MASTERCARD INC, 10-K filed on 2/13/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2023
Feb. 08, 2024
Jun. 30, 2023
Document Type 10-K    
Document Transition Report false    
Document Period End Date Dec. 31, 2023    
Document Annual Report true    
Entity File Number 001-32877    
Entity Registrant Name Mastercard Incorporated    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 13-4172551    
Entity Address, Postal Zip Code 10577    
Entity Address, State or Province NY    
Entity Address, City or Town Purchase,    
Entity Address, Address Line One 2000 Purchase Street    
City Area Code 914    
Local Phone Number 249-2000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] true    
Document Financial Statement Restatement Recovery Analysis [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 328.8
Entity Central Index Key 0001141391    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A Common Stock      
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share    
Trading Symbol MA    
Security Exchange Name NYSE    
Entity Common Stock, Shares Outstanding   925,723,131  
Senior Notes due December 2027      
Title of 12(b) Security 2.1% Notes due 2027    
Trading Symbol MA27    
Security Exchange Name NYSE    
One Point Zero Percent Notes Due 2029      
Title of 12(b) Security 1.0% Notes due 2029    
Trading Symbol MA29A    
Security Exchange Name NYSE    
Senior Notes due December 2030      
Title of 12(b) Security 2.5% Notes due 2030    
Trading Symbol MA30    
Security Exchange Name NYSE    
Class B Common Stock      
Entity Common Stock, Shares Outstanding   7,168,369  
v3.24.0.1
Audit Information
12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location New York, New York
v3.24.0.1
Consolidated Statement of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Net revenue $ 25,098 $ 22,237 $ 18,884
Operating Expenses:      
General and administrative 8,927 8,078 7,087
Advertising and marketing 825 789 895
Depreciation and amortization 799 750 726
Provision for litigation 539 356 94
Total operating expenses 11,090 9,973 8,802
Operating income 14,008 12,264 10,082
Other Income (Expense):      
Investment income 274 61 11
Gains (losses) on equity investments, net (61) (145) 645
Interest expense (575) (471) (431)
Other income (expense), net (7) 23 0
Total other income (expense) (369) (532) 225
Income before income taxes 13,639 11,732 10,307
Income tax expense 2,444 1,802 1,620
Net Income $ 11,195 $ 9,930 $ 8,687
Basic Earnings per Share (in dollars per share) $ 11.86 $ 10.26 $ 8.79
Basic weighted-average shares outstanding (in shares) 944 968 988
Diluted Earnings per Share (in dollars per share) $ 11.83 $ 10.22 $ 8.76
Diluted weighted-average shares outstanding (in shares) 946 971 992
v3.24.0.1
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net Income $ 11,195 $ 9,930 $ 8,687
Other comprehensive income (loss):      
Foreign currency translation adjustments 328 (712) (442)
Income tax effect (33) 37 55
Foreign currency translation adjustments, net of income tax effect 295 (675) (387)
Translation adjustments on net investment hedges (165) 353 269
Income tax effect 37 (78) (60)
Translation adjustments on net investment hedges, net of income tax effect (128) 275 209
Cash flow hedges (41) 1 6
Income tax effect 10 0 (1)
Reclassification adjustment for cash flow hedges 35 (10) 5
Income tax effect (8) 2 (1)
Cash flow hedges, net of income tax effect (4) (7) 9
Defined benefit pension and other postretirement plans (18) (45) 57
Income tax effect 5 14 (14)
Reclassification adjustment for defined benefit pension and other postretirement plans (1) (1) (2)
Income tax effect 0 0 0
Defined benefit pension and other postretirement plans, net of income tax effect (14) (32) 41
Investment securities available-for-sale 6 (6) (1)
Income tax effect (1) 1 0
Investment securities available-for-sale, net of income tax effect 5 (5) (1)
Other comprehensive income (loss), net of income tax effect 154 (444) (129)
Comprehensive Income $ 11,349 $ 9,486 $ 8,558
v3.24.0.1
Consolidated Balance Sheet - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 8,588 $ 7,008
Restricted cash for litigation settlement 0 589
Investments 592 400
Accounts receivable 4,060 3,425
Settlement assets 1,233 1,270
Restricted security deposits held for customers 1,845 1,568
Prepaid expenses and other current assets 2,643 2,346
Total current assets 18,961 16,606
Property, equipment and right-of-use assets, net 2,061 2,006
Deferred income taxes 1,355 1,151
Goodwill 7,660 7,522
Other intangible assets, net 4,086 3,859
Other assets 8,325 7,580
Total Assets 42,448 38,724
Liabilities, Redeemable Non-controlling Interests and Equity    
Accounts payable 834 926
Settlement obligations 1,399 1,111
Restricted security deposits held for customers 1,845 1,568
Accrued litigation 723 1,094
Accrued expenses 8,517 7,801
Short-term debt 1,337 274
Other current liabilities 1,609 1,397
Total current liabilities 16,264 14,171
Long-term debt 14,344 13,749
Deferred income taxes 369 393
Other liabilities 4,474 4,034
Total Liabilities 35,451 32,347
Commitments and Contingencies
Redeemable non-controlling interests 22 21
Stockholders’ Equity    
Additional paid-in-capital 5,893 5,298
Class A treasury stock, at cost, 475 and 451 shares, respectively (60,429) (51,354)
Retained earnings 62,564 53,607
Accumulated other comprehensive income (loss) (1,099) (1,253)
Mastercard Incorporated Stockholders' Equity 6,929 6,298
Non-controlling interests 46 58
Total Equity 6,975 6,356
Total Liabilities, Redeemable Non-controlling Interests and Equity 42,448 38,724
Class A Common Stock    
Stockholders’ Equity    
Common stock value $ 0 $ 0
Common stock, issued (in shares) 1,402,000,000 1,399,000,000
Common stock, outstanding (in shares) 927,000,000 948,000,000
Common stock, authorized shares (in shares) 3,000,000,000 3,000,000,000
Class B Common Stock    
Stockholders’ Equity    
Common stock value $ 0 $ 0
Common stock, issued (in shares) 7,000,000 8,000,000
Common stock, outstanding (in shares) 7,000,000 8,000,000
Common stock, authorized shares (in shares) 1,200,000,000 1,200,000,000
v3.24.0.1
Consolidated Balance Sheet (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Treasury stock (in shares) 475,000,000 451,000,000
Class A Common Stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized shares (in shares) 3,000,000,000 3,000,000,000
Common stock, issued (in shares) 1,402,000,000 1,399,000,000
Common stock, outstanding (in shares) 927,000,000 948,000,000
Class B Common Stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized shares (in shares) 1,200,000,000 1,200,000,000
Common stock, issued (in shares) 7,000,000 8,000,000
Common stock, outstanding (in shares) 7,000,000 8,000,000
v3.24.0.1
Consolidated Statement of Changes in Equity - USD ($)
$ in Millions
Total
Mastercard Incorporated Stockholders' Equity
Additional Paid-In Capital
Class A Treasury Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Non- Controlling Interests
Class A Common Stock
  Common Stock
Class B Common Stock
  Common Stock
Beginning balance at Dec. 31, 2020 $ 6,488 $ 6,391 $ 4,982 $ (36,658) $ 38,747 $ (680) $ 97 $ 0 $ 0
Net income 8,687 8,687     8,687        
Activity related to non-controlling interests (9)           (9)    
Acquisition of non-controlling interest (139) (122) (122)       (17)    
Redeemable non-controlling interest adjustments (5) (5)     (5)        
Other comprehensive income (loss) (129) (129)       (129)      
Dividends (1,781) (1,781)     (1,781)        
Purchases of treasury stock (5,934) (5,934)   (5,934)          
Share-based payments 205 205 201 4          
Ending balance at Dec. 31, 2021 7,383 7,312 5,061 (42,588) 45,648 (809) 71 0 0
Net income 9,930 9,930     9,930        
Activity related to non-controlling interests (13)           (13)    
Acquisition of non-controlling interest   0 0            
Redeemable non-controlling interest adjustments (3) (3)     (3)        
Other comprehensive income (loss) (444) (444)       (444)      
Dividends (1,968) (1,968)     (1,968)        
Purchases of treasury stock (8,773) (8,773)   (8,773)          
Share-based payments 244 244 237 7          
Ending balance at Dec. 31, 2022 6,356 6,298 5,298 (51,354) 53,607 (1,253) 58 0 0
Net income 11,195 11,195     11,195        
Activity related to non-controlling interests (12)           (12)    
Redeemable non-controlling interest adjustments (7) (7)     (7)        
Other comprehensive income (loss) 154 154       154      
Dividends (2,231) (2,231)     (2,231)        
Purchases of treasury stock (9,088) (9,088)   (9,088)          
Share-based payments 608 608 595 13          
Ending balance at Dec. 31, 2023 $ 6,975 $ 6,929 $ 5,893 $ (60,429) $ 62,564 $ (1,099) $ 46 $ 0 $ 0
v3.24.0.1
Consolidated Statement of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Activities      
Net income $ 11,195 $ 9,930 $ 8,687
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of customer incentives 1,622 1,586 1,371
Depreciation and amortization 799 750 726
(Gains) losses on equity investments, net 61 145 (645)
Share-based compensation 460 295 273
Deferred income taxes (236) (651) (69)
Other 22 44 36
Changes in operating assets and liabilities:      
Accounts receivable (546) (481) (397)
Income taxes receivable (171) 12 (87)
Settlement assets 40 48 390
Prepaid expenses (2,438) (2,175) (2,087)
Accrued litigation and legal settlements (375) 240 (1)
Restricted security deposits held for customers 277 (305) 177
Accounts payable (99) 190 100
Settlement obligations 282 201 (568)
Accrued expenses 571 1,188 1,355
Long-term taxes payable (129) (121) (52)
Net change in other assets and liabilities 645 299 254
Net cash provided by operating activities 11,980 11,195 9,463
Investing Activities      
Purchases of investment securities available-for-sale (300) (267) (389)
Purchases of investments held-to-maturity (347) (239) (294)
Proceeds from sales of investment securities available-for-sale 87 54 83
Proceeds from maturities of investment securities available-for-sale 191 211 291
Proceeds from maturities of investments held-to-maturity 157 265 296
Purchases of property and equipment (371) (442) (407)
Capitalized software (717) (655) (407)
Purchases of equity investments (89) (88) (228)
Proceeds from sales of equity investments 44 7 186
Acquisition of businesses, net of cash acquired 0 (313) (4,436)
Other investing activities (6) (3) 33
Net cash used in investing activities (1,351) (1,470) (5,272)
Financing Activities      
Purchases of treasury stock (9,032) (8,753) (5,904)
Dividends paid (2,158) (1,903) (1,741)
Proceeds from debt, net 1,554 1,123 2,024
Payment of debt 0 (724) (650)
Acquisition of redeemable non-controlling interests 0 (4) 0
Acquisition of non-controlling interest 0 0 (133)
Contingent consideration paid 0 0 (64)
Tax withholdings related to share-based payments (89) (141) (133)
Cash proceeds from exercise of stock options 237 90 61
Other financing activities 0 (16) (15)
Net cash used in financing activities (9,488) (10,328) (6,555)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents 128 (103) (153)
Net (decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents 1,269 (706) (2,517)
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period 9,196 9,902 12,419
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period $ 10,465 $ 9,196 $ 9,902
v3.24.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Organization
Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (“Mastercard International” and together with Mastercard Incorporated, “Mastercard” or the “Company”), is a technology company in the global payments industry. Mastercard connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic forms of payment and making those payment transactions safe, simple, smart and accessible. The Company makes payments easier and more efficient by providing a wide range of payment solutions and services through its family of well-known and trusted brands, including Mastercard®, Maestro® and Cirrus®. The Company operates a multi-rail payments network that provides choice and flexibility for consumers, merchants and Mastercard customers. Through its unique and proprietary core global payments network, the Company switches (authorizes, clears and settles) payment transactions. The Company has additional payments capabilities that include automated clearing house (“ACH”) transactions (both batch and real-time account-based payments). Using these capabilities, the Company offers payment products and services and captures new payment flows. The Company’s value-added services include, among others, cyber and intelligence solutions designed to allow all parties to transact securely, easily and with confidence, as well as other services that provide proprietary insights, drawing on Mastercard’s principled and responsible use of secure consumer and merchant data. The Company’s investments in new networks, such as open banking solutions and digital identity capabilities, support and strengthen payments and services solutions. Each of the Company’s capabilities support and build upon each other and are fundamentally interdependent. For the core global payments network, Mastercard’s franchise model sets the standards and ground-rules that balance value and risk across all stakeholders and allows for interoperability among them. The Company employs a multi-layered approach to help protect the global payments ecosystem in which it operates.
Mastercard is not a financial institution. The Company does not issue cards, extend credit, determine or receive revenue from interest rates or other fees charged to account holders by issuers, or establish the rates charged by acquirers in connection with merchants’ acceptance of the Company’s products. In most cases, account holder relationships belong to, and are managed by, the Company’s financial institution customers.
Significant Accounting Policies
Consolidation and basis of presentation - The consolidated financial statements include the accounts of Mastercard and its majority-owned and controlled entities, including any variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Investments in VIEs for which the Company is not considered the primary beneficiary are not consolidated and are accounted for as marketable, equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet.  At December 31, 2023 and 2022, there were no significant VIEs which required consolidation and the investments were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date on which the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Prior period amounts have been reclassified to conform to the 2023 presentation. The reclassifications had no impact on previously reported total net revenue, operating income or net income. The Company follows accounting principles generally accepted in the United States of America (“GAAP”).
Non-controlling interests represent the equity interest not owned by the Company and are recorded for consolidated entities in which the Company owns less than 100% of the interests. Changes in a parent’s ownership interest while the parent retains its controlling interest are accounted for as equity transactions, and upon loss of control, retained ownership interests are remeasured at fair value, with any gain or loss recognized in earnings. For 2023, 2022 and 2021, net income/(losses) attributable to non-controlling interests were not material and, as a result, amounts are included on the consolidated statement of operations within other income (expense).
Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of December 31, 2023 and through the date of this Report. The accounting estimates used in the preparation of the Company’s consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates.
Revenue recognition - Revenue is recognized to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services.
Revenue from the Company’s payment network is primarily generated by charging fees to customers (issuers, acquirers and other market participants) for providing switching and other network-related services, as well as by charging fees to customers based primarily on the gross dollar volume of activity (GDV, which includes both domestic and cross-border volume) on the cards that carry the Company’s brands. Revenue is recognized in the period in which the related transactions and volume occur. Certain volume-based revenue is determined from information reported by customers.
Revenue from the Company’s value-added services and solutions is generated through either fixed or transaction-based fees. These services and solutions can be integrated and sold with the Company’s payment network services or can be sold on a stand-alone basis. Revenue from the Company’s value-added services and solutions is recognized in the period in which the related services and solutions are performed or transactions occur. For services provided to customers where delivery involves the use of a third-party, the Company recognizes revenue on a gross basis if it acts as the principal, controlling the service to the customer, or on a net basis if it acts as the agent, arranging for the service to be provided.
Mastercard has business agreements with certain customers that provide for rebates and incentives within net revenue that could be either fixed or variable. Fixed incentives typically represent payments to a customer directly related to entering into an agreement, which are generally capitalized and amortized over the life of the agreement on a straight-line basis. Variable rebates and incentives are recorded primarily when volume- and transaction-based revenues are recognized over the contractual term. Variable rebates and incentives are calculated based upon estimated customer performance, such as volume thresholds, and the terms of the related business agreements.
Certain of the Company’s contracts may include options to receive additional value-added services and solutions. The Company accounts for the option as a distinct performance obligation if the option provides a material right to the customer. Material rights are incremental to the standard offerings, which a customer would not have received without entering into the contract. If a material right exists in a contract, revenue allocated to the option is deferred and recognized as revenue when those future products or services are transferred or when the option expires. The value of the option is based on observable prices in the contract or on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately in similar circumstances to similar customers.
Contract assets include unbilled consideration typically resulting from executed value-added services and solutions performed for customers in connection with Mastercard’s payments network service arrangements. Collection for these services typically occurs over the contractual term. Contract assets are included in prepaid expenses and other current assets and other assets on the consolidated balance sheet.
The Company defers the recognition of revenue when consideration has been received prior to the satisfaction of performance obligations. As these performance obligations are satisfied, revenue is subsequently recognized. Deferred revenue primarily relates to certain value-added services and solutions. Deferred revenue is included in other current liabilities and other liabilities on the consolidated balance sheet.
Business combinations - The Company accounts for business combinations under the acquisition method of accounting. The Company measures the tangible and intangible identifiable assets acquired, liabilities assumed, any non-controlling interest in the acquiree and contingent consideration at fair value as of the acquisition date. Acquisition-related costs are expensed as incurred and are included in general and administrative expenses on the consolidated statement of operations. Any excess purchase price over the fair value of net assets acquired, including identifiable intangible assets, is recorded as goodwill. Measurement period adjustments, if any, to the preliminary estimated fair value of the intangibles assets as of the acquisition date are recorded in goodwill.
Goodwill and other intangible assets - Indefinite-lived intangible assets consist of goodwill and customer relationships. Goodwill represents the synergies expected to arise after the acquisition date and the assembled workforce. Finite-lived intangible assets consist of capitalized software costs, other intangible assets acquired in business combinations (including customer relationships and acquired technology) and other intangible assets. Intangible assets with finite useful lives are amortized over their estimated useful lives, on a straight-line basis, which range from one to twenty years. Capitalized software includes internal and external costs incurred directly related to the design, development and testing phases of each capitalized software project.
The valuation methods for goodwill and other intangible assets acquired in business combinations involve assumptions concerning comparable company multiples, discount rates, growth projections and other assumptions of future business conditions. The Company uses various valuation techniques to determine the fair value of its intangible assets, primarily discounted cash flows analysis, relief-from-royalty and multi-period excess earnings. As the assumptions employed to measure these assets are based on
management’s judgment using internal and external data, these fair value determinations are classified in Level 3 of the Valuation Hierarchy (as defined in Fair value subsection below).
Impairment of assets - Goodwill and indefinite-lived intangible assets are not amortized but tested annually for impairment at the reporting unit level in the fourth quarter, or sooner when circumstances indicate an impairment may exist. The impairment evaluation for goodwill utilizes a qualitative assessment to determine whether it is more likely than not that goodwill is impaired. The qualitative factors may include, but are not limited to, macroeconomic conditions, industry and market conditions, operating environment, financial performance and other relevant events. If it is determined that it is more likely than not that goodwill is impaired, then the Company is required to perform a quantitative goodwill impairment test. If the fair value of the reporting unit exceeds the carrying value, goodwill is not impaired. If the fair value of the reporting unit is less than its carrying value, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment charge.
The impairment test for indefinite-lived intangible assets consists of a qualitative assessment to evaluate relevant events and circumstances that could affect the significant inputs used to determine the fair value of indefinite-lived intangible assets. If the qualitative assessment indicates that it is more likely than not that indefinite-lived intangible assets are impaired, then a quantitative assessment is required.  If the fair value of the indefinite-lived intangible asset exceeds the carrying value, the asset is not impaired. If the fair value of the indefinite-lived intangible asset is less than its carrying value, the asset is impaired and the excess of the asset’s carrying value over the fair value is recognized as an impairment charge.
Long-lived assets, other than goodwill and indefinite-lived intangible assets, are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. If the carrying value of the asset cannot be recovered from estimated future cash flows, undiscounted and without interest, the fair value of the asset is calculated using the present value of estimated net future cash flows. If the carrying amount of the asset exceeds its fair value, an impairment is recorded.
Impairment charges, if any, are recorded in general and administrative expenses on the consolidated statement of operations.
Litigation - The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company evaluates the likelihood of an unfavorable outcome of all legal or regulatory proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. Loss contingencies are recorded in provision for litigation on the consolidated statement of operations. These judgments are subjective based on the status of the legal or regulatory proceedings, the merits of its defenses and consultation with in-house and external legal counsel. Legal costs are expensed as incurred and recorded in general and administrative expenses on the consolidated statement of operations.
Settlement and other risk management - Mastercard’s rules guarantee the settlement of many of the payment network transactions between its customers. Settlement exposure is the outstanding settlement risk to customers under Mastercard’s rules due to the difference in timing between the payment transaction date and subsequent settlement. For those transactions the Company guarantees, the guarantee will cover the full amount of the settlement obligation to the extent the settlement obligation is not otherwise satisfied. The duration of the settlement exposure is short-term and generally limited to a few days.
The Company also enters into agreements in the ordinary course of business under which the Company agrees to indemnify third parties against damages, losses and expenses incurred in connection with legal and other proceedings arising from relationships or transactions with the Company. As the extent of the Company’s obligations under these agreements depends entirely upon the occurrence of future events, the Company’s potential future liability under these agreements is not determinable.
The Company accounts for each of its guarantees by recording the guarantee at its fair value at the inception or modification date through earnings.
Settlement assets/obligations - The Company operates systems for settling payment transactions among participants in the payments ecosystem in which the Company operates. Settlement is generally completed on a same-day basis. In some circumstances, however, funds may not settle until subsequent business days. In addition, the Company may receive or post funds in advance of transactions related to certain payment capabilities over its multi-rail payments network. The Company classifies the balances arising from these various activities as settlement assets and settlement obligations.
Income taxes - The Company follows an asset and liability based approach in accounting for income taxes as required under GAAP. Deferred income tax assets and liabilities are recorded to reflect the tax consequences on future years of temporary differences between the financial statement carrying amounts and income tax bases of assets and liabilities. Deferred income taxes are displayed separately as noncurrent assets and liabilities on the consolidated balance sheet. Valuation allowances are provided against assets which are not more likely than not to be realized. The Company recognizes all material tax positions, including uncertain tax positions in which it is more likely than not that the position will be sustained based on its technical merits and if challenged by the relevant taxing authorities. At each balance sheet date, unresolved uncertain tax positions are reassessed to determine whether subsequent developments require a change in the amount of recognized tax benefit. The allowance for uncertain tax positions is recorded in other current and noncurrent liabilities on the consolidated balance sheet. The Company
records interest expense related to income tax matters as interest expense on the consolidated statement of operations. The Company includes penalties related to income tax matters in the income tax provision.
Cash and cash equivalents - Cash and cash equivalents include certain investments with daily liquidity and with an original maturity of three months or less from the date of purchase. Cash equivalents are recorded at cost, which approximates fair value.
Restricted cash - The Company classifies cash and cash equivalents as restricted when it is unavailable for withdrawal or use in its general operations. The Company has the following types of restricted cash and restricted cash equivalents which are included in the reconciliation of beginning-of-period and end-of-period amounts shown on the consolidated statement of cash flows:
Restricted cash for litigation settlement - The Company had restricted cash for litigation within a qualified settlement fund related to the settlement agreement for the U.S. merchant class litigation. During 2023, the Company fully reduced its Restricted cash for litigation settlement balance as the settlement became final in August 2023. Refer to Note 21 (Legal and Regulatory Proceedings) for further details.
Restricted security deposits held for customers - The Company requires certain customers to enter into risk mitigation arrangements, including cash collateral and/or other forms of credit enhancement such as letters of credit and guarantees, for settlement of their transactions. Certain risk mitigation arrangements for settlement, such as standby letters of credit and bank guarantees, are not recorded on the consolidated balance sheet. The Company also holds cash deposits and certificates of deposit from certain customers as collateral for settlement of their transactions, which are recorded as assets on the consolidated balance sheet. These assets are fully offset by corresponding liabilities included on the consolidated balance sheet. The amount of these security deposits and the duration held are determined by the risk profile of the individual customer and the Company’s risk management practices.
Other restricted cash balances - The Company has other restricted cash balances which include contractually restricted deposits, as well as cash balances that are restricted based on the Company’s intention with regard to usage. These funds are classified on the consolidated balance sheet within prepaid expenses and other current assets and other assets.
Fair value - The Company measures certain financial assets and liabilities at fair value on a recurring basis by estimating the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. The Company also measures certain financial and non-financial assets and liabilities at fair value on a nonrecurring basis, when a change in fair value or impairment is evidenced. The Company classifies these recurring and nonrecurring fair value measurements into a three-level hierarchy (“Valuation Hierarchy”).
The Valuation Hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the Valuation Hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of the Valuation Hierarchy are as follows: 
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets and inputs that are observable for the asset or liability.
Level 3 - inputs to the valuation methodology are unobservable and cannot be directly corroborated by observable market data.
The Company’s financial assets and liabilities measured at fair value on a recurring basis include investment securities available-for-sale, marketable securities, derivative instruments and deferred compensation. The Company’s financial assets measured at fair value on a nonrecurring basis include nonmarketable securities. The Company’s non-financial assets measured at fair value on a nonrecurring basis include property, equipment and right-of-use assets, goodwill and other intangible assets and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.
Contingent consideration - Certain business combinations involve the potential for future payment of consideration that is contingent upon the achievement of performance milestones. These liabilities are classified within Level 3 of the Valuation Hierarchy as the inputs used to measure fair value are unobservable and require management’s judgment. The fair value of the contingent consideration at the acquisition date and subsequent periods is determined utilizing an income approach based on a Monte Carlo technique and is recorded in other current liabilities and other liabilities on the consolidated balance sheet. Changes to projected performance milestones of the acquired businesses could result in a higher or lower contingent consideration liability. The changes in fair value as a result of updated assumptions are recorded in general and administrative expenses on the consolidated statement of operations.
Investment securities - The Company classifies investments as available-for-sale or held-to-maturity at the date of acquisition.
Available-for-sale debt securities:
Investments in debt securities that are available to meet the Company’s current operational needs are classified as current assets and the securities that are not available for current operational needs are classified as noncurrent assets on the consolidated balance sheet.
The debt securities are carried at fair value, with unrealized gains and losses, net of tax, recorded as a separate component of accumulated other comprehensive income (loss) on the consolidated statement of comprehensive income. Net realized gains and losses on debt securities are recognized in investment income on the consolidated statement of operations. The specific identification method is used to determine realized gains and losses.
The Company evaluates its debt securities for impairment on an ongoing basis. When there has been a decline in fair value of a debt security below the amortized cost basis, the Company recognizes an impairment if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis; or (3) it does not expect to recover the entire amortized cost basis of the security. The credit loss component of the impairment is recognized as an allowance and recorded in other income (expense), net on the consolidated statement of operations while the non-credit related loss remains in accumulated other comprehensive income (loss) until realized from a sale or subsequent impairment.
Held-to-maturity securities:
Time deposits - The Company classifies time deposits with original maturities greater than three months as held-to-maturity. Held-to-maturity securities that mature within one year are classified as current assets within investments on the consolidated balance sheet while held-to-maturity securities with maturities of greater than one year are classified as other assets. Time deposits are carried at amortized cost on the consolidated balance sheet and are intended to be held until maturity.
Equity investments - The Company holds equity securities of publicly traded and privately held companies.
Marketable equity securities - Marketable equity securities are strategic investments in publicly traded companies and are measured at fair value using quoted prices in their respective active markets with changes recorded through gains (losses) on equity investments, net on the consolidated statement of operations. Marketable equity securities that are expected to be held as part of the Company’s long-term investment strategy are classified in other assets on the consolidated balance sheet.
Nonmarketable equity investments - The Company’s nonmarketable equity investments, which are reported in other assets on the consolidated balance sheet, include investments in privately held companies without readily determinable market values. The Company uses discounted cash flows and market assumptions to estimate the fair value of its nonmarketable equity investments when certain events or circumstances indicate that impairment may exist. The Company’s nonmarketable equity investments are accounted for under the measurement alternative method or equity method.
Measurement alternative method - The Company accounts for investments in common stock or in-substance common stock under the measurement alternative method of accounting when it does not exercise significant influence, generally when it holds less than 20% ownership in the entity or when the interest in a limited partnership or limited liability company is less than 5% and the Company has no significant influence over the operations of the investee. Investments in companies that Mastercard does not control, but that are not in the form of common stock or in-substance common stock, are also accounted for under the measurement alternative method of accounting. Measurement alternative investments are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Fair value adjustments, as well as impairments, are included in gains (losses) on equity investments, net on the consolidated statement of operations.
Equity method - The Company accounts for investments in common stock or in-substance common stock under the equity method of accounting when it has the ability to exercise significant influence over the operations of the investee, generally when it holds between 20% and 50% ownership in the entity. The excess of the cost over the underlying net equity of investments accounted for under the equity method is allocated to identifiable tangible and intangible assets and liabilities based on fair values at the date of acquisition. The amortization of the excess of the cost over the underlying net equity of investments and Mastercard’s share of net earnings or losses of entities accounted for under the equity method of accounting is included in other income (expense), net on the consolidated statement of operations.
In addition, investments in flow-through entities such as limited partnerships and limited liability companies are also accounted for under the equity method when the Company has the ability to exercise significant influence over the operations of the investee, generally when the investment ownership percentage is equal to or greater than 5% of the
outstanding ownership interest. The Company’s share of net earnings or losses for these investments are included in gains (losses) on equity investments, net on the consolidated statement of operations.
Derivative and hedging instruments - The Company’s derivative financial instruments are recorded as either assets or liabilities on the balance sheet and measured at fair value. The Company’s foreign exchange and interest rate derivative contracts are included in Level 2 of the Valuation Hierarchy as the fair value of the contracts are based on inputs that are observable based on broker quotes for the same or similar instruments. The Company does not enter into derivative instruments for trading or speculative purposes. For derivatives that are not designated as hedging instruments, realized and unrealized gains and losses from the change in fair value of the derivatives are recognized in current earnings.
The Company’s derivatives that are designated as hedging instruments are required to meet established accounting criteria. In addition, an effectiveness assessment is required to demonstrate that the derivative is expected to be highly effective at offsetting changes in fair value or cash flows of the underlying exposure both at inception of the hedging relationship and on an ongoing basis. The method of assessing hedge effectiveness and measuring hedge results is formally documented at hedge inception and assessed at least quarterly throughout the designated hedge period.
The Company may designate derivative instruments as cash flow, fair value and net investment hedges, as follows:
Cash flow hedges - Fair value adjustments to derivative instruments are recorded, net of tax, in other comprehensive income (loss) on the consolidated statement of comprehensive income. Any gains and losses deferred in accumulated other comprehensive income (loss) are subsequently reclassified to the corresponding line item on the consolidated statement of operations when the underlying hedged transactions impact earnings. For hedges that are no longer deemed highly effective, hedge accounting is discontinued prospectively, and any gains and losses remaining in accumulated other comprehensive income (loss) are reclassified to earnings when the underlying forecasted transaction occurs. If it is probable that the forecasted transaction will no longer occur, the associated gains or losses in accumulated other comprehensive income (loss) are reclassified to the corresponding line item on the consolidated statement of operations in current earnings.
