auto rental guide
Post on 02-Jun-2018
227 Views
Preview:
TRANSCRIPT
-
8/11/2019 Auto Rental Guide
1/32
Introduction ____________________________00
Overview _______________________________00
Introducing the MasterCard Familyof Brands and Services _________________00
Basic Operating ProceduresMerchant Agreement_________________________00Authorization Procedures ______________________00Deposit Procedures __________________________00Premier Service Program_______________________00
Retrieval RequestsFlow Chart ________________________________00Reason Codes______________________________00
How to Handle ChargebacksFlow Chart ________________________________00Identify Top Chargebacks for Auto Rental
Reason Code 01Requested Transaction Information Not Received ______00Reason Code 02Requested Item Illegible or Missing _______________00Reason Code 07Warning Bulletin File _________________________00Reason Code 08Requested/Required Authorization Not Obtained ______00Reason Code 12Account Number Not On File ___________________00Reason Code 31Transaction Amount Differs_____________________00Reason Code 34Duplicate Processing _________________________00Reason Code 37Fraudulent Transaction-No CardholderAuthorization ____00Reason Code 59
Services Not Rendered ________________________00
Reason Code 60Credit Not Processed _________________________00
How to Prevent FraudMasterCard Initiatives in Fraud __________________00Fraud Prevention Tools ________________________00Merchant Tips in Combating Fraud _______________00MasterCards Future Initiatives __________________00
Glossary of Terms_______________________00
Table of Contents
1
-
8/11/2019 Auto Rental Guide
2/32
Introduction
2
MasterCard International Inc. (MasterCard) has over 1.7 billion cards
in circulation worldwide that cardholders use to meet their travel &
entertainment needs. Every year, their purchases of auto rental
services add up to billions of dollars.
Our goal is to work together with youthe auto rental industry to
attract new sales, build customer relationships, and improve profitability.
That is why we have designed the MasterCard Auto Rental Reference
Guide for you.
Your industry has specifically expressed the need for a comprehensive
reference manual describing MasterCards policies. You will find this
book to be a valuable tool as it provides a general overview of
MasterCard, its basic operating procedures and policies that are
relevant to you, the retrieval process, the chargeback process, and
fraud prevention tips. The Auto Rental Reference Guide was
developed to provide you with information and encourage you to
take full advantage of the many MasterCard programs and services
available to you. Throughout the document you will notice words
or phrases that are bold and italicized, indicating their definitions
can be found in the glossary.
STATEMENT OF CONFIDENTIALITY
The information contained in this handbook is proprietary and
confidential to MasterCard and users of MasterCard systems who
have executed the applicable MasterCard agreement for processing
services. This material may not be duplicated, published, or disclosed,
in whole or in part, without the prior written permission of MasterCard.
-
8/11/2019 Auto Rental Guide
3/32
3
Overview
Welcome tothe World of MasterCard
This section of our guide is
designed to give you an overview
of MasterCardits history,
industry position, structure,
brands, programs, and services.
MasterCard is a global payments
franchise comprised of more than
25,000 member financial institu-
tions.We do not issue cards, set
annual fees on cards, or determine
annual percentage rates (APRs).
MasterCard does not solicit
merchants to accept cards or set
their discount rates.Our member
financial institutions manage the
relationships with consumers and
merchants. MasterCard is responsi-
ble for the MasterCard brand
(including Maestro) which, based
on year-ending 2001 performance,
had over 1.7 billion cards in
circulation worldwide.
MasterCards mission is to enhance and support its members by
generating distinctive consumer preference for and use of thebrands by expanding acceptance and ensuring excellent cardholder
service at all points of interactionglobally.
MasterCards role is threefold. MasterCard is the manager of the
MasterCard global family of brandsMasterCard, Cirrus, Maestro
and Mondexand related programs. Like a franchiser, MasterCard
creates umbrella-marketing programs to support these brands; we
develop new products and services; and we set and enforce rules
and policies surrounding use of the brands. Together, MasterCards
brands offer a full range of pay-before, pay-now, and pay-laterglobal cash access and payment cards. Our second function is to
establish standards and procedures under which acceptance and
settlement of MasterCard transactions are conducted between
MasterCard and its members on a global basis. Our third function is
to provide a communications network for our members, facilitating
the electronic authorization of debit and credit card transactions,
and the subsequent clearing and settlement that takes place
between them. MasterCard monitors member compliance in
conjunction with government authorities. MasterCard also tracks and
attempts to combat the fraudulent use of MasterCard-branded cards.
While MasterCard has now evolved into a global payments franchise,
its origins were in the United States. In the late 1940s, a number of
U.S. banks started issuing their customers scrip that could be used
instead of cash for payment in local shops. The Franklin National
Bank in New York, now EAB (European American Bank), formalized
this practice by introducing the first modern credit card in 1951.
California-based Bank of America extended the idea throughoutthe United States by introducing the BankAmericard (now Visa) in
1960 and by franchising a single bank in each major city as its local
affiliate. These affiliates were responsible for signing contracts
with merchants to accept cards as payment, as well as enrolling
cardholders in their respective areas.
At this time, a group of enterprising U.S. bankers who were not
franchises of BankAmericard created their own network by
accepting each others local credit cards. On August 16, 1966, the
group formed the Interbank Card Association (ICA), which later
became MasterCard International Incorporated, to manage the
How MasterCard Evolved
MasterCards Position
-
8/11/2019 Auto Rental Guide
4/32
4
Overview continued
interchange functions of authorization, clearing, and settlement. Unlike BankAmericard, ICA was not dominat-
ed by a single bank. Member committees, supported by ICA staff, were established to govern and run the
bankcard association. In addition to establishing the rules for authorization, clearing, and settlement, ICA took
on marketing, security and legal functions to protect the bankcard associations brand mark. While ICA started
out as a credit card company, by 1979, MasterCard had become an international, integrated payment services
company. Since then, many programs and services have been added to the MasterCard family of brands. In
October 1995, MasterCard unveiled a new corporate identity system designed to convey MasterCard as a
global leader in the payment services industry. The cornerstone of the system is a new corporate signature
that reinforces the power of the MasterCard brands, while building a world-class, unified corporate image
for MasterCard.
MasterCard is governed by a global board of directors, elected annually by, and representing, our memberfinancial institutions around the world. Cirrus, Maestro and Mondex have their own boards, elected annual-
ly by their members and shareholders respectively. MasterCard is divided geographically into six regions:
Asia/Pacific, Canada, Europe, Latin America and the Caribbean, Middle East/Africa, and North America.
Regional boards, which are responsible for reviewing and approving the marketing and business development
programs to meet their respective market needs within the framework of MasterCards global standards, are
currently in place in all regions except Europe, where licensing and marketing activities are handled through
Europay International. MasterCard also has an extensive network of marketing and operations committees
comprised of members from all regions. In addition, special advisory committees are formed on an as-needed
basis to provide guidance on specific issues.
MasterCard has developed programs, services, and systems to support its members; it has also worked to add
value to its brand names through aggressive advertising and promotions.
To enhance visibility and awareness of the MasterCard family
of global brands, in 1990 MasterCard became the official
card of the worlds most watched sports event, World Cup.
Over 50 billion cumulative television viewers watched
World Cup 02, providing MasterCard with an extraordinaryforum for recognition as a leader both domestically
and internationally.
To embrace the ongoing global growth, MasterCard advertising also took on a global theme. The Priceless
advertising campaign fitted global needs and could be customized to meet the needs of each particular region.
To further enhance the visibility and awareness of the MasterCard family of global brands, MasterCard has
become the official sponsor of the: Jordan Grand Prix Formula One team, National Hockey League (NHL), PGA
Tour, Major League Soccer, FIFA World Cup 2002, World Cup Soccer, British Open, MasterCard Championship,
Major League Baseball, New York Mets, Atlanta Braves, Baltimore Orioles, Boston Red Sox, Los Angeles
Dodgers, St. Louis Cardinals, Cleveland Indians, and Seattle Mariners.
Brand Visibility
How MasterCard is Structured
-
8/11/2019 Auto Rental Guide
5/32
5
Introducing the
MasterCard
Family of Brands
and Services
In 1992, to leverage the familiarity
and power of its recently introduced
red and yellow interlocking circles,
MasterCard incorporated its familiar
image into the logos of Cirrus,
Maestro, and Mondex.The new marks
have further strengthened the
bankcard association among thevarious MasterCard brands in the
minds of consumers.We are responsible
for the MasterCard brand which,
based on year-end 2001 statistics, has
over 1.7 billion cards in circulation
worldwide and is accepted in 28
million merchant locations worldwide,
growing at more than 3,300 locations
each day. Below are the brands andservices available through MasterCard.
