auto rental guide

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


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.


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


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


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


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


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


8/32

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


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


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


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...


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


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


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.


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


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.)


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


Chargebacks

01

02


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.



18

08

07


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.


19

12


20/32


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.



20

31

34


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.



21

37

59


22/32


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


22

60


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


24/32

24


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


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


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


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


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


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


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


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


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

auto rental guide

Documents