What is a Mastercard? Types, Classification, and Benefits

This article explores what a Mastercard is, its various types, classification, and the benefits of using it. Understanding this international payment card will facilitate convenient and easy spending.

Mastercard has become one of the most widely used payment methods globally. Not only does it enable quick transactions, but it also offers numerous superior benefits. So, what exactly is a Mastercard, and what are its different types? Let's delve into the classifications and advantages of Mastercard with VPBank in this article!

1. What is a Mastercard?

A Mastercard is an international payment card issued by Mastercard Worldwide, a company headquartered in Purchase, New York, USA, in collaboration with commercial banks. You can identify this card by the Mastercard logo prominently displayed on its front.

As one of the most popular international payment cards, a Mastercard allows users to conduct convenient transactions both domestically and internationally. Currently, Mastercard is accepted in over 210 countries and territories, providing convenience for users anytime, anywhere. You can apply for a Mastercard at most major banks in Vietnam.

Understanding What a Mastercard Is

2. Classification of Mastercard Types

If you now understand what a Mastercard is, you should also know its different types. There are three main types of Mastercard: credit cards, prepaid cards, and debit cards. Each type is designed to serve different financial needs and spending habits:

2.1. Mastercard Debit Card

A Mastercard Debit Card is directly linked to your bank account. The amount you spend is deducted directly from your account balance. This card helps you control your finances and prevents you from spending more money than you have in your account.

Mastercard Debit Card

2.2. Mastercard Credit Card

A Mastercard Credit Card allows you to "spend first, pay later." The bank fronts the money for your transactions, and you are required to repay the amount by the due date. Many banks in Vietnam offer an interest-free period of up to 55 days. After this period, interest will be applied.

Your credit card limit varies based on your financial capability and card application profile. This card also comes with different tiers, such as Standard, Gold, and Platinum, each offering associated benefits and services.

Example: If your credit card limit is VND 30 million, you can spend up to VND 30 million without needing that amount in your account. However, you must fully repay the utilized amount by the due date.

2.3. Mastercard Prepaid Card

A Mastercard Prepaid Card is not linked to a bank account. You need to load funds onto the card beforehand and can only spend within the loaded amount. This card can be used for international payments, cash withdrawals, and other transactions, similar to a debit card.

A unique feature of prepaid cards is that they do not require a bank account to open, and you can hold multiple primary or supplementary cards simultaneously. This card helps protect your bank account and saves on transaction or maintenance fees.

3. How are Mastercard and Visa Similar and Different?

If you understand what a Mastercard is, you might notice its similarities to a Visa card. So, how are these two international payment cards alike and different?

3.1. Similarities

Both Mastercard and Visa are international payment cards that enable global transactions. They are both categorized into three main types: Credit Card, Debit Card, and Prepaid Card.

Similarities Between the Two International Payment Cards

3.2. Differences

Here's a comparison table highlighting the differences between Mastercard and Visa cards:

4. Benefits of Using a Mastercard

Once you understand what a Mastercard is, you should also be aware of the benefits it offers:

• Easy International Online Payments: When using international shopping applications, you can make quick and convenient payments with your Mastercard without any hassle.

• Attractive Promotions and Offers: Mastercard provides many appealing promotional programs, such as cashback on every transaction, discounts on shopping, or exclusive vouchers. These offers help you save significantly on costs.

• Convenient Foreign Currency Withdrawal Abroad: When traveling or on business trips overseas, you don't need to worry about exchanging foreign currency. Simply use your Mastercard to withdraw cash from ATMs displaying the Mastercard logo, making spending easier than ever.

• Absolute Safety and Security: Mastercard employs advanced security technology adhering to international standards, ensuring your information is absolutely secure. In case of a lost card, you just need to call your bank to block the account and protect your assets.

• Convenient Financial Reserve: When you don't have cash on hand, this card serves as a convenient backup, allowing you to make immediate payments without needing to borrow money.