The MasterCard card serves as the cornerstone for the entire
MasterCard family of programs providing payment flexibility andunsurpassed acceptance. Depending on the country in which they
are issued, MasterCard cards may be revolving credit cards, credit
cards paid off monthly, or off-line debit cards. As of year-end 2001,
the MasterCard brand had a total of 520 million cards (excluding
Maestro) in circulation worldwide.
With the introduction of the Gold MasterCard card in 1981,
MasterCard became the first to bring market segmentation to the
bankcard industry. By the end of 2001, there were 96 million Gold
cards in circulation. In some regions the Gold card comes with higher
minimum credit lines or spending limits than the standard
MasterCard card. Most Gold MasterCard cards also offer superior
purchasing power and benefits such as MasterAssist Travel
Assistance Services.
The Platinum MasterCard Card was introduced in 1996, and by
the end of year 2001 over 62 million cards were issued worldwide.
It provides cardholders with additional benefits, such as a generous
credit line, an exceptional high level of personal 24-hour customer
services. The services include all of those available to Gold MasterCard
cardholders, as well as a year-end account summary and Travel
Accident Insurance.
The World MasterCard card, introduced in 1998, provides cardholders
with the luxury of no pre-set spending limits, worldwide concierge
services and exemplary customer service, all services available to
Platinum MasterCard cardholders, and travel rewards without
blackouts dates. As with all MasterCard cards, authorization of
individual transactions and benefits afforded to World MasterCard
cardholders depend on a variety of factors determined by the
issuing bank.
The World MasterCard Card
The Platinum MasterCard Card
The Gold MasterCard Card
The Standard MasterCard Card
-
8/11/2019 Auto Rental Guide
6/32
Family of Brands and Services continued
(BusinessCard card, Purchasing card, Fleet card, and Government/Public Sector Multi Cards)
Introduced in 1985 to meet the business needs of the small business category in the
United States. The MasterCard BusinessCard card program helps members attract
new business clients and strengthen existing relationships. Members have found the
addition of this business card to their portfolios to be profitable, since annual spending
per card is considerably higher than spending on consumer cards. For business,
the card offers the unsurpassed acceptance of all MasterCard-branded programs,
as well as special features such as the MasterCard BusinessCard Card Management
Information System (BCMIS) package, which provides a full range of customized
reports to help them manage their card portfolios, available in the United States, Canada
and Australia. The corporate purchasing business represents approximately US $1.2 trillion
annually worldwide. The MasterCard Purchasing Card, introduced in 1993, helps corporate purchasers reduce
the administrative costs of purchasing items by streamlining reporting and accounting, and reducing paperwork,
while maintaining financial control. The MasterCard Corporate Fleet Card, introduced in 1996, is a unique
Purchasing Card that enhances the ability of corporations with large fleets of cars and/or trucks to control and
account for vehicle-related costs for fuel and repairs, as well as travel-related expenses. Special rules were devel-
oped for this program to enable cards to be issued to corporate-owned vehicles rather than the traditional
method of issuing them to individuals. The MasterCard Government/Public Sector Multi Card, introduced in 1998,
provides agencies of the U.S. Federal Government and other public sector organizations with a total
payment solution to effectively control, streamline, and simplify the management of public
sector travel, vehicle fleet expenses and operational purchases, with a single, integrated
card program to support any combination of these expenses.
The MasterCard /Cirrus ATM Network is an integrated global automated teller
machine (ATM) network that supports the MasterCard and Cirrus brands. Any
cardholder with a card bearing the MasterCard or Cirrus logo may use a network
ATM to get cash. At the end of 2001, the network had 780,000 ATMs worldwide.
Introduced in December 1991, Maestro is one of the leading global online POS debit programs. A Maestro transaction
takes place when a consumer presents his/her ATM cardwith a Maestro brand markto a merchant that accepts
Maestro. At the end of 1999, there were 37 million cards in the United States and 336 million cards worldwide.
The Debit MasterCard Card, which is available only in the United States, is MasterCards off-line debit program.
A Debit MasterCard card combines the best aspects of an ATM card, a credit card, and a check. Like an ATM card,
it can be used to obtain cash at all ATMs in the MasterCard/Cirrus ATM Network. Like a credit card, it
can be used for payment at all merchants who accept MasterCard cards. And, like a check, the funds for such
payments are drawn directly from a customers deposit account and listed on the cardholders monthly checking
account statement. By mid-2001, there were 38.2 million Debit MasterCard cards in circulation in the United
States. Debit MasterCard cards are available as Gold, Platinum, Brokerage, and Business programs.
Debit MasterCard
Maestro
The MasterCard Cirrus ATM Network
MasterCard Commercial Cards
6
-
8/11/2019 Auto Rental Guide
7/32
To add more value to the MasterCard family of brands. MasterCard has worked
to facilitate many of the worlds most successful co-branded programs. As aresult, MasterCard is recognized as the industry leader in this area, developing
over 12,000 affinity/co-brand programs Globally. Organizations that participate
in MasterCards affinity card programs are the American Cancer Society, American Heart
Association, and Easter Seals just to name a few. Some participants in MasterCards North America co-branded
programs include General Motors, Shell, AT &T, American Airlines, SONY, Readers Digest and Barnes and Noble.
An affinity card provides a method for members of the group or organization to financially support the organi-
zation. The issuer will generally pay the organization for each card issued and/or on a portion of the issuers
income from such card use.
The co-branded card is a customized card issued by a financial institution bearing the logo of a specific merchantor service provider that wishes to solicit its customers. MasterCard co- branded card programs target the
customer base of the merchant or service provider. The MasterCard co-branded card delivers increased utility,
benefits and enhancements, and is a communication vehicle to cardholders
MasterAssist is a family of services designed to provide eligible Gold and Platinum MasterCard and MasterCard
Corporate Payment Solutions product cardholders with a range of emergency assistance and insurance benefits
when they travel. U.S. cardholders can initiate the following services provided to them by calling 1-800-MC-ASSIST
in the U.S. and Canada. Available services may vary from region to region and may include the following:
A service that offers medical referrals to cardholders who become ill or injured while traveling. Additionally,
some insurance coverage is provided with MasterCard Corporate Payment Solutions products.
A service for cardholders who face a legal emergency while traveling. It offers assistance in finding a legal
adviser and in transferring cash from a relative, friend, or business associate to cover legal fees or post bail.
A service that provides collision/loss damage insurance for cardholders when they use their card to rent a car.
Additionally, for MasterCard BusinessCard cardholders, it also provides personal effects insurance.
MasterRental Insurance Coverage
MasterLegal Referral Service
MasterAssist/Medical Protection
MasterAssist Travel Assistance Services
Affinity and Co-branded Cards
7
-
8/11/2019 Auto Rental Guide
8/32
Family of Brands and Services continued
Provides coverage for items purchased with a MasterCard BusinessCard card.
A service that provides emergency roadside assistance almost anywhere in the U.S. and Canada.
A service that helps cardholders prepare for a trip and handle travel emergencies. It includes pre-trip information
for travel abroad, assistance in replacing lost or stolen tickets or documents, and other emergency aid.
MasterCard Travelers Cheques
were introduced in 1981. MasterCard Travelers Cheques, which are offered in7 international currencies, including the Euro, are refundable at more than 200,000 locations worldwide. Since
1991, MasterCard and the Thomas Cook Group have blended their travelers cheque marketing programs, with
MasterCard focusing on global brand management and promotion, and Thomas Cook assuming responsibility
for travelers cheque refunds, processing, and certain sales programs. MasterCards and Thomas Cooks operations
centers jointly handle refund and processing functions. Lost or stolen travelers cheques can be reported by
calling 1-800-223-9920.
Valuable Services MasterCard Offers Its Members
Banknet is MasterCards global electronic communications network. It provides around-the-clock availability.The networks flexible, distributed architecture, which connects all MasterCard members, other parties, and
MasterCard data processing centers into a single on-line financial network, facilitates authorization of transactions
from almost anywhere in the world in under one second. By separating communications processing from
financial applications processing, Banknet is able to transmit an unlimited variety of financial applications
over one network.
MasterCard has introduced a cardholder services program that is the first of its kind in the payments industry
MasterCard Global Servicea worldwide customer service program that through detailed servicing instructionsprovided by card issuers, ensures cardholders are serviced to the furthest extent possible at the time of their call.
