Mastercard is the second-largest payments network, ranked behind Visa, in the global payments industry. Other major payments networks include American Express and Discover. Mastercard partners with member financial institutions all over the world to offer Mastercard-branded network payment cards.
Mastercard offers a range of payment transaction processing and other related-payment services (such as travel-related payments and bookings). Its headquarters are in Purchase, New York.
Mastercard (originally Interbank then Master Charge) was created by an alliance of several banks and regional bankcard associations in response to the BankAmericard issued by Bank of America, which later became Visa, still its biggest competitor. Prior to its initial public offering, Mastercard Worldwide was a cooperative owned by the more than 25,000 financial institutions that issue its branded cards.
Mastercard uses its proprietary global payments network, which it refers to as its core network, to facilitate payment transactions, which usually involve the Mastercard account holder and a merchant, along with their respective financial institutions. Payments can be made via credit, debit, or prepaid cards.
