Major Third Party Processor No Longer Accepts MasterCard
CCAvenue, one of the larger third party processors, has lost its ability to process MasterCard credit card payments. At least temporarily. Below is the notification they have sent to their merchants:
Dear Merchant,
For over 5 years, CCAvenue has been striving hard to get you the best of payments facilities and technologies that are available. You may be aware that the payments industry is a rapidly evolving one and there are new developments every day. There have been ups and downs and we have handled many challenges together by supporting each other.
One significant development that has occurred a few days ago is that MasterCard International has revised some of its rules and has implemented a program called the MSP (Member Service Provider) Program across all of Asia, Europe and the Middle East. Due to this development, all third party payment processors like CCAvenue in these regions will have to make certain changes in the work processes and meet certain norms before they can continue to accept MasterCard online. As per MasterCards new rules, the acquiring banks are required to stop the MasterCard payment facility to third party payment service providers with immediate effect till they comply with the new requirements.
Under the new MSP Rules, every sub-merchant has to enter into a tripartite agreement between the sub-merchant, the acquiring bank and ourselves. The MasterCard payouts will be done directly by the acquiring bank to the sub-merchants bank account. The sub-merchants website name will be reflected in the card holders statement and not CCAvenue (as it is currently happening). Please note this process is only for MasterCard and CCAvenue will continue to offer all other payment options and there will be no changes in the payout process for these.
Since the implementation of the MSP Program is going to take time, we regret to say that we are compelled to stop offering the MasterCard payment option for a few weeks. Therefore, as of January 15th, 2023 the MasterCard payment option will not be available on our gateway.
We are deeply aware of the loss to your business due to this action and we can’t say enough about how sorry we are for this. Do remember, as we are your partners, it severely affects our business too. We regret to say that this is entirely out of our hands and beyond our control.
On the way forward, our acquiring banks have already initiated the registration process of CCAvenue as a MSP. We assure you that we are trying our best to get the MasterCard payment option live again as soon as possible. However, as per the feedback from our acquiring banks, the process will take at least a few weeks. We have always believed in transparency and I seek your co-operation and support in complying with the new MasterCard Rules and Bye-laws.
What does this mean? If you are a CCAvenue user you no longer can accept MasterCard payments. As MasterCard is the second most popular credit card this can have a serious impact on your business. Assuming they do intend to do what is necessary to become MasterCard compliant again, you should find an alternative form of processing until they can accept MasterCard once more.
Technorati Tags: MasterCard, CCAvenue, Third Party Processor, MSP
January 19th, 2023 at 5:36 pm
That is some huge news. I wonder if other 3rd party processors are going to have to take similar steps?
August 26th, 2023 at 11:17 am
MasterCard is now available through CCAvenue through three major Inidan Banks i.e. ICICI Bank, Axis Bank and CitiBank. I got mine activated about a year back in August 2023 . I guess this a very old news that has been posted here.