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Introduction
Electively managing travel and entertainment (T&E) spending, small -dollar
purchasing, and other business expenditures is increasingly important to the
overall ftnancial health of any company,
The suite of MasterCard Corporate Payment Solutions" helps companies control and streamline
all their expenses, while providing them with flexibility and security for all their business needs.
Experience indicates that employee" misuse of company credit card privileges is rare. However,
to protect against these losses, if they occur, MasterCard International Incorporated established
the MasterCoverage® Liability Protection Program.
The MasterCoverage Liability Protection Program is purchased by MasterCard International and is
provided complimentary to financial institutions and companies covered by the program.
MasterCoverage provides protection for cards issued in the United States BINS (Bank Identification
Numbers) For the full spectrum of liability agreements between a company and its card -issuing financial
institution: Individual Liability, Joint & Several, or Corporate Liability,`** For information specifically
pertaining to Corporate Liability Insurance outside the United States, contact the Customer Relationship
Manager assigned to your financial institution -`i
This brochure describes the coverage amounts, what is and is not covered under the program, how
financial institutions must manage this program in conjunction with their client companies, and the
minimum collection standards for recovering outstanding eligible charges. It also contains the steps
required for companies to file a claim and a glossary of terms tall glossary terms appear in bold),
Lastly, there are three claim forms included.
After reading this brochure, if you have any questions about the MasterCoverage Liability Protection
Program, please contact your Customer Relationship Manager assigned to your financial institution.
The MasterCoverage Liability Protection Program -it's another important benefit that makes
MasterCard Corporate Payment Solutions a smart choice for all your corporate payment needs.
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Description of Coverage
The MasterCoverage Liability Protection Program protects financial institutions and companies
from employee misuse of charge privileges for any of the MasterCard Corporate Payment Solutions
cards including:
• MasterCard BusinessCard Card
• MasterCard Executive BusinessCard Card
• Debit MasterCard BusinessCard Card
• MasterCard Small Business Multi Card
• MasterCard Corporate Card
• MasterCard Corporate Executive Card
• MasterCard Corporate Purchasing Card
• MasterCard Corporate Fleet Card
(driver -assigned cards only)
• MasterCard Corporate Mufti Card
• MasterCard Public Sector Travel Card
• MasterCard Public Sector Purchasing Card
• MasterCard Public Sector Fleet Card
• MasterCard Public Sector Iviuiti Card
• MasterCard Government Travel Card
• MasterCard Government Purchasing Card
• MasterCard Government Fleet Card
• MasterCard Government Integrated Card
The MasterCoverage Liability Protection Program provides protection in the following instances:
• Up to a maximum limit of USD 25,000 per cardholder for companies that have two to four cards, or
• Up to a maximum limit of USD 100,000 per cardholder for companies that have five or more cards
provided that all program conditions, as outlined in this brochure, are met.***
• Cash advances of USD 300 per day, up to a maximum of USD 1,000 per claim.
The MasterCoverage Liability Protection Program provides protection based on the type of liability
agreement that exists between a financial institution and their client company,
• Individual Liability defined as "The MasterCard Corporate Payment Solutions cardholder will be
solely liable for all charges on the issued card."
• Joint & Several Liability defined as "The company and the individual MasterCard Corporate
Payment Solutions cardholder are both liable for all the charges on the MasterCard Corporate
Payment Solutions card account."
• Corporate Liability defined as "The company is solely liable for all charges on the Mastercard
Corporate Payment Solutions card account."
The MasterCoverage program will reimburse financial institutions up to the limits defined above for
charges that fall within the protection period outlined in Table A and meet the following criteria
(herein referred to as eligible charges):
A. Individual Liability Accounts:
• Charges on cards that were reimbursed to the employee, which were not remitted by the employee to
the financial institution
*Charges on cards that were reimbursed tot e employee that did not directly or indirectly benefit the
company
• Charges on cards that were reimbursed directly to the financial institution by the company on behalf of
the cardholder but were later discovered not to have directly or indirectly benefited the company
B. Joint & Several Liability Accounts:
• Charges on cards that were either reimbursed to the employee, which were not remitted by the
employee to the financial institution
• Charges on cards that did not directly or indirectly benefit the comparty
+ Charges on cards that were reimbursed directly to the financial institution by the company on behalf
of the cardholder but were later discovered not to have directly or indirectly benefited the company
C. Corporate Liability Accounts:
• Charges on cards that did not directly or indirectly benefit the company
Employee termination is a requirement of the MasterCoverage claim process. The card cancellation date
and employee termination date establish the protection period for eligible charges set forth in Table A.
The card cancellation date is an important date that establishes the protection period for eligible
charges. Table A illustrates how a company must request card cancellation immediately upon
employee termination,
Table A
We: Cnrnpwws+wWh om card are rix Canted oder rhe pro9,am Vehkte.aW9ned cards are not ehyihre lot raniage under the progtam.