MasterCard Global Service is available to cardholders simply when they make a toll-free telephone call from any
of over 75 countries, or a collect call from countries in which toll-free service is not available. Research has
shown that easily accessible customer service is extremely important to cardholders, but until now was not
readily available when they were traveling outside their home countries. Global Service provides all MasterCard
cardholders with the security of emergency assistance in their own language, 24 hours a day, 365 days a year,
from anywhere they travel.
MasterCard Global Card Services
Banknet Transaction-processing Network
MasterCard Travelers Cheques
MasterTrip Travel Assistance
Master RoadAssist Roadside Service
Purchase Assurance and Extended Warranty
8
-
8/11/2019 Auto Rental Guide
9/32
9
MasterCard Global Service is an umbrella program that provides cardholders access to all MasterCard service
offerings, including MasterAssist Travel Assistance Services, and issuers proprietary insurance and travel
assistance programs.
MasterCard Global Service offers the following card-related services: Lost/Stolen Card Reporting (LSR) to protect cardholders against misuse of their cards.
Emergency Card Replacement (ECR) through which a temporary replacement card is delivered to
the cardholder.
Emergency Cash Advance (ECA) to assist the cardholder in case of a lost or stolen card.
MasterCard/Cirrus ATM Network Location Information
Transfer to cardholders issuer or third-party service provider.
MasterCard Global Service toll-free telephone numbers are easily accessible through member-generated
cardholder communications, live operator directory assistance and printed telephone directories, and through
hotels, airport advertising, and travel shops in major cities worldwide. MasterCard
cardholders who aretraveling in the United States and Canada and are in need of emergency assistance can call MasterCard Global
Service at 1-800-307-7309.
Address Verification Service (AVS). This service is an anti-fraud program, available in the United States, which
enables merchants in certain industries to verify a cardholders bill-to address as part of the authorization
message.
The MasterCard Fleet Card Tax Exemption Program was developed in 1998 to enable eligible U.S. government
and other public service agencies using the MasterCard Fleet Card for fuel purchases, to receive state fuel tax
rebates within the first ten calendar days following the month eligible purchases were made at participating fuel
company locations. The program operates without requiring any party in the transactions to submit complicat-
ed/voluminous paper forms and receipts. This program also provides associated benefits to the major fuel suppli-
ers participating in the program as well since they receive on-line reports generated by MasterCards tax program
contractor. MasterCard also produces a directory of participating locations so that Fleet Card cardholders will
know where to make fuel purchases in order to gain the benefits of this program.
Fleet Card Tax Exemption Program
Address Verification Service
-
8/11/2019 Auto Rental Guide
10/32
This section is a summary of some of the relevant MasterCard
Bylaws and Rules which both merchants and members must abide
by and which have a direct impact on the auto rental industry. This
handbook contains information based on the current MasterCard
rules and operating procedures.
All auto rental companies accepting a MasterCard card as payment
must have a contractual agreement between themselves and a
MasterCard member. The agreement must contain the proper
acceptance procedures as outlined in Chapter 9.04 (b) of the
MasterCard Rules. The remaining content of the merchant agreement
is at the discretion of the member. The member must comply withMasterCards Rules.
Merchants must honor without discrimination or discouragement all
valid MasterCard cards when properly presented as payment from
customers and must maintain a policy that will not discriminate
among customers seeking to make purchases by using a
MasterCard card.
MERCHANTS ARE PROHIBITED FROM THE FOLLOWING: Requiring the cardholder to provide additional identification
information, such as a telephone number, home address, or both,
as a condition of accepting a MasterCard card. MasterCard realizes
in the auto rental industry merchants have established internal
guidelines requiring the name and address of the passenger prior
to releasing an auto to that individual. Since this practice does
not single out only MasterCard card transactions, you are not in
violation of this policy.
Assessing a surcharge to the transaction.
Posting or imposing a minimum or maximum transaction amount
as a prerequisite to accepting the card.
Processing a MasterCard card transaction as a means of obtaining
uncollectible debts or dishonored checks.
The merchant shall adequately display the MasterCard mark or logo-
type on promotional materials to inform the public that
MasterCard cards will be honored at your location(s).
Merchants Must Display the MasterCard Mark andCorresponding Logotype
Merchants Must Honor All MasterCard Cards
Merchant Agreement
10
Basic
Operating
Procedures
Merchant Agreement
Authorization Procedures
-Reservations
Deposit Procedures
Express Service Procedures
Premier Service Programs
-
8/11/2019 Auto Rental Guide
11/32
11
Before processing a MasterCard card transaction you should:
Check the valid date, if it appears on the card, and the expiration date of each card presented to you.If the card is expired or not yet valid, you may attempt an authorization for approval providing you enter the
expiration date shown on the card. If approval is denied, do not complete the sale with that card. If approval
is received, you may process the transaction.
Compare the embossed account number to the number displayed and/or printed either on the point-of-sale device
or on the Rental Agreement.
When applicable, compare the embossed account number on the face of the card with the account number
indent printed on the back of the card on the signature panel.
Note: If a cards embossed account number, indent printed account number, and/or encoded account number
do not agree, and a MasterCard card does not have a MasterCard hologram on the lower right corner of the
card face, you should call your acquirers voice authorization center and identify the authorization request as a
Code 10. This will alert the operator that you suspect the card being presented may be fraudulent. See
Fraud section for Recovery of Cards and Rewards.
All media containing MasterCard account numbers, card imprints (such as sales and credit slips, and carbons),
must be stored in an area limited to selected personnel until they are discarded and must be destroyed in a
manner that will render the data unreadable. Do not sell, purchase, provide, or exchange a cardholders name
or MasterCard account number information in any form (e.g.: imprinted sales slips, carbon copies of imprinted
sales slips, or electronic media), to any third party other than to the merchants agents for the purpose of assistingyou in your business. All MasterCard media must be retained for three years for transactions prior to April 1, 1997
and 18 months for transactions on or after April 1, 1997, unless stipulated otherwise by local law.
Reservations
Obtain all required information from the cardholder or travel agent (on cardholders behalf):
Cardholder Name
Account Number
Expiration Date
Authorization Number (if authorization was performed by the travelagent: if not, an authorization should be obtained through an
electronic point of sale device, or call your acquiring bank/processor)
Additionally, the following information should be communicated with
the cardholder:
Confirm travel dates
Verify partial deposit requirements
Confirm outstanding balance and billing time frames
Review cancellation procedures and time frames
Deliver to the customer an accurate and completed copy of all sales slips
Authorization Procedures
Disclosure and Storage of Cardholder Information
For Security Reasons...
-
8/11/2019 Auto Rental Guide
12/32
Be aware when attempting additional authorizations:
If the subsequent request is denied, you will be protected for the cumulative
amount of previously approved authorizations, plus 15%.
If the subsequent request is denied, do not attempt to obtain an authorization
for smaller incremental dollar amounts as this is a violation of MasterCard rules.
If a pick-up card response is received, you are encouraged to pick-up the card.
Again, you will be protected for the cumulative amount of the previously
approved authorizations, plus 15%.
Be sure to include the authorization approval codes, the amounts authorized, and
the dates of each authorization on the sales slip.
Be sure to include on the sales slip: All charges associated with the rental including ancillary charges, (i.e., taxes, fuel service, etc.)
The date of the transaction.
The customers account number, expiration date and name, either by imprinting the card or by magnetically
swiping the card through your point-of-sale (POS) terminal.
Obtain the signature of the customer on the Rental Agreement/sales slip.
Be sure to include the authorization approval codes, the amounts authorized, and the dates of each
authorization on the Rental Agreement/sales slip.
Deliver to the customer an accurate and completed copy of the Rental Agreement/sales slip.
This procedure allows you bill MasterCard cardholders for additional charges discovered after vehicle check-in,
such as fuel, parking tickets, etc. and receive the same level of security as in other transactions. Follow these steps
when handling such charges.
After the customer checks-in:
You may deposit a separate or amended Rental Agreement for delayed charges such as gas, drop-off charges,
parking tickets, etc. provided the customer has agreed to be responsible for such charges.
Mail the customer a copy of the Rental Agreement with a detailed explanation of the additional charges.
Note: You should not submit a separate or amended Rental Agreement for loss, theft, damages, or deductibles
unless you have advised the customer in writing of the charges and the customer has agreed in writing of the
charges with a MasterCard card. You must have proper documentation to support any ancillary charges, (e.g.,
copy of the parking ticket). If you do submit a charge without the support documentation and the item becomes
a chargeback you will probably sustain the financial loss for that item.
