Exchange: A Guide to Understanding Payment Cards

EXCHANGE:
A Guide to Understanding
Payment Cards
Also covered
A Behind the Scenes
Look at the Payment
Pathway
Your Credit Rating:
Get the Big Picture
Tips for Avoiding
Fakes and Frauds
This brochure and its contents are provided for information purposes only and MasterCard makes no representations or
warranties as to its accuracy or applicability with respect to specific card programs. Please refer to your cardholder
agreement and card program terms and conditions, or call your issuer, for more specific information.
CONTENTS
INTRODUCTION TO CREDIT
Page
1
THE PAYMENT PATHWAY
Page
3
CHOOSING A CREDIT CARD
Page
5
HOW CREDIT CARDS WORK
Page
7
PROTECTING YOUR CARD
Page
9
UNDERSTANDING YOUR
FINANCIAL PICTURE
Page
13
RULES & RESPONSIBILITIES
Page
14
PAYMENT INNOVATIONS
Page
15
A NEW PLATFORM
Page
17
AT THE HEART OF COMMERCE™
Page
19
CREDIT CARD TRIVIA
Page
20
CONTACTS & RESOURCES
Page
21
INTRODUCTION TO CREDIT
Whether purchasing a home, dining in a restaurant or managing emergency
expenses, sometimes we just need convenient access to additional funds
beyond what is in our bank account. There are moments in our lives when we
need access to credit.
What is credit?
Credit is an agreement between a lending organization (a bank, retail shop or a
credit card company) and a borrower (you, the consumer). This agreement provides you with access to additional funds either through your bank or on a credit
card that you can repay at a later date. The terms of repayment, including interest
charges and timeline, are established when you negotiate credit.
The various types of credit available to you are determined by your needs,
your financial situation and the lending partner you choose.
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Personal Loans
Personal loans are a common form of credit offered by many financial institutions. A
personal loan can make big ticket items like a house, a new car or even an RRSP
investment, a reality. Loans come in a lump sum and are usually paid back in scheduled installments as agreed upon by you and the financial institution. Most personal
loans need to be secured. Banks rely on collateral — an asset of value, such as a
home or a car, to guarantee the loan. If the borrower defaults on the repayment of
the loan, the financial institution has the option to claim the predetermined collateral.
Lines of Credit
A personal line of credit is similar to a loan — its money borrowed for large purchases, expenses or daily needs. Unlike a personal loan, the money is readily available
to the borrower to draw from on an as needed basis. Interest is charged only on the
amount of money used, not available. Once the used portion is paid off, the interest
charges stop.
Credit Cards
Credit cards can be issued by banks, retailers, gas stations and other financial
institutions. Similar to a line of credit, a credit card makes a set amount of funds
available for use when and where it’s needed. Credit cards are unsecured loans and
users do not have to offer collateral. For most people, credit cards are the most
popular and most flexible source of credit.
Unlike other types of credit, credit cards can be used to make purchases in person,
by phone, by mail and online. Cardholders can pay the balance generated in whole
or in part, and interest is accrued on balances carried month to month.
In essence, your credit card is a series of small unsecured loans.
Exchange: A Guide to Understanding
Payment Cards is intended to help you
better understand and manage your
personal finances by providing insight into
how credit cards work.
2
THE PAYMENT PATHWAY
Ever wonder what happens “behind the scenes”
when you make a purchase with your payment
card? Whether you’re buying a new television or a
loaf of bread, the process is always the same. We
call it the anatomy of a transaction. Here’s how it
works:
cardholder’s payment card issuer and will transfer
that amount to the merchant. To establish card
acceptance in their business and to offset the cost
of managing the payment system, merchants pay
a Merchant Discount Rate (see next section) for
each credit and debit card transaction.
MERCHANT
CARD ASSOCIATION
When you make a purchase with your payment
card, the merchant swipes the card and enters the
purchase information into a point-of-sale (POS)
terminal. Point-of-sale terminals are provided by
the merchant’s acquiring financial institution (the
“acquirer”) — also referred to as the payment
processor.
MasterCard operates a sophisticated and secure
global network that handles more than 20 billion
transactions annually. MasterCard’s network connects acquirers with their merchant customers and
cardholders with their MasterCard issuers.
