MasterCard

Definition

MasterCard is a global payments technology company that connects consumers, financial institutions, merchants, governments, and businesses worldwide. It facilitates electronic payments through its branded credit and debit cards.

5 Must Know Facts For Your Next Test

1. MasterCard operates one of the largest payment processing networks in the world.
2. It offers various financial products such as credit cards, debit cards, and prepaid cards.
3. MasterCard's role in finance includes enabling trade credit by providing a means for deferred payment.
4. The company earns revenue primarily through transaction fees from merchants and annual fees from cardholders.
5. MasterCard's services are crucial for cash management as they offer businesses immediate access to funds.

Review Questions

• What types of financial products does MasterCard offer?
• How does MasterCard facilitate trade credit?
• What are the primary sources of revenue for MasterCard?

Related terms

Credit Card: A payment card issued by financial institutions enabling users to borrow funds to pay for goods and services.

Debit Card: A payment card that deducts money directly from a consumer's checking account to pay for purchases.

Payment Processing Network: A system that handles transactions made with credit or debit cards by transferring information between banks and merchants.