If card cancellation date occurs
helm employee termination
date then Protection Period k:
If card cancellation date occurs
0-2 business days of tr
employee termination date,
then Protection Period is:
If card cancellation date occurs
3+ business days af&
employee termination date,
then Protection Period is:
Protection Period for eligible
75 calendar days prior to
75 calendar days prior to
75 calendar days prior to card
charges tpj= card
employee termination date
employee termination date
cancellation date; any charges
cancellation date or employee
between employee termination
termination date is:
date and card cancellation date
are not eligible for coverage
Protection Period for
14 calendar days after
14 calendar days after
No coverage
eligible charges ak card
employee termination date
employee termination date
cancellation dale or employee
termination date is:
We: Cnrnpwws+wWh om card are rix Canted oder rhe pro9,am Vehkte.aW9ned cards are not ehyihre lot raniage under the progtam.
Exclusions
The following are not considered eligible charges under the MasterCoverage program:
• Chargestrans, any im�aft:rtT� mmploy-iaeterminatifln-date-i thesard_is_not
cancelled within two business days of the employee termination date
• Interest or fees (including, but not limited to, ATM service charges) imposed by the financial
institution
Cash advances on, or anytime after, the employee termination date if the card is not cancelled
within two business days of employee termination date
• Personal charges on Individual Liability Accounts for which the company did not reimburse the
employee
• Charges made by someone who is not an employee of the company
• Charges resulting from bankrupttyCnsolvency of the company
• Charges made on cards or accounts issued to multiple employees rather than an individual,
which cannot be traced back to the employee who incurred the charge
• Charges made on vehicle assigned cards
• Charges resulting from a lost or stolen card
• Any amount unpaid on an Individual Liability Account as a result of an employee's bad check
if at least one bad check has been written by the employee within the prior 12 months
(a "bad check" is defined as a check written against an account with insufficient funds)
• Charges for goods or services that would regularly be used by the company and that would
benefit the company, or were purchased by the employee for someone else according to the
company's instructions, or were agreed to by the company in advance
• Charges made by partners, owners, volunteers, or elected directors
• Charges made by shareholders owning more than S% of a company's outstanding shares
• Charges in excess of USD 25,000 per card if the company has two to four MasterCard Corporate
Payment Solutions cards
• Charges in excess of USD 100,000 per card if the company has two to four or more cards
► Cash advances exceeding the limit of USD 300 per day or a maximum limit of USD 1,000 per claim
• Charges made by a company that has been issued only one card
• Charges resulting from the use of convenience checks
• Any amount unpaid due to an employee death where there is no indication of misuse/abuse
Homer Financial Institutions
.Manage the MasterCoverage Program
The financial institution is responsible for managing the MasterCoverage program. This means that the
financial institution should designate a program manager, probably in the MasterCard Corporate
Payment Solutions account management area, to perform or manage the following duties:
e
• — as a cer raI resource for Informaion about the mastercoverage program for t e Tinanaa
institution's client companies who use MasterCard Corporate Payment Solutions, This means
responding to questions from companies and ensuring that they are aware of how the
MasterCoverage program works, the criteria for eligible charges, and their obligations as outlined
in this brochure.
• Distribute the MasterCoverage brochure to the key contact who is responsible for managing the
card program at each client company.
• It is critical that the financial institution provides the MasterCoverage brochure to describe what
needsto take place when the company needs to file a claim (Joint & Several or Corporate
Liability), or provide the financial institution with information about the former employee and
their eligible charges (individual Liability). Companies need to be knowledgeable about how the
MasterCoverage program works,
• Provide the financial institution's client companies who use MasterCard Corporate Payment
Solutions cards with blank claim.forms to have on hand at their company. There are three blank
claim forms at the back of this brochure, and these forms can be copied as needed. (For more
forms, contact your Customer Relationship Manager assigned to your institution.)
• MasterCard recommends the financial institution includes the MasterCoverage brochure and a
supply o{ blank claim farms to all new client companies with their new account set-up material_
• Maintain organized files for the financial institution to track when the card cancellation confirmation
letter, claim form, and all supporting documentation are received from a company as well as a record
of all collection efforts made by the financial institution,
• Make diligent efforts for the financial institution to collect eligible charges from the former
employee for 60 days, beginning upon receipt of the claim form from the company, according to
the collection standards set forth by the MasterCoverage program administrator in Appendix C,
as permitted by local, state, and federal regulations. At a minimum, the financial institution must
verbally contact the former employee once and send three written notices requesting payment for
eligible charges within the 60 -day period.
• File a MasterCoverage claim with the MasterCoverage program administrator within 180 days of
the card cancellation date. With this action, the financial institution assigns any uncollected charges
to the MasterCoverage program administrator. For inquiries about claims, please contact:
MasterCoverage Program Administrator
P.O. Box 94852
Cleveland, OH 44101-9813
Tel: 1-440-914-2214
It is critical that the designated MasterCoverage program manager understands all aspects of the program.
If there are any questions, please contact your Customer Relationship Manager for assistance.
How to File a Claim
By following the steps below, a Company with two or more MasterCard Corporate Payment
Solutions cards can be protected from eligible charges made by a former employee.
