April and October are key months for changes in rules and fee structures by the major card brands. There were several new requirements queued-up for the springtime edition of changes but COVID 19 prompted the postponement of many of them. MasterCard Transaction Integrity Class (TIC) for interchange rates is one of the new mandates that was delayed.
Although Mastercard did not announce a new deadline for compliance with its TIC mandate, October is looming. The safest approach for software providers with integrated payments is to proceed with steps toward compliance so that you and your customers are not caught off guard.
TIC is a two-digit code that appears in the authorization of Mastercard purchases. The new mandate will require that the TIC code from the authorization gets captured and included in the settlement process. Failure to comply causes the transaction to be downgraded and could result in a higher interchange rate for your customers. This will make them very unhappy.
Related Article: Important Update on Mastercard TIC Compliance for ISVs
If you have integrated payments in your software platform, there are two key activities you should be doing right now:
We’ll continue to post updates on this and any other card brand requirements coming down the pike. If you’d like us to alert you when we have updated information, please click the link below to provide your email address, and we’ll add you to the list.
If you would like additional information or if you have questions about compliance requirements for integrated payments, please feel free to reach out to me directly.