What is a Mastercard?
Mastercard Definition
MasterCard is an international payment card issued by Mastercard Worldwide, allowing users to make transactions at millions of acceptance locations worldwide. This card can be used to pay for online shopping, withdraw cash, pay in stores or make other financial transactions.
What is Mastercard?
Mastercard is a global financial technology corporation that provides electronic payment solutions through its card system. Founded in 1966, Mastercard has become one of the largest payment networks in the world, competing directly with Visa.
Mastercard does not issue cards directly, but instead licenses partner banks to issue cards under its brand. This means that when you open a Mastercard, the bank provides the service and credit limit, while Mastercard processes the transaction and ensures security when you use the card to make payments.
What is a Mastercard?
Mastercard is a type of payment card that can fall into three main groups:
- Mastercard Debit Card – Linked directly to your bank account, spend only within available funds.
- Mastercard Credit – Allows you to borrow first and pay later within a certain credit limit.
- Mastercard Prepaid – Users load money onto the card before using it, without needing to link it to a bank account.
General features of Mastercard:
- Payments can be made at millions of card acceptance points worldwide.
- Support online transactions, international payments.
- Provides high security features such as data encryption, two-factor authentication.
- There are many attractive promotions such as discounts, refunds, and points when used.
Mastercard Definition
Popular Mastercard Cards
Mastercard Debit
- Direct connection to the cardholder's bank account.
- Only the amount available in the account can be used.
- Suitable for users who want to control spending.
Mastercard Credit
- Allows spending first, paying later within the granted credit limit.
- Full or partial payment of outstanding balance may be made each period.
- Often comes with cashback, points, or discount offers.
Mastercard Prepaid
- No need to link to a bank account.
- Users load money onto the card before using it.
- Often used for travel or online shopping purposes.
Benefits of using Mastercard
Easy and convenient payment
Mastercard can be used at millions of card acceptance locations worldwide, making payments quick and convenient.
High security
Mastercard applies advanced security technologies such as data encryption and two-factor authentication to help protect users from fraud and unauthorized transactions.
Support international transactions
Mastercard makes it easy for users to shop online on foreign e-commerce sites or make payments when traveling internationally.
Attractive offers
Mastercard cardholders often receive many incentives such as discounts when shopping, cash back, points to redeem for gifts or free services at restaurants, hotels and fashion stores.
Benefits of using Mastercard
Compare Mastercard and Visa cards
| Criteria | MasterCard | Visa |
| Issuer | Mastercard Worldwide | Visa International |
| Scope of use | Global | Global |
| Popularity | Popular in Europe, America | Popular in Asia |
| Transaction processing speed | Quick | Stable |
| Promotional Program | Focus on cashback, discounts | Focus on travel, insurance |
Despite some differences, both cards support global payments and have similar functionality.
Conditions and procedures for opening a Mastercard
Conditions for opening a card
- 18 years of age or older.
- Have ID card/citizen identification card.
- Have a bank account (for debit cards).
- Have a stable income and good credit history (for credit cards).
Card opening procedure
- Fill out the card application form at the bank or via the website.
- Provide necessary documents (ID card/CCCD, proof of income if opening a credit card).
- Wait for the bank to approve and receive the card.
Mastercard limits and fees
Mastercard limit
- For debit cards: Limited to the amount in the account.
- For credit cards: Limit depends on income and credit rating.
Fees for using the card
- Annual Fee: Depending on the card type, it ranges from 100,000 - 2,000,000 VND/year.
- Cash withdrawal fee: About 3-4% withdrawal amount.
- Currency conversion fee: 2-4% transaction value when paying in foreign currency.
- Late Fee: If payment is not made on time, high interest rates of 20-35%/year will be charged.
Mastercard limits and fees
Notes when using Mastercard
Pay on time
If you use a Mastercard credit card, you should pay your balance on time to avoid being charged high interest rates.
No cash withdrawals from credit cards
Cash withdrawals from credit cards are subject to high fees and immediate interest charges. Should only be used in emergencies.
Control spending
Only spend within your financial means to avoid overdue debt and affecting your credit score.
Card information security
Do not share card information with others, avoid saving card information on untrustworthy websites to prevent the risk of losing money.
Frequently Asked Questions about Mastercard
Can Mastercard be used in Vietnam?
Yes, Mastercard can be used to pay at stores, supermarkets, restaurants, and e-commerce websites in Vietnam.
Can I open a Mastercard online?
Yes, many banks allow you to apply for a Mastercard online and receive the card at home.
Should I choose Mastercard or Visa?
Both cards are good, depending on your needs. If you frequently make transactions in Europe or the US, Mastercard has the advantage. If you travel to Asia, Visa has more benefits.
In short What is a Mastercard?? With many attractive incentives and high flexibility, Mastercard is a suitable choice for both individuals and businesses, helping you easily spend, shop and make international transactions.
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