Company
Step t:
Step 2:
Step 4:
Step 5:
Company notifies
Company requests card
Comparry notifies
Company calculates
Financial Institution of
cancellation and sends
former employee of
eligible charges.
employee termination
written confirmation to
card cancellation
date immediately.
Financial Institution
immediately after card
immediately after
cancellation date,
employee termination
but no later than
date, but no later than
30 days after card
two business days
cancellation date,
MasterCard strongly urges companies
to perform Steps 1 and 2 at this time,
Financial Institution
step 3:
Financial Institution
cancels card
immediately after
Company notification.
Program
Administrator
Company
Step 6:
Company submits
claim form to Financial
Institution immediately
after card cancellation
date, but no later
than 90 days after
card cancellation dale.
Financial Institution
Step 7:
Step a:
Step 9:
Financial Institution
Financial institution
Financial Institution
verifies eligible
begins collection
files a MasterCoverage
charges.
efforts immediately
claim immediately
after receipt of
after collection effort
daim form from the
period has ended,
company, for a
but no later than
minimum of 60 days
1130 days after card
cancellation date.
Program
Step 10:
Step 11:
Administrator
Program Administrator
Program Administrator
reimburses _Financial
may perform
Institution. Usually 30
subrogation efforts.
days after receipt of a
completed claim.
Step 1: Company Notifies Financial Institution
of Employee Termination Date
Timetable: Notification must occur immediately.
The company must notify the financial institution immediately of the employee termination date,
Notification can be performed by phone, fax, e-mail or via Web site online tool. Phone notification
must be followed by written confirmation and received by the financial institution within 30 days.
Step 2: Company Requests Card Cancellation
Timetable: Card must be cancelled immediately (must be cancelled within two
business days of the employee termination date to receive maximum coverage).
T he company must request that the card be cancelled within two business days of the employee
termination date or in accordance with the issuing financial institution's policy, whichever is less. The
company must also provide the following cardholder account information to the financial institution:
• Employee name
• Card account number
• Employee termination date
• Last -known home address
• Last -known home phone number
• Last -known business address
• Whether the card was retrieved or not
The company's request to cancel the card can be performed by phone, fax, e-mail, or via Web site
online tool. Phone notification must be followed by written confirmation and received by the
financial institution within 30 days of the card cancellation date. (See sample letter in Appendix A.)
MasterCard strongly urges companies to perform Steps I and 2 at the same time,
immediately after an employee leaves the company (either voluntarily or
involuntarily, or notifies the company that s/he will be terminating employment.
Any charges transacted between the employee termination date and the card
cancellation date will not be covered by the MasterCoverage program unless the
card is cancelled within two business days of the employee termination date.
Step 3: Financial Institution Cancels the Card
Timetable, Financial Institution must cancel card immediately after notification
from Company in Step 2.
when the company requests card cancellation, the financial institution must immediately cancel the
card, The date the card is cancelled is the card cancellation date.
The card cancellation date and the employee termination date establish the protection period for
eligible charges.
Step 4: Company or Financial Institution Notifies
Former Employee of Card Cancellation
Timetable. -Must be done immediately after card cancellation date, not to exceed
.30 days from card cancellation date.
The company or the financial institution must send a card cancellation notice within 30 days of the
card cancellation date to the former employee with the following instructions;
• Immediately discontinue use of the MasterCard Corporate Payment Solutions card
• Return the card to the company or the financial institution
• Pay any outstanding balance
This step must be completed for any cardholder that leaves the company, whether voluntarily or
not, A sample cancellation notice is provided in Appendix B.
Step 5: Company Calculates Eligible Charges
Using the criteria outlined in the "Description of Coverage" section, the company must calculate
which of the former employee's unauthorized charges qualify for protection and may be eligible for
payment under the MasterCoverage program.
Individual Liability Accounts:
• For claims on reimbursed charges that were not remitted by the employee to the financial institution,
review billing statements, copies of expense reports, and reimbursement checks, and refer to Table A
in the "Description of Coverage" section to determine charges that may be eligible for payment under
the MasterCoverage program.
• For claims on reimbursed charges that did not directly or indirectly benefit the company, company
must provide supporting documentation such as billing statements, copies of expense reports,
reimbursement checks, detailed job description, travel schedule, copies of previous expense reports,
and shipping invoices related to the charges in question. Refer to Table A in the "Description of
Coverage" section to determine charges that may be eligible for payment under the
MasterCoverage program,
• The company will be asked to provide a copy of eitherthe employer/employee agreement orthe comparr/s
travel and entertainment (T&E) policy to support unauthorized charges made by the employee.
Joint & Several Liability Accounts:
• For claims on reimbursed charges that were not remitted by the employee to the financial
institution, review billing statements, copies of expense reports and reimbursement checks, and
refer to Table A in the "Description of Coverage" section to determine charges that may be eligible
for payment under the MasterCoverage program.