Fair value hedges - Changes in the fair value of derivative instruments are recorded in current-period earnings, along with the gain or loss on the hedged asset or liability (“hedged item”) that is attributable to the hedged risk. All amounts recognized in earnings are recorded to the corresponding line item on the consolidated statement of operations as the earnings effect of the hedged item. Hedged items are measured on the consolidated balance sheet at their carrying amount adjusted for any changes in fair value attributable to the hedged risk (“basis adjustments”). The Company defers the amortization of any basis adjustments until the end of the derivative instrument’s term. If the hedge designation is discontinued for reasons other than derecognition of the hedged item, the remaining basis adjustments are amortized in accordance with applicable GAAP for the hedged item.
Net investment hedges - The Company has numerous investments in foreign subsidiaries. The net assets of these subsidiaries are exposed to volatility in foreign currency exchange rates. The Company may use foreign currency denominated debt and/or derivative instruments to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. The effective portion of the foreign currency gains and losses related to the hedging instruments are reported in accumulated other comprehensive income (loss) on the consolidated balance sheet as a cumulative translation adjustment component of equity. Gains and losses in accumulated other comprehensive income (loss) are reclassified to earnings only if the Company sells or substantially liquidates its net investments in foreign subsidiaries. Amounts excluded from effectiveness testing of net investment hedges are recognized in earnings over the life of the hedging instrument. The Company evaluates the effectiveness of the net investment hedge each quarter.
Property, equipment and right-of-use assets - Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements and amortization of finance leases is included in depreciation and amortization expense on the consolidated statement of operations. Operating lease amortization expense is included in general and administrative expenses on the consolidated statement of operations.
The Company determines if a contract is, or contains, a lease at contract inception. The Company’s right-of-use (“ROU”) assets are primarily related to operating leases for office space, automobiles and other equipment. Leases are included in property, equipment and right-of-use assets, other current liabilities and other liabilities on the consolidated balance sheet.
ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. In addition, ROU assets include initial direct costs incurred by the lessee as well as any lease payments made at or before the commencement date, and exclude lease incentives. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the
commencement date in determining the present value of lease payments. The incremental borrowing rate is determined by using the rate of interest that the Company would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of one year or less are excluded from ROU assets and liabilities.
The Company excludes variable lease payments in measuring ROU assets and lease liabilities, other than those that depend on an index, a rate or are in-substance fixed payments. Lease and nonlease components are generally accounted for separately. When available, consideration is allocated to the separate lease and nonlease components in a lease contract on a relative standalone price basis using observable standalone prices.
Pension and other postretirement plans - The Company recognizes the funded status of its single-employer defined benefit pension plans and postretirement plans as assets or liabilities on its consolidated balance sheet and recognizes changes in the funded status in the year in which the changes occur through accumulated other comprehensive income (loss). The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation at December 31, the measurement date. Overfunded plans, if any, are aggregated and recorded in other assets, while underfunded plans are aggregated and recorded as accrued expenses and other liabilities on the consolidated balance sheet.
Net periodic pension and postretirement benefit cost/(income), excluding the service cost component, is recognized in other income (expense), net on the consolidated statement of operations. These costs include interest cost, expected return on plan assets, amortization of prior service costs or credits and gains or losses previously recognized as a component of accumulated other comprehensive income (loss). The service cost component is recognized in general and administrative expenses on the consolidated statement of operations.
Defined contribution plans - The Company’s contributions to defined contribution plans are recorded as employees render service to the Company. The charge is recorded in general and administrative expenses on the consolidated statement of operations.
Advertising and marketing - Expenses incurred to promote Mastercard’s brand, products and services are recognized in advertising and marketing on the consolidated statement of operations. The timing of recognition is dependent on the type of advertising or marketing expense.
Foreign currency remeasurement and translation - Monetary assets and liabilities in a currency other than the functional currency are remeasured using current exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are recorded at historical exchange rates. Revenue and expense accounts are remeasured at the weighted-average exchange rate for the period. Resulting exchange gains and losses related to remeasurement are included in general and administrative expenses on the consolidated statement of operations.
Where a non-U.S. currency is the functional currency, translation from that functional currency to U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate for the period. Resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss).
Treasury stock - The Company records the repurchase of shares of its common stock at cost on the trade date of the transaction. These shares are considered treasury stock, which is a reduction to stockholders’ equity. Treasury stock is included in authorized and issued shares but excluded from outstanding shares.
Share-based payments - The Company measures share-based compensation expense at the grant date, based on the estimated fair value of the award and uses the straight-line method of attribution, net of estimated forfeitures, for expensing awards over the requisite employee service period. The Company estimates the fair value of its non-qualified stock option awards (“Options”) using a Black-Scholes valuation model. The fair value of restricted stock units (“RSUs”) is determined and fixed on the grant date based on the Company’s stock price, adjusted for the exclusion of dividend equivalents. The Monte Carlo simulation valuation model is used to determine the grant date fair value of performance stock units (“PSUs”) granted. All share-based compensation expenses are recorded in general and administrative expenses on the consolidated statement of operations.
Redeemable non-controlling interests - The Company’s business combinations may include provisions allowing non-controlling equity owners the ability to require the Company to purchase additional interests in the subsidiary at their discretion. The interests are initially recorded at fair value and in subsequent reporting periods are accreted or adjusted to the estimated redemption value. The adjustments to the redemption value are recorded to retained earnings or additional paid-in capital on the consolidated balance sheet. The redeemable non-controlling interests are considered temporary and reported outside of permanent equity on the consolidated balance sheet at the greater of the carrying amount adjusted for the non-controlling interest’s share of net income (loss) or its redemption value.
Earnings per share - The Company calculates basic earnings per share (“EPS”) by dividing net income by the weighted-average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the year, adjusted for the potentially dilutive effect of stock options and unvested stock units using the treasury stock method. The Company may be required to calculate EPS using the two-class method as a result of its redeemable non-controlling interests. If redemption value exceeds the fair value of the redeemable non-controlling interests, the excess would be a reduction to net income for the EPS calculation.
Accounting Pronouncements Not Yet Adopted
Improvements to Reportable Segment Disclosures - In November 2023, the Financial Accounting Standards Board (“FASB”) issued accounting guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company will adopt this guidance in its Form 10-K for the year ended December 31, 2024. This guidance is expected to impact the disclosures only with no impact to the results of operations, financial position or cash flows.
Improvements to Income Tax Disclosures - In December 2023, the FASB issued accounting guidance to enhance the transparency and decision usefulness of income tax disclosures. The guidance includes improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating when it will adopt this guidance and the potential effects this guidance will have on its disclosures.
v3.24.0.1
Acquisitions Business Combination
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Business Combination Disclosure Acquisitions
In 2023, the Company did not complete any material business acquisitions.
In April 2022, Mastercard acquired a 100% equity interest in Dynamic Yield LTD (“Dynamic Yield”) for cash consideration of $325 million. The net assets acquired primarily relate to intangible assets, including goodwill of $200 million that is primarily attributable to the synergies expected to arise after the acquisition date. None of the goodwill is expected to be deductible for local tax purposes.
In 2021, the Company acquired several businesses for total consideration of $4.7 billion representing both cash and contingent consideration.
In March 2021, Mastercard acquired a majority of the Corporate Services business of Nets Denmark A/S (“Nets”) for €3.0 billion (approximately $3.6 billion as of the date of acquisition) in cash consideration based on a €2.85 billion enterprise value, adjusted for cash and net working capital at closing. The business acquired is primarily comprised of clearing and instant payment services and e-billing solutions. The net assets acquired primarily relate to intangible assets, including goodwill of $2.1 billion, of which $0.8 billion is expected to be deductible for local tax purposes. The goodwill arising from this acquisition is primarily attributable to the synergies expected to arise through geographic, product and customer expansion, the underlying technology and workforce acquired.
In June 2021, Mastercard acquired a 100% equity interest in Ekata, Inc. (“Ekata”) for cash consideration of $861 million, based on an $850 million enterprise value, adjusted for cash and net working capital at closing. The acquisition of Ekata is expected to broaden the Company’s digital identity verification capabilities. The goodwill arising from this acquisition is primarily attributable to the synergies expected to arise after the acquisition date and none of the goodwill is expected to be deductible for local tax purposes.
Mastercard acquired additional businesses in 2021 for consideration of $272 million. These businesses were not considered individually material to Mastercard.
These acquisitions align with the Company’s strategy to grow, diversify and build the Company’s business. Refer to Note 1 (Summary of Significant Accounting Policies) for the valuation techniques Mastercard utilizes to fair value the respective components of business combinations and contingent consideration.
In 2023, the Company finalized the purchase accounting for the business acquired during 2022. The final fair values of the purchase price allocations in aggregate, as of the acquisition dates, are noted below for the years ended December 31.
20222021
(in millions)
Assets:
Cash and cash equivalents$11 $253 
Other current assets41 
Other intangible assets125 2,071 
Goodwill200 2,842 
Other assets15 
Total assets352 5,222 
Liabilities:
Other current liabilities15 112 
Deferred income taxes 398 
Other liabilities12 
Total liabilities27 522 
Net assets acquired$325 $4,700 
The following table summarizes the identified intangible assets acquired during the years ended December 31:
2022202120222021
Acquisition Date Fair Value
Weighted-Average Useful Life
(in millions)
(in years)
Developed technologies$100 $433 7.811.7
Customer relationships25 1,614 17.019.2
Other— 24 7.1
Other intangible assets$125 $2,071 9.617.5
Proforma information related to these acquisitions was not included because the impact on the Company's consolidated results of operations was not considered to be material.
v3.24.0.1
Revenue
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Mastercard is a payments network service provider that generates revenue from a wide range of payment solutions provided to customers. Revenue from contracts with customers is recognized when services are performed in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services (i.e., fees charged to customers). The Company disaggregates its net revenue from contracts with customers into two categories: (i) payment network and (ii) value-added services and solutions. The Company’s net revenue categories, payment network and value-added services and solutions, are recognized net of rebates and incentives provided to customers. Rebates and incentives can be either fixed or variable and are attributed to the category of revenue to which they pertain.
Payment network
Mastercard’s payment network involves four participants in addition to the Company: account holders (a person or entity who holds a card or uses another device enabled for payment), issuers (the account holders’ financial institutions), merchants and acquirers (the merchants’ financial institutions). Revenue from the Company’s payment network is primarily generated by charging fees to customers (issuers, acquirers and other market participants) for providing switching and other network-related services, as well as by charging fees to customers based primarily on the gross dollar volume of activity (GDV, which includes both domestic and cross-border volume) on the cards that carry the Company’s brands. As a payments network service provider, the Company provides its customers with continuous access to its global payments network and stands ready to provide transaction processing over the contractual term. Consideration is variable and is recognized as revenue in the period in which volumes and transactions occur.
Value-added services and solutions
The Company generates revenues from value-added services and solutions through either fixed or transaction-based fees. These services and solutions can be integrated and sold with the Company’s payment network services or can be sold on a stand-alone basis. These services and solutions primarily include cyber and intelligence, data and services, processing and gateway, ACH batch and real-time account-based payments and solutions, open banking and digital identity. Revenue from these value-added services and solutions is recognized in the period in which the related services and solutions are performed or transactions occur.
The Company’s disaggregated net revenue by category and geographic region were as follows for the years ended December 31:
 202320222021
(in millions)
Revenue by category:
Payment network$15,824 $14,358 $11,943 
Value-added services and solutions9,274 7,879 6,941 
Net revenue$25,098 $22,237 $18,884 
Net revenue by geographic region:
North American Markets 1
$8,359 $7,809 $6,667 
International Markets16,739 14,428 12,217 
Net revenue$25,098 $22,237 $18,884 
1North American Markets includes the United States and Canada, excluding the U.S. Territories.
The Company’s customers are generally billed weekly, with certain billings occurring on a monthly and quarterly basis. The frequency of billing is dependent upon the nature of the performance obligation and the underlying contractual terms. The Company does not typically offer extended payment terms to customers. The following table sets forth the location of the amounts recognized on the consolidated balance sheet from contracts with customers at December 31:
20232022
(in millions)
Receivables from contracts with customers
Accounts receivable
$3,851 $3,213 
Contract assets
Prepaid expenses and other current assets133 118 
Other assets387 442 
Deferred revenue 1
Other current liabilities459 434 
Other liabilities318 248 
1    Revenue recognized from performance obligations satisfied in 2023 was $2.1 billion.

The Company’s remaining performance periods for its contracts with customers for its payments network services are typically long-term in nature (generally up to 10 years). As a payments network service provider, the Company provides its customers with continuous access to its global payments network and stands ready to provide transaction processing and related services over the contractual term. Consideration is variable as the Company generates volume- and transaction-based revenues from charging fees on its customers’ current period activity. The Company has elected the optional exemption to not disclose the remaining performance obligations related to its payments network services. The Company also earns revenue from value-added services and solutions. At December 31, 2023, the estimated aggregate consideration allocated to unsatisfied performance obligations for these value-added services and solutions is $1.5 billion, which is expected to be recognized through 2028. The estimated remaining performance obligations related to these revenues are subject to change and are affected by several factors, including modifications and terminations and are not expected to be material to any future annual period.
v3.24.0.1
Earnings Per Share
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The components of basic and diluted EPS for common shares for each of the years ended December 31 were as follows:
 202320222021
 (in millions, except per share data)
Numerator
Net income$11,195 $9,930 $8,687 
Denominator
Basic weighted-average shares outstanding944 968 988 
Dilutive stock options and stock units
Diluted weighted-average shares outstanding 1
946 971 992 
Earnings per Share
Basic$11.86 $10.26 $8.79 
Diluted$11.83 $10.22 $8.76 
Note: Table may not sum due to rounding.
1For the years presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards.
v3.24.0.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
12 Months Ended
Dec. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
The following table provides the components of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows for the years ended December 31:
20232022
(in millions)
Cash and cash equivalents$8,588 $7,008 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement 1
— 589 
Restricted security deposits held for customers1,845 1,568 
Prepaid expenses and other current assets32 31 
Cash, cash equivalents, restricted cash and restricted cash equivalents$10,465 $9,196 
1During 2023, the Company reduced its Restricted cash for litigation settlement balance by $600 million, including accrued interest, as a settlement became final in August 2023. See Note 21 (Legal and Regulatory Proceedings) for additional information regarding the Company’s restricted cash for litigation settlement.
v3.24.0.1
Supplemental Cash Flows
12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flows Supplemental Cash Flows
The following table includes supplemental cash flow disclosures for each of the years ended December 31:
202320222021
 (in millions)
Cash paid for income taxes, net of refunds$2,746 $2,506 $1,820 
Cash paid for interest477 414 399 
Cash paid for legal settlements929 114 98 
Non-cash investing and financing activities
Dividends declared but not yet paid616 545 479 
Accrued property, equipment and right-of-use assets147 118 15 
Fair value of assets acquired, net of cash acquired— 341 4,969 
Fair value of liabilities assumed related to acquisitions— 27 522 
v3.24.0.1
Investments
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
The Company’s investments on the consolidated balance sheet include both available-for-sale and held-to-maturity debt securities (see Investments section below). The Company’s strategic investments in equity securities of publicly traded and privately held companies are classified within other assets on the consolidated balance sheet (see Equity Investments section below).
Investments
Investments on the consolidated balance sheet consisted of the following at December 31:
20232022
(in millions)
Available-for-sale securities
$286 $272 
Held-to-maturity securities 1
306 128 
Total investments $592 $400 
1Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value.
Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to-maturity and available-for-sale investment securities, as well as realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for 2023, 2022 and 2021 were not material.
Available-for-Sale Securities
The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values at December 31 were as follows:
 20232022
 Amortized Cost Gross Unrealized GainGross Unrealized Loss Fair ValueAmortized Cost Gross Unrealized GainGross Unrealized Loss Fair Value
(in millions)
Government and agency securities$86 $— $— $86 $91 $— $(2)$89 
Corporate securities200 (1)200 187 — (4)183 
Total$286 $1 $(1)$286 $278 $ $(6)$272 
The Company’s government and agency securities include U.S. government bonds, U.S. government sponsored agency bonds and foreign government bonds which are denominated in the national currency of the issuing country. Corporate securities held at December 31, 2023 and 2022, primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. The gross unrealized losses on the available-for-sale securities are primarily driven by changes in interest rates. For the available-for-sale securities in gross unrealized loss positions, the Company (1) does not intend to sell the securities, (2) more likely than not, will not be required to sell the securities before recovery of the unrealized losses, and (3) expects that the contractual principal and interest will be received. Unrealized gains and losses are recorded as a separate component of other comprehensive income (loss) on the consolidated statement of comprehensive income.
The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at December 31, 2023 was as follows:
Amortized
Cost
Fair Value
(in millions)
Due within 1 year$170 $169 
Due after 1 year through 5 years116 117 
Total$286 $286 
Equity Investments
Included in other assets on the consolidated balance sheet are equity investments with readily determinable fair values (“Marketable securities”) and equity investments without readily determinable fair values (“Nonmarketable securities”). Marketable securities are equity interests in publicly traded companies and are measured using unadjusted quoted prices in their respective active markets. Nonmarketable securities that do not qualify for equity method accounting are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for the identical or similar investments of the same issuer (“Measurement alternative”).
The following table is a summary of the activity related to the Company’s equity investments:
 Balance at December 31, 2022PurchasesSales
Changes in Fair Value 1
Other 2
Balance at December 31, 2023
(in millions)
Marketable securities $399 $— $— $97 $10 $506 
Nonmarketable securities 1,331 89 (44)(158)1,223 
Total equity investments $1,730 $89 $(44)$(61)$15 $1,729 
1Recorded in gains (losses) on equity investments, net on the consolidated statement of operations.
2Includes translational impact of currency.
The following table sets forth the components of the Company’s Nonmarketable securities at December 31:
20232022
(in millions)
Measurement alternative
$1,008 $1,087 
Equity method
215 244 
Total Nonmarketable securities$1,223 $1,331 
The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through December 31:
2023
(in millions)
Initial cost basis
$553 
Cumulative adjustments 1:
Upward adjustments630 
Downward adjustments (including impairment)(175)
Carrying amount, end of period$1,008 
1Includes immaterial translational impact of currency.
The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities for the years ended December 31:
202320222021
(in millions)
Measurement alternative investments:
Upward adjustments$$114 $468 
Downward adjustments (including impairment)$(145)$(23)$(2)
Marketable securities:
Unrealized gains (losses), net$97 $(213)$
v3.24.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2023
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s financial instruments are carried at fair value, cost or amortized cost on the consolidated balance sheet. The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation Hierarchy”).
Financial Instruments - Carried at Fair Value
Financial instruments carried at fair value are categorized for fair value measurement purposes as recurring or nonrecurring in nature.
Recurring Measurements
The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:
 December 31, 2023December 31, 2022
 Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
TotalQuoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in millions)
Assets
Investment securities available-for-sale 1:
Government and agency securities33 53 — 86 35 54 — 89 
Corporate securities— 200 — 200 — 183 — 183 
Derivative instruments 2:
Foreign exchange contracts— 36 — 36 — 108 — 108 
Marketable securities 3:
Equity securities506 — — 506 399 — — 399 
Deferred compensation plan 4:
Deferred compensation assets93 — — 93 74 — — 74 
Liabilities
Derivative instruments 2:
Foreign exchange contracts$— $104 $— $104 $— $21 $— $21 
Interest rate contracts— 79 — 79 — 105 — 105 
Deferred compensation plan 5:
Deferred compensation liabilities91 — — 91 73 — — 73 
1The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy.
2The Company’s foreign exchange and interest rate derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes for similar derivative instruments. See Note 23 (Derivative and Hedging Instruments) for further details.
3The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets.
4The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet.
5The deferred compensation liabilities are measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet.
Nonrecurring Measurements
Nonmarketable Securities
The Company’s Nonmarketable securities are recorded at fair value on a nonrecurring basis in periods after initial recognition under the equity method or measurement alternative method. Nonmarketable securities are classified within Level 3 of the Valuation Hierarchy due to the absence of quoted market prices, the inherent lack of liquidity and unobservable inputs used to measure fair value that require management’s judgment. The Company uses discounted cash flows and market assumptions to estimate the fair value of its Nonmarketable securities when certain events or circumstances indicate that impairment may exist. See Note 7 (Investments) for further details.
Financial Instruments - Not Carried at Fair Value
Debt
Debt instruments are carried on the consolidated balance sheet at amortized cost. The Company estimates the fair value of its debt based on either market quotes or observable market data. Debt is classified as Level 2 of the Valuation Hierarchy as it is generally not traded in active markets. At December 31, 2023, the carrying value and fair value of debt was $15.7 billion and $14.7 billion, respectively. At December 31, 2022, the carrying value and fair value of debt was $14.0 billion and $12.7 billion, respectively. See Note 15 (Debt) for further details.
Other Financial Instruments
Certain other financial instruments are carried on the consolidated balance sheet at cost or amortized cost basis, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, restricted cash, time deposits, accounts receivable, settlement assets, restricted security deposits held for customers, accounts payable, settlement obligations and other accrued liabilities.
v3.24.0.1
Prepaid Expenses and Other Assets
12 Months Ended
Dec. 31, 2023
Prepaid Expense and Other Assets [Abstract]  
Prepaid Expenses and Other Assets Prepaid Expenses and Other Assets
Prepaid expenses and other current assets consisted of the following at December 31:
20232022
(in millions)
Customer incentives
$1,570 $1,392 
Other1,073 954 
Total prepaid expenses and other current assets$2,643 $2,346 
Other assets consisted of the following at December 31:
20232022
(in millions)
Customer incentives
$5,170 $4,578 
Equity investments1,729 1,730 
Income taxes receivable783 633 
Other643 639 
Total other assets$8,325 $7,580 
Customer incentives represent payments made to customers under business agreements. Payments made directly related to entering into such an agreement are generally capitalized and amortized over the life of the agreement.
v3.24.0.1
Property, Equipment and Right-of-Use Assets
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Equipment and Right-of-Use Assets Property, Equipment and Right-of-Use Assets
Property, equipment and right-of-use assets consisted of the following at December 31:
20232022
(in millions)
Buildings, building equipment and land$678 $652 
Equipment1,940 1,711 
Furniture and fixtures90 96 
Leasehold improvements398 376 
Operating lease right-of-use assets1,192 1,075 
Property, equipment and right-of-use assets4,298 3,910 
Less: Accumulated depreciation and amortization(2,237)(1,904)
Property, equipment and right-of-use assets, net$2,061 $2,006 
Depreciation and amortization expense for the above property, equipment and right-of-use assets was $482 million, $473 million and $424 million for 2023, 2022 and 2021, respectively.
Operating lease ROU assets and operating lease liabilities are recorded on the consolidated balance sheet as follows at December 31:
20232022
(in millions)
Balance sheet location
Property, equipment and right-of-use assets, net$686 $679 
Other current liabilities142 140 
Other liabilities633 630 
Operating lease amortization expense was $141 million, $137 million and $122 million for 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the weighted-average remaining lease term of operating leases was 8.2 years and 8.4 years and the weighted-average discount rate for operating leases was 3.3% and 2.5%, respectively.
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Equipment and furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
The following table summarizes the maturity of the Company’s operating lease liabilities at December 31, 2023 based on lease term:
Operating Leases
(in millions)
2024$163 
2025129 
2026110 
202787 
202870 
Thereafter325 
Total operating lease payments884 
Less: Interest(109)
Present value of operating lease liabilities$775 
v3.24.0.1
Goodwill
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The changes in the carrying amount of goodwill for the years ended December 31 were as follows:
20232022
(in millions)
Beginning balance$7,522 $7,662 
Additions46 200 
Foreign currency translation92 (340)
Ending balance$7,660 $7,522 
The Company performed its annual qualitative assessment of goodwill during the fourth quarter of 2023 and determined a quantitative assessment was not necessary. The Company concluded that goodwill was not impaired and had no accumulated impairment losses at December 31, 2023.
v3.24.0.1
Other Intangible Assets
12 Months Ended
Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Other Intangible Assets Other Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
20232022
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
(in millions)
Finite-lived intangible assets
Capitalized software 1
$3,917 $(1,530)$2,387 $3,448 $(1,402)$2,046 
Customer relationships2,165 (641)1,524 2,161 (521)1,640 
Other51 (38)13 54 (37)17 
Total6,133 (2,209)3,924 5,663 (1,960)3,703 
Indefinite-lived intangible assets
Customer relationships162 — 162 156 — 156 
Total$6,295 $(2,209)$4,086 $5,819 $(1,960)$3,859 
1Includes technology acquired in business combinations.
The increase in the gross carrying amount of finite-lived intangible assets in 2023 was primarily related to software additions to support the continued growth of the Company. Certain intangible assets are denominated in foreign currencies. As such, the change in intangible assets includes a component attributable to foreign currency translation. Based on the qualitative assessment performed in 2023, it was determined that the Company’s indefinite-lived intangible assets were not impaired.
Amortization on the finite-lived intangible assets above amounted to $457 million, $414 million and $424 million in 2023, 2022 and 2021, respectively. The following table sets forth the estimated future amortization expense on finite-lived intangible assets on the consolidated balance sheet at December 31, 2023 for the years ending December 31:
(in millions)
2024$507 
2025532 
2026518 
2027434 
2028387 
Thereafter1,546 
Total$3,924 
v3.24.0.1
Accrued Expenses and Accrued Litigation
12 Months Ended
Dec. 31, 2023
Accrued Liabilities [Abstract]  
Accrued Expenses and Accrued Litigation Accrued Expenses and Accrued Litigation
Accrued expenses consisted of the following at December 31:
20232022
 (in millions)
Customer incentives
$6,219 $5,600 
Personnel costs1,258 1,322 
Income and other taxes486 279 
Other554 600 
Total accrued expenses$8,517 $7,801 
Customer incentives represent amounts to be paid to customers under business agreements. As of December 31, 2023 and 2022, long-term customer incentives included in other liabilities were $2,777 million and $2,293 million, respectively.
As of December 31, 2023 and 2022, the Company’s provision for litigation was $723 million and $1,094 million, respectively. These amounts are separately reported as accrued litigation on the consolidated balance sheet. The decrease during 2023 is primarily due to a $600 million decrease in the Company’s provision for litigation and corresponding restricted cash after a settlement became final in August 2023. This decrease was partially offset by the provisions for other litigation. See Note 21 (Legal and Regulatory Proceedings) for additional information regarding the Company’s accrued litigation.
v3.24.0.1
Pension, Postretirement and Savings Plans
12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension, Postretirement and Savings Plans Pension, Postretirement and Savings Plans
The Company and certain of its subsidiaries maintain various pension and other postretirement plans that cover substantially all employees worldwide.
Defined Contribution Plans
The Company sponsors defined contribution retirement plans. The primary plan is the Mastercard Savings Plan, a 401(k) plan for substantially all of the Company’s U.S. employees, which is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. In addition, the Company has several defined contribution plans outside of the U.S. The Company’s total expense for its defined contribution plans was $253 million, $204 million and $175 million in 2023, 2022 and 2021, respectively.
Defined Benefit and Other Postretirement Plans
The Company sponsors pension and postretirement plans for certain non-U.S. employees (the “non-U.S. Plans”) that cover various benefits specific to their country of employment. Additionally, Vocalink has a defined benefit pension plan (the “Vocalink Plan”) which was permanently closed to new entrants and future accruals as of July 21, 2013, however, plan participants’ obligations are adjusted for future salary changes. The term “Pension Plans” includes the non-U.S. Plans and the Vocalink Plan.
The Company maintains a postretirement plan providing health coverage and life insurance benefits for substantially all of its U.S. employees hired before July 1, 2007 (the “Postretirement Plan”).
The Company uses a December 31 measurement date for the Pension Plans and its Postretirement Plan (collectively the “Plans”). The Company recognizes the funded status of its Plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the consolidated balance sheet. The following table sets forth the Plans’ funded status, key assumptions and amounts recognized on the Company’s consolidated balance sheet at December 31:
 Pension PlansPostretirement Plan
 2023202220232022
 ($ in millions)
Change in benefit obligation
Benefit obligation at beginning of year$392 $596 $43 $62 
Service cost14 12 
Interest cost18 
Actuarial (gain) loss(15)(156)(16)
Benefits paid(16)(16)(6)(6)
Transfers in— — 
Foreign currency translation 19 (58)— — 
Benefit obligation at end of year420 392 46 43 
Change in plan assets
Fair value of plan assets at beginning of year430 688   
Actual gain/(loss) on plan assets(8)(203)— — 
Employer contributions16 25 
Benefits paid(16)(16)(6)(6)
Transfers in— — 
Foreign currency translation 22 (69)— — 
Fair value of plan assets at end of year449 430   
Funded status at end of year$29 $38 $(46)$(43)
Amounts recognized on the consolidated balance sheet consist of:
Noncurrent assets$38 $44 $— $— 
Other liabilities, short-term— — (3)(3)
Other liabilities, long-term(9)(6)(43)(40)
Net amounts recognized on the consolidated balance sheet
$29 $38 $(46)$(43)
Accumulated other comprehensive income consists of:
Net actuarial (gain) loss$34 $23 $(8)$(14)
Prior service credit— (1)
Balance at end of year$35 $24 $(8)$(15)
Weighted-average assumptions used to determine end of year benefit obligations
Discount rate
Non-U.S. Plans4.20 %3.80 %**
Vocalink Plan5.15 %4.80 %**
Postretirement Plan**5.00 %5.50 %
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %**
Vocalink Plan2.75 %2.70 %**
Postretirement Plan**3.00 %3.00 %
* Not applicable
At December 31, 2023 and 2022, the Company’s aggregated Pension Plan assets exceeded the benefit obligations. For plans where the benefit obligations exceeded plan assets, the projected benefit obligation, the accumulated benefit obligation and plan assets were not material at December 31, 2023 and 2022, respectively. Information on the Pension Plans were as follows as of December 31:
20232022
(in millions)
Projected benefit obligation$420 $392 
Accumulated benefit obligation419 388 
Fair value of plan assets449 430 
For the year ended December 31, 2023, the Company’s projected benefit obligation related to its Pension Plans increased $28 million, primarily attributable to foreign currency translation. For the year ended December 31, 2022, the Company’s projected benefit obligation related to its Pension Plans decreased $204 million, primarily attributable to actuarial gains related to higher discount rate assumptions.
