Did you know that there are credit cards that can only be used within the country? But are there cards that can be used abroad as well? One type of card that can be used both domestically and internationally is a card with the MasterCard logo. Find out what MasterCard is and its functions here:
What is a MasterCard?
MasterCard is an American financial company that provides payment card services to banks around the world. Founded in 1966, MasterCard shares began trading on the New York Stock Exchange (NYSE) in 2006. At that time, more than 25,000 financial institutions worldwide issued cards from the company.
Many Indonesian financial institutions that use MasterCard products include Bank Mandiri, Bank Danamon, Bank CIMB and many others. The types of payment facilities issued also vary. From debit cards (ATMs), credit cards, to payment cards.
From the research of Consumer Financial Protection Bureau (CFPB) In 2021, 273 million MasterCard cards were in use worldwide. With this number, the company has achieved the second market leader position in the industry after Visa with a market share of 34.5%.
Mastercard functions
The job of a payment card provider, such as MasterCard, is to connect the parties involved in the payment. for illustration Let’s look at the following example:
Santo buys shoes in the store using credit card MasterCard is issued by Bank Mandiri. MasterCard’s payment network infrastructure transmits Santo’s payment information to the banks used by the shoe store. Additionally, through the MasterCard network, the banks used by the shoe store and Bank Mandiri complete the transaction. Ends within minutes
Benefits of using MasterCard
1. Can be used for offline and online transactions.
All MasterCard debit and credit cards can be used for online and offline transactions as per bank policies. for offline transactions You can pay using this facility by swiping your EDC machine or giving your card number at the cashier. for online transactions You can add this card number to the payment menu available in the market or other applications.
2.Can be used abroad
Although it can be used in all countries around the world. But MasterCard credit cards are more popular in North American countries like Canada and Greenland. It is also popular in Australia and Brazil. Therefore, if you go to these countries, you should use Debit or credit card with this company logo
3. Offer interesting promotions
Another advantage of using MasterCard is that banks often use this company’s services (especially credit card) will present interesting promotions starting from Free annual feeComplimentary glasses and other merchandise to airport lounges The size of this promotional value is usually determined by the size of the small transaction you make using this payment facility.
Differences between MasterCard and VISA cards
As explained above, MasterCard and VIsa are two of the most prominent card payment providers in the world. Even though the service is more or less the same. But the two US companies differ in many ways, including:
1. Service area
While MasterCard is more widely used in North America and Australia, Visa is more popular in most Asian and European countries. Therefore, if you want to travel to these countries, you should bring your Visa debit or credit card. But if you go to many countries There is no harm in having both countries.
2. Administrative expenses
When choosing the type of card to use You should also check the details of the transaction fees charged by the card. Because different types of cards There can also be different management fees.
For example, MasterCard and Visa have different fees for international transactions. With Visa, the transaction fee charged is 1%, while with MasterCard, the amount varies from 0.2% – 1% depending on. Stores that supply products
3. Card types and details
Credit cards are generally awarded based on the customer’s income. The more income the customer has, the more The more credit cards you get, the more benefits you’ll get. Visa types offered include Visa Infinite, Visa Gold, Visa Platinum, Visa Signature, and Visa Classic. MasterCard card types include World MasterCard, World Elite MasterCard, MasterCard Platinum, MasterCard Classic. and MasterCard Gold
MasterCard and Visa, which is better?
From the above discussion, it can be concluded that between MasterCard and Visa there is no significant difference. Except for the popularity of services in some areas Instead of choosing a credit and debit card based on brand alone, You should choose this payment system according to the card requirements.
For example, MasterCard World if you need around IDR 75 million for transactions for 1 year and want special facilities at the airport. Otherwise, if your needs use credit card Not many can choose MasterCard Classic, another example. If you are planning to travel to another country in Asia, a Visa card is better, while if you are going to North America, it is better to use a MasterCard.
Aside from MasterCard and Visa, there are many other card “brands” you can consider, such as National Payment Gateway (GPN), American Express (AMEX), UnionPay, JCB Card, and more. Choose a card brand based on your needs and preferences. your convenience
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