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Financial Network Credit Card Master

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Financial Network Credit Card Master Powered By Docstoc
A Guide to understAndinG
PAyment CArds

Also CovErEd
A Behind the Scenes   Your Credit Rating:   Tips for Avoiding
Look at the Payment   Get the Big Picture   Fakes and Frauds
This brochure and its contents are provided for information purposes only and MasterCard makes no representations or
  warranties as to its accuracy or applicability with respect to specific card programs. Please refer to your cardholder
         agreement and card program terms and conditions, or call your issuer, for more specific information.

A NEW PLATFORM              PAGE   17

Whether purchasing a home, dining in a restaurant or managing emergency
expenses, sometimes we just need convenient access to additional funds
beyond what is in our bank account. There are moments in our lives when we
need access to credit.

Credit is an agreement between a lending organization (a bank, retail shop or a
credit card company) and a borrower (you, the consumer). This agreement pro-
vides you with access to additional funds either through your bank or on a credit
card that you can repay at a later date. The terms of repayment, including interest
charges and timeline, are established when you negotiate credit.

The various types of credit available to you are determined by your needs,
your financial situation and the lending partner you choose.

    Personal loans are a common form of credit offered by many financial institutions. A
    personal loan can make big ticket items like a house, a new car or even an RRSP
    investment, a reality. Loans come in a lump sum and are usually paid back in sched-
    uled installments as agreed upon by you and the financial institution. Most personal
    loans need to be secured. Banks rely on collateral — an asset of value, such as a
    home or a car, to guarantee the loan. If the borrower defaults on the repayment of
    the loan, the financial institution has the option to claim the predetermined collateral.

    A personal line of credit is similar to a loan — its money borrowed for large purchas-
    es, expenses or daily needs. Unlike a personal loan, the money is readily available
    to the borrower to draw from on an as needed basis. Interest is charged only on the
    amount of money used, not available. Once the used portion is paid off, the interest
    charges stop.

    Credit cards can be issued by banks, retailers, gas stations and other financial
    institutions. Similar to a line of credit, a credit card makes a set amount of funds
    available for use when and where it’s needed. Credit cards are unsecured loans and
    users do not have to offer collateral. For most people, credit cards are the most
    popular and most flexible source of credit.

    Unlike other types of credit, credit cards can be used to make purchases in person,
    by phone, by mail and online. Cardholders can pay the balance generated in whole
    or in part, and interest is accrued on balances carried month to month.

    In essence, your credit card is a series of small unsecured loans.

            exchange: A Guide to understanding
            Payment Cards is intended to help you
             better understand and manage your
           personal finances by providing insight into
                    how credit cards work.

                            THE PAYMENT PATHWAY

Ever wonder what happens “behind the scenes”                 cardholder’s payment card issuer and will transfer
when you make a purchase with your payment                   that amount to the merchant. To establish card
card? Whether you’re buying a new television or a            acceptance in their business and to offset the cost
loaf of bread, the process is always the same. We            of managing the payment system, merchants pay
call it the anatomy of a transaction. Here’s how it          a Merchant Discount Rate (see next section) for
works:                                                       each credit and debit card transaction.

MERCHANT                                                     CARD ASSOCIATION
When you make a purchase with your payment                   MasterCard operates a sophisticated and secure
card, the merchant swipes the card and enters the            global network that handles more than 20 billion
purchase information into a point-of-sale (POS)              transactions annually. MasterCard’s network con-
terminal. Point-of-sale terminals are provided by            nects acquirers with their merchant customers and
the merchant’s acquiring financial institution (the          cardholders with their MasterCard issuers.
“acquirer”) — also referred to as the payment
                                                             CARDHOLDER’S CREDIT CARD
ACQUIRER                                                     ISSUER
                                                             The organization (bank, retailer, etc.) that provided
The merchant’s payment terminal is connected to
                                                             your credit card is your issuer. Your issuer defines
the network of the acquirer which is connected to
                                                             the features and terms of your card, and handles
the payment network of the payment organization
                                                             the billing of your transactions. When you make
(such as MasterCard). The details of the transac-
                                                             a purchase with your credit card, the issuer is
tions are transmitted across the network(s) in order
                                                             contacted by the acquirer, verifies the transac-
to confirm the validity of the card and the availabil-
                                                             tion information against its records and provides
ity of the funds to cover the purchase.
                                                             confirmation that the funds are available. It is up to
                                                             the issuer to flag a problem, like insufficient funds
The merchant will receive an authentication
                                                             or a refusal of the transaction if the card has been
approval and in turn, will provide the goods or
                                                             reported stolen.
services you are purchasing.
                                                             This entire process occurs in only a few seconds
In a separate process, the merchant’s acquirer
                                                             every time you pay with your credit card.
will obtain the amount of the purchase from the