Components of net periodic benefit cost recorded in earnings were as follows for the Plans for each of the years ended December 31:
Pension PlansPostretirement Plan
202320222021202320222021
(in millions)
Service cost$14 $12 $14 $$$
Interest cost18 
Expected return on plan assets(18)(14)(19)— — — 
Amortization of actuarial loss— — (1)— — — 
Amortization of prior service credit— — — (1)(1)(1)
Net periodic benefit cost$14 $7 $3 $2 $2 $2 
The service cost component is recognized in general and administrative expenses on the consolidated statement of operations. Net periodic benefit cost, excluding the service cost component, is recognized in other income (expense) on the consolidated statement of operations.
Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 were as follows:
Pension PlansPostretirement Plan
202320222021202320222021
(in millions)
Current year actuarial loss (gain)$11 $61 $(50)$$(16)$(7)
Amortization of prior service credit$— $— $— $$$
Total other comprehensive loss (income)$11 $61 $(50)$7 $(15)$(5)
Total net periodic benefit cost and other comprehensive loss (income)$25 $68 $(47)$9 $(13)$(3)
Assumptions
Weighted-average assumptions used to determine net periodic benefit cost were as follows for the years ended December 31:
Pension PlansPostretirement Plan
202320222021202320222021
Discount rate
Non-U.S. Plans3.80 %0.90 %0.70 %***
Vocalink Plan4.80 %1.75 %1.55 %***
Postretirement Plan***5.50 %2.75 %2.50 %
Expected return on plan assets
Non-U.S. Plans1.80 %1.60 %1.60 %***
Vocalink Plan5.25 %2.30 %3.20 %***
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %1.50 %***
Vocalink Plan2.70 %3.20 %2.75 %***
Postretirement Plan***3.00 %3.00 %3.00 %
* Not applicable
The Company’s discount rate assumptions are based on yield curves derived from high quality corporate bonds, which are matched to the expected cash flows of each respective plan. The expected return on plan assets assumptions are derived using the current and expected asset allocations of the Pension Plans’ assets and considering historical as well as expected returns on various classes of plan assets. The rates of compensation increases are determined by the Company, based upon its long-term plans for such increases.
The following additional assumptions were used at December 31 in accounting for the Postretirement Plan:
20232022
Healthcare cost trend rate assumed for next year7.00 %6.50 %
Ultimate trend rate 5.00 %5.00 %
Year that the rate reaches the ultimate trend rate86
Assets
Plan assets are managed taking into account the timing and amount of future benefit payments. The Vocalink Plan assets are managed with the following target asset allocations: cash and cash equivalents 13%, U.K. government securities 35%, fixed income 34%, equity 7% and real estate 11%. For the non-U.S. Plans, the assets are concentrated primarily in insurance contracts.
The Valuation Hierarchy of the Pension Plans’ assets is determined using a consistent application of the categorization measurements for the Company’s financial instruments. See Note 1 (Summary of Significant Accounting Policies) for additional information.
The following table sets forth by level within the Valuation Hierarchy, the Pension Plans’ assets at fair value:
December 31, 2023December 31, 2022
Quoted Prices in Active Markets (Level 1)Significant Other Observable Inputs (Level 2)Significant
Unobservable
Inputs
(Level 3)
Fair ValueQuoted Prices in Active Markets (Level 1)Significant Other Observable Inputs (Level 2)Significant
Unobservable
Inputs
(Level 3)
Fair Value
(in millions)
Cash and cash equivalents 1
$43 $— $— $43 $43 $— $— $43 
Mutual funds 2
124 109 — 233 106 128 — 234 
Insurance contracts 3
— 124 — 124 — 114 — 114 
Total$167 $233 $— $400 $149 $242 $— $391 
Investments at Net Asset Value (“NAV”) 4
49 39 
Total Plan Assets$449 $430 
1Cash and cash equivalents are valued at quoted market prices, which represent the net asset value of the shares held by the Plans.
2Certain mutual funds are valued at quoted market prices, which represent the value of the shares held by the Plans, and are therefore included in Level 1. Certain other mutual funds are valued at unit values provided by investment managers, which are based on the fair value of the underlying investments utilizing public information, independent external valuation from third-party services or third-party advisors, and are therefore included in Level 2.
3Insurance contracts are valued at unit values provided by investment managers, which are based on the fair value of the underlying investments utilizing public information, independent external valuation from third-party services or third-party advisors.
4Investments at NAV include mutual funds (comprised primarily of credit investments) and other investments (comprised primarily of real estate investments) and are valued using the net asset value provided by the administrator as a practical expedient, and therefore these investments are not included in the valuation hierarchy. These investments have quarterly redemption frequencies with redemption notice periods ranging from 60 to 90 days.
The following table summarizes expected benefit payments (as of December 31, 2023) through 2033 for the Pension Plans and the Postretirement Plan, including those payments expected to be paid from the Company’s general assets. Actual benefit payments may differ from expected benefit payments.
Pension PlansPostretirement Plan
(in millions)
2024$35 $
202518 
202616 
202722 
202822 
2029 - 2033133 20 
v3.24.0.1
Debt
12 Months Ended
Dec. 31, 2023
Debt Instruments [Abstract]  
Debt Debt
Debt consisted of the following at December 31:
20232022Effective
Interest Rate
(in millions)
Senior Notes
2023 USD Notes4.875 %Senior Notes due March 2028$750 $— 5.003 %
4.850 %Senior Notes due March 2033750 — 4.923 %
2022 EUR Notes 1
1.000 %Senior Notes due February 2029830 800 1.138 %
2021 USD Notes2.000 %Senior Notes due November 2031750 750 2.112 %
1.900 %Senior Notes due March 2031600 600 1.981 %
2.950 %Senior Notes due March 2051700 700 3.013 %
2020 USD Notes3.300 %Senior Notes due March 20271,000 1,000 3.420 %
3.350 %Senior Notes due March 20301,500 1,500 3.430 %
3.850 %Senior Notes due March 20501,500 1,500 3.896 %
2019 USD Notes2.950 %Senior Notes due June 20291,000 1,000 3.030 %
3.650 %Senior Notes due June 20491,000 1,000 3.689 %
2.000 %Senior Notes due March 2025750 750 2.147 %
2018 USD Notes3.500 %Senior Notes due February 2028500 500 3.598 %
3.950 %Senior Notes due February 2048500 500 3.990 %
2016 USD Notes2.950 %Senior Notes due November 2026750 750 3.044 %
3.800 %Senior Notes due November 2046600 600 3.893 %
2015 EUR Notes 2
2.100 %Senior Notes due December 2027885 854 2.189 %
2.500 %Senior Notes due December 2030166 160 2.562 %
2014 USD Notes3.375 %Senior Notes due April 20241,000 1,000 3.484 %
Other Debt
2023 INR Term Loan 3
9.430 %Term Loan due July 2024338 — 9.780 %
2022 INR Term Loan 4
8.640 %Term Loan due July 2023— 275 9.090 %
15,869 14,239 
Less: Unamortized discount and debt issuance costs(109)(111)
Less: Cumulative hedge accounting fair value adjustments 5
(79)(105)
Total debt outstanding15,681 14,023 
Less: Short-term debt 6
(1,337)(274)
Long-term debt$14,344 $13,749 
1€750 million euro-denominated debt issued in February 2022.
2€950 million euro-denominated debt remaining of the €1.650 billion issued in December 2015.
3INR28.1 billion Indian rupee-denominated loan issued in July 2023.
4INR22.7 billion Indian rupee-denominated loan issued in July 2022.
5The Company has an interest rate swap which is accounted for as a fair value hedge. See Note 23 (Derivative and Hedging Instruments) for additional information.
6The 2014 USD Notes due April 2024 and the INR Term Loan due July 2024 are classified as short-term debt, net of unamortized discount and debt issuance costs, on the consolidated balance sheet as of December 31, 2023. The 2022 INR Term Loan due July 2023 was classified as short-term debt, net of unamortized issuance costs, on the consolidated balance sheet as of December 31, 2022.
Scheduled annual maturities of the principal portion of long-term debt outstanding at December 31, 2023 are summarized below.
(in millions)
2024$1,338 
2025750 
2026750 
20271,885 
20281,250 
Thereafter9,896 
Total$15,869 
Senior Notes
In March 2023, the Company issued $750 million principal amount of notes due March 2028 and $750 million principal amount of notes due March 2033 (collectively the “2023 USD Notes”). The net proceeds from the issuance of the 2023 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $1.489 billion.
In February 2022, the Company issued €750 million ($830 million and $800 million as of December 31, 2023 and 2022, respectively) principal amount of notes due February 2029 (the “2022 EUR Notes”). The net proceeds from the issuance of the 2022 EUR Notes, after deducting the original issue discount, underwriting discount and offering expenses, were €743 million ($843 million as of the date of settlement).
In March 2021, the Company issued $600 million principal amount of notes due March 2031 and $700 million principal amount of notes due March 2051. In November 2021, the Company also issued $750 million principal amount of notes due November 2031. The two issuances in 2021 are collectively referred to as the “2021 USD Notes”. The net proceeds from the issuance of the 2021 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $2.024 billion.
The Senior Notes described above are not subject to any financial covenants and may be redeemed in whole, or in part, at the Company’s option at any time for a specified make-whole amount. These notes are senior unsecured obligations and would rank equally with any future unsecured and unsubordinated indebtedness.
Indian Rupee (“INR”) Term Loan
In July 2022, the Company entered into an unsecured INR22.7 billion term loan originally due July 2023 (the “2022 INR Term Loan”). The net proceeds of the 2022 INR Term Loan, after deducting issuance costs, were INR22.6 billion ($284 million as of the date of settlement).
In April 2023, the Company entered into an additional unsecured INR4.97 billion term loan, also originally due July 2023 (the “April 2023 INR Term Loan”). The stated interest rate and effective interest rate were 9.480% and 9.705%, respectively. The net proceeds of the April 2023 INR Term Loan, after deducting issuance costs, were INR4.96 billion ($61 million as of the date of settlement).
In July 2023, the Company modified and combined the 2022 INR Term Loan and April 2023 INR Term Loan (the “2023 INR Term Loan”), increasing the total unsecured loans to INR28.1 billion ($342 million as of the date of settlement). The 2023 INR Term Loan is due July 2024.
The Company obtained the INR Term Loans to serve as economic hedges to offset possible changes in the value of INR-denominated monetary assets due to foreign exchange fluctuations. The INR Term Loans are not subject to any financial covenants and they may be repaid in whole at the Company’s option at any time for a specified make-whole amount.
Commercial Paper Program and Credit Facility
As of December 31, 2023, the Company has a commercial paper program (the “Commercial Paper Program”) under which the Company is authorized to issue up to $8 billion in unsecured commercial paper notes with maturities of up to 397 days from the date of issuance. The Commercial Paper Program is available in U.S. dollars.
In conjunction with the Commercial Paper Program, the Company has a committed five-year unsecured $8 billion revolving credit facility (the “Credit Facility”). The Credit Facility, which previously was set to expire on November 10, 2027, was extended and now expires on November 8, 2028. Borrowings under the Credit Facility are available in U.S. dollars and/or euros. The facility fee under the Credit Facility is determined according to the Company’s credit rating and is payable on the average daily commitment, regardless of usage, per annum. In addition to the facility fee, interest rates on borrowings under the Credit Facility would be based
on prevailing market interest rates plus applicable margins that fluctuate based on the Company’s credit rating. The Credit Facility contains customary representations, warranties, affirmative and negative covenants, events of default and indemnification provisions. The Company was in compliance in all material respects with the covenants of the Credit Facility at December 31, 2023 and 2022.
Borrowings under the Commercial Paper Program and the Credit Facility are to be used to provide liquidity for general corporate purposes, including providing liquidity in the event of one or more settlement failures by the Company’s customers. The Company may borrow and repay amounts under the Commercial Paper Program and Credit Facility for business continuity purposes. The Company had no borrowings under the Credit Facility or the Commercial Paper Program at December 31, 2023 and 2022.
v3.24.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Classes of Capital Stock
Mastercard’s amended and restated certificate of incorporation authorizes the following classes of capital stock:
ClassPar Value Per ShareAuthorized Shares
(in millions)
Dividend and Voting Rights
A$0.00013,000 One vote per share
Dividend rights
B$0.00011,200 Non-voting
Dividend rights
Preferred$0.0001300 No shares issued or outstanding at December 31, 2023 and 2022. Dividend and voting rights are to be determined by the Board of Directors of the Company upon issuance.
Dividends
The Company declared a quarterly cash dividend on its Class A and Class B Common Stock during each of the four quarters of 2023, 2022 and 2021. The total per share dividends declared during the years ended December 31 is summarized below: 
202320222021
(in millions, except per share data)
Dividends declared per share $2.37 $2.04 $1.81 
Total dividends declared$2,231 $1,968 $1,781 
Ownership and Governance Structure
Equity ownership and voting power of the Company’s shares were allocated as follows as of December 31:
20232022
Equity OwnershipGeneral Voting PowerEquity OwnershipGeneral Voting Power
Public Investors (Class A stockholders)88.8 %89.5 %88.5 %89.3 %
Mastercard Foundation (Class A stockholders)10.4 %10.5 %10.7 %10.7 %
Principal or Affiliate Customers (Class B stockholders)0.8 %— %0.8 %— %
Class B Common Stock Conversions
Shares of Class B common stock are convertible on a one-for-one basis into shares of Class A common stock.  Entities eligible to hold Mastercard’s Class B common stock are defined in the Company’s amended and restated certificate of incorporation (generally the Company’s principal or affiliate customers), and they are restricted from retaining ownership of shares of Class A common stock.  Class B stockholders are required to subsequently sell or otherwise transfer any shares of Class A common stock received pursuant to such a conversion. 
Mastercard Foundation
In connection and simultaneously with its 2006 initial public offering (the “IPO”), the Company issued and donated 135 million newly authorized shares of Class A common stock to Mastercard Foundation. Mastercard Foundation is a private charitable foundation incorporated in Canada that is controlled by directors who are independent of the Company and its principal customers. Historically, Mastercard Foundation had been restricted from selling or otherwise transferring its shares of Class A common stock prior to May 1, 2027, except to the extent necessary to satisfy its charitable disbursement requirements. In July 2023, pursuant to an application in consultation with the Company, Mastercard Foundation received court approval to advance that date to January 1, 2024. As a result, Mastercard Foundation is now permitted to sell all or part of its remaining shares, subject to certain conditions. Mastercard Foundation would do so pursuant to an orderly and structured plan to diversify its Mastercard shares over a seven-year period, while remaining a long-term Mastercard stockholder and retaining a significant holding of Mastercard shares in its portfolio.
Common Stock Activity
The following table presents the changes in the Company’s outstanding Class A and Class B common stock:
 Outstanding Shares
 Class AClass B
(in millions)
Balance at December 31, 2020986.9 8.3 
Purchases of treasury stock(16.5)— 
Share-based payments1.2 — 
Conversion of Class B to Class A common stock0.5 (0.5)
Balance at December 31, 2021972.1 7.8 
Purchases of treasury stock(25.7)— 
Share-based payments1.8 — 
Conversion of Class B to Class A common stock0.2 (0.2)
Balance at December 31, 2022948.4 7.6 
Purchases of treasury stock(23.8)— 
Share-based payments2.3 — 
Conversion of Class B to Class A common stock0.4 (0.4)
Balance at December 31, 2023927.3 7.2 
The Company’s Board of Directors have approved share repurchase programs of its Class A Common Stock authorizing the Company to repurchase shares. The following table summarizes the Company’s share repurchase authorizations of its Class A common stock for the years ended December 31:
202320222021
(In millions, except per share data)
Board authorization$11,000 $9,000 $8,000 
Dollar-value of shares repurchased 1
$9,032 $8,753 $5,904 
Shares repurchased23.8 25.7 16.5 
Average price paid per share$379.49 $340.60 $356.82 
1The dollar-value of shares repurchased does not include a 1% excise tax that became effective January 1, 2023. The incremental tax is recorded in treasury stock on the consolidated balance sheet and is payable annually beginning in 2024.
As of December 31, 2023, the remaining authorization under the share repurchase programs approved by the Company’s Board of Directors was $14.1 billion.
v3.24.0.1
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2023 and 2022 were as follows:
December 31, 2022Increase / (Decrease)ReclassificationsDecember 31, 2023
(in millions)
Foreign currency translation adjustments 1
$(1,414)$295 $— $(1,119)
Translation adjustments on net investment hedges 2
309 (128)— 181 
Cash flow hedges
Foreign exchange contracts 3
(8)(31)22 (17)
Interest rate contracts(123)— (118)
Defined benefit pension and other postretirement plans 4
(11)(13)(1)(25)
Investment securities available-for-sale(6)— (1)
Accumulated other comprehensive income (loss)$(1,253)$128 $26 $(1,099)

December 31, 2021Increase / (Decrease)ReclassificationsDecember 31, 2022
(in millions)
Foreign currency translation adjustments 1
$(739)$(675)$— $(1,414)
Translation adjustments on net investment hedges 2
34 275 — 309 
Cash flow hedges
Foreign exchange contracts 3
(13)(8)
Interest rate contracts(128)— (123)
Defined benefit pension and other postretirement plans 4
21 (31)(1)(11)
Investment securities available-for-sale(1)(5)— (6)
Accumulated other comprehensive income (loss)$(809)$(435)$(9)$(1,253)
1During 2023, the decrease in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the appreciation of the euro and British pound against the U.S. dollar. During 2022, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro and British pound against the U.S. dollar.
2During 2023, the decrease in the accumulated other comprehensive income related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. During 2022, the increase in the accumulated other comprehensive income related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar. See Note 23 (Derivative and Hedging Instruments) for additional information.
3Certain foreign exchange derivative contracts are designated as cash flow hedging instruments. Gains and losses resulting from changes in the fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. See Note 23 (Derivative and Hedging Instruments) for additional information.
4During 2023, the increase in the accumulated other comprehensive loss related to the Plans was driven primarily by a net actuarial loss within the Pension Plans. During 2022, the increase in the accumulated other comprehensive loss related to the Plans was driven primarily by a net actuarial loss within the Pension Plans. See Note 14 (Pension, Postretirement and Savings Plans) for additional information.
v3.24.0.1
Share-Based Payments
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Additional Disclosure [Abstract]  
Share-based Payments Share-Based Payments
In May 2006, the Company granted the following awards under the Mastercard Incorporated 2006 Long Term Incentive Plan, which was amended and restated as of June 22, 2021 (the “LTIP”). The LTIP is a stockholder-approved plan that permits the grant of various types of equity awards to employees. The Company has granted Options, RSUs and PSUs under the LTIP. The Company uses the straight-line method of attribution for expensing all equity awards. Compensation expense is recorded net of estimated forfeitures, with estimates adjusted as appropriate.
There are approximately 116 million shares of Class A common stock authorized for equity awards under the LTIP. Although the LTIP permits the issuance of shares of Class B common stock, no such shares have been authorized for issuance. Shares issued as a result of Option exercises and the conversions of RSUs and PSUs were funded primarily with the issuance of new shares of Class A common stock.
Stock Options
Options expire ten years from the date of grant and vest ratably over three years for awards granted on or after March 1, 2022. For awards granted before March 1, 2022, they vest ratably over four years. For Options granted, a participant’s unvested awards are forfeited upon termination. In the event a participant terminates employment due to disability or retirement more than seven months after receiving the award, however, the participant retains all of their awards without providing additional service to the Company. Retirement eligibility is dependent upon age and years of service. Compensation expense is recognized over the vesting period as stated in the LTIP.
The fair value of each Option is estimated on the date of grant using a Black-Scholes option pricing model. The following table presents the weighted-average assumptions used in the valuation and the resulting weighted-average fair value per Option granted for the years ended December 31:
202320222021
Risk-free rate of return4.2 %1.6 %0.9 %
Expected term (in years)6.006.006.00
Expected volatility29.5 %24.6 %26.1 %
Expected dividend yield0.6 %0.6 %0.5 %
Weighted-average fair value per Option granted$123.22 $86.92 $91.70 
The risk-free rate of return was based on the U.S. Treasury yield curve in effect on the date of grant. The expected term and the expected volatility were based on historical Mastercard information. The expected dividend yields were based on the Company’s expected annual dividend rate on the date of grant.
The following table summarizes the Company’s option activity for the year ended December 31, 2023:
OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value
(in millions)(in years)(in millions)
Outstanding at January 1, 20234.7 $173 
Granted0.3 $354 
Exercised(1.9)$124 
Forfeited(0.1)$338 
Expired0.0 $283 
Outstanding at December 31, 20233.0 $217 5.0$632 
Exercisable at December 31, 20232.4 $184 4.2$581 
Options vested and expected to vest at December 31, 20233.0 $217 5.0$632 
As of December 31, 2023, there was $16 million of total unrecognized compensation cost related to non-vested Options. The cost is expected to be recognized over a weighted-average period of 1.6 years.
Restricted Stock Units
For RSUs granted on or after March 1, 2022, the awards generally vest ratably over three years. For RSUs granted on or after March 1, 2020 but before March 1, 2022, the awards generally vest ratably over four years. A participant’s unvested awards are forfeited upon termination of employment. In the event of termination due to job elimination (as defined by the Company), however, a participant will retain a pro-rata portion of the unvested awards for services performed through the date of termination. In the event a participant terminates employment due to disability or retirement more than seven months after receiving the award, the participant retains all of their awards without providing additional service to the Company. Compensation expense is recognized over the shorter of the vesting periods stated in the LTIP or the date the individual becomes eligible to retire but not less than seven months.
The following table summarizes the Company’s RSU activity for the year ended December 31, 2023:
UnitsWeighted-Average Grant-Date Fair ValueAggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20231.8 $335 
Granted1.2 $350 
Converted(0.7)$331 
Forfeited(0.1)$343 
Outstanding at December 31, 20232.2 $344 $945 
RSUs expected to vest at December 31, 20232.1 $344 $913 
The fair value of each RSU is the closing stock price on the New York Stock Exchange of the Company’s Class A common stock on the date of grant, adjusted for the exclusion of dividend equivalents. Upon vesting, a portion of the RSU award may be withheld to satisfy the minimum statutory withholding taxes. The remaining RSUs will be settled in shares of the Company’s Class A common stock after the vesting period. As of December 31, 2023, there was $372 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 1.7 years.
Performance Stock Units
PSUs vest after three years and are subject to a mandatory one-year post-vest hold, during which they are eligible for dividend equivalents. A participant’s unvested awards are forfeited upon termination of employment. In the event of termination due to job elimination (as defined by the Company), however, a participant will retain a pro-rata portion of the unvested awards for services performed through the date of termination. In the event a participant terminates employment due to disability or retirement more than seven months after receiving the award, the participant retains all of their awards without providing additional service to the Company.
The following table summarizes the Company’s PSU activity for the year ended December 31, 2023:
UnitsWeighted-Average
Grant-Date Fair Value
Aggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20230.4 $352 
Granted0.2 $365 
Converted(0.1)$296 
Other0.1 $386 
Outstanding at December 31, 20230.6 $365 $271 
PSUs expected to vest at December 31, 20230.6 $365 $266 
Since 2013, PSUs containing performance and market conditions have been issued. Performance measures used to determine the actual number of shares that vest after three years include net revenue growth, EPS growth and relative total shareholder return (“TSR”).  Relative TSR is considered a market condition, while net revenue and EPS growth are considered performance conditions.  The Monte Carlo simulation valuation model is used to determine the grant-date fair value. 
Compensation expense for PSUs is recognized over the requisite service period, or the date the individual becomes eligible to retire but not less than seven months, if it is probable that the performance target will be achieved and subsequently adjusted if the probability assessment changes. As of December 31, 2023, there was $34 million of total unrecognized compensation cost related to non-vested PSUs. The cost is expected to be recognized over a weighted-average period of 1.6 years.
Additional Information
The following table includes additional share-based payment information for each of the years ended December 31:
202320222021
(in millions, except weighted-average fair value)
Share-based compensation expense: Options, RSUs and PSUs$460 $295 $273 
Income tax benefit recognized for equity awards99 61 57 
Income tax benefit realized related to Options exercised95 49 36 
Options
Total intrinsic value of Options exercised487 231 169 
RSUs
Weighted-average grant-date fair value of awards granted 350 340 358 
Total grant-date fair value of awards vested235 305 202 
Total intrinsic value of RSUs converted into shares of Class A common stock253 420 360 
PSUs
Weighted-average grant-date fair value of awards granted365 335 385 
Total grant-date fair value of awards vested12 — 20 
Total intrinsic value of PSUs converted into shares of Class A common stock14 — 32 
v3.24.0.1
Commitments
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments Commitments
At December 31, 2023, the Company had the following future minimum payments due under noncancelable agreements, primarily related to sponsorships to promote the Mastercard brand and licensing arrangements. The Company has accrued $21 million of these future payments as of December 31, 2023.
(in millions)
2024$668 
2025634 
2026442 
2027327 
2028171 
Thereafter
Total$2,243 
v3.24.0.1
Income Taxes
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Components of Income and Income Tax Expense
The domestic and foreign components of income before income taxes for the years ended December 31 were as follows:
202320222021
(in millions)
United States$4,506 $4,228 $4,261 
Foreign9,133 7,504 6,046 
Income before income taxes$13,639 $11,732 $10,307 
The total income tax provision for the years ended December 31 is comprised of the following components:
202320222021
(in millions)
Current
Federal$991 $1,024 $663 
State and local127 133 51 
Foreign1,563 1,296 976 
2,681 2,453 1,690 
Deferred
Federal(180)(661)(31)
State and local(18)(40)(4)
Foreign(39)50 (35)
(237)(651)(70)
Income tax expense$2,444 $1,802 $1,620 
Effective Income Tax Rate
A reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate for the years ended December 31, is as follows:
202320222021
AmountPercentAmountPercentAmountPercent
($ in millions)
Income before income taxes$13,639 $11,732 $10,307 
Federal statutory tax2,864 21.0 %2,464 21.0 %2,164 21.0 %
State tax effect, net of federal benefit82 0.6 %72 0.6 %60 0.6 %
Foreign tax effect(393)(2.9)%(347)(3.0)%(283)(2.7)%
Valuation allowance - U.S. foreign tax credit327 2.4 %(333)(2.8)%— — %
U.S. tax expense on foreign operations39 0.3 %111 0.9 %63 0.6 %
Foreign-derived intangible income deduction(144)(1.1)%(129)(1.1)%(69)(0.7)%
U.S. tax benefits
— — %— — %(132)(1.3)%
Windfall benefit(88)(0.6)%(68)(0.6)%(67)(0.7)%
Other, net(243)(1.8)%32 0.3 %(116)(1.1)%
Income tax expense$2,444 17.9 %$1,802 15.4 %$1,620 15.7 %
Note: Table may not sum due to rounding.
The effective income tax rates for the years ended December 31, 2023, 2022 and 2021 were 17.9%, 15.4% and 15.7%, respectively. The effective income tax rate for 2023 was higher than the effective income tax rate for 2022, primarily due to changes in the valuation allowance associated with the deferred tax asset related to U.S. foreign tax credits. In 2022, the Company recognized a discrete tax benefit of $333 million to release the valuation allowance resulting from U.S. tax regulations published in the first
quarter of 2022 (the “2022 Regulations”). In 2023, the treatment of foreign taxes paid under the 2022 Regulations changed due to foreign tax legislation enacted in Brazil and Notice 2023-55 (the “Notice”), released by the U.S. Department of Treasury (“Treasury”). Therefore, the Company recognized a total $327 million discrete tax expense in 2023 to establish the valuation allowance. The discrete tax expense recognized in 2023 was partially offset by the Company’s ability to claim more U.S. foreign tax credits generated in 2022 and 2023 due to the Notice released by Treasury.
The effective income tax rate for 2022 was lower than the effective income tax rate for 2021, primarily due to a discrete tax benefit in the first quarter of 2022 related to final U.S. tax regulations published in 2022. These regulations resulted in a valuation allowance release of $333 million associated with the U.S. foreign tax credit carryforward deferred tax asset. The regulations limited the Company’s ability to generate foreign tax credits starting in 2022 for certain foreign taxes paid, resulting in additional U.S. tax expense. Additionally, a more favorable geographic mix of earnings in 2022 contributed to the lower effective tax rate. The lower effective income tax rate in 2022 was partially offset by:
the recognition of U.S. tax benefits in 2021 (the majority of which were discrete) resulting from a higher foreign derived intangible income deduction and greater utilization of foreign tax credits in the U.S.
a discrete tax benefit in 2021 related to the remeasurement of the Company’s net deferred tax asset in the U.K. due to an enacted tax rate change in 2021
a discrete tax expense related to an unfavorable court ruling in 2022
Singapore Income Tax Rate
In connection with the expansion of the Company’s operations in the Asia Pacific, Middle East and Africa region, the Company’s subsidiary in Singapore, Mastercard Asia Pacific Pte. Ltd. (“MAPPL”) received an incentive grant from the Singapore Ministry of Finance in 2010. The incentive had provided MAPPL with, among other benefits, a reduced income tax rate for the 10-year period commencing January 1, 2010 on taxable income in excess of a base amount. The Company continued to explore business opportunities in this region, resulting in an expansion of the incentives being granted by the Ministry of Finance, including a further reduction to the income tax rate on taxable income in excess of a revised fixed base amount commencing July 1, 2011 and continuing through December 31, 2025. Without the incentive grant, MAPPL would have been subject to the statutory income tax rate on its earnings. For 2023, 2022 and 2021, the impact of the incentive grant received from the Ministry of Finance resulted in a reduction of MAPPL’s income tax liability of $571 million, or $0.60 per diluted share, $454 million, or $0.47 per diluted share, and $300 million, or $0.30 per diluted share, respectively.
Indefinite Reinvestment
As of December 31, 2023 the Company does not accrue taxes on $3.6 billion of foreign earnings which remain permanently reinvested outside the U.S. The Company expects that taxes associated with any future repatriation of these earnings are immaterial.
Deferred Taxes
Deferred tax assets and liabilities represent the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The components of deferred tax assets and liabilities at December 31 were as follows:
20232022
(in millions)
Deferred Tax Assets
Accrued liabilities$863 $697 
Compensation and benefits335 316 
State taxes and other credits47 43 
Net operating losses149 156 
U.S. foreign tax credits635 274 
Property and equipment
277 52 
Intangible assets182 186 
Lease liabilities
158 65 
Other items156 155 
Less: Valuation allowance(758)(114)
Total Deferred Tax Assets2,044 1,830 
Deferred Tax Liabilities
Prepaid expenses and other accruals211 186 
Gains on equity investments112 132 
Goodwill and intangible assets518 561 
Right-of-use lease assets
138 58 
Other items79 135 
Total Deferred Tax Liabilities1,058 1,072 
Net Deferred Tax Assets $986 $758 
The changes in the Company’s valuation allowance on deferred tax assets were as follows:
Balance at December 31, 2020
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2021
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2022
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2023
(in millions)
U.S. foreign tax credit carryforward 1
$276 $57 $— $333 $— $(333)$— $308 $327 $635 
Net operating and capital losses 2
77 11 (6)82 23 114 12 (3)123 
Total$353 $68 $(6)$415 $23 $(324)$114 $320 $324 $758 
1The 2022 activity resulted in a full release of the valuation allowance associated with the U.S. foreign tax credit carryforward due to final U.S. tax regulations published in 2022. The 2023 activity resulted in the establishment of the valuation allowance associated with the U.S. foreign tax credit carryforward due to foreign tax legislation enacted in Brazil and the Notice released by Treasury.