CARDHOLDER’S CREDIT CARD
ISSUER
ACQUIRER
The organization (bank, retailer, etc.) that provided
your credit card is your issuer. Your issuer defines
the features and terms of your card, and handles
the billing of your transactions. When you make
a purchase with your credit card, the issuer is
contacted by the acquirer, verifies the transaction information against its records and provides
confirmation that the funds are available. It is up to
the issuer to flag a problem, like insufficient funds
or a refusal of the transaction if the card has been
reported stolen.
The merchant’s payment terminal is connected to
the network of the acquirer which is connected to
the payment network of the payment organization
(such as MasterCard). The details of the transactions are transmitted across the network(s) in order
to confirm the validity of the card and the availability of the funds to cover the purchase.
The merchant will receive an authentication
approval and in turn, will provide the goods or
services you are purchasing.
This entire process occurs in only a few seconds
every time you pay with your credit card.
In a separate process, the merchant’s acquirer
will obtain the amount of the purchase from the
A FOUR PARTY SYSTEM
MasterCard transactions occur in a four-party system that consists of:
CArdHoLders
issuers
merCHAnts
ACQuirers
The consumer
The organizations that issue payment cards
Businesses and retailers
Often referred to as payment processors, acquirers are the companies that provide card
acceptance services to merchants and acquire from merchants the data related to a transaction
3
1
4
Cardholder presents
credit card
2
Product or service is
provided
Merchant queries
credit card validity and
fund availability
Merchant
Merchant
Merchant’s Financial
Institution or Processor
Merchant’s Financial
Institution or Processor
Global Payment Network
Global Payment Network
Cardholder’s Financial
Institution
3
Issuer confirms credit card
validity and fund availability
issuer bills cardholder
CHOOSING A CREDIT CARD
Today, there is a wide range of credit cards available to Canadians. Each credit
card offers different programs, options and benefits. Here are some criteria to
consider when choosing a credit card:
Annual Fees
Annual credit card fees can range from $0 to more than $250. Different fees can
mean different terms and benefits to the consumer. Be sure to ask about the specific fees before you sign up for a new credit card.
Annual Percentage Rate (APR)
This is the interest you pay on unpaid balances each year. If you think you’ll be
carrying a balance every month, consider a low-rate credit card. An APR can
change over time – some credit card companies offer promotional or introductory
rates. In addition, some credit cards charge different rates depending on the type
of transaction. You may pay a different interest rate for a cash advance than you
would for a balance transfer. Be sure you know the terms and conditions of your
interest rates before you carry a balance on your credit card.
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Other Fees
Look for other fees you might be charged. Examples include:
• Penalties if you exceed your credit limit or a payment is dishonoured.
• Charges for services like cash advances inside or outside of Canada.
• Currency conversion charges.
• Charges for the use of convenience cheques – this is often treated like a cash advance.
• Charges for additional cards for other family members.
• Inactive account charges.
• Reprinting a statement or making a copy of a transaction record.
Grace Period
The grace period is a predetermined time period during which you are not
charged interest on new purchases. The grace period is the number of days
between the statement date and the payment due date. It generally ranges from
15 to 26 days. Speak to your credit card company to confirm the timing and the
details of the grace period on your card.
Perks and Benefits
Some credit cards offer a range of rewards, benefits and bonuses. Do your research to find out which loyalty or rewards program is best suited to you. Be sure
to explore any associated fees with a loyalty program prior to signing up for the
card. Credit card perks and benefits can include:
• Rewards programs – points or miles which can be accumulated and
redeemed for various airlines and incentive programs
• 24 hour ATM cash access
• 24 hour call centre help
• Purchase protection
• Extended warranties on purchases
• Car rental insurance
• Medical / travel insurance
• Legal referral services
• Roadside assistance
• Concierge services
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HOW CREDIT CARDS WORK
Credit Limits
Most credit cards come with a limit on the total available funds a cardholder is
allowed to borrow each month. Credit limits are based on a number of criteria,
including:
• The type of credit card: While standard credit cards may offer credit limits between $500 and $5,000, some premium credit cards have higher limits
(e.g. $25,000 or more).
• Cardholder’s credit card habits: Frequent credit card use and maintaining a good standing, i.e. paying at least the minimum amount each month, could make you eligible for a higher credit limit.
•
Cardholder’s credit rating and history: Regular bank deposits (that show you can save as well as spend), bills in your name that are paid in full on time, and a well-managed credit history all contribute to a positive credit rating which can be rewarded with a higher credit limit.