MasterCard transactions occur in a four-party system that consists of:
CArdHoLders          The consumer
issuers              The organizations that issue payment cards
merCHAnts            Businesses and retailers
ACQuirers            Often referred to as payment processors, acquirers are the companies that provide card
                     acceptance services to merchants and acquire from merchants the data related to a transaction

                                               1        Cardholder presents
                                                                 credit card

4      Product or service is
                  provided                                                                       2                  Merchant queries
                                                                                                               credit card validity and
                                                                                                                       fund availability

                  Merchant                                                                          Merchant

     Merchant’s Financial                                                                          Merchant’s Financial
    Institution or Processor                                                                      Institution or Processor

                      Global Payment Network                                        Global Payment Network

                                                     Cardholder’s Financial

                                               3    Issuer confirms credit card
                                                   validity and fund availability
                                                                                           issuer bills cardholder
Today, there is a wide range of credit cards available to Canadians. Each credit
card offers different programs, options and benefits. Here are some criteria to
consider when choosing a credit card:

Annual credit card fees can range from $0 to more than $250. Different fees can
mean different terms and benefits to the consumer. Be sure to ask about the spe-
cific fees before you sign up for a new credit card.

This is the interest you pay on unpaid balances each year. If you think you’ll be
carrying a balance every month, consider a low-rate credit card. An APR can
change over time – some credit card companies offer promotional or introductory
rates. In addition, some credit cards charge different rates depending on the type
of transaction. You may pay a different interest rate for a cash advance than you
would for a balance transfer. Be sure you know the terms and conditions of your
interest rates before you carry a balance on your credit card.

Look for other fees you might be charged. Examples include:

•   Penalties if you exceed your credit limit or a payment is dishonoured.
•   Charges for services like cash advances inside or outside of Canada.
•   Currency conversion charges.
•   Charges for the use of convenience cheques – this is often treated like a
    cash advance.
•   Charges for additional cards for other family members.
•   Inactive account charges.
•   Reprinting a statement or making a copy of a transaction record.

The grace period is a predetermined time period during which you are not
charged interest on new purchases. The grace period is the number of days
between the statement date and the payment due date. It generally ranges from
15 to 26 days. Speak to your credit card company to confirm the timing and the
details of the grace period on your card.

Some credit cards offer a range of rewards, benefits and bonuses. Do your re-
search to find out which loyalty or rewards program is best suited to you. Be sure
to explore any associated fees with a loyalty program prior to signing up for the
card. Credit card perks and benefits can include:

•   Rewards programs – points or miles which can be accumulated and
    redeemed for various airlines and incentive programs
•   24 hour ATM cash access
•   24 hour call centre help
•   Purchase protection
•   Extended warranties on purchases
•   Car rental insurance
•   Medical / travel insurance
•   Legal referral services
•   Roadside assistance
•   Concierge services


Most credit cards come with a limit on the total available funds a cardholder is
allowed to borrow each month. Credit limits are based on a number of criteria,

• The type of credit card: While standard credit cards may offer credit limits
  between $500 and $5,000, some premium credit cards have higher limits
  (e.g. $25,000 or more).

• Cardholder’s credit card habits: Frequent credit card use and maintaining
  a good standing, i.e. paying at least the minimum amount each month,
  could make you eligible for a higher credit limit.

• Cardholder’s credit rating and history: Regular bank deposits (that show
  you can save as well as spend), bills in your name that are paid in full on
  time, and a well-managed credit history all contribute to a positive credit
  rating which can be rewarded with a higher credit limit.

Typically, a cardholder who has demonstrated good credit card behaviour will be
rewarded with higher credit limits. Cardholders can also contact their credit card
issuer to request a higher credit limit or reduce their available credit. The issuer
can approve or reject the request based on the cardholder’s credit history and

Interest charges work quite simply. If you pay the full balance owing on your credit card
statement by the payment due date each month, you do not have to pay interest. It’s like
getting an interest-free loan every month.

