Option to disallow fallback transaction processing
MasterCard only allow less than 1% of monthly transactions as fallback transactions threshold, otherwise $2,500/month penalty for the first 9 months of non-compliance and $5,000 for the next 9 months, and $10,000 and $20,000 thereafter.
For Clover, since the merchant doesn't have a control over what cardholders do (in most cases), it's hard to manage the threshold of fallback transactions.
Therefore, the merchant should have an option to disallow fallback transaction process (swipe after failed chip attempts) to avoid penalties from MasterCard. Some other applications like of PAX' has an option to disable fallback transaction processing. ATM machines also have an option to disable it. Clover must provide the similar options to merchants to avoid MasterCard penalties of non-compliance.
KC Lee
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