2Capital losses are included within other items in the deferred tax assets section of the components of the Deferred Taxes table above.
The recognition of foreign tax credits is dependent upon the realization of future foreign source income in the appropriate foreign tax credit basket in accordance with U.S. federal income tax law. The recognition of the net operating and capital losses is dependent on the timing and character of future taxable income in the applicable jurisdictions. As of December 31, 2023, the Company had a foreign tax credit carryforward and tax effected net operating loss carryforwards of $635 million and $149 million, respectively. The foreign tax credits begin to expire in 2029 and the majority of the net operating losses can be carried forward indefinitely.
A reconciliation of the beginning and ending balance for the Company’s unrecognized tax benefits for the years ended December 31, is as follows:
202320222021
(in millions)
Beginning balance$414 $360 $388 
Additions:
Current year tax positions23 22 17 
Prior year tax positions1
16 65 
Reductions:
Prior year tax positions1
(7)(14)(31)
Settlements with tax authorities— (13)(15)
Expired statute of limitations(15)(6)(3)
Ending balance$431 $414 $360 
1Includes immaterial translational impact of currency.
As of December 31, 2023, the amount of unrecognized tax benefit was $431 million. This amount, if recognized, would reduce income tax expense by $378 million.
The Company is subject to tax in the U.S., Belgium, Singapore, the United Kingdom and various other foreign jurisdictions, as well as state and local jurisdictions. Uncertain tax positions are reviewed on an ongoing basis and are adjusted after considering facts and circumstances, including progress of tax audits, developments in case law and closing of statutes of limitation. Within the next twelve months, the Company believes that the resolution of certain federal, foreign and state and local examinations is reasonably possible and that a change in estimate, reducing unrecognized tax benefits, may occur.  While such a change may be significant, it is not possible to provide a range of the potential change until the examinations progress further or the related statutes of limitation expire. The Company has effectively settled its U.S. federal income tax obligations through 2014. With limited exception, the Company is no longer subject to state and local or foreign examinations by tax authorities for years before 2014.
v3.24.0.1
Legal and Regulatory Proceedings
12 Months Ended
Dec. 31, 2023
Legal and Regulatory Proceedings [Abstract]  
Legal and Regulatory Proceedings Legal and Regulatory Proceedings
Mastercard is a party to legal and regulatory proceedings with respect to a variety of matters in the ordinary course of business.  Some of these proceedings are based on complex claims involving substantial uncertainties and unascertainable damages.  Accordingly, it is not possible to determine the probability of loss or estimate damages, and therefore, Mastercard has not established liabilities for any of these proceedings, except as discussed below.  When the Company determines that a loss is both probable and reasonably estimable, Mastercard records a liability and discloses the amount of the liability if it is material. When a material loss contingency is only reasonably possible, Mastercard does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Unless otherwise stated below with respect to these matters, Mastercard cannot provide an estimate of the possible loss or range of loss based on one or more of the following reasons: (1) actual or potential plaintiffs have not claimed an amount of monetary damages or the amounts are unsupportable or exaggerated, (2) the matters are in early stages, (3) there is uncertainty as to the outcome of pending appeals or motions, (4) there are significant factual issues to be resolved, (5) the proceedings involve multiple defendants or potential defendants whose share of any potential financial responsibility has yet to be determined and/or (6) there are novel legal issues presented. Furthermore, except as identified with respect to the matters below, Mastercard does not believe that the outcome of any individual existing legal or regulatory proceeding to which it is a party will have a material adverse effect on its results of operations, financial condition and overall business.  However, an adverse judgment or other outcome or settlement with respect to any proceedings discussed below could result in fines or payments by Mastercard and/or could require Mastercard to change its business practices. In addition, an adverse outcome in a regulatory proceeding could lead to the filing of civil damage claims and possibly result in significant damage awards. Any of these events could have a material adverse effect on Mastercard’s results of operations, financial condition and overall business.
Interchange Litigation and Regulatory Proceedings
Mastercard’s interchange fees and other practices are subject to regulatory, legal review and/or challenges in a number of jurisdictions, including the proceedings described below. When taken as a whole, the resulting decisions, regulations and legislation with respect to interchange fees and acceptance practices may have a material adverse effect on the Company’s prospects for future growth and its overall results of operations and financial condition.
United States. In June 2005, the first of a series of complaints were filed on behalf of merchants (the majority of the complaints were styled as class actions, although a few complaints were filed on behalf of individual merchant plaintiffs) against Mastercard International, Visa U.S.A., Inc., Visa International Service Association and a number of financial institutions. Taken together, the claims in the complaints were generally brought under both Sections 1 and 2 of the Sherman Act, which prohibit monopolization and attempts or conspiracies to monopolize a particular industry, and some of these complaints contain unfair competition law claims under state law. The complaints allege, among other things, that Mastercard, Visa, and certain financial institutions conspired to set the price of interchange fees, enacted point-of-sale acceptance rules (including the “no surcharge” rule) in violation of antitrust laws and engaged in unlawful tying and bundling of certain products and services, resulting in merchants paying excessive costs for the acceptance of Mastercard and Visa credit and debit cards. The cases were consolidated for pre-trial proceedings in the U.S. District Court for the Eastern District of New York in MDL No. 1720 (the “U.S. MDL Litigation Cases”). The plaintiffs filed a consolidated class action complaint seeking treble damages.
In July 2006, the group of purported merchant class plaintiffs filed a supplemental complaint alleging that Mastercard’s initial public offering of its Class A Common Stock in May 2006 (the “IPO”) and certain purported agreements entered into between Mastercard and financial institutions in connection with the IPO: (1) violate U.S. antitrust laws and (2) constituted a fraudulent conveyance because the financial institutions allegedly attempted to release, without adequate consideration, Mastercard’s right to assess them for Mastercard’s litigation liabilities. The class plaintiffs sought treble damages and injunctive relief including, but not limited to, an order reversing and unwinding the IPO.
In February 2011, Mastercard and Mastercard International entered into each of: (1) an omnibus judgment sharing and settlement sharing agreement with Visa Inc., Visa U.S.A. Inc. and Visa International Service Association and a number of financial institutions; and (2) a Mastercard settlement and judgment sharing agreement with a number of financial institutions.  The agreements provide for the apportionment of certain costs and liabilities which Mastercard, the Visa parties and the financial institutions may incur, jointly and/or severally, in the event of an adverse judgment or settlement of one or all of the U.S. MDL Litigation Cases.  Among a number of scenarios addressed by the agreements, in the event of a global settlement involving the Visa parties, the financial institutions and Mastercard, Mastercard would pay 12% of the monetary portion of the settlement. In the event of a settlement involving only Mastercard and the financial institutions with respect to their issuance of Mastercard cards, Mastercard would pay 36% of the monetary portion of such settlement. 
In October 2012, the parties entered into a definitive settlement agreement with respect to the U.S. MDL Litigation Cases (including with respect to the claims related to the IPO) and the defendants separately entered into a settlement agreement with the individual merchant plaintiffs. The settlements included cash payments that were apportioned among the defendants pursuant to the omnibus judgment sharing and settlement sharing agreement described above. Mastercard also agreed to provide class members with a short-term reduction in default credit interchange rates and to modify certain of its business practices, including its no surcharge rule. The court granted final approval of the settlement in December 2013. Following an appeal by objectors and as a result of a reversal by the U.S. Court of Appeals for the Second Circuit, the district court divided the merchants’ claims into two separate classes - monetary damages claims (the “Damages Class”) and claims seeking changes to business practices (the “Rules Relief Class”). The court appointed separate counsel for each class.
In September 2018, the parties to the Damages Class litigation entered into a class settlement agreement to resolve the Damages Class claims, with merchants representing slightly more than 25% of the Damages Class interchange volume ultimately choosing to opt out of the settlement. The district court granted final approval of the Damages Class settlement in December 2019, which was upheld by the appellate court in March 2023 and became final in August 2023 pursuant to the terms of the agreement. Mastercard has commenced settlement negotiations with a number of the opt-out merchants and has reached settlements and/or agreements in principle to settle a number of these claims.
Separately, settlement negotiations with the Rules Relief Class are ongoing. Briefing on summary judgment motions in the Rules Relief Class and opt-out merchant cases was completed in December 2020. In September 2021, the district court granted the Rules Relief Class’s motion for class certification. In January 2024, the district court denied certain of the defendants’ motions for summary judgment and the parties are awaiting decisions on the remaining motions.
As of December 31, 2023 and 2022, Mastercard had accrued a liability of $596 million and $894 million, respectively, for the U.S. MDL Litigation Cases. During 2023, Mastercard reduced both the accrued liability and restricted cash for litigation settlement by $600 million, including accrued interest, as the Damages Class settlement became final in August 2023. As such, as of December 31,
2023, Mastercard had no balance remaining in a qualified cash settlement fund related to the Damages Class litigation. As of December 31, 2022, the Company had $589 million in a qualified cash settlement fund classified as restricted cash on its consolidated balance sheet. During 2023, Mastercard recorded additional accruals of $344 million as a result of changes in the estimate with respect to the claims of merchants who opted out of the Damages Class litigation. The liability as of December 31, 2023 for the opt-out merchants represents Mastercard’s best estimate of its probable liabilities in these matters and does not represent an estimate of a loss, if any, if the matters were litigated to a final outcome. Mastercard cannot estimate the potential liability if that were to occur.
Europe. Since May 2012, a number of United Kingdom (“U.K.”) merchants filed claims or threatened litigation against Mastercard seeking damages for excessive costs paid for acceptance of Mastercard credit and debit cards arising out of alleged anti-competitive conduct with respect to, among other things, Mastercard’s cross-border interchange fees and its U.K. and Ireland domestic interchange fees (the “U.K. Merchant claimants”). In addition, Mastercard, has faced similar filed or threatened litigation by merchants with respect to interchange rates in other countries in Europe (the “Pan-European Merchant claimants”). Mastercard has resolved a substantial amount of these damages claims through settlement or judgment. During 2023, Mastercard incurred charges of $195 million as a result of settlements with a number of U.K. and Pan-European merchants. During 2022, Mastercard incurred charges of $223 million as a result of settlements (both final and agreements in principle) with a number of U.K. merchants. During 2021, Mastercard incurred charges of $94 million to reflect both the litigation settlements and estimated attorneys’ fees with a number of U.K. and Pan-European merchants. Following these settlements, approximately £1 billion (approximately $1.3 billion as of December 31, 2023) of unresolved damages claims remain.
Mastercard continues to litigate with the remaining U.K. and Pan-European Merchant claimants and it has submitted statements of defense disputing liability and damages claims. A number of those matters are now progressing with motion practice and discovery. A hearing involving multiple merchant cases is scheduled for February 2024 concerning certain liability issues with respect to merchant claims for damages related to post-Interchange Fee Regulation consumer interchange fees as well as commercial and inter-regional interchange fees.
In a separate matter, Mastercard and Visa were served with a proposed collective action complaint in the U.K. on behalf of merchants seeking damages for commercial card transactions in both the U.K. and the European Union. In June 2023, the court denied the plaintiffs’ collective action application. In December 2023, the plaintiffs filed a revised application claiming damages against Mastercard in excess of £1 billion (approximately $1.3 billion as of December 31, 2023) and the court has scheduled a hearing on this application for April 2024.
In September 2016, a proposed collective action was filed in the United Kingdom on behalf of U.K. consumers seeking damages for intra-EEA and domestic U.K. interchange fees that were allegedly passed on to consumers by merchants between 1992 and 2008. The complaint, which seeks to leverage the European Commission’s 2007 decision on intra-EEA interchange fees, claims damages in an amount that exceeds £10 billion (approximately $13 billion as of December 31, 2023). Following various hearings since July 2017 regarding collective action and scope, in August 2021, the trial court issued a decision in which it granted class certification to the plaintiffs but narrowed the scope of the class. Since January 2023, the trial court has held hearings on various issues, including whether any causal connection existed between the levels of Mastercard’s intra-EEA interchange fees and U.K. domestic interchange fees and regarding Mastercard’s request to narrow the number of years of damages sought by the plaintiffs on statute of limitations grounds.
Mastercard has been named as a defendant in a proposed consumer collective action filed in Portugal on behalf of Portuguese consumers. The complaint, which seeks to leverage the 2019 resolution of the European Commission’s investigation of Mastercard’s central acquiring rules and interregional interchange fees, claims damages of approximately €0.4 billion (approximately $0.4 billion as of December 31, 2023) for interchange fees that were allegedly passed on to consumers by Portuguese merchants for a period of approximately 20 years. Mastercard has submitted a statement of defense that disputes both liability and damages.
In April 2023, the Serbian Competition Commission issued a Statement of Objections (“SO”) against Mastercard. The SO covers historic domestic interchange fees from 2013 to 2018. The SO seeks monetary fines and costs but no business practices changes.
Australia. In May 2022, the Australian Competition & Consumer Commission (“ACCC”) filed a complaint targeting certain agreements entered into by Mastercard and certain Australian merchants related to Mastercard’s debit program. The ACCC alleges that by entering into such agreements, Mastercard engaged in conduct with the purpose of substantially lessening competition in the supply of debit card acceptance services. The ACCC seeks both declaratory relief and monetary fines and costs. A hearing on liability issues has been scheduled for March 2025.
ATM Non-Discrimination Rule Surcharge Complaints
United States. In October 2011, a trade association of independent Automated Teller Machine (“ATM”) operators and 13 independent ATM operators filed a complaint styled as a class action lawsuit in the U.S. District Court for the District of Columbia against both Mastercard and Visa (the “ATM Operators Complaint”).  Plaintiffs seek to represent a class of non-bank operators of ATM terminals that operate in the United States with the discretion to determine the price of the ATM access fee for the terminals they operate. Plaintiffs allege that Mastercard and Visa have violated Section 1 of the Sherman Act by imposing rules that require ATM operators to charge non-discriminatory ATM surcharges for transactions processed over Mastercard’s and Visa’s respective networks that are not greater than the surcharge for transactions over other networks accepted at the same ATM.  Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. 
Subsequently, multiple related complaints were filed in the U.S. District Court for the District of Columbia alleging both federal antitrust and multiple state unfair competition, consumer protection and common law claims against Mastercard and Visa on behalf of putative classes of users of ATM services (the “ATM Consumer Complaints”).  The claims in these actions largely mirror the allegations made in the ATM Operators Complaint, although these complaints seek damages on behalf of consumers of ATM services who pay allegedly inflated ATM fees at both bank and non-bank ATM operators as a result of the defendants’ ATM rules.  Plaintiffs seek both injunctive and monetary relief equal to treble the damages they claim to have sustained as a result of the alleged violations and their costs of suit, including attorneys’ fees. 
In January 2012, the plaintiffs in the ATM Operators Complaint and the ATM Consumer Complaints filed amended class action complaints that largely mirror their prior complaints. In September 2019, the plaintiffs filed with the district court their motions for class certification in which the plaintiffs, in aggregate, allege over $1 billion in damages against all of the defendants. In August 2021, the trial court issued an order granting the plaintiffs’ request for class certification. In July 2023, the D.C. Circuit Court affirmed the district court order granting class certification. In January 2024, the defendants requested that the U.S. Supreme Court hear the defendants’ appeal of the certification decision.
Europe. Mastercard was named as a defendant in an action brought by Euronet 360 Finance Limited, Euronet Polska Spolka z.o.o. and Euronet Services spol. s.r.o. (“Euronet”) alleging that certain rules affecting ATM access fees in Poland, the Czech Republic and Greece by Visa and Mastercard, and certain of their subsidiaries, breach various competition laws. Euronet sought damages, costs and injunctive relief to prevent the defendants from enforcing these rules. The matter was resolved via a settlement in October 2023.
U.S. Liability Shift Litigation
In March 2016, a proposed U.S. merchant class action complaint was filed in federal court in California alleging that Mastercard, Visa, American Express and Discover (the “Network Defendants”), EMVCo, and a number of issuing banks (the “Bank Defendants”) engaged in a conspiracy to shift fraud liability for card present transactions from issuing banks to merchants not yet in compliance with the standards for EMV chip cards in the United States (the “EMV Liability Shift”), in violation of the Sherman Act and California law. Plaintiffs allege damages equal to the value of all chargebacks for which class members became liable as a result of the EMV Liability Shift on October 1, 2015. The plaintiffs seek treble damages, attorney’s fees and costs and an injunction against future violations of governing law, and the defendants filed a motion to dismiss. In September 2016, the district court denied the Network Defendants’ motion to dismiss the complaint, but granted such a motion for EMVCo and the Bank Defendants. In May 2017, the district court transferred the case to New York so that discovery could be coordinated with the U.S. MDL Litigation Cases described above. In August 2020, the district court issued an order granting the plaintiffs’ request for class certification and in January 2021, the Network Defendants’ request for permission to appeal that decision was denied. The plaintiffs have submitted expert reports that allege aggregate damages in excess of $1 billion against the four Network Defendants. The Network Defendants have submitted expert reports rebutting both liability and damages and all briefs on summary judgment have been submitted.
Telephone Consumer Protection Class Action
Mastercard is a defendant in a Telephone Consumer Protection Act (“TCPA”) class action pending in Florida. The plaintiffs are individuals and businesses who allege that approximately 381,000 unsolicited faxes were sent to them advertising a Mastercard co-brand card issued by First Arkansas Bank (“FAB”). The TCPA provides for uncapped statutory damages of $500 per fax. Mastercard has asserted various defenses to the claims, and has notified FAB of an indemnity claim that it has (which FAB has disputed). In December 2019, the Federal Communications Commission (“FCC”) issued a declaratory ruling clarifying that the TCPA does not apply to faxes sent to online fax services that are received online via email. In December 2021, the trial court granted plaintiffs’ request for class certification, but narrowed the scope of the class to stand alone fax recipients only. Mastercard’s request to appeal that decision was denied. Briefing on plaintiffs’ motion to amend the class definition and Mastercard’s cross-motion to decertify the stand alone fax recipient class was completed in April 2023.
U.S. Federal Trade Commission Investigation
In June 2020, the U.S. Federal Trade Commission’s Bureau of Competition (“FTC”) informed Mastercard that it initiated a formal investigation into compliance with the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act. In particular, the investigation focused on Mastercard’s compliance with the debit routing provisions of the Durbin Amendment.  In December 2022, the FTC voted to issue an administrative complaint and accept a consent agreement with Mastercard. Pursuant to this agreement, Mastercard agreed to provide primary account numbers (PANs) so that merchants can route tokenized online debit transactions to alternative networks. The consent agreement does not include any monetary penalty. Following a public comment period, the FTC finalized the consent agreement in May 2023.
U.S. Department of Justice Investigation
In March 2023, Mastercard received a Civil Investigative Demand (“CID”) from the U.S. Department of Justice Antitrust Division (“DOJ”) seeking documents and information regarding a potential violation of Sections 1 or 2 of the Sherman Act. The CID focuses on Mastercard’s U.S. debit program and competition with other payment networks and technologies. Mastercard is cooperating with the DOJ in connection with the CID.
v3.24.0.1
Settlement and Other Risk Management
12 Months Ended
Dec. 31, 2023
Settlement and Other Risk Management [Abstract]  
Settlement and Other Risk Management Settlement and Other Risk Management
Mastercard’s rules guarantee the settlement of many of the payment network transactions between its customers (“settlement risk”). Settlement exposure is the settlement risk to customers under Mastercard’s rules due to the difference in timing between the payment transaction date and subsequent settlement. For those transactions the Company guarantees, the guarantee will cover the full amount of the settlement obligation to the extent the settlement obligation is not otherwise satisfied. The duration of the settlement exposure is short-term and generally limited to a few days.
Gross settlement exposure is estimated using the average daily payment volume during the three months prior to period end multiplied by the estimated number of days of exposure. The Company has global risk management policies and procedures, which include risk standards, to provide a framework for managing the Company’s settlement risk and exposure. In the event of failed settlement by a customer, Mastercard may pursue one or more remedies available under the Company’s rules to recover potential losses. Historically, the Company has experienced a low level of losses from customer settlement failures.
As part of its policies, Mastercard requires certain customers that do not meet the Company’s risk standards to enter into risk mitigation arrangements, including cash collateral and/or forms of credit enhancement such as letters of credit and guarantees. This requirement is based on a review of the individual risk circumstances for each customer. Mastercard monitors its credit risk portfolio and the adequacy of its risk mitigation arrangements on a regular basis. Additionally, from time to time, the Company reviews its risk management methodology and standards. As such, the amounts of estimated settlement exposure are revised as necessary.
The Company’s estimated settlement exposure was as follows at December 31:
20232022
(in millions)
Gross settlement exposure$75,023 $64,885 
Risk mitigation arrangements applied to settlement exposure 1
(12,167)(9,224)
Net settlement exposure 1
$62,856 $55,661 
1The Company corrected its estimated net settlement exposure as of December 31, 2022. The correction was not material to the net settlement exposures previously reported and had no impact to any of the Company’s financial statement line items.
Mastercard also provides guarantees to customers and certain other counterparties indemnifying them from losses stemming from failures of third parties to perform duties. This includes guarantees of Mastercard-branded travelers cheques issued, but not yet cashed of $340 million and $342 million at December 31, 2023 and 2022, respectively, of which the Company has risk mitigation arrangements for $272 million and $273 million at December 31, 2023 and 2022, respectively. In addition, the Company enters into agreements in the ordinary course of business under which the Company agrees to indemnify third parties against damages, losses and expenses incurred in connection with legal and other proceedings arising from relationships or transactions with the Company. Certain indemnifications do not provide a stated maximum exposure. As the extent of the Company’s obligations under these agreements depends entirely upon the occurrence of future events, the Company’s potential future liability under these agreements is not determinable. Historically, payments made by the Company under these types of contractual arrangements have not been material.
v3.24.0.1
Derivative and Hedging Instruments
12 Months Ended
Dec. 31, 2023
Summary of Derivative Instruments [Abstract]  
Derivative and Hedging Instruments Derivative and Hedging Instruments
The Company monitors and manages its foreign currency and interest rate exposures as part of its overall risk management program which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on its operating results.  A primary objective of the Company’s risk management strategies is to reduce the financial impact that may arise from volatility in foreign currency exchange rates principally through the use of both foreign exchange derivative contracts and foreign currency denominated debt. In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances. The Company does not enter into derivatives for speculative purposes.
Cash Flow Hedges
The Company may enter into foreign exchange derivative contracts, including forwards and options, to manage the impact of foreign currency variability on anticipated revenues and expenses, which fluctuate based on currencies other than the functional currency of the entity. The objective of these hedging activities is to reduce the effect of movement in foreign exchange rates for a portion of revenues and expenses forecasted to occur. As these contracts are designated as cash flow hedging instruments, gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and are subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings.
In addition, the Company may enter into interest rate derivative contracts to manage the effects of interest rate movements on the Company’s aggregate liability portfolio, including potential future debt issuances, and designate such derivatives as hedging instruments in a cash flow hedging relationship. Gains and losses resulting from changes in fair value of these contracts are deferred in accumulated other comprehensive income (loss) and are subsequently reclassified as an adjustment to interest expense over the respective terms of the hedged debt issuances. As of December 31, 2023, a cumulative loss of $118 million, after tax, remains in accumulated other comprehensive income (loss) associated with these contracts and will be reclassified as an adjustment to interest expense over the respective terms of the 2020 USD Notes due in March 2030 and March 2050.
Fair Value Hedges
The Company may enter into interest rate derivative contracts, including interest rate swaps, to manage the effects of interest rate movements on the fair value of the Company's fixed-rate debt and designate such derivatives as hedging instruments in a fair value hedging relationship. Changes in fair value of these contracts and changes in fair value of fixed-rate debt attributable to changes in the hedged benchmark interest rate generally offset each other and are recorded in interest expense on the consolidated statement of operations. Gains and losses related to the net settlements of interest rate swaps are also recorded in interest expense on the consolidated statement of operations. The periodic cash settlements are included in operating activities on the consolidated statement of cash flows.
In 2021, the Company entered into an interest rate swap designated as a fair value hedge related to $1.0 billion of the 3.850% Senior Notes due March 2050. In effect, the interest rate swap synthetically converts the fixed interest rate on this debt to a variable interest rate based on the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap Rate. The net impact to interest expense for the years ended December 31, 2023, 2022 and 2021 was not material.
Net Investment Hedges
The Company may use foreign currency denominated debt and/or foreign exchange derivative contracts to hedge a portion of its net investment in foreign subsidiaries against adverse movements in exchange rates. The effective portion of the net investment hedge is recorded as a currency translation adjustment in accumulated other comprehensive income (loss). Forward points are excluded from the effectiveness assessment and are recognized in general and administrative expenses on the consolidated statement of operations over the hedge period. The amounts recognized in earnings related to forward points for 2023, 2022 and 2021 were not material.
In 2015 and 2022, the Company designated its €1,650 million and €750 million euro-denominated debt, respectively, as hedges of a portion of its net investment in its European operations. In 2022, €700 million of the 2015 euro-denominated debt matured and was de-designated as a net investment hedge. In 2023, the Company de-designated an aggregate notional amount of €2,825 million foreign exchange derivative contracts and €109 million of the euro-denominated debt as net investment hedges to effectively manage changes in its net investment exposures in foreign subsidiaries. The Company accounts for the de-designated foreign exchange derivative contracts as economic hedges as of the de-designation date. The foreign currency transaction gains and losses on the euro-denominated debt that is not designated as a hedging instrument for accounting purposes are recorded in general and administrative expenses on the consolidated statement of operations, net as of the de-designation date. The de-designated foreign exchange derivative contracts and euro-denominated debt will serve as economic hedges to offset possible changes in monetary assets due to foreign exchange fluctuations.
As of December 31, 2023 and 2022, the Company had €1.6 billion and €1.7 billion euro-denominated debt outstanding designated as hedges of a portion of its net investment in its European operations, respectively. During 2023, 2022 and 2021 the Company recorded a pre-tax net foreign currency loss of $67 million, gain of $176 million and gain of $155 million, respectively, in other comprehensive income (loss).
As of December 31, 2023 and 2022, the Company had net foreign currency gains of $181 million and $309 million, after tax, respectively, in accumulated other comprehensive income (loss) associated with this hedging activity.
Non-designated Derivatives
The Company may also enter into foreign exchange derivative contracts to serve as economic hedges, such as to offset possible changes in the value of monetary assets and liabilities due to foreign exchange fluctuations, without designating these derivative contracts as hedging instruments. In addition, the Company is subject to foreign exchange risk as part of its daily settlement activities. This risk is typically limited to a few days between when a payment transaction takes place and the subsequent settlement with customers. To manage this risk, the Company may enter into short duration foreign exchange derivative contracts based upon anticipated receipts and disbursements for the respective currency position. The objective of these activities is to reduce the Company’s exposure to volatility arising from gains and losses resulting from fluctuations of foreign currencies against its functional currencies. Gains and losses resulting from changes in fair value of these contracts are recorded in general and administrative expenses on the consolidated statement of operations, net, along with the foreign currency gains and losses on monetary assets and liabilities.
The following table summarizes the fair value of the Company’s derivative financial instruments and the related notional amounts:
December 31, 2023December 31, 2022
 NotionalDerivative AssetsDerivative LiabilitiesNotionalDerivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments
Foreign exchange contracts in a cash flow hedge 1
$1,006 $$25 $642 $$15 
Interest rate contracts in a fair value hedge 2
1,000 — 79 1,000 — 105 
Foreign exchange contracts in a net investment hedge 1
— — — 1,814 103 
Derivatives not designated as hedging instruments
Foreign exchange contracts 1
5,424 34 79 521 
Total derivative assets/liabilities$7,430 $36 $183 $3,977 $108 $126 
1Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets and other current liabilities, respectively, on the consolidated balance sheet.
2Interest rate derivative liabilities are included within other current liabilities and other liabilities on the consolidated balance sheet.
The pre-tax gain (loss) related to the Company's derivative financial instruments designated as hedging instruments are as follows:
Gain (Loss) Recognized in OCIGain (Loss) Reclassified from AOCI
Year ended December 31,Location of Gain (Loss) Reclassified from AOCI into EarningsYear ended December 31,
202320222021202320222021
(in millions)(in millions)
Derivative financial instruments in a cash flow hedge relationship:
Foreign exchange contracts$(41)$$Net revenue$(29)$16 $
Interest rate contracts$— $— $— Interest expense$(6)$(6)$(6)
Derivative financial instruments in a net investment hedge relationship:
Foreign exchange contracts $(98)$177 $114 
The Company estimates that the pre-tax amount of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at December 31, 2023 that will be reclassified into the consolidated statement of operations within the next 12 months is not material. The term of the foreign exchange derivative contracts designated in hedging relationships are generally less than 18 months.
The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below:
 Year ended December 31,
Derivatives not designated as hedging instruments:202320222021
 (in millions)
Foreign exchange contracts
General and administrative$42 $21 $(10)
The Company’s derivative financial instruments are subject to both market and counterparty credit risk. Market risk is the potential for economic losses to be incurred on market risk sensitive instruments arising from adverse changes in market factors such as foreign currency exchange rates, interest rates and other related variables. Counterparty credit risk is the risk of loss due to failure of the counterparty to perform its obligations in accordance with contractual terms. The Company’s derivative contracts are subject to enforceable master netting arrangements, which contain various netting and setoff provisions. However, the Company has elected to present derivative assets and liabilities on a gross basis on the consolidated balance sheet. To mitigate counterparty credit risk, the Company enters into derivative contracts with a diversified group of selected financial institutions based upon their credit ratings and other factors. Generally, the Company does not obtain collateral related to derivatives because of the high credit ratings of the counterparties.
v3.24.0.1
Segment Reporting
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Mastercard has concluded it has one reportable operating segment, “Payment Solutions.” Mastercard’s Chief Executive Officer has been identified as the chief operating decision-maker. All of the Company’s activities are interrelated, and each activity is dependent upon and supportive of the other. Accordingly, all significant operating decisions are based upon analysis of Mastercard at the consolidated level.