However, if the balance is not paid in full by the due date, the credit card issuer will charge
interest on the remaining unpaid amount, as outlined in your credit card statement.

Interest charges vary depending on the type of transaction: a new purchase, previous
purchase, cash advance or a balance transfer:

•   Purchases that appear on your monthly statement for the first time.
•   They can be interest-free under certain conditions.

•   Purchases that have already appeared on a previous statement and were not
    paid in full.
•   Interest is charged from the date these purchases were made until they
    are paid in full.

•   When obtaining a cash advance from your credit card issuer, or transfer ring a
    balance from one credit card to another, interest is calculated from the date the
    cash advance or balance transfer was made.
•   Typically, there is no interest-free period on these transactions.

There is a simple three step calculation to determine how much interest you pay.

•   First, the daily interest rate is calculated by dividing the annual rate
    (e.g. 12 per cent) by the number of days in a year (365) = 0.03288 per cent.
•   Next, to calculate the daily interest amount, multiply the daily interest rate
    (0.03288 per cent) by the full balance owing (e.g. $1,000) = $0.33
•   Finally, the total interest amount is calculated by multiplying the daily interest
    amount (e.g. $0.33) by the number of days since the purchase (e.g. 25) = $8.22.

                                 PROTECTING YOUR CARD

                                          MASTERCARD ZERO LIABILITY

         Credit cards are much safer to use than cash and cheques. But, their spending power makes
         credit cards a logical target for pickpockets, scam artists and fraudsters. Minimize your risk of
         becoming a victim by taking the necessary steps to keep your credit card safe and secure.

         Most credit cards offer some level of liability protection. For example, as a MasterCard cardholder,
         you’re not liable for any fraud losses on your account. With MasterCard’s zero Liability you can
         have peace of mind knowing you won’t be responsible for unauthorized purchases made in a
         store, over the phone or online.* If you suspect unauthorized activity on your MasterCard account,
         stop using your card and contact your card issuer immediately. Read more about MasterCard
         Zero Liability at:

* zero Liability is provided under the following circumstances: cardholder’s account is in good standing; cardholder has exercised reasonable care
in safeguarding their card; and has not reported two or more unauthorized events in the past 12 months.
                        SECURITY SYSTEMS PROTECT
                           YOU AND YOUR CARD

Offering protection from unauthorized               Further, MasterCard uses sophisticated
charges is only one way credit card                 technology to detect unusual activity on
companies protect cardholders. More im-             accounts. For example, if you normally use
portantly, they employ a variety of security        your credit card to make a few purchases
measures to safeguard the cardholders’              a month in stores and restaurants in your
information.                                        home town and suddenly there is an out of
                                                    character purchase of electronic equip-
MasterCard fights fraud on two major                ment in another country, the system may
fronts: security features built into your           immediately flag the account and launch
credit card itself and security systems that        an investigation.
work on the network that process transac-
tions.                                              If you know you will be using your Master-
                                                    Card in an atypical way (during a rare trip
MasterCard credit cards contain a number            overseas or on an unusually costly item),
of security elements. The front of the card         consider notifying your card issuer in ad-
features a special hologram that makes it           vance. And if you receive a call from your
difficult to reproduce a fake card. On the          issuer asking about a questionable pur-
back signature panel, the Card Validation           chase pattern, take comfort in knowing it’s
Code (CVC) provides additional proof of             part of the service provided to ensure your
authenticity for online and phone orders.           card is being used safely and legitimately.
For added protection against identity
theft, some credit card issuers also offer
photocards – credit cards that feature the
cardholder’s picture on the front of the

But even more security activity occurs
behind the scenes. Authorization checks
and balances move back and forth be-
tween acquirers and card issuers. In addi-
tion, a whole suite of security processes is
applied specifically to online purchases.

                                              ONLINE SHOPPING
              Shopping online is a convenient and easy way to make purchases. However, there are a
              few things you should look for when shopping online:

              • Privacy policies: Responsible online retailers will post their privacy policies clearly
                on their Web sites. Reputable retailers allow you to choose if and how your personal
                information is used (e.g. e-mails with information on future sales, retailer flyers,
                newsletters, etc).

