What Is Mastercard?


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    Mastercard is one of four major U.S. processing networks, providing technology to facilitate electronic payments between consumers, businesses, and organizations.

    Definition and Examples of Mastercard

    Mastercard is a global payment technology company that provides a platform for consumers, businesses, and organizations to make electronic payments.  Its payment processing network offers credit, debit, commercial, and prepaid cards, too. Mastercard works with more than 150 currencies and in more than 210 countries and territories.

    Mastercard's business partly depends on consumer spending and consumers choosing electronic payments over cash and check transactions. One of its main revenue streams comes from processing fees charged to businesses that accept transactions made with Mastercard cards, which includes Maestro and Cirrus. 

    Mastercard authorizes, clears, and settles payment transactions made with a variety of credit cards, including the Citi Double Cash, Chase Freedom Flex, and Capital One Walmart Rewards Card. You can easily identify Mastercard credit and debit cards by the Mastercard logo on the front or back of a card

    How Mastercard Works

    Mastercard offers several types of payment products to financial institutions like banks and credit card issuers. The financial institution does the work of qualifying and approving account holders, collecting deposits or payments, and deciding on pricing. Once approved, consumers can use these products to make purchases with businesses that are authorized to accept electronic payments. 

    Transaction Processing

    Mastercard's core network routes payment transactions and facilitates the information exchange needed to complete a payment transaction. Most transactions involve four key players : the account holder, card issuer, merchant, and acquirer (the merchant's bank). 

    1. The consumer makes a purchase from a business.
    2. The card issuer authorizes the transaction, pays the acquirer the value of the transaction minus an interchange fee, and posts the transaction to the cardholder's account.
    3. The acquirer pays the merchant the amount of the purchase minus the discount rate.

    “Interchange” is a fee charged to merchants to cover the cost of processing. The discount rate is the fee paid to the acquirer to cover its costs for processing transactions and providing services to merchants.

    Merchant Rules

    Merchants that accept Mastercard payment cards have to accept all Mastercards. They can request but can't require customers to provide identification unless it's needed to complete the transaction—for example, to verify a shipping address. Merchants can't impose minimum and maximum transaction amounts either.

    Types of Mastercard Products

    Mastercard offers several products that banks can, in turn, offer to consumers.

    Consumer Credit

    With Mastercard's consumer credit products, credit card issuers can allow consumers to make purchases and defer payment. With Mastercard's benefit offers, card issuers can customize credit card products to different segments of consumers. Major credit card issuers that offer Mastercard credit cards include Capital One, Chase, and Citi.

    Consumer Debit

    Mastercard's consumer debit products allow consumers to access funds in their bank accounts. Some programs also allow consumers to make purchases and get cash back from a bank branch, ATM, or point of sale.

    Prepaid Cards

    With prepaid cards , consumers can pay in advance for purchases without a bank account or credit history. Mastercard's prepaid program allows businesses and organizations to offer cards for a variety of use cases: pay bills, send peer-to-peer payments, receive payroll, access health savings accounts, or even receive unemployment benefits or Social Security payments.

    Consumer debit and prepaid programs account for the highest amount of Mastercard's gross dollar volume, at $4.2 trillion in fiscal year 2021.

    Commercial Credit and Debit

    Mastercard's commercial credit and debit products are designed for businesses of all sizes and government agencies to streamline payments, manage information and expenses, and reduce administrative costs.

    Loyalty and Rewards

    Card issuers can use Mastercard's rewards platform to provide benefits and services to cardholders. Perks can include access to global airline lounges, concierge services, insurance services, emergency card replacement, and emergency cash advances.

    Mastercard Benefit Tiers

    Within its loyalty and rewards program, Mastercard offers three levels of benefits: Standard, World, and World Elite . Each level offers benefits that build on the previous level.

