MASTERCARD INC, 10-K filed on 2/14/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Feb. 08, 2023
Jun. 30, 2022
Document Type 10-K    
Document Transition Report false    
Document Period End Date Dec. 31, 2022    
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    
Entity Shell Company false    
Entity Public Float     $ 270.1
Entity Central Index Key 0001141391    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A Common Stock      
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share    
Trading Symbol MA    
Security Exchange Name NYSE    
Entity Common Stock, Shares Outstanding   945,723,000  
Senior Notes due December 2027      
Title of 12(b) Security 2.1% Notes due 2027    
Trading Symbol MA27    
Security Exchange Name NYSE    
One Point Zero Percent Notes Due 2029      
Title of 12(b) Security 1.0% Notes due 2029    
Trading Symbol MA29A    
Security Exchange Name NYSE    
Senior Notes due December 2030      
Title of 12(b) Security 2.5% Notes due 2030    
Trading Symbol MA30    
Security Exchange Name NYSE    
Class B Common Stock      
Entity Common Stock, Shares Outstanding   7,519,534  
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location New York, New York
v3.22.4
Consolidated Statement of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Net revenue $ 22,237 $ 18,884 $ 15,301
Operating Expenses:      
General and administrative 8,078 7,087 5,910
Advertising and marketing 789 895 657
Depreciation and amortization 750 726 580
Provision for litigation 356 94 73
Total operating expenses 9,973 8,802 7,220
Operating income 12,264 10,082 8,081
Other Income (Expense):      
Investment income 61 11 24
Gains (losses) on equity investments, net (145) 645 30
Interest expense (471) (431) (380)
Other income (expense), net 23 0 5
Total other income (expense) (532) 225 (321)
Income before income taxes 11,732 10,307 7,760
Income tax expense 1,802 1,620 1,349
Net Income $ 9,930 $ 8,687 $ 6,411
Basic Earnings per Share (in dollars per share) $ 10.26 $ 8.79 $ 6.40
Basic weighted-average shares outstanding (in shares) 968 988 1,002
Diluted Earnings per Share (in dollars per share) $ 10.22 $ 8.76 $ 6.37
Diluted weighted-average shares outstanding (in shares) 971 992 1,006
v3.22.4
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net Income $ 9,930 $ 8,687 $ 6,411
Other comprehensive income (loss):      
Foreign currency translation adjustments (712) (442) 345
Income tax effect 37 55 (59)
Foreign currency translation adjustments, net of income tax effect (675) (387) 286
Translation adjustments on net investment hedges 353 269 (177)
Income tax effect (78) (60) 40
Translation adjustments on net investment hedges, net of income tax effect 275 209 (137)
Cash flow hedges 1 6 (189)
Income tax effect 0 (1) 42
Reclassification adjustment for cash flow hedges (10) 5 4
Income tax effect 2 (1) (1)
Cash flow hedges, net of income tax effect (7) 9 (144)
Defined benefit pension and other postretirement plans (45) 57 (12)
Income tax effect 14 (14) 2
Reclassification adjustment for defined benefit pension and other postretirement plans (1) (2) (1)
Income tax effect 0 0 0
Defined benefit pension and other postretirement plans, net of income tax effect (32) 41 (11)
Investment securities available-for-sale (6) (1) (1)
Income tax effect 1 0 0
Investment securities available-for-sale, net of income tax effect (5) (1) (1)
Other comprehensive income (loss), net of income tax effect (444) (129) (7)
Comprehensive Income $ 9,486 $ 8,558 $ 6,404
v3.22.4
Consolidated Balance Sheet - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 7,008 $ 7,421
Restricted cash for litigation settlement 589 586
Investments 400 473
Accounts receivable 3,425 3,006
Settlement assets 1,270 1,319
Restricted security deposits held for customers 1,568 1,873
Prepaid expenses and other current assets 2,346 2,271
Total current assets 16,606 16,949
Property, equipment and right-of-use assets, net 2,006 1,907
Deferred income taxes 1,151 486
Goodwill 7,522 7,662
Other intangible assets, net 3,859 3,671
Other assets 7,580 6,994
Total Assets 38,724 37,669
Liabilities, Redeemable Non-controlling Interests and Equity    
Accounts payable 926 738
Settlement obligations 1,111 913
Restricted security deposits held for customers 1,568 1,873
Accrued litigation 1,094 840
Accrued expenses 7,801 6,642
Short-term debt 274 792
Other current liabilities 1,397 1,364
Total current liabilities 14,171 13,162
Long-term debt 13,749 13,109
Deferred income taxes 393 395
Other liabilities 4,034 3,591
Total Liabilities 32,347 30,257
Commitments and Contingencies
Redeemable non-controlling interests 21 29
Stockholders’ Equity    
Additional paid-in-capital 5,298 5,061
Class A treasury stock, at cost, 451 and 425 shares, respectively (51,354) (42,588)
Retained earnings 53,607 45,648
Accumulated other comprehensive income (loss) (1,253) (809)
Mastercard Incorporated Stockholders' Equity 6,298 7,312
Non-controlling interests 58 71
Total Equity 6,356 7,383
Total Liabilities, Redeemable Non-controlling Interests and Equity 38,724 37,669
Class A Common Stock    
Stockholders’ Equity    
Common stock value 0 0
Class B Common Stock    
Stockholders’ Equity    
Common stock value $ 0 $ 0
v3.22.4
Consolidated Balance Sheet (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Treasury stock (in shares) 451,000,000 425,000,000
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) 1,399,000,000 1,397,000,000
Common stock, outstanding (in shares) 948,000,000 972,000,000
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) 8,000,000 8,000,000
Common stock, outstanding (in shares) 8,000,000 8,000,000
v3.22.4
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, 2019 $ 5,917 $ 5,893 $ 4,787 $ (32,205) $ 33,984 $ (673) $ 24 $ 0 $ 0
Net income 6,411 6,411     6,411        
Activity related to non-controlling interests 73           73    
Redeemable non-controlling interest adjustments (7) (7)     (7)        
Other comprehensive income (loss) (7) (7)       (7)      
Dividends (1,641) (1,641)     (1,641)        
Purchases of treasury stock (4,459) (4,459)   (4,459)          
Share-based payments 201 201 195 6          
Ending 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)    
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
v3.22.4
Consolidated Statement of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Activities      
Net income $ 9,930 $ 8,687 $ 6,411
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization of customer and merchant incentives 1,586 1,371 1,072
Depreciation and amortization 750 726 580
(Gains) losses on equity investments, net 145 (645) (30)
Share-based compensation 295 273 254
Deferred income taxes (651) (69) 73
Other 44 36 14
Changes in operating assets and liabilities:      
Accounts receivable (481) (397) (86)
Income taxes receivable 12 (87) (2)
Settlement assets 48 390 1,288
Prepaid expenses (2,175) (2,087) (1,552)
Accrued litigation and legal settlements 240 (1) (73)
Restricted security deposits held for customers (305) 177 326
Accounts payable 190 100 26
Settlement obligations 201 (568) (1,242)
Accrued expenses 1,188 1,355 (114)
Long-term taxes payable (121) (52) (37)
Net change in other assets and liabilities 299 254 316
Net cash provided by operating activities 11,195 9,463 7,224
Investing Activities      
Purchases of investment securities available-for-sale (267) (389) (220)
Purchases of investments held-to-maturity (239) (294) (198)
Proceeds from sales of investment securities available-for-sale 54 83 361
Proceeds from maturities of investment securities available-for-sale 211 291 140
Proceeds from maturities of investments held-to-maturity 265 296 121
Purchases of property and equipment (442) (407) (339)
Capitalized software (655) (407) (369)
Purchases of equity investments (88) (228) (214)
Proceeds from sales of equity investments 7 186 0
Acquisition of businesses, net of cash acquired (313) (4,436) (989)
Settlement of interest rate derivative contracts 0 0 (175)
Other investing activities (3) 33 3
Net cash used in investing activities (1,470) (5,272) (1,879)
Financing Activities      
Purchases of treasury stock (8,753) (5,904) (4,473)
Dividends paid (1,903) (1,741) (1,605)
Proceeds from debt, net 1,123 2,024 3,959
Payment of debt (724) (650) 0
Acquisition of redeemable non-controlling interests (4) 0 (49)
Acquisition of non-controlling interest 0 (133) 0
Contingent consideration paid 0 (64) 0
Tax withholdings related to share-based payments (141) (133) (150)
Cash proceeds from exercise of stock options 90 61 97
Other financing activities (16) (15) 69
Net cash used in financing activities (10,328) (6,555) (2,152)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (103) (153) 257
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (706) (2,517) 3,450
Cash, cash equivalents, restricted cash and restricted cash equivalents - beginning of period 9,902 12,419 8,969
Cash, cash equivalents, restricted cash and restricted cash equivalents - end of period $ 9,196 $ 9,902 $ 12,419
v3.22.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
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 instead of cash and checks 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 payment capabilities that include automated clearing house (“ACH”) transactions (both batch and real-time account-based payments). Using these capabilities, the Company offers integrated payment products and services and captures new payment flows. The Company’s value-added services include, among others, cyber and intelligence solutions to allow all parties to transact easily and with confidence, as well as other services that provide proprietary insights, drawing on Mastercard’s principled 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 our payments and services solutions. The Company’s franchise model sets the standards and ground-rules for our core global payments network that balance value and risk across all stakeholders and allows for interoperability among them. The Company’s payment solutions are designed to ensure safety and security for the global payments ecosystem.
