MasterCard Sets Issuer Standards

MasterCard International has announced a series of enhancements to its multinational card program to address long-standing complaints about its lack of genuine global integration between issuing banks. The improvements include the definition of minimum data provision standards for issuers as well as a single point of contact for multinational clients. MasterCard last week also announced the first alliance of European banks to deliver a unified MasterCard program and its plans to launch a lodging card.

MasterCard has established a common data format file which must be used by all issuers involved in the corporate program. The minimum report requirements include amount spent and merchant name, address and category code. Senior vice president of corporate payment solutions Steve Abrams said many issuers are able to provide substantial additional line information, such as travel agency, date of departure and arrival and what legs were included in an air trip.

MasterCard has had a multinational program since 1999, with General Motors ranking among its clients. Some issuers, such as GE Capital, can satisfy their clients' needs in multiple markets, while others form ad hoc alliances to meet the demand for international coverage. MasterCard decided this approach is not good enough. "What we found over time was there were too many inconsistencies in the program," Abrams told BTN last week in Stockholm. These inconsistencies included variable data standards as well as lack of consistency in products and services, such as insurance coverage, authorization capabilities and customer service levels.

MasterCard responded by forming a consortium of banks to map out the problems and define minimum standards. "We recognized work had to be done," Abrams said. "We haven't solved all the problems but we have gone a long way." He said customers can see spending data online within 48 hours. MasterCard is establishing a Web site that includes features such as legal information and a template for request for proposals acceptances.

"Our level of detail is on a par with Visa in the United States," Abrams said. "In Europe, we have good data on the air side and we are just getting started on hotels."

The new MasterCard corporate alliance is between the Royal Bank of Scotland, Société Générale of France and the Scandinavian bank Nordea. Abrams said the alliance likely will partner with U.S. issuers. Meanwhile, GE Capital announced partnerships with Guangdong Development Bank of China and a bank in Taiwan.