Mastercard

The initial banks that formed MasterCard were United California Bank (later First Interstate BancSystem , merged into Wells Fargo Bank ), Wells Fargo, Crocker National Bank (later also merged with Wells Fargo) and Bank of California ( subsequently merged with Union Bank of California ). Robert Livell, senior vice president of Farmer's & Merchants Bank of Long Beach, California, along with his son Martin Livell, created a graphic based on two intersecting circles called Master Charge superimposed in the center of the logo. All this has become part of the work of the Independent Association of Bankers.

In 1966, the aforementioned group of California banks signed an agreement and formed the Interbank Card Association (ICA). ^[5] With the support of the New York Marine Midland Bank , now HSBC Bank USA , these banks joined the ICA to create the Master Charge: The Interbank Card banking product. The card received a significant boost in its development in 1969 when First National City Bank joined them, combining its Everything Card product with Master Charge.

In 1968 , the first international agreement was concluded with the Mexican bank Banko Nacional . In the same year, MasterCard International signed a strategic agreement with the European Eurocard , which marked the beginning of a partnership between the associations MasterCard International and Europay International and gave MasterCard access to the European market, and Eurocard got the opportunity to service on the MasterCard network. In 1972, the Access UK card system entered the MasterCard / Eurocard alliance.

In 1979, “Master Charge: The Interbank Card” was renamed simply “MasterCard”. ^[5] In the early 1990s, MasterCard acquired the British Access card and the name Access was dropped. In 2002, MasterCard International teamed up with Europay International SA , ^[5] another major card-issuing association that over the years has issued cards called Eurocard.

In 2006, MasterCard International underwent a name change, renaming itself MasterCard Worldwide. This was done to offer the corporation larger operations. In addition, the company introduced a new corporate logo, adding a third to the first two circles, which made it look like a Venn diagram . The company's new motto at that time was the phrase "Heart of Commerce."

On May 25, 2006, MasterCard, established as a banking association, made an initial public offering of its shares at a price of $ 39.00 apiece. Bidding took place on the NYSE under the symbol MA.

In 2010, MasterCard expanded its e-commerce business by proposing the acquisition of DataCash , a UK-based payment processing company, and a risk management / fraud tracking service provider. ^{[6] [7]}

In 2012, MasterCard announces the expansion of its mobile contactless payment program, including the payment market throughout the Middle East. ^[eight]

In 2014, MasterCard acquired the Australian company Pinpoint, a leading remuneration program manager, for the unclaimed amount of the transaction. ^[9]

Together with Apple, in September 2014, MasterCard included the function of a mobile wallet in Apple’s new iPhone models, which gave owners the convenience of using their bank cards. ^[ten]

On January 7, 2019, the press service of the Mastercard payment system announced a change in the company logo. ^{[11] [12] [13]}

The MasterCard International Association is managed by its members. In order to coordinate and manage global business, ensure the promotion of the payment system brands , develop and implement new technologies and standards, the non-profit (non-profit) non-stock corporation MasterCard International Incorporated was founded.

In 2010 , MasterCard accounted for 20% of the world's payment cards, 28.6% had the former world leader VISA , and China UnionPay was the first with 29.2% ^[14] .

In 2015, MasterCard’s share in the world also makes up 20% of the payment market, while in Russia it’s a 35% share with a total of 80 million cards issued. ^[15]

MasterCard International Incorporated Corporation and participants of the MasterCard International payment system are actively involved in the development and implementation of microprocessor card technologies and standards, as well as in the promotion of cards as a secure payment tool in the e-commerce market. To this end, the payment system participates in several international consortia and forums working on the implementation of standards for multifunctional microprocessor cards.

Litigation

Antitrust lawsuit from ATM operators

Along with VISA, a collective lawsuit was initiated against MasterCard, initiated by ATM operators, in that the rules of ATM networks for servicing credit cards set a fixed payment for an ATM for access to the ATM network. The lawsuit alleged that it restricts free trade and violates federal law. The lawsuit was filed by the National Council for ATMs and independent ATM operators. In particular, the lawsuit stated that the rules of MasterCard and Visa networks prohibit ATM operators from offering a lower transaction price for debit cards with a PIN input than in ATM networks not affiliated with Visa or MasterCard. It was also indicated that the fixed commission artificially inflates the price that the consumer ultimately pays for using the ATM, and limits the income earned by ATM operators, and also violates Sherman’s law on unjustified trade restrictions. Jonathan Rubin, the plaintiff’s attorney, said Visa and MasterCard are the initiators, organizers, and overseers of a conspiracy between US banks to fix commissions for ATMs in order to maintain a competitive advantage. ^[sixteen]