Benefits and Offers of Using a Mastercard

5. Conditions, Documents, and Process for Opening a Mastercard

If you wish to use a Mastercard for international transactions, you need to comply with the following conditions and procedures:

5.1. Conditions and Documents for Card Opening

So, what are the conditions for opening a Mastercard? Here are some basic criteria you need to meet to apply for this card:

• Be a Vietnamese citizen or a foreigner residing in Vietnam with a need to use the card.

• Age: 15 years or older for debit or prepaid cards; 18 years or older for credit cards.

• Possess full civil act capacity and sound awareness as per Vietnamese law.

• Possess valid identification documents, including a valid National ID Card, Citizen ID Card, or Passport.

Basic Documents for Opening a Mastercard: When opening a card, you need to prepare the following documents:

• Valid National ID Card/Citizen ID Card or Passport.

• Household Registration Book or Temporary Residence Certificate.

• Labor Contract or Business Registration Certificate (if applicable).

• Salary Statement or Pay Slip (if applicable).

5.2. Card Opening Process

The process for applying and using a Mastercard is currently extremely simple and easy to follow. You can use two basic and common methods:

Convenient Mastercard Opening at Bank Counters For Mastercard types, you can open a card directly at bank counters as follows:

• Prepare Documents: Bring necessary documents (such as ID card, passport, household registration book) to the bank branch or transaction office where you wish to open the card.

• Fill in Information: Complete the bank's card application form and pay any required fees.

• Wait for Assessment: The bank will assess your information and schedule a date for you to pick up your card.

Note: For Mastercard Credit Cards, the assessment period might be slightly longer compared to other card types.

Online Mastercard Opening If you wish to open a card online, you need to follow these detailed steps:

• Step 1: Access Bank App: Log in to your bank's Mobile Banking or Internet Banking application.

• Step 2: Select Card Type: Find the "Cards" section and choose Mastercard.

• Step 3: Review Terms: Review the terms, limits, and fees to select the appropriate card, then click "Apply for Card Online."

• Step 4: Provide Information: Provide complete personal information and select your preferred method of card delivery. Then, confirm your application.

• Step 5: Bank Confirmation: The bank will contact you to confirm information, request additional documents if needed, and proceed with the card application review.

Quick Mastercard Application at Transaction Counters

6. Fees You Should Know When Using a Mastercard

When using a Mastercard, users will incur certain fees:

• Card Maintenance Fee: An annual fee to maintain the card. Some banks offer a waiver for the first year or if a certain transaction volume is met.

• ATM Withdrawal Fee: A fee incurred when withdrawing cash from an ATM, which may vary depending on the bank and withdrawal location (domestic or international).

• Foreign Currency Conversion Fee: A fee applied when conducting international transactions, ranging from 1% to 3% depending on the bank.

• Late Payment Fee (Credit Card): A fee applied for overdue payments, along with interest on the outstanding amount.

Fees Associated with Mastercard Usage

7. Open a VPBank Mastercard – Spend Freely, Enjoy Abundant Offers

Are you looking for a credit card that is both convenient and full of benefits? A VPBank Mastercard is an ideal choice, allowing you to spend freely without worrying about costs. With every transaction, the card brings attractive promotions from major brands, special discounts at shopping and dining venues, and exciting travel deals.

Not only does a VPBank Mastercard enable quick and secure payments, but it also ensures absolute security, protecting you from transaction risks. Experience it today to enjoy all the conveniences, enhance your quality of life, and unlock opportunities for offers everywhere!

Spend Freely, Enjoy Abundant Offers When You Open a VPBank Mastercard

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In summary, VPBank has helped you understand what a Mastercard is. With its diverse classifications and superior benefits, it is an ideal choice for anyone seeking convenience and security in their transactions. If you are looking for an international payment card, consider a Mastercard and choose the product that suits you best. For detailed consultation and to open a card, visit our website at www.vpbank.com.vn or call our hotline at 1900.54.54.15 today!