Mastercard is one of the world’s most widely used payment networks, connecting banks, merchants, businesses, and customers in over 210 countries and territories. Understanding Mastercard payments, their features, and modes of operation can help global merchants like yourself incorporate this payment method into your business operations. This guide provides an overview of Mastercard’s functionality for global merchants.
Mastercard is a global payment processing network facilitating electronic payments between banks, merchants, and customers. It provides the technology and infrastructure to process transactions securely and efficiently for its partner banks and financial institutions.
As of 2024, there are 3.5 billion Mastercard and Maestro-branded payment cards issued by Mastercard. These are usually branded with the Mastercard logo, and are called closed-loop cards. The core products of Mastercard include:
Mastercard credit cards are issued by banks or partner financial institutions and allow customers to make purchases on credit, with repayment terms and interest rates determined by the issuer. Accepting this payment method allows merchants to access a customer base holding 1.1 billion Mastercard credit cards worldwide, with a higher purchasing power among cardholders.
Mastercard debit cards deduct funds directly from the customer's bank account at the time of purchase. As of 2023, there were 1.5 billion Mastercard debit cards circulated worldwide. This card is ideal for everyday purchases where customers are ready to pay in real-time.
Prepaid Mastercard products are preloaded with a specific balance, allowing customers to spend only what has been previously loaded onto the card. This card is best for customers seeking alternative payment methods, as prepaid cards do not need to be tied to a bank account.
The Mastercard virtual card is a digital payment option that operates on the Mastercard network to facilitate online and mobile transactions. This permits secure and convenient online payments, app purchases, and even e-wallet transactions through virtual card to digital wallet integration.
The Mastercard BusinessCard® is a type of corporate credit or debit card that is designed for business use. It helps businesses manage their finances by separating personal and business expenses, building a credit profile, and potentially earning rewards or perks.
These are payments made through e-commerce platforms, apps, or digital marketplaces (e.g., food delivery services).
Mastercard cardholders can make direct mobile payments by simply linking their credit and debit cards to any participating local digital wallet. This facilitates transactions without the need to set up or top up a prepaid account; and simplifies transactions for both residents and international travellers, especially at emerging markets where digital wallets are increasingly preferred.
Some Mastercard Pay Local partnerships include Alipay in the Chinese Mainland and Octopus in Hong Kong SAR, GrabPay in Southeast Asia, Maya in the Philippines, ShopBack in Singapore, TrueMoney in Thailand, and Mercado Pago in Argentina.
Payments made via POS terminals, ATM withdrawals, or contactless options are accepted by Mastercard.
Users can quickly and conveniently pay for purchases at checkout with Just Tap & Go™ — Mastercard’s contactless payment feature that enables users to make payments by simply tapping their contactless-enabled card or device on a payment terminal.
Businesses can accept payments from any contactless card or mobile wallet via NFC-enabled device through the Tap on Phone feature. This on-the-go solution provides a quick and convenient payment option for customers across all continents and 100+ markets globally.
Mastercard transactions follow a multi-step process for authorisation, clearing, and settlement:
Customers initiate a transaction by swiping, tapping, inserting, or entering card details at checkout.
The transaction request is routed through Mastercard’s payment network to the cardholder’s issuing bank, which verifies fund availability and approves (or denies) the transaction.
Mastercard securely processes the data and routes payment details to the merchant’s bank.
Funds are transferred to the merchant’s account from the issuing bank, typically within a standard timeframe of 1–3 business days.
Mastercard employs multiple layers of security technology to prevent unauthorised transactions and protect sensitive payment data for both merchants and customers.
With the Decision Intelligence Pro security feature, Mastercard uses Artificial Intelligence (AI) to scan over one trillion data points. This helps determine whether a transaction is genuine in less than 50 milliseconds. The technology boosts fraud protection rates by an average of 20% and as much as 300% in some instances.
Europay Mastercard and Visa (EMV) chips are embedded in Mastercard cards. This chip is the global standard for encrypting transaction data in physical cards, making it more difficult for fraudsters to copy or use card information.
Users can get extra security in the form of a one-time private code in addition to card details during transactions. Consumers can confidently transact with merchants as the one-time passcode is known only to the consumer and the bank, mitigating risks for data theft and credit card fraud.
This feature uses EMV authentication standards and technology to protect your data. Mastercard Identity Check is a suite of security solutions that ensures secure checkouts for online payments and other transactions where a Mastercard credit card or debit card is not present. Included in this feature are two-factor authentication and biometric authentication.
Mastercard offers tailored solutions to support merchants and businesses in diverse industries, from small-scale entrepreneurs to large global corporations:
One of the advantages for merchants using Mastercard is its efficient settlement process, which results in relatively faster access to funds compared to traditional payment methods like cash or checks.
Merchants can view transaction details, monitor payment histories, and resolve disputes through Mastercard’s merchant portals or via acquiring banks.
Merchants engaging in global trade can use Mastercard for cross-border transactions, thanks to its vast acceptance network and integrated currency conversion tools. This feature helps merchants quickly and efficiently pay international suppliers, send earnings to global works, pay salaries and pensions to overseas recipients, and more with its near real-time cross-border payments.
Before deciding to accept Mastercard payments, merchants should consider the following:
Merchants accepting Mastercard may need to factor in costs such as interchange fees, cross-border transaction fees, and terminal or gateway fees for processing payments. These will vary based on transaction volume, location, and acquiring bank agreements.
Mastercard’s diverse product options appeal to a wide range of customers, from everyday shoppers to global business travellers. Merchants can align their services with customer preferences based on the type of card transactions they process.
Mastercard is a globally trusted payment network that provides merchants with a secure, flexible, and widely accepted platform for processing transactions. Offering various card types, including credit, debit, prepaid, and virtual cards, Mastercard is designed to cater to consumer and business needs alike.
Understanding its functionality and features ensures that merchants can make informed decisions about accepting this payment system.
Start accepting Mastercard payments with a trusted partner like Antom. With our deep market expertise, robust network of global partnerships, and cutting-edge payment technologies, we’re here to help your business grow revenue and scale across international markets. Contact us to learn more about Mastercard and other payment methods from around the world.
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