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, 2022 and 2021, 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. During 2022, the Company updated its disaggregated net revenue presentation by category and geography to reflect the nature of its payment services and to align such information with the way in which management will prospectively view its categories of net revenue. Prior period amounts have been reclassified to conform to the 2022 presentation. The reclassification 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 2022, 2021 and 2020, net 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, 2022 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.
Contract assets include unbilled consideration typically resulting from executed data analytic and consulting services 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, customer relationships 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, as well as technology acquired in business combinations.
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, then 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. 
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 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. Settlement is generally completed on a same-day basis, however, in some circumstances, funds may not settle until subsequent business days creating a short-term settlement exposure.
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.
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 has restricted cash for litigation within a qualified settlement fund related to the settlement agreement for the U.S. merchant class litigation. The funds continue to be restricted for payments until the litigation matter is resolved.
•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 and liabilities measured at fair value on a nonrecurring basis include nonmarketable securities, debt and other financial instruments. 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, which 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.
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, however, in some circumstances, 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.
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
Furniture and fixtures and equipment
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 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.
v3.22.4
Acquisitions Business Combination
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Business Combination Disclosure Acquisitions
In 2022, 2021 and 2020, the Company acquired several businesses for total consideration of $0.3 billion, $4.7 billion and $1.1 billion, respectively, representing both cash and contingent consideration. 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. The residual value allocated to goodwill is primarily attributable to the synergies expected to arise after the acquisition date and a majority of the goodwill is not expected to be deductible for local tax purposes.
On April 1, 2022, Mastercard acquired a 100% equity interest in Dynamic Yield LTD (“Dynamic Yield”) for cash consideration of $325 million. The Company’s preliminary estimate of net assets acquired has been recorded primarily as 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.
On March 5, 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. In relation to this acquisition, 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.
On June 9, 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 residual value allocated to goodwill 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.
Among the businesses acquired in 2020, the largest acquisition relates to Finicity Corporation (“Finicity”), an open-banking provider, headquartered in Salt Lake City, Utah. On November 18, 2020, Mastercard acquired 100% equity interest in Finicity for cash consideration of $809 million. In addition, the Finicity sellers earned additional contingent consideration of $64 million upon meeting 2021 revenue targets in accordance with terms of the purchase agreement. The additional businesses acquired in 2020 were not considered individually material to Mastercard.
The Company is evaluating and finalizing the purchase accounting for Dynamic Yield. In 2022, the Company finalized the purchase accounting for businesses acquired during 2021. The estimated and final fair values of the purchase price allocations in aggregate, as of the acquisition dates, are noted below for the years ended December 31.
202220212020
(in millions)
Assets:
Cash and cash equivalents$11 $253 $6 
Other current assets7 41 14 
Other intangible assets125 2,071 237 
Goodwill200 2,842 844 
Other assets9 15 11 
Total assets352 5,222 1,112 
Liabilities:
Other current liabilities15 112 15 
Deferred income taxes 3 398 23 
Other liabilities9 12 8 
Total liabilities27 522 46 
Net assets acquired$325 $4,700 $1,066 
The following table summarizes the identified intangible assets acquired during the years ended December 31:
202220212020202220212020
Acquisition Date Fair ValueWeighted-Average Useful Life
(in millions)(in years)
Developed technologies$100 $433 $122 7.811.76.3
Customer relationships25 1,614 114 17.019.212.0
Other— 24 1 —7.11.0
Other intangible assets$125 $2,071 $237 9.617.59.0
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.
v3.22.4
Revenue
 12 Months Ended
Dec. 31, 2022
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:
 202220212020
(in millions)
Revenue by category:
Payment network$14,358 $11,943 $9,897 
Value-added services and solutions7,879 6,941 5,404 
Net revenue$22,237 $18,884 $15,301 
Net revenue by geographic region:
North American Markets$7,809 $6,667 $5,473 
International Markets14,428 12,217 9,828 
Net revenue$22,237 $18,884 $15,301 

The Company’s customers are generally billed weekly, however, the frequency 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:
20222021
(in millions)
Receivables from contracts with customers
Accounts receivable
$3,213 $2,829 
Contract assets
Prepaid expenses and other current assets118 134 
Other assets442 487 
Deferred revenue 1
Other current liabilities434 482 
Other liabilities248 180 
1    Revenue recognized from performance obligations satisfied in 2022 was $1.6 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, 2022, the estimated aggregate consideration allocated to unsatisfied performance obligations for these value-added services and solutions is $1.4 billion, which is expected to be recognized through 2027. 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.
v3.22.4
Earnings Per Share
 12 Months Ended
Dec. 31, 2022
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:
 202220212020
 (in millions, except per share data)
Numerator
Net income$9,930 $8,687 $6,411 
Denominator
Basic weighted-average shares outstanding968 988 1,002 
Dilutive stock options and stock units3 4 4 
Diluted weighted-average shares outstanding 1
971 992 1,006 
Earnings per Share
Basic$10.26 $8.79 $6.40 
Diluted$10.22 $8.76 $6.37 
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.
v3.22.4
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
 12 Months Ended
Dec. 31, 2022
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 a reconciliation 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:
20222021
(in millions)
Cash and cash equivalents$7,008 $7,421 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement589 586 
Restricted security deposits held for customers1,568 1,873 
Prepaid expenses and other current assets31 22 
Cash, cash equivalents, restricted cash and restricted cash equivalents$9,196 $9,902 
v3.22.4
Supplemental Cash Flows
 12 Months Ended
Dec. 31, 2022
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:
202220212020
 (in millions)
Cash paid for income taxes, net of refunds$2,506 $1,820 $1,349 
Cash paid for interest414 399 311 
Cash paid for legal settlements114 98 149 
Non-cash investing and financing activities
Dividends declared but not yet paid545 479 439 
Accrued property, equipment and right-of-use assets118 15 154 
Fair value of assets acquired, net of cash acquired341 4,969 1,106 
Fair value of liabilities assumed related to acquisitions27 522 46 
v3.22.4
Investments
 12 Months Ended
Dec. 31, 2022
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 classifies its investments in equity securities of publicly traded and privately held companies 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:
20222021
(in millions)
Available-for-sale securities 1
$272 $314 
Held-to-maturity securities 2
128 159 
Total investments $400 $473 
1See Available-for-Sale Securities section below for further detail.
2The cost of these securities approximates fair value.
Available-for-Sale Securities
The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values at December 31 were as follows:
 20222021
 Amortized Cost Gross Unrealized GainGross Unrealized Loss Fair ValueAmortized Cost Gross Unrealized GainGross Unrealized Loss Fair Value
(in millions)
Municipal securities$— $— $— $— $2 $— $— $2 
Government and agency securities91 — (2)89 98 — — 98 
Corporate securities187 — (4)183 214 — — 214 
Total$278 $— $(6)$272 $314 $— $— $314 
The Company’s corporate and municipal available-for-sale investment securities held at December 31, 2022 and 2021, primarily carried a credit rating of A- or better. Corporate securities are comprised of commercial paper and corporate bonds. Municipal securities are comprised of state tax-exempt bonds and are diversified across states and sectors. 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. 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, 2022 was as follows:
Amortized
Cost		Fair Value
(in millions)
Due within 1 year$158 $157 
Due after 1 year through 5 years120 115 
Total$278 $272 
Investment income on the consolidated statement of operations primarily consists of interest income generated from cash, cash equivalents, time deposits 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 2022, 2021 and 2020 were not material.
