What is Mastercard?
MasterCard is a payment processor network. MasterCard basically works like Visa, Discover, etc. payment networks. MasterCard's source of income is the various charges and fees issued on each card. MasterCard generates their core revenue from the Gross Dollar Volume Fee.
MasterCard cards are issued by the member bank, which bears the MasterCard logo. This means that the card will work where the MasterCard brand is accepted as the payment method. There are four major payment card processors in the entire payment industry: MasterCard, Visa, American Express and Discover. Each company operates a payment network and partners with various organizations to provide card facilities.
How Does MasterCard Work?
MasterCard credit card or debit transactions can be made in about 150 currencies in more than 200 countries and regions of the world. The use of MasterCard as a payment service provider is increasing day by day. In particular, MasterCard's brand and partner brands are the main reasons for the success of MasterCard.
A total of 5 entities work together in a simple MasterCard transaction. In addition to payment processors, transactions include consumers, account holders, issuing banks, merchants and proprietary banks.
Usually an account holder makes payments to the merchant using his MasterCard branded card. After the transaction authorization, the issuing bank pays the payment to the proprietary bank. The transaction amount is then charged from the account holder's account.
Types of MasterCard
Although any type of card reward or offer depends on the issuing bank, there are three different tiers based on the benefits of MasterCard:
👉 Standard
👉 World
👉 World Elite
The benefits of each tier or type are discussed in the MasterCard type section. This type may vary from bank to bank. Examples: Gold, Platinum, Titanium etc. So if you get a MasterCard debit, credit or prepaid card today, it could be in any other category besides the above categories.
Advantages of MasterCard
MasterCard originally offers three packages, depending on the benefits available.
👉 Standard
The following benefits can be found in the case of MasterCard Standard Package:
- The user has no liability in case of card fraud, the condition is applicable;
- Help can be obtained from anywhere in the world by calling MasterCard's Global Hotline number;
- Security will be provided from ID theft.
👉 World
In addition to the mentioned standard level benefits, additional benefits will be available in the World Package. The benefits of the World Package are:
- Monthly phone bills can be paid by card and have damage coverage up to 600
- Access to MasterCard's Travel & Lifestyle Services
- Trip Planning Assistance
- The advantage of booking a hotel at a lower price
- Luxury hotel facilities
- Additional facilities at the airport
- Discounts and membership benefits on partner services
👉 World Elite
In addition to the standard and world level benefits, some additional premium benefits are also available in the World Elite Package,
- High cell phone insurance claim limit;
- Tickets, reservations, etc. can be done by phone;
- Discounts on movie ticket purchases, etc.
Again, this category may be different in your desired bank. You can know that from the bank.
The Disadvantage of MasterCard
Shopping can be done very easily using MasterCard, but due to its easy availability, users can be overwhelmed without having to worry. Again, since there is an interest charge on the money spent, the amount of this money can be much higher over time. This means that even if it is possible to spend huge sums of money using a credit card, paying it can be quite a hassle. Again, if you fail to pay the bill within the due date, additional fee will be applicable.
Using MasterCard can increase your bill, but if you fail to pay the bill on time, it can ruin your credit score. As easy as it is to spend money using a credit card, you can easily fall into the trap of clutter.
Again, there is the issue of credit card fraud. This means that there are advantages to using MasterCard's credit card as well as some disadvantages that should be taken into consideration.
How to Get a Master Card
Like any other credit card, you need to apply for a MasterCard from a bank. In Bangladesh, City Bank, Eastern Bank, BRAC Bank, Islami Bank and many more banks issue MasterCard. If you want to get a MasterCard, first call the helpline of your bank and find out if the bank offers MasterCard and if so, what are the required documents to get the card. After that, if you apply for MasterCard by contacting the bank with the required documents, you will get the MasterCard within the specified working day.
MasterCard Fee
Fees and charges vary depending on the type of card and agreement on the MasterCard network. However, MasterCard basically charges a fee for using the card.
In each transaction 5 entities work together, namely: cardholder, merchant, acquiring bank, issuing company and MasterCard as network processor. Card fees may vary on card and merchant agreement.
As a network processing service provider, MasterCard handles transactions MasterCard charges the issuer for card authorization but the main fee is the intercharge fee included in the transaction which is fixed through negotiation between the issuer and the acquirer.
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