MasterCard Worldwide is a multinational corporation. It is organised as a co-operative of banks, and is listed in the NYSE under the symbol MA. The essential function of this corporation is to process payments between the banks of the merchant and the banks of the purchaser. To this end, the purchaser uses a MasterCard brand credit or debit card. The corporation was initially created in 1966 by United California Bank, Wells Fargo Bank, Crocker National Bank and the Bank of California.
It was created as a competitor to the Bank of America’s BankAmeriCard. Prior to its IPO, MasterCard Worldwide was owned by over 25,000 financial institutions as a membership organisation. All the companies that owned the corporation issued MasterCard cards. Currently, MasterCard Worldwide is based in Purchase, New York. Today, the MasterCard cards are accepted around the world as a safe, reliable means of transferring money.
How does MasterCard Work?
The MasterCard credit cards are issued when an account has been approved by the credit provider. Once it has been approved, the card holder may use it to make purchases with merchants (in this case, the casino) who accept the MasterCard. The mechanics of the credit card are quite simple.
The purchase is essentially an agreement by the credit card holder to pay MasterCard the amount of the purchase. In case of online transactions, which are known as CNP (Cardholder Not Present) transactions, the cardholder authorises the purchase by entering a Personal Identification Number. Some casinos also accept verbal authorisation via telephone. The merchant then uses an electronic verification system to ensure that the cardholder has a valid card with sufficient credit. This verification system accepts some further information from the customer including the security code, date of birth of the cardholder and other personal information.
At the end of the billing month, MasterCard issues a statement indicating the purchases, outstanding fees and the total amount owed by the cardholder. The cardholder is then obliged to pay a defined minimum amount before a certain due date.
The MasterCard Worldwide also has a debit card called MasterMoney. The debit card is also known as a checking card, and has direct access to the cardholder’s bank account. This card can be used to make online purchases, or deposit money into the casino. When used online, the MasterMoney card requires an electronic authorisation of all transactions, and the debits are immediately reflected in the user’s account. These transactions are additionally secured with PIN authentication.