For years, Maestro has been used as a payment network in Europe, but it is now being gradually phased out. Mastercard is making the transition to the broader Mastercard network, as it is better suited for both online and international payments.
What does this mean for the payment cards you use via the Spend Cloud?
Below, we explain the differences between the physical and virtual Spend Cloud Cards and why Mastercard is becoming the new standard.
Physical Spend Cloud Card: A combination of prepaid Mastercard and Maestro
The physical Spend Cloud Card offers the best of both worlds: it works on both the Mastercard network and the Maestro network.
- In most cases, the card functions as a prepaid Mastercard, a widely used and internationally accepted payment method.
- If a payment terminal does not accept prepaid Mastercard, the card automatically switches to Maestro. This is particularly useful as long as some stores and payment terminals have not yet fully transitioned to the Mastercard network.
Since Maestro is being phased out, the Mastercard network is becoming the new standard for payments. The major advantage is that the Spend Cloud Card is already prepared for this change, as it supports both the Maestro and Mastercard networks.
Virtual Spend Cloud Card: Mastercard credit functionality for optimal online payments
The virtual Spend Cloud Card is a prepaid Mastercard with a credit card feature. This does not mean you are paying on credit, but rather that the card is processed as a credit card for payments. This ensures that the card is accepted in places where a regular debit or prepaid card may not work. This offers several advantages:
- Better acceptance for online payments – Many online stores and international platforms only accept credit cards, not debit or prepaid cards.
- Suitable for reservations and deposits – Hotels and car rental companies often reserve an amount before charging it. A Mastercard Credit card supports this process better than a debit or prepaid card.
- More payment security – Some vendors, such as hotels, car rentals, and subscription services, first reserve an amount and charge it later. This process works better with a Mastercard Credit card, as some merchants require a Mastercard payment. Debit and prepaid cards may not support such reservations.
Why is Maestro being phased out?
Mastercard is discontinuing Maestro because it no longer meets the payment needs of consumers and businesses. This ensures that bank cards and business payment cards will now operate on the more widely accepted Mastercard network.
- Maestro is outdated – Developed in the 1990s for in-person payments in Europe, Maestro is not technically suited for modern online and mobile payments. Many online platforms do not accept Maestro because these cards lack a standard 16-digit card number and CVC2 code, which are essential for secure digital transactions.
- Limited international acceptance – Maestro is primarily a European payment network with limited acceptance outside of Europe. This makes it less suitable for foreign payments or international online purchases.
Mastercard: The successor to Maestro
Mastercard is replacing Maestro with payment solutions that offer better global acceptance. This means that both personal and business bank cards will now operate on the Mastercard network, making them more convenient for online and international use.
The key difference? Cards on the Mastercard network work everywhere Mastercard is accepted, including online payments. They also support modern security features, such as a CVC code, making digital transactions easier and safer worldwide.
What does this mean for Spend Cloud Cards?
Spend Cloud Cards are prepared for this transition and align perfectly with the latest developments in payment processing:
- The physical Spend Cloud Card will continue to support Maestro as long as the infrastructure allows, but Mastercard is the new standard.
- The virtual Spend Cloud Card operates on the Mastercard Credit network, ensuring maximum online acceptance, as credit cards are often preferred for e-commerce, hotel reservations, and car rentals.
Mastercard is working closely with banks and retailers to ensure a smooth transition from Maestro to Mastercard. Over the coming years, fewer payment terminals will accept Maestro, but Mastercard-based cards will be usable worldwide.
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