Security and Fraud Solutions Initiatives: Turning the Threat into an Opportunity

January 31, 2010 About MasterCard 210 countries 23,000 customers 5 regions over 22 billion transactions each year 1966 Company formed Merged with Europay International Became a publicly traded company (NYSE: MA) MAJOR BRANDS 5,100 employees

Our customers Our customers’ customers Cardholder Merchant Issuing Bank Acquiring Bank Franchisor Processor Advisor Partnering with our stakeholders

44 Prevention Detection Recovery SecureCode  roll out EMV roll out 2 1 Selective Authorisation by issuers Geo Control SMS alerts Empower cardholder SafeTravel SafeGuard 6 5 Real time fraud risk scoring (EMS) 3 Addressing Cross-Border counterfeit fraud: Addressing Card Not Present fraud: MasterCard Rules & Processes Protecting consumers and merchants A holistic approach to managing fraud

Source: Best estimates collected from MasterCard customers and regional offices, and QMR EU ATM Penetration: 78%EU POS Penetration: 76% R P D EMV-Chip roll out European EMV Deployment is Progressing A number of key markets are reaching 80% ATM & POS deployment SEPA wide coverage is anticipated to be % by January 2011 Initiatives underway to reinforce the EMV mandates for EU stragglers

October 15, R P D  SecureCode = industry standard for e-commerce authentication (« virtual chip&pin »)  Number of global merchants offering SecureCode has doubled over the past two years - now stands at ca. 470,000  Ca. 80 percent of SecureCode merchants based in Europe  Over 30 million European MasterCard and Maestro cardholders are currently actively using SecureCode  Romanian banks are increasingly encouraging their cardholders to use SecureCode when shopping online SecureCode roll out European SecureCode Deployment is Progressing

R P D  Research unveils top 3 needs articulated by consumers: - control - security - flexibility (Source: TNS, 2009)  Today: Barclaycard first bank worldwide to enable their UK customers to set personalised controls and spend limits  Tomorrow: Location-based controls interfacing with smart phones Empowering Cardholders Addressing needs for security and control