Revenue by geographic market is based on the location of the Company’s customer that issued the card, the location of the merchant acquirer where the card is being used or the location of the customer receiving services. Revenue generated in the U.S. was approximately 30% of net revenue in 2023, 33% in 2022 and 32% in 2021. No individual country, other than the U.S., generated more than 10% of net revenue in those periods. Mastercard did not have any individual customer that generated greater than 10% of net revenue in 2023, 2022 or 2021.
The following table reflects the geographical location of the Company’s property, equipment and right-of-use assets, net, as of December 31:
202320222021
(in millions)
United States$1,027 $1,123 $1,117 
Other countries1,034 883 790 
Total$2,061 $2,006 $1,907 
v3.24.0.1
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2023
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements
During the three months ended December 31, 2023, certain of our officers and directors adopted or terminated trading arrangements for the sale of shares of our common stock as follows:
ActionDatePlansNumber of Securities to be SoldExpiration
Rule 10b5-1 1
Non-Rule 10b5-1 2
Michael Miebach,
President and Chief Executive Officer
AdoptionNovember 2, 2023X-23,552 shares of Class A Common Stock underlying employee stock optionsThe earlier of (i) the date when all securities under plan are exercised and sold and (ii) November 15, 2024
Raja Rajamannar,
Chief Marketing and Communications Officer
AdoptionNovember 28, 2023X-(i) 48,112 shares of Class A Common Stock underlying employee stock options and (ii) 12,000 shares of Class A Common StockThe earlier of (i) the date when all securities under plan are exercised and sold and (ii) November 28, 2024
1Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
2Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
Rule 10b5-1 Arrangement Adopted true
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Michael Miebach [Member]  
Trading Arrangements, by Individual  
Name Michael Miebach
Title President and Chief Executive Officer
Rule 10b5-1 Arrangement Adopted true
Arrangement Duration 379 days
Raja Rajamannar [Member]  
Trading Arrangements, by Individual  
Name Raja Rajamannar
Title Chief Marketing and Communications Officer
Rule 10b5-1 Arrangement Adopted true
Arrangement Duration 366 days
Trading Arrangement, Class A Common Stock Underlying Employee Stock Options [Member] | Michael Miebach [Member]  
Trading Arrangements, by Individual  
Aggregate Available 23,552
Trading Arrangement, Class A Common Stock Underlying Employee Stock Options [Member] | Raja Rajamannar [Member]  
Trading Arrangements, by Individual  
Aggregate Available 48,112
Trading Arrangement, Class A Common Stock [Member] | Raja Rajamannar [Member]  
Trading Arrangements, by Individual  
Aggregate Available 12,000
v3.24.0.1
Summary of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Organization
Organization
Mastercard Incorporated and its consolidated subsidiaries, including Mastercard International Incorporated (“Mastercard International” and together with Mastercard Incorporated, “Mastercard” or the “Company”), is a technology company in the global payments industry. Mastercard connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic forms of payment and making those payment transactions safe, simple, smart and accessible. The Company makes payments easier and more efficient by providing a wide range of payment solutions and services through its family of well-known and trusted brands, including Mastercard®, Maestro® and Cirrus®. The Company operates a multi-rail payments network that provides choice and flexibility for consumers, merchants and Mastercard customers. Through its unique and proprietary core global payments network, the Company switches (authorizes, clears and settles) payment transactions. The Company has additional payments capabilities that include automated clearing house (“ACH”) transactions (both batch and real-time account-based payments). Using these capabilities, the Company offers payment products and services and captures new payment flows. The Company’s value-added services include, among others, cyber and intelligence solutions designed to allow all parties to transact securely, easily and with confidence, as well as other services that provide proprietary insights, drawing on Mastercard’s principled and responsible use of secure consumer and merchant data. The Company’s investments in new networks, such as open banking solutions and digital identity capabilities, support and strengthen payments and services solutions. Each of the Company’s capabilities support and build upon each other and are fundamentally interdependent. For the core global payments network, Mastercard’s franchise model sets the standards and ground-rules that balance value and risk across all stakeholders and allows for interoperability among them. The Company employs a multi-layered approach to help protect the global payments ecosystem in which it operates.
Mastercard is not a financial institution. The Company does not issue cards, extend credit, determine or receive revenue from interest rates or other fees charged to account holders by issuers, or establish the rates charged by acquirers in connection with merchants’ acceptance of the Company’s products. In most cases, account holder relationships belong to, and are managed by, the Company’s financial institution customers.
Consolidation and Basis of Presentation
Consolidation and basis of presentation - The consolidated financial statements include the accounts of Mastercard and its majority-owned and controlled entities, including any variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Investments in VIEs for which the Company is not considered the primary beneficiary are not consolidated and are accounted for as marketable, equity method or measurement alternative method investments and recorded in other assets on the consolidated balance sheet.  At December 31, 2023 and 2022, there were no significant VIEs which required consolidation and the investments were not considered material to the consolidated financial statements. The Company consolidates acquisitions as of the date on which the Company has obtained a controlling financial interest. Intercompany transactions and balances have been eliminated in consolidation. Prior period amounts have been reclassified to conform to the 2023 presentation. The reclassifications had no impact on previously reported total net revenue, operating income or net income. The Company follows accounting principles generally accepted in the United States of America (“GAAP”).
Non-controlling interests represent the equity interest not owned by the Company and are recorded for consolidated entities in which the Company owns less than 100% of the interests. Changes in a parent’s ownership interest while the parent retains its controlling interest are accounted for as equity transactions, and upon loss of control, retained ownership interests are remeasured at fair value, with any gain or loss recognized in earnings. For 2023, 2022 and 2021, net income/(losses) attributable to non-controlling interests were not material and, as a result, amounts are included on the consolidated statement of operations within other income (expense).
Use of Estimates Policy
Use of estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of December 31, 2023 and through the date of this Report. The accounting estimates used in the preparation of the Company’s consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates.
Revenue Recognition Policy
Revenue recognition - Revenue is recognized to depict the transfer of promised services to customers in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services.
Revenue from the Company’s payment network is primarily generated by charging fees to customers (issuers, acquirers and other market participants) for providing switching and other network-related services, as well as by charging fees to customers based primarily on the gross dollar volume of activity (GDV, which includes both domestic and cross-border volume) on the cards that carry the Company’s brands. Revenue is recognized in the period in which the related transactions and volume occur. Certain volume-based revenue is determined from information reported by customers.
Revenue from the Company’s value-added services and solutions is generated through either fixed or transaction-based fees. These services and solutions can be integrated and sold with the Company’s payment network services or can be sold on a stand-alone basis. Revenue from the Company’s value-added services and solutions is recognized in the period in which the related services and solutions are performed or transactions occur. For services provided to customers where delivery involves the use of a third-party, the Company recognizes revenue on a gross basis if it acts as the principal, controlling the service to the customer, or on a net basis if it acts as the agent, arranging for the service to be provided.
Mastercard has business agreements with certain customers that provide for rebates and incentives within net revenue that could be either fixed or variable. Fixed incentives typically represent payments to a customer directly related to entering into an agreement, which are generally capitalized and amortized over the life of the agreement on a straight-line basis. Variable rebates and incentives are recorded primarily when volume- and transaction-based revenues are recognized over the contractual term. Variable rebates and incentives are calculated based upon estimated customer performance, such as volume thresholds, and the terms of the related business agreements.
Certain of the Company’s contracts may include options to receive additional value-added services and solutions. The Company accounts for the option as a distinct performance obligation if the option provides a material right to the customer. Material rights are incremental to the standard offerings, which a customer would not have received without entering into the contract. If a material right exists in a contract, revenue allocated to the option is deferred and recognized as revenue when those future products or services are transferred or when the option expires. The value of the option is based on observable prices in the contract or on a relative standalone selling price (“SSP”) basis. The SSP is the price at which the Company would sell a promised product or service separately in similar circumstances to similar customers.
Contract assets include unbilled consideration typically resulting from executed value-added services and solutions performed for customers in connection with Mastercard’s payments network service arrangements. Collection for these services typically occurs over the contractual term. Contract assets are included in prepaid expenses and other current assets and other assets on the consolidated balance sheet.
The Company defers the recognition of revenue when consideration has been received prior to the satisfaction of performance obligations. As these performance obligations are satisfied, revenue is subsequently recognized. Deferred revenue primarily relates to certain value-added services and solutions. Deferred revenue is included in other current liabilities and other liabilities on the consolidated balance sheet.
Business Combinations Policy Business combinations - The Company accounts for business combinations under the acquisition method of accounting. The Company measures the tangible and intangible identifiable assets acquired, liabilities assumed, any non-controlling interest in the acquiree and contingent consideration at fair value as of the acquisition date. Acquisition-related costs are expensed as incurred and are included in general and administrative expenses on the consolidated statement of operations. Any excess purchase price over the fair value of net assets acquired, including identifiable intangible assets, is recorded as goodwill. Measurement period adjustments, if any, to the preliminary estimated fair value of the intangibles assets as of the acquisition date are recorded in goodwill.
Intangible Assets and Impairment of Assets Policy
Goodwill and other intangible assets - Indefinite-lived intangible assets consist of goodwill and customer relationships. Goodwill represents the synergies expected to arise after the acquisition date and the assembled workforce. Finite-lived intangible assets consist of capitalized software costs, other intangible assets acquired in business combinations (including customer relationships and acquired technology) and other intangible assets. Intangible assets with finite useful lives are amortized over their estimated useful lives, on a straight-line basis, which range from one to twenty years. Capitalized software includes internal and external costs incurred directly related to the design, development and testing phases of each capitalized software project.
The valuation methods for goodwill and other intangible assets acquired in business combinations involve assumptions concerning comparable company multiples, discount rates, growth projections and other assumptions of future business conditions. The Company uses various valuation techniques to determine the fair value of its intangible assets, primarily discounted cash flows analysis, relief-from-royalty and multi-period excess earnings. As the assumptions employed to measure these assets are based on
management’s judgment using internal and external data, these fair value determinations are classified in Level 3 of the Valuation Hierarchy (as defined in Fair value subsection below).
Impairment of assets - Goodwill and indefinite-lived intangible assets are not amortized but tested annually for impairment at the reporting unit level in the fourth quarter, or sooner when circumstances indicate an impairment may exist. The impairment evaluation for goodwill utilizes a qualitative assessment to determine whether it is more likely than not that goodwill is impaired. The qualitative factors may include, but are not limited to, macroeconomic conditions, industry and market conditions, operating environment, financial performance and other relevant events. If it is determined that it is more likely than not that goodwill is impaired, then the Company is required to perform a quantitative goodwill impairment test. If the fair value of the reporting unit exceeds the carrying value, goodwill is not impaired. If the fair value of the reporting unit is less than its carrying value, goodwill is impaired and the excess of the reporting unit’s carrying value over the fair value is recognized as an impairment charge.
The impairment test for indefinite-lived intangible assets consists of a qualitative assessment to evaluate relevant events and circumstances that could affect the significant inputs used to determine the fair value of indefinite-lived intangible assets. If the qualitative assessment indicates that it is more likely than not that indefinite-lived intangible assets are impaired, then a quantitative assessment is required.  If the fair value of the indefinite-lived intangible asset exceeds the carrying value, the asset is not impaired. If the fair value of the indefinite-lived intangible asset is less than its carrying value, the asset is impaired and the excess of the asset’s carrying value over the fair value is recognized as an impairment charge.
Long-lived assets, other than goodwill and indefinite-lived intangible assets, are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable. If the carrying value of the asset cannot be recovered from estimated future cash flows, undiscounted and without interest, the fair value of the asset is calculated using the present value of estimated net future cash flows. If the carrying amount of the asset exceeds its fair value, an impairment is recorded.
Impairment charges, if any, are recorded in general and administrative expenses on the consolidated statement of operations.
Litigation Policy
Litigation - The Company is a party to certain legal and regulatory proceedings with respect to a variety of matters. The Company evaluates the likelihood of an unfavorable outcome of all legal or regulatory proceedings to which it is a party and accrues a loss contingency when the loss is probable and reasonably estimable. Loss contingencies are recorded in provision for litigation on the consolidated statement of operations. These judgments are subjective based on the status of the legal or regulatory proceedings, the merits of its defenses and consultation with in-house and external legal counsel. Legal costs are expensed as incurred and recorded in general and administrative expenses on the consolidated statement of operations.
Settlement and Other Risk Management Policy
Settlement and other risk management - Mastercard’s rules guarantee the settlement of many of the payment network transactions between its customers. Settlement exposure is the outstanding settlement risk to customers under Mastercard’s rules due to the difference in timing between the payment transaction date and subsequent settlement. For those transactions the Company guarantees, the guarantee will cover the full amount of the settlement obligation to the extent the settlement obligation is not otherwise satisfied. The duration of the settlement exposure is short-term and generally limited to a few days.
The Company also enters into agreements in the ordinary course of business under which the Company agrees to indemnify third parties against damages, losses and expenses incurred in connection with legal and other proceedings arising from relationships or transactions with the Company. As the extent of the Company’s obligations under these agreements depends entirely upon the occurrence of future events, the Company’s potential future liability under these agreements is not determinable.
The Company accounts for each of its guarantees by recording the guarantee at its fair value at the inception or modification date through earnings.
Settlement assets/obligations - The Company operates systems for settling payment transactions among participants in the payments ecosystem in which the Company operates. Settlement is generally completed on a same-day basis. In some circumstances, however, funds may not settle until subsequent business days. In addition, the Company may receive or post funds in advance of transactions related to certain payment capabilities over its multi-rail payments network. The Company classifies the balances arising from these various activities as settlement assets and settlement obligations.
Income Taxes Policy
Income taxes - The Company follows an asset and liability based approach in accounting for income taxes as required under GAAP. Deferred income tax assets and liabilities are recorded to reflect the tax consequences on future years of temporary differences between the financial statement carrying amounts and income tax bases of assets and liabilities. Deferred income taxes are displayed separately as noncurrent assets and liabilities on the consolidated balance sheet. Valuation allowances are provided against assets which are not more likely than not to be realized. The Company recognizes all material tax positions, including uncertain tax positions in which it is more likely than not that the position will be sustained based on its technical merits and if challenged by the relevant taxing authorities. At each balance sheet date, unresolved uncertain tax positions are reassessed to determine whether subsequent developments require a change in the amount of recognized tax benefit. The allowance for uncertain tax positions is recorded in other current and noncurrent liabilities on the consolidated balance sheet. The Company
records interest expense related to income tax matters as interest expense on the consolidated statement of operations. The Company includes penalties related to income tax matters in the income tax provision.
Cash and Cash Equivalents and Restricted Cash Policy
Cash and cash equivalents - Cash and cash equivalents include certain investments with daily liquidity and with an original maturity of three months or less from the date of purchase. Cash equivalents are recorded at cost, which approximates fair value.
Restricted cash - The Company classifies cash and cash equivalents as restricted when it is unavailable for withdrawal or use in its general operations. The Company has the following types of restricted cash and restricted cash equivalents which are included in the reconciliation of beginning-of-period and end-of-period amounts shown on the consolidated statement of cash flows:
Restricted cash for litigation settlement - The Company had restricted cash for litigation within a qualified settlement fund related to the settlement agreement for the U.S. merchant class litigation. During 2023, the Company fully reduced its Restricted cash for litigation settlement balance as the settlement became final in August 2023. Refer to Note 21 (Legal and Regulatory Proceedings) for further details.
Restricted security deposits held for customers - The Company requires certain customers to enter into risk mitigation arrangements, including cash collateral and/or other forms of credit enhancement such as letters of credit and guarantees, for settlement of their transactions. Certain risk mitigation arrangements for settlement, such as standby letters of credit and bank guarantees, are not recorded on the consolidated balance sheet. The Company also holds cash deposits and certificates of deposit from certain customers as collateral for settlement of their transactions, which are recorded as assets on the consolidated balance sheet. These assets are fully offset by corresponding liabilities included on the consolidated balance sheet. The amount of these security deposits and the duration held are determined by the risk profile of the individual customer and the Company’s risk management practices.
Other restricted cash balances - The Company has other restricted cash balances which include contractually restricted deposits, as well as cash balances that are restricted based on the Company’s intention with regard to usage. These funds are classified on the consolidated balance sheet within prepaid expenses and other current assets and other assets.
Fair Value Policy
Fair value - The Company measures certain financial assets and liabilities at fair value on a recurring basis by estimating the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. The Company also measures certain financial and non-financial assets and liabilities at fair value on a nonrecurring basis, when a change in fair value or impairment is evidenced. The Company classifies these recurring and nonrecurring fair value measurements into a three-level hierarchy (“Valuation Hierarchy”).
The Valuation Hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the Valuation Hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of the Valuation Hierarchy are as follows: 
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets and inputs that are observable for the asset or liability.
Level 3 - inputs to the valuation methodology are unobservable and cannot be directly corroborated by observable market data.
The Company’s financial assets and liabilities measured at fair value on a recurring basis include investment securities available-for-sale, marketable securities, derivative instruments and deferred compensation. The Company’s financial assets measured at fair value on a nonrecurring basis include nonmarketable securities. The Company’s non-financial assets measured at fair value on a nonrecurring basis include property, equipment and right-of-use assets, goodwill and other intangible assets and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.
Contingent Consideration, Policy
Contingent consideration - Certain business combinations involve the potential for future payment of consideration that is contingent upon the achievement of performance milestones. These liabilities are classified within Level 3 of the Valuation Hierarchy as the inputs used to measure fair value are unobservable and require management’s judgment. The fair value of the contingent consideration at the acquisition date and subsequent periods is determined utilizing an income approach based on a Monte Carlo technique and is recorded in other current liabilities and other liabilities on the consolidated balance sheet. Changes to projected performance milestones of the acquired businesses could result in a higher or lower contingent consideration liability. The changes in fair value as a result of updated assumptions are recorded in general and administrative expenses on the consolidated statement of operations.
Investment Securities Policy
Investment securities - The Company classifies investments as available-for-sale or held-to-maturity at the date of acquisition.
Available-for-sale debt securities:
Investments in debt securities that are available to meet the Company’s current operational needs are classified as current assets and the securities that are not available for current operational needs are classified as noncurrent assets on the consolidated balance sheet.
The debt securities are carried at fair value, with unrealized gains and losses, net of tax, recorded as a separate component of accumulated other comprehensive income (loss) on the consolidated statement of comprehensive income. Net realized gains and losses on debt securities are recognized in investment income on the consolidated statement of operations. The specific identification method is used to determine realized gains and losses.
The Company evaluates its debt securities for impairment on an ongoing basis. When there has been a decline in fair value of a debt security below the amortized cost basis, the Company recognizes an impairment if: (1) it has the intent to sell the security; (2) it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis; or (3) it does not expect to recover the entire amortized cost basis of the security. The credit loss component of the impairment is recognized as an allowance and recorded in other income (expense), net on the consolidated statement of operations while the non-credit related loss remains in accumulated other comprehensive income (loss) until realized from a sale or subsequent impairment.
Held-to-maturity securities:
Time deposits - The Company classifies time deposits with original maturities greater than three months as held-to-maturity. Held-to-maturity securities that mature within one year are classified as current assets within investments on the consolidated balance sheet while held-to-maturity securities with maturities of greater than one year are classified as other assets. Time deposits are carried at amortized cost on the consolidated balance sheet and are intended to be held until maturity.
Equity investments - The Company holds equity securities of publicly traded and privately held companies.
Marketable equity securities - Marketable equity securities are strategic investments in publicly traded companies and are measured at fair value using quoted prices in their respective active markets with changes recorded through gains (losses) on equity investments, net on the consolidated statement of operations. Marketable equity securities that are expected to be held as part of the Company’s long-term investment strategy are classified in other assets on the consolidated balance sheet.
Nonmarketable equity investments - The Company’s nonmarketable equity investments, which are reported in other assets on the consolidated balance sheet, include investments in privately held companies without readily determinable market values. The Company uses discounted cash flows and market assumptions to estimate the fair value of its nonmarketable equity investments when certain events or circumstances indicate that impairment may exist. The Company’s nonmarketable equity investments are accounted for under the measurement alternative method or equity method.
Measurement alternative method - The Company accounts for investments in common stock or in-substance common stock under the measurement alternative method of accounting when it does not exercise significant influence, generally when it holds less than 20% ownership in the entity or when the interest in a limited partnership or limited liability company is less than 5% and the Company has no significant influence over the operations of the investee. Investments in companies that Mastercard does not control, but that are not in the form of common stock or in-substance common stock, are also accounted for under the measurement alternative method of accounting. Measurement alternative investments are measured at cost, less any impairment and adjusted for changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Fair value adjustments, as well as impairments, are included in gains (losses) on equity investments, net on the consolidated statement of operations.
Equity method - The Company accounts for investments in common stock or in-substance common stock under the equity method of accounting when it has the ability to exercise significant influence over the operations of the investee, generally when it holds between 20% and 50% ownership in the entity. The excess of the cost over the underlying net equity of investments accounted for under the equity method is allocated to identifiable tangible and intangible assets and liabilities based on fair values at the date of acquisition. The amortization of the excess of the cost over the underlying net equity of investments and Mastercard’s share of net earnings or losses of entities accounted for under the equity method of accounting is included in other income (expense), net on the consolidated statement of operations.
In addition, investments in flow-through entities such as limited partnerships and limited liability companies are also accounted for under the equity method when the Company has the ability to exercise significant influence over the operations of the investee, generally when the investment ownership percentage is equal to or greater than 5% of the
outstanding ownership interest. The Company’s share of net earnings or losses for these investments are included in gains (losses) on equity investments, net on the consolidated statement of operations.
Derivative and Hedging Instruments Policy
Derivative and hedging instruments - The Company’s derivative financial instruments are recorded as either assets or liabilities on the balance sheet and measured at fair value. The Company’s foreign exchange and interest rate derivative contracts are included in Level 2 of the Valuation Hierarchy as the fair value of the contracts are based on inputs that are observable based on broker quotes for the same or similar instruments. The Company does not enter into derivative instruments for trading or speculative purposes. For derivatives that are not designated as hedging instruments, realized and unrealized gains and losses from the change in fair value of the derivatives are recognized in current earnings.
The Company’s derivatives that are designated as hedging instruments are required to meet established accounting criteria. In addition, an effectiveness assessment is required to demonstrate that the derivative is expected to be highly effective at offsetting changes in fair value or cash flows of the underlying exposure both at inception of the hedging relationship and on an ongoing basis. The method of assessing hedge effectiveness and measuring hedge results is formally documented at hedge inception and assessed at least quarterly throughout the designated hedge period.
The Company may designate derivative instruments as cash flow, fair value and net investment hedges, as follows:
Cash flow hedges - Fair value adjustments to derivative instruments are recorded, net of tax, in other comprehensive income (loss) on the consolidated statement of comprehensive income. Any gains and losses deferred in accumulated other comprehensive income (loss) are subsequently reclassified to the corresponding line item on the consolidated statement of operations when the underlying hedged transactions impact earnings. For hedges that are no longer deemed highly effective, hedge accounting is discontinued prospectively, and any gains and losses remaining in accumulated other comprehensive income (loss) are reclassified to earnings when the underlying forecasted transaction occurs. If it is probable that the forecasted transaction will no longer occur, the associated gains or losses in accumulated other comprehensive income (loss) are reclassified to the corresponding line item on the consolidated statement of operations in current earnings.
Fair value hedges - Changes in the fair value of derivative instruments are recorded in current-period earnings, along with the gain or loss on the hedged asset or liability (“hedged item”) that is attributable to the hedged risk. All amounts recognized in earnings are recorded to the corresponding line item on the consolidated statement of operations as the earnings effect of the hedged item. Hedged items are measured on the consolidated balance sheet at their carrying amount adjusted for any changes in fair value attributable to the hedged risk (“basis adjustments”). The Company defers the amortization of any basis adjustments until the end of the derivative instrument’s term. If the hedge designation is discontinued for reasons other than derecognition of the hedged item, the remaining basis adjustments are amortized in accordance with applicable GAAP for the hedged item.
Net investment hedges - The Company has numerous investments in foreign subsidiaries. The net assets of these subsidiaries are exposed to volatility in foreign currency exchange rates. The Company may use foreign currency denominated debt and/or derivative instruments to hedge a portion of its net investment in foreign operations against adverse movements in exchange rates. The effective portion of the foreign currency gains and losses related to the hedging instruments are reported in accumulated other comprehensive income (loss) on the consolidated balance sheet as a cumulative translation adjustment component of equity. Gains and losses in accumulated other comprehensive income (loss) are reclassified to earnings only if the Company sells or substantially liquidates its net investments in foreign subsidiaries. Amounts excluded from effectiveness testing of net investment hedges are recognized in earnings over the life of the hedging instrument. The Company evaluates the effectiveness of the net investment hedge each quarter.
Property, Equipment and Right-of-Use Assets Policy
Property, equipment and right-of-use assets - Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements and amortization of finance leases is included in depreciation and amortization expense on the consolidated statement of operations. Operating lease amortization expense is included in general and administrative expenses on the consolidated statement of operations.
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Equipment and furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
Leases Policy
The Company determines if a contract is, or contains, a lease at contract inception. The Company’s right-of-use (“ROU”) assets are primarily related to operating leases for office space, automobiles and other equipment. Leases are included in property, equipment and right-of-use assets, other current liabilities and other liabilities on the consolidated balance sheet.
ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. In addition, ROU assets include initial direct costs incurred by the lessee as well as any lease payments made at or before the commencement date, and exclude lease incentives. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the
commencement date in determining the present value of lease payments. The incremental borrowing rate is determined by using the rate of interest that the Company would pay to borrow on a collateralized basis an amount equal to the lease payments for a similar term and in a similar economic environment. Lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of one year or less are excluded from ROU assets and liabilities.
The Company excludes variable lease payments in measuring ROU assets and lease liabilities, other than those that depend on an index, a rate or are in-substance fixed payments. Lease and nonlease components are generally accounted for separately. When available, consideration is allocated to the separate lease and nonlease components in a lease contract on a relative standalone price basis using observable standalone prices.
Pension and Other Postretirement Plans Policy
Pension and other postretirement plans - The Company recognizes the funded status of its single-employer defined benefit pension plans and postretirement plans as assets or liabilities on its consolidated balance sheet and recognizes changes in the funded status in the year in which the changes occur through accumulated other comprehensive income (loss). The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation at December 31, the measurement date. Overfunded plans, if any, are aggregated and recorded in other assets, while underfunded plans are aggregated and recorded as accrued expenses and other liabilities on the consolidated balance sheet.
Net periodic pension and postretirement benefit cost/(income), excluding the service cost component, is recognized in other income (expense), net on the consolidated statement of operations. These costs include interest cost, expected return on plan assets, amortization of prior service costs or credits and gains or losses previously recognized as a component of accumulated other comprehensive income (loss). The service cost component is recognized in general and administrative expenses on the consolidated statement of operations.
Defined Contribution Plans Policy Defined contribution plans - The Company’s contributions to defined contribution plans are recorded as employees render service to the Company. The charge is recorded in general and administrative expenses on the consolidated statement of operations.
Advertising and Marketing Policy
Advertising and marketing - Expenses incurred to promote Mastercard’s brand, products and services are recognized in advertising and marketing on the consolidated statement of operations. The timing of recognition is dependent on the type of advertising or marketing expense.
Foreign Currency Remeasurement and Translation Policy
Foreign currency remeasurement and translation - Monetary assets and liabilities in a currency other than the functional currency are remeasured using current exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are recorded at historical exchange rates. Revenue and expense accounts are remeasured at the weighted-average exchange rate for the period. Resulting exchange gains and losses related to remeasurement are included in general and administrative expenses on the consolidated statement of operations.
Where a non-U.S. currency is the functional currency, translation from that functional currency to U.S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted-average exchange rate for the period. Resulting translation adjustments are reported as a component of accumulated other comprehensive income (loss).
Treasury Stock Policy
Treasury stock - The Company records the repurchase of shares of its common stock at cost on the trade date of the transaction. These shares are considered treasury stock, which is a reduction to stockholders’ equity. Treasury stock is included in authorized and issued shares but excluded from outstanding shares.
Share-based Payments Policy Share-based payments - The Company measures share-based compensation expense at the grant date, based on the estimated fair value of the award and uses the straight-line method of attribution, net of estimated forfeitures, for expensing awards over the requisite employee service period. The Company estimates the fair value of its non-qualified stock option awards (“Options”) using a Black-Scholes valuation model. The fair value of restricted stock units (“RSUs”) is determined and fixed on the grant date based on the Company’s stock price, adjusted for the exclusion of dividend equivalents. The Monte Carlo simulation valuation model is used to determine the grant date fair value of performance stock units (“PSUs”) granted. All share-based compensation expenses are recorded in general and administrative expenses on the consolidated statement of operations.
Redeemable Noncontrolling Interests Policy Redeemable non-controlling interests - The Company’s business combinations may include provisions allowing non-controlling equity owners the ability to require the Company to purchase additional interests in the subsidiary at their discretion. The interests are initially recorded at fair value and in subsequent reporting periods are accreted or adjusted to the estimated redemption value. The adjustments to the redemption value are recorded to retained earnings or additional paid-in capital on the consolidated balance sheet. The redeemable non-controlling interests are considered temporary and reported outside of permanent equity on the consolidated balance sheet at the greater of the carrying amount adjusted for the non-controlling interest’s share of net income (loss) or its redemption value.
Earnings Per Share Policy Earnings per share - The Company calculates basic earnings per share (“EPS”) by dividing net income by the weighted-average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income by the weighted-average number of common shares outstanding during the year, adjusted for the potentially dilutive effect of stock options and unvested stock units using the treasury stock method. The Company may be required to calculate EPS using the two-class method as a result of its redeemable non-controlling interests. If redemption value exceeds the fair value of the redeemable non-controlling interests, the excess would be a reduction to net income for the EPS calculation.
Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Not Yet Adopted
Improvements to Reportable Segment Disclosures - In November 2023, the Financial Accounting Standards Board (“FASB”) issued accounting guidance to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024. The Company will adopt this guidance in its Form 10-K for the year ended December 31, 2024. This guidance is expected to impact the disclosures only with no impact to the results of operations, financial position or cash flows.
Improvements to Income Tax Disclosures - In December 2023, the FASB issued accounting guidance to enhance the transparency and decision usefulness of income tax disclosures. The guidance includes improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating when it will adopt this guidance and the potential effects this guidance will have on its disclosures.
v3.24.0.1
Property, Plant, and Equipment (Policies)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Equipment and Right-of-Use Assets Policy
Property, equipment and right-of-use assets - Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets. Depreciation of leasehold improvements and amortization of finance leases is included in depreciation and amortization expense on the consolidated statement of operations. Operating lease amortization expense is included in general and administrative expenses on the consolidated statement of operations.
