Product Code Database
Mastercard Inc. (stylized as MasterCard from 1979 to 2016 and as mastercard from 2016 to 2019) is an American multinational payment card services corporation headquartered in Purchase, New York. It offers a range of payment transaction processing and other related-payment services (such as travel-related payments and bookings). 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 card, credit card and prepaid cards to make purchases. Mastercard has been public company since 2006.
Mastercard (originally Interbank, then Master Charge) was created by an alliance of several banks and regional bankcard associations in response to the BankAmericard issued by Bank of America, which later became Visa and is still its biggest competitor. Along with Visa, Mastercard has faced numerous antitrust lawsuits. 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.
One reason why most banks chose to join forces was that at the time, 16 states limited the ability of banks to operate through branch locations, while 15 states entirely prohibited branch banking and required unit banking. Available through SpringerLink. A unit bank can legally operate only at a single site and is thereby forced to remain very 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 their respective issuing banks.
In 1966, Karl H. Hinke, an executive vice president at Marine Midland Bank, asked representatives of several other banks to meet him in Buffalo, New York. Available through ProQuest. Available through ProQuest. Marine Midland had just launched its own regional bankcard in the Upstate New York market after Bank of America declined its request for a BankAmericard regional license because Marine Midland was too big. The result of the Buffalo meeting was that several banks and regional bankcard associations soon agreed to join forces as Interbankard, Inc., which then became the Interbank Card Association (ICA). By the end of 1967, ICA had 150 members and Hinke became ICA's chairman. Bank of America eventually joined Mastercard as well. (In the 21st century, Bank of America would revive the BankAmericard brand name as a Mastercard credit card, which it remains today).
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. Available through SpringerLink. 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, Citibank joined Interbank and merged its proprietary Everything Card program 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. Beginning in 1980 the company rolled out new cards with a refreshed logo. Cards retained the overlapping red and yellow circles first adopted in 1969; subsequent card designs have continued to use this motif.
In 1983, Mastercard International Inc. became the first bank to use holograms as part of their card security. (2010). 9780071624008, McGraw-Hill. ISBN 9780071624008 They acquired the Cirrus network of automated tellers in 1985.
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. Mastercard became a Delaware corporation in connection with the merger, as well as in anticipation of an IPO.
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 $434 billion as of April 2024. The deal was designed to maintain the value of the brand and minimise regulatory costs.
In August 2010, Mastercard Worldwide, as it had been rebranded, 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. In July 2016, Mastercard acquired 92.4% of VocaLink, a British company, for $920 million. In August 2017, Mastercard acquired Brighterion, a company with a portfolio of intellectual property in the areas of artificial intelligence and machine learning. Brighterion holds several .
In August 2019, Mastercard launched an offer to acquire part of the operations of Nets, a Scandinavian company, for €2.85 billion.
In April 2021, Mastercard created a calculator that gathers information and measures the carbon footprints of the customers in order to help them know how much they are contributing in carbon emissions and global warming. The same month, Mastercard announced the acquisition of Ekata, a company specializing in identity verification, for $850 million.
In March 2022, following the Russian invasion of Ukraine, Mastercard announced that it would suspend all business operations in Russia.
On November 17, 2023, the Chinese government approved the local bank card clearing license for the joint venture established by Mastercard in China. As of May 9, 2024, the joint venture can issue Mastercard bank cards that use the Chinese yuan for payment.
In September 2024, Mastercard acquired cybersecurity company Recorded Future for $2.65 billion.
In January 2026, Mastercard launched an Agentic AI suite called the Mastercard Agent Suite to help banks, retailers and other enterprises build, test, and deploy autonomous AI-driven workflows and agents for business operations. It is expected to be available in the second quarter of 2026.
In July 2025, Eastern Bank PLC (EBL) in Bangladesh, in partnership with Mastercard, unveiled the world’s first commercially issued biometric metal credit card under the “World Elite” tier. The launch took place on 5 July 2025 in Dhaka, co-sponsored by IDEX Biometrics, KONA I, and Infineon Technologies. The card allows fingerprint authentication for EMV transactions, supports contact and contactless payments, and is issued as part of Mastercard’s Priceless Specials program.
Mastercard’s global FAQ indicates biometric payment cards have been issued in over 70 markets, integrate with standard EMV terminals and ATM, require no new infrastructure, and support user self‑enrollment kits.
| +Sales by region (2024) !Region !Sales in billion $ !share | ||
| Asia-Pacific, Europe, the Middle East and Africa | 15.8 | 56.1% |
| Americas | 12.4 | 43.9% |
Few companies have faced more antitrust lawsuits both in the US and abroad.
Both Mastercard and Visa have paid approximately $3 billion in damages resulting from a Class action filed in January 1996 for debit card swipe fee price fixing. Visa/MasterCard Litigation , January 1, 1996. The litigation cites several retail giants as plaintiffs, including Walmart, Sears Holdings, and Safeway. www.inrevisacheckmastermoneyantitrustlitigation.com . Retrieved July 13, 2011.
In 1996, four 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.
Plaintiffs allege that Visa Inc. and Mastercard fixed , 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 got preliminary approval in November 2019. A settlement of $5.54B was approved in 2019. Certain merchants appealed the settlement and were heard. The case is ongoing .
As of November 2006, New Zealand was considering similar actions, following a Crown entity lawsuit alleging price-fixing by Visa and Mastercard. In New Zealand, merchants pay a 1.8% fee on every credit card transaction.