Compare the signature on the rental agreement/sales slip with the signature on the card.
If your terminal displays an encoded account number when you swipe the card for authorization, compare that
displayed account number with the account number embossed on the card.
If the card has a photograph of the cardholder, compare the photograph to the person presenting the card.
For Fraud Prevention From Chargebacks:
How To Handle Charges After Check-in:
Deposit Procedures
Basic Operating Procedures continued
12
-
8/11/2019 Auto Rental Guide
13/32
13
If you believe there is a significant discrepancy in the signature, or if the account numbers are not the same,
or if the photographic identification is uncertain, you should contact your acquirers voice authorization center
for instructions.
If the card is not signed before completing the transaction, you must ask the cardholder for additionalidentification (but not record the information), and require the cardholder to sign the card and seek
authorization regardless of the transaction amount.
Check the valid date, if it appears on the card, and the expiration date of the card. If the card is expired or not
yet valid, you may attempt an authorization providing you enter the expiration date. If an approval is received,
you may process the transaction. If an approval is not received, do not accept the card.
When requesting authorization where the card and cardholder are not present, ask the cardholder for the
3 digit Card Validation Code located in the signature panel, after the last 4 digits of the account number.
Note: Sometimes a cardholder may not have received his/her new card from the issuer and presents an expired
card at the point-of-sale. Or sometimes a cardholder receives his/her new card, cuts up the old but not yet expired
card, and presents the new card on a date that is before the valid date. If the issuer approves the transaction, you
may complete the sale.
(Note: Does not apply to non U.S. locations)
This program has been developed to recognize those auto rental merchants that have implemented preferred
services to meet the needs of their best customers. The program affords these merchants acceptance of a
MasterCard card without the card having to be present. The merchant relies upon an existing relationship
with the customer to ensure proper identification thereby expediting the transaction and improving customer
convenience.
Your acquirer (MasterCard member bank) must complete and
submit an application to MasterCard. Additionally, they must supply
MasterCard with:
A copy of your preferred service program requirements.
A copy of the customer registration form. It is the decision
of MasterCard to approve or deny the application.
.
Auto rental merchants must have a preferred customer program
policy that requires the cardholder to register for the program.
Auto rental merchants and travel agents must require the cardholder to sign the preferred customer program
registration form, which must include MasterCard as a payment option.
MasterCard chargebacks as a percentage of MasterCard sales must not exceed an average of .20% for a
six-month period.
Fraud as a percentage of MasterCard sales must not exceed an average of .04% for a six-month period.
For auto rental merchants with multiple acquirers (MasterCard member banks), qualification will be by auto
rental chain. The auto rental merchants forfeit the ability to second present 37 (Fraudulent Transaction-No Cardholder
Qualification Requirements To Participate In The Program
How To Register For The Program
Mastercards Travel Industry Premier Service Program
-
8/11/2019 Auto Rental Guide
14/32
Retrieval
Requests
Flow Chart
Reason Codes
Authorization).
Contact your acquirer (MasterCard member bank) for more informa-
tion about the Travel Industrys Premier Service Program.
We know you have questions about retrievals and chargebacks.
In fact, they are the most common topics auto rental merchants want
to discuss related to the acceptance of credit cards. The questions
range from What is a retrieval request or a chargeback? to How
do we defend these items to the issuer/cardholder? to How do we
prevent them from occurring again? This section specifically addresses
each one of those questions. It is important to keep in mind that a
retrieval request is initiated by an issuereither at the request of thecardholder or the issuer.
Example: A cardholder rents a car from Bobs Auto Rental and charges it
to his MasterCard card in the amount of $106.85. When the cardholder
gets his monthly statement, it shows a transaction for $116.50 for
Burorker RAC. The cardholder, not recognizing the name, amount, or
location, contacts the issuer and states that the transaction may not be
theirs. The issuer then processes a retrieval request and the acquirer
notifies the merchant who responds with a copy of the TID (MasterCard
Retrieval Requests
14
The acquirer does not have representment rights. (Note: If you do not respond to the
retrieval request and the issuer initiates an 01 chargeback, it cannot be reversed.)
The acquirer has 30 days from the Central Site Processing date of the retrieval request to fulfill
the request. The issuer must wait the 30 days for the TID to arrive. If the TID is not received within
the 30 days, the issuer may process a chargeback 01 between day 31 and 60.
The acquirer initiates a request to the merchant for a copy of the TID.
The card-issuing bank asks the acquirer for a copy of the Transaction Information
Document (TID) that may include the auto Rental Agreement or point-of-sale terminal
receipt within 120 days of the Central Site Processing date.
-
8/11/2019 Auto Rental Guide
15/32
recommends that a copy of the Rental Agreement and sales slip be sent). The acquirer sends a copy of the Rental
Agreement/sales slip to the issuing bank. It shows that the transaction was for a car rental at Bobs Auto Rental and
the amount difference was due to ancillary charges (i.e., fuel service). The confusion arose because the transaction
was identified by Bobs Auto Rental parent company, Burorker RAC, and the amount was adjusted to reflect theancillary charges. This will not only cause a retrieval request but you can be assessed a $25 fine*.
Here is what you should know about Retrieval Requests
A retrieval request occurs when issuers request a copy of the Transaction Information Document (TID auto rental
agreement, registration card, charge slip, and/or point-of-sale terminal receipt) for the transaction. The copy of the
TID may show additional information that can help to resolve the inquiry.
When the issuer requests a copy of the TID, one of six retrieval request reasons are used. This helps the acquir-
er and merchant understand why the TID is being requested. The request reasons are:
= Cardholder does not agree with amount billed
= Does not recognize transaction (merchant name, city, state, or date)
= Transaction Certificate (ICC transaction or Chip card transactions)
= Needs for personal records (tax records or business expense)
= Fraud investigation= Potential chargeback or compliance documentation
The retrieval request reason is used only to identify why the issuer is requesting the slip. The retrieval request
reason does not influence a potential chargeback that may be issued by the issuing bank.
4241
23
22
21
05
Retrieval Request Reason Codes
Retrieval Requests
15
-
8/11/2019 Auto Rental Guide
16/32
Chargebacks
16
Other frequently asked questions after retrieval requests are questions about
chargebacks. The questions range from What is a chargeback? and How
do we defend the items to the issuer/cardholder? to How do we prevent
them from occurring again? Every day, cardholders use their MasterCard
cards and the vast majority of these transactions are processed without a prob-
lem. With over 20 million transactions processed each day, however, there are
invariably going to be some problems. Thats where chargebacks come in.
Some chargebacks arise because of cardholder problems with merchandise or
services. Others result from suspicious merchant or cardholder activity, and still
others simply because of processing errors. Overall, the auto rental industry
receives approximately two chargebacks for every 1,000 transactions. Many of
them could be prevented if the establishments explained their policies up-front,
provided the cardholder with copies of all auto Rental Agreement/sales slips
and in general made certain that the cardholder was informed by mail foritems being billed. e.g., fuel service, parking tickets. Insure transactions are
authorized and processed correctly. This section is specifically intended to help
you understand the top 10 chargebacks that affect the auto rental industry,
how to re-present them and, more importantly, how to prevent them.
Although there are 25 chargeback reason codes, the top 10 account for more
than 90% of the chargebacks that the auto rental industry receives. We hope
that you will find this section helpful! A chargeback is initiated by an issuer
based upon a cardholders dispute or other chargeback rights
The Chargeback Process
Here Is What You Should Know About Chargebacks
Chargebacks
What You Should Know
About Chargebacks
Chargeback Process
Chargeback Reason Codes
The issuer may initiate an arbitration or second chargeback within 45 days of the Central Site
Processing date of the representment. Within 45 days (60 days for members outside the U.S.) of
the processing date of the arbitration chargeback, the acquirer may file an arbitration case with
MasterCard for mediation on the dispute. (Note: MasterCard will assess a $150 filing fee and
a $250 administrative fee to the member found responsible for the item in dispute.)
Chargeback Reason Code 02: Requested Item Illegible or Missing. The acquirer receives the
chargeback and initiates a request to merchant for legible documentation in order to
reverse/represent the item. This action is known as a second presentment. The acquirer has
to respond within 45 days of the Central Site Processing date of the first chargeback
The card-issuing bank initiates first chargeback within timeframe appropriate to reason code.