              • Retailer information: Is the retailer’s contact information easy to find on the site?
                A telephone number, a physical address, a help desk – this information will help you
                find answers to questions you might have before and after the sale.

              • During the transaction, look for:
                • Delivery date: Find out when the item will be delivered.
                • Shipping costs and taxes: If the transaction is international, there may be
                   taxes / duties that will be added to the total cost of the item.

               • Security features to look for:

                 •   Most online retailers use 128-bit encryption – the highest level of security
                     currently available and nearly impossible to break.
                 •   On the bottom right hand corner of your screen, look for a gold-coloured
                     lock symbol – this means the retailer is using 128-bit encryption.


MasterCard SecureCode is an added security feature available from MasterCard
to protect your activity when making online purchases. Much like the familiar au-
thentication process required for payment card use at Automated Bank Machines
(ABMs), MasterCard SecureCode is initiated on a retailer’s Web site and interacts
with both the cardholder and their card issuer. When a consumer is ready to com-
plete an online purchase, an in-line window appears asking them to enter a unique,
personal code that has been registered with their card issuer. The MasterCard is-
suer then authenticates the cardholder and provides the electronic retailer evidence
of the online purchase.
With this simple step, cardholders can be confident their account is protected, and
card issuers and retailers gain greater assurance about the identity of the person
completing the transaction.
In Canada, over 2,000 Internet merchants are part of the MasterCard
SecureCode Global Program.
For more information about MasterCard SecureCode, please visit

Identity theft is often confused with the theft of a credit card. While any form of theft is serious,
including that of a stolen credit card, identity theft goes beyond the taking of a single personal
item or piece of information.

Identity theft is: stealing personal information (such as a name or social insurance number)
and/or financial information to be used to obtain other personal information, assume an iden-
tity, and ultimately, commit fraud.

The thief uses the information to establish a variety of accounts and services – including bank
accounts, credit cards, loans and purchases – all in your name but for his or her use. In other
words, this person tries to assume your identity. Without your knowledge, you can incur ad-
ditional debt in your name, seriously damage your credit rating, and even become associated
with criminal charges.

Signs that you may be a victim of identity theft include:

• A creditor confirms receipt of a credit application with your name and address on it that you
  never applied for;
• A creditor informs you that you’ve been approved or denied for a loan that you never
  applied for;
• You receive unaccounted for financial statements in your name;
• You notice missing mail, account statements or bills;
• A collection agency contacts you regarding over due accounts in your name that you did
  not open.

If you suspect that you may be a victim of identity theft, take the following steps:

• Contact your financial institution immediately and report the activity;
• Contact the police;
• Report it to Phonebusters at 1-877-495-8501,;
• Get in touch with the fraud departments of two national credit bureaus to determine if your
  credit rating has been impacted by the fraudulent activity, Equifax at 1-800-465-7166, and TransUnion at 1-866-525-0262,;
• Keep a record of who you spoke with (creditors, etc.), including what was said and when;
• Contact any creditors who have contacted you and speak with their fraud department (this
  can include banks, phone companies, etc.).


Your overall financial picture can change due to a           YOUR CREDIT RATING
variety of financing arrangements you have, even
though they may not always appear related. But               One of the keys to understanding your overall finan-
lenders see these arrangements differently. They see         cial picture is to manage your credit rating. When you
your whole credit picture even if you don’t — and the        begin to actively manage your credit rating, you will
centre of this picture is your credit report.                become better prepared to ask for the credit you may
                                                             need in the future.
When you apply for any kind of credit, lenders and
credit issuers can see all of the debt you are currently     A credit rating is a third party evaluation of your credit
carrying, an overview of your credit history and credit      history and an overall credit score. Credit reporting
rating. There are many contributors to the credit re-        agencies like Equifax ( or TransUnion
porting system, such as bill payment activity (retailers,    ( consider: overall, how much credit
your telephone company, utility costs) or any time you       you have and are you managing your credit and
move money (deposits or withdrawals with your bank           payments. With your permission, lenders will access
account, lease payments). Lenders have access to all         your credit rating from these credit reporting agencies
of your payment habits.                                      before providing any further credit. Both Equifax and
                                                             TransUnion will mail you a copy of your credit report
WHAT SHOULD YOU DO?                                          free of charge, or you can choose to pay a fee to
                                                             view it immediately online.
You should try to understand your whole financial
picture like lenders do. When you know your credit           It’s important to check the accuracy of your credit re-
position, you’re more likely to know what your actual        port. If you notice anything wrong, it may be caused
borrowing potential is and it may help you make more         by human error, it may be out of date or you may
effective borrowing decisions. If you don’t understand       have forgotten about an outstanding debt. A serious
your credit position, you could be denied credit when        error can result in being turned down for credit or be-
you need it and you could be paying more interest            ing charged higher interest rates, so it’s a good idea
than necessary.                                              to be familiar with your credit rating.

