Cardholder-Activated Terminal (CAT)

Cardholder-activated terminals (CATs) are typically unattended terminals that accept various payment cards. These terminals are frequently installed at rail ticketing stations, petrol stations, toll roads, parking garages, and other merchant locations. There are four types of cardholder-activated terminals:

• Automated Dispensing Machines / Level 1.
• Self-Service Terminals / Level 2.
• Limited Amount Terminals / Level 3.
• In-flight Commerce (IFC) Terminals / Level 4.

Cardholder-activated terminal requirements specify the maximum allowed dollar amount of transactions as well as authorization, clearing, chargeback, and addendum record requirements and related transaction liability for each cardholder-activated terminal type.

As CATs are usually unattended, the traditional point-of-sale (POS) acceptance procedures do not apply, such as the merchant's examination of the card to detect irregularities in the logo, hologram, embossed account number, or the security features and the comparison of the cardholder signature to the signature on the sales receipt.

MasterCard identifies eCommerce transactions using a value of CT6 in Terminal Type (PDS 0023) within First Presentment / 1240, Chargeback / 1442, Second Presentment / 1240, and Arbitration Chargeback / 1442 messages. There are currently no registration requirements established for these types of transactions, however, MasterCard requires acquiring banks to identify eCommerce transactions using a value of CT6 in Terminal Type (PDS 0023). Additionally, member banks can use a CAT level indicator 7 (a value of CT7 in Terminal Type [PDS 0023]) to identify transponder transactions. Acquiring banks may optionally provide a value of CT7 in Terminal Type (PDS 0023) in First Presentment / 1240, First Chargeback / 1442, Second Presentment / 1240, and Arbitration Chargeback / 1442 messages.