Mastercard Merchant Registration
Mastercard makes some merchant categories register through their acquirer. Here is what the program is and how BRAM enforcement works.
What the program is
Mastercard's manual has a chapter on the Specialty Merchant Registration Program. It sets rules for certain types of merchants.
It is a Mastercard program.
Who it applies to
The program covers merchants and sponsored merchants in the named categories. Mastercard's Security Rules and Procedures has a chapter for the staff who register merchants and sponsored merchants.
Describe your business the way it really runs.
What registration means day to day
Mastercard says acquirers should watch the sales of merchants and sponsored merchants in the program. So your acquirer may watch your sales once you are registered.
How BRAM connects to registration
BRAM stands for Business Risk Assessment and Mitigation. It is a Mastercard program. Mastercard's manual says BRAM looks into merchants that someone reports to Mastercard. The report says the merchant may be breaking the law or hurting the brand.
BRAM enforces Mastercard Rules sections 3.7 and 5.12.7. Those sections deal with harm to the brand. They also cover sales that break the law or hurt the brand.
Cases can start two ways. Mastercard's manual says BRAM investigations may be started by internal investigations or by referrals from outside sources.
If Mastercard finds a violation, it opens a BRAM case. It then tells the acquirer. Your acquirer hears about it from Mastercard.
The stakes for acquirers
Mastercard's manual says an acquirer that breaks the BRAM Rules may be fined USD 200,000 for each merchant. That is per merchant, not per case.
A single merchant that breaks the rules can cost the acquirer a large sum.
What this means for you
Be upfront about your business model when you apply. Describe what you sell, how you sell it and where you sell it. If you sell by phone, read our page on billing authorization.
Never hide the real business, split your volume across accounts or miscode your MCC.
If your product raises legal questions, do not guess. Check with a lawyer and your processor before you apply.
To learn more, see why banks watch payment processors.