(as Interbank Card Association)
|Headquarters|| Mastercard International Global Headquarters, |
| Richard Haythornthwaite |
(Executive Vice Chairman)
Ajaypal Singh Banga
|Products||Credit cards, payment systems|
Number of employees
|~13,400 (December 2017)|
Mastercard Incorporated (stylized as MasterCard from 1979 to 2016 and mastercard since 2016) is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York, United States.The Global Operations Headquarters is located in O'Fallon, Missouri, United States, a municipality of St. Charles County, Missouri. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the "Mastercard" brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006. Prior to its initial public offering, Mastercard Worldwide was a cooperative owned by the more than 25,000 financial institutions that issue its branded cards.
Mastercard, originally known as "Interbank" from 1966 to 1969 and "Master Charge" from 1969 to 1979,was created by an alliance of several regional bankcard associations in response to the BankAmericard issued by Bank of America, which later became the Visa credit card issued by Visa Inc.
Although BankAmericard's debut in 1958 had been a notorious disaster, it began to turn a profit by May 1961.Bank of America deliberately kept this information secret and allowed then-widespread negative impressions to linger in order to ward off competition. This strategy was successful until 1966, when BankAmericard's profitability had become far too big to hide. From 1960 to 1966, there were only 10 new credit cards introduced in the United States, but from 1966 to 1968, approximately 440 credit cards were introduced by banks large and small throughout the country. These newcomers promptly banded together into regional bankcard associations.
One reason for why most banks chose to join forces was that at the time, 15 states prohibited branch banking and required unit banking.A unit bank is one which can legally operate only at a single site and is thereby forced to remain small. By joining a regional bankcard association, a unit bank could quickly add a credit card to its lineup of financial products, and achieve economies of scale by outsourcing tedious back office tasks like card servicing to the association. Such associations also enabled unit banks to aggregate their customer bases and merchant networks in order to make a credit card useful for both customers and merchants; early credit cards had failed because they could only be used within a small radius around the issuing bank.
In 1966, several regional bankcard associations joined together to form the Interbank Card Association (ICA).The Interbank branding in 1966 initially consisted only of a small unobtrusive lowercase i inside a circle in the lower right-hand corner of the front of each Interbank card; the rest of the card design was the prerogative of each issuing bank. This tiny logo proved to be entirely unsatisfactory for creating nationwide brand awareness in order to compete against the established leader, BankAmericard. In 1969, Interbank developed a new national brand, "Master Charge: The Interbank Card" by combining the two overlapping yellow and orange circles of the Western States Bankcard Association with the "Master Charge" name coined by the First National Bank of Louisville, Kentucky.
That same year, First National City Bank joined Interbank and merged its proprietary Everything Card with Master Charge.
In 1968, the ICA and Eurocard started a strategic alliance, which effectively allowed the ICA access to the European market, and for Eurocard to be accepted on the ICA network. The Access card system from the United Kingdom joined the ICA/Eurocard alliance in 1972.
In 1979, "Master Charge: The Interbank Card" was renamed "MasterCard". [ citation needed ]In 1997, Mastercard took over the Access card; the Access brand was then retired.
In 2002, MasterCard International merged with Europay International, another large credit-card issuer association, of which Eurocard had become a part in 1992.
In mid-2006, MasterCard International changed its name to MasterCard Worldwide. This was to suggest a more global scale. In addition, the company introduced a new corporate logo adding a third circle to the two that had been used in the past (the familiar card logo, resembling a Venn diagram, remained unchanged). A new corporate tagline was introduced at the same time: "The Heart of Commerce".
In August 2010, MasterCard expanded its e-commerce offering with the acquisition of DataCash, a UK-based payment processing and fraud/risk management provider.
In March 2012, MasterCard announced the expansion of its mobile contactless payments program, including markets across the Middle East.
In spring 2014, MasterCard acquired Australia's leading rewards program manager company Pinpoint for an undisclosed amount.
Mastercard teamed with Apple in September 2014, to incorporate a new mobile wallet feature into Apple's new iPhone models, enabling users to more readily use their Mastercard, and other credit cards.
In July 2016, Mastercard introduced their new rebranding, along with a new corporate logo. In addition, they changed their service name from "MasterCard" to "mastercard".
In August 2017, Mastercard acquired Brighterion, a Delaware Corporation headquartered in San Francisco, California that provides a portfolio of artificial intelligence and machine learning technologies.Brighterion holds several patents.
