect to the translated document, including,
but not limited to, its accuracy or reliability. In no event shall Mastercard be liable for any
damages resulting from reliance on any translated document. The English version of any
Mastercard document will take precedence over any translated version in any legal proceeding.

Notices
Information Available Online

Mastercard provides details about the standards used for this document, including times
expressed, language use, and contact information, on the Technical Resource Center (TRC). Go
to the Rules collection of the References section for centralized information.


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Global Clearing

Summary of changes: 16 April 2024..................................................................................... 13

Chapter 1: Overview of Global Clearing Management System........................... 14

Chapter 2: Clearing processing details.................................................................................29

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Clearing file delivery options.....................................................................................................38

Chapter 3: Processing cycles and regulations.................................................................. 86

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Customer guidelines for first presentments............................................................................... 89

Chapter 4: Global Clearing Management System transaction

Chapter 5: Mastercard contactless and PAN Mapping Service..........................122

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Processing-only participation in the Mastercard contactless Mapping Service................. 124

Chapter 6: Mastercard Digital Enablement Service..................................................137

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Processing Fee Collection/1740 Messages through the Mastercard Digital Enablement

Chapter 7: Mastercard Transaction Enablement Service...................................... 150

Chapter 8: Mastercard In Control platform....................................................................161

Chapter 9: Private Label Program........................................................................................ 166

Chapter 10: Clearing Chip Processing service............................................................... 169

Chapter 11: Extended Decimal Precision service.........................................................172

Chapter 12: Business service.................................................................................................... 177

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Business-to-business business service........................................................................................182

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Chapter 13: Settlement service..............................................................................................221

Chapter 14: Currency conversion...........................................................................................240

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Customer requirements for submitting first chargeback amounts......................................269

Chapter 15: ICCR service............................................................................................................ 284

Chapter 16: Reconciliation.........................................................................................................289

© 1974–2024 Mastercard. Proprietary. All rights reserved.

Clearing Cycle Summary Reconciliation Report (IP728010-AA)..................................... 337

Chapter 17: Early Reconciliation............................................................................................ 380

Chapter 18: Cross-Border Fee Manager service.......................................................... 386

Chapter 19: Mastercard Cardless ATM Program.........................................................392

Chapter 20: Mastercard ATM Cash Pick-Up service.................................................. 394

Chapter 21: Fee collection..........................................................................................................396

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Fee Collection (Clearing System-generated)/1740–783.......................................................419

Chapter 22: Reversals................................................................................................................... 428

Chapter 23: Duplicate Global Clearing Management System files,

Chapter 24: Collection-only transaction reporting.....................................................437

Chapter 25: Bilateral settlement activity.........................................................................452

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Bilateral transactions in relation to reconciliation messages......................................................455

Chapter 26: Electronic commerce.........................................................................................456

Chapter 27: Acquirer interchange reporting...................................................................460

Chapter 28: Acquirer clearing detail reporting..............................................................468

Chapter 29: Acquirer ALM reconciliation reporting....................................................476

Chapter 30: Acquirer Currency Conversion Rate File format.............................. 480

Chapter 31: Originating Institution Payment Transaction Currency

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Summary of changes: 16 April 2024

Description of Change Source Where to Look

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Chapter 1 Overview of Global Clearing Management

Definition of Global Clearing Management System.......................................................................................15

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