A couple of weeks ago, we wrote about upcoming Visa and Mastercard changes and how they will affect merchants. One of the changes we outlined is related to Mastercard’s Transaction Integrity Class (TIC) program that was to take effect in about six weeks. Failing to comply with this change would significantly increase what merchants pay to process Mastercard transactions, but if you are a software company with payment acceptance capabilities, it would have implications for you too.
TIC is a method that Mastercard uses to evaluate a transaction’s fundamental safety and security and to assess the validity of the card and the cardholder. It has been in place for about four years and involves the issuer returning a two-character code in the authorization response for purchases and cash back transactions.
Mastercard’s plan was to begin requiring the exact TIC code from the transaction authorization to be captured and included in the settlement process in April of this year. Mastercard has since backed-off the April date as many issuers, gateways and POS systems were not prepared for compliance. However, they are recommending that clients continue to work with their vendors to make sure the TIC value is populated in the settlement transaction in order to ensure compliance.
Even though the pressure of a looming deadline is off, it’s still a good idea to follow Mastercard’s recommendation of continuing to work toward compliance. That said, we recommend ISVs:
At the very least, you’ll be demonstrating to your customers that you care about them and that you’re staying on top of payment issues that could affect them.
We’ll continue to post updates on new dates and requirements. If you’d like us to alert you when we have updated information, please submit your email address below, and we’ll add you to the list.