Typically, a cardholder who has demonstrated good credit card behaviour will be
rewarded with higher credit limits. Cardholders can also contact their credit card
issuer to request a higher credit limit or reduce their available credit. The issuer
can approve or reject the request based on the cardholder’s credit history and
activity.
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Interest Charges
Interest charges work quite simply. If you pay the full balance owing on your credit card
statement by the payment due date each month, you do not have to pay interest. It’s like
getting an interest-free loan every month.
However, if the balance is not paid in full by the due date, the credit card issuer will charge
interest on the remaining unpaid amount, as outlined in your credit card statement.
Interest charges vary depending on the type of transaction: a new purchase, previous
purchase, cash advance or a balance transfer:
New purchases
• Purchases that appear on your monthly statement for the first time.
• They can be interest-free under certain conditions.
Previous purchases
•
•
Purchases that have already appeared on a previous statement and were not paid in full.
Interest is charged from the date these purchases were made until they are paid in full.
Cash advances and balance transfers
•
•
When obtaining a cash advance from your credit card issuer, or transfer ring a balance from one credit card to another, interest is calculated from the date the cash advance or balance transfer was made.
Typically, there is no interest-free period on these transactions.
How is interest calculated?
There is a simple three step calculation to determine how much interest you pay.
•
•
•
First, the daily interest rate is calculated by dividing the annual rate (e.g. 12 per cent) by the number of days in a year (365) = 0.03288 per cent.
Next, to calculate the daily interest amount, multiply the daily interest rate (0.03288 per cent) by the full balance owing (e.g. $1,000) = $0.33
Finally, the total interest amount is calculated by multiplying the daily interest amount (e.g. $0.33) by the number of days since the purchase (e.g. 25) = $8.22.
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PROTECTING YOUR CARD
MasterCard Zero Liability
Feel safe from unauthorized purchases. On the Web. Or anywhere else.
You’re always secure.
Credit cards are much safer to use than cash and cheques. But, their spending power makes
credit cards a logical target for pickpockets, scam artists and fraudsters. Minimize your risk of
becoming a victim by taking the necessary steps to keep your credit card safe and secure.
Most credit cards offer some level of liability protection. For example, as a MasterCard cardholder,
you’re not liable for any fraud losses on your account. With MasterCard’s Zero Liability you can
have peace of mind knowing you won’t be responsible for unauthorized purchases made in a
store, over the phone or online.* If you suspect unauthorized activity on your MasterCard account,
stop using your card and contact your card issuer immediately. Read more about MasterCard
Zero Liability at: http://www.mastercard.ca/zeroliability.
* Zero Liability is provided under the following circumstances: cardholder’s account is in good standing; cardholder has exercised reasonable care
in safeguarding their card; and has not reported two or more unauthorized events in the past 12 months.
SECURITY SYSTEMS PROTECT
YOU AND YOUR CARD
Offering protection from unauthorized
charges is only one way credit card
companies protect cardholders. More importantly, they employ a variety of security
measures to safeguard the cardholders’
information.
Further, MasterCard uses sophisticated
technology to detect unusual activity on
accounts. For example, if you normally use
your credit card to make a few purchases
a month in stores and restaurants in your
home town and suddenly there is an out of
character purchase of electronic equipment in another country, the system may
immediately flag the account and launch
an investigation.
MasterCard fights fraud on two major
fronts: security features built into your
credit card itself and security systems that
work on the network that process transactions.
If you know you will be using your MasterCard in an atypical way (during a rare trip
overseas or on an unusually costly item),
consider notifying your card issuer in advance. And if you receive a call from your
issuer asking about a questionable purchase pattern, take comfort in knowing it’s
part of the service provided to ensure your
card is being used safely and legitimately.
MasterCard credit cards contain a number
of security elements. The front of the card
features a special hologram that makes it
difficult to reproduce a fake card. On the
back signature panel, the Card Validation
Code (CVC) provides additional proof of
authenticity for online and phone orders.
For added protection against identity
theft, some credit card issuers also offer
photocards – credit cards that feature the
cardholder’s picture on the front of the
card.
But even more security activity occurs
behind the scenes. Authorization checks
and balances move back and forth between acquirers and card issuers. In addition, a whole suite of security processes is
applied specifically to online purchases.