• For claims that did not directly or indirectly benefit the company, the company must perform an
analysis to determine the amount of charges that did not benefit the company, and refer to Table A.
in the "Description of Coverage" section, to determine charges that may be eligible for payment
under the MasterCoverage program. This analysis may include examining any or all of the following
supporting documentation: detailed job description, travel schedule, copies of previous expense
reports, and shipping invoices related to the charges in question.
• The company will be asked to provide a copy of either the employer/employee agreement or the
company's travel and entertainment (T&E) policy to support unauthorized charges made by the
employee.
Corporate Liability Accounts:
• The company must perform an analysis to determine the amount of charges that did not benefit the
company, and refer to Table A, in the "Description of Coverage" section, to determine charges that
may be eligible for payment under the MasterCoverage program. This analysis may include examining
any or all of the following supporting documentation: detailed job description, travel schedule, copies
of previous expense reports, and shipping invoices related to the charges in question.
• The company will be asked to provide a copy of either the employer/employee agreement or the
company's travel and entertainment (T&E) policy to support unauthorized charges made by the
employee.
Step 5: Company Submits Claim Form to Financial Institution
Timetable; Must be done immediately after card cancellation date, not to exceed
90 days from card cancellation date.
The company must complete Sections 1-4 of the claim form and submit the claim form to the
financial institution within 90 days of the card cancellation date. Please note that the claim form
must be accompanied by the following supporting documentation depending upon the liability
agreement is outlined in the MasterCoverage Claim Form:
• Copy of card cancellation confirmation letter or printout of card cancellation screen
• Copy of employee notification letter to cardholder, if not completed by the financial institution
• Copies or screen printouts of cardholder billing statements with eligible charges highlighted
• Copies of any written correspondence to the cardholder requesting payment of the cardholder's
account balance
• Copies of expense reports or substitute equivalent documentation
(Substitute documentation may include, but is not limited to, shipping invoices, which include
shipment to a location other than employee's work location, or explanation of how the purchase
is unrelated to employee's job function.)
• Evidence of reimbursement documentation, if applicable
• Copy of analysis and all supporting documentation used to determine the amount of charges,
which did not benefit the company
• Copy of company employerlemployee agreement or travel and entertainment (T&E) policy to
substantiate unauthorized charges
if the company does not return the claim form to the financial institution within 90 days of the card
cancellation date, the claim will not be eligible for coverage,
Step 7: Financial Institution Reviews Documentation
Submitted by Company
Upon receipt of the claim form and supporting documentation, the financial institution must review
all documentation submitted by the company to verify charges the company has submitted for
payment. The financial institution must thoroughly review ail documentation submitted by the
company to insure that only eligible charges are submitted to the program administrator.
10
Step 8: Financial Institution Begins Collection Efforts
Timetable. Must be done immediately after receipt and review of claim form in
Step 7, for a minimum of 60 days.
The financial institution must begin 60 days of collection efforts as allowed by the card account
agreement and, as permitted by local, state, and federal regulations, upon receipt of the claim
form from the company. Appendix C contains the "MasterCard Minimum Collection Standards"
set forth by the MasterCoverage program administrator for this step. At a minimum, the financial
institution must verbally contact the former employee once, and send three written notices
requesting payment for unpaid charges, within the 60 -day period,
IMPORTANT: If financial institution cannot conduct collection efforts due to restrictions listed in
card account agreement, the 60 days of collection efforts as described above must be conducted by
the company.
Step 9: Financial Institution Files a MasterCoverage Claim
Timetable.- Must be done immediately after completing the collection efforts in
Step 8, not to exceed 180 days after card cancellation date.
Following 60 days of collection efforts, the financial institution must complete Section 5 of the
claim form and submit the completed form (including all required supporting documents) to the
MasterCoverage program administrator.
The financial institution must rile the claim within 780 days of the card cancellation date to be
eligible for reimbursement. This provides for 90 days of collection efforts by the company followed
by 60 days of collection efforts by the financial institution.
The following supporting documents must accompany the claim form submission:
• Copy of card cancellation confirmation letter or printout of card cancellation screen
• Copy of employee notification letter to cardholder
• Copies or screen printouts of cardholder billing statements with charges that may be eligible for
coverage highlighted
• Copies of any written correspondence to the cardholder requesting payment of the cardholder's
account balance
iE
• Copies of expense reports or substitute equivalent documentation
(Substitute documentation may include, but is not limited to, shipping invoices, which include
shipment to a location other than employee`s work location, or explanation of how the purchase
is unrelated to emp oyeeslo unction.
• Evidence of reimbursement documentation, if applicable
• Copy of analysis and all supporting documentation used to determine the amount of charges that
did not benefit the company
• Copy of company employer/employee agreement or travel and entertainment (T&E) policy to
substantiate unauthorized charges
• Documentation of actions taken by the financial institution to collect the unpaid charges from
the cardholder, including a log of phone contacts to cardholder and copies of any collection letters
or screen printouts showing attempts to collect unpaid charges
• The name, addresses, and phones number of a contact at the financial institution who is responsible
for collection efforts on the account
• Any other documentation requested to substantiate the claim. The financial institution must be
able to identify and document a cardholder on Corporate Liability Accounts
The financial institution must mail the completed claim to:
MasterCoverage Program Administrator
P.O. Box 94852
Cleveland, OH 44101-9813
Tel: 1-440-914-2214
Note: The MasterCoverage program administrator will close a claim 190 days from the day the last
documentation was received.