The company, which had been organized as a cooperative of banks, had an initial public offering on May 25, 2006, selling 95.5 million shares at $39 each.The stock is traded on the NYSE under the symbol MA, with a market capitalization of $236.15 billion as of August 2016.
Mastercard, along with Visa, has been sued in a class action by ATM operators that claim the credit card networks' rules effectively fix ATM access fees. The suit claims that this is a restraint of trade in violation of federal law. The lawsuit was filed by the National ATM Council and independent operators of automated teller machines. More specifically, it is alleged that Mastercard's and Visa's network rules prohibit ATM operators from offering lower prices for transactions over PIN-debit networks that are not affiliated with Visa or Mastercard. The suit says that this price-fixing artificially raises the price that consumers pay using ATMs, limits the revenue that ATM operators earn, and violates the Sherman Act's prohibition against unreasonable restraints of trade. Johnathan Rubin, an attorney for the plaintiffs said, "Visa and Mastercard are the ringleaders, organizers, and enforcers of a conspiracy among U.S. banks to fix the price of ATM access fees in order to keep the competition at bay."
Both Mastercard and Visa have paid approximately $3 billion in damages resulting from a class-action lawsuit filed in January 1996.The litigation cites several retail giants as plaintiffs, including Wal-Mart, Sears, Roebuck & Co., and Safeway.
In October 2010, Mastercard and Visa reached a settlement with the U.S. Justice Department in another antitrust case. The companies agreed to allow merchants displaying their logos to decline certain types of cards (because interchange fees differ), or to offer consumers discounts for using cheaper cards.
On November 27, 2012, a federal judge entered an order granting preliminary approval to a proposed settlement to a class-action lawsuitfiled in 2005 by merchants and trade associations against Mastercard and Visa. The suit was filed due to alleged price-fixing practices employed by Mastercard and Visa. About one-fourth of the named class plaintiffs have decided to opt-out of the settlement. Opponents object to provisions that would bar future lawsuits and prevent merchants from opting out of significant portions of the proposed settlement.
Plaintiffs allege that Visa Inc. and Mastercard fixed interchange fees, also known as swipe fees, that are charged to merchants for the privilege of accepting payment cards. In their complaint, the plaintiffs also alleged that the defendants unfairly interfere with merchants from encouraging customers to use less expensive forms of payment such as lower-cost cards, cash, and checks.
A settlement of $6.24 billion has been reached and a court is scheduled to approve or deny the agreement on November 7, 2019.
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As of 2018, Mastercard ranked 236 on the Fortune 500 list of the largest United States corporations by revenue.
Few companies have faced more antitrust lawsuits both in the US and abroad.
Mastercard, along with Visa, engaged in systematic parallel exclusion against American Express during the 1980s and 1990s. Mastercard used exclusivity clauses in its contracts and blacklists to prevent banks from doing business with American Express. Such exclusionary clauses and other written evidence were used by the United States Department of Justice in regulatory actions against Mastercard and Visa.Discover has sued Mastercard for similar issues.
In 1996 about 4 million merchants sued Mastercard in federal court for making them accept debit cards if they wanted to accept credit cards and dramatically increasing credit card swipe fees. This case was settled with a multibillion-dollar payment in 2003. This was the largest antitrust award in history.
In 1998, the Department of Justice sued Mastercard over rules prohibiting their issuing banks from doing business with American Express or Discover. The Department of Justice won in 2001 and the verdict withstood appeal. American Express also filed suit.
On August 23, 2001, Mastercard International Inc. was sued for violating the Florida Deceptive and Unfair Trade Practices Act.
On November 15, 2004, Mastercard Inc. paid damages to American Express, due to anticompetitive practices that prevented American Express from issuing cards through U.S. banks,and paid $1.8 billion for settlement.
The European Union has repeatedly criticized Mastercard for monopolistic trade practices. In April 2009, Mastercard reached a settlement with the European Union in an antitrust case, promising to reduce debit card swipe fees to 0.2 percent of purchases.In December 2010, a senior official from the European Central Bank called for a break-up of the Visa/Mastercard duopoly by the creation of a new European debit card for use in the Single Euro Payments Area (SEPA).