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Online Shopping
Shopping online is a convenient and easy way to make purchases. However, there are a
few things you should look for when shopping online:
•
Privacy policies: Responsible online retailers will post their privacy policies clearly on their Web sites. Reputable retailers allow you to choose if and how your personal information is used (e.g. e-mails with information on future sales, retailer flyers, newsletters, etc).
• Retailer information: Is the retailer’s contact information easy to find on the site?
A telephone number, a physical address, a help desk – this information will help you find answers to questions you might have before and after the sale.
• During the transaction, look for:
• Delivery date: Find out when the item will be delivered.
• Shipping costs and taxes: If the transaction is international, there may be taxes / duties that will be added to the total cost of the item.
• Security features to look for:
•
•
Most online retailers use 128-bit encryption – the highest level of security currently available and nearly impossible to break.
On the bottom right hand corner of your screen, look for a gold-coloured lock symbol – this means the retailer is using 128-bit encryption.
MasterCard® SecureCode™
MasterCard SecureCode is an added security feature available from MasterCard
to protect your activity when making online purchases. Much like the familiar authentication process required for payment card use at Automated Bank Machines
(ABMs), MasterCard SecureCode is initiated on a retailer’s Web site and interacts
with both the cardholder and their card issuer. When a consumer is ready to complete an online purchase, an in-line window appears asking them to enter a unique,
personal code that has been registered with their card issuer. The MasterCard issuer then authenticates the cardholder and provides the electronic retailer evidence
of the online purchase.
With this simple step, cardholders can be confident their account is protected, and
card issuers and retailers gain greater assurance about the identity of the person
completing the transaction.
In Canada, over 2,000 Internet merchants are part of the MasterCard
SecureCode Global Program.
For more information about MasterCard SecureCode, please visit
www.mastercard.ca.
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UNDERSTANDING IDENTITY THEFT
Identity theft is often confused with the theft of a credit card. While any form of theft is serious,
including that of a stolen credit card, identity theft goes beyond the taking of a single personal
item or piece of information.
Identity theft is: stealing personal information (such as a name or social insurance number)
and/or financial information to be used to obtain other personal information, assume an identity, and ultimately, commit fraud.
The thief uses the information to establish a variety of accounts and services – including bank
accounts, credit cards, loans and purchases – all in your name but for his or her use. In other
words, this person tries to assume your identity. Without your knowledge, you can incur additional debt in your name, seriously damage your credit rating, and even become associated
with criminal charges.
Signs that you may be a victim of identity theft include:
•A creditor confirms receipt of a credit application with your name and address on it that you never applied for;
•A creditor informs you that you’ve been approved or denied for a loan that you never
applied for;
•You receive unaccounted for financial statements in your name;
•You notice missing mail, account statements or bills;
•A collection agency contacts you regarding over due accounts in your name that you did
not open.
If you suspect that you may be a victim of identity theft, take the following steps:
•Contact your financial institution immediately and report the activity;
•Contact the police;
•Report it to Phonebusters at 1-877-495-8501, www.phonebusters.com;
•Get in touch with the fraud departments of two national credit bureaus to determine if your credit rating has been impacted by the fraudulent activity, Equifax at 1-800-465-7166,
www.equifax.ca and TransUnion at 1-866-525-0262, www.tuc.ca;
•Keep a record of who you spoke with (creditors, etc.), including what was said and when;
•Contact any creditors who have contacted you and speak with their fraud department (this can include banks, phone companies, etc.).
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UNDERSTANDING YOUR FINANCIAL PICTURE
Your overall financial picture can change due to a
variety of financing arrangements you have, even
though they may not always appear related. But
lenders see these arrangements differently. They see
your whole credit picture even if you don’t — and the
centre of this picture is your credit report.
When you apply for any kind of credit, lenders and
credit issuers can see all of the debt you are currently
carrying, an overview of your credit history and credit
rating. There are many contributors to the credit reporting system, such as bill payment activity (retailers,
your telephone company, utility costs) or any time you
move money (deposits or withdrawals with your bank
account, lease payments). Lenders have access to all
of your payment habits.
What Should You Do?
You should try to understand your whole financial
picture like lenders do. When you know your credit
position, you’re more likely to know what your actual
borrowing potential is and it may help you make more
effective borrowing decisions. If you don’t understand
your credit position, you could be denied credit when
you need it and you could be paying more interest
than necessary.
Your Credit Rating
One of the keys to understanding your overall financial picture is to manage your credit rating. When you
begin to actively manage your credit rating, you will
become better prepared to ask for the credit you may
need in the future.
