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MasterCard® - Revised Standards for Processing Authorizations and Preauthorizations

This global mandate from MasterCard® affects all authorizations performed on MasterCard®, Debit MasterCard®, Maestro®, and Cirrus® transactions.

MasterCard® has changed the definition of an authorization request from a single one-type-fits-all transaction to three different types of authorization, each with its own rules. These are known as "Pre", "Final", and "Undefined" authorizations.

As of October 2016, an authorization for an amount greater than zero for merchants in all regions except Europe and Middle East & Africa should be coded as a preauthorization, final authorization, or undefined authorization.

Merchants in the Middle East & Africa region must code authorizations as either preauthorization or final authorization from the same date. This mandate is an extension of MasterCard’s Europe region mandate. In the Europe region, merchants must continue to code authorizations as either preauthorization or final authorization.

MasterCard has defined strict timelines to clear or reverse transactions based on authorization type. They have also introduced new fees to enforce these changes, which are intended to be passed to you by your Acquirer. See below for more information on the fee types and related effective dates as indicated by MasterCard. This information has been provided to inform you of the upcoming system impact; contact your Acquirer for clarification on the fees and the effective dates.