(Note: If the acquirer does not fulfill a retrieval request, the issuer may initiate a chargeback under
MasterCard Chargeback Reason Code 01: Requested Transaction Information Not Received.)
There are NO second presentment rights for this reason code.
Cardholder or the card-issuing bank disputes the transaction. The card-issuing bank
may initiate a retrieval request to investigate a charge or identify a potential chargeback.
(Note: With exception of 01and 02no other chargebacks require a retrieval request.)
-
8/11/2019 Auto Rental Guide
17/32
17
The following are the 10 top chargeback reason codes that the Auto Rental Industry experiences. A description of the reason
code is provided, along with what to do to reverse the chargeback and tips to avoid the chargeback in the future. (Note: Even
if the acquirer is able to re-present the chargeback, it does not guarantee that the item will not be charged back again.)
Requested Transaction Information Not Received.
The issuer did not receive a reproduction of the TID (Rental Agreement, the sales slip itself, or a substitute
draft) within 30 calendar days of the retrieval request date. The issuer has up to 60 days from the retrieval
request date to utilize this chargeback reason code. A retrieval request is required.
What You Have To Do
There are no second presentment rights under this reason code. If you did send a copy as requested within the acquirers time limit, provide any documentation to support
your claim to your acquirer to address compliance procedures.
Preventative Tip
It is very important to satisfy all retrieval requests within your acquirers timeframe. (Note: Legible copies of
sales drafts must be retained for three years for transactions prior to April 1, 1999 and 18 months for transac-
tions on or after April 1, 1999, but the majority of retrieval requests are within three months of the transac-
tion processing date.)
Requested Item Illegible or Missing
In response to a retrieval request, the copy of the TID was missing required information or contained illegible
information. The issuer needs a clearer and/or more detailed copy in order to resolve the dispute/inquiry. The
issuer has up to 60 days from the retrieval request date to utilize this chargeback reason code. A retrieval
request is required.
What You Have To Do
Provide the best possible copy of the sales slip or Rental Agreement to your acquirer within the proper
timeframe.
Preventative Tips
Satisfy retrieval requests with a clear, legible, and complete copy of the transaction.
If you do not retain the original sales slip or Rental Agreement, ensure that your copies are clear and legible.
Chargeback Reason Code 02
Chargeback Reason Code 01
Chargebacks
01
02
-
8/11/2019 Auto Rental Guide
18/32
Chargebacks continued
Warning Bulletin File
You did not check the account number against the MasterCard Electronic Warning Bulletin file (U.S. merchants),or Warning Bulletin (auto rental merchants located outside of the U.S.), when the cardholder first presented
their card and it was not authorized. The issuer has 45 days from the processing date of the transaction to
initiate this chargeback reason code. A retrieval request is not required.
What You Have To Do
Provide the sales slip/Rental Agreement that indicates the date the transaction was authorized and the
authorization approval code within your acquirers timeframe. (If there were multiple authorizations, be sure to
provide the details of the partial authorizations by providing the amounts that were approved, the authoriza-
tion approval codes, and the authorization dates within your acquirers timeframe.)
Provide proof that the account number was not listed on the MasterCard Electronic Warning Bulletin file orWarning Bulletin when the cardholder first checked out the vehicle.
If the transaction date was misstated or missing, provide the correct date that shows that the account was
not listed in the MasterCard Electronic Warning Bulletin file or Warning Bulletin when the transaction took
place on that date.
Note: You may receive a $25 fine since the chargeback could have been avoided if you had originally supplied
the correct transaction date.
Preventative Tips
Be sure to check the MasterCard Electronic Warning Bulletin file or Warning Bulletin when the cardholder is
checking out the vehicle. Authorization is an easy way to verify if the account number is on a Warning Bulletin(electronic or paper).
Requested/Required Authorization Not Obtained
You failed to obtain the required authorization on a transaction exceeding your predetermined floor limit; or you
requested an authorization and it was not approved. The issuer has 45 days from the Central Site Processing date
of the transaction to initiate a chargeback under this reason code. Note: The issuer should not charge back under
this reason code if the authorized amount and actual transaction amount are within a 15% variance. If the trans-
action amount exceeds the authorized amount by 15% or more, the issuer can charge back the differencebetween the two amounts. Example: Your floor limit is $250. When the cardholder checked in with the rented
car, the final sale amount was $325. You obtained an authorization approval code for $250 when the cardholder
first checked out, but when you attempted to obtain an authorization approval code for the additional $75, the
authorization was declined. The issuer has the right to charge back this item for $37.50 (the difference between
$325 and the $250 plus 15%, which is $287.50). If the final sale amount of the transaction was $287, the issuer
would not be able to charge back the item since the difference between what you authorized and the final
amount of the charge is within the 15% variance.
What You Have To Do
Provide the sales slip or Auto Rental Agreement that indicates the date the transaction was authorized andthe authorization approval code within your acquirers timeframe.
Chargeback Reason Code 08
Chargeback Reason Code 07
18
08
07
-
8/11/2019 Auto Rental Guide
19/32
If there were multiple authorizations, be sure to provide the details of the partial authorizations by providing
the amounts that were approved, the authorization approval codes, and the authorization dates within your
acquirers timeframe.
Preventative Tips
Chargebacks under this reason code are represented 27% of the time because the issuer had difficulty finding
the authorization due to one of the following reasons:
Estimated and multiple authorizations can occur over a period of days or weeks, so the transaction date may
not match the actual date of the authorization.
Due to multiple authorizations, the dollar amount authorized differs from the final transaction amount.
Currency conversion differences.
Therefore, be aware of the above and make sure that all authorization amounts, dates, and approval codes are
written clearly on the Rental Agreement or can easily be obtained through your point-of-sale system.
Account Number Not On File
The issuer cannot match a transactions account number with an account number in its master file. This happens
because either you incorrectly key-entered the account number into the point-of-sale terminal, the account
number was incorrectly keyed by your acquirer when processing the transaction, the account number was not
recorded correctly for a mail/telephone/Internet reservation (e.g., a car rental reservation), or the transaction
was a result of a counterfeit card. The issuer has 45 days from the Central Site Processing date to utilize this
chargeback reason code.
A retrieval request is not required.
What You Have To Do
Provide the TID with a manual imprint of an account number identical to the account number first submitted
for the transaction, or
Provide proof that the transaction was processed at an electronic terminal by providing documentation estab-
lishing that the account number was read from the cards magnetic stripe
and a copy of the TID bearing the account number.
If the transaction was authorized as a mail/telephone/Internet order
(and not as a face-to-face transaction), request that your acquirer
provide the authorization log when reversing the chargeback.
Note: If the chargeback is the result of a keying error, the transaction must
be reprocessed as a new presentment using the correct account number
to protect the issuers chargeback rights and timeframes on the legitimate
account number.
Preventative Tips
If upon vehicle checkout you are unable to magnetically swipe the card for authorization, carefully key-enter
the account number into the point-of-sale terminal and imprint the cardholders card manually using an
imprinter.
Chargeback Reason Code 12
19
12
-
8/11/2019 Auto Rental Guide
20/32
Chargebacks continued
For mail/telephone reservations, write down the card details carefully (and legibly) and verify them with
the cardholder.
Transaction Amount Differs
The issuer may use this for any one (or combination) of the following reasons:
The cardholders documentation confirms an error in addition; or,
The amount of the transaction shown on the cardholders documentation has been increased without his/her
permission; or
The amount on the cardholders slip was improperly processed causing the cardholder to be billed more than
the cardholders documentation confirms.
A retrieval request is not required. Note: Issuers can charge back only the disputed amount.
Example: A cardholders auto rental receipt shows $257.86, but the cardholder was billed $287.86. In this case,the issuer should charge back $30 if the cardholder questions the amount that was billed.
What You Have To Do
Submit a copy of the Rental Agreement (if applicable), along with any support documentation to prove the
validity of the disputed amount, e.g., fuel service, taxes, etc., to your acquirer.
Note: This problem is particularly common on express check-out bills because additional legitimate charges
may have been added to the bill after the cardholder has checked in the vehicle and therefore not reflected on
his copy of the Rental Agreement or sales slip.
Preventative Tips Whenever possible, send an adjusted bill to the cardholder if there are changes in the transaction amount
after the cardholder has returned the vehicle.
Make sure you have sufficient documentation for any additional charges in case the cardholder questions the
transaction amounts.
Note: This problem is particularly common on the express check-out bills because additional legitimate
charges may have been added to the bill after the cardholder has checked in the vehicle and therefore are not
reflected on his copy of the Rental Agreement or sales slip.