                                                             To learn more about understanding your overall
                                                             financial picture and access an interactive tool which
                                                             can help you learn how to reduce debt, improve your
                                                             credit rating, and manage credit well, visit the Master-
                                                             Card Canada’s Credit Education site at


When you obtain a new credit card, you also receive a detailed Cardholder Agree-
ment. This agreement is your contract with your card issuer. When you activate your
card, you accept the terms of the Agreement.

The Cardholder Agreement will provide details on how APR (annual percentage rate)
will be calculated; interest-free periods; grace periods; fees; partial payment; curren-
cy conversion fees; interest rate changes; minimum payments; payment due dates;
and benefit programs such as rewards points and redemption. The agreement will
also explain how you will be billed for purchases. Your agreement also explains how
you are protected in cases of unauthorized purchases or fraud.

Your issuer may also send you updates to notify you of changes to your card. It
is important to sit down and carefully review your cardholder agreement and any
amendments you receive – including the fine print – in order to understand the terms
of your cardholder agreement.

MasterCard and the financial institutions that participate in the MasterCard system
are bound by strict rules and guidelines to protect the privacy of your information.

                           PAYMENT INNOVATIONS

While you may not notice it day-to-day, credit              Contactless payment cards feature an embedded
cards are continually evolving and improving to             computer chip and radio frequency antennae.
make purchases safer and more convenient for                After cardholders tap their card on the payment
you. Changes are also taking place to where and             terminal, the card securely transmits payment
how we can use our credit cards, as consumers               details wirelessly. Account details are communi-
increasingly want the option to use them in places          cated directly to the special reader and are then
where they have not traditionally been accepted.            processed through MasterCard’s highly trusted
Companies like MasterCard are making credit                 acceptance network in the normal manner. Mo-
cards a practical payment choice in locations               ments after consumers tap the reader with their
where speed is of the utmost importance, like fast          card they receive payment confirmation and are
food restaurants or drive through services. Credit          on their way.
card payments are becoming easier and faster
than using cash.                                            MasterCard PayPass is ideal for traditional cash-
                                                            heavy environments where speed is essential.
MASTERCARD PayPass™                                         PayPass has led the market in bringing contact-
                                                            less technology to consumer merchant categories
MasterCard PayPass is a contactless payment                 such as quick serve restaurants, drug stores, gas
technology that provides consumers with a quick             stations, vending machines, convenience stores,
and convenient alternative to cash for their every-         sports arenas, movie theatres, transit systems and
day purchases, without the hassle of fumbling for           parking garages.
cash or handing a card over to the cashier. Partici-
pating cardholders simply tap their PayPass-en-             Gaining wide acceptance around the world,
abled MasterCard card, key fob or even a mobile             there are 13 million PayPass cards and devices
phone on a specially-equipped payment terminal              in the market, and PayPass is accepted at nearly
to complete the transaction. That’s it.                     50,000 convenience-focused merchant locations
                                                            in 13 countries including Petro-Canada, Cineplex
                                                            Entertainment and Rabba Foods in Canada and
                                                            7-Eleven, McDonald’s, Subway, CVS, and Regal
                                                            Entertainment locations in the U.S. PayPass is
                                                            also accepted in many Major League Baseball and
                                                            National Football League stadiums, as well as at
                                                            numerous golf events. For more information about
                                                            MasterCard PayPass and a full list of participating
                                                            merchants, visit

What is QPS? QPS (Quick Payment Service) is a program that allows a merchant to process a Mas-
terCard credit card transaction without requiring a signature or receipt (although a receipt is always
available as an option if the customer requests it). The cardholder hands over his or her card (except, of
course, if the cardholder is using PayPass). The merchant swipes it and returns it. That’s it. Transaction
complete. And in fewer steps than it takes to process any other payment type, including cash.