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, 2021PurchasesSales
Changes in Fair Value 1
Other 2
Balance at December 31, 2022
(in millions)
Marketable securities $627 $— $— $(213)$(15)$399 
Nonmarketable securities 1,207 88 (7)68 (25)1,331 
Total equity investments $1,834 $88 $(7)$(145)$(40)$1,730 
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:
20222021
(in millions)
Measurement alternative
$1,087 $952 
Equity method
244 255 
Total Nonmarketable securities$1,331 $1,207 
The following table summarizes the total carrying value of the Company’s Measurement alternative investments, including cumulative unrealized gains and losses through December 31:
2022
(in millions)
Initial cost basis
$503 
Cumulative adjustments 1:
Upward adjustments620 
Downward adjustments (including impairment)(36)
Carrying amount, end of period$1,087 
1 Includes 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:
202220212020
(in millions)
Measurement alternative investments:
Upward adjustments$114 $468 $21 
Downward adjustments (including impairment)$(23)$(2)$(3)
Marketable securities:
Unrealized gains (losses), net$(213)$8 $(5)
v3.22.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]  
Fair Value Measurements Fair Value Measurements The Company classifies its fair value measurements of financial instruments into a three-level hierarchy (the “Valuation Hierarchy”). Financial instruments are categorized for fair value measurement purposes as recurring or nonrecurring in nature.
Financial Instruments - Recurring Measurements
The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:
 December 31, 2022December 31, 2021
 Quoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(in millions)
Assets
Investment securities available-for-sale 1:
Municipal securities$— $— $— $— $— $2 $— $2 
Government and agency securities35 54 — 89 35 63 — 98 
Corporate securities— 183 — 183 — 214 — 214 
Derivative instruments 2:
Foreign exchange contracts— 108 — 108 — 8 — 8 
Interest rate contracts — — — — — 6 — 6 
Marketable securities 3:
Equity securities399 — — 399 627 — — 627 
Deferred compensation plan 4:
Deferred compensation assets74 — — 74 89 — — 89 
Liabilities
Derivative instruments 2:
Foreign exchange contracts$— $21 $— $21 $— $15 $— $15 
Interest rate contracts— 105 — 105 — 8 — 8 
Deferred compensation plan 5:
Deferred compensation liabilities73 — — 73 89 — — 89 
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 municipal securities, 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.
Financial Instruments - 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.
Debt
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, 2022, the carrying value and fair value of debt was $14.0 billion and $12.7 billion, respectively. At December 31, 2021, the carrying value and fair value of debt was $13.9 billion and $15.3 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.
v3.22.4
Prepaid Expenses and Other Assets
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Customer and merchant incentives$1,392 $1,326 
Prepaid income taxes34 92 
Other920 853 
Total prepaid expenses and other current assets$2,346 $2,271 
Other assets consisted of the following at December 31:
20222021
(in millions)
Customer and merchant incentives$4,578 $3,798 
Equity investments1,730 1,834 
Income taxes receivable633 645 
Other639 717 
Total other assets$7,580 $6,994 
Customer and merchant incentives represent payments made to customers and merchants under business agreements. Payments made directly related to entering into such an agreement are generally capitalized and amortized over the life of the agreement.
v3.22.4
Property, Equipment and Right-of-Use Assets
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Building, building equipment and land$652 $615 
Equipment1,711 1,456 
Furniture and fixtures96 96 
Leasehold improvements376 371 
Operating lease right-of-use assets1,075 983 
Property, equipment and right-of-use assets3,910 3,521 
Less: Accumulated depreciation and amortization(1,904)(1,614)
Property, equipment and right-of-use assets, net$2,006 $1,907 
Depreciation and amortization expense for the above property, equipment and right-of-use assets was $473 million, $424 million and $400 million for 2022, 2021 and 2020, respectively.
Operating lease ROU assets and operating lease liabilities are recorded on the consolidated balance sheet as follows at December 31:
20222021
(in millions)
Balance sheet location
Property, equipment and right-of-use assets, net$679 $671 
Other current liabilities140 127 
Other liabilities630 645 
Operating lease amortization expense was $137 million, $122 million and $123 million for 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the weighted-average remaining lease term of operating leases was 8.4 years and 8.8 years and the weighted-average discount rate for operating leases was 2.5% and 2.6%, respectively.
The following table summarizes the maturity of the Company’s operating lease liabilities at December 31, 2022 based on lease term:
Operating Leases
(in millions)
2023$136 
2024135 
2025106 
202691 
202773 
Thereafter308 
Total operating lease payments849 
Less: Interest(79)
Present value of operating lease liabilities$770 
v3.22.4
Goodwill
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Beginning balance$7,662 $4,960 
Additions200 2,842 
Foreign currency translation(340)(140)
Ending balance$7,522 $7,662 
The Company performed its annual qualitative assessment of goodwill during the fourth quarter of 2022 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, 2022.
v3.22.4
Other Intangible Assets
 12 Months Ended
Dec. 31, 2022
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:
20222021
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
(in millions)
Finite-lived intangible assets
Capitalized software$3,448 $(1,402)$2,046 $2,929 $(1,288)$1,641 
Customer relationships2,161 (521)1,640 2,272 (429)1,843 
Other54 (37)17 59 (38)21 
Total5,663 (1,960)3,703 5,260 (1,755)3,505 
Indefinite-lived intangible assets
Customer relationships156 — 156 166 — 166 
Total$5,819 $(1,960)$3,859 $5,426 $(1,755)$3,671 
The increase in the gross carrying amount of amortized intangible assets in 2022 was primarily related to software additions and the business acquired in 2022. See Note 2 (Acquisitions) for further details. 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 2022, it was determined that the Company’s indefinite-lived intangible assets were not impaired.
Amortization on the assets above amounted to $414 million, $424 million and $303 million in 2022, 2021 and 2020, respectively. The following table sets forth the estimated future amortization expense on finite-lived intangible assets on the consolidated balance sheet at December 31, 2022 for the years ending December 31:
(in millions)
2023$493 
2024468 
2025450 
2026455 
2027 and thereafter1,837 
Total$3,703 
v3.22.4
Accrued Expenses and Accrued Litigation
 12 Months Ended
Dec. 31, 2022
Accrued Liabilities [Abstract]  
Accrued Expenses and Accrued Litigation Accrued Expenses and Accrued Litigation
Accrued expenses consisted of the following at December 31:
20222021
 (in millions)
Customer and merchant incentives$5,600 $4,730 
Personnel costs1,322 980 
Income and other taxes279 337 
Other600 595 
Total accrued expenses$7,801 $6,642 
Customer and merchant incentives represent amounts to be paid to customers under business agreements. As of December 31, 2022 and 2021, long-term customer and merchant incentives included in other liabilities were $2,293 million and $1,835 million, respectively.
As of December 31, 2022 and 2021, the Company’s provision for litigation was $1,094 million and $840 million, respectively. These amounts are not included in the accrued expenses table above and are separately reported as accrued litigation on the consolidated balance sheet. See Note 21 (Legal and Regulatory Proceedings) for additional information regarding the Company’s accrued litigation.
v3.22.4
Pension, Postretirement and Savings Plans
 12 Months Ended
Dec. 31, 2022
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 $204 million, $175 million and $150 million in 2022, 2021 and 2020, respectively.
Defined Benefit and Other Postretirement Plans
The Company sponsors pension and postretirement plans for certain non-U.S. employees (the “non-U.S. Plans”) that cover various benefits specific to their country of employment. Additionally, Vocalink has a defined benefit pension plan (the “Vocalink Plan”) which was permanently closed to new entrants and future accruals as of July 21, 2013, however, plan participants’ obligations are adjusted for future salary changes. The term “Pension Plans” includes the non-U.S. Plans and the Vocalink Plan.
The Company maintains a postretirement plan providing health coverage and life insurance benefits for substantially all of its U.S. employees hired before July 1, 2007 (the “Postretirement Plan”).
