MasterCard has announced plans to create one global zero liability promise for consumers in order to offer a multilayered approach to safety and security.
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The program, touted as an industry first, will allow consumer and small business cardholders receive added protection from unauthorised transactions.
Developed in consultation with issuers and regulators, the zero liability promise has been designed to enhance the minimum standard for consumer protection against unauthorised transactions, complying with and subject to applicable local laws.
Zero liability can protect consumers from unauthorised transactions if they exercise reasonable care in protecting their card from risk or loss. Moreover, on being aware of such loss, cardholders need to contact the bank that issued or provided the payment card.
The revised rule applies to transactions, such as PIN-based transactions at the point of sale, ATM withdrawals and online or mobile transactions on MasterCard, Maestro and Cirrus-branded transactions.
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By GlobalDataThe rule also applies to transactions made using a consumer credit, debit, small business or prepaid cards registered to a consumer, and co-badged cards provided MasterCard is the brand of choice at time of purchase.
The updated rule was first made available to MasterCard cardholders in the US in October 2014. Plans are on to extend the rule to all regions by early second quarter of 2016.
MasterCard Enterprise Security Solutions chief payment system integrity officer Nancy O’Malley said: "Over the past few years, consumers have grown increasingly concerned about the security of their data and account information, and liability for unauthorized transactions.
"With this new global program, we, together with our issuers, are providing our cardholders with additional peace of mind regardless of where they live or travel."