WikiLeaks published documents showing that American authorities lobbied Russia to defend the interests of Visa and Mastercard.In response Mastercard blocked payments to WikiLeaks. Members of the European Parliament expressed concern that payments from European citizens to a European corporation could apparently be blocked by the United States, and called for a further reduction in the dominance of Visa and Mastercard in the European payment system.
In 2013, Mastercard was under investigation by the European Union for the high fees it charged merchants to accept cards issued outside the EU, compared to cards issued in the EU, as well as other anti-competitive practices that could hinder electronic commerce and international trade, and high fees associated with premium credit cards. The EU's competition regulator said that these fees were of special concern because of the growing role of non-cash payments. Mastercard was banned from charging fees on cross-border transactions conducted wholly within the EU via a ruling by the European Commission in 2007.The European Commission said that their investigation also included large differences in fees across national borders. For instance, a €50 payment might cost €0.10 in the Netherlands but eight times that amount in Poland. The Commission argues that Mastercard rules that prohibit merchants from enjoying better terms offered in other EU countries may be against antitrust law.
The European Consumer Organisation (BEUC) praised the action against Mastercard. BEUC said interbank fees push up prices and hurt consumers. BEUC Director General Monique Goyens said, "So in the end, all consumers are hit by a scheme which ultimately rewards the card company and issuing bank."
In January 2019, the European Commission imposed an antitrust fine of €570,566,000 to Mastercard for "obstructing merchants' access to cross-border card payment services", due to Mastercard's rules obliging acquiring banks to apply the interchange fees of the country where a retailer was located. The Commission concluded that Mastercard's rules prevented retailers from benefitting from lower fees and restricted competition between banks cross border, in breach of EU antitrust rules. The infringement of antitrust rules ended when Mastercard amended its rules due to the entering into force of the Interchange Fee Regulation in 2015, which introduced caps on interchange fees. The Commission did grant Mastercard a 10% reduction of the fine however, in return for Mastercard acknowledging the facts and cooperating with the antitrust investigation.
On December 27, 2014, Visa Inc. and Mastercard suspended servicing some Russian banks in Crimea:Rossiya Bank, Sobinbank, SMP Bank and Investcapitalbank, after the United States issued sanctions against the Russian government due to the 2014 Russian military intervention in Ukraine and Crimea annexation.
In 2003, the Reserve Bank of Australia required that interchange fees be dramatically reduced, from about 0.95% of the transaction to approximately 0.5%.[ citation needed ] One notable result has been the reduced use of reward cards and increased use of debit cards. Australia also prohibited the "no surcharge" rule, a policy established by credit card networks like Visa and Mastercard to prevent merchants from charging a credit card usage fee to the cardholder. A surcharge would mitigate or even exceed the merchant discount paid by a merchant, but would also make the cardholder more reluctant to use the card as the method of payment. Australia has also made changes to the interchange rates on debit cards and has considered abolishing interchange fees altogether.
As of November 2006, New Zealand was considering similar actions, following a Commerce Commission lawsuit alleging price-fixing by Visa and Mastercard. In New Zealand, merchants pay a 1.8% fee on every credit card transaction.[ citation needed ]
In December 2010, Mastercard blocked all payments to WikiLeaks due to claims that they engage in illegal activity.In response, a group of online activists calling themselves "Anonymous" organized a denial-of-service attack; as a result, the Mastercard website experienced downtime on December 8–9, 2010. On December 9, 2010 the servers of Mastercard underwent a massive attack as part of an Operation Avenge Assange for closing down payments of whistleblowing platform WikiLeaks. According to several news sites, the security of thousands of credit cards was compromised during that attack due to a phishing-site set up by the attackers. However, Mastercard denied this, stating that "cardholder account data has not been placed at risk". WikiLeaks spokesman said: "We neither condemn nor applaud these attacks." U.N. High Commissioner for Human Rights, Navi Pillay said that closing down credit lines for donations to WikiLeaks "could be interpreted as an attempt to censor the publication of information, thus potentially violating WikiLeaks' right to freedom of expression".
DataCell, the company that enables WikiLeaks to accept credit and debit card donations, said it would take legal action against Visa Europe and Mastercard. [ citation needed ] DataCell had earlier[ when? ] said that suspension of payments towards WikiLeaks is a violation of the agreements with their customers. On July 14, 2011 DataCell announced they had filed a complaint with the European Commission claiming the closure by Visa and Mastercard of Datacell's access to the payment card networks violated the competition rules of the European Community.Iceland-based IT firm DataCell said it would move immediately to try to force the two companies to resume allowing payments to the website.
