Mastercard Network

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MastercardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders.’s Payment Network: Mastercard Network (previously Banknet)

The Mastercard Network, formerly called Banknet, is Mastercard’s global, proprietary electronic payments network. It functions similarly to VisaNet, serving as the backbone for processing all Mastercard transactionsTransactions transactions Interactions where value is exchanged for goods or services.—authorizationAuthorization authorization The real-time process of verifying that a payment method has sufficient funds or credit limit for a transaction. Results in an authorization code from the issuer., clearingClearing clearing The exchange of financial information and instructions between acquirers and issuers to facilitate settlement., and settlementSettlement settlement The process of transferring funds from the issuer to the acquirer.—across credit, debit, and prepaid products.

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🧩 Core Functions

Function	Description
Authorization	Verifies transaction requests between merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services., acquirerAcquirer acquirer A financial institution or payment processor that manages the merchant account, enabling businesses to accept card payments. Acquirers receive all transactions from the merchant and route them to the appropriate issuing bank., issuerIssuer issuer A bank or financial institution that issues payment cards to consumers. Responsible for authorizations and chargebacks., and Mastercard.
Clearing	Reconciles and formats transaction data for settlement.
Settlement	Transfers funds between financial institutions (acquirer ↔ issuer).
Routing	Handles secure and efficient routing of transactions across 210+ countries.
Risk & FraudFraud fraud Criminal deception involving unauthorized payments or use of financial credentials. Detection	Integrates real-time monitoring, AI/ML-based fraud scoring, and chargebackChargeback chargeback A dispute raised by the cardholder that results in reversal of a transaction. Can lead to penalties for merchants. risk management.
Tokenization	Offers MDES (Mastercard Digital Enablement Service) for secure tokenized transactions.

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🌐 Global Reach

• Connects over 25,000 financial institutions
• Operates in 210+ countries and territories
• Supports 24/7 real-time transaction processing and settlements
• Manages billions of transactions annually

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💼 Built-In Services

Feature	Details
Mastercard MDES	Secure tokenization engine used in Apple Pay, Google Pay, etc.
Mastercard Decision Intelligence	Real-time fraud scoring engine using AI.
Mastercard Send & Cross-Border Services	Real-time domestic and international payouts for banks, fintechs, and remitters.
Mastercard GatewayGateway gateway A service that authorizes and processes card payments for online merchants. Examples include Stripe, Adyen, and PayPal. Services (MPGS)	A payment gateway stack offering acquiring, risk, routing, and reporting capabilities.

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🏗 Technology & Architecture

• Five global data centers (active-active redundancy)
• Ultra-low latencyLatency latency The delay between a payment initiation and its processing or confirmation. network optimized for speed, uptime, and global scalability
• Transitioning core services to cloud-native architecture for modularity and faster deployment

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🤝 Who Uses It?

• Issuers: To authorize and settle cardholderCardholder cardholder The person or business to whom a payment card is issued. payments
• Acquirers: To receive merchant payments
• Merchants: Indirectly benefit from speed, securitySecurity security Measures used to protect transaction data from fraud and cyber threats., and uptime
• Fintechs: Through APIs for tokenization, fraud tools, and payouts

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📊 Comparison to VisaNet

Feature	VisaNet	Mastercard Network (Banknet)
Brand Owner	VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks. Inc.	Mastercard Inc.
Tokenization Engine	Visa Token Service (VTS)	Mastercard Digital Enablement Service (MDES)
Fraud Tools	Visa Advanced Authorization	Decision Intelligence
Real-Time Payouts	Visa Direct	Mastercard Send
Gateway Offering	CyberSource	MPGS (Mastercard Payment Gateway Services)
Risk Infrastructure	Visa Risk Manager	Mastercard Brighterion AI & RiskRecon

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🔐 Regulatory & Security Standards

• PCI-DSS Compliant
• Supports EMVCo standards (3DS, tokenization, etc.)
• Enables multi-currency, multi-lingual, multi-region settlement and reconciliation

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🚀 Strategic Importance

Mastercard’s network is no longer just a payment rail—it’s a digital commerce infrastructure. Through acquisitions (e.g., Vocalink, Ethoca, Finicity), Mastercard has extended its capabilities into real-time account-based payments, open banking, and data monetization.

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