How MasterCard Works

Understanding the transaction process and how you fit in.
A transaction is a purchase that begins with a cardholder. The diagram below will help you better understand the role of MasterCard and the merchant in this transaction process.

The transaction process is a series of purchases, beginning with the cardholder:
Card Issuing Bank
Card Issuing Bank – The cardholder’s financial institution, also a licensed member of MasterCard
Cardholder – A consumer who is solicited, screened, and approved by the issuer who establishes a line of credit for the customer and issues the bankcard.
Merchant – Virtually any company that wants to accept cards for payment and that meets the qualification standards of MasterCard and an “acquirer”.
Acquirer – A licensed member of MasterCard that screens and accepts merchants into its bankcard programme, processes transactions, and completes financial settlement to them.
MasterCard Worldwide – We license our brand to member financial institutions that in turn provide services to consumers and merchants.