MasterCard International entered into an alliance with Diners Club International in 2004 that affects card acceptance across North America. Together, they are making it easier for Diners Club card members to use their cards at MasterCard merchant locations. This means that MasterCard merchants can now accept Diners Club cards. By accepting Diners Club cards, you will increase your opportunity to attract premium customers. It is simple to start welcoming these high spending customers.
North American Diners Club cards (cards issued in Canada and the United States) are now being re-issued with both the MasterCard and Diners Club brands on the front of the card. These new cards have a 16 digit card number starting with “5”. The card re-issuance started in November 2004 and is planned to complete in the third quarter of 2005.
These new cards now function as a MasterCard so they authorize and settle as MasterCard and MasterCard rates apply. The transactions report as MasterCard on the terminal and on the merchant statement. As a result, you will notice a shift in transaction volume to MasterCard as these new Diners Club cards now process as MasterCard transactions. A sample of the re-issued card is provided below:
International Diners Club cards (cards issued outside Canada and the United States) will be reissued later in 2005 with the MasterCard brand on the back of the card and the Diners brand on the front of the card. These new cards will retain the current 14 digit Diners Club card number starting with “36”.
Since November, 2004, these transactions have authorized and settled as Diners cards and Diners rates apply. They report as Diners on the terminal but report as MasterCard on the merchant statement.
Starting April 14, 2005, International Diners Club cards will be processed by Global Payments using the MasterCard network when they are used within Canada and the United States. As a result, these transactions will authorize and settle as MasterCard and MasterCard rates will apply. The transactions will report as MasterCard on the statement and Diners, MasterCard or other on the terminal, depending on your individual terminal. A sample of the re-issued card is provided below:
Summary
This new alliance creates an opportunity for MasterCard merchants to attract premium customers. Global Payments is working closely with MasterCard to minimize the impacts to your business during the re-issuance process. As the new MasterCards are distributed to cardholders, we will provide you with further details, if required.
How does this impact me if I accept MasterCard today but I don’t accept Diners Club?
Since November 2004, MasterCard merchants have been able to accept the new co-branded North American MasterCard/Diners Club cards (cards have a 16 digit card number starting with “5”). Starting April 14, 2005, MasterCard merchants will be able to accept all International Diners Club cards (cards starting with “36”). Some MasterCard merchants that did NOT accept Diners cards prior to April 14, 2005, may require an update to the terminal. Please call Global Payments Customer Care if assistance is required.
How does this impact me if I accept International Diners Club cards today but I don’t accept MasterCard?
To continue to accept International Diners Club cards, you will need a MasterCard merchant account by April 14, 2005. Please call Global Payment’s Customer Care at 1-800-263-2970 to complete an application.
I am a merchant who participates in a T&E frequent traveler program that allows cardholders to provide a credit card account on file. Do I have to do anything special?
If you have a preferred traveler program, the cardholder must update their transaction information with their new card number within 30 to 60 days of receipt of their new card or you may experience an authorization decline.
How will International Diners Club transactions be posted and priced on the merchant statement?
Prior to April 14, 2005, these transactions are treated as Diners transactions, authorizing and settling as Diners and Diners rates apply. As of April 14, 2005, these transactions will authorize and settle as MasterCard and MasterCard rates will apply. The transactions will report as MasterCard on the statement and Diners, MasterCard or other on the terminal, depending on your individual terminal.
I am paid by Diners today, how does this impact me?
Diners will continue to pay you for Diners transactions from the existing cards but, this will be phased out as Diners cards expire and are reissued as a MasterCard. You will be paid similar to your MasterCard transactions for all new Diners/MasterCard transactions.
When will Diners disappear from my merchant statement?
It is anticipated that the Diners volume will be migrated to MasterCard by the end of 2005.
The information contained herein is for informational purposes only and Global Payments Inc. does not warrant the accuracy or completeness of the information. Although we believe the information to be reliable, we cannot guarantee that it will not be subsequently amended as a result of intervening factors such as rules changes from the card associations. The information contained herein is subject to change without notice and Global Payments Inc. does not undertake any responsibility to update this information after the date hereof. Global Payments Inc. does not endorse any external sites linked herein.