12
Step 10: Program Administrator Reimburses Financial Institution
for Eligible Charges
The MasterCoverage program administrator will reimburse the financial institution for eligible
charges up to the allowable maximum amount per cardholder within 30 days of submission of
a completed claim form and all the required supporting documentation. Reimbursement will be
made only for those charges that have been substantiated by the company. Should the program
administrator be unable to validate certain charges submitted for reimbursement, payment will be
made only for those charges substantiated by the company.
By accepting payment under the MasterCoverage program, the financial institution agrees to waive
the company's liability for all eligible charges paid under the claim. If the company has already
paid the former employee's account balance, the financial institution must credit or reimburse the
company for amounts paid under the MasterCoverage program.
For inquiries about claims, the financial institution may contact;
MasterCoverage Program Administrator
P.O. Box 94852
Cleveland, OH 44141-9813
Tel: 1-440-914.2214
Step 11: Program Administrator May Perform Subrogation Efforts
The claim form includes a section that assigns the right to collect any unpaid charges to the
MasterCoverage program administrator. Assignment of the financial institution's right to collect to
the MasterCoverage program administrator is a claim requirement. The MasterCoverage program
administrator may perform subrogation efforts to recover any eligible charges.
Should the financial institution or company recover any amounts from the former employee or any
other source that were paid as eligible charges under the MasterCoverage program, the financial
institution or company must remit any recovered amounts to the program administrator.
13
Glossary of Terms
Card cancellation date means the date the issuing financial institution cancels a cardholder's
MasterCard Corporate Payment Solutions card.
Charges means all transactions, including cash advances, charged to the company's account with
the financial institution,
Company means a corporation, partnership, sole proprietorship, government agency, non-profit
institution, or any other entity, which has signed an agreement with a financial institution pursuant
to which the financial institution issues a MasterCard Corporate Payment Solutions card account for
use by the company's employees,
Corporate liability means the company is solely liable for all charges on the MasterCard Corporate
Payment Solutions card account.
Employee means a person working for the company who is compensated by salary or wages and
is solely under the direction and control of the company. Independent Contractors shall fall within
the definition of employee.
Eligible charges are charges that meet the criteria for payment under the MasterCoverage program
as defined in the "Description of Coverage" section beginning on page Z, not including those charges
listed under Exclusions on page 4.
Employee termination date means the earlier of the date the empioyee leaves the company or
the date the employee gives or receives oral or written notification of termination of employment_
Financial institution means an entity that is licensed by MasterCard International Incorporated to
issue MasterCard Corporate Payment Solutions accounts and cards to a company.
Individual fiability means the cardholder will be solely liable for all charges on the issued card.
Joint & several liability means the company and the individual cardholder are both liable for all
the charges on the card account.
Program manager is the individual at the financial institution responsible for managing the
MasterCoverage program. This individual is the central resource for the information about the
program and the key contact for client companies' questions,
Program administrator is the entity responsible for processing the MasterCoverage claim.
14
Appendix A
Confirmation of Card Cancellation
To comply with MasterCoverage obligations, the company must follow up a request to cancel by
phone or fax with written confirmation to its card -issuing financial institution within 30 days of card
cancellation date. This sample letter may be used by companies to satisfy this requirement.
o be use ) a compare, , to send to i� issuing inancia institution
Your Name
Company Name
Address
City, State, zip
Date (must he raitbin 30 days of card cancOatlon date)
Name of Financial Institution Contact
Name of Financial Institution
Address
City, State, zip
Dear Name of Contact:
This letter serves to confirm that our company requested by phone or fax the immediate mncellation
of the MasterCard (Corporue)' Card number given below on (date).
Employee Name:
MasterCard (Corporate)' Card Account Number.
Employee Termination Date:
Employee Last -Known Home Address:
Employee Last -Known Horne Phone Number:
Employee Last -Known Business Address:
This individual's employment with us ended an 20
We have contacted the former employee in writing and advised him or her to remit
payment of outstanding charges back to the appropriate parties.
We have/have not retrieved the former employee's MasterCard (Corporate)' Card.
We are in the process of verifying eligible charges and pending non -recovery of these
charges. We plan to submit a MasterCoverage claim within 90 days,
Sincerely,
(authorized Signalure)
'Replace -Corpraate'with the Type of card the emprvM had: 6u rresCatd, raecutiw 8u*tessCad, Debit Busirc-sCad Cad. Small Min Malti Cad, Cwpmate Cad, Corpnme
Exmirn Card Corpouta Pudtaslnq Card, Corporate Fleet Card, CoWate Will Card, Public Seam Have! Card, Pubk Senor Ptrrhagng Card, Public Seam Item Card, Public Sema
Maki Card, GosermavR Gavel Card, GO awrn u Pach"ng Card, Gwxrxnna FlEn Card, Gwunmmt Integrated Card.