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Equipment and furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Useful lives of Company's assets
Property, equipment and right-of-use assets consisted of the following at December 31:
20232022
(in millions)
Buildings, building equipment and land$678 $652 
Equipment1,940 1,711 
Furniture and fixtures90 96 
Leasehold improvements398 376 
Operating lease right-of-use assets1,192 1,075 
Property, equipment and right-of-use assets4,298 3,910 
Less: Accumulated depreciation and amortization(2,237)(1,904)
Property, equipment and right-of-use assets, net$2,061 $2,006 
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Equipment and furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
v3.24.0.1
Acquisitions Business Combination (Tables)
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The final fair values of the purchase price allocations in aggregate, as of the acquisition dates, are noted below for the years ended December 31.
20222021
(in millions)
Assets:
Cash and cash equivalents$11 $253 
Other current assets41 
Other intangible assets125 2,071 
Goodwill200 2,842 
Other assets15 
Total assets352 5,222 
Liabilities:
Other current liabilities15 112 
Deferred income taxes 398 
Other liabilities12 
Total liabilities27 522 
Net assets acquired$325 $4,700 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
The following table summarizes the identified intangible assets acquired during the years ended December 31:
2022202120222021
Acquisition Date Fair Value
Weighted-Average Useful Life
(in millions)
(in years)
Developed technologies$100 $433 7.811.7
Customer relationships25 1,614 17.019.2
Other— 24 7.1
Other intangible assets$125 $2,071 9.617.5
v3.24.0.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The Company’s disaggregated net revenue by category and geographic region were as follows for the years ended December 31:
 202320222021
(in millions)
Revenue by category:
Payment network$15,824 $14,358 $11,943 
Value-added services and solutions9,274 7,879 6,941 
Net revenue$25,098 $22,237 $18,884 
Net revenue by geographic region:
North American Markets 1
$8,359 $7,809 $6,667 
International Markets16,739 14,428 12,217 
Net revenue$25,098 $22,237 $18,884 
1North American Markets includes the United States and Canada, excluding the U.S. Territories.
The following table sets forth the location of the amounts recognized on the consolidated balance sheet from contracts with customers at December 31:
20232022
(in millions)
Receivables from contracts with customers
Accounts receivable
$3,851 $3,213 
Contract assets
Prepaid expenses and other current assets133 118 
Other assets387 442 
Deferred revenue 1
Other current liabilities459 434 
Other liabilities318 248 
1    Revenue recognized from performance obligations satisfied in 2023 was $2.1 billion.
v3.24.0.1
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
The components of basic and diluted EPS for common shares for each of the years ended December 31 were as follows:
 202320222021
 (in millions, except per share data)
Numerator
Net income$11,195 $9,930 $8,687 
Denominator
Basic weighted-average shares outstanding944 968 988 
Dilutive stock options and stock units
Diluted weighted-average shares outstanding 1
946 971 992 
Earnings per Share
Basic$11.86 $10.26 $8.79 
Diluted$11.83 $10.22 $8.76 
Note: Table may not sum due to rounding.
1For the years presented, the calculation of diluted EPS excluded a minimal amount of anti-dilutive share-based payment awards.
v3.24.0.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables)
12 Months Ended
Dec. 31, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides the components of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows for the years ended December 31:
20232022
(in millions)
Cash and cash equivalents$8,588 $7,008 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement 1
— 589 
Restricted security deposits held for customers1,845 1,568 
Prepaid expenses and other current assets32 31 
Cash, cash equivalents, restricted cash and restricted cash equivalents$10,465 $9,196 
1During 2023, the Company reduced its Restricted cash for litigation settlement balance by $600 million, including accrued interest, as a settlement became final in August 2023. See Note 21 (Legal and Regulatory Proceedings) for additional information regarding the Company’s restricted cash for litigation settlement.
Restrictions on Cash and Cash Equivalents
The following table provides the components of cash, cash equivalents, restricted cash and restricted cash equivalents reported on the consolidated balance sheet that total to the amounts shown on the consolidated statement of cash flows for the years ended December 31:
20232022
(in millions)
Cash and cash equivalents$8,588 $7,008 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement 1
— 589 
Restricted security deposits held for customers1,845 1,568 
Prepaid expenses and other current assets32 31 
Cash, cash equivalents, restricted cash and restricted cash equivalents$10,465 $9,196 
1During 2023, the Company reduced its Restricted cash for litigation settlement balance by $600 million, including accrued interest, as a settlement became final in August 2023. See Note 21 (Legal and Regulatory Proceedings) for additional information regarding the Company’s restricted cash for litigation settlement.
v3.24.0.1
Supplemental Cash Flows (Tables)
12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Information [Abstract]  
Schedule of Supplemental Cash Flow Disclosures
The following table includes supplemental cash flow disclosures for each of the years ended December 31:
202320222021
 (in millions)
Cash paid for income taxes, net of refunds$2,746 $2,506 $1,820 
Cash paid for interest477 414 399 
Cash paid for legal settlements929 114 98 
Non-cash investing and financing activities
Dividends declared but not yet paid616 545 479 
Accrued property, equipment and right-of-use assets147 118 15 
Fair value of assets acquired, net of cash acquired— 341 4,969 
Fair value of liabilities assumed related to acquisitions— 27 522 
v3.24.0.1
Investments (Tables)
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments On the Consolidated Balance Sheet
Investments on the consolidated balance sheet consisted of the following at December 31:
20232022
(in millions)
Available-for-sale securities
$286 $272 
Held-to-maturity securities 1
306 128 
Total investments $592 $400 
1Held-to-maturity securities represent investments in time deposits that mature within one year. The cost of these securities approximates fair value.
Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, held-to-maturity and available-for-sale investment securities, as well as realized gains and losses on the Company’s investment securities. The realized gains and losses from the sales of available-for-sale securities for 2023, 2022 and 2021 were not material.
Available-for-sale investment securities
The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values at December 31 were as follows:
 20232022
 Amortized Cost Gross Unrealized GainGross Unrealized Loss Fair ValueAmortized Cost Gross Unrealized GainGross Unrealized Loss Fair Value
(in millions)
Government and agency securities$86 $— $— $86 $91 $— $(2)$89 
Corporate securities200 (1)200 187 — (4)183 
Total$286 $1 $(1)$286 $278 $ $(6)$272 
Maturity Distribution Based on Contractual Terms of Investment Securities
The maturity distribution based on the contractual terms of the Company’s available-for-sale investment securities at December 31, 2023 was as follows:
Amortized
Cost
Fair Value
(in millions)
Due within 1 year$170 $169 
Due after 1 year through 5 years116 117 
Total$286 $286 
Equity Method Investments
The following table is a summary of the activity related to the Company’s equity investments:
 Balance at December 31, 2022PurchasesSales
Changes in Fair Value 1
Other 2
Balance at December 31, 2023
(in millions)
Marketable securities $399 $— $— $97 $10 $506 
Nonmarketable securities 1,331 89 (44)(158)1,223 
Total equity investments $1,730 $89 $(44)$(61)$15 $1,729 
1Recorded in gains (losses) on equity investments, net on the consolidated statement of operations.
2Includes translational impact of currency.
Equity Securities without Readily Determinable Fair Value
The following table sets forth the components of the Company’s Nonmarketable securities at December 31:
20232022
(in millions)
Measurement alternative
$1,008 $1,087 
Equity method
215 244 
Total Nonmarketable securities$1,223 $1,331 
Carrying Value of Measurement Alternative Investments
The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through December 31:
2023
(in millions)
Initial cost basis
$553 
Cumulative adjustments 1:
Upward adjustments630 
Downward adjustments (including impairment)(175)
Carrying amount, end of period$1,008 
1Includes immaterial translational impact of currency.
Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments
The following table summarizes the unrealized gains and losses included in the carrying value of the Company’s Measurement alternative investments and Marketable securities for the years ended December 31:
202320222021
(in millions)
Measurement alternative investments:
Upward adjustments$$114 $468 
Downward adjustments (including impairment)$(145)$(23)$(2)
Marketable securities:
Unrealized gains (losses), net$97 $(213)$
v3.24.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2023
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]  
Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis
The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:
 December 31, 2023December 31, 2022
 Quoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
TotalQuoted Prices
in Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
(in millions)
Assets
Investment securities available-for-sale 1:
Government and agency securities33 53 — 86 35 54 — 89 
Corporate securities— 200 — 200 — 183 — 183 
Derivative instruments 2:
Foreign exchange contracts— 36 — 36 — 108 — 108 
Marketable securities 3:
Equity securities506 — — 506 399 — — 399 
Deferred compensation plan 4:
Deferred compensation assets93 — — 93 74 — — 74 
Liabilities
Derivative instruments 2:
Foreign exchange contracts$— $104 $— $104 $— $21 $— $21 
Interest rate contracts— 79 — 79 — 105 — 105 
Deferred compensation plan 5:
Deferred compensation liabilities91 — — 91 73 — — 73 
1The Company’s U.S. government securities are classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices for identical assets in active markets. The fair value of the Company’s available-for-sale non-U.S. government and agency securities and corporate securities are based on observable inputs such as quoted prices, benchmark yields and issuer spreads for similar assets in active markets and are therefore included in Level 2 of the Valuation Hierarchy.
2The Company’s foreign exchange and interest rate derivative asset and liability contracts have been classified within Level 2 of the Valuation Hierarchy as the fair value is based on observable inputs such as broker quotes for similar derivative instruments. See Note 23 (Derivative and Hedging Instruments) for further details.
3The Company’s Marketable securities are publicly held and classified within Level 1 of the Valuation Hierarchy as the fair values are based on unadjusted quoted prices in their respective active markets.
4The Company has a nonqualified deferred compensation plan where assets are invested primarily in mutual funds held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for these mutual funds, which are measured using quoted prices of identical instruments in active markets and are included in prepaid expenses and other current assets on the consolidated balance sheet.
5The deferred compensation liabilities are measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. These are included in other liabilities on the consolidated balance sheet.
v3.24.0.1
Prepaid Expenses and Other Assets (Tables)
12 Months Ended
Dec. 31, 2023
Prepaid Expense and Other Assets [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following at December 31:
20232022
(in millions)
Customer incentives
$1,570 $1,392 
Other1,073 954 
Total prepaid expenses and other current assets$2,643 $2,346 
Schedule of Other Assets, Noncurrent
Other assets consisted of the following at December 31:
20232022
(in millions)
Customer incentives
$5,170 $4,578 
Equity investments1,729 1,730 
Income taxes receivable783 633 
Other643 639 
Total other assets$8,325 $7,580 
v3.24.0.1
Property, Equipment and Right-of-Use Assets (Tables)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property, Equipment and Right-of-Use Assets
Property, equipment and right-of-use assets consisted of the following at December 31:
20232022
(in millions)
Buildings, building equipment and land$678 $652 
Equipment1,940 1,711 
Furniture and fixtures90 96 
Leasehold improvements398 376 
Operating lease right-of-use assets1,192 1,075 
Property, equipment and right-of-use assets4,298 3,910 
Less: Accumulated depreciation and amortization(2,237)(1,904)
Property, equipment and right-of-use assets, net$2,061 $2,006 
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Equipment and furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
Operating Lease ROU Assets and Operating Lease Liabilities
Operating lease ROU assets and operating lease liabilities are recorded on the consolidated balance sheet as follows at December 31:
20232022
(in millions)
Balance sheet location
Property, equipment and right-of-use assets, net$686 $679 
Other current liabilities142 140 
Other liabilities633 630 
Maturity of Operating Lease Liabilities
The following table summarizes the maturity of the Company’s operating lease liabilities at December 31, 2023 based on lease term:
Operating Leases
(in millions)
2024$163 
2025129 
2026110 
202787 
202870 
Thereafter325 
Total operating lease payments884 
Less: Interest(109)
Present value of operating lease liabilities$775 
v3.24.0.1
Goodwill (Tables)
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Change in Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the years ended December 31 were as follows:
20232022
(in millions)
Beginning balance$7,522 $7,662 
Additions46 200 
Foreign currency translation92 (340)
Ending balance$7,660 $7,522 
v3.24.0.1
Other Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
20232022
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
(in millions)
Finite-lived intangible assets
Capitalized software 1
$3,917 $(1,530)$2,387 $3,448 $(1,402)$2,046 
Customer relationships2,165 (641)1,524 2,161 (521)1,640 
Other51 (38)13 54 (37)17 
Total6,133 (2,209)3,924 5,663 (1,960)3,703 
Indefinite-lived intangible assets
Customer relationships162 — 162 156 — 156 
Total$6,295 $(2,209)$4,086 $5,819 $(1,960)$3,859 
1Includes technology acquired in business combinations.
Schedule of Estimated Future Amortization Expense The following table sets forth the estimated future amortization expense on finite-lived intangible assets on the consolidated balance sheet at December 31, 2023 for the years ending December 31:
(in millions)
2024$507 
2025532 
2026518 
2027434 
2028387 
Thereafter1,546 
Total$3,924 
v3.24.0.1
Accrued Expenses and Accrued Litigation (Tables)
12 Months Ended
Dec. 31, 2023
Accrued Liabilities [Abstract]  
Accrued Expenses
Accrued expenses consisted of the following at December 31:
20232022
 (in millions)
Customer incentives
$6,219 $5,600 
Personnel costs1,258 1,322 
Income and other taxes486 279 
Other554 600 
Total accrued expenses$8,517 $7,801 
v3.24.0.1
Pension, Postretirement and Savings Plans Pension, Postretirement and Savings Plans (Tables)
12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations The following table sets forth the Plans’ funded status, key assumptions and amounts recognized on the Company’s consolidated balance sheet at December 31:
 Pension PlansPostretirement Plan
 2023202220232022
 ($ in millions)
Change in benefit obligation
Benefit obligation at beginning of year$392 $596 $43 $62 
Service cost14 12 
Interest cost18 
Actuarial (gain) loss(15)(156)(16)
Benefits paid(16)(16)(6)(6)
Transfers in— — 
Foreign currency translation 19 (58)— — 
Benefit obligation at end of year420 392 46 43 
Change in plan assets
Fair value of plan assets at beginning of year430 688   
Actual gain/(loss) on plan assets(8)(203)— — 
Employer contributions16 25 
Benefits paid(16)(16)(6)(6)
Transfers in— — 
Foreign currency translation 22 (69)— — 
Fair value of plan assets at end of year449 430   
Funded status at end of year$29 $38 $(46)$(43)
Amounts recognized on the consolidated balance sheet consist of:
Noncurrent assets$38 $44 $— $— 
Other liabilities, short-term— — (3)(3)
Other liabilities, long-term(9)(6)(43)(40)
Net amounts recognized on the consolidated balance sheet
$29 $38 $(46)$(43)
Accumulated other comprehensive income consists of:
Net actuarial (gain) loss$34 $23 $(8)$(14)
Prior service credit— (1)
Balance at end of year$35 $24 $(8)$(15)
Weighted-average assumptions used to determine end of year benefit obligations
Discount rate
Non-U.S. Plans4.20 %3.80 %**
Vocalink Plan5.15 %4.80 %**
Postretirement Plan**5.00 %5.50 %
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %**
Vocalink Plan2.75 %2.70 %**
Postretirement Plan**3.00 %3.00 %
* Not applicable
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets Information on the Pension Plans were as follows as of December 31:
20232022
(in millions)
Projected benefit obligation$420 $392 
Accumulated benefit obligation419 388 
Fair value of plan assets449 430 
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)
Components of net periodic benefit cost recorded in earnings were as follows for the Plans for each of the years ended December 31:
Pension PlansPostretirement Plan
202320222021202320222021
(in millions)
Service cost$14 $12 $14 $$$
Interest cost18 
Expected return on plan assets(18)(14)(19)— — — 
Amortization of actuarial loss— — (1)— — — 
Amortization of prior service credit— — — (1)(1)(1)
Net periodic benefit cost$14 $7 $3 $2 $2 $2 
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
Other changes in plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31 were as follows:
Pension PlansPostretirement Plan
202320222021202320222021
(in millions)
Current year actuarial loss (gain)$11 $61 $(50)$$(16)$(7)
Amortization of prior service credit$— $— $— $$$
Total other comprehensive loss (income)$11 $61 $(50)$7 $(15)$(5)
Total net periodic benefit cost and other comprehensive loss (income)$25 $68 $(47)$9 $(13)$(3)
Defined Benefit Plan, Assumptions
Weighted-average assumptions used to determine net periodic benefit cost were as follows for the years ended December 31:
Pension PlansPostretirement Plan
202320222021202320222021
Discount rate
Non-U.S. Plans3.80 %0.90 %0.70 %***
Vocalink Plan4.80 %1.75 %1.55 %***
Postretirement Plan***5.50 %2.75 %2.50 %
Expected return on plan assets
Non-U.S. Plans1.80 %1.60 %1.60 %***
Vocalink Plan5.25 %2.30 %3.20 %***
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %1.50 %***
Vocalink Plan2.70 %3.20 %2.75 %***
Postretirement Plan***3.00 %3.00 %3.00 %
* Not applicable
Schedule of Health Care Cost Trend Rates
The following additional assumptions were used at December 31 in accounting for the Postretirement Plan:
20232022
Healthcare cost trend rate assumed for next year7.00 %6.50 %
Ultimate trend rate 5.00 %5.00 %
Year that the rate reaches the ultimate trend rate86
Schedule of Allocation of Plan Assets
The following table sets forth by level within the Valuation Hierarchy, the Pension Plans’ assets at fair value:
December 31, 2023December 31, 2022
Quoted Prices in Active Markets (Level 1)Significant Other Observable Inputs (Level 2)Significant
Unobservable
Inputs
(Level 3)
Fair ValueQuoted Prices in Active Markets (Level 1)Significant Other Observable Inputs (Level 2)Significant
Unobservable
Inputs
(Level 3)
Fair Value
(in millions)
Cash and cash equivalents 1
$43 $— $— $43 $43 $— $— $43 
Mutual funds 2
124 109 — 233 106 128 — 234 
Insurance contracts 3
— 124 — 124 — 114 — 114 
Total$167 $233 $— $400 $149 $242 $— $391 
Investments at Net Asset Value (“NAV”) 4
49 39 
Total Plan Assets$449 $430 
1Cash and cash equivalents are valued at quoted market prices, which represent the net asset value of the shares held by the Plans.
2Certain mutual funds are valued at quoted market prices, which represent the value of the shares held by the Plans, and are therefore included in Level 1. Certain other mutual funds are valued at unit values provided by investment managers, which are based on the fair value of the underlying investments utilizing public information, independent external valuation from third-party services or third-party advisors, and are therefore included in Level 2.
3Insurance contracts are valued at unit values provided by investment managers, which are based on the fair value of the underlying investments utilizing public information, independent external valuation from third-party services or third-party advisors.
4Investments at NAV include mutual funds (comprised primarily of credit investments) and other investments (comprised primarily of real estate investments) and are valued using the net asset value provided by the administrator as a practical expedient, and therefore these investments are not included in the valuation hierarchy. These investments have quarterly redemption frequencies with redemption notice periods ranging from 60 to 90 days.
Schedule of Expected Benefit Payments
The following table summarizes expected benefit payments (as of December 31, 2023) through 2033 for the Pension Plans and the Postretirement Plan, including those payments expected to be paid from the Company’s general assets. Actual benefit payments may differ from expected benefit payments.
Pension PlansPostretirement Plan
(in millions)
2024$35 $
202518 
202616 
202722 
202822 
2029 - 2033133 20 
v3.24.0.1
Debt (Tables)
12 Months Ended
Dec. 31, 2023
Debt Instruments [Abstract]  
Schedule of Debt
Debt consisted of the following at December 31:
20232022Effective
Interest Rate
(in millions)
Senior Notes
2023 USD Notes4.875 %Senior Notes due March 2028$750 $— 5.003 %
4.850 %Senior Notes due March 2033750 — 4.923 %
2022 EUR Notes 1
1.000 %Senior Notes due February 2029830 800 1.138 %
2021 USD Notes2.000 %Senior Notes due November 2031750 750 2.112 %
1.900 %Senior Notes due March 2031600 600 1.981 %
2.950 %Senior Notes due March 2051700 700 3.013 %
2020 USD Notes3.300 %Senior Notes due March 20271,000 1,000 3.420 %
3.350 %Senior Notes due March 20301,500 1,500 3.430 %
3.850 %Senior Notes due March 20501,500 1,500 3.896 %
2019 USD Notes2.950 %Senior Notes due June 20291,000 1,000 3.030 %
3.650 %Senior Notes due June 20491,000 1,000 3.689 %
2.000 %Senior Notes due March 2025750 750 2.147 %
2018 USD Notes3.500 %Senior Notes due February 2028500 500 3.598 %
3.950 %Senior Notes due February 2048500 500 3.990 %
2016 USD Notes2.950 %Senior Notes due November 2026750 750 3.044 %
3.800 %Senior Notes due November 2046600 600 3.893 %
2015 EUR Notes 2
2.100 %Senior Notes due December 2027885 854 2.189 %
2.500 %Senior Notes due December 2030166 160 2.562 %
2014 USD Notes3.375 %Senior Notes due April 20241,000 1,000 3.484 %
Other Debt
2023 INR Term Loan 3
9.430 %Term Loan due July 2024338 — 9.780 %
2022 INR Term Loan 4
8.640 %Term Loan due July 2023— 275 9.090 %
15,869 14,239 
Less: Unamortized discount and debt issuance costs(109)(111)
Less: Cumulative hedge accounting fair value adjustments 5
(79)(105)
Total debt outstanding15,681 14,023 
Less: Short-term debt 6
(1,337)(274)
Long-term debt$14,344 $13,749 
1€750 million euro-denominated debt issued in February 2022.
2€950 million euro-denominated debt remaining of the €1.650 billion issued in December 2015.
3INR28.1 billion Indian rupee-denominated loan issued in July 2023.
4INR22.7 billion Indian rupee-denominated loan issued in July 2022.
5The Company has an interest rate swap which is accounted for as a fair value hedge. See Note 23 (Derivative and Hedging Instruments) for additional information.
6The 2014 USD Notes due April 2024 and the INR Term Loan due July 2024 are classified as short-term debt, net of unamortized discount and debt issuance costs, on the consolidated balance sheet as of December 31, 2023. The 2022 INR Term Loan due July 2023 was classified as short-term debt, net of unamortized issuance costs, on the consolidated balance sheet as of December 31, 2022.
Schedule of Maturities of Long-term Debt
Scheduled annual maturities of the principal portion of long-term debt outstanding at December 31, 2023 are summarized below.
(in millions)
2024$1,338 
2025750 
2026750 
20271,885 
20281,250 
Thereafter9,896 
Total$15,869 
v3.24.0.1
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Schedule of Classes of Capital Stock
Mastercard’s amended and restated certificate of incorporation authorizes the following classes of capital stock:
ClassPar Value Per ShareAuthorized Shares
(in millions)
Dividend and Voting Rights
A$0.00013,000 One vote per share
Dividend rights
B$0.00011,200 Non-voting
Dividend rights
Preferred$0.0001300 No shares issued or outstanding at December 31, 2023 and 2022. Dividend and voting rights are to be determined by the Board of Directors of the Company upon issuance.
Dividends Declared The total per share dividends declared during the years ended December 31 is summarized below: 
202320222021
(in millions, except per share data)
Dividends declared per share $2.37 $2.04 $1.81 
Total dividends declared$2,231 $1,968 $1,781 
Schedule of Ownership and Governance Structure
Equity ownership and voting power of the Company’s shares were allocated as follows as of December 31:
20232022
Equity OwnershipGeneral Voting PowerEquity OwnershipGeneral Voting Power
Public Investors (Class A stockholders)88.8 %89.5 %88.5 %89.3 %
Mastercard Foundation (Class A stockholders)10.4 %10.5 %10.7 %10.7 %
Principal or Affiliate Customers (Class B stockholders)0.8 %— %0.8 %— %
Schedule of Changes in Common Stock Outstanding
The following table presents the changes in the Company’s outstanding Class A and Class B common stock:
 Outstanding Shares
 Class AClass B
(in millions)
Balance at December 31, 2020986.9 8.3 
Purchases of treasury stock(16.5)— 
Share-based payments1.2 — 
Conversion of Class B to Class A common stock0.5 (0.5)
Balance at December 31, 2021972.1 7.8 
Purchases of treasury stock(25.7)— 
Share-based payments1.8 — 
Conversion of Class B to Class A common stock0.2 (0.2)
Balance at December 31, 2022948.4 7.6 
Purchases of treasury stock(23.8)— 
Share-based payments2.3 — 
Conversion of Class B to Class A common stock0.4 (0.4)
Balance at December 31, 2023927.3 7.2 
Summary of Share Repurchase Authorization The following table summarizes the Company’s share repurchase authorizations of its Class A common stock for the years ended December 31:
202320222021
(In millions, except per share data)
Board authorization$11,000 $9,000 $8,000 
Dollar-value of shares repurchased 1
$9,032 $8,753 $5,904 
Shares repurchased23.8 25.7 16.5 
Average price paid per share$379.49 $340.60 $356.82 
1The dollar-value of shares repurchased does not include a 1% excise tax that became effective January 1, 2023. The incremental tax is recorded in treasury stock on the consolidated balance sheet and is payable annually beginning in 2024.
v3.24.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2023 and 2022 were as follows:
December 31, 2022Increase / (Decrease)ReclassificationsDecember 31, 2023
(in millions)
Foreign currency translation adjustments 1
$(1,414)$295 $— $(1,119)
Translation adjustments on net investment hedges 2
309 (128)— 181 
Cash flow hedges
Foreign exchange contracts 3
(8)(31)22 (17)
Interest rate contracts(123)— (118)
Defined benefit pension and other postretirement plans 4
(11)(13)(1)(25)
Investment securities available-for-sale(6)— (1)
Accumulated other comprehensive income (loss)$(1,253)$128 $26 $(1,099)

December 31, 2021Increase / (Decrease)ReclassificationsDecember 31, 2022
(in millions)
Foreign currency translation adjustments 1
$(739)$(675)$— $(1,414)
Translation adjustments on net investment hedges 2
34 275 — 309 
Cash flow hedges
Foreign exchange contracts 3
(13)(8)
Interest rate contracts(128)— (123)
Defined benefit pension and other postretirement plans 4
21 (31)(1)(11)
Investment securities available-for-sale(1)(5)— (6)
Accumulated other comprehensive income (loss)$(809)$(435)$(9)$(1,253)
1During 2023, the decrease in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the appreciation of the euro and British pound against the U.S. dollar. During 2022, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro and British pound against the U.S. dollar.
2During 2023, the decrease in the accumulated other comprehensive income related to the net investment hedges was driven by the appreciation of the euro against the U.S. dollar. During 2022, the increase in the accumulated other comprehensive income related to the net investment hedges was driven by the depreciation of the euro against the U.S. dollar. See Note 23 (Derivative and Hedging Instruments) for additional information.
3Certain foreign exchange derivative contracts are designated as cash flow hedging instruments. Gains and losses resulting from changes in the fair value of these contracts are deferred in accumulated other comprehensive income (loss) and subsequently reclassified to the consolidated statement of operations when the underlying hedged transactions impact earnings. See Note 23 (Derivative and Hedging Instruments) for additional information.
4During 2023, the increase in the accumulated other comprehensive loss related to the Plans was driven primarily by a net actuarial loss within the Pension Plans. During 2022, the increase in the accumulated other comprehensive loss related to the Plans was driven primarily by a net actuarial loss within the Pension Plans. See Note 14 (Pension, Postretirement and Savings Plans) for additional information.
v3.24.0.1
Share-Based Payments (Tables)
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement, Additional Disclosure [Abstract]  
Schedule of Weighted-Average Assumptions Used in the Valuation of Stock Option Awards The following table presents the weighted-average assumptions used in the valuation and the resulting weighted-average fair value per Option granted for the years ended December 31:
202320222021
Risk-free rate of return4.2 %1.6 %0.9 %
Expected term (in years)6.006.006.00
Expected volatility29.5 %24.6 %26.1 %
Expected dividend yield0.6 %0.6 %0.5 %
Weighted-average fair value per Option granted$123.22 $86.92 $91.70 
Summary of Stock Option Activity
The following table summarizes the Company’s option activity for the year ended December 31, 2023:
OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value
(in millions)(in years)(in millions)
Outstanding at January 1, 20234.7 $173 
Granted0.3 $354 
Exercised(1.9)$124 
Forfeited(0.1)$338 
Expired0.0 $283 
Outstanding at December 31, 20233.0 $217 5.0$632 
Exercisable at December 31, 20232.4 $184 4.2$581 
Options vested and expected to vest at December 31, 20233.0 $217 5.0$632 
Summary of Restricted Stock Unit Activity
The following table summarizes the Company’s RSU activity for the year ended December 31, 2023:
UnitsWeighted-Average Grant-Date Fair ValueAggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20231.8 $335 
Granted1.2 $350 
Converted(0.7)$331 
Forfeited(0.1)$343 
Outstanding at December 31, 20232.2 $344 $945 
RSUs expected to vest at December 31, 20232.1 $344 $913 
Summary of Performance Stock Unit Activity
The following table summarizes the Company’s PSU activity for the year ended December 31, 2023:
UnitsWeighted-Average
Grant-Date Fair Value
Aggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20230.4 $352 
Granted0.2 $365 
Converted(0.1)$296 
Other0.1 $386 
Outstanding at December 31, 20230.6 $365 $271 
PSUs expected to vest at December 31, 20230.6 $365 $266 
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
The following table includes additional share-based payment information for each of the years ended December 31:
202320222021
(in millions, except weighted-average fair value)
Share-based compensation expense: Options, RSUs and PSUs$460 $295 $273 
Income tax benefit recognized for equity awards99 61 57 
Income tax benefit realized related to Options exercised95 49 36 
Options
Total intrinsic value of Options exercised487 231 169 
RSUs
Weighted-average grant-date fair value of awards granted 350 340 358 
Total grant-date fair value of awards vested235 305 202 
Total intrinsic value of RSUs converted into shares of Class A common stock253 420 360 
PSUs
Weighted-average grant-date fair value of awards granted365 335 385 
Total grant-date fair value of awards vested12 — 20 
Total intrinsic value of PSUs converted into shares of Class A common stock14 — 32 
v3.24.0.1
Commitments (Tables)
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Future Minimum Payments Due Under Non-Cancelable Agreements
At December 31, 2023, the Company had the following future minimum payments due under noncancelable agreements, primarily related to sponsorships to promote the Mastercard brand and licensing arrangements. The Company has accrued $21 million of these future payments as of December 31, 2023.