The Company uses a December 31 measurement date for the Pension Plans and its Postretirement Plan (collectively the “Plans”). The Company recognizes the funded status of its Plans, measured as the difference between the fair value of the plan assets and the projected benefit obligation, on the consolidated balance sheet. The following table sets forth the Plans’ funded status, key assumptions and amounts recognized on the Company’s consolidated balance sheet at December 31:
 Pension PlansPostretirement Plan
 2022202120222021
 ($ in millions)
Change in benefit obligation
Benefit obligation at beginning of year$596 $604 $62 $70 
Service cost12 14 1 1 
Interest cost9 9 2 2 
Actuarial (gain) loss(156)(6)(16)(7)
Benefits paid(16)(17)(6)(4)
Transfers in5 4 — — 
Foreign currency translation (58)(12)— — 
Benefit obligation at end of year392 596 43 62 
Change in plan assets
Fair value of plan assets at beginning of year688 617 — — 
Actual gain/(loss) on plan assets(203)63 — — 
Employer contributions25 32 6 4 
Benefits paid(16)(17)(6)(4)
Transfers in5 4 — — 
Foreign currency translation (69)(11)— — 
Fair value of plan assets at end of year430 688 — — 
Funded status at end of year$38 $92 $(43)$(62)
Amounts recognized on the consolidated balance sheet consist of:
Noncurrent assets$44 $105 $— $— 
Other liabilities, short-term— — (3)(3)
Other liabilities, long-term(6)(13)(40)(59)
$38 $92 $(43)$(62)
Accumulated other comprehensive income consists of:
Net actuarial (gain) loss$23 $(38)$(14)$2 
Prior service credit1 1 (1)(2)
Balance at end of year$24 $(37)$(15)$— 
Weighted-average assumptions used to determine end of year benefit obligations
Discount rate
Non-U.S. Plans3.80 %0.90 %**
Vocalink Plan4.80 %1.75 %**
Postretirement Plan**5.50 %2.75 %
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %**
Vocalink Plan2.70 %3.20 %**
Postretirement Plan**3.00 %3.00 %
* Not applicable
At December 31, 2022 and 2021, the Company’s aggregated Pension Plan assets exceeded the benefit obligations. For plans where the benefit obligations exceeded plan assets, the projected benefit obligation was $8 million and $116 million, the accumulated benefit obligation was $6 million and $115 million and plan assets were $2 million and $104 million at December 31, 2022 and 2021, respectively. Information on the Pension Plans were as follows as of December 31:
20222021
(in millions)
Projected benefit obligation$392 $596 
Accumulated benefit obligation388 592 
Fair value of plan assets430 688 
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. For the year ended December 31, 2021, the Company’s projected benefit obligation related to its Pension Plans decreased $8 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
202220212020202220212020
(in millions)
Service cost$12 $14 $13 $1 $1 $1 
Interest cost9 9 9 2 2 2 
Expected return on plan assets(14)(19)(18)— — — 
Amortization of actuarial loss— (1)— — — — 
Amortization of prior service credit— — — (1)(1)(1)
Net periodic benefit cost$7 $3 $4 $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
202220212020202220212020
(in millions)
Current year actuarial loss (gain)$61 $(50)$5 $(16)$(7)$7 
Amortization of prior service credit$— $— $— $1 $2 $1 
Total other comprehensive loss (income)$61 $(50)$5 $(15)$(5)$8 
Total net periodic benefit cost and other comprehensive loss (income)$68 $(47)$9 $(13)$(3)$10 
Assumptions
Weighted-average assumptions used to determine net periodic benefit cost were as follows for the years ended December 31:
Pension PlansPostretirement Plan
202220212020202220212020
Discount rate
Non-U.S. Plans0.90 %0.70 %0.70 %***
Vocalink Plan1.75 %1.55 %1.55 %***
Postretirement Plan***2.75 %2.50 %3.25 %
Expected return on plan assets
Non-U.S. Plans1.60 %1.60 %1.60 %***
Vocalink Plan2.30 %3.20 %3.20 %***
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %1.50 %***
Vocalink Plan3.20 %2.75 %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:
20222021
Healthcare cost trend rate assumed for next year6.50 %6.75 %
Ultimate trend rate 5.00 %5.00 %
Year that the rate reaches the ultimate trend rate67
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 14%, U.K. government securities 41%, fixed income 18%, equity 16% 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, 2022December 31, 2021
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 $246 $— $— $246 
Mutual funds 2
106 128 — 234 185 102 — 287 
Insurance contracts 3
— 114 — 114 — 104 — 104 
Total$149 $242 $— $391 $431 $206 $— $637 
Investments at Net Asset Value (“NAV”) 4
39 51 
Total Plan Assets$430 $688 
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, 2022) through 2032 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)
2023$28 $3 
202420 3 
202519 3 
202618 3 
202725 4 
2028 - 2032114 18 
v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Instruments [Abstract]  
Debt Debt
Debt consisted of the following at December 31:
20222021Effective
Interest Rate
(in millions)
Senior Notes
2022 EUR Notes 1
1.000 %Senior Notes due February 2029$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
1.100 %Senior Notes due December 2022— 793 1.265 %
2.100 %Senior Notes due December 2027854 906 2.189 %
2.500 %Senior Notes due December 2030160 170 2.562 %
2014 USD Notes3.375 %Senior Notes due April 20241,000 1,000 3.484 %
Other Debt
INR Term Loan 3
8.640 %Term Loan due July 2023275 — 9.090 %
14,239 14,019 
Less: Unamortized discount and debt issuance costs(111)(116)
Less: Cumulative hedge accounting fair value adjustments 4
(105)(2)
Total debt outstanding14,023 13,901 
Less: Short-term debt 5
(274)(792)
Long-term debt$13,749 $13,109 
1€750 million euro-denominated debt issued in February 2022.
2€1.650 billion euro-denominated debt issued in December 2015 of which €700 million ($724 million) matured and was paid during 2022.
3INR22.7 billion Indian rupee-denominated loan issued in July 2022.
4In 2021, the Company entered into an interest rate swap which is accounted for as a fair value hedge. See Note 23 (Derivative and Hedging Instruments) for additional information.
5The INR Term Loan due July 2023 is classified as short-term debt on the consolidated balance sheet as of December 31, 2022. The 2015 EUR Notes due December 2022 are classified as short-term debt on the consolidated balance sheet as of December 31, 2021.
Senior Notes
In February 2022, the Company issued €750 million ($800 million as of December 31, 2022) 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.
In March 2020, the Company issued $1 billion principal amount of notes due March 2027, $1.5 billion principal amount of notes due March 2030 and $1.5 billion principal amount of notes due March 2050 (collectively the “2020 USD Notes”). The net proceeds from the issuance of the 2020 USD Notes, after deducting the original issue discount, underwriting discount and offering expenses, were $3.959 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 ($275 million as of December 31, 2022) term loan due July 2023 (the “INR Term Loan”). The net proceeds of the INR Term Loan, after deducting issuance costs, were INR22.6 billion ($284 million as of the date of settlement).
The Company obtained the INR Term Loan to serve as an economic hedge to offset possible changes in the value of INR-denominated monetary assets due to foreign exchange fluctuations. The INR Term Loan is not subject to any financial covenants and it may be repaid in whole at the Company’s option at any time for a specified make-whole amount.
Scheduled annual maturities of the principal portion of long-term debt outstanding at December 31, 2022 are summarized below.
(in millions)
2023$275 
20241,000 
2025750 
2026750 
20271,854 
Thereafter9,610 
Total$14,239 
As of December 31, 2022, the Company has a commercial paper program (the “Commercial Paper Program”) under which the Company is authorized to issue up to $6 billion in unsecured commercial paper notes with maturities of up to 397 days from the date of issuance. On January 27, 2023, the Company increased its Commercial Paper Program from $6 billion to $8 billion. The Commercial Paper Program is available in U.S. dollars.
In conjunction with the Commercial Paper Program, the Company entered into a committed five-year unsecured $8 billion revolving credit facility (the “Credit Facility”) on November 10, 2022. The Credit Facility, which expires on November 10, 2027, amended and restated the Company’s prior $6 billion credit facility which was set to expire on November 12, 2026. 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, 2022 and 2021.
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 from time to time. The Company had no borrowings under the Credit Facility or the Commercial Paper Program at December 31, 2022 and 2021.
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021. 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 2022, 2021 and 2020.
The Company declared total per share dividends on its Class A and Class B Common Stock during the years ended December 31 as summarized below: 
202220212020
(in millions, except per share data)
Dividends declared per share $2.04 $1.81 $1.64 
Total dividends declared$1,968 $1,781 $1,641 
Ownership and Governance Structure
Equity ownership and voting power of the Company’s shares were allocated as follows as of December 31:
20222021
Equity OwnershipGeneral Voting PowerEquity OwnershipGeneral Voting Power
Public Investors (Class A stockholders)88.5 %89.3 %88.4 %89.2 %
Principal or Affiliate Customers (Class B stockholders)0.8 %— %0.8 %— %
Mastercard Foundation (Class A stockholders)10.7 %10.7 %10.8 %10.8 %
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. Under the terms of the donation, Mastercard Foundation became able to resell the donated shares in May 2010 to the extent necessary to meet charitable disbursement requirements pursuant to Canadian tax law. Under such current law, Mastercard Foundation must annually disburse at least 3.5% of its assets not used in its charitable activities and administration in the previous eight quarters (“Disbursement Quota”). However, Mastercard Foundation obtained permission from the Canada Revenue Agency to, until December 31, 2021, meet its cumulative Disbursement Quota obligations over a period of time that, on average, demonstrated compliance with the requirement for such established time period. Currently, Mastercard Foundation may not sell or otherwise transfer its donated shares prior to May 1, 2027, except to the extent necessary to satisfy the Disbursement Quota. Based on that timing, Mastercard Foundation would be permitted to sell all of its remaining shares beginning May 1, 2027, subject to certain conditions.