15
Appendix B
Sample Employee Card Cancellation Notice
Under the MasterCoverage program, the company or financial institution must cancel the former
employee's MasterCard Corporate Payment Solutions card and notify the former employee of the card
cancellation in writing within 30 days of card cancellation date. These sample letters may be used by the
company-or-financ-ial-institution-to-notify-an-employee-that his/her -card -has -been -cancelled -and -to -satisfy
this insurance claim requirement. This information can be sent by mail or fax. The company or financial
institution must retain a copy, since the letter needs to be attached to the claim form to file a valid claim.
Note: When it becomes necessary to discontinue an employee's card privileges, the company must
call the card issuer immediately to cancel the card. This is also an insurance claim requirement,
To be used by a company to send to a terminated employee, for Individual
.Liability Accounts
Your Name
Company Name
Address
City, State, Zip
Date
Employee Name
Home Address
City, State, Zip
Dear Former Employee Name:
Please be advised that your MasterCard (Corporate)* Card (card number ) has
been cancelled and that your rights to use the card ended when you ceased to be an employee of
(insen company name), Immediately discontinue all use of the card and return it to us if you have not
already done so.
In addition, you mast immediately pay to the (insert financial institution) :any outstanding balance that
you owe on the card. If you do not pay (insert appropriate financial institution representative) at
(insert financial institution) any outstanding dollars that you owe on the card, collection efforts by
a third parry may occur to recover the balance you owe.
Thank you For your cooperation in this matter.
Sinc ereJy,
(Authorized Signature)
Roace'Capuratr' with the- type of wtd rhe employee had: BreinessCad, E=eadive BusinessCatd, Oehit BusmessCard Cud Small Buslrm MU6 Card, Cwporate Card, Corporate
Esecothe Card, Cwpurare Purchasing Cad, Corporate Fleet Cad, Corporate Muto Card. Pu* Sector Travel Card, Pubic Sector Pachating Card, PJoik Sector flees Card, Whir Sew
Whi Card, Cnuerrment7-6. Card, Gwammu Purchasing Card, romornent Fkv Card, Gmftt rwj IniegratM Card.
16
To be used by a company or financial institution to send to a terminated
employee for Joint & Several Liability and Corporate Liability Accounts
Your Name
Company Name
Address;
City, State, Zip
Dale
Employee Name
Home Address
City, State, Zip
Dear Former Employee Name:
Please be advised that your MasterCard (Corporate)* Card (card munber ) has
been cancelled and that your rights to use the card ended when you ceased to he an employee of
(insert company name), immediately discontinue all use of the card and return it to us if you have not
already done so.
If you, as the employee, made any charges on your account, that did not benefit the company, you
are responsible to contact (insert appropriate company representative) at (insert name of company)
to arrange payment to the company for those charges.
Also, if you were- reimbursed for charges by the company, but did not remit those funds to
(insert Financial institution), you must remit those funds immediately.
Thank you for your cooperation in this matter.
Sincerely,
(Authorized Signature)
'Repiece 'CofWale- with late trpt of �d the emploaee had: 8usw*ss<ard, Executive 8u0nsuCard, Oedi MrsewCard Card. Small Busms M ili Card, Crxporate Card, Corporate
Execu*m Card, Caporae Pmdraaing Card, Corporate fit or Card, Corporate Muni Card Pukk Senor Travel Card, Pubk Senor Ptaclwng Card, PtUk Sector Fket Card, Public seccar
Multi Ud Cwv amen Levet Card Wnrrimm Purthadng Card, Govtnnnmi Fleet Card, Gnvernmern Imegated Card.
17
Appendix C
MasterCard Minimum Collection Standards
The Financial Institution must make a diligent attempt to collect eligible charges from the former
employee for 60 days after receiving the claim Form from the company. Outlined below are
collection standards set forth by the MasterCoverage program administrator.
Within 7 days of the receipt of the claim form from the company
Telephone Contact with Cardholder
The financial institution should contact the cardholder during reasonable business hours, at the
home phone number indicated on the claim form. The phone call should be brief, to the point,
and the conversation should be lirnited to the fact that the charges were unauthorized and the
cardholder is personally responsible for remittance of USD xx.xx amount of charges. ("Unauthorized
Charges" are based on card liability type and are outlined on page Z in the "Description of
Coverage" section.) The objective is to make phone contact with the cardholder once within two
weeks immediately following the receipt of the claim form from the company. The date/time of
the call must be documented by the financial institution. At a minimum, there must be three
documented attempts to reach the cardholder over the phone to complete the requirement of
at least one telephone contact with the customer.
Within 1.4 days of the receipt of the claim form from the company
First Notice (Written)
The first written notice serves as a follow-up to the above "telephone contact" or as an initial
contact if the cardholder could not be reached by phone. The notice consists of a standard form
that reiterates (1) that charges were "unauthorized"; (Z) the exact amount of such charges; and
(3) that the cardholder is personally responsible for remittance.
