Mastercard AN4569 Compliance Guide for Banks

In early 2021, Mastercard introduced a rule for its European card issuers known as AN 4569 - Revised Standards for the Display of Enhanced Merchant Data. This mandate, effective from October 2023, brings about crucial changes in the way card issuers present transaction information to cardholders. Here is how to comply and get the most out of this requirement.

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The mandate in a nutshell

As per Mastercard, the global chargeback market volume is estimated to reach $117 billion in 2023 and for every $1 chargeback, the cost would be around $3.60. A US market study revealed that 96% of consumers want more details that help them easily recognize purchases, and nearly 25% of all transaction disputes could be avoided by delivering more details. The mandate aims to enhance the transaction transparency, reduce disputes, and improve the overall customer experience by ensuring comprehensive and identifiable transaction information for cardholders.

Simply put, consumers are demanding more clarity around what they bought/who they bought it from, and the provider side aims to decrease the number and costs of chargebacks.

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Payment data enrichment, the core of compliance

In simple terms, data enrichment involves obtaining additional information by linking existing data to external sources without the customer input. The goal is to make the data more valuable and informative, typically by filling in missing values or by providing context that would otherwise be unavailable.

Structure of enrichment data to transactions follows natural logic. There is information related to the merchant and to the shop itself.

By supplementing customer data with data from external sources, banks can gain a better understanding of who their customers are, what they need, and how they behave. This data can improve customer service, personalize the banking experience, and make better credit risk decisions.

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Below you can see all the data points to enhance the transactions with:

3 reasons why go beyond the mandate

Enhanced User Experience

By surpassing the minimum requirements outlined by Mastercard, you can offer your cardholders a more detailed and comprehensive view of their transactions. Providing additional information such as GPS location, purchase category, and URL address not only meets customer expectations for transparency but also enhances their overall experience. This level of detail can lead to increased customer satisfaction and loyalty.  

Higher Reduction in Disputes and Fraud Prevention  

Enriching payment data beyond the mandated standards, such as including GPS location and Eco tags, provides a more robust authentication of transactions. This added layer of information not only helps in reducing transactional disputes but also acts as a deterrent to fraudulent activities. The more detailed and accurate the transaction information, the less likely it is for customers to dispute charges or friendly frauds.

Competitive Advantage  

Going beyond Mastercard requirements demonstrates your commitment to providing the best possible service to your customers. This can set you apart from competitors who may only meet the minimum standards.

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Appendix A: Details of scheme compliance requirements 

Sourced from AN4569 Revised Standards for Mastercard Rules (published 4 April 2023) 

Enhanced Merchant Data. Effective 14 October 2023, an Issuer in Albania, Andorra, Austria, Belgium, Bosnia, Bulgaria, Channel Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Isle of Man,  

Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom or Vatican City must provide to a Cardholder enhanced Merchant data, when available, to help the Cardholder recognize a Transaction when it is queried by the Cardholder. Such enhanced Merchant data includes, when available, without limitation, the Merchant’s public facing or ‘doing business as’ name, location, contact details and logo. The Issuer must provide the enhanced Merchant data via the Issuer’s banking application, mobile wallet, Internet banking interface, or other digital means that provides at least equivalent ease and accessibility for the Cardholder. 

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