MasterCard 2008 Annual Report Download - page 22

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requiring 100% issuer authorization. The MasterCard Electronic program is designed to curb fraud and control
exposure in high risk markets. The MasterCard Unembossed program encourages merchants to submit
transactions electronically for authorization while providing cardholders with a global acceptance network.
MasterCard offers to customers cards targeted to affluent consumers outside of the United States, such as the
MasterCard Black™ card in Latin America, World and World Signia MasterCard®in Europe and World and
Titanium MasterCard™ in Asia/Pacific, Middle East and Africa. MasterCard has created innovative, alternate
card forms to help our customers differentiate their programs.
General Services. The services provided in connection with all MasterCard credit cards and for which we
charge issuers include lost/stolen card reporting, emergency card replacement and emergency cash advance.
Optional services, such as emergency travel assistance, are also available to holders of many MasterCard cards.
These services are generally arranged by MasterCard and are provided through third-party service providers,
including licensed insurance companies retained by MasterCard to provide insurance services.
Consumer Programs—Deposit Access
Overview. MasterCard supports a range of payment solutions that allow our customers to provide
consumers with convenient access to funds on deposit in checking, demand deposit and other accounts. Our
deposit access (“pay now”) programs may be branded with the MasterCard, Maestro and/or Cirrus logo types,
and can be used to obtain cash in bank branches or at ATMs. In addition, MasterCard- and Maestro-branded
debit cards may be used to make purchases at the point of sale. As with our consumer credit programs, we
support debit Gold MasterCard®programs and debit Platinum MasterCard®programs that issuers can offer as
premium services to cardholders. Issuers may also provide enhancement services and loyalty rewards programs
in connection with debit cards carrying our brands.
MasterCard-branded Debit Card Programs. We offer MasterCard-branded debit card programs to
customers in the United States and other countries. Also, as described above, in April 2008 we introduced IPS, a
MasterCard-engineered debit processing platform. Through a single connection, the IPS platform is designed to
provide customers with an integrated suite of branded debit network and card issuer processing services in
support of PIN-based and signature debit payments, prepaid payment cards and ATM driving as well as real-time
card management and back-office processing services. We continue to explore opportunities to further enhance
our debit processing capabilities.
As a result of the settlement agreement in the U.S. merchant lawsuit in 2003, MasterCard has taken a
number of actions to modify its MasterCard-branded debit card programs in the United States. Among other
actions, MasterCard has adopted rules that allow merchants to reject MasterCard-branded debit cards issued in
the United States, while still accepting other MasterCard-branded cards, and vice versa. However, U.S.
merchants who choose to accept MasterCard-branded debit cards must accept all MasterCard-branded debit
cards.
Maestro. Maestro is our global online debit program. Based on information from our customers, we
estimate that, at December 31, 2008, the Maestro brand mark appeared on approximately 652 million cards
worldwide, representing 0.3% growth from December 31, 2007. Based on the same information, we also estimate
that Maestro was accepted for purchases at more than 10 million merchant locations globally as of December 31,
2008. Our Maestro brand has a leading position among online debit brands in many markets throughout the
world, particularly in Europe. The strong presence of Maestro in Europe positions us well as the Single European
Payment Area (“SEPA”) initiative creates a more integrated payment market in Europe. The global acceptance of
Maestro contributes to the growth of our debit business and adds value to the services that we provide to our
customers. Maestro cards are issued, and transactions on those cards are processed, pursuant to a set of rules and
procedures that are separate from the rules applicable to transactions on MasterCard credit and offline debit
cards.
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