A credit rating is a third party evaluation of your credit
history and an overall credit score. Credit reporting
agencies like Equifax (www.equifax.ca) or TransUnion
(www.tuc.ca) consider: overall, how much credit
you have and are you managing your credit and
payments. With your permission, lenders will access
your credit rating from these credit reporting agencies
before providing any further credit. Both Equifax and
TransUnion will mail you a copy of your credit report
free of charge, or you can choose to pay a fee to
view it immediately online.
It’s important to check the accuracy of your credit report. If you notice anything wrong, it may be caused
by human error, it may be out of date or you may
have forgotten about an outstanding debt. A serious
error can result in being turned down for credit or being charged higher interest rates, so it’s a good idea
to be familiar with your credit rating.
To learn more about understanding your overall
financial picture and access an interactive tool which
can help you learn how to reduce debt, improve your
credit rating, and manage credit well, visit the MasterCard Canada’s Credit Education site at
www.mastercard.com/canada/education/credit.
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RULES & RESPONSIBILITIES
The Cardholder Agreement
When you obtain a new credit card, you also receive a detailed Cardholder Agreement. This agreement is your contract with your card issuer. When you activate your
card, you accept the terms of the Agreement.
The Cardholder Agreement will provide details on how APR (annual percentage rate)
will be calculated; interest-free periods; grace periods; fees; partial payment; currency conversion fees; interest rate changes; minimum payments; payment due dates;
and benefit programs such as rewards points and redemption. The agreement will
also explain how you will be billed for purchases. Your agreement also explains how
you are protected in cases of unauthorized purchases or fraud.
Your issuer may also send you updates to notify you of changes to your card. It
is important to sit down and carefully review your cardholder agreement and any
amendments you receive – including the fine print – in order to understand the terms
of your cardholder agreement.
Privacy
MasterCard and the financial institutions that participate in the MasterCard system
are bound by strict rules and guidelines to protect the privacy of your information.
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PAYMENT INNOVATIONS
While you may not notice it day-to-day, credit
cards are continually evolving and improving to
make purchases safer and more convenient for
you. Changes are also taking place to where and
how we can use our credit cards, as consumers
increasingly want the option to use them in places
where they have not traditionally been accepted.
Companies like MasterCard are making credit
cards a practical payment choice in locations
where speed is of the utmost importance, like fast
food restaurants or drive through services. Credit
card payments are becoming easier and faster
than using cash.
Contactless payment cards feature an embedded
computer chip and radio frequency antennae.
After cardholders tap their card on the payment
terminal, the card securely transmits payment
details wirelessly. Account details are communicated directly to the special reader and are then
processed through MasterCard’s highly trusted
acceptance network in the normal manner. Moments after consumers tap the reader with their
card they receive payment confirmation and are
on their way.
MasterCard PayPass is ideal for traditional cashheavy environments where speed is essential.
PayPass has led the market in bringing contactless technology to consumer merchant categories
such as quick serve restaurants, drug stores, gas
stations, vending machines, convenience stores,
sports arenas, movie theatres, transit systems and
parking garages.
MasterCard PayPass™
MasterCard PayPass is a contactless payment
technology that provides consumers with a quick
and convenient alternative to cash for their everyday purchases, without the hassle of fumbling for
cash or handing a card over to the cashier. Participating cardholders simply tap their PayPass-enabled MasterCard card, key fob or even a mobile
phone on a specially-equipped payment terminal
to complete the transaction. That’s it.
Gaining wide acceptance around the world,
there are 13 million PayPass cards and devices
in the market, and PayPass is accepted at nearly
50,000 convenience-focused merchant locations
in 13 countries including Petro-Canada, Cineplex
Entertainment and Rabba Foods in Canada and
7-Eleven, McDonald’s, Subway, CVS, and Regal
Entertainment locations in the U.S. PayPass is
also accepted in many Major League Baseball and
National Football League stadiums, as well as at
numerous golf events. For more information about
MasterCard PayPass and a full list of participating
merchants, visit www.mastercard.com/paypass.
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QPS: Shortening the Steps of a Transaction
What is QPS? QPS (Quick Payment Service) is a program that allows a merchant to process a MasterCard credit card transaction without requiring a signature or receipt (although a receipt is always
available as an option if the customer requests it). The cardholder hands over his or her card (except, of
course, if the cardholder is using PayPass). The merchant swipes it and returns it. That’s it. Transaction
complete. And in fewer steps than it takes to process any other payment type, including cash.