Common Stock Activity
The following table presents the changes in the Company’s outstanding Class A and Class B common stock for the years ended December 31:
 Outstanding Shares
 Class AClass B
(in millions)
Balance at December 31, 2019996.0 11.2 
Purchases of treasury stock(14.3)— 
Share-based payments2.3 — 
Conversion of Class B to Class A common stock2.9 (2.9)
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 
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:
202220212020
(In millions, except per share data)
Board authorization$9,000 $8,000 $6,000 
Dollar-value of shares repurchased$8,753 $5,904 $4,473 
Shares repurchased25.7 16.5 14.3 
Average price paid per share$340.60 $356.82 $312.68 
As of December 31, 2022, the remaining authorization under the share repurchase programs approved by the Company’s Board of Directors was $12.2 billion.
v3.22.4
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 were as follows:
December 31, 2021Increase / (Decrease)ReclassificationsDecember 31, 2022
(in millions)
Foreign currency translation adjustments 1
$(739)$(675)$— $(1,414)
Translation adjustments on net investment hedges 2
34 275 — 309 
Cash flow hedges
Foreign exchange contracts 3
4 1 (13)(8)
Interest rate contracts(128)— 5 (123)
Defined benefit pension and other postretirement plans 4
21 (31)(1)(11)
Investment securities available-for-sale(1)(5)— (6)
Accumulated other comprehensive income (loss)$(809)$(435)$(9)$(1,253)

December 31, 2020Increase / (Decrease)ReclassificationsDecember 31, 2021
(in millions)
Foreign currency translation adjustments 1
$(352)$(387)$— $(739)
Translation adjustments on net investment hedges 2
(175)209 — 34 
Cash flow hedges
Foreign exchange contracts 3
— 5 (1)4 
Interest rate contracts(133)— 5 (128)
Defined benefit pension and other postretirement plans 4
(20)43 (2)21 
Investment securities available-for-sale— (1)— (1)
Accumulated other comprehensive income (loss)$(680)$(131)$2 $(809)
1During 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. During 2021, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro against the U.S. dollar.
2During 2022 and 2021, 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 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. During 2021, the increase in the accumulated other comprehensive income related to the Plans was driven primarily by a net actuarial gain within the Pension Plans. See Note 14 (Pension, Postretirement and Savings Plans) for additional information.
v3.22.4
Share-Based Payments
 12 Months Ended
Dec. 31, 2022
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:
202220212020
Risk-free rate of return1.6 %0.9 %1.0 %
Expected term (in years)6.006.006.00
Expected volatility24.6 %26.1 %19.3 %
Expected dividend yield0.6 %0.5 %0.6 %
Weighted-average fair value per Option granted$86.92 $91.70 $80.92 
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, 2022:
OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value
(in millions)(in years)(in millions)
Outstanding at January 1, 20225.4 $152 
Granted0.3 $344 
Exercised(0.9)$100 
Forfeited(0.1)$308 
Expired— $363 
Outstanding at December 31, 20224.7 $173 4.9$828 
Exercisable at December 31, 20223.9 $143 4.3$788 
Options vested and expected to vest at December 31, 20224.7 $173 4.9$827 
As of December 31, 2022, there was $19 million of total unrecognized compensation cost related to non-vested Options. The cost is expected to be recognized over a weighted-average period of 1.7 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, 2022:
UnitsWeighted-Average Grant-Date Fair ValueAggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20222.2 $291 
Granted1.0 $340 
Converted(1.2)$258 
Forfeited(0.2)$332 
Outstanding at December 31, 20221.8 $335 $641 
RSUs expected to vest at December 31, 20221.8 $335 $615 
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, 2022, there was $334 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 2.0 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, 2022:
UnitsWeighted-Average
Grant-Date Fair Value		Aggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20220.4 $334 
Granted0.2 $335 
Converted— $— 
Other(0.2)$291 
Outstanding at December 31, 20220.4 $352 $128 
PSUs expected to vest at December 31, 20220.4 $352 $128 
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. During the year ended December 31, 2020, performance targets related to PSU awards granted in 2018 (“2018 PSU Awards”) were adjusted to exclude certain pandemic-related financial impacts deemed outside of the Company’s control. The adjustment during the year ended December 31, 2020 required the Company to apply modification accounting to the 2018 PSU Awards which had an immaterial impact on compensation expense. As of December 31, 2022, there was $29 million of total unrecognized compensation cost related to non-vested PSUs. The cost is expected to be recognized over a weighted-average period of 1.7 years.
Additional Information
The following table includes additional share-based payment information for each of the years ended December 31:
202220212020
(in millions, except weighted-average fair value)
Share-based compensation expense: Options, RSUs and PSUs$295 $273 $254 
Income tax benefit recognized for equity awards61 57 53 
Income tax benefit realized related to Options exercised49 36 68 
Options:
Total intrinsic value of Options exercised231 169 317 
RSUs:
Weighted-average grant-date fair value of awards granted 340 358 288 
Total intrinsic value of RSUs converted into shares of Class A common stock420 360 330 
PSUs:
Weighted-average grant-date fair value of awards granted335 385 291 
Total intrinsic value of PSUs converted into shares of Class A common stock— 32 92 
v3.22.4
Commitments
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments Commitments
At December 31, 2022, 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 $12 million of these future payments as of December 31, 2022.
(in millions)
2023$428 
2024317 
2025222 
2026106 
202785 
Thereafter47 
Total$1,205 
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
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 are as follows:
202220212020
(in millions)
United States$4,228 $4,261 $3,304 
Foreign7,504 6,046 4,456 
Income before income taxes$11,732 $10,307 $7,760 
The total income tax provision for the years ended December 31 is comprised of the following components:
202220212020
(in millions)
Current
Federal$1,024 $663 $439 
State and local133 51 56 
Foreign1,296 976 781 
2,453 1,690 1,276 
Deferred
Federal(661)(31)106 
State and local(40)(4)9 
Foreign50 (35)(42)
(651)(70)73 
Income tax expense$1,802 $1,620 $1,349 
Effective Income Tax Rate
A reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate for the years ended December 31, is as follows:
202220212020
AmountPercentAmountPercentAmountPercent
($ in millions)
Income before income taxes$11,732 $10,307 $7,760 
Federal statutory tax2,464 21.0 %2,164 21.0 %1,630 21.0 %
State tax effect, net of federal benefit72 0.6 %60 0.6 %57 0.7 %
Foreign tax effect(347)(3.0)%(283)(2.7)%(193)(2.5)%
Valuation allowance - U.S. foreign tax credit(333)(2.8)%— — %— — %
U.S. tax expense on foreign operations111 0.9 %63 0.6 %47 0.6 %
Foreign-derived intangible income deduction(129)(1.1)%(69)(0.7)%(46)(0.6)%
U.S. tax benefits 1
— — %(132)(1.3)%— — %
Windfall benefit(68)(0.6)%(67)(0.7)%(119)(1.5)%
Other, net32 0.3 %(116)(1.1)%(27)(0.3)%
Income tax expense$1,802 15.4 %$1,620 15.7 %$1,349 17.4 %
Note: Table may not sum due to rounding.
The effective income tax rates for the years ended December 31, 2022, 2021 and 2020 were 15.4%, 15.7% and 17.4%, respectively. 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 the current year. 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 limit 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
The effective income tax rate for 2021 was lower than the effective income tax rate for 2020, primarily due to the recognition of U.S. tax benefits (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. In addition, a more favorable geographic mix of earnings in 2021 contributed to the Company’s lower effective tax rate. These benefits were partially offset by a lower discrete tax benefit related to share-based payments in 2021.
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 2022, 2021 and 2020, the impact of the incentive grant received from the Ministry of Finance resulted in a reduction of MAPPL’s income tax liability of $454 million, or $0.47 per diluted share, $300 million, or $0.30 per diluted share, and $260 million, or $0.26 per diluted share, respectively.