Copies of all letters to the former employee must be retained on file.
is
A) To be used by the financial institution to send to a terminated employee for
Individual Liability A ccounts,
B) To be used by the financial institution to send to a terminated employee or
joint & Several and Corporate Liability Accounts.
A)
1-1-05
Dejtr Employee Name:
Our rec rids indicate transactions made on your
MasterCard (Corporate)- Cad were either (i)
charges chat were reimbursed to YOU that were
nix renhited to the financial institution, or (ii)
charges that were reimhursed to you which did
not directly or indirectly benefit the company.
Enclosed, is an itemized list of the unauthorized
transactions for your review.
Please remit payment irnmediawly for all
unauthorized charges to (insets appropriate
firumcial institution reprsentative) of (insert
name of financial institution) at (insect address).
Ir you have any questions regarding this mutter,
please feel free to all (insert appropriate
rinanciul institution representative and phone
number) at (insert name of financial institution).
thank you for your cooperation in this mutter,
Sincerely,
(Authorized Signmure)
'replace -Corporate- with the tree of card the emotirme had: Busirtns(xd,
Ezeculiue BtnirestCaid, Debit Bu inessCard Card. Small Business Mrati Card.
Cserpxalt Card. Caporate Eucuim Cad, Corporate hatch" Cxd,
Corporate Fkvt Carl Corpor" Muhi Card, Pubic Secloc Trayel Card Public
Sena ftch satg Card, Public Seas Net Cx(L Pubic Sector Wit Cad,
Gawrrrnent Travel Cad, Gowrmenl PurtMning Card, Gwtmnstm Flus
Card, Goverment hkgtxed Card.
19
B)
1-1-05
Dear Employee Name:
Our records indirtte tremsactions made on your
MasterCard (Corporate)' Cart) were either (i)
clrnrges that the not clirectly or indirmly benefit
the ABC Company or (ii) charges that were
reimbursed to you that were not remitted to
the financed institution.
Enclosed, is an itemized list of the unauthorized
truuactions for your review.
Please remit payment immecliateiy for all
unauthorized charges to (insert appropriate
financial institution representative) or (insert
name of financial institution) at (imsen address).
If you have any questions regarding this matter,
please feel free w call (insert. appropriate
financial institution representative and phone
number) at (insert name of Financial institution).
1 -hank you For your cooperation in this matter.
Sincemly,
(Authorized Signature)
' RgAxe'Curporau' with the type o1 card the emOoM had: ButinettCard,
Umulim Busks rd, Debi BuslnetsCxd Caul, Small Bu sinets MA Card.
Corporate Card, Corporate Execuim Card, Cotpurale Purchasing Card,
Corporatt rket Cxd, Corporate Multi Card, Addc Setmr Trawl Cud, Public
Sara Purrhatig Card, P&Bc Senor taut Card, Pu lift Sector Mold Card,
Gortrawrit Travel Card, Gowan ia: Purchasirg Card, Camrannt Fleet
Cad. Gavernrxnt integrated Cott,
Within 30 days of the receipt of the claim form from the company
Certified Letter to Cardholder
f -the -telephone -contact -and -first notice-bring-less-than-full-satisfaction-of-the-arrrountroatstarrdirrg,
the financial institution must mail a certified letter to the former cardholder. This letter provides the
former cardholder with a definite date to remit payment of the unauthorized charges. Furthermore,
the letter notes that if payment is not received within 15 days, the file may be subrogated to an
insurance agency. A copy of the itemized transactions that are considered to be "unauthorized"
must also be enclosed. A copy of the letter must be retained on file.
A) 7o be used by the financial institution to send to a terminated employee for
Individual Liabilioj Accounts.
B) 7o be used by the financial institution to send to a terminated enzployee for
joint & Several and Corporate Liability Accounts.
A)
1-31-05
fiorne address
Dear Employee Name:
1'urstut ra to our letter dated 1.1-05, (tar recurcis inclior[e
diargcs on your MasterCard (Catpraatc) Carel in the
nmouru or USD cluring the period of
were not authorised by ABC Coanprny_ Your former
employer had indicaetYl that you weir either (i)
previously reimbur.wd for the charges and failed to
reimburse the financial imlihaion or GJ were previously
reirnbum. - d for ciratges which dki not ditec[ly
nr indirectly bene(il ABC Company.
We have endorsed a copy of the iwinivwd. unauthorimd
transactions for yciur revic v_
'la a uilve this matter, tvc arc requesting payment ibr
such cftargn in Lite amount or USD to (insert
name aril address of financial instkution) within the next
15 days. Failure to remit payment may result in the
transfer of the account to an insuran= agency and all
efforts may be taken to recover the Inlancv you owc.
If yott have any additional questions regar(ling this
matter, please feel rrec to give me a call of (phone
number).
-111ank you in advance for your Cooperation
Sinixrely,
(Authorized Signature)
'geptace Xcitmialt frith rhe type of cord it. empkw-had: Budrmicatd,
Eaeaative bminessCard, DAM BwnemCard Card Snail Duoke s Mull! Caid,
Corporate Card, Cnporatt Emwthe Card, Corpaale Purchasing Card,
Corponle fkM Card, Capalate Maid Card. Pubic Secra travel Card. Pubic
Sector Pudu9rg Card, PuNk Sector flea Card, Pubic Sector Multi Card.