Duplicate Processing
The cardholder or issuer suspects that a transaction was processed more than once, in effect they believe they
were double billed. The issuer has 120 days from the Central Site Processing date to initiate a chargeback
under this reason code.
What You Have To Do
If you believe that you did not process the transaction twice, submit to your acquirer a copy of the sales
slip/Rental Agreement detailing that the transaction was only processed once and therefore the cardholder
was only billed once for the amount of the sale. If the acquirer made the error, request that they show you
where you were paid twice.
Chargeback Reason Code 34
Chargeback Reason Code 31
20
31
34
-
8/11/2019 Auto Rental Guide
21/32
If the transaction was processed twice and a credit was immediately issued to the customer, provide your
acquirer with the details reflecting the double billing as well as proof the credit was processed.
If the cardholder was billed twice due to their renting for two or more vehicles, provide copies of each
individual sales slip/Rental Agreement to support the two or more transactions.
Preventative Tips
In the event a customer had inadvertently been double billed for the vehicle rental, contact the cardholder,
either by phone or mail, and advise them of the error and state that a credit has been processed to their
account. You may even want to inform them that the credit may appear on their next billing statement.
Reconcile your charge slips to the point-of-sale terminal daily, making sure that you are processing
transactions correctly.
Ensure that all personnel are aware of correct processing procedures so that if an error is made, they know
how to void a transaction.
Fraudulent Transaction-No Cardholder Authorization
The issuer received a letter from a cardholder stating that he/she did not authorize a particular transaction.
The issuer has 120 days from the Central Site Processing date of the transaction to initiate a chargeback under
this reason code. No retrieval request is required prior to initiating this chargeback. The acquirer can second
present with documentation that the transaction was the result of a properly completed auto rental reservation;
cardholders account number, card expiration date, name embossed on the card, address and reservation
confirmation number.
What You Have To Do If the Cardholder Made the Transaction in Question
Provide evidence of the cardholders signature with a copy of the signed Rental Agreement and/or point-of-sale
terminal-generated receipt, or other documentation to establish the cards presence showing that either the
account number was read from the cards magnetic stripe or that the card was imprinted manually.
Preventative Tips
If upon vehicle check-out you are unable to magnetically swipe the card for authorization, be sure to imprint
the card manually using an imprinter.
If upon vehicle check-out you magnetically swipe the card for authorization but receive a Call center or
Refer message while attempting authorization, do not ignore this message. Contact your acquirers author-
ization center to receive a voice authorization. If you do receive an approval code, imprint the card manually
using an imprinter. This will help prove the card was present when you received the voice authorization.
Make sure the cardholder signs the Rental Agreement or charge form when checking out the vehicle. The
signature may appear on the Rental Agreement: it does not have to be on the terminal receipt or embossed
sales slip. Be sure to clearly explain how the signed Rental Agreement and embossed slip or terminal receipt
correlates if they are separate documents.
Services Not Rendered
A cardholders account was charged for services that were not provided. This reason code does not apply
to quality disputes, i.e., the quality of the vehicle, ancillary services such as cellular telephone rental, etc.
Chargeback Reason Code 59
Chargeback Reason Code 37
21
37
59
-
8/11/2019 Auto Rental Guide
22/32
Chargebacks continued
The issuer has 120 days from the latest anticipated date of services to process this chargeback. A retrieval request
is not required. This reason code has six separate conditions, but only two apply to the auto rental industry:
RS 1- Merchant unwilling or unable to render service (e.g., out of business)
RS 2- Services/goods were paid for by other means (e.g., check, cash, another card)
What You Have To Do
If RS 1, provide proof that the services were provided or could have been rendered to the cardholder or
persons authorized by the cardholder (e.g., the auto rental establishment is not out of business or the
merchant was willing and able to provide the service).
If RS 2, provide an explanation that you were not presented with a voucher by the cardholder; e.g., you were
not paid by the cardholder. If a voucher was provided, you are not permitted to bill the cardholder, payment
must be arranged between the merchant and the originator of the voucher.
Preventative Tips
If you have already processed a transaction (e.g., the cardholder will be attending a convention and you took
a deposit) but you will not be able to provide services to the cardholder (e.g., storm damage, convention
canceled, etc.) contact the cardholder and inform them you are processing a credit to their account.
Credit Not Processed
You did not process a credit to the cardholders account or the cardholder canceled services and has not
been refused a credit.
What You Have To Do If you submitted a credit to the cardholders account, contact your acquirer to investigate whether
or not the credit was processed. If it was processed, the acquirer will re-present the chargeback.
If you did not process the credit and a credit is due, accept the chargeback.
If the cardholder is not due a credit, explain in writing why.
Preventative Tips
Process all credits in a timely manner.
Disclose cancellation policies and refund policies clearly to avoid confusion.
A little background about MasterRental Insurance Coverage
The MasterCard International Incorporated (MasterCard) MasterRental Insurance Coverage ("MasterRental") is
an insurance program designed to provide eligible MasterCard cardholders with insurance for damage to auto
rental vehicles caused by collision, fire, or theft.
This section of the "Auto Rental Reference Guide" provides you with information to easily process a claim
when losses occur to auto rental vehicles. You will also find detailed data on coverage eligibility, claim
Collision Damage/Loss Damage Waiver
Chargeback Reason Code 60
22
60
-
8/11/2019 Auto Rental Guide
23/32
23
procedures, and contact telephone numbers.
By ensuring that coverage is properly documented and essential information is captured at the time of the
initial rental transaction, the rental experience should be more manageable for cardholders, our mutualcustomer, should processing a claim ever be necessary.
The following section addresses the CDW/LDW provided by MasterCard for certain card products. Some issuers
provide similar coverage on their standard card product. Cardholders who decline the rental agency insurance
should check with their issuer on details of coverage.
What You Should Know About MasterCard Insurance Coverage
Description of Coverage
With MasterRental, cardholders must charge the entire car rental to their Canadian-issued Gold MasterCard
card, their U.S.-issued Gold MasterCard card, or their U.S.-issued MasterCard BusinessCard card and decline
the car rental companys collision/loss damage to be eligible. For MasterCard BusinessCard cardholders, they
must also waive personal effects coverage, as excess coverage is provided for loss, theft, or damage to the
personal belongings of the cardholder, and immediate family member, and/or business associate traveling
with him or her during the trip using the rental car.
Gold MasterCard card coverage is secondary to any other coverage the cardholder may have, unless the car
is rented outside the United States, in which case the coverage is primary. MasterCard BusinessCard card
coverage is primary worldwide for collision/loss damage and secondary for personal effects coverage.
MasterRental begins when the cardholder or another person authorized to operate the vehicle under the
Rental Agreement takes control of the auto and remains in effect until the auto rental agency assumescontrol of the rental vehicle, not exceeding 15 consecutive calendar days for U.S.-issued cards and 31 days
for Canadian-issued cards. If a coupon or voucher of any kind is applied toward the payment of the rental
vehicle, in order to be eligible for MasterRental coverage, at least one day of rental must be initially charged
to you Gold MasterCard card.
Personal liability is not covered by any MasterCard card under the MasterRental Insurance Coverage Program.
Coverage Will Be Provided for
Physical damage to the rental car as a result of a collision which occurs while the cardholder, or anotherauthorized driver is driving , or while the rental car is left unattended.
Any loss of, or damage to, the rental car as a result of fire, storm, vandalism, or theft.
Reasonable and customary loss of use charges that are substantiated and imposed by the car rental company
for the period of time the car is being repaired ("loss of use charges"). When a car is determined to be a
total loss, payment will be made only for the actual cash value of the car.
Most vehicles, including minivans, are covered.
Most passenger sedans are covered.
What Is Covered? U.S.-Issued Cards
-
8/11/2019 Auto Rental Guide
24/32
24
Chargebacks continued
MasterRental benefits provide the cardholder with the protection against losses arising from the contractual lia-
bility assumed when renting and operating the rental vehicle as the cardholder would have if the cardholder
accepted the "Collision Damage Waiver" or "CDW" (or similar provision, such as "Loss Damage Waiver" or
"LDW") from the auto rental agency. If CDW, LDW, or similar coverage is not offered by the auto rental agency,
then no coverage is available under this program.
