| In 1966 a group of California banks formed a
group called The Interbank Card Association to create Master
Charge, a competitor to BankAmericard (now Visa). The name was
changed to MasterCard in 1979. In 2006 it became a publicly
traded company. It processed more than 16 billion transactions
in 2006. MasterCard does not issue credit cards, set credit
limits or APRs, or make loans to it's cardholders. Instead these
things are done by the banks, credit unions and other financial
institutions that are their clients. Instead it operates the
network over which MasterCard branded transactions occur and
makes it's revenue from fees paid by financial institutions for
processing these transactions as well as other related services.
Our Assessment:
With their wide acceptance, range of offers
and types and overall customer protections. we feel that
MasterCard Cards are a valuable addition to your purse or
wallet. MasterCard Cards are highly recommended but remember
that your relationship is with the issuing bank, credit union or
other financial institution, not with MasterCard itself, so take
the time to check each bank's offerings to make sure you get the
best match for your needs. |