Indefinite Reinvestment
As of December 31, 2022 the Company does not accrue taxes on $1.6 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 are as follows:
20222021
(in millions)
Deferred Tax Assets
Accrued liabilities$697 $497 
Compensation and benefits316 260 
State taxes and other credits43 40 
Net operating losses156 136 
U.S. foreign tax credits274 333 
Property, plant and equipment52 — 
Intangible assets186 206 
Other items162 161 
Less: Valuation allowance(114)(415)
Total Deferred Tax Assets1,772 1,218 
Deferred Tax Liabilities
Prepaid expenses and other accruals186 114 
Gains on equity investments132 153 
Goodwill and intangible assets561 571 
Property, plant and equipment— 174 
Other items135 115 
Total Deferred Tax Liabilities1,014 1,127 
Net Deferred Tax Assets $758 $91 
The valuation allowance balance at December 31, 2022 primarily related to the Company’s ability to recognize future tax benefits associated with certain foreign losses. The recognition of the foreign losses is dependent on the timing and character of future taxable income in the applicable jurisdictions. The valuation allowance balance at December 31, 2021 primarily related to the Company’s ability to recognize future tax benefits associated with the carry forward of U.S. foreign tax credits and certain foreign losses. The valuation allowance associated with the carryforward of U.S. foreign tax credits was released in 2022 as a result of the publication of final U.S. tax regulations. The regulations limit the Company’s ability to generate foreign tax credits for certain taxes paid beginning in 2022, but have the effect of allowing the Company to utilize its foreign tax credit carryforwards.
As of December 31, 2022, the Company had foreign tax credit and tax effected net operating loss carryforwards of $274 million and $156 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:
202220212020
(in millions)
Beginning balance$360 $388 $203 
Additions:
Current year tax positions22 17 19 
Prior year tax positions1
65 4 192 
Reductions:
Prior year tax positions1
(14)(31)(10)
Settlements with tax authorities(13)(15)(12)
Expired statute of limitations(6)(3)(4)
Ending balance$414 $360 $388 
1Includes immaterial translational impact of currency.
As of December 31, 2022, the amount of unrecognized tax benefit was $414 million. This amount, if recognized, would reduce the effective income tax rate by $362 million. The Company’s unrecognized tax benefits increased in 2020 primarily due to a prior year tax issue resulting from a refund claim filed in 2020.
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 2011.
v3.22.4
Legal and Regulatory Proceedings
 12 Months Ended
Dec. 31, 2022
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, except as discussed below, it is not possible to determine the probability of loss or estimate damages, and therefore, Mastercard has not established reserves for any of these proceedings.  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 existence in many such proceedings of 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, financial position and cash flows.
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 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 merchant 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 merchant class litigation (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, and objectors to the settlement appealed that decision to the U.S. Court of Appeals for the Second Circuit. In June 2016, the court of appeals vacated the class action certification, reversed the settlement approval and sent the case back to the district court for further proceedings. The court of appeals’ ruling was based primarily on whether the merchants were adequately represented by counsel in the settlement. As a result of the appellate court ruling, 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. The time period during which Damages Class members were permitted to opt out of the class settlement agreement ended in July 2019 with merchants representing slightly more than 25% of the Damages Class interchange volume choosing to opt out of the settlement. The district court granted final approval of the settlement in December 2019. The district court’s settlement approval order has been appealed and oral argument on the appeal was heard in March 2022. 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. The Damages Class settlement agreement does not relate to the Rules Relief Class claims. Separate 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.
As of December 31, 2022 and 2021, Mastercard had accrued a liability of $894 million and $783 million, respectively, as a reserve for both the Damages Class litigation and the opt-out merchant cases. During 2022, Mastercard recorded an additional accrual of $133 million as a result of a change in estimate with respect to the claims of merchants who opted out of the Damages Class litigation. As of December 31, 2022 and 2021, Mastercard had $589 million and $586 million, respectively, in a qualified cash settlement fund related to the Damages Class litigation and classified as restricted cash on its consolidated balance sheet. The reserve as of December 31, 2022 for both the Damages Class litigation and the opt-out merchants represents Mastercard’s best estimate of its
probable liabilities in these matters. The portion of the accrued liability relating to both the opt-out merchants and the Damages Class litigation settlement 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 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 and 2020, Mastercard incurred charges of $94 million and $28 million, respectively, to reflect both the litigation settlements and estimated attorneys’ fees with a number of U.K. and Pan-European merchants. Following these settlements, an amount in excess of £0.6 billion (approximately $0.7 billion as of December 31, 2022) of unresolved damages claims remain.
In January 2017, Mastercard received a liability judgment in its favor on all significant matters in a separate action brought by ten of the U.K. Merchant claimants. Three of the U.K. Merchant claimants appealed the judgment, and these appeals were combined with Mastercard’s appeal of a 2016 judgment in favor of one U.K. merchant. In July 2018, the U.K. appellate court heard the appeals of the four merchant claimants and ruled against both Mastercard and Visa on two of the three legal issues being considered. The parties appealed the rulings to the U.K. Supreme Court. In June 2020, the U.K. Supreme Court ruled against Mastercard and Visa with respect to one of the liability issues being considered by the Court related to U.K domestic interchange fees. Additionally, the U.K. Supreme Court set out the legal standard that should be applied by lower trial courts with respect to determining whether interchange was exemptible under applicable law, and provided guidance to lower courts with regard to the legal standard that should be applied in assessing merchants’ damages claims. The U.K. Supreme Court sent three of the merchant cases back to the trial court solely for the purpose of determining damages issues. Mastercard subsequently reached settlement agreements with all four merchants.
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. In one of the actions involving multiple merchant plaintiff claims, the U.K. trial court in November 2021 denied the plaintiffs’ motion for summary judgment on certain liability issues. In October 2022, the appellate court rejected the plaintiffs’ appeal. In a separate matter filed in Belgium involving multiple merchants from the Czech Republic and Slovakia, the trial court held a hearing in June 2022 on liability issues, and the decision is pending.
During the third quarter of 2022, 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 and inter-regional consumer card transactions in both the U.K. and the European Union. The plaintiffs have claimed damages against Mastercard of approximately £0.5 billion (approximately $0.6 billion as of December 31, 2022). The court has scheduled a hearing on the plaintiffs’ collective action application for April 2023.
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 £14 billion (approximately $17 billion as of December 31, 2022). 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. In January 2023, the trial court held a hearing on Mastercard’s request to narrow the number of years of damages sought by the plaintiffs on statute of limitations grounds. The trial court has scheduled an additional hearing for July 2023 regarding Mastercard’s request to preclude the plaintiffs from seeking damages with respect to U.K. domestic interchange fees.
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, 2022) 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.
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.
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. Visa and Mastercard subsequently appealed the certification decision to the appellate court and oral argument on the appeal was heard in September 2022.
Europe. Mastercard has been 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 seeks damages, costs and injunctive relief to prevent the defendants from enforcing these rules. A trial has been scheduled for 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. merchant class interchange litigation 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. Briefing on summary judgment is scheduled to conclude in July 2023.
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.
U.S. Federal Trade Commission Investigation
In June 2020, the U.S. Federal Trade Commission’s Bureau of Competition (“FTC”) informed Mastercard that it has 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. The consent agreement is currently undergoing a comment period, after which the FTC will decide whether to make the proposed consent agreement final.
U.K. Prepaid Cards Matter
In 2019, Mastercard was informed by the U.K. Payment Systems Regulator (“PSR”) that Mastercard was a target of its investigation into alleged anti-competitive conduct by public sector prepaid card program managers in the U.K. This matter focused exclusively on historic behavior. In March 2021, the PSR announced the resolution and settlement of this investigation. As part of the resolution, Mastercard agreed to pay a maximum fine of £32 million. This matter has no prospective impact on Mastercard’s on-going business. In connection with this matter, in the fourth quarter of 2020, Mastercard recorded a litigation charge of $45 million. Mastercard paid the agreed fine in March 2022.
v3.22.4
Settlement and Other Risk Management
 12 Months Ended
Dec. 31, 2022
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 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. Settlement is generally completed on a same-day basis, however, in some circumstances, funds may not settle until subsequent business days creating a short-term settlement exposure.
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 are not in compliance with the Company’s risk standards to enter into risk mitigation arrangements, including cash collateral and/or other 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:
20222021
(in millions)
Gross settlement exposure$64,885 $59,571 
Risk mitigation arrangements applied to settlement exposure(10,697)(7,710)
Net settlement exposure
$54,188 $51,861 
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 $342 million and $361 million at December 31, 2022 and 2021, respectively, of which the Company has risk mitigation arrangements for $273 million and $287 million at December 31, 2022 and 2021, 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.
v3.22.4
Derivative and Hedging Instruments
 12 Months Ended
Dec. 31, 2022
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.