The amount of benefit payable will be the amount of the loss which would have been waived (including any
deductible) had the cardholder accepted the auto rental agencys collision damage insurance, less the following:
Any amount payable to the cardholders own automobile insurance policy;
Any amount payable to the cardholders employers insurance coverage when the auto was rented for business
purposes:
Any amount assumed, waived, or paid by the auto rental agency or its insurer; Most four wheel passenger autos
Vans are not excluded provided that they
Are for private passenger use with seating for no more than 8 occupants including the driver;
Do not exceed a three-quarter ton rating;
Are not designed for recreational off-road use;
Are not to be use for hire by others.
Coverage is not all inclusive and is not provided for the following:
Any obligation the cardholder assumes other than what is covered under this program or the cardholders
personal auto policy.
Any collision that occurs while the cardholder or an authorized driver is in violation of the Rental Agreement,
including but not limited to driving while under the influence of drugs or alcohol or reckless driving.
Any rental contract exceeding 15 consecutive days.
Collision/loss damage waivers purchased through the auto rental agency.
Losses caused by an unauthorized driver.
Mechanical failures caused by freezing.
Blowouts and tire damage.
Any damage that is not accidental.
Depreciation, administrative, or other fees charged by the auto rental company.
Certain types of vehicles.
Coverage is not available where prohibited by law.
Full-sized vans mounted on truck chassis, campers, trucks, off-road vehicles (for examples; a Jeep Wrangler and
other recreation vehicles); however, all minivans are covered unless mounted on truck chassis.
Trailers or motorbikes.
Antique cars (which means cars that are over 20 years old or have not been manufactured for at least 10 years).
Limousines.
What Is Not Covered U.S.-Issued Cards
What Is Covered? Canadian-Issued Cards
-
8/11/2019 Auto Rental Guide
25/32
25
Expensive or exotic, (for example, Corvette, Mercedes-Benz, Porsche, Jaguar)*
Sport utility vehicles (for example, Jeep Cherokee)**
*Restriction does not apply outside the United States.
**For MasterCard BusinessCard cards, sport utility vehicles are excluded from coverage only when loss or
damage occurs anywhere other than on public or paved roads.
Any obligation the cardholder assumes other than what is covered under this program or the cardholders
personal auto policy.
Rental of trucks, vans used for commercial or recreational use, campers, off-road and other recreational vehicles,
trailers, motorcycles, mopeds, motorbikes, antique autos which means cars that are over 20 years old or have
not been manufactured for at least 10 years, limousines, expensive or exotic cars (for example, Corvette,
Jaguar, Mercedes-Benz, Morgan, Porsche,Rolls Royce, Sterling).
Any collision that occurs while the cardholder or an authorized driver is in violation of the Rental Agreement,
including but not limited to driving while under the influence of drugs or alcohol or reckless driving.
Losses caused by an unauthorized driver.
Collision/loss damage waivers purchased through the auto rental agency.
Any rental contract exceeding 31 consecutive days.
Vehicles rented in a manner other than under a contract on a daily, weekly, or monthly basis.
Vehicles rented under a monthly or yearly lease.
If a customer is involved in a situation where the rental car is damaged or stolen, please instruct the cardholder
to call us immediately, so we can send the claim form. The cardholder must report his/her claim within 30 days
of the incident for U.S.-issued cards and within 45 days of the incident for Canadian-issued cards to the
MasterRental administrator or the claim will be denied.
To facilitate the claims process, forward all documentation to the cardholder. The cardholder will then forward
such documentation on to the MasterCard Assistance Center with the additional documentation listed.
Rental Car Agency Documentation
Copy of the complete Rental Agreement with terms and conditions.
Copy of the MasterCard charge receipt.
Car agencys accident report.
Car agencys damage appraisal and/or final repair bill.
Car agencys daily fleet utilization report log is loss of use is claimed.
Documentation Required To Have The Claim Adjudicated
Claims Procedures
How To File A MasterRental Claim
What Is Not Covered Canadian-Issued Cards
-
8/11/2019 Auto Rental Guide
26/32
MasterCard
Assistance
Center
26
Cardholder Documentation
Completed claim form.
Police report.
Copy of the declaration page from the customers personal or corporate
auto insurance coverage or a notarized statement certifying no other
insurance exists (for Gold MasterCard and Gold MasterMoney cardholders).
Copy of settlement from primary insurance carrier (for Gold MasterCard
cardholders).
Upon approval, the MasterCard Assistance Center will forward payment to
the appropriate parties.
MasterCard Assistance Center
Innovative Services of America,P.O. Box 837, Golden, CO 80402-0367
The U.S. MasterCard Assistance Center, which is only available to U.S.-
issued MasterCard cardholders, is available to file a claim or answer any
questions the cardholder may have.
In the United States 1-800-MC-ASSIST (1-800-622-7747)
Outside the United States 303-278-8000 (call collect)
Based on the first six numbers of an eligible Canadian-issued MasterCard
card, there are various telephone numbers to reach MasterCard card
representatives concerning the MasterRental Insurance Coverage Program.
Please identify the first six numbers of the account number embossed
on the front of the card and make a telephone call to the corresponding
telephone number listed below.
Canadian Issuer First Six Numbers Contact Phone NumbersBank of Montreal 519330 thru 519349 1-800-426-6123
519394 thru 519398 (202) 331-1696 from
519430 thru 519439 outside the U.S. or Canada
519460 thru 519472
National Bank 525895 1-800-361-6068
of Canada 525897 (514) 286-8411 from
525880 thru 525889 outside the U.S. or Canada
Canada Trust 526805 1-800-877-3061
526815 (416) 777-1416 from
526823 outside the U.S. or Canada
526825
526863
Credit Union Electronic 531640 thru 531699 1-800-327-9762
Transaction Services 531740 thru 531799 (202) 331-1607
outside U.S. the or Canada
National Trust 542166 1-800-327-9762
(214) 783-7514 from
outside the U.S. or Canada
Canadian-Issued Cards
United States-Issued Cards
-
8/11/2019 Auto Rental Guide
27/32
27
How To
Prevent Fraud
MasterCard initiatives
in combating fraud
Fraud prevention tools
Merchant tips in combating
fraud
MasterCards future initiatives
Background
As you are probably aware, bankcard fraud is an old problem and,
given the ever-increasing purchasing power of payment cards, it will
continue to be a challenge in the future. MasterCards role in con-
trolling bankcard fraud is to provide effective tools that members
can use to prevent abuse, without inconveniencing honest cardhold-
ers and merchants. Through technology, MasterCard helps issuers
get "bad" cards out of circulation, deals with merchants who per-
petuate fraud, and prevents fraudulent applications for credit cards.
Through education, MasterCard teaches cardholders, merchants,
and members how to prevent fraud.
Fraud Level Remains Constant As New Challengesand Technologies Emerge
MasterCards ongoing battle against bankcard fraud continues to
keep member losses at historically low levels even as fraudsters
become increasingly resourceful, with the aid of new technologies.
MasterCard has been a leader in the development of security fea-
tures, such as the first Tamper-Evident signature panel and the use
of card validation codes and the use of three dimensional holo-
grams. Building on this history of innovation, MasterCard continuesto develop and deliver new security initiatives that strengthen fraud
prevention.
Our Proprietary Technology
Problems arising from the increased unauthorized use of lost and
stolen cards led to the creation of MasterCards authorization serv-
ice. Banknet, MasterCards proprietary telecommunications net-
work, created in 1984, has reduced the cost of authorization to
pennies. Authorizations, automated by low-cost terminals that are
connected electronically to members, take less than two seconds.Advanced authorization technology has made it possible for many
merchants to get authorizations for all transactions, regardless of
the amount, providing issuers unprecedented control over the use of
the cards they issue.
Education
MasterCard provides members, merchants, and cardholders with up-
to-date information on counterfeit and fraud risks, and works with
individual members, merchants, and vendors to identify specific
problems and develop specialized techniques to solve them.
Lets Work Together To Prevent Fraud
-
8/11/2019 Auto Rental Guide
28/32
MasterCard also offers a broad array of programs to combat fraud, as well as brochures, videos, and seminars
to keep members, merchants, and law enforcement officials informed of the latest types of fraud. The
programs and materials include:
Fraud awareness videos.
Point-of-sale guides/laminated cards identifying fraudulent cards.
Training seminars for the U.S. Secret Service on current fraud activities.
Law enforcement hotline.
For further information on the programs and materials available to you, contact your acquirer. Some materials
are available free of charge and others may be obtained for a nominal fee. Some merchants have actually
incorporated a number of our materials into their in-house training programs.
We Have Designed Enhanced Security Features Right Into Our Cards
The key features of this security package, which is designed to prevent cards from being altered, include:
A MasterCard embossed security character, alerting sales clerks to the fact that the card has these security
features.