(in millions)
2024$668 
2025634 
2026442 
2027327 
2028171 
Thereafter
Total$2,243 
v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Income Before Income Taxes
The domestic and foreign components of income before income taxes for the years ended December 31 were as follows:
202320222021
(in millions)
United States$4,506 $4,228 $4,261 
Foreign9,133 7,504 6,046 
Income before income taxes$13,639 $11,732 $10,307 
Components of Income Tax Provision
The total income tax provision for the years ended December 31 is comprised of the following components:
202320222021
(in millions)
Current
Federal$991 $1,024 $663 
State and local127 133 51 
Foreign1,563 1,296 976 
2,681 2,453 1,690 
Deferred
Federal(180)(661)(31)
State and local(18)(40)(4)
Foreign(39)50 (35)
(237)(651)(70)
Income tax expense$2,444 $1,802 $1,620 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate for the years ended December 31, is as follows:
202320222021
AmountPercentAmountPercentAmountPercent
($ in millions)
Income before income taxes$13,639 $11,732 $10,307 
Federal statutory tax2,864 21.0 %2,464 21.0 %2,164 21.0 %
State tax effect, net of federal benefit82 0.6 %72 0.6 %60 0.6 %
Foreign tax effect(393)(2.9)%(347)(3.0)%(283)(2.7)%
Valuation allowance - U.S. foreign tax credit327 2.4 %(333)(2.8)%— — %
U.S. tax expense on foreign operations39 0.3 %111 0.9 %63 0.6 %
Foreign-derived intangible income deduction(144)(1.1)%(129)(1.1)%(69)(0.7)%
U.S. tax benefits
— — %— — %(132)(1.3)%
Windfall benefit(88)(0.6)%(68)(0.6)%(67)(0.7)%
Other, net(243)(1.8)%32 0.3 %(116)(1.1)%
Income tax expense$2,444 17.9 %$1,802 15.4 %$1,620 15.7 %
Note: Table may not sum due to rounding.
Schedule of Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities at December 31 were as follows:
20232022
(in millions)
Deferred Tax Assets
Accrued liabilities$863 $697 
Compensation and benefits335 316 
State taxes and other credits47 43 
Net operating losses149 156 
U.S. foreign tax credits635 274 
Property and equipment
277 52 
Intangible assets182 186 
Lease liabilities
158 65 
Other items156 155 
Less: Valuation allowance(758)(114)
Total Deferred Tax Assets2,044 1,830 
Deferred Tax Liabilities
Prepaid expenses and other accruals211 186 
Gains on equity investments112 132 
Goodwill and intangible assets518 561 
Right-of-use lease assets
138 58 
Other items79 135 
Total Deferred Tax Liabilities1,058 1,072 
Net Deferred Tax Assets $986 $758 
Summary of Changes to Valuation Allowance on Deferred Tax Assets
The changes in the Company’s valuation allowance on deferred tax assets were as follows:
Balance at December 31, 2020
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2021
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2022
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2023
(in millions)
U.S. foreign tax credit carryforward 1
$276 $57 $— $333 $— $(333)$— $308 $327 $635 
Net operating and capital losses 2
77 11 (6)82 23 114 12 (3)123 
Total$353 $68 $(6)$415 $23 $(324)$114 $320 $324 $758 
1The 2022 activity resulted in a full release of the valuation allowance associated with the U.S. foreign tax credit carryforward due to final U.S. tax regulations published in 2022. The 2023 activity resulted in the establishment of the valuation allowance associated with the U.S. foreign tax credit carryforward due to foreign tax legislation enacted in Brazil and the Notice released by Treasury.
2Capital losses are included within other items in the deferred tax assets section of the components of the Deferred Taxes table above.
Reconciliation of Beginning and Ending Tax Benefits
A reconciliation of the beginning and ending balance for the Company’s unrecognized tax benefits for the years ended December 31, is as follows:
202320222021
(in millions)
Beginning balance$414 $360 $388 
Additions:
Current year tax positions23 22 17 
Prior year tax positions1
16 65 
Reductions:
Prior year tax positions1
(7)(14)(31)
Settlements with tax authorities— (13)(15)
Expired statute of limitations(15)(6)(3)
Ending balance$431 $414 $360 
1Includes immaterial translational impact of currency.
v3.24.0.1
Settlement and Other Risk Management (Tables)
12 Months Ended
Dec. 31, 2023
Settlement and Other Risk Management [Abstract]  
Estimated Settlement Exposure and Portion of Uncollateralized Settlement Exposure for MasterCard-Branded Transactions
The Company’s estimated settlement exposure was as follows at December 31:
20232022
(in millions)
Gross settlement exposure$75,023 $64,885 
Risk mitigation arrangements applied to settlement exposure 1
(12,167)(9,224)
Net settlement exposure 1
$62,856 $55,661 
1The Company corrected its estimated net settlement exposure as of December 31, 2022. The correction was not material to the net settlement exposures previously reported and had no impact to any of the Company’s financial statement line items.
v3.24.0.1
Derivative and Hedging Instruments (Tables)
12 Months Ended
Dec. 31, 2023
Summary of Derivative Instruments [Abstract]  
Summary of Derivative Financial Instruments at Fair Value and Related Notional Amounts
The following table summarizes the fair value of the Company’s derivative financial instruments and the related notional amounts:
December 31, 2023December 31, 2022
 NotionalDerivative AssetsDerivative LiabilitiesNotionalDerivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments
Foreign exchange contracts in a cash flow hedge 1
$1,006 $$25 $642 $$15 
Interest rate contracts in a fair value hedge 2
1,000 — 79 1,000 — 105 
Foreign exchange contracts in a net investment hedge 1
— — — 1,814 103 
Derivatives not designated as hedging instruments
Foreign exchange contracts 1
5,424 34 79 521 
Total derivative assets/liabilities$7,430 $36 $183 $3,977 $108 $126 
1Foreign exchange derivative assets and liabilities are included within prepaid expenses and other current assets and other current liabilities, respectively, on the consolidated balance sheet.
2Interest rate derivative liabilities are included within other current liabilities and other liabilities on the consolidated balance sheet.
Gain (Loss) Related to the Company's Derivative Financial Instruments Designated as Hedging Instruments
The pre-tax gain (loss) related to the Company's derivative financial instruments designated as hedging instruments are as follows:
Gain (Loss) Recognized in OCIGain (Loss) Reclassified from AOCI
Year ended December 31,Location of Gain (Loss) Reclassified from AOCI into EarningsYear ended December 31,
202320222021202320222021
(in millions)(in millions)
Derivative financial instruments in a cash flow hedge relationship:
Foreign exchange contracts$(41)$$Net revenue$(29)$16 $
Interest rate contracts$— $— $— Interest expense$(6)$(6)$(6)
Derivative financial instruments in a net investment hedge relationship:
Foreign exchange contracts $(98)$177 $114 
Gain (Loss) Recognized in Income for the Contracts to Purchase and Sell Foreign Currency Summary
The amount of gain (loss) recognized on the consolidated statement of operations for non-designated derivative contracts is summarized below:
 Year ended December 31,
Derivatives not designated as hedging instruments:202320222021
 (in millions)
Foreign exchange contracts
General and administrative$42 $21 $(10)
v3.24.0.1
Segment Reporting Schedule of Property Plant and Equipment, Net by Geographic Region (Tables)
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of Property, Plant and Equipment, Net by Geographical Location
The following table reflects the geographical location of the Company’s property, equipment and right-of-use assets, net, as of December 31:
202320222021
(in millions)
United States$1,027 $1,123 $1,117 
Other countries1,034 883 790 
Total$2,061 $2,006 $1,907 
v3.24.0.1
Summary of Significant Accounting Policies Narrative (Details)
Dec. 31, 2023
Maximum  
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Historical Cost Method Ownership Percentage 20.00%
Maximum | Consolidated entities in which Company has less than 100% interest  
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Noncontrolling Interest, Ownership Percentage by Parent 100.00%
Other | Minimum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Finite-Lived Intangible Assets, Estimated Useful Life 1 year
Other | Maximum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Finite-Lived Intangible Assets, Estimated Useful Life 20 years
Partnership | Maximum  
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Historical Cost Method Ownership Percentage 5.00%
v3.24.0.1
Acquisitions Narrative (Details)
€ in Millions, $ in Millions
12 Months Ended
Apr. 01, 2022
USD ($)
Jun. 01, 2021
USD ($)
Mar. 01, 2021
USD ($)
Mar. 01, 2021
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]              
Total consideration, representing both cash and contingent consideration         $ 4,700    
Goodwill         7,662 $ 7,660 $ 7,522
Additional businesses acquired, consideration transferred         $ 272    
Nets Denmark A/S, Corporate Services              
Business Acquisition [Line Items]              
Goodwill     $ 2,100        
Business combination, cash consideration     3,600 € 3,000      
Business combination, enterprise value | €       € 2,850      
Expected tax deductible amount of goodwill     $ 800        
Ekata Inc.              
Business Acquisition [Line Items]              
Interests acquired (percent)   100.00%          
Payments to acquire businesses, gross   $ 861          
Business combination, enterprise value   $ 850          
Dynamic Yield LTD              
Business Acquisition [Line Items]              
Interests acquired (percent) 100.00%            
Payments to acquire businesses, gross $ 325            
Goodwill $ 200            
v3.24.0.1
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Assets:      
Goodwill $ 7,660 $ 7,522 $ 7,662
2021 Acquisitions      
Assets:      
Cash and cash equivalents     253
Other current assets     41
Other intangible assets     2,071
Goodwill     2,842
Other assets     15
Total assets     5,222
Liabilities:      
Other current liabilities     112
Deferred income taxes     398
Other liabilities     12
Total liabilities     522
Net assets acquired     $ 4,700
2022 Acquisitions      
Assets:      
Cash and cash equivalents   11  
Other current assets   7  
Other intangible assets   125  
Goodwill   200  
Other assets   9  
Total assets   352  
Liabilities:      
Other current liabilities   15  
Deferred income taxes   3  
Other liabilities   9  
Total liabilities   27  
Net assets acquired   $ 325  
v3.24.0.1
Acquisitions - Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
2021 Acquisitions    
Business Acquisition [Line Items]    
Other intangible assets   $ 2,071
Weighted-Average Useful Life (in years)   17 years 6 months
2021 Acquisitions | Developed technologies    
Business Acquisition [Line Items]    
Other intangible assets   $ 433
Weighted-Average Useful Life (in years)   11 years 8 months 12 days
2021 Acquisitions | Customer relationships    
Business Acquisition [Line Items]    
Other intangible assets   $ 1,614
Weighted-Average Useful Life (in years)   19 years 2 months 12 days
2021 Acquisitions | Other    
Business Acquisition [Line Items]    
Other intangible assets   $ 24
Weighted-Average Useful Life (in years)   7 years 1 month 6 days
2022 Acquisitions    
Business Acquisition [Line Items]    
Other intangible assets $ 125  
Weighted-Average Useful Life (in years) 9 years 7 months 6 days  
2022 Acquisitions | Developed technologies    
Business Acquisition [Line Items]    
Other intangible assets $ 100  
Weighted-Average Useful Life (in years) 7 years 9 months 18 days  
2022 Acquisitions | Customer relationships    
Business Acquisition [Line Items]    
Other intangible assets $ 25  
Weighted-Average Useful Life (in years) 17 years  
2022 Acquisitions | Other    
Business Acquisition [Line Items]    
Other intangible assets $ 0  
v3.24.0.1
Revenue - Disaggregation of Revenues (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Net revenue $ 25,098 $ 22,237 $ 18,884
North American Markets      
Disaggregation of Revenue [Line Items]      
Net revenue 8,359 7,809 6,667
International Markets      
Disaggregation of Revenue [Line Items]      
Net revenue 16,739 14,428 12,217
Payment network      
Disaggregation of Revenue [Line Items]      
Net revenue 15,824 14,358 11,943
Value-added services and solutions      
Disaggregation of Revenue [Line Items]      
Net revenue $ 9,274 $ 7,879 $ 6,941
v3.24.0.1
Revenue - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Revenue recognized on performance obligations $ 2,100  
Accounts Receivable    
Disaggregation of Revenue [Line Items]    
Contract assets 3,851 $ 3,213
Prepaid expenses and other current assets    
Disaggregation of Revenue [Line Items]    
Contract assets 133 118
Other Assets    
Disaggregation of Revenue [Line Items]    
Contract assets 387 442
Other Current Liabilities    
Disaggregation of Revenue [Line Items]    
Deferred revenue 459 434
Other liabilities    
Disaggregation of Revenue [Line Items]    
Deferred revenue $ 318 $ 248
v3.24.0.1
Revenue Narrative - Remaining Performance Obligation Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
$ in Billions
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 1.5
Network Services  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 10 years
v3.24.0.1
Earnings Per Share Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator      
Net income $ 11,195 $ 9,930 $ 8,687
Denominator      
Basic weighted-average shares outstanding 944 968 988
Dilutive stock options and stock units 2 3 4
Diluted weighted-average shares outstanding 946 971 992
Earnings per Share      
Basic Earnings per Share (in dollars per share) $ 11.86 $ 10.26 $ 8.79
Diluted Earnings per Share (in dollars per share) $ 11.83 $ 10.22 $ 8.76
v3.24.0.1
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 8,588 $ 7,008    
Cash, cash equivalents, restricted cash and restricted cash equivalents 10,465 9,196 $ 9,902 $ 12,419
Payment toward legal settlements 929 114 $ 98  
Restricted cash for litigation settlement        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 0 589    
Restricted security deposits held for customers        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 1,845 1,568    
Prepaid expenses and other current assets        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 32 $ 31    
Restricted Cash Fund        
Restricted Cash and Cash Equivalents Items [Line Items]        
Payment toward legal settlements $ 600      
v3.24.0.1
Supplemental Cash Flows (Non-Cash Investing and Financing Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Supplemental Cash Flow Information [Abstract]      
Cash paid for income taxes, net of refunds $ 2,746 $ 2,506 $ 1,820
Cash paid for interest 477 414 399
Cash paid for legal settlements 929 114 98
Dividends declared but not yet paid 616 545 479
Accrued property, equipment and right-of-use assets 147 118 15
Fair value of assets acquired, net of cash acquired 0 341 4,969
Fair value of liabilities assumed related to acquisitions $ 0 $ 27 $ 522
v3.24.0.1
Investments - Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale securities $ 286 $ 272
Held-to-maturity securities 1 306 128
Investments $ 592 $ 400
v3.24.0.1
Investments - Available-for-Sale Investment Securities, Unrealized Gains and Losses (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost $ 286 $ 278
Gross Unrealized Gain 1 0
Gross Unrealized Loss (1) (6)
Available-for-sale securities 286 272
Government and agency securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 86 91
Gross Unrealized Gain 0 0
Gross Unrealized Loss 0 (2)
Available-for-sale securities 86 89
Corporate securities    
Debt Securities, Available-for-Sale [Line Items]    
Amortized Cost 200 187
Gross Unrealized Gain 1 0
Gross Unrealized Loss (1) (4)
Available-for-sale securities $ 200 $ 183
v3.24.0.1
Investments - Maturity Distribution Based on Contractual Terms of Investment Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Available-For-Sale Amortized Cost    
Due within 1 year $ 170  
Due after 1 year through 5 years 116  
Amortized Cost 286 $ 278
Available-For-Sale Fair Value    
Due within 1 year 169  
Due after 1 year through 5 years 117  
Total $ 286 $ 272
v3.24.0.1
Investments - Equity Investments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Increase (Decrease) In Equity Investments [Roll Forward]      
Marketable securities, beginning balance $ 399    
Marketable securities, Purchases (Sales), Net 0    
Marketable Securities, Sales 0    
Marketable securities, Changes in Fair Value 97    
Marketable Securities, Other Changes 10    
Marketable securities, ending balance 506 $ 399  
Nonmarketable securities, beginning balance 1,331    
Nonmarketable Securities, Purchases (Sales), Net 89    
Nonmarketable Securities, Sales (44)    
Nonmarketable securities, Changes in Fair Value (158)    
Non-marketable securities, Other 5    
Nonmarketable securities, ending balance 1,223 1,331  
Total equity investments, beginning balance 1,730    
Total equity investments, Purchases (Sales), net 89    
Total equity investments, Sales (44) (7) $ (186)
Total equity investments, Changes in Fair Value (61)    
Total equity investments, Other 15    
Total equity investments, ending balance $ 1,729 $ 1,730  
v3.24.0.1
Investments - Equity Securities without Readily Determinable Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Measurement alternative $ 1,008 $ 1,087
Equity method 215 244
Total Nonmarketable securities $ 1,223 $ 1,331
v3.24.0.1
Investments - Carrying Value of Measurement Alternative Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]    
Initial cost basis $ 553  
Upward adjustments 630  
Downward adjustments (including impairment) (175)  
Measurement alternative $ 1,008 $ 1,087
v3.24.0.1
Investments - Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]      
Upward adjustments $ 7 $ 114 $ 468
Downward adjustments (including impairment) (145) (23) (2)
Marketable Securities, Unrealized Gain (Loss) $ 97 $ (213) $ 8
v3.24.0.1
Fair Value Measurements - Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets $ 93 $ 74
Deferred compensation plan 91 73
Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets 93 74
Deferred compensation plan 91 73
Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets 0 0
Deferred compensation plan 0 0
Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets 0 0
Deferred compensation plan 0 0
Government and agency securities    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 86 89
Government and agency securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 33 35
Government and agency securities | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 53 54
Government and agency securities | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Corporate securities    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 200 183
Corporate securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Corporate securities | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 200 183
Corporate securities | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Equity securities    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 506 399
Equity securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 506 399
Equity securities | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Equity securities | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Foreign exchange contracts    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 36 108
Derivative instruments 104 21
Foreign exchange contracts | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 0 0
Derivative instruments 0 0
Foreign exchange contracts | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 36 108
Derivative instruments 104 21
Foreign exchange contracts | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 0 0
Derivative instruments 0 0
Interest rate contracts    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Derivative instruments 79 105
Interest rate contracts | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Derivative instruments 0 0
Interest rate contracts | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Derivative instruments 79 105
Interest rate contracts | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Derivative instruments $ 0 $ 0
v3.24.0.1
Fair Value Measurements - Narrative Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total debt outstanding $ 15,681 $ 14,023
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 14,700 $ 12,700
v3.24.0.1
Prepaid Expenses and Other Assets Schedule of Prepaid Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Prepaid Expense and Other Assets [Abstract]    
Customer incentives $ 1,570 $ 1,392
Other 1,073 954
Total prepaid expenses and other current assets $ 2,643 $ 2,346
v3.24.0.1
Prepaid Expenses and Other Assets Schedule of Other Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Prepaid Expense and Other Assets [Abstract]    
Customer incentives $ 5,170 $ 4,578
Equity investments 1,729 1,730
Income taxes receivable 783 633
Other 643 639
Total other assets $ 8,325 $ 7,580
v3.24.0.1
Property, Equipment, and Right-of-Use Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets $ 4,298 $ 3,910
Less: Accumulated depreciation and amortization (2,237) (1,904)
Property, equipment and right-of-use assets, net 2,061 2,006
Buildings, building equipment and land    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 678 652
Equipment    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 1,940 1,711
Furniture and fixtures    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 90 96
Leasehold improvements    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 398 376
Operating lease right-of-use assets    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets $ 1,192 $ 1,075
v3.24.0.1
Property, Equipment and Right-of-Use Assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation expense including amortization for capital leases $ 482 $ 473 $ 424
Operating lease amortization expense $ 141 $ 137 $ 122
Weighted-average remaining lease term of operating lease 8 years 2 months 12 days 8 years 4 months 24 days  
Weighted-average discount rate for operating leases 3.30% 2.50%  
v3.24.0.1
Property, Equipment and Right-of-Use Assets - Operating Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]    
Property, equipment and right-of-use assets, net $ 686 $ 679
Other current liabilities 142 140
Other liabilities $ 633 $ 630
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Liabilities, Current Other Liabilities, Current
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other liabilities Other liabilities
v3.24.0.1
Property, Equipment and Right-of-Use Assets - Estimated Useful Lives (Details)
Dec. 31, 2023
Buildings  
Property, Equipment and Right-of-Use Assets [Line Items]  
Estimated Useful Life 30 years
Building equipment | Minimum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Estimated Useful Life 10 years
Building equipment | Maximum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Estimated Useful Life 15 years
Equipment and furniture and fixtures | Minimum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Estimated Useful Life 3 years
Equipment and furniture and fixtures | Maximum  
Property, Equipment and Right-of-Use Assets [Line Items]  
Estimated Useful Life 5 years
v3.24.0.1
Property, Equipment and Right-of-Use Assets - Maturities of Operating Lease Liabilities (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Operating Leases after Adoption of ASC Topic 842:  
2024 $ 163
2025 129
2026 110
2027 87
2028 70
Thereafter 325
Total operating lease payments 884
Less: Interest (109)
Present value of operating lease liabilities $ 775
v3.24.0.1
Change in Carrying Amount of Goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]    
Beginning balance $ 7,522 $ 7,662
Additions 46 200
Foreign currency translation 92 (340)
Ending balance $ 7,660 $ 7,522
v3.24.0.1
Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 6,133 $ 5,663
Accumulated Amortization (2,209) (1,960)
Net Carrying Amount 3,924 3,703
Unamortized intangible assets:    
Intangible Assets, Gross (Excluding Goodwill) 6,295 5,819
Accumulated Amortization (2,209) (1,960)
Net Carrying Amount 4,086 3,859
Capitalized software 1    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,917 3,448
Accumulated Amortization (1,530) (1,402)
Net Carrying Amount 2,387 2,046
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,165 2,161
Accumulated Amortization (641) (521)
Net Carrying Amount 1,524 1,640
Unamortized intangible assets:    
Customer relationships 162 156
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 51 54
Accumulated Amortization (38) (37)
Net Carrying Amount $ 13 $ 17
v3.24.0.1
Other Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Amortization expense on intangible assets $ 457 $ 414 $ 424
v3.24.0.1
Other Intangible Assets (Schedule of Estimated Future Amortization Expense) (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2024 $ 507  
2025 532  
2026 518  
2027 434  
2028 387  
Thereafter 1,546  
Net Carrying Amount $ 3,924 $ 3,703
v3.24.0.1
Accrued Expenses and Accrued Litigation (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accrued Liabilities [Abstract]    
Customer incentives $ 6,219 $ 5,600
Personnel costs 1,258 1,322
Income and other taxes 486 279
Other 554 600
Total accrued expenses $ 8,517 $ 7,801
v3.24.0.1
Accrued Expenses and Accrued Litigation (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted Cash and Cash Equivalents Items [Line Items]      
Accrued customer and merchant incentives $ 2,777 $ 2,293  
Accrued litigation 723 1,094  
Payment toward legal settlements 929 $ 114 $ 98
Restricted Cash Fund      
Restricted Cash and Cash Equivalents Items [Line Items]      
Payment toward legal settlements $ 600    
v3.24.0.1
Pension, Postretirement and Savings Plans Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]      
Total expense related to defined contribution plans $ 253 $ 204 $ 175
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Projected benefit obligation increase (decrease) $ 28 $ (204)  
Healthcare cost trend rate assumed for next year 7.00% 6.50%  
Ultimate trend rate 5.00% 5.00%  
Year that the rate reaches the ultimate trend rate 8 years 6 years  
Plan assets at fair value $ 400 $ 391  
2024 35    
2025 18    
2026 16    
2027 22    
2028 22    
2029 - 2033 133    
Cash and cash equivalents      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 43 43  
Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 233 234  
Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 124 114  
Other Postretirement Benefits Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit Obligation, beginning 43 62  
Service cost 1 1 1
Interest cost 2 2 2
Actuarial (gain) loss 6 (16)  
Benefits paid (6) (6)  
Transfers in 0 0  
Foreign currency translation 0 0  
Benefit Obligation, ending 46 43 62
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Actual gain/(loss) on plan assets 0 0  
Employer contributions 6 6  
Benefits paid (6) (6)  
Transfers in 0 0  
Foreign currency translation 0 0  
Funded status at end of year (46) (43)  
Noncurrent assets 0 0  
Other liabilities, short-term (3) (3)  
Other liabilities, long-term (43) (40)  
Total amounts recognized on the consolidated balance sheet (46) (43)  
Net actuarial (gain) loss (8) (14)  
Prior service credit 0 (1)  
Balance at end of year $ (8) $ (15)  
Weighted-average assumptions used to determine end of year benefit obligations, Discount Rate 5.00% 5.50%  
Weighted-average assumptions used to determine end of year benefit obligations, rate of compensation increase 3.00% 3.00%  
Expected return on plan assets $ 0 $ 0 0
Amortization of actuarial loss 0 0 0
Amortization of prior service credit (1) (1) (1)
Net periodic benefit cost 2 2 2
Current year actuarial loss (gain) 6 (16) (7)
Amortization of prior service credit 1 1 2
Total other comprehensive loss (income) 7 (15) (5)
Total net periodic benefit cost and other comprehensive loss (income) $ 9 $ (13) $ (3)
Weighted-average assumptions used to determine end of year net periodic benefit, Discount rate 5.50% 2.75% 2.50%
Weighted-average assumptions used to determine end of year net periodic benefit, Rate of compensation increase 3.00% 3.00% 3.00%
Plan assets at fair value $ 0 $ 0 $ 0
2024 3    
2025 3    
2026 4    
2027 4    
2028 4    
2029 - 2033 20    
Pension Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit Obligation, beginning 392 596  
Service cost 14 12 14
Interest cost 18 9 9
Actuarial (gain) loss (15) (156)  
Benefits paid (16) (16)  
Transfers in 8 5  
Foreign currency translation 19 (58)  
Benefit Obligation, ending 420 392 596
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Actual gain/(loss) on plan assets (8) (203)  
Employer contributions 16 25  
Benefits paid (16) (16)  
Transfers in 5 5  
Foreign currency translation 22 (69)  
Funded status at end of year 29 38  
Noncurrent assets 38 44  
Other liabilities, short-term 0 0  
Other liabilities, long-term (9) (6)  
Total amounts recognized on the consolidated balance sheet 29 38  
Net actuarial (gain) loss 34 23  
Prior service credit 1 1  
Balance at end of year 35 24  
Projected benefit obligation 420 392  
Accumulated benefit obligation 419 388  
Fair value of plan assets 449 430  
Expected return on plan assets (18) (14) (19)
Amortization of actuarial loss 0 0 (1)
Amortization of prior service credit 0 0 0
Net periodic benefit cost 14 7 3
Current year actuarial loss (gain) 11 61 (50)
Amortization of prior service credit 0 0 0
Total other comprehensive loss (income) 11 61 (50)
Total net periodic benefit cost and other comprehensive loss (income) 25 68 (47)
Plan assets at fair value $ 449 $ 430 $ 688
Pension Plan | Foreign Plan [Member]      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Weighted-average assumptions used to determine end of year benefit obligations, Discount Rate 4.20% 3.80%  
Weighted-average assumptions used to determine end of year benefit obligations, rate of compensation increase 1.50% 1.50%  
Weighted-average assumptions used to determine end of year net periodic benefit, Discount rate 3.80% 0.90% 0.70%
Weighted-average assumptions used to determine end of year net periodic benefit, Expected return on plan assets 1.80% 1.60% 1.60%
Weighted-average assumptions used to determine end of year net periodic benefit, Rate of compensation increase 1.50% 1.50% 1.50%
Fair Value, Inputs, Level 1      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value $ 167 $ 149  
Fair Value, Inputs, Level 1 | Cash and cash equivalents      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 43 43  
Fair Value, Inputs, Level 1 | Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 124 106  
Fair Value, Inputs, Level 1 | Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Fair Value, Inputs, Level 2      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 233 242  
Fair Value, Inputs, Level 2 | Cash and cash equivalents      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Fair Value, Inputs, Level 2 | Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 109 128  
Fair Value, Inputs, Level 2 | Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 124 114  
Fair Value, Inputs, Level 3      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Fair Value, Inputs, Level 3 | Cash and cash equivalents      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Fair Value, Inputs, Level 3 | Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Fair Value, Inputs, Level 3 | Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 0 0  
Investments at Net Asset Value (NAV)      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Total Plan Assets $ 449 $ 430  
Vocalink Plan | Non-government fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 34.00%    
Vocalink Plan | Cash and cash equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 13.00%    
Vocalink Plan | Government and agency securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 35.00%    
Vocalink Plan | Other      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 11.00%    
Vocalink Plan | Equity Securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 7.00%    
Vocalink Plan | Pension Plan      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Weighted-average assumptions used to determine end of year benefit obligations, Discount Rate 5.15% 4.80%  
Weighted-average assumptions used to determine end of year benefit obligations, rate of compensation increase 2.75% 2.70%  
Weighted-average assumptions used to determine end of year net periodic benefit, Discount rate 4.80% 1.75% 1.55%
Weighted-average assumptions used to determine end of year net periodic benefit, Expected return on plan assets 5.25% 2.30% 3.20%
Weighted-average assumptions used to determine end of year net periodic benefit, Rate of compensation increase 2.70% 3.20% 2.75%
Mutual funds | Investments at Net Asset Value (NAV)      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Alternative Investment $ 49 $ 39  
v3.24.0.1
Debt - Schedule of Long-term Debt (Details)
€ in Millions, $ in Millions, ₨ in Billions
12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
EUR (€)
Jul. 31, 2023
USD ($)
Jul. 31, 2023
INR (₨)
Mar. 31, 2023
USD ($)
Jul. 31, 2022
INR (₨)
Feb. 28, 2022
EUR (€)
Dec. 31, 2015
EUR (€)
Debt Instrument [Line Items]                    
Long-term debt, gross $ 15,869 $ 14,239                
Less: Unamortized discount and debt issuance costs (109) (111)                
Less: Cumulative hedge accounting fair value adjustments 5 (79) (105)                
Total debt outstanding 15,681 14,023                
Less: current portion (1,337) (274)                
Long-term debt 14,344 13,749                
Repayments of debt $ 0 724 $ 650              
INR Term Loan                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 8.64%     8.64%            
Effective Interest Rate 9.09%     9.09%            
Short-term debt $ 0 275           ₨ 22.7    
2023 INR Term Loan                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 9.43%     9.43%            
Effective Interest Rate 9.78%     9.78%            
Short-term debt $ 338 0     $ 342 ₨ 28.1        
Senior Notes | February 2029 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 1.00%     1.00%            
Effective Interest Rate 1.138%     1.138%            
Long-term debt, gross $ 830 800             € 750  
Senior Notes | November 2031 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.00%     2.00%            
Effective Interest Rate 2.112%     2.112%            
Long-term debt, gross $ 750 750                
Senior Notes | March 2031 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 1.90%     1.90%            
Effective Interest Rate 1.981%     1.981%            
Long-term debt, gross $ 600 600                