Government roawl Card, Govetry mt Purchasing Ord. Gomtranent Ilm
Coed, Gow incrern hlegrated Card.
20
MA
1.31-05
1 tome address
Deur Employee Name:
Pursuant to our, Juicy dated 7-7.Oj, our records indicate
charges on your Mastet{3trcl (Corporate) Card in the
amount of USD during dtc period or .
were not audtorizccl by ABC Company. Your former
employer had indicated that you either (1) oracle
charges that did nix directly or indirectly bencGt the
company or (ii) were reimbursed for charges and Failed
to reimburse the financial intitulioo.
We have enclosed it copy of the kcinhaaed dist or the
unatilhorired transactions for your review -
T. rcw. I e this rrruucr, vee are requesting payment for
such charges in the amount of USD to (insem
name and address of financial institution) within die next
15 days, Failure to remit payment may reSkit[ in the
trunnfer or lite account to nu insurance agency and all
efforts tnay Ix tnken to recover the Iwlance you rrwr.
Ir you have any additional questions regarding this
matter, please feei free to give tote a call at (phone
numlxr).
''Bank you in advance For you coorperalion.
Sincerely,
(Authorized Signature)
'Replace 'CmWare" with the type al card de emoolm had: BvsinessCnrd,
rwcutim &rriresscard. Debit Businesscard Card, Smut swm5s Mtill Card,
ewpaate Card, Corporate Emcueiwe Card, Corporate Parciraring Card
Corporate Flee[ Card, Cmpwate Muld Catd Public Sects TtaN Card, Public
Seam Purc leg Card, Public Sects Reel Card, Public Sects Wit Cad
Gamnment Trail Card, Goverrvnent ftch"rig Card, Gorermrnn Fleet
Card Goremrent 1"wed Card.
Within 30 days of the receipt of the claim form from the company
Certified Letter to Cardholder.- Second Notice (Witten)
Th-e-semrrd-written-rrotrce- must7efemm-e-thL, prz-t-Wthrth-e-fUrtPs�,T-CardWOld
("First Notice" and "Certified Letter") and strongly request remittance of the full amount of excess
charges. A copy of the letter must be retained on file,
If payment has not been received within 90 days of the receipt of the claim form, the financial
institution agrees to assign rights it has to collect from the former cardholder, directly to the
MasterCoverage program administrator.
To be used t y the financial institution to send to a terminated employee for
,individual, joint & Several, and Corporate Liability Accounts.
2-21-05
Home Address
Dear Employee Natne:
Pursuant w our letters dated 1-1-05 and 1-31-05,
we have not received payment in the amount or
USD for unuutlxnized charges to
your Mastercard (Gorportte)e Gtrd. Regretfully,
without remittance of payment within the next
cen (10) cl:rys, the balance of your Mastercard
(Coapuntte)' CAMI OCCYaunt will be subrogated to
an insur-ence agency and all efforts may be
taken w recover the balance you owe.
' neptace'Capaate' with the type of cad the emplace had: Busir ssraid,
Executive BusirrmCad, Debi) BustnessCana Cad, SaW BWness MW Card,
Cnponr. Card, Corp..- Emur;.e Card, C«paate Puutradng Card,
Caproate Heel Cad, Corporate Maki Card, PuMC Seta Twel Card, Public
S.Cato Pwhasatg Card Pubik Sino(RWCleard, Pubic Senor MW Card.
Gomm= Tranl Card, Cwrermrm Purctusry Card, G ernmw fled
Card, Gcmflment Immuied Cad.
21
Appendix D
General Provisions For MasterCoverage Liability Protection
This Guide is not a policy or contract of insurance. The MasterCoverage Liability Protection Program
is purchased by MasterCard International and is provided complimentary to financial institutions
and companies covered by the program_ Enrollment is automatic.
MasterCoverage is prove e un er a master policy of insurance issued by Virginia Surety Company,
Inc. All information in this guide about this benefit is subject to the terms and conditions of the
master policy, which is in the possession of both the MasterCoverage program administrator and
MasterCard International.
If the MasterCoverage program is cancelled, the financial institution will be notified within 30 days
of the receipt of the cancellation notice from the program administrator, Such notices need not be
given if substantially similar replacement coverage takes effect without interruption.
Effective on June 1, 2005, this Guide replaces all prior Guides, program descriptions, advertising
and brochures by any party. We reserve the right to change the benefits and features of this
program, All of these benefits apply to MasterCard Corporate Payment Solutions issued by U.S.
financial institutions, including those located in the 50 United States, the District of Columbia, U.S.
Virgin Islands, and Puerto Rico.
No entity other than those indicated in this guide will have any legal or equitable right, remedy, or
claim for insurance proceeds and/or damages under or arising out of this coverage. No rights or
benefits provided to you under the MasterCoverage program may be assigned without prior written
consent of the program administra tor.
22