Benefits of QPS include increased payment flexibility as you can now use your credit card and not rely
on the cash in your pocket; less time spent standing in line as checkout traffic moves faster; and an
overall enhanced experience.
Prepaid Cards
Prepaid programs are powerful solutions for carrying value and facilitating spending with greater security than cash or cheques. With prepaid cards, you put aside a set amount of funds in advance and
purchases are automatically deducted from your card balance.
Prepaid cards are a smart alternative to carrying cash or traveler’s cheques because they are easily reloadable and can be used to make purchases or cash withdrawals from any Automated Bank Machine.
And, they carry the same safety and security features as a regular MasterCard card.
If you’re considering a prepaid card, consider the following:
•
Programs can vary significantly, so make sure you read the terms of the prepaid offer in full before committing to anything.
•
Be aware of the fee structure so you’re not caught by surprise.
•
Understand any minimum or maximum value load requirements.
•
Know where the card is accepted and when you’ll need alternative forms of payment.
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A NEW PLATFORM
Chip Technology
In the future, instead of swiping a card that has a magnetic stripe on the back, you will “dip” a
card that has a computer chip embedded on the front. Instead of signing to verify a payment,
you will enter a private Personal Identification Number (PIN).
The way you complete a transaction with your credit card will change but the card will continue to function as a normal credit card with all of the same features and protections you now
enjoy.
The capability and capacity of the chip is significantly greater and more powerful than magnetic stripe technology found on today’s cards. Chip cards have the capacity to store more
information, and therefore the capability to implement sophisticated payment applications and
customized programs.
MasterCard is advancing the Canadian market with all 12 active MasterCard issuers and the
leading acquiring financial institutions introducing chip cards starting in 2007/2008 and with
critical mass of cards and card accepting payment devices in market by 2010.
MasterCard.ca/chip
MasterCard Canada’s website has a section devoted entirely to chip. MasterCard.ca/chip
contains information for both card issuers and merchants on what they need to know about
chip in Canada, including MasterCard’s approach, the status of chip in Canada, preparing to
accept chip cards for merchants, and the latest news and announcements.
CHIP DEFINED
OneSmart™ is MasterCard’s suite of chip
solutions for issuing banks, merchants and
consumers. OneSmart uses chip technology
to deliver highly secure, more customized and
better differentiated card programs.
CAP (Chip Authentication Program) is a natural
extension to an EMV chip infrastructure,
enabling members to leverage their existing
investment to address the issue of payment
security and convenience across different virtual
payment channels. CAP can turn a Card Not
Present (CNP) transaction into a Card Present Transaction, reducing chargeback costs
and fraud due to CNP, and has the potential
to significantly increase card payment volumes
from e-commerce and services offered through
secure remote banking.
PayPass™ is a payment feature that can be
added to any MasterCard payment account to
enable payments with a simple tap. PayPass
is flexible enough that it can be built into cards
or other devices such as key fobs or mobile
phones, and can be used in markets that primarily issue smart cards or those that primarily
issue magnetic stripe cards.
Chip card refers to the embedded microchip
in payment cards (embedded cards are also
known as smart cards). Chip-enabled cards
work in a similar fashion to traditional payment
cards but have the capacity to store a much
larger amount of secure information. Upgrading
to chip is like trading your walkman for an MP3
player.
PIN stands for Personal Identification Number, and is the four-to-six digit security code
cardholders are asked to enter into a keypad
at the point-of-sale terminal when they make a
purchase. The PIN is one of many advantages
with the chip platform upgrade.
Chip migration refers to the move toward
chip-based cards. Chip is already in use in many
parts of the world including Europe and the
Asia-Pacific region.
POS is an acronym for Point-of-Sale. This can
mean a checkout counter in a shop or a mobile
location where a financial transaction occurs i.e.
paying the pizza delivery person via a wireless
payment terminal.
EMV is an acronym for “Europay MasterCard
Visa” and is the global technology standard for
chip-based payment cards to replace existing
magnetic stripe cards.
POS terminal stands for the device merchants
use to process financial transactions.
Smart cards refer to cards embedded with a
single or multi-application chip. Also sometimes
referred to as “chip cards.”
Magnetic stripe is the card technology that
carries data on an electromagnetic band.