On July 12, 2012 a Reykjavík court ruled that Valitor, Visa and Mastercard's partner in Iceland, had to start processing donations within fourteen daysor pay daily fines to the amount of ISK 800,000 (some $6000) for each day after that time, to open the payment gateway. Valitor also had to pay DataCell's litigation costs of ISK 1,500,000.
In 2014, pursuant to an agreement between Mastercard and the Nigerian Government, acting through the National Identity Management Commission, the new Nigerian ID cards will bear the Mastercard logo, contain personal database data and double as payment cards, irrevocably linking such payments to the individuals,sparking criticism by the Civil Rights Congress alleging that it "represents a stamped ownership of a Nigerian by an American company ... reminiscent of the logo pasted on the bodies of African slaves transported across the Atlantic."
Mastercard, Comerica Bank, and the U.S. Treasury Department teamed up in 2008 to create the Direct Express Debit Mastercard prepaid debit card. The federal government uses the Express Debit product to issue electronic payments to people who do not have bank accounts, who are often referred to collectively as the "unbanked". Comerica Bank is the issuing bank for the debit card.
The Direct Express cards give recipients a number of consumer protections.
In June 2013, Mastercard announced a partnership with British Airways to offer members the Executive Club Multi-currency Cash Passport, which will allow members to earn extra points and make multi-currency payments. The Passport card allows users to load up to ten currencies (euro, pound, U.S. dollar, Turkish Lira, Swiss franc, Australian dollar, Canadian dollar, New Zealand dollar, U.A.E. dirham, and South African rand) at a locked-in rate. When used, the card selects the local currency to ensure the best exchange rate, and if the local currency is not already loaded onto the card, funds are used from other currencies.[ citation needed ]
In 2019, a study into foreign exchange rates by a New Zealand financial website concluded that MasterCard's foreign exchange rates outperformed Visa and American Express
Mastercard's current advertising campaign tagline is "Priceless". The slogan associated with the campaign is "There are some things money can't buy. For everything else, there's Mastercard." The Priceless campaign in more recent iterations has been applicable to both Mastercard's credit card and debit card products. They also use the Priceless description to promote products such as their "priceless travel" site which features deals and offers for Mastercard holders,and "priceless cities", offers for people in specified locations.
The first of these Priceless ads was run during the 1997 World Series and there are numerous different TV, radio and print ads.Mastercard registered Priceless as a trademark. Actor Billy Crudup has been the voice in the US market; in the UK, actor Jack Davenport is the voice. The original idea and concept of the campaign stems from the advertising agency of McCann Erickson (as it was named in 1997).
The purpose of the campaign is to position Mastercard as a friendly credit card company with a sense of humor, as well as responding to the public's worry that everything is being commodified and that people are becoming too materialistic.
Many parodies have been made using this same pattern, especially on Comedy Central, though Mastercard has threatened legal action,contending that Mastercard views such parodies as a violation of its rights under the federal and state trademark and unfair competition laws, under the federal and state anti-dilution laws, and under the Copyright Act. Despite these claims, however, noted US consumer advocate and presidential candidate Ralph Nader emerged victorious (after a four-year battle) in the suit Mastercard brought against him after he produced his own "Priceless" political commercials. In the election ads Nader had criticized the corporate financing of both the Bush and Gore campaigns. Using the theme and some of the language behind the Mastercard "Priceless" campaign the election specified the dollar amounts contributed by corporate interests to both candidates and then summed it up with "finding out the truth ... priceless". Mastercard sued Nader's campaign committee and filed a temporary restraining order to stop the ads. The TRO was not granted and Nader defended the ads by claiming they were protected under the fair use doctrine.
In 1994, Argentinian born Edgardo Apesteguía created an ad campaign in Paraguay for Bancard's credit card. Its slogan was "There are things money can't buy, but, for everything else, there is Bancard".Plagiarism lawsuits were filed in Paraguay and Chile against Mastercard and their publicist McCann, who registered the "priceless" slogan ads in the US in 1999 and was represented in Paraguay by Nafta and Biedermann publicists at the time.
Through a partnership with an Internet company that specializes in personalized shopping, Mastercard introduced a Web shopping mall on April 16, 2010, that it said can pinpoint with considerable accuracy what its cardholders are likely to purchase.
