When issuing a debit or credit card, banks or financial service providers will collaborate with payment network service providers. These payment network service providers are responsible for authorizing and verifying transactions using the card, thereby ensuring greater security for user transactions.

There are many payment network service providers currently used worldwide, including Mastercard.

What is Mastercard?

Mastercard is a debit or credit card issued by financial institutions in collaboration with Mastercard, a payment network service provider from the United States. First released in 1979, the circulation of cards issued by this company now reaches 101 million cards in the United States and over 545 million cards in other countries.

Debit and credit cards with the Mastercard logo in the bottom right corner can be used for shopping in various countries worldwide. However, these cards are generally used in the United States, Canada, Australia, China, and several other Asian countries.

Besides Mastercard, two payment networks often used by various financial institutions in Indonesia are Visa and Gerbang Pembayaran Nasional (GPN). Although their functions are similar, the companies and usage scope between Mastercard and these two payment networks differ.

GPN is an interbank payment network system in Indonesia, so the difference between GPN and Mastercard is that cards with the GPN logo cannot be used abroad. However, banks generally apply more affordable administration fees for issuing cards with the GPN logo.

On the other hand, Visa and Mastercard do not differ much. The main difference between Visa and Mastercard lies only in the geographical usage. Mastercard is widely used in North America and Australia, while Visa is widely used in European countries, South Korea, and Japan.

Mastercard Functions

Mastercard's primary function is to authorize payments made by users in every transaction. In this case, when you shop using a Mastercard-branded card, your data will be sent to Mastercard for authorization.

Once authorized, the data will be forwarded to the bank you use for payment. The bank will approve or decline the payment based on the remaining balance in your savings (debit card) or your remaining limit (credit card). If your limit or balance is sufficient, the transaction will be approved.

For example, you use an Honest credit card to buy food at a Supermarket. Your data will be forwarded from the EDC machine to Mastercard for authorization. If the data is correct, it will then be forwarded to Honest. If your limit in the Honest credit card application is sufficient, the transaction will be approved. With current technological advancements, the payment process described above only takes a few seconds.

Advantages of Using Mastercard

1. Can be used worldwide

The main advantage of Mastercard is that cards with this logo can be used worldwide. According to the company's Chief Product Officer (CPO), Craig Vosburg, Mastercard can now be used at 110 million merchants in 210 countries worldwide (Payments Dive, 2023). This means you can shop anywhere, anytime, as long as you have a balance or limit on this card.

Honest credit card offers a credit card with the Mastercard logo that you can use worldwide. With a large limit of up to 100 million rupiah, you no longer need to worry about balances and limits. Just swipe, tap, and enter your Honest credit card data for shopping, and the transaction will be completed in a few seconds. This transaction data will then enter the Honest App, so you can monitor and limit its use.

2. Can be used for various needs

From buying plane tickets and hotels to paying PLN electricity bills, Mastercard-branded cards are ready to be used anytime and anywhere. All you need to do is enter your card details, either by tapping, swiping, or entering the card number online.

3. Can be used online and offline

The third advantage of Mastercard is that it can be used for online shopping and offline. For offline transactions, you simply swipe or tap the card on an EDC machine to process the transaction.

As for online transactions, such as Netflix or Spotify subscriptions, you just need to enter your card data as a payment method. This differs from cards with the GPN logo, which generally cannot be used for these transactions.

Mastercard offers credit cards with unlimited flexibility. Utilize this card for daily shopping needs both domestically and abroad wisely with the Honest credit card and Honest App.