Mastercard

Mastercard offers secure international payment services. The transfer solution comprises credit, debit and prepaid cards that provide a convenient way to fund trading accounts. It is also one of the most widely recognized payment brands in the US, UK, Europe and beyond. This review will cover the Priceless rewards scheme, 3D secure features, account registration, chargebacks and more. Find out how to make deposits and withdrawals using Mastercard.

The top Mastercard brokers in 2024 include Pepperstone, AvaTrade and Plus500.

How Mastercard Works

History

The company has been pioneering technology to make payments smarter, simpler and safer since 1966. Mastercard originally offered customers specially-issued paper that could be used like cash at local banks. These were later replaced by physical cards, leading to the launch of the Interbank Card Association (ICA), which became Mastercard International.

Today, the company has an expansive network, connecting merchants with consumers via integrated data and digital services. The firm also has a global reach, offering fintech services in over 200 countries and accepting more than 150 currencies. Its headquarters are located in New York and it has regional head office locations in London and Miami, amongst others.

What Is It?

The purpose of the payment service is to connect and power an inclusive online economy through secure networks, partnerships and innovations. According to one of its latest annual reports, the CEO views the brand as a technology company sat within the traditional payments industry.

A standard Mastercard transaction involves several parties; the customer, the issuing bank, the merchant, the acquiring bank and the payment processor. This means that deposits to a swing trading account, for example, follow several steps:

• Trader uses a Mastercard debit/credit/prepaid card to request a payment
• Broker accepts or rejects the payment for processing
• Issuing bank notifies the acquiring bank and pays any costs
• Account holder is charged the interchange fee to allow processing (or this is covered by the broker)
• Payment is received by the acquiring bank
• Funds and earnings are available in your trading account subject to any additional broker checks

Transaction Times

Transfers to swing trading accounts with Mastercard are quick. It operates one of the fastest payment networks in the world, processing 5,000 transactions per second. With that said, your online broker may have its own processing timelines which can cause delays. As a result, account funding can take up to three working days, though eToro processes Mastercard deposits within a few minutes.

Importantly, payments can be cleared over the weekend or public holiday dates, similar vs Visa. A B2B tracking service is available so merchants can provide open banking advice and payment tracing. You can also contact your broker directly if a transaction is being particularly slow.

Note, payment rejections are sent by email so that corrections can be made.

Pricing Review

Fees may apply to deposits and withdrawals using Mastercard. Merchants can charge an additional fee or surcharge to customers using the credit card. This will be clearly stated on your broker’s website and cannot exceed 4% of the transaction value. Surcharges are not allowed on Mastercard debit or prepaid cards.

Interchange and FX rates may also apply if you are depositing in a different currency to your trading account denomination. Fortunately, a free currency converter can be used to understand exchange rate implications on trading profits.

Trading brokers typically absorb most Mastercard fees. Pepperstone and Plus500, for example, do not charge a deposit fee. With that said, maximum payment or revenue withdrawal limits may apply depending on your card status.

Security

Mastercard is a secure international payment solution. The company is constantly enhancing its fraud detection and prevention technologies. The payment gateway also has a proprietary security scheme, SecureCode, which is utilized across all touchpoints. This is better known as 3D secure technology and involves implementing a 3 digit security code and one-time password via SMS.

Customers also have the benefit of zero liability protection for unauthorised payments, two-factor login authentication and 24-hour customer support.

Pros of Mastercard for Traders

Benefits of trading with Mastercard include:

• Customer Support – Registered customers can access 24/7 global support. Regional telephone support centres and live chat services are available for help and guidance on payments, deposit issues, app queries and general enquiries
• Cards – Benefits, rewards and services vary between card types. The debit card may be ideal for those regularly saving towards investments while the credit card provides financial flexibility and convenience. Note any T&Cs when applying for cards
• Masterpass – Masterpass is a digital e-wallet supporting ‘quick pay’ via several devices including mobile, PC and tablet. Customers can essentially store card details without needing to pay with a physical card number, meaning that traders can bypass lengthy request forms and simply click, tap or touch to pay
• International – Mastercard has established product branding with credit and debit card services supported in over 200 countries, including the UAE, UK and US. The majority of swing trading brokers also offer the payment solution
• Secure Payments – Features include zero liability protection against fraud, ID checking technology, global emergency contact services and SecureCode (3D) verification. Sending issues and refund support, the latest news and transaction processing rules can also be easily found online
• Rewards – The brand offers various perks, including gift card/voucher schemes, reward cards and online promotions. Other programmes include Priceless Causes and Priceless Surprises, providing unique experiences for account holders. Mastercard Gold and Black cardholders also benefit from travel insurance, airline credit and no foreign exchange rate fees`

Cons of Mastercard for Traders

Downsides to trading with Mastercard include:

• Banks – Traders must hold an account with a participating bank to request a Mastercard. An application must also be completed to verify eligibility. As a result, transaction limits, availability and credit will vary
• Credit Card Rules – Many brokers do not allow traders to purchase stocks or shares directly with a credit card. Instead, consider pre-paid cards or debit cards
• Fees – As with most credit cards, transfer fees, annual charges, foreign exchange conversions, and interest rates may apply
• Anonymity – By linking a Mastercard credit or debit card to your swing trading account, you are sharing sensitive financial information. As a result, ensure you choose a regulated broker and only share the required information, such as your 16 digit card number and security code

How to Make Mastercard Deposits & Withdrawals

Making a Mastercard deposit or withdrawal to your trading account is simple.

First, you need to register for a Mastercard account. Contact your local bank or credit union to apply. Products, limits, services and features may vary by country of residency and personal circumstances. Over 150 account currencies are accepted and while registration is free, annual charges may apply. Pending account approval, you can transfer funds to a card and start making transactions.

Now visit your swing trading broker’s deposit section and select Mastercard as the funding method. Redirection to the payment partner’s interface is usually automatic, however, this may be embedded in your broker’s client portal. Next, enter your card details including the 16 digit number and security code, then follow the on-screen directions and enter the deposit amount. Once confirmed, your funds should be available shortly.

Verdict

Mastercard is one of the most widely used deposit and withdrawal solutions at brokers worldwide. Swing traders benefit from various perks, plus e-wallet and customer support services. Fees are also low and processing times are often instant. See our list of brokers that accept Mastercard deposits to get started: Pepperstone, AvaTrade and Plus500.

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