MasterCard Advice and Guidance

The following is a summary of the key areas agreed with MasterCard in terms of best practice.

MasterCard are continuing to work with us to ensure their rules are workable for members.

Non-embossed cards

MasterCard have launched a new style of card that does not have an embossed raised effect but will instead be ‘’flat’’. It has been designed to manage risk by working only in a firm’s electronic terminal. MasterCard has informed the BVRLA that some rental companies have rejected this new style of card so it is important that rental company’s frontline staff understand what the new cards look like and know to accept them.

The essential details such as name account number validity date and security feature will be the same on the new style card but they will be ‘’flat’’ and not raised. The chip may or may not be present The global hologram may be on the front or back.

The procedure to process the card will be just the same. However, if you do not have an electronic terminal, it is not functioning, or the card is damaged so it cannot be read electronically, you will need to ask for another form of payment to complete the transaction. In face-to-face environments, firms who decide to key-enter the cardholder account number into their point of sale systems for authorisation, should be aware that they could be liable for certain chargebacks by not being able to prove card presence through a manual imprint of the card.

The old style embossed card is of course still acceptable in the usual way. 

For more information on the changes MasterCard have published a PDF document to help understanding.
accepting an unembossed MasterCard card

Road traffic violations and refuelling

MasterCard have advised that transactions related to traffic violations and other similar fines, must be processed within 30 days of notification by the authorities. 

Summary of process for “additional charges” – road traffic offences & fuel

1. Authorisation – rental agreement must be signed and include a clear mandate that the nominated MasterCard can be used for all additional charges
2. Proof of Offence or Fuel – written notification should be sent to acquirer to help with defence
3. Best Practice – Prior to raising charge – send written notification of the charge being made to the cardholder’s account.

Additional information for refuelling charges

MasterCard has agreed that where the customer has signed a pre and post rental inspection report which specifically makes reference to the level of fuel the vehicle was returned with then this should form part of the evidential requirement to help the rental company fend off a chargeback request. 

Damage

MasterCard clarified that rental companies are able to lawfully charge for end of rental damage and cited Chargeback Guide 2.1.3.2 which stipulates that the following process will need to be adhered to:-

1. Rental agreement makes it clear that the customer is responsible for any end of rental damage;
2. The rental company has obtained separate written statement, signed by the customer confirming that the vehicle was damaged when returned; and
3. The rental company has provided a reasonable estimate of the cost to repair the damages and obtained agreement from the cardholder.
4. The rental company, with the customers approval may use the MasterCard to pay for the charge by preparing a specific sales slip with proof of card presence;
5. Provide the estimated amount for repairs indicating that the amount will be adjusted accordingly pursuant to completion of the repairs and submission of the invoice of such repairs; and
6. Obtain a signature from the cardholder
7. The rental customer has agreed in writing to the estimated cost of the repair 

Reservation fee

MasterCard rules do not prevent a car rental company from raising a cancellation fee for a vehicle that has been reserved by the cardholder.  However, MasterCard advises it is important that the terms of the fee are clearly communicated to the customer. 

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