Benefits of QPS include increased payment flexibility as you can now use your credit card and not rely
on the cash in your pocket; less time spent standing in line as checkout traffic moves faster; and an
overall enhanced experience.

Prepaid programs are powerful solutions for carrying value and facilitating spending with greater se-
curity than cash or cheques. With prepaid cards, you put aside a set amount of funds in advance and
purchases are automatically deducted from your card balance.

Prepaid cards are a smart alternative to carrying cash or traveler’s cheques because they are easily re-
loadable and can be used to make purchases or cash withdrawals from any Automated Bank Machine.
And, they carry the same safety and security features as a regular MasterCard card.

If you’re considering a prepaid card, consider the following:

•   Programs can vary significantly, so make sure you read the terms of the prepaid offer in full
    before committing to anything.

•   Be aware of the fee structure so you’re not caught by surprise.

•   Understand any minimum or maximum value load requirements.

•   Know where the card is accepted and when you’ll need alternative forms of payment.

                        A NEW PLATFORM

In the future, instead of swiping a card that has a magnetic stripe on the back, you will “dip” a
card that has a computer chip embedded on the front. Instead of signing to verify a payment,
you will enter a private Personal Identification number (PIn).

The way you complete a transaction with your credit card will change but the card will con-
tinue to function as a normal credit card with all of the same features and protections you now

The capability and capacity of the chip is significantly greater and more powerful than mag-
netic stripe technology found on today’s cards. Chip cards have the capacity to store more
information, and therefore the capability to implement sophisticated payment applications and
customized programs.

MasterCard is advancing the Canadian market with all 12 active MasterCard issuers and the
leading acquiring financial institutions introducing chip cards starting in 2007/2008 and with
critical mass of cards and card accepting payment devices in market by 2010.

MasterCard Canada’s website has a section devoted entirely to chip.
contains information for both card issuers and merchants on what they need to know about
chip in Canada, including MasterCard’s approach, the status of chip in Canada, preparing to
accept chip cards for merchants, and the latest news and announcements.
                                    CHIP DEFINED

CAP (Chip Authentication Program) is a natural           onesmart™ is MasterCard’s suite of chip
extension to an EMV chip infrastructure,                 solutions for issuing banks, merchants and
enabling members to leverage their existing              consumers. OneSmart uses chip technology
investment to address the issue of payment               to deliver highly secure, more customized and
security and convenience across different virtual        better differentiated card programs.
payment channels. CAP can turn a Card not
Present (CNP) transaction into a Card Pres-              PayPass™ is a payment feature that can be
ent Transaction, reducing chargeback costs               added to any MasterCard payment account to
and fraud due to CNP, and has the potential              enable payments with a simple tap. PayPass
to significantly increase card payment volumes           is flexible enough that it can be built into cards
from e-commerce and services offered through             or other devices such as key fobs or mobile
secure remote banking.                                   phones, and can be used in markets that pri-
                                                         marily issue smart cards or those that primarily
Chip card refers to the embedded microchip               issue magnetic stripe cards.
in payment cards (embedded cards are also
known as smart cards). Chip-enabled cards                PIN stands for Personal Identification num-
work in a similar fashion to traditional payment         ber, and is the four-to-six digit security code
cards but have the capacity to store a much              cardholders are asked to enter into a keypad
larger amount of secure information. Upgrading           at the point-of-sale terminal when they make a
to chip is like trading your walkman for an MP3          purchase. The PIn is one of many advantages
player.                                                  with the chip platform upgrade.

Chip migration refers to the move toward                 Pos is an acronym for Point-of-Sale. This can
chip-based cards. Chip is already in use in many         mean a checkout counter in a shop or a mobile
parts of the world including Europe and the              location where a financial transaction occurs i.e.
Asia-Pacific region.                                     paying the pizza delivery person via a wireless
                                                         payment terminal.
EMv is an acronym for “Europay MasterCard
Visa” and is the global technology standard for          Pos terminal stands for the device merchants
chip-based payment cards to replace existing             use to process financial transactions.
magnetic stripe cards.
                                                         smart cards refer to cards embedded with a
Magnetic stripe is the card technology that              single or multi-application chip. Also sometimes
carries data on an electromagnetic band.                 referred to as “chip cards.”