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 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. In 2019, the Company entered into treasury rate locks which are accounted for as cash flow hedges. In the first quarter of 2020, in connection with the issuance of the 2020 USD Notes, these contracts were settled at a loss of $136 million, after tax, in accumulated other comprehensive income (loss). As of December 31, 2022, a cumulative loss of $123 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 or 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.
During the fourth quarter of 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, 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 designated as an excluded component and 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 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. During 2022, 2021 and 2020 the Company recorded a pre-tax net foreign currency gain of $176 million, gain of $155 million and loss of $177 million, respectively, in other comprehensive income (loss).
As of December 31, 2022 and 2021, the Company had net foreign currency gains of $309 million and $34 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, 2022December 31, 2021
 NotionalDerivative AssetsDerivative LiabilitiesNotionalDerivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments
Foreign exchange contracts in a cash flow hedge 1
$642 $4 $15 $206 $7 $3 
Interest rate contracts in a fair value hedge 2
1,000 — 105 1,000 6 8 
Foreign exchange contracts in a net investment hedge 1
1,814 103 4 1,473 — 4 
Derivatives not designated as hedging instruments
Foreign exchange contracts 1
521 1 2 530 1 8 
Total derivative assets/liabilities$3,977 $108 $126 $3,209 $14 $23 
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.
2As of December 31, 2022, interest rate derivative liabilities are included within other current liabilities and other liabilities on the consolidated balance sheet. As of December 31, 2021, interest rate derivative assets and liabilities are included within prepaid expenses and other current assets and other liabilities, respectively, 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,
202220212020202220212020
(in millions)(in millions)
Derivative financial instruments in a cash flow hedge relationship:
Foreign exchange contracts$1 $6 $— Net revenue$16 $1 $— 
Interest rate contracts$— $— $(189)Interest expense$(6)$(6)$(4)
Derivative financial instruments in a net investment hedge relationship:
Foreign exchange contracts $177 $114 $— 
The Company estimates that $17 million, pre-tax, of the net deferred loss on cash flow hedges recorded in accumulated other comprehensive income (loss) at December 31, 2022 will be reclassified into the consolidated statement of operations within the next 12 months. 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:202220212020
 (in millions)
Foreign exchange derivative contracts
General and administrative$21 $(10)$40 
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. 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.
v3.22.4
Segment Reporting
 12 Months Ended
Dec. 31, 2022
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 33% of net revenue in 2022, 32% in 2021 and 33% in 2020. 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 2022, 2021 or 2020.
The following table reflects the geographical location of the Company’s property, equipment and right-of-use assets, net, as of December 31:
202220212020
(in millions)
United States$1,123 $1,117 $1,185 
Other countries883 790 717 
Total$2,006 $1,907 $1,902 
v3.22.4
Summary of Significant Accounting Policies (Policy)
 12 Months Ended
Dec. 31, 2022
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 instead of cash and checks 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 payment capabilities that include automated clearing house (“ACH”) transactions (both batch and real-time account-based payments). Using these capabilities, the Company offers integrated payment products and services and captures new payment flows. The Company’s value-added services include, among others, cyber and intelligence solutions to allow all parties to transact easily and with confidence, as well as other services that provide proprietary insights, drawing on Mastercard’s principled 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 our payments and services solutions. The Company’s franchise model sets the standards and ground-rules for our core global payments network that balance value and risk across all stakeholders and allows for interoperability among them. The Company’s payment solutions are designed to ensure safety and security for the global payments ecosystem.
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, 2022 and 2021, 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. During 2022, the Company updated its disaggregated net revenue presentation by category and geography to reflect the nature of its payment services and to align such information with the way in which management will prospectively view its categories of net revenue. Prior period amounts have been reclassified to conform to the 2022 presentation. The reclassification 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 2022, 2021 and 2020, net 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, 2022 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.
Contract assets include unbilled consideration typically resulting from executed data analytic and consulting services 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, customer relationships 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, as well as technology acquired in business combinations.
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, then 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. 
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 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. Settlement is generally completed on a same-day basis, however, in some circumstances, funds may not settle until subsequent business days creating a short-term settlement exposure.
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.
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 has restricted cash for litigation within a qualified settlement fund related to the settlement agreement for the U.S. merchant class litigation. The funds continue to be restricted for payments until the litigation matter is resolved.
•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 and liabilities measured at fair value on a nonrecurring basis include nonmarketable securities, debt and other financial instruments. 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, which 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.
Settlement Assets/Obligations 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, however, in some circumstances, 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.
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
Furniture and fixtures and equipment
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.
v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Useful lives of Company's assets
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Furniture and fixtures and equipment
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
Property, equipment and right-of-use assets consisted of the following at December 31:
20222021
(in millions)
Building, building equipment and land$652 $615 
Equipment1,711 1,456 
Furniture and fixtures96 96 
Leasehold improvements376 371 
Operating lease right-of-use assets1,075 983 
Property, equipment and right-of-use assets3,910 3,521 
Less: Accumulated depreciation and amortization(1,904)(1,614)
Property, equipment and right-of-use assets, net$2,006 $1,907 
v3.22.4
Acquisitions Business Combination (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The estimated and final fair values of the purchase price allocations in aggregate, as of the acquisition dates, are noted below for the years ended December 31.
202220212020
(in millions)
Assets:
Cash and cash equivalents$11 $253 $6 
Other current assets7 41 14 
Other intangible assets125 2,071 237 
Goodwill200 2,842 844 
Other assets9 15 11 
Total assets352 5,222 1,112 
Liabilities:
Other current liabilities15 112 15 
Deferred income taxes 3 398 23 
Other liabilities9 12 8 
Total liabilities27 522 46 
Net assets acquired$325 $4,700 $1,066 
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:
202220212020202220212020
Acquisition Date Fair ValueWeighted-Average Useful Life
(in millions)(in years)
Developed technologies$100 $433 $122 7.811.76.3
Customer relationships25 1,614 114 17.019.212.0
Other— 24 1 —7.11.0
Other intangible assets$125 $2,071 $237 9.617.59.0
v3.22.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2022
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:
 202220212020
(in millions)
Revenue by category:
Payment network$14,358 $11,943 $9,897 
Value-added services and solutions7,879 6,941 5,404 
Net revenue$22,237 $18,884 $15,301 
Net revenue by geographic region:
North American Markets$7,809 $6,667 $5,473 
International Markets14,428 12,217 9,828 
Net revenue$22,237 $18,884 $15,301 
The following table sets forth the location of the amounts recognized on the consolidated balance sheet from contracts with customers at December 31:
20222021
(in millions)
Receivables from contracts with customers
Accounts receivable
$3,213 $2,829 
Contract assets
Prepaid expenses and other current assets118 134 
Other assets442 487 
Deferred revenue 1
Other current liabilities434 482 
Other liabilities248 180 
1    Revenue recognized from performance obligations satisfied in 2022 was $1.6 billion.
v3.22.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
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:
 202220212020
 (in millions, except per share data)
Numerator
Net income$9,930 $8,687 $6,411 
Denominator
Basic weighted-average shares outstanding968 988 1,002 
Dilutive stock options and stock units3 4 4 
Diluted weighted-average shares outstanding 1
971 992 1,006 
Earnings per Share
Basic$10.26 $8.79 $6.40 
Diluted$10.22 $8.76 $6.37 
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.
v3.22.4
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Tables)
 12 Months Ended
Dec. 31, 2022
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
The following table provides a reconciliation 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:
20222021
(in millions)
Cash and cash equivalents$7,008 $7,421 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement589 586 
Restricted security deposits held for customers1,568 1,873 
Prepaid expenses and other current assets31 22 
Cash, cash equivalents, restricted cash and restricted cash equivalents$9,196 $9,902 
Restrictions on Cash and Cash Equivalents
The following table provides a reconciliation 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:
20222021
(in millions)
Cash and cash equivalents$7,008 $7,421 
Restricted cash and restricted cash equivalents
Restricted cash for litigation settlement589 586 
Restricted security deposits held for customers1,568 1,873 
Prepaid expenses and other current assets31 22 
Cash, cash equivalents, restricted cash and restricted cash equivalents$9,196 $9,902 
v3.22.4
Supplemental Cash Flows (Tables)
 12 Months Ended
Dec. 31, 2022
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:
202220212020
 (in millions)
Cash paid for income taxes, net of refunds$2,506 $1,820 $1,349 
Cash paid for interest414 399 311 
Cash paid for legal settlements114 98 149 
Non-cash investing and financing activities
Dividends declared but not yet paid545 479 439 
Accrued property, equipment and right-of-use assets118 15 154 
Fair value of assets acquired, net of cash acquired341 4,969 1,106 
Fair value of liabilities assumed related to acquisitions27 522 46 
v3.22.4
Investments (Tables)
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Available-for-sale securities 1
$272 $314 
Held-to-maturity securities 2
128 159 
Total investments $400 $473 
1See Available-for-Sale Securities section below for further detail.