M/Chip™ is MasterCard’s payment application that combines the functions of ATM, credit,
debit, and Cirrus on one payment card, giving
merchants, acquirers, and issuers everything
they need to migrate to and manage chip-based
programs. M/Chip is at the core of MasterCard’s
smart card strategy and represents the latest
generation of EMV payment applications.
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AT THE HEART OF COMMERCE™
In 2006, MasterCard Worldwide introduced its new
corporate tagline: The Heart of Commerce™. The
new corporate brand reflects MasterCard’s globally
integrated structure and strategic vision of advancing commerce worldwide. It’s also representative
of the unique insights that MasterCard leverages to
deliver business value to its customers, merchants,
consumers and shareholders.
MasterCard Worldwide is a driving force at the heart
of commerce, enabling global transactions and
bringing insight into the payments process to make
commerce faster, more secure and more valuable to
everyone involved.
While the familiar interlocking circles that symbolize
MasterCard to consumers continues to appear on
MasterCard-branded cards and at merchant acceptance locations, a new corporate logo for MasterCard Worldwide incorporates a third circle into the
design to better reflect the company’s evolution as a
franchisor, processor and advisor.
•With more than 800 million MasterCard payment cards issued, MasterCard serves as a critical link among financial institutions and millions of businesses, cardholders and merchants
worldwide.
•MasterCard provides services in more than 210 countries and territories, and is a partner to
25,000 of the world’s leading financial institutions.
•MasterCard has 5,000 employees working in more
than 37 offices around the world. The corporate headquarters are in Purchase, New York, with technology operations located outside of
St. Louis, Missouri. Regional headquarters include Dubai, United Arab Emirates; Miami, Florida; Waterloo, Belgium; and Singapore.
•MasterCard has processed as many as 40 million card authorizations and settled as much as $10 billion on a single day, enabling consumers to
make purchases instantly, anytime, almost any
where, in both the virtual and real worlds.
•The MasterCard award-winning Priceless® advertising campaign is now seen in more than 100 countries and in nearly 50 languages,
reflecting the global reach and strength of
MasterCard.
The three circles build on the interlocking red and yellow
circles of the MasterCard consumer brand, and reflect the
•MasterCard opens the door to commerce at an unsurpassed network of more than 25 million acceptance locations around the world and, in
many cases, guarantees payment through its system.
company’s three-tiered business model as a franchisor,
processor and advisor.
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CREDIT CARD TRIVIA
Did you know?
• More than 600 institutions in Canada issue credit cards.
• MasterCard is accepted at over 25 million locations worldwide.
• In 2006, there were more than 60 million major credit cards in circulation in Canada.
• MasterCard processes more than 20 billion transactions annually.
• Each year cardholders around the world use their MasterCard cards for transactions
totaling almost $2 trillion.
• Major credit cards alone account for $215 billion in retail sales in Canada each year.
• The average credit card transaction value in Canada is $110.
Source: Canadian Bankers Association/ MasterCard Worldwide.
CONTACTS & RESOURCES
Financial rights and responsibilities
The Financial Consumer Agency of Canada (FCAC): www.fcac-acfc.gc.ca
Customer Contact Centre (toll-free): 1–866–461–FCAC (3222)
Requesting Your Credit Reports
www.equifax.ca
www.tuc.ca
For general information on
FRAUD SCAMS:
•Phone Busters, the anti-fraud call centre supported by the RCMP and the government of Canada, at 1-888-495-850 or www.phonebusters.com
•Better Business Bureau at www.betterbusinessbureau.com
•Canadian Bankers Association at www.cba.ca
•Government of Canada at 1-800-O-CANADA (622-6232) or www.canada.gc.ca
To report a compromise of your
PERSONAL INFORMATION:
•Canada Post at 1-800-267-1177 or www.canadapost.ca
•Human Resources Development Canada at 1-800-206-7218 or www.hrdc drhc.gc.ca
•Phonebusters (and the Competition Bureau) at 1-888-495-8501 or www.phonebusters.com
•Equifax Canada at 1-800-465-7166 or www.equifax.ca
•TransUnion Canada (Fraud Victim Assistance Dept.) at 1-877-525-3823 or www.tuc.ca
MasterCard® Global Service™ Telephone
Number Directory
•Emergency services in Canada call 1–800–MC–ASSIST
•TDD/TYY for the hearing impaired call 1–636–722–3725
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