Mastercard Reimbursement

How to Update the Mastercard Alerts Product For Parent ICA Access:

In order to be eligible for reimbursement for a particular Parent ICA, it is sometimes necessary for issuers to update their profile for the MC Alerts product for Parent ICA access. The MC Alerts update access form is available on Mastercard Online within the Order Products link. Any issuer regarding this process can be resolved by emailing the Mastercard_Alerts_Administrator@mastercard.com.

ADC Operational Reimbursement and ADC Fraud Recovery:

ADC operational reimbursement enables an issuer to partially recover costs incurred in reissuing cards and for enhanced monitoring of compromised and/or potentially compromised accounts associated with an ADC event. ADC fraud recovery enables an issuer to recover partial incremental magnetic-stripe (POS 90) and/or
chip card terminal unable to process (POS 80) counterfeit fraud losses associated with an ADC event. Mastercard determines ADC operational reimbursement and
ADC fraud recovery. ADC operational reimbursement and ADC fraud recovery are available to an issuer that is licensed to access Mastercard Alerts at the time of the ADC Event.

Operational Reimbursement Calculation:

Mastercard will calculate ADC operational reimbursement using the following method:

1. Determine the total number of accounts per ICA number that were at risk by card type, utilizing an assumption of one card per account.
2. Subtract a fixed deductible (which will be updated and published yearly in the March issue of the Global Security Bulletin, to account for normal card expirations, card re-issuance cycles, accounts included in previous Mastercard Alerts and re-issuance of accounts using the same PAN but a different expiration date.
3. Multiply the number of accounts by an amount set by Mastercard from time to time.

Fraud Recovery

Mastercard will calculate the amount of incremental counterfeit fraud attributable to an ADC Event based on the fraud data reported to the System to Avoid Fraud Effectively (SAFE).

If a Member changes the fraud type reported to SAFE after Mastercard calculates the ADC fraud recovery amount, Mastercard will not recalculate the ADC fraud recovery amount.

ADC fraud recovery calculation uses an “at risk time frame.” The at-risk time frame may be known or not known.

The at-risk time frame is known when Mastercard is able to determine the period of time during which accounts were at risk due to in connection with an ADC Event. In such event, the at-risk time frame for a particular account number (i) is deemed to commence as if the date that Mastercard determines that account was at risk, and (ii) is deemed to end 30, 45, or 60 days after the date of publication of the earliest Mastercard Alert that discloses the account number (as more particularly described in the ADC User’s Guide).

If the at-risk time frame is not known, the at-risk time frame for a particular account number (i) is deemed to commence 12 months prior to the date of publication of the earliest Mastercard Alert that discloses that account number, and (ii) is deemed to end 30,45,or 60 days after the date of publication of the earliest Mastercard Alert that discloses the account number (as more particularly described in the ADC User’s Guide).

The ADC fraud recovery calculation further provides that an account number published in a Mastercard Alert in connection with a different ADC Event during the six (6) months prior to the publication of the Mastercard Alert published in connection with the subject ADC Event is removed from the list of account numbers eligible for ADC fraud recovery. In addition, a standard deductible (to be updated annually) will be applied to recognize chargeback recoveries on transactions using at-risk accounts and prior re-issuance of at-risk account numbers with different expiration dates.