Hello,
According to the Merchant Network Updates in Fall 2018, technical fallback standards are revised for Mastercard in certain regions.
These requirements seem obscure for U.S. region as "Issuers may decline technical fallback transactions". Taking this into consideration, would it be recommended to disable/decline fallback transactions (from chip to Magstripe) altogether (including the U.S.)?
Also, I would like to know if other PayFacs, payment processors, and POS terminal vendors have incorporated this mandate by declining all fallback transactions within U.S.
Thank you.
I would recommend continuing to process the same way in that fallback transactions can still be supported on our platform. If the card issuer chooses to decline the transaction, it would take place during the authorization, so there's no harm in attempting the fallback transaction. If the issuer declines the card, then another form of payment can be requested.