Reviewed by Aug 27, 2020| Updated on
What is MasterCard?
The MasterCard Corporation is one of the world's four largest payment networks. MasterCard partners with institutions worldwide to offer MasterCard branded payment cards on the network. The MasterCard payment cards use the MasterCard network solely to handle all transaction communications. Payment cards can be credit cards, debit cards, or prepaid cards.
MasterCard itself is a financial services business, generating revenue primarily from gross dollar volume (GDV) fees. MasterCard cards frequently come with the MasterCard logo. Closed circle, the logo is typically not included in retail store cards. Open-loop cards, approved wherever they are, also carry the MasterCard logo to help identify their eligibility for use.
There are four main payment card providers across the payments industry—MasterCard, Visa, American Express and Discover. Each firm operates a payment network and partners for card services with a range of institutions.
Both electronic payment cards have cardholder numbers beginning with an issuer ID number (IIN) identifying the electronic payment network operator. If a logo is not clear, the IIN will help identify the card name.
The MasterCard Business
MasterCard posted gross transaction volume worth $6.5 trillion in 2019, which indicates the amount of money transacted comprehensively on all its card offerings. The company is working with a number of companies to sell various types of cards.
Mostly, MasterCard's company is to offer both open loop and closed loop solutions through collaborations with financial institutions and retailers.
MasterCard's entire business is engaged in co-branded relationships. Co-branded relationships between either financial institutions or retailers can typically be segregated.
MasterCard acts as the issuer while it is working with a financial institution. The institution has the right to decide the terms and benefits that a cardholder can receive on its card. A financial institution may choose to partner for a credit card, debit card, or prepaid card issuance. The financial institutions sell various features on a MasterCard branded card to draw different types of customers.