In May 2020, Mastercard announced that it's launching the Mastercard Track Business Payment Service. The service will provide business-to-business (B2B) payments between buyers and suppliers. According to James Anderson, the Mastercard EVP of global commercial products, "The service creates a directory of suppliers, enabling suppliers to publish their payment rules so they can better control how they receive payments while making it easier for buyers to find suppliers and understand their requirements."
Mastercard sponsors major sporting events and teams throughout the world. These include rugby's New Zealand, the MLB, the UEFA Champions League and the PGA Tour's Arnold Palmer Invitational. Previously, it also sponsored the FIFA World Cup but withdrew its contract after a court settlement and its rival, Visa, took up the contract in 2007. [ citation needed ] It also partners the Brazilian national football team and the Copa Libertadores.In 1997, Mastercard was the main sponsor of the Mastercard Lola Formula One team, which withdrew from the 1997 Formula One season after its first race due to financial problems.
Mastercard has its headquarters in the Mastercard International Global Headquarters in Purchase, New York.
The Global Operations Center is located in O'Fallon, Missouri, a suburb of St. Louis.
Key executives include:
Prior to its IPO in 2006, Mastercard was an association that had a board of directors composed of banks. The current board of directors includes the following individuals:
In June 2013, Mastercard has announced the promotion of Gilberto Caldart to head of Latin America and Caribbean division. Caldart joined Mastercard from Citi Brazil in 2008, where he served as country business manager and oversaw the retail bank, consumer finance, and card business. He holds a bachelor's degree in business administration and accounting, as well as a master's degree from Duke University.[ citation needed ]
Mastercard was listed as one of the best companies to work for in 2013 by Forbes.
In 2016, Mastercard UK became one of 144 companies who signed the HM Treasury's Women in Finance Charter, a pledge for balanced gender representation in the company.
Mastercard Contactless (formerly branded PayPass) is an EMV-compatible, "contactless" payment feature similar to American Express' ExpressPay, and Visa Contactless. All three use the same symbol as shown on the right. It is based on the ISO/IEC 14443 standard that provides cardholders with a simpler way to pay by tapping a payment card or other payment device, such as a phone or key fob, on a point-of-sale terminal reader rather than swiping or inserting a card. Contactless can currently be used on transactions up to and including 45 GBP, 25 EUR, 40 CHF, 50 USD, 100 CAD, 200 SEK, 200 NOK, 50 PLN, 200 DKK, 80 NZD, 100 AUD, 1000 RUB, 500 UAH or 2000 INR.
In 2003, Mastercard concluded a nine-month PayPass market trial in Orlando, Florida with JPMorgan Chase, Citibank, and MBNA. More than 16,000 cardholders and more than 60 retailer locations participated in the market trial.[ needs update ] In addition, Mastercard worked with Nokia and the Nokia 6131, AT&T Wireless, and JPMorgan Chase to incorporate Mastercard PayPass into mobile phones using near-field communication technology, in Dallas, Texas. In 2011, Google and Mastercard launched Google Wallet, an Android application which allows a mobile device to send credit/debit card information directly to a Paypass-enabled payment terminal, bypassing the need for a physical card, up until the creation of Android Pay.
During late 2015, Citicards in the USA stopped issuing Paypass-enabled plastic, but the keyfob was still available upon request. Effective July 16, 2016, Citicards stopped supporting Paypass completely. While existing plastic and keyfobs continued to work until their expiration date, no new Paypass-enabled hardware was issued to US customers after that date.
QkR is a mobile payment app developed by Mastercard, for the purpose of ordering products and services through a smartphone with payments charged to the associated credit card. It is being deployed for use in large-scale events, such as sport events, concerts, or movie theaters. Unlike other Mastercard mobile payment apps such as Pay Pass, QkR does not use NFC from the phone, but rather an Internet connection.
Users can open the app, scan a QR code located on the back of the seat in front of them, and place orders for refreshments of their choice.The order is dispatched to a nearby concession stand, from where a runner delivers the items to the patrons' seats. It is already deployed in Australian movie theaters and is being tested in Yankee Stadium.
QkR is being marketed to vendors as a replacement for other mobile payment apps and a mobile ordering app, either distributed by the vendor (such as Starbucks's app, McDonald's' app, or Chipotle's mobile ordering app) or by a third party, such as Square, headed by Twitter cofounder Jack Dorsey.
