Monday, December 14, 2009

Reporting Fraudulent Use of Cards

All MasterCard member banks must report accurately and completely the fraudulent use of MasterCard cards to the System to Avoid Fraud Effectively (SAFE) at least once a month and within 60 days from the date of the transaction, or 30 days from the date of cardholder notification. If there are no fraudulent transactions to report during the month, member banks must submit a Fraud Negative Report (FDN) Record when transmitting their transactions to SAFE or use the Report No Fraud feature of SAFE OnLine.

Reporting by the Issuer

MasterCard issuers must submit all fraudulent transactions on its MasterCard accounts to SAFE on a monthly basis. For the benefit of all members, MasterCard analyzes the data and produces statistics relating to the fraudulent use of MasterCard accounts and all chargebacks that originate from transactions using accounts with a fraud status.

An issuer must report fraudulent transactions even if it recovered losses through chargebacks, compliance cases, restitution, insurance, or any other means.

Reporting by the Acquirer

An acquirer receiving a transaction that cannot be identified by a MasterCard BIN or member ID is liable for that transaction. If it is determined that the transaction is a fraudulent or counterfeit MasterCard transaction, the acquirer must notify, in writing, the Security and Risk Management Department of such an occurrence. This notification must include all mandatory information as described in the Security Systems Specifications manual.

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