Senior Notes | 2051 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.95%     2.95%            
Effective Interest Rate 3.013%     3.013%            
Long-term debt, gross $ 700 700                
Senior Notes | 2027 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.30%     3.30%            
Effective Interest Rate 3.42%     3.42%            
Long-term debt, gross $ 1,000 1,000                
Senior Notes | 2030 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.35%     3.35%            
Effective Interest Rate 3.43%     3.43%            
Long-term debt, gross $ 1,500 1,500                
Senior Notes | Senior Notes due March 2050                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.85%   3.85% 3.85%            
Effective Interest Rate 3.896%     3.896%            
Long-term debt, gross $ 1,500 1,500                
Senior Notes | 2029 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.95%     2.95%            
Effective Interest Rate 3.03%     3.03%            
Long-term debt, gross $ 1,000 1,000                
Senior Notes | 2049 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.65%     3.65%            
Effective Interest Rate 3.689%     3.689%            
Long-term debt, gross $ 1,000 1,000                
Senior Notes | 2025 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.00%     2.00%            
Effective Interest Rate 2.147%     2.147%            
Long-term debt, gross $ 750 750                
Senior Notes | 2028 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.50%     3.50%            
Effective Interest Rate 3.598%     3.598%            
Long-term debt, gross $ 500 500                
Senior Notes | 2048 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.95%     3.95%            
Effective Interest Rate 3.99%     3.99%            
Long-term debt, gross $ 500 500                
Senior Notes | 2026 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.95%     2.95%            
Effective Interest Rate 3.044%     3.044%            
Long-term debt, gross $ 750 750                
Senior Notes | 2046 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.80%     3.80%            
Effective Interest Rate 3.893%     3.893%            
Long-term debt, gross $ 600 600                
Senior Notes | Senior Notes due December 2027                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.10%     2.10%            
Effective Interest Rate 2.189%     2.189%            
Long-term debt, gross $ 885 854                
Senior Notes | Senior Notes due December 2030                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 2.50%     2.50%            
Effective Interest Rate 2.562%     2.562%            
Long-term debt, gross $ 166 160                
Senior Notes | 2024 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 3.375%     3.375%            
Effective Interest Rate 3.484%     3.484%            
Long-term debt, gross $ 1,000 1,000                
Senior Notes | 2015 Euro Notes                    
Debt Instrument [Line Items]                    
Long-term debt, gross | €       € 950           € 1,650
Senior Notes | March 2028 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 4.875%     4.875%            
Effective Interest Rate 5.003%     5.003%            
Long-term debt, gross $ 750 0         $ 750      
Senior Notes | March 2033 Notes                    
Debt Instrument [Line Items]                    
Debt instrument stated rate (percent) 4.85%     4.85%            
Effective Interest Rate 4.923%     4.923%            
Long-term debt, gross $ 750 $ 0         $ 750      
v3.24.0.1
Debt - Narrative (Details)
€ in Millions, ₨ in Millions, $ in Millions
1 Months Ended 12 Months Ended
Apr. 30, 2023
USD ($)
Apr. 30, 2023
INR (₨)
Mar. 31, 2023
USD ($)
Jul. 31, 2022
USD ($)
Jul. 31, 2022
INR (₨)
Feb. 28, 2022
USD ($)
Feb. 28, 2022
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
USD ($)
Jul. 31, 2023
USD ($)
Jul. 31, 2023
INR (₨)
Dec. 31, 2022
USD ($)
Nov. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 15,869     $ 14,239    
Commercial paper program                 8,000          
Revolving Credit Facility                            
Debt Instrument [Line Items]                            
Credit facility                 8,000          
INR Term Loan                            
Debt Instrument [Line Items]                            
Proceeds from issuance of debt       $ 284 ₨ 22,600                  
Short-term debt         ₨ 22,700       $ 0     275    
Debt instrument stated rate (percent)                 8.64%          
Effective Interest Rate                 9.09%          
April 2023 INR Term Loan                            
Debt Instrument [Line Items]                            
Proceeds from issuance of debt $ 61 ₨ 4,960                        
Short-term debt | ₨   ₨ 4,970                        
Debt instrument stated rate (percent)   9.48%                        
Effective Interest Rate   9.705%                        
2023 INR Term Loan                            
Debt Instrument [Line Items]                            
Short-term debt                 $ 338 $ 342 ₨ 28,100 0    
Debt instrument stated rate (percent)                 9.43%          
Effective Interest Rate                 9.78%          
Senior Notes | February 2029 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross             € 750   $ 830     800    
Proceeds from issuance of debt           $ 843 € 743              
Debt instrument stated rate (percent)                 1.00%          
Effective Interest Rate                 1.138%          
Senior Notes | March 2031 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 600     600    
Aggregate principal amount                           $ 600
Debt instrument stated rate (percent)                 1.90%          
Effective Interest Rate                 1.981%          
Senior Notes | 2051 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 700     700    
Aggregate principal amount                           $ 700
Debt instrument stated rate (percent)                 2.95%          
Effective Interest Rate                 3.013%          
Senior Notes | November 2031 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 750     750    
Aggregate principal amount                         $ 750  
Debt instrument stated rate (percent)                 2.00%          
Effective Interest Rate                 2.112%          
Senior Notes | 2021 USD Notes                            
Debt Instrument [Line Items]                            
Proceeds from issuance of debt               $ 2,024            
Senior Notes | 2027 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 1,000     1,000    
Debt instrument stated rate (percent)                 3.30%          
Effective Interest Rate                 3.42%          
Senior Notes | 2030 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 1,500     1,500    
Debt instrument stated rate (percent)                 3.35%          
Effective Interest Rate                 3.43%          
Senior Notes | Senior Notes due March 2050                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 1,500     1,500    
Debt instrument stated rate (percent)               3.85% 3.85%          
Effective Interest Rate                 3.896%          
Senior Notes | 2029 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 1,000     1,000    
Debt instrument stated rate (percent)                 2.95%          
Effective Interest Rate                 3.03%          
Senior Notes | 2049 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 1,000     1,000    
Debt instrument stated rate (percent)                 3.65%          
Effective Interest Rate                 3.689%          
Senior Notes | 2025 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross                 $ 750     750    
Debt instrument stated rate (percent)                 2.00%          
Effective Interest Rate                 2.147%          
Senior Notes | March 2028 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross     $ 750           $ 750     0    
Debt instrument stated rate (percent)                 4.875%          
Effective Interest Rate                 5.003%          
Senior Notes | March 2033 Notes                            
Debt Instrument [Line Items]                            
Long-term debt, gross     750           $ 750     $ 0    
Debt instrument stated rate (percent)                 4.85%          
Effective Interest Rate                 4.923%          
Senior Notes | Notes Issued 2023, USD                            
Debt Instrument [Line Items]                            
Proceeds from issuance of debt     $ 1,489                      
v3.24.0.1
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
2024 $ 1,338  
2025 750  
2026 750  
2027 1,885  
2028 1,250  
Thereafter 9,896  
Total $ 15,869 $ 14,239
v3.24.0.1
Stockholders' Equity (Narrative) (Details)
shares in Millions
5 Months Ended
May 31, 2006
shares
Class A Common Stock | Mastercard Foundation  
Class of Stock [Line Items]  
Issuance and donation of shares 135
v3.24.0.1
Stockholders' Equity (Schedule of Classes of Capital Stock) (Details) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Public Investors (Class A Stockholders)    
Class of Stock [Line Items]    
Equity ownership, percentage 88.80% 88.50%
General voting power, percentage 89.50% 89.30%
Principal or Affiliate Members (Class B Stockholders)    
Class of Stock [Line Items]    
Equity ownership, percentage 0.80% 0.80%
General voting power, percentage 0.00% 0.00%
The MasterCard Foundation (Class A Stockholders)    
Class of Stock [Line Items]    
Equity ownership, percentage 10.40% 10.70%
General voting power, percentage 10.50% 10.70%
Class A Common Stock    
Class of Stock [Line Items]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized shares (in shares) 3,000,000,000 3,000,000,000
Class B Common Stock    
Class of Stock [Line Items]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized shares (in shares) 1,200,000,000 1,200,000,000
Preferred Stock    
Class of Stock [Line Items]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 300,000,000 300,000,000
v3.24.0.1
Stockholders' Equity - Dividends Declared (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dividends Payable [Line Items]      
Annual dividends declared $ 2,231 $ 1,968 $ 1,781
  Common Stock      
Dividends Payable [Line Items]      
Cash dividends declared on Class A and Class B common stock, per share $ 2.37 $ 2.04 $ 1.81
Retained Earnings      
Dividends Payable [Line Items]      
Annual dividends declared $ 2,231 $ 1,968 $ 1,781
v3.24.0.1
Stockholders' Equity - Statement of Changes in Common Shares Outstanding (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Class A Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Purchases of treasury stock (23.8) (25.7) (16.5)
  Common Stock | Class A Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance 948.4 972.1 986.9
Purchases of treasury stock (23.8) (25.7) (16.5)
Share-based payments 2.3 1.8 1.2
Conversion of Class B to Class A common stock 0.4 0.2 0.5
Balance 927.3 948.4 972.1
  Common Stock | Class B Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance 7.6 7.8 8.3
Conversion of Class B to Class A common stock (0.4) (0.2) (0.5)
Balance 7.2 7.6 7.8
v3.24.0.1
Stockholders' Equity - Summary of Share Repurchase Authorization (Details) - USD ($)
$ / shares in Units, shares in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Equity, Class of Treasury Stock [Line Items]      
Remaining authorization $ 14,100,000,000    
Class A Common Stock      
Equity, Class of Treasury Stock [Line Items]      
Board authorization 11,000,000,000 $ 9,000,000,000 $ 8,000,000,000
Dollar-value of shares repurchased 1 $ 9,032,000,000 $ 8,753,000,000 $ 5,904,000,000
Shares repurchased (in shares) 23.8 25.7 16.5
Average price per share (in dollars per share) $ 379.49 $ 340.60 $ 356.82
v3.24.0.1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 6,356 $ 7,383 $ 6,488
Increase / (Decrease) 128 (435)  
Reclassifications 26 (9)  
Ending balance 6,975 6,356 7,383
Loss on settlement of treasury rate locks, after-tax (42) (21) 10
Foreign Currency Translation Adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (1,414) (739)  
Increase / (Decrease) 295 (675)  
Reclassifications 0 0  
Ending balance (1,119) (1,414) (739)
Translation Adjustments on Net Investment Hedge      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 309 34  
Increase / (Decrease) (128) 275  
Reclassifications 0 0  
Ending balance 181 309 34
Cash Flow Hedges      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (123) (128)  
Increase / (Decrease) 0 0  
Reclassifications 5 5  
Ending balance (118) (123) (128)
Cash Flow Hedges | Foreign exchange contracts      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (8) 4  
Increase / (Decrease) (31) 1  
Reclassifications 22 (13)  
Ending balance (17) (8) 4
Defined Benefit Pension and Other Postretirement Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (11) 21  
Increase / (Decrease) (13) (31)  
Reclassifications (1) (1)  
Ending balance (25) (11) 21
Investment Securities Available-for-Sale      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (6) (1)  
Increase / (Decrease) 5 (5)  
Reclassifications 0 0  
Ending balance (1) (6) (1)
Accumulated other comprehensive income (loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (1,253) (809)  
Ending balance $ (1,099) $ (1,253) $ (809)
v3.24.0.1
Share-Based Payments - Narrative (Details)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
shares
Long-Term Incentive Plan | Class A Common Stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares reserve for future issuance | shares 116
Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 10 years
Unrecognized compensation cost $ 16
Period over which unrecognized cost will be recognized, in years 1 year 7 months 6 days
Stock Options Granted On or After March 1, 2022 | Vest Ratably Over Three Years  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 3 years
Stock Options Granted Before March 1, 2022 | Vest Ratably Over Four Years  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 4 years
Restricted Stock Units (RSUs) Granted On or After March 1, 2022 | Vest Ratably Over Three Years  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 3 years
Restricted Stock Units (RSUs) Granted On Or After March 1, 2020 But Before March 1, 2022 | Vest Ratably Over Four Years  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 4 years
Restricted Stock Units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost $ 372
Period over which unrecognized cost will be recognized, in years 1 year 8 months 12 days
Restricted Stock Units (RSUs) | Vesting period for retirement or disability  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 7 months
Restricted Stock Units (RSUs) | Minimum vesting from date of retirement eligibility  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 7 months
Performance Shares  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 7 months
Unrecognized compensation cost $ 34
Period over which unrecognized cost will be recognized, in years 1 year 7 months 6 days
Performance Shares | Vest Ratably Over Three Years  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period 3 years
v3.24.0.1
Share-Based Payments (Schedule of Weighted-Average Assumptions Used in the Valuation of Awards) (Details) - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement, Additional Disclosure [Abstract]      
Risk-free rate of return 4.20% 1.60% 0.90%
Expected term (in years) 6 years 6 years 6 years
Expected volatility 29.50% 24.60% 26.10%
Expected dividend yield 0.60% 0.60% 0.50%
Weighted-average fair value per option granted $ 123.22 $ 86.92 $ 91.70
v3.24.0.1
Share-Based Payments (Summary of Stock Option Activity) (Details)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Options outstanding at beginning of period | shares 4.7
Options granted | shares 0.3
Options exercised | shares (1.9)
Options forfeited | shares (0.1)
Options expired | shares (0.0)
Options outstanding at end of period | shares 3.0
Options exercisable at the end of the period | shares 2.4
Options vested and expected to vest at the end of the period | shares 3.0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]  
Weighted-average exercise price, options outstanding at the beginning of the period | $ / shares $ 173
Weighted-average exercise price, options granted | $ / shares 354
Weighted-average exercise price, options exercised | $ / shares 124
Weighted-average exercise price, options forfeited | $ / shares 338
Weighted-average exercise price, options expired | $ / shares 283
Weighted-average exercise price, options outstanding at the end of the period | $ / shares 217
Weighted-average exercise price, options exercisable at the end of the period | $ / shares 184
Weighted-average exercise price, options vested and expected to vest at he end of the period | $ / shares $ 217
Weighted-average remaining contractual term, options outstanding at he end of the period, in years 5 years
Weighted-average remaining contractual term, options exercisable at he end of the period, in years 4 years 2 months 12 days
Weighted-average remaining contractual term, options vested and expected to vest at he end of the period, in years 5 years
Aggregate intrinsic value, options outstanding at he end of the period | $ $ 632
Aggregate intrinsic value, options exercisable at he end of the period | $ 581
Aggregate intrinsic value, options vested and expected to vest at he end of the period | $ $ 632
v3.24.0.1
Share-Based Payments (Summary of Restricted Stock Unit and Performance Stock Activity) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding, beginning of period (in shares) 1.8    
Granted (in shares) 1.2    
Converted (in shares) (0.7)    
Forfeited (in shares) (0.1)    
Outstanding, end of period (in shares) 2.2 1.8  
RSUs units expected to vest at the end of the period 2.1    
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, units outstanding, beginning of period $ 335    
Weighted-average grant-date fair value, granted 350 $ 340 $ 358
Weighted-average grant-date fair value, converted 331    
Weighted-average grant-date fair value, forfeited 343    
Weighted-average grant-date fair value, units outstanding, end of period 344 $ 335  
Weighted-average grant-date fair value, units vested and expected to vest at the end of the period $ 344    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract]      
Aggregate intrinsic value, units outstanding at the end of the period $ 945    
Aggregate intrinsic value, units expected to vest at the end of the period $ 913    
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding, beginning of period (in shares) 0.4    
Granted (in shares) 0.2    
Converted (in shares) (0.1)    
Other (in shares) 0.1    
Outstanding, end of period (in shares) 0.6 0.4  
RSUs units expected to vest at the end of the period 0.6    
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, units outstanding, beginning of period $ 352    
Weighted-average grant-date fair value, granted 365 $ 335 $ 385
Weighted-average grant-date fair value, converted 296    
Weighted-average grant-date fair value, other 386    
Weighted-average grant-date fair value, units outstanding, end of period 365 $ 352  
Weighted-average grant-date fair value, units vested and expected to vest at the end of the period $ 365    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract]      
Aggregate intrinsic value, units outstanding at the end of the period $ 271    
Aggregate intrinsic value, units expected to vest at the end of the period $ 266    
v3.24.0.1
Share-Based Payments Schedule of Additional Share-Based Payment Information (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense: Options, RSUs and PSUs $ 460 $ 295 $ 273
Income tax benefit recognized for equity awards 99 61 57
Share-based Payment Arrangement, Exercise of Option, Tax Benefit 95 49 36
Total intrinsic value of stock options exercised $ 487 $ 231 $ 169
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value of awards granted $ 350 $ 340 $ 358
Total grant-date fair value of awards vested $ 235 $ 305 $ 202
Total intrinsic value of units converted into shares of Class A common stock $ 253 $ 420 $ 360
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value of awards granted $ 365 $ 335 $ 385
Total grant-date fair value of awards vested $ 12 $ 0 $ 20
Total intrinsic value of units converted into shares of Class A common stock $ 14 $ 0 $ 32
v3.24.0.1
Commitments Narrative (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Accrued liabilities related to sponsorships and licensing agreements under noncancelable agreements $ 21
v3.24.0.1
Commitments Future Minimum Payments Due Under Non-Cancelable Agreements (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Sponsorship, Licensing & Other  
2024 $ 668
2025 634
2026 442
2027 327
2028 171
Thereafter 1
Total $ 2,243
v3.24.0.1
Income Taxes Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Jan. 01, 2010
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Valuation Allowance [Line Items]          
Effective income tax rate   17.90% 15.40% 15.70%  
Valuation allowance, deferred tax asset, increase (decrease), amount   $ 324 $ (324) $ (6)  
Effective income tax rate on taxable income in excess of base amount, period in effect 10 years        
Impact of incentive grant received reducing income tax liability value   $ 571 $ 454 $ 300  
Earning per share diluted impact of incentive grant received reducing income tax liability   $ 0.60 $ 0.47 $ 0.30  
Earnings permanently reinvested   $ 3,600      
U.S. foreign tax credits   635 $ 274    
Net operating losses   149 156    
Unrecognized tax benefit   431 414 $ 360 $ 388
Unrecognized tax benefits that would reduce the effective tax rate   378      
U.S. foreign tax credit carryforward          
Valuation Allowance [Line Items]          
Valuation allowance, deferred tax asset, increase (decrease), amount   $ 327 $ (333) $ 0  
v3.24.0.1
Income Taxes Schedule of Domestic and Foreign Earnings (Loss) Before Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
United States $ 4,506 $ 4,228 $ 4,261
Foreign 9,133 7,504 6,046
Income before income taxes $ 13,639 $ 11,732 $ 10,307
v3.24.0.1
Income Taxes Components of Income Tax Provision (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current      
Federal $ 991 $ 1,024 $ 663
State and local 127 133 51
Foreign 1,563 1,296 976
Current 2,681 2,453 1,690
Deferred      
Federal (180) (661) (31)
State and local (18) (40) (4)
Foreign (39) 50 (35)
Deferred (237) (651) (70)
Income tax expense $ 2,444 $ 1,802 $ 1,620
v3.24.0.1
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Amount      
Income before income taxes $ 13,639 $ 11,732 $ 10,307
Federal statutory tax 2,864 2,464 2,164
State tax effect, net of federal benefit 82 72 60
Foreign tax effect (393) (347) (283)
Valuation allowance - U.S. foreign tax credit 327 (333) 0
U.S. tax expense on foreign operations 39 111 63
Foreign-derived intangible income deduction (144) (129) (69)
U.S. tax benefits 0 0 (132)
Windfall benefit (88) (68) (67)
Other, net (243) 32 (116)
Income tax expense $ 2,444 $ 1,802 $ 1,620
Percent      
Federal statutory tax 21.00% 21.00% 21.00%
State tax effect, net of federal benefit 0.60% 0.60% 0.60%
Foreign tax effect (2.90%) (3.00%) (2.70%)
Valuation allowance - U.S. foreign tax credit 2.40% (2.80%) 0.00%
U.S. tax expense on foreign operations 0.30% 0.90% 0.60%
Foreign-derived intangible income deduction (1.10%) (1.10%) (0.70%)
U.S. tax benefits 0.00% 0.00% (1.30%)
Windfall benefit (0.60%) (0.60%) (0.70%)
Other, net (1.80%) 0.30% (1.10%)
Income tax expense 17.90% 15.40% 15.70%
v3.24.0.1
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred Tax Assets        
Accrued liabilities $ 863 $ 697    
Compensation and benefits 335 316    
State taxes and other credits 47 43    
Net operating losses 149 156    
U.S. foreign tax credits 635 274    
Property and equipment 277 52    
Intangible assets 182 186    
Lease liabilities 158 65    
Other items 156 155    
Less: Valuation allowance (758) (114) $ (415) $ (353)
Total Deferred Tax Assets 2,044 1,830    
Deferred Tax Liabilities        
Prepaid expenses and other accruals 211 186    
Gains on equity investments 112 132    
Goodwill and intangible assets 518 561    
Right-of-use lease assets 138 58    
Other items 79 135    
Total Deferred Tax Liabilities 1,058 1,072    
Net Deferred Tax Assets $ 986 $ 758    
v3.24.0.1
Income Taxes Summary of Changes to Valuation Allowance on Deferred Tax Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Valuation Allowance [Line Items]      
Deferred tax assets, valuation allowance, beginning of period $ 114 $ 415 $ 353
Changes to Related Gross Deferred Tax Assets 320 23 68
Change/(Release) 324 (324) (6)
Deferred tax assets, valuation allowance, end of period 758 114 415
U.S. foreign tax credit carryforward      
Valuation Allowance [Line Items]      
Deferred tax assets, valuation allowance, beginning of period 0 333 276
Changes to Related Gross Deferred Tax Assets 308 0 57
Change/(Release) 327 (333) 0
Deferred tax assets, valuation allowance, end of period 635 0 333
Net operating and capital losses      
Valuation Allowance [Line Items]      
Deferred tax assets, valuation allowance, beginning of period 114 82 77
Changes to Related Gross Deferred Tax Assets 12 23 11
Change/(Release) (3) 9 (6)
Deferred tax assets, valuation allowance, end of period $ 123 $ 114 $ 82
v3.24.0.1
Income Taxes Reconciliation of Beginning and Ending Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Beginning balance $ 414 $ 360 $ 388
Current year tax positions 23 22 17
Prior year tax positions 16 65 4
Prior year tax positions (7) (14) (31)
Settlements with tax authorities 0 (13) (15)
Expired statute of limitations (15) (6) (3)
Ending balance $ 431 $ 414 $ 360
v3.24.0.1
Legal and Regulatory Proceedings (Details)
€ in Billions, £ in Billions
1 Months Ended 12 Months Ended
Sep. 30, 2019
USD ($)
Oct. 31, 2011
plaintiff
Feb. 28, 2011
Dec. 31, 2023
USD ($)
claimant
fax
Dec. 31, 2023
GBP (£)
fax
Dec. 31, 2023
EUR (€)
fax
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
GBP (£)
claimant
Aug. 31, 2023
Legal And Regulatory                    
Accrued litigation       $ 723,000,000     $ 1,094,000,000      
Payment toward legal settlements       929,000,000     114,000,000 $ 98,000,000    
Restricted cash for litigation settlement       0     589,000,000      
Provision for litigation       $ 539,000,000     356,000,000 94,000,000    
Number of unsolicited advertisements | fax       381,000 381,000 381,000        
Damages sought per claim       $ 500            
U.K. Merchant Lawsuit Settlement                    
Legal And Regulatory                    
Provision for litigation             223,000,000 $ 94,000,000    
U.K. Merchant Lawsuit Settlement | Pending Litigation                    
Legal And Regulatory                    
Unresolved damages claims remaining       1,300,000,000         £ 1.0  
U.K. And Pan-European Merchant Lawsuit Settlement                    
Legal And Regulatory                    
Provision for litigation       195,000,000            
2022 Mastercard and Visa Proposed Collective Action Complaint in the U.K.                    
Legal And Regulatory                    
Amount of damages sought (approximately) | £         £ 1.0          
Proposed U.K. Interchange Collective Action                    
Legal And Regulatory                    
Amount of damages sought (approximately)       13,000,000,000 £ 10.0          
Portugal Proposed Interchange Collective Action                    
Legal And Regulatory                    
Amount of damages sought (approximately)       $ 400,000,000   € 0.4        
Complaint period       20 years 20 years 20 years        
ATM Operators Complaint                    
Legal And Regulatory                    
Number of claimants in case | plaintiff   13                
Amount of damages sought (approximately) $ 1,000,000,000                  
U.S. Liability Shift Litigation                    
Legal And Regulatory                    
Loss Contingency, Pending Claims, Number | claimant       4         4  
Amount of damages sought (approximately)       $ 1,000,000,000            
Restricted Cash Fund                    
Legal And Regulatory                    
Payment toward legal settlements       600,000,000            
Event Involving Visa Parties, Member Banks and Mastercard                    
Legal And Regulatory                    
Percent of settlement Mastercard would pay     12.00%              
Event Involving Member Banks and Mastercard                    
Legal And Regulatory                    
Percent of settlement Mastercard would pay     36.00%              
U.S. Merchant Litigation - Class Litigation | Maximum                    
Legal And Regulatory                    
Percentage of opted out merchants to terminate                   25.00%
U.S. Merchant Lawsuit Settlement                    
Legal And Regulatory                    
Accrued litigation       596,000,000     $ 894,000,000      
Additional litigation accrual       $ 344,000,000            
v3.24.0.1
Settlement and Other Risk Management Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Settlement and Other Risk Management [Abstract]    
Travelers cheques outstanding, notional value $ 340 $ 342
Travelers cheques covered by collateral arrangements $ 272 $ 273
v3.24.0.1
Settlement and Other Risk Management Estimated Settlement Exposure and Portion of Uncollateralized Settlement Exposure for MasterCard-Branded Transactions (Details) - Guarantee Obligations - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Gross settlement exposure $ 75,023 $ 64,885
Risk mitigation arrangements applied to settlement exposure 1 (12,167) (9,224)
Net settlement exposure 1 $ 62,856 $ 55,661
v3.24.0.1
Derivative and Hedging Instruments - Narrative (Details)
€ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2023
EUR (€)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
EUR (€)
Dec. 31, 2022
EUR (€)
Dec. 31, 2015
EUR (€)
Foreign Exchange Risk Management                
Pre-tax, net foreign currency gain (loss) of net investment hedge | $ $ (98)   $ 177   $ 114      
Terms of the foreign currency forward contracts 18 months 18 months            
Senior Notes due March 2050 | Senior Notes                
Foreign Exchange Risk Management                
Long-term debt related to interest rate swap | $         $ 1,000      
Debt instrument stated rate (percent) 3.85%       3.85% 3.85%    
Euro-Denominated Debt                
Foreign Exchange Risk Management                
Pre-tax, net foreign currency gain (loss) of net investment hedge | $ $ (67)   176   $ 155      
Cash Flow Hedging | Interest Rate Risk                
Foreign Exchange Risk Management                
Cash flow hedge, loss, before reclassification, after tax | $ 118              
Net Investment Hedging                
Foreign Exchange Risk Management                
Euro-denominated debt designated as hedge of net investment in European foreign operations denominated in euros | €           € 1,600 € 1,700 € 1,650
Derivative, de-designated, amount | €       € 700        
Net Investment Hedging | Euro-Denominated Debt                
Foreign Exchange Risk Management                
Euro-denominated debt designated as hedge of net investment in European foreign operations denominated in euros | €             € 750  
Derivative, de-designated, amount | €   € 109            
Net foreign currency gain (loss), after tax | $ $ 181   $ 309          
Net Investment Hedging | Foreign exchange contracts                
Foreign Exchange Risk Management                
Derivative, de-designated, amount | €   € 2,825            
v3.24.0.1
Derivative and Hedging Instruments - Fair Value of Company's Derivative Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Foreign Exchange Risk Management    
Notional $ 7,430 $ 3,977
Derivative Assets 36 108
Derivative Liabilities 183 126
Not Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 5,424 521
Derivative Assets 34 1
Derivative Liabilities 79 2
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 1,006 642
Derivative Assets 2 4
Derivative Liabilities 25 15
Fair Value Hedging | Designated as Hedging Instrument | Interest rate contracts | Prepaid Expenses, Other Current Assets, and Other Liabilities    
Foreign Exchange Risk Management    
Notional   1,000
Derivative Assets   0
Derivative Liabilities   105
Fair Value Hedging | Designated as Hedging Instrument | Interest rate contracts | Other Current Liabilities and Other Liabilities    
Foreign Exchange Risk Management    
Notional 1,000  
Derivative Assets 0  
Derivative Liabilities 79  
Net Investment Hedging | Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 0 1,814
Derivative Assets 0 103
Derivative Liabilities $ 0 $ 4
v3.24.0.1
Derivative and Hedging Instruments - Gain (Loss) Related to the Company's Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax $ (41) $ 1 $ 6
Realized gain (loss) on cash flow hedges reclassified from AOCI (35) 10 (5)
Pre-tax, net foreign currency gain (loss) of net investment hedge (98) 177 114
Foreign exchange contracts      
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax (41) 1 6
Foreign exchange contracts | Net revenue      
Foreign Exchange Risk Management      
Realized gain (loss) on cash flow hedges reclassified from AOCI (29) 16 1
Interest rate contracts      
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax 0 0 0
Interest rate contracts | Interest expense      
Foreign Exchange Risk Management      
Realized gain (loss) on cash flow hedges reclassified from AOCI $ (6) $ (6) $ (6)
v3.24.0.1
Derivative and Hedging Instruments - Gain (Loss) Recognized in Income for the Contracts to Purchase and Sell Foreign Currency Summary (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Summary of Derivative Instruments [Abstract]      
Gain (loss) for contracts to purchase and sell foreign currency $ 42 $ 21 $ (10)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] General and administrative General and administrative General and administrative
v3.24.0.1
Segment Reporting (Narrative) (Details)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting [Abstract]      
Percentage of revenue generated in the U.S. 30.00% 33.00% 32.00%
v3.24.0.1
Segment Reporting - Schedule of Property, Plant and Equipment, Net by Geographical Location (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net $ 2,061 $ 2,006 $ 1,907
United States      
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net 1,027 1,123 1,117
Other countries      
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net $ 1,034 $ 883 $ 790