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 on Mastercard for "obstructing merchants' access to cross-border card payment services", due to Mastercard's rules obliging acquiring banks to apply the 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.
In February 2021, following an investigation by the British Payment Systems Regulator, Mastercard admitted liability for breaching competition rules in relation to pre-paid cards.
In November 2024, the European Commission launched a further investigation into whether the scheme fees imposed by Visa and Mastercard impact negatively on retailers. Some retailers had in recent years complained about the fees, citing a lack of transparency. The Commission took its investigation further in June 2025, asking for a retailer view and for comments from the card operators about whether "a standardized summary of fees" would help to promote transparency.
In November 2025, Mastercard announced its expansion in Europe with the creation of new hubs in Warsaw and Gdańsk, Poland.
On March 20, 2000, the United States District Court for the Eastern District of Louisiana, reviewed motions in Re: MasterCard International Inc. regarding multi-district litigation alleging Mastercard illegally interacted with a number of internet casinos. The plaintiffs alleged, among other claims, that Mastercard had violated the Federal Wire Act. They sought financial relief for losses suffered at online gambling sites outside the United States.
The District Court's ruling on February 23, 2001, later upheld by the United States Court of Appeals for the Fifth Circuit, sided with Mastercard. The Fifth Circuit also clarified the application of the Wire Act to illegal online gambling. The Court determined that the wire act only applied to gambling activities related to a "sporting event or contest". Therefore, the court could not conclude that Mastercard had violated the Wire Act.
When PASPA was overturned May 14, 2018, Mastercard had to provide new guidance to its member banks. It clarified that state location restrictions apply to the individual placing the wager, not the member bank processing the transaction. According to various state gaming laws, sports betting providers must use Internet geolocation to determine a customer's physical location prior to accepting a wager. The Independent Community Bankers of America specifically requested information about a new online gambling merchant category code. Mastercard has dedicated MCC 7801 to online gambling. This code is distinct from 7800 for government owned lotteries and 7802 for government licensed horse and dog tracks.
In July 2011, Iceland-based IT firm DataCell, the company that enabled WikiLeaks to accept credit and debit card donations, said it would take legal action against Visa Europe and Mastercard, and that it would move immediately to try to force the two companies to resume allowing payments to the website. Earlier on December 8, 2010, DataCell's CEO Andreas Fink had stated 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." DataCell files a complaint with the European Commission ", datacell.com, July 14, 2011. Retrieved 5 Augusti 2012.
On July 12, 2012, a Reykjavík court ruled that Valitor, Visa and Mastercard's partner in Iceland, had to start processing donations within fourteen days" Tvingas öppna för Wikileaksdonationer " Sveriges Television, July 12, 2012. Retrieved July 30, 2012. or 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." Judgement Reykjavík District Court, 12 July 2012 in case number E-561/2012: Datacell ehf.", English translation of judgment. . Retrieved November 9, 2012. WikiLeaks Wins Icelandic Court Battle Against Visa for Blocking Donations | Threat Level. Wired.com.
Credit cards:
Debit cards:
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 September 2014 Mastercard worked with Apple to incorporate a new mobile wallet feature into Apple's new iPhone and Apple Watch models known as Apple Pay, enabling users to more readily use their Mastercard, and other credit cards.
In May 2020, Mastercard announced the Mastercard Track Business Payment Service. The service will provide business-to-business payments between buyers and suppliers. According to the head of global commercial products, it "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".
On February 10, 2021, Mastercard announced their support of cryptocurrency saying that later in 2021, Mastercard will start supporting select cryptocurrencies directly on their network. One of the main focus areas that Mastercard wants to support is using digital assets for payments, and that crypto assets will need to offer the stability people need in a vehicle for spending, not investment. In October 2021, Mastercard announced that through its partnership with Bakkt, any bank or merchant on its network would soon be able to offer crypto services. In June 2022, Mastercard announced that it would now be allowing cardholders to purchase NFTs via various NFT scaling platforms.
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 sterling, 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.
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.
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.
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. 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 Google Pay. In 2014, the Apple released Apple Pay for iOS devices.
During late 2015, Citicards in the US 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.
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 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 January 2019, Mastercard removed its name from its logo, leaving just the overlapping discs.
In 2021, Mastercard was ranked number 13 on Morning Consult's list of most trusted brands.
In 1997, Mastercard was the main sponsor of the MasterCard Lola Formula One team, which withdrew from the 1997 Formula One season due to financial problems having failed to qualify its first race. The team also sponsored Jordan Grand Prix from the 1998 season through to end of the 2001 Formula One season. In July 2024, Mastercard returned to Formula One after signing a multi-year sponsorship deal with McLaren Racing. In August 2025, McLaren Racing announced Mastercard as the team's official naming partner. The team will enter the 2026 season onwards as the McLaren Mastercard Formula 1 Team.
Mastercard was also the title sponsor for the Alamo Bowl game from 2002 until 2005.
In late 2018, Mastercard became the first major sponsor for League of Legends esports. The company sponsors the League of Legends World Championship, Mid-Season Invitational, and the All-stars event for League of Legends.
Until 2018, Mastercard was the sponsor of the Memorial Cup, the CHL's annual championship between its three leagues.
In September 2022, Mastercard acquired the title sponsorship rights for all international and domestic home matches organized by the Board of Cricket Control in India.
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.
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:
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. Fact Sheet from MasterCard website. Retrieved April 4, 2013.
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