M/Chip™ is MasterCard’s payment applica-
tion that combines the functions of ATM, credit,
debit, and Cirrus on one payment card, giving
merchants, acquirers, and issuers everything
they need to migrate to and manage chip-based
programs. M/Chip is at the core of MasterCard’s
smart card strategy and represents the latest
generation of EMV payment applications.

                  AT THE HEART OF COMMERCE™

In 2006, MasterCard Worldwide introduced its new                  MasterCard Worldwide is a driving force at the heart
corporate tagline: The Heart of Commerce™. The                    of commerce, enabling global transactions and
new corporate brand reflects MasterCard’s globally                bringing insight into the payments process to make
integrated structure and strategic vision of advanc-              commerce faster, more secure and more valuable to
ing commerce worldwide. It’s also representative                  everyone involved.
of the unique insights that MasterCard leverages to
deliver business value to its customers, merchants,               • With more than 800 million MasterCard payment
consumers and shareholders.                                         cards issued, MasterCard serves as a critical
                                                                    link among financial institutions and millions of
While the familiar interlocking circles that symbolize              businesses, cardholders and merchants
MasterCard to consumers continues to appear on                      worldwide.
MasterCard-branded cards and at merchant accep-
tance locations, a new corporate logo for Master-                 • MasterCard provides services in more than 210
Card Worldwide incorporates a third circle into the                 countries and territories, and is a partner to
design to better reflect the company’s evolution as a               25,000 of the world’s leading financial institutions.
franchisor, processor and advisor.
                                                                  • MasterCard has 5,000 employees working in more
                                                                    than 37 offices around the world. The corporate
                                                                    headquarters are in Purchase, New York, with
                                                                    technology operations located outside of
                                                                    St. Louis, Missouri. Regional headquarters include
                                                                    Dubai, United Arab Emirates; Miami, Florida;
                                                                    Waterloo, Belgium; and Singapore.

                                                                  • MasterCard has processed as many as 40 million
                                                                    card authorizations and settled as much as $10
                                                                    billion on a single day, enabling consumers to
                                                                    make purchases instantly, anytime, almost any
                                                                    where, in both the virtual and real worlds.

                                                                  • The MasterCard award-winning Priceless®
                                                                    advertising campaign is now seen in more than
                                                                    100 countries and in nearly 50 languages,
                                                                    reflecting the global reach and strength of
The three circles build on the interlocking red and yellow
circles of the MasterCard consumer brand, and reflect the
                                                                  • MasterCard opens the door to commerce at an
company’s three-tiered business model as a franchisor,
                                                                    unsurpassed network of more than 25 million
processor and advisor.
                                                                    acceptance locations around the world and, in
                                                                    many cases, guarantees payment through its

                     CREDIT CARD TRIVIA
• More than 600 institutions in Canada issue credit cards.

• MasterCard is accepted at over 25 million locations worldwide.

• In 2006, there were more than 60 million major credit cards in circulation in Canada.

• MasterCard processes more than 20 billion transactions annually.

• Each year cardholders around the world use their MasterCard cards for transactions
  totaling almost $2 trillion.

• Major credit cards alone account for $215 billion in retail sales in Canada each year.

• The average credit card transaction value in Canada is $110.

Source: Canadian Bankers Association/ MasterCard Worldwide.
                      CONTACTS & RESOURCES

The Financial Consumer Agency of Canada (FCAC):

Customer Contact Centre (toll-free): 1–866–461–FCAC (3222)


• Phone Busters, the anti-fraud call centre supported by the RCMP and the government of Canada, at
  1-888-495-850 or
• Better Business Bureau at
• Canadian Bankers Association at
• Government of Canada at 1-800-O-CAnADA (622-6232) or

•   Canada Post at 1-800-267-1177 or
•   Human Resources Development Canada at 1-800-206-7218 or www.hrdc
•   Phonebusters (and the Competition Bureau) at 1-888-495-8501 or
•   Equifax Canada at 1-800-465-7166 or
•   TransUnion Canada (Fraud Victim Assistance Dept.) at 1-877-525-3823 or

• Emergency services in Canada call 1–800–MC–ASSIST
• TDD/TYY for the hearing impaired call 1–636–722–3725


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