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March, 2009

Backgrounder: Debit in Canada

Toronto -- MasterCard Canada is preparing to expand its global debit processing system to Canada where it would deliver compelling benefits to Canadian consumers and merchants.

MasterCard Worldwide offers a leading PIN-based debit payment solution under the Maestro® brand name to more than 652 million cardholders in over 100 countries. The payment process works the same as the Canadian domestic debit system: PIN-based authorization, and direct withdrawal from the cardholder’s account.

The benefits of switching to a global debit infrastructure are many. For Canadian consumers, it means that they can finally shop with debit in countries all over the world and with the same confidence they have using MasterCard’s global credit payment system. For Canadian merchants, the Maestro debit system means they can accept international travelers’ debit cards and MasterCard will provide technological advancements including greater security protections, payment innovations like PayPass™ contactless payment, e-commerce payment capacity, and eventually mobile payments.

MasterCard operates a global debit infrastructure with centralized operations that run 24/7. The system delivers significantly greater scale than Canada’s incumbent debit network. In fact, the MasterCard network has had zero downtime in more than seven years. The system co-processes at three distinct sites for flawless execution and can scale up to 32 times its average peak capacity.

“Right now, Canada is a debit island with consumers and merchants unable to connect globally. In 2009, it is an anomaly for Canada to remain isolated in this fashion,” said Kevin Stanton, President, MasterCard Canada. “MasterCard’s debit offering will be well-priced, technologically unparalleled, and globally connected. This will provide significant improvements for both Canadian merchants and consumers while the payment experience at the point-of-purchase remains unchanged.”

Introducing Competition to a Monopoly Market
By bringing a global, innovative debit product to Canada, MasterCard will create competition in the Canadian debit market. Currently Canadian consumers and merchants have been at a distinct debit disadvantage by using a system without global operability and with the benefits of competitive pressures that lead to progress and innovation, including in fraud protection.

Introducing Maestro to Canada
MasterCard has a pre-existing global debit network that can handle the processing of Canadian debit payments. A Canadian merchant’s point-of-sale equipment and the cardholder’s card-issuing institution can be connected to the network so that debit transaction information can be exchanged.

A consumer’s debit card would be updated to be compatible with the network while retaining all its existing functions -- like connecting with the Interac network, connecting with the ATM system, etc.

About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.

For more information, please contact:
Jennifer Reed
MasterCard Canada
416-365-6664 / jennifer_reed@mastercard.com





			March, 2009 Backgrounder: Debit in Canada Toronto -- MasterCard Canada is preparing to expand its global debit processing system to Canada where it would deliver compelling benefits to Canadian consumers and merchants. MasterCard Worldwide offers a leading PIN-based debit payment solution under the Maestro® brand name to more than 652 million cardholders in over 100 countries. The payment process works the same as the Canadian domestic debit system: PIN-based authorization, and direct withdrawal from the cardholder’s account. The benefits of switching to a global debit infrastructure are many. For Canadian consumers, it means that they can finally shop with debit in countries all over the world and with the same confidence they have using MasterCard’s global credit payment system. For Canadian merchants, the Maestro debit system means they can accept international travelers’ debit cards and MasterCard will provide technological advancements including greater security protections, payment innovations like PayPass™ contactless payment, e-commerce payment capacity, and eventually mobile payments. MasterCard operates a global debit infrastructure with centralized operations that run 24/7. The system delivers significantly greater scale than Canada’s incumbent debit network. In fact, the MasterCard network has had zero downtime in more than seven years. The system co-processes at three distinct sites for flawless execution and can scale up to 32 times its average peak capacity. “Right now, Canada is a debit island with consumers and merchants unable to connect globally. In 2009, it is an anomaly for Canada to remain isolated in this fashion,” said Kevin Stanton, President, MasterCard Canada. “MasterCard’s debit offering will be well-priced, technologically unparalleled, and globally connected. This will provide significant improvements for both Canadian merchants and consumers while the payment experience at the point-of-purchase remains unchanged.” Introducing Competition to a Monopoly Market By bringing a global, innovative debit product to Canada, MasterCard will create competition in the Canadian debit market. Currently Canadian consumers and merchants have been at a distinct debit disadvantage by using a system without global operability and with the benefits of competitive pressures that lead to progress and innovation, including in fraud protection. Introducing Maestro to Canada MasterCard has a pre-existing global debit network that can handle the processing of Canadian debit payments. A Canadian merchant’s point-of-sale equipment and the cardholder’s card-issuing institution can be connected to the network so that debit transaction information can be exchanged. A consumer’s debit card would be updated to be compatible with the network while retaining all its existing functions -- like connecting with the Interac network, connecting with the ATM system, etc. About MasterCard Worldwide MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com. For more information, please contact: Jennifer Reed MasterCard Canada 416-365-6664 / jennifer_reed@mastercard.com
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		© MasterCard Canada 2009