Fixed commission for debit card payments

MasterCard and Visa also paid about $ 3 million in damages in a class action lawsuit filed in January 1996. The plaintiffs involved several retail giants, including Wal-Mart , Sears, Roebuck & Co. and Safeway Inc. ^[17]

Antitrust Settlement with US Department of Justice

In October 2010, Visa and MasterCard reached an agreement with the US Department of Justice on another antitrust case. Companies agreed to display their logos with retail outlets in order to reduce certain types of cards (since different payment for interchange is used) or when making a decision by the buyer to use a more favorable card for payment in order to get a discount. ^[18]

The company began operating in Russia since 1991. Almost any ATM in Russia accepts a Mastercard. On December 29, 2012, the MasterCard payment system was registered in the register of payment system operators of the Bank of Russia ^[19] . Although it worked actively before this procedure.

The operator is MasterCard LLC.

Settlement Center - Sberbank of Russia OJSC.

On March 21, 2014, the US Treasury imposed sanctions against certain Russian individuals and organizations. In order to comply with US law, MasterCard Worldwide has suspended access to the MasterCard network for such organizations. ^[20] Among the blocked were the banks of JSCB Rossiya, Investkapitalbank, SMP Bank , Finservice , Sobinbank , and others.

On March 21, 2014, State Duma deputies and officials of the Russian Federation began preparing amendments to the federal law “On the National Payment System ”, which should oblige payment systems to store data on transactions in the Russian Federation.

On December 26, 2014, Mastercard notified Russian banks of the need to stop servicing its cards in Crimea in connection with U.S. sanctions imposed against Crimea on December 19, 2014. ^[21]

Mastercard

MasterCard International, the founding brand, is the basic brand in visual communication with payment system participants, customers and trade and service enterprises around the world.

Mastercard electronic

It is positioned as a “100% electronic”, “100% authorized by the issuer” card product intended primarily for use in a high-risk environment (this category includes both not completely reliable customers from the issuer's point of view and trading that are unsuccessful from the point of view of fraud points, entire countries or regions - from the point of view of the cardholder). ^[22]

Maestro

A debit card service , founded in 1990, using the binding of cards to a current account or a prepaid cash limit. It differs by online authorization of the balance of funds in the issuing bank and requires confirmation of payment by signature or PIN. Available only with magnetic stripe or with magnetic stripe and microchip. ^[23]

Mondex

This product provides an opportunity for settlements with "electronic money", for which it is possible to "load" cash into an "electronic wallet", which operates on the basis of the chip installed in the card. ^[24]

Cirrus

MasterCard International's trademark combining an ATM network. ^[23]

MasterCard Contactless is an EMV- compliant non-contact payment option based on the ISO / IEC 14443 standard that provides cardholders with a way to make a payment by touching or touching a payment card or other payment tool, such as a telephone or keyring, to a payment terminal instead of holding it to read or insert it into the terminal.

In 2003, MasterCard conducted a 9-month test market use of PayPass technology in Orlando , Florida in conjunction with JPMorgan Chase , Citibank, and MBNA . Over 16,000 cardholders and more than 60 retail locations took part in test trials. In addition, MasterCard worked on technology with Nokia , AT&T Mobility and JPMorgan Chase to incorporate MasterCard PayPass into mobile phones using Near Field Communication technology in Dallas , Texas . As expected, Contactless will soon be built into mobile phones. Currently, this technology is used in many phones using special services. ^[25] .

Operations in the MasterCard payment system are carried out through the Banknet telecommunications network , which connects all the issuers of these cards and processing centers into a single financial network. The operations center is located in St. Louis , Missouri. Banknet uses the ISO 8583 protocol.

The MasterCard network is significantly different from VISA, in which the network has a star topology, all of which endpoints converge in one of several data centers, where all transactions are centrally processed. The MasterCard network is a peer-to-peer, in which transactions are transmitted directly to other endpoints that are the "cells" of the network. This gives such a network more stability, since a single failure cannot affect the disconnection of a large number of endpoints. ^[26]

• VISA
• World

• Company official website