About MasterCard

The best thing to know is that neither none of the service provider issue or distribute credit cards. It is issued by banks, which set interest rates, charge payments and offer all kind rewards. Both of the big companies are just payment networks: they process payments between banks and merchants for purchases with cards.

What are MasterCard Fees?

The conversion is a commission paid by the acquiring bank of the trader for the execution of a payment transaction. This will help to pay the card-issuing bank for some of the risks and costs associated with maintaining cardholder accounts.


  1. The company has the right to establish a standardized exchange between national borders and in one (national) country.
  2. Mastercard uses the similar approach as in other parts of the world.
  3. The purpose of the standardized exchange is to ensure that company’s cards are issued on a regular basis and that cards are accepted at a large number of outlets.

Almost all merchants accepting credit cards accept Visa and MasterCard. This is true not only for the US but also for foreign countries, where the acceptance of American Express and Discover is not so good.

Difference Between MasterCard and Visa

There are a few exceptions to this almost universal acceptance. They usually occur when a trader has an exclusive agreement with a payment network. Best known are the Costco Wholesale Clubs, which only accept Visa cards. (In mid-2016, they only took American Express).

In the same way, Sam’s club has taken the PrepaidGiftBalance MasterCard before, but not the visa, though both are now accepted. These exclusions are rare.

  • Visa and Mastercard work with a very simple and similar business model.
  • They use a four-part system to simplify financial transactions.
  • This system includes issuers such as product issuing banks, account holders of issuer cards, buyers of contracts with payment acceptance operators and operators such as retailers and billers.

Because of their business model, companies do not issue cards and do not charge account holders. In addition, they do not earn any income from interest paid by account holders. Instead, they receive income from the payments they make with their cards.

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