Mastercard Automatic Billing Updater Service

Mastercard Automatic Billing Updater (ABU) is a service offered by Mastercard that enables issuers to advise merchants of changes to a cardholder’s stored card details. This service minimises the occurrence of outdated card information that could otherwise lead to declined transactions. Card details can become out of date as a result of card expiry, cards being replaced due to loss or theft, account closures, or portfolio migrations.

ABU is particularly useful for cardholders who use recurring or stored credential transactions that do not require them to re-enter their card details, such as subscription services or utility payments. In these scenarios, the merchant relies on the accuracy of the PAN and expiry date each time a transaction is triggered. If a card is replaced and the merchant’s records are not updated, the transaction is likely to decline. ABU helps ensure that the Mastercard network can provide up-to-date card information to support the smooth processing of these transactions.

For program managers on the Visa network, Thredd offers similar functionality using the Visa Automatic Account Updater service.

In some cases, Mastercard contacts issuers who are not enrolled and requires enrolment in the ABU programme. Coordination with both Mastercard and Thredd is required for set up and activation.

How the ABU Service Works

ABU maintains a global repository of card account lifecycle events provided by issuers. When a card is reissued or updated, the issuer submits the updated account details to Mastercard, who then stores them within the ABU system.

Merchants can access ABU updates through their acquirer using one of two models:

  • Pull Inquiry Model: The merchant or acquirer proactively submits inquiries to ABU to check whether stored card details have changed.

  • Push Subscription Model: The merchant or acquirer subscribes accounts to ABU and automatically receives notifications whenever updates occur.

When an inquiry or subscription update is processed, Mastercard returns any updated card details to the acquirer, who then forwards the information to the merchant. The merchant updates their stored records before submitting a new authorisation request.

Example ABU Processing Scenario

A cardholder has an active subscription with Example Film Rental Company. Their existing card expires and a replacement card is issued. The merchant attempts to process the next recurring payment using the expired card details, resulting in a decline at the issuer.

Before retrying the transaction, the merchant’s acquirer submits a request to ABU. Mastercard identifies that updated card details are available and replaces the old PAN and expiry date with the new values before forwarding the transaction to Thredd. This results in the authorisation being approved without requiring any action from the cardholder.

ABU Service Communication Flow

The following diagram shows the main parties involved in the ABU communication flow, which include the merchant, the acquirer, the card scheme, and the issuer.

Figure: Mastercard Automatic Billing Updater Communication Flow

  1. The issuer submits updated card details to Mastercard when a card is reissued or replaced. This submission is performed via Thredd.

  2. The merchant, via their acquirer, submits either a pull inquiry or subscribes accounts to ABU.

  3. ABU processes the request against its repository of issuer-provided updates.

  4. If updated information is available, ABU returns the new card details to the acquirer.

  5. The acquirer updates the merchant’s billing system.

  6. The merchant uses the updated details to process recurring or stored-credential transactions successfully.

Updated Details in an ABU Service

The following table describes the types of updates that an issuer can provide to the ABU service.

Update Type

Description

Account Number

A change in the primary account number (PAN).

Expiry Date

A change in the card expiry date.

Closed Account

Notification that a card account has been closed and should no longer be used.

Contact Cardholder Advice

Indicates that the cardholder must be contacted directly to obtain updated payment details. In this case, ABU does not provide updated card information to the merchant. This may be used where the cardholder has privacy, security, or preference-based reasons for managing updates themselves.

Setting up the ABU Service

To use the Mastercard ABU service, customers must first be enrolled in the ABU programme with Mastercard.

To set up ABU, contact Thredd’s implementation team.

When ABU is enabled by Thredd on your Mastercard programme, all cards issued under that programme are automatically enrolled in the ABU service.

Thredd submits specific card lifecycle events to Mastercard ABU to support the updating of stored card details at participating merchants. For the following events, Thredd sends a replacement file to ABU informing the merchant of the new PAN.

  • Newly activated cards

  • Cards where the expiry date has changed

  • Replaced cards, depending on replacement reason and card status

Cards that are permanently closed or destroyed are reported to ABU as closed. When a replacement card is issued and activated, it is registered as a new card. If a merchant queries the old card details, ABU advises that updated details exist and that the cardholder must be contacted directly.

Region Availability

The ABU service is available globally.