      Standard World World Elite ID theft protection x x x Zero liability for fraudulent purchases x x x Mastercard Global Service x x x Cellphone protection x $1,000 yearly coverage, $600 max per claim, two claims per year x $1,000 yearly coverage, $800 max per claim, two claims per year Professional travel services x x Hotel stay guarantee x x Lowest hotel rate guarantee x x Free hotel nights, car rental status upgrade, and savings on air travel x x Airport concierge x x Exclusive offers for rideshare, meal delivery, and shipping x x Premium experiences x x Mastercard World of Benefits app x World Elite concierge x

    Offers and experiences differ between World and World Elite Mastercards.

    Other benefits may include baggage delay reimbursement, extended warranty, lost/damaged luggage reimbursements, and protections that include rental cars cellphones, trip cancellations, and trip delays. In the last years, Mastercard has actively worked to launch several products aiming to help digitize business-to-business payments (B2B) around the world and created many strategic partnerships with other platforms to enable faster growth of digital B2B payments.

    While Mastercard may offer these benefits for card issuers to include in their programs, not all card issuers offer all benefits. If you're shopping for a credit card, choose your card based on the card issuer and the credit card's rewards , benefits, and pricing rather than the card network.

    Key Takeaways

    • Mastercard is one of four major credit card processing networks in the United States.
    • Financial institutions can offer Mastercard's payment products, like credit and debit cards, and benefits to consumers.
    • Mastercard primarily makes money by charging a fee on payments processed through its network.
    • Many of the credit cards in the Mastercard network offer a wide range of perks and benefits.
    What do master cards start with?
    number 5 Each major credit card network has its own MII: American Express cards always begin with the number 3- more specifically 34 or 37. Visa cards begin with the number 4. Mastercards start with the number 5. more
    What is a joker card in Coin Master?
    The Joker Card is a phenomenal prize which can be earned during events or found in mystery chests! It gives you the power to transform it into any card that you wish, including Gold cards! Make sure to use the Joker Card within its expiry time to get the card you that need! more
    Can I buy anything with healthy Start card?
    The Healthy Start card can only be used to buy: plain liquid cow's milk. fresh, frozen, and tinned fruit and vegetables. fresh, dried, and tinned pulses. more
    Can you start dashing without red card?
    Can I dash without a Red Card and a hot bag? Yes! As you get started, we'll only offer deliveries that you can complete without a Red Card and hot bag. Once you complete your first dash, we'll send you an email and text message letting you know that a Red Card and hot bag are on the way. more
    Can I start coin master again?
    For Android, just clear Facebook app data and start the game again. For iOS, Delete the coin master game then switch users in Facebook and reinstall the game. more
    What is the start of a master budget?
    The starting point of a master budget is usually the sales budget where the company determines the number of units that will be sold in the coming year and its selling price. Once a sales budget is formulated operational budgets will be developed. more
    Does healthy Start card expire?
    If you do not reapply to the new Healthy Start scheme online, your benefit for you and your children will stop. You can continue to use your paper vouchers until the expiry date printed on them. more
    When did the medical card start?
    Medical cards were introduced by Part III of the Health Act 1953, passed by the then Fianna Fáil government after the failure of the previous inter-party government's somewhat more ambitious Mother and Child Scheme. more
    How do I register my Healthy Start card?
    The card will come with your first payment on it and instructions on how to activate and use it. Money will be automatically added to your card every 4 weeks. You can call 0300 330 2090 to: activate your card.Call 0300 330 2090 with your:
    1. card.
    2. date of birth.
    3. 6-digit telephone access code.
    Can you use healthy Start card on anything?
    However, the Healthy Start card can be used in any shop that sells healthy food and milk and accepts Mastercard®. more
    Can I withdraw cash from healthy Start card?
    You can check your balance at ATMs so you can see what money you have to spend - but you won't be able to withdraw cash. Sadly, you won't be able to continue using paper coupons as the whole Healthy Start scheme will be moved over to the prepaid card system. more

    Source: www.thebalance.com

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