Since November 2020, Mastercard rules require registration of so-called Deferred Delivery Merchants (DDM). These are merchants who primarily accept advanced payments for goods and/or services, but usually take longer to deliver them. You can find merchants that fit this category in the following MCCs:
- Airlines and Air Carrier (MCCs 3000 through 3350, 4511)
- Car Rental Agencies (MCCs 3351 through 3500, 7512)
- Cruise Lines (MCC 4411)
- Direct Marketing - Travel-Related Arrangement Services (MCC 5962)
- Lodging-Hotels, Motels, Resorts (3501 through 3999, 7011)
- Motor Home and Recreational Vehicle Rental (MCC 7519)
- Real Estate Agents and Managers - Rentals (MCC 6513)
- Theatrical Producers (excluding Motion Picture) Ticket Agencies (MCC 7922)
- Timeshares (MCC 7012)
- Travel Agencies and Tour Operators (MCCs 4722)
Before acquiring a DDM, acquirers have to request consent from Mastercard via PDF form. The form is available as Form 1358 on Mastercard Connect > Support > Forms. Should your monthly average DDM transaction volume increase, you must immediately notify Mastercard using the same form.
If the merchant meets one of the criteria below, you do not have to request consent from Mastercard:
- Quarterly volume for a single DDM is less than USD 5 million or
- Aggregate quarterly DDM volume is less than USD 10 million.
You are also excepted from this rule if your business has a credit rating of BBB - and above from Fitch, S&P and Moody’s and your total unsecure dexposure generated by any single DDM at any point in time is less than 25% of your Free Cash Flow. These conditions are subject to change by Mastercard, so make sure to refer to the most recent PDF form.