Indent printing of the account number on the Tamper-Evident signature panel.
Two Card Validation Codes (CVCs), that are two different algorithmically derived numbers chosen by the
issuer. One is encoded on the magnetic stripe, and the other is indent-printed on the signature panel follow-
ing the last 4 digits of the account number.
MasterCard Also Does Extensive Investigative Work
MasterCard has long-established close working relationships with law enforcement agencies around the world.
As a result, MasterCard:
Conducts investigations on behalf of, and in conjunction with, members worldwide.
Coordinates investigations by members and law enforcement officials on an inter-regional basis.
Organizes and finances "sting" operations.
Operates a 24-hour hotline for law enforcement investigation assistance.
Protecting yourself against bankcard fraud is as easy as 1-2-3-4-5
five steps to protect against bankcard fraud
Inspect the embossing
The embossed account numbers on a MasterCard card should begin with a "5" and have 16 digits.
The entire account number should be aligned and of the same size, height, and style. Embossed numbers
and characters should not have been altered or re-embossed. Look for "ghost images" of other numbers
behind the embossing on either the front or the back of the card.
The valid date lists the last date on which the card is valid. Some cards may have an effective date as well.
MasterCard cards will have a specially embossed "MC" security character next to the expiration date.
Step 1
Fraud
How To Prevent Fraud continued
28
-
8/11/2019 Auto Rental Guide
29/32
29
Examine the hologram
A hologram with interlocking globes showing the continents should appear three-dimensional and movewhen the card is tilted. Note, the hologram and MasterCard brandmark may appear on the reverse side of
the card
The word "MasterCard" will appear in the background of the hologram. The letters "MC" are microen-
graved around the two rings.
Check the signature panel
The signature panel should be printed with a repetitive, multi-colored diagonal background pattern of the
word "MasterCard," be smooth to the touch, and show no evidence of tampering. The signature, in ink, must reasonably match the one on your sales slip.
The last 4 digits of the 16-digit MasterCard card account number (matching the one embossed on the card
front) will be indent-printed in reverse italics on the Tamper-Evident signature panel. The account number will
be followed by a three-digit indent-printed code.
Compare the signature on the card to the signature on the Rental Agreement/sales draft.
Watch for suspicious behavior be alert for the customer who:
Takes the card from a pocket instead of a wallet. Signs the sales slip or Rental Agreement slowly or awkwardly.
Cannot provide a photo identification when asked.
What to Do If You Suspect Fraud
Call your authorization center and say "Code 10."
The operator will ask a series of questions. Hold the bankcard while the authorization operator gives you fur-
ther instructions.
If the operator says the card has been reported stolen, follow the operators instructions.
Dont put yourself in any danger. Never directly challenge the card user or physically confront anyone you
suspect is using a stolen bankcard.
Members and merchants should use their best efforts to recover a card by reasonable and peaceful means in
the following situations:
If the member or merchant is advised by the issuer to recover the card in response to an authorization
request.
If the account number is listed on the Electronic Warning Bulletin file or an effective Warning Notice.
Recover Cards and Earn Big
Step 5
Step 4
Step 3
Step 2
-
8/11/2019 Auto Rental Guide
30/32
How To Prevent Fraud continued
A merchant capturing a card listed on the Electronic Warning Bulletin file will receive US$50 from your
acquirer. A merchant, as a result of an authorization call initiated because the merchant was suspicious of the transac-
tion, captures a card not listed in the Electronic Warning Bulletin file. That merchant will be paid US$100 by
your acquirer.
A merchant who captures a counterfeit card by the use of an authenticating POS terminal will be paid
US$100 by your acquirer.
Any merchant or merchant employee who provides information leading to the arrest and conviction of an
individual using a card fraudulently will receive up to US$1,000.
War On Fraud
MasterCard develops and supports innovative technologies that protect consumers and merchants from card
fraud and unsafe transactions when purchasing products or servicewhether it is face-to-face, by phone and
mail, or over the Internet. Also, through its many fraud-fighting programs, MasterCard works proactively
with its members, the industry and the public to build consumer confidence and increase the security of
transactions. More details on some of the initiatives mentioned can be found on MasterCards website at
www.mastercard.com.
Future Initiatives
Rewards
30
-
8/11/2019 Auto Rental Guide
31/32
31
Acquirer/Acquiring MemberA member of MasterCard that maintains merchant relation-
ships and receives all bankcard transactions from the merchant.
Can also be used to describe the disburser of funds in a cash dis-
bursement.
Address Verification ServiceA MasterCard service that verifies the cardholders billing
address in order to help combat non face-to-face fraud.
Affinity CardA credit card issued by a member in conjunction with an organ-
ization or collective group (e.g., a professional association or
special interest group) that is identified on the card. The card
issuer often pays the organization a royalty on charge transac-
tions.
AIMSAlso known as the MasterCard Address Information
Management Service, is an interactive, on-line information
resource and suspected-fraud monitoring system.
ArbitrationThe procedure a member can use to resolve a chargeback-relat-
ed dispute between two members. MasterCard resolves the dis-
pute between members and determines responsibility for the
fines that may be assessed to the participating members.
AuthorizationThe process by which a transaction is approved by the issuer or
by MasterCard on behalf of the issuer. Permission is given (or
denied) to the merchant, via the acquirer, to accept a specific
transaction for the card account number. Authorization is based
on the cardholder account status and available credit.
Authorization CodeThe alpha/numeric code designated by the issuer, given to a
sales transaction as verification that the sale has been author-
ized. The authorization code is always included on the mer-
chant sales draft.
Authorization RequestA Merchants request for approval to accept a cardholder sales
transaction.
Authorization TerminalA point-of-sale terminal permitting electronic authorization.
Authorization terminals do not necessarily capture transaction
data into a system.
BankcardA financial transaction card issued by a financial institution.
Bankcard Associationa group of institutions formed for the purpose of sponsoring a
bankcard program, using a common processing and adminis-
tration center.
MasterCard BusinessCard
A Bankcard issued to companies for use by company employees.
The liability for use of the card typically rests with the compa-
ny, not with the employees.
Central Site Processing DateThe date that MasterCard receives the transaction from the
acquirer and forwards it to the issuing bank for posting to the
cardholders account.
ChargebackA dispute procedure initiated by the issuer after receipt of the
initial presentment from the acquirer. Used to correct erro-
neous presentments.
Chargeback PeriodThe number of calendar days (counted from the Central Siteprocessing date) during which the issuer has the right to charge
the transaction back to the acquirer may not exceed 120 days.
Chargeback Reason CodeA numerical code which identifies the specific reason for the
chargeback. MasterCard has their own chargeback codes which
may differ from other card companies.
Check-In DateThe date the cardholder arrives at the lodging establishment.
Check-Out DateThe date the cardholder checks out of the hotel. Also consid-
ered to be the transaction date.
Co-Branded CardsA customized card product for a specific retailer or service
provider, such as General Motors, that wishes to solicit its cus-
tomers.
ComplianceThe procedure a MasterCard member may use to resolve a dis-
pute between members when no chargeback reason code
applies.
Counterfeit CardAn instrument or device that has been embossed or printed (or
both) and/or contains a magnetic stripe or an integrated circuit
device and/or that bears the MasterCard symbol so as to pur-port to be a MasterCard but is not a MasterCard because the
embossing or printing of such instrument or device or the use
of the MasterCard symbol theron was not authorized or that,
having been validly issued, has been altered or re-fabricated.
Electronic Warning BulletinA list of restricted MasterCard accounts, covering the U.S.
region, which is updated daily. The paper version of the file
contains restricted account numbers and group or series listings
for local or regional distribution outside the U.S. region.
glossary
-
8/11/2019 Auto Rental Guide
32/32
EmbossingThe process of printing data, in the form of raised characters,
on the bankcard. Provides identification of the card and allows
the imprinting of sales drafts.
Floor LimitA dollar amount set by the acquirer in accordance with
MasterCard rules and regulations. The merchant must obtain
authorization for any transaction over the floor limit.
Gold MasterCard CardA card program offering higher credit services. Qualifications
for cardholder applicants are generally more stringent than for
the standard card.
Hotel Folio
A detailed contract with the cardholder indicating all chargesfor which the cardholder is responsible.
IssuerThe financial institution (a licensed member of MasterCard)
that holds contractual agreements with and issues cards to
cardholders.
Maestro Point-of-Sale ProgramThe Maestro program is a global, on-line point of sale debit
top related