2The cost of these securities approximates fair value.
Available-for-sale investment securities
The major classes of the Company’s available-for-sale investment securities and their respective amortized cost basis and fair values at December 31 were as follows:
 20222021
 Amortized Cost Gross Unrealized GainGross Unrealized Loss Fair ValueAmortized Cost Gross Unrealized GainGross Unrealized Loss Fair Value
(in millions)
Municipal securities$— $— $— $— $2 $— $— $2 
Government and agency securities91 — (2)89 98 — — 98 
Corporate securities187 — (4)183 214 — — 214 
Total$278 $— $(6)$272 $314 $— $— $314 
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, 2022 was as follows:
Amortized
Cost		Fair Value
(in millions)
Due within 1 year$158 $157 
Due after 1 year through 5 years120 115 
Total$278 $272 
Equity Method Investments
The following table is a summary of the activity related to the Company’s equity investments:
 Balance at December 31, 2021PurchasesSales
Changes in Fair Value 1
Other 2
Balance at December 31, 2022
(in millions)
Marketable securities $627 $— $— $(213)$(15)$399 
Nonmarketable securities 1,207 88 (7)68 (25)1,331 
Total equity investments $1,834 $88 $(7)$(145)$(40)$1,730 
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:
20222021
(in millions)
Measurement alternative
$1,087 $952 
Equity method
244 255 
Total Nonmarketable securities$1,331 $1,207 
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:
2022
(in millions)
Initial cost basis
$503 
Cumulative adjustments 1:
Upward adjustments620 
Downward adjustments (including impairment)(36)
Carrying amount, end of period$1,087 
1 Includes 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:
202220212020
(in millions)
Measurement alternative investments:
Upward adjustments$114 $468 $21 
Downward adjustments (including impairment)$(23)$(2)$(3)
Marketable securities:
Unrealized gains (losses), net$(213)$8 $(5)
v3.22.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]  
Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis
The distribution of the Company’s financial instruments measured at fair value on a recurring basis within the Valuation Hierarchy were as follows:
 December 31, 2022December 31, 2021
 Quoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		TotalQuoted Prices
in Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(in millions)
Assets
Investment securities available-for-sale 1:
Municipal securities$— $— $— $— $— $2 $— $2 
Government and agency securities35 54 — 89 35 63 — 98 
Corporate securities— 183 — 183 — 214 — 214 
Derivative instruments 2:
Foreign exchange contracts— 108 — 108 — 8 — 8 
Interest rate contracts — — — — — 6 — 6 
Marketable securities 3:
Equity securities399 — — 399 627 — — 627 
Deferred compensation plan 4:
Deferred compensation assets74 — — 74 89 — — 89 
Liabilities
Derivative instruments 2:
Foreign exchange contracts$— $21 $— $21 $— $15 $— $15 
Interest rate contracts— 105 — 105 — 8 — 8 
Deferred compensation plan 5:
Deferred compensation liabilities73 — — 73 89 — — 89 
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 municipal securities, 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.
v3.22.4
Prepaid Expenses and Other Assets (Tables)
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Customer and merchant incentives$1,392 $1,326 
Prepaid income taxes34 92 
Other920 853 
Total prepaid expenses and other current assets$2,346 $2,271 
Schedule of Other Assets, Noncurrent
Other assets consisted of the following at December 31:
20222021
(in millions)
Customer and merchant incentives$4,578 $3,798 
Equity investments1,730 1,834 
Income taxes receivable633 645 
Other639 717 
Total other assets$7,580 $6,994 
v3.22.4
Property, Equipment and Right-of-Use Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Equipment and Right-of-Use Assets
The useful lives of the Company’s assets are as follows:
Asset CategoryEstimated Useful Life
Buildings30 years
Building equipment
10 - 15 years
Furniture and fixtures and equipment
3 - 5 years
Leasehold improvementsShorter of life of improvement or lease term
Right-of-use assetsShorter of life of the asset or lease term
Property, equipment and right-of-use assets consisted of the following at December 31:
20222021
(in millions)
Building, building equipment and land$652 $615 
Equipment1,711 1,456 
Furniture and fixtures96 96 
Leasehold improvements376 371 
Operating lease right-of-use assets1,075 983 
Property, equipment and right-of-use assets3,910 3,521 
Less: Accumulated depreciation and amortization(1,904)(1,614)
Property, equipment and right-of-use assets, net$2,006 $1,907 
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:
20222021
(in millions)
Balance sheet location
Property, equipment and right-of-use assets, net$679 $671 
Other current liabilities140 127 
Other liabilities630 645 
Maturity of Operating Lease Liabilities
The following table summarizes the maturity of the Company’s operating lease liabilities at December 31, 2022 based on lease term:
Operating Leases
(in millions)
2023$136 
2024135 
2025106 
202691 
202773 
Thereafter308 
Total operating lease payments849 
Less: Interest(79)
Present value of operating lease liabilities$770 
v3.22.4
Goodwill (Tables)
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Beginning balance$7,662 $4,960 
Additions200 2,842 
Foreign currency translation(340)(140)
Ending balance$7,522 $7,662 
v3.22.4
Other Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Schedule of Intangible Assets
The following table sets forth net intangible assets, other than goodwill, at December 31:
20222021
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
(in millions)
Finite-lived intangible assets
Capitalized software$3,448 $(1,402)$2,046 $2,929 $(1,288)$1,641 
Customer relationships2,161 (521)1,640 2,272 (429)1,843 
Other54 (37)17 59 (38)21 
Total5,663 (1,960)3,703 5,260 (1,755)3,505 
Indefinite-lived intangible assets
Customer relationships156 — 156 166 — 166 
Total$5,819 $(1,960)$3,859 $5,426 $(1,755)$3,671 
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, 2022 for the years ending December 31:
(in millions)
2023$493 
2024468 
2025450 
2026455 
2027 and thereafter1,837 
Total$3,703 
v3.22.4
Accrued Expenses and Accrued Litigation (Tables)
 12 Months Ended
Dec. 31, 2022
Accrued Liabilities [Abstract]  
Accrued Expenses
Accrued expenses consisted of the following at December 31:
20222021
 (in millions)
Customer and merchant incentives$5,600 $4,730 
Personnel costs1,322 980 
Income and other taxes279 337 
Other600 595 
Total accrued expenses$7,801 $6,642 
v3.22.4
Pension, Postretirement and Savings Plans Pension, Postretirement and Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations The following table sets forth the Plans’ funded status, key assumptions and amounts recognized on the Company’s consolidated balance sheet at December 31:
 Pension PlansPostretirement Plan
 2022202120222021
 ($ in millions)
Change in benefit obligation
Benefit obligation at beginning of year$596 $604 $62 $70 
Service cost12 14 1 1 
Interest cost9 9 2 2 
Actuarial (gain) loss(156)(6)(16)(7)
Benefits paid(16)(17)(6)(4)
Transfers in5 4 — — 
Foreign currency translation (58)(12)— — 
Benefit obligation at end of year392 596 43 62 
Change in plan assets
Fair value of plan assets at beginning of year688 617 — — 
Actual gain/(loss) on plan assets(203)63 — — 
Employer contributions25 32 6 4 
Benefits paid(16)(17)(6)(4)
Transfers in5 4 — — 
Foreign currency translation (69)(11)— — 
Fair value of plan assets at end of year430 688 — — 
Funded status at end of year$38 $92 $(43)$(62)
Amounts recognized on the consolidated balance sheet consist of:
Noncurrent assets$44 $105 $— $— 
Other liabilities, short-term— — (3)(3)
Other liabilities, long-term(6)(13)(40)(59)
$38 $92 $(43)$(62)
Accumulated other comprehensive income consists of:
Net actuarial (gain) loss$23 $(38)$(14)$2 
Prior service credit1 1 (1)(2)
Balance at end of year$24 $(37)$(15)$— 
Weighted-average assumptions used to determine end of year benefit obligations
Discount rate
Non-U.S. Plans3.80 