Regulatory Overview

Rules and Regulations are the guardrails of any business activity. Below you can find some information on our business model and how we comply with some of these.

Our business model:

Our core network links card issuers and merchant acquirers around the globe to facilitate the switching of transactions, allowing account holders to use a Mastercard product at millions of acceptance locations worldwide.

Our core network facilitates an efficient and secure means for receiving payments and a convenient, quick and secure payment method for consumers to access their funds. Our range of payment capabilities extend beyond our core network into real-time account-based payments.

Typical Transaction. Our core network supports what is often referred to as a “four-party” payments network.

In a typical transaction, an account holder purchases goods or services from a merchant using one of our payment products. After the transaction is authorized by the issuer, the issuer pays the acquirer an amount equal to the value of the transaction, minus the interchange fee and then posts the transaction to the account holder’s account. The acquirer pays the amount of the purchase, net of a discount to the merchant.

Key rules and procedures

Our rules and compliance programs promote reliable, simple

and safe commerce for all stakeholders.

Please refer to Chapter 1 of Mastercard Rules, which is dedicated to participation in the Mastercard scheme. Termination criteria are specified in Rule 1.13 of Mastercard Rules.

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Systemically Important Payment System

In May 2020 Mastercard was officially designated as a Systemically Important Payment System (SIPS). We take pride in the value and trust that Mastercard brings to economies around the world.

We achieve high standards by having appropriate controls in place to manage operational and financial risks. SIPS designation solidifies this and represents a formal recognition of our operational and financial soundness.