Mastercard operates Banknet, a global telecommunications network linking all Mastercard card issuers, acquirers, and data processing centers into a single financial network. The operations hub is located in St. Louis, Missouri. Banknet uses the ISO 8583 protocol.
Mastercard's network differs significantly from Visa's. Visa's is a star-based system where all endpoints terminate at one of several main data centers, where all transactions are processed centrally. Mastercard's network is an edge-based, peer-to-peer network where transactions travel a meshed network directly to other endpoints, without the need to travel to a single point. This allows Mastercard's network to be much more resilient, in that a single failure cannot isolate a large number of endpoints.
Mastercard provides a lot of documents publicly:
A debit card is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money is immediately transferred directly from the cardholder's bank account when performing any transaction.
Electronic funds transfer at point of sale is an electronic payment system involving electronic funds transfers based on the use of payment cards, such as debit or credit cards, at payment terminals located at points of sale. EFTPOS technology originated in the United States in 1981 and was adopted by other countries. In Australia and New Zealand, it is also the brand name of a specific system used for such payments; these systems are mainly country-specific and do not interconnect.
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa does not issue cards, extend credit or set rates and fees for consumers; rather, Visa provides financial institutions with Visa-branded payment products that they then use to offer credit, debit, prepaid and cash-access programs to their customers. In 2015, the Nilson Report, a publication that tracks the credit card industry, found that Visa's global network processed 100 billion transactions during 2014 with a total volume of US$6.8 trillion.
Discover is a credit card brand issued primarily in the United States. It was introduced by Sears in 1985. When launched, Discover did not charge an annual fee and offered a higher-than-normal credit limit, features that were disruptive to the existing credit card industry. A subsequent innovation was "Cashback Bonus" on purchases.
Maestro is a brand of debit cards and prepaid cards owned by Mastercard that was introduced in 1991. Maestro debit cards are obtained from associate banks and are linked to the cardholder's current account while prepaid cards do not require a bank account to operate. Maestro cards can be used at point of sale (POS) and ATMs. Payments are made by swiping cards through the payment terminal, insertion into a chip and PIN device or by a contactless reader. The payment is authorized by the card issuer to ensure that the cardholder has sufficient funds in their account to make the purchase. The cardholder then confirms the payment by either signing the sales receipt or entering their 4- to 6-digit PIN, except with contactless transactions below a specified amount for which no further verification is required.
Visa Electron is a debit card product that uses the Visa payment system. It is offered by issuing banks in every country with the exception of Canada, Australia, Argentina, Ireland and the United States. The difference between Visa Electron and Visa Debit, a similar product, is that payments with Visa Electron require that all the funds be available at the time of transfer, i.e., Visa Electron card accounts may not normally be overdrawn. Visa Debit cards, on the other hand, typically allow transfers exceeding available funds up to a certain limit. For that reason, Visa Electron cards are more commonly issued to younger customers or customers that have poor credit. Some online stores and all offline terminals do not support Visa Electron because their systems cannot check for the availability of funds. In addition to point of sale debit payments, the card also allows the holder to withdraw cash from automated teller machines (ATMs) using the Plus interbank network.
An e-commerce payment system facilitates the acceptance of electronic payment for online transactions. Also known as a subcomponent of electronic data interchange (EDI), e-commerce payment systems have become increasingly popular due to the widespread use of the internet-based shopping and banking.
Dynamic currency conversion (DCC) or cardholder preferred currency (CPC) is a process whereby the amount of a Visa or MasterCard transaction is converted by a merchant or ATM to the currency of the payment card's country of issue at the point of sale.
A merchant account is a type of bank account that allows businesses to accept payments in multiple ways, typically debit or credit cards. A merchant account is established under an agreement between an acceptor and a merchant acquiring bank for the settlement of payment card transactions. In some cases a payment processor, independent sales organization (ISO), or member service provider (MSP) is also a party to the merchant agreement. Whether a merchant enters into a merchant agreement directly with an acquiring bank or through an aggregator, the agreement contractually binds the merchant to obey the operating regulations established by the card associations.
UnionPay, also known as China UnionPay or by its abbreviation, CUP or UPI internationally, is a Chinese financial services corporation headquartered in Shanghai, China. It provides bank card services and a major card scheme in mainland China. Founded on 26 March 2002, China UnionPay is an association for China's banking card industry, operating under the approval of the People's Bank of China. It is also the only interbank network in China that links all the automatic teller machine (ATMs) of all banks throughout the country. It is also an electronic funds transfer at point of sale (EFTPOS) network.
An ATM card is a payment card or dedicated payment card issued by a financial institution which enables a customer to access automated teller machines (ATMs). ATM cards are payment card size and style plastic cards with a magnetic stripe and/or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). ATM cards are known by a variety of names such as bank card, MAC, client card, key card or cash card, among others. Most payment cards, such as debit and credit cards can also function as ATM cards, although ATM-only cards are also available. Charge and proprietary cards cannot be used as ATM cards. The use of a credit card to withdraw cash at an ATM is treated differently to a POS transaction, usually attracting interest charges from the date of the cash withdrawal. Interbank networks allow the use of ATM cards at ATMs of private operators and financial institutions other than those of the institution that issued the cards.
An interbank network, also known as an ATM consortium or ATM network, is a computer network that enables ATM cards issued by a financial institution that is a member of the network to be used to perform ATM transactions through ATMs that belong to another member of the network.
Network for Electronic Transfers or more commonly known as NETS; is a Singaporean electronic payment service provider founded in 1985 by a consortium of local banks to establish the debit network and drive the adoption of electronic payments in Singapore. It is owned by DBS Bank, OCBC Bank and United Overseas Bank (UOB).
Interchange fee is a term used in the payment card industry to describe a fee paid between banks for the acceptance of card-based transactions. Usually for sales/services transactions it is a fee that a merchant's bank pays a customer's bank ; and for cash transactions the interchange fee is paid from the issuer to acquirer, often called reverse interchange.
The Euro Alliance of Payment Schemes (EAPS) was an international alliance of European bank and interbank networks that had aimed to creating a pan-European debit card system in the Single Euro Payments Area to rival Visa and Mastercard using existing country specific systems. It was launched in 2007 with the support of the European Union but failed and was abandoned sometime after 2013.
Girocard is an interbank network and debit card service connecting virtually all German ATMs and banks. It is based on standards and agreements developed by the German Banking Industry Committee.
The Debit Mastercard is a debit card. It uses the same systems as the standard Mastercard credit card but does not use a line of credit to the customer, instead relying on funds that the customer has in their bank account.
A surcharge, also known as checkout fee, is an extra fee charged by a merchant when receiving a payment by cheque, credit card, charge card or debit card which at least covers the cost to the merchant of accepting that means of payment, such as the merchant service fee imposed by a credit card company.
The Payment Card Interchange Fee and Merchant Discount Antitrust Litigation is a United States class-action lawsuit filed in 2005 by merchants and trade associations against Visa, MasterCard, and numerous financial institutions that issue payment cards. The suit was filed due to price fixing and other allegedly anti-competitive trade practices in the credit card industry. A proposed settlement received preliminary approval from the judge overseeing the case in November 2012 but the majority of named class plaintiffs have objected and many have vowed to opt out of the settlement.
Apple Pay is a mobile payment and digital wallet service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web although Apple Pay web support is limited to the Safari browser only. It is supported on the iPhone, Apple Watch, iPad, and Mac. It digitizes and can replace a credit or debit card chip and PIN transaction at a contactless-capable point-of-sale terminal. Apple Pay does not require Apple Pay-specific contactless payment terminals; it works with any merchant that accepts contactless payments. It is similar to contactless payments, with the addition of two-factor authentication via Touch ID, Face ID, PIN, or passcode. Devices wirelessly communicate with point of sale systems using near field communication (NFC), with an embedded secure element (eSE) to securely store payment data and perform cryptographic functions, and Apple's Touch ID and Face ID for biometric authentication.
The sanctions are part of a strategy by the West to exert pressure on Russia for annexing Crimea.
President Jonathan, who flagged off the rollout, praised the outcome of a partnership between NIMC, MasterCard and Access Bank. "The card is not only a means of certifying your identity but also a personal database repository and payment card, all in your pocket," Mr. Jonathan said.
The new ID card with a MasterCard logo does not represent an identity of a Nigerian. It simply represents a stamped ownership of a Nigerian by an American company," said Shehu Sani of the Civil Rights Congress of Nigeria. "It is reminiscent of the logo pasted on the bodies of African salves[ sic ] transported across the Atlantic.
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