Skip to main navigation Skip to main content

  1. Home
  2. Insight Series
  3. Regulatory Updates
  4. Card scheme requirements


Card scheme requirements

A number of card scheme changes could directly impact your business. To help you stay ahead, we've put together an overview of each development.

New Visa fees to impact Cardnet costs for merchants

Visa has introduced new scheme fees coming into effect on 1 October 2014, which will impact you. The new fees are aimed at (but not limited to) the following items:

  • Mail Order/Telephone Fee
  • New Card Not Present Chargeback Fee - for fraudulent chargeback reason codes where the merchant has not deployed any additional authentication checking (e.g. verified by Visa)
  • International Service Assessment Fee.

Lloyds Bank Cardnet are reviewing these fees and you will be notified how these fees will be introduced into our billing programme.

MasterCard Pre-Authorisation / Final Authorisation

MasterCard will soon expect authorisations to be categorised as either a pre-authorisation (this is when the final spend is unknown) or a final authorisation (when the final spend is known).

Pre-authorisations typically occur in the travel and entertainment sector, e.g. when checking into a hotel or hiring a rental car. However, they can also occur in the e-commerce environment when the merchant is unable to fulfil the full order request, i.e. goods out of stock.

Final authorisations occur when the final spend is known and should meet the following technical characteristics:

  • Authorisation must be requested for the final transaction amount
  • The transaction may no longer be cancelled after the authorisation is approved in full (excluding non-completion for reasons of technical failure)
  • The transaction must be presented within 4 business days of the authorisation date
  • The currency of the transaction must be the same in authorisation and settlement.

Please contact your 3rd party payment service provider to ensure your system is set up to flag these transactions correctly.

Transaction identifier (trace ID, transaction)

The card schemes are passing a unique transaction identifier at authorisation that needs to be populated onto the corresponding clearing item. This is to enable transactions to be traced through their complete life cycle. If you use our multi-currency platform, this will need to be populated by your 3rd party payment service provider. If you use our domestic (GBP sterling) platform there are no changes required by either yourself or your payment service provider.

Visa Merchant Category Code (MCC) 6012 Mandate

This is a reminder of the Visa mandate for all financial institution merchants to capture additional data at authorisation. For clients of Lloyds Bank Cardnet, we will have written to you if this impacted your business. If you are impacted by this change, please speak to your 3rd party payment service provider to ensure all the necessary data is captured. Please remember that depending on your type of integration you may need to make changes to any of your internal/ back office systems to ensure these additional data requirements are captured at point of interaction.

Visa – Requirements to capture the expiry date on transactions for recurring merchants

From October 2014 Visa are changing their rules to permit issuers to decline authorisations from recurring transactions due to missing or invalid expiry dates. To avoid any unnecessary declines, please ensure you always capture the accurate expiry date for your payments.

Visa and MasterCard - Utilising zero value account verification checks

This is a reminder that, if you wish to carry out account verification checks to check the validity of a Visa/MasterCard debit or credit card, you must use the zero value account verification check service and not carry out an authorisation for a nominal amount (e.g. £1.00, 1p etc). Please speak to your 3rd party payment service provider to confirm that they can support this functionality and ensure you are compliant.

Receive our Thought Leadership and Market Updates

Get our top insights to help your business by signing up to our Thought Leadership and Market Updates. From the latest retail trends to payment regulation, our experts will keep you up to speed. Please enter your email below if you would like to receive our Thought Leadership and Market Updates.

Your information will be held by Lloyds Bank plc trading as Cardnet, part of the Lloyds Banking Group. More information on the Group can be found at

Please scroll down in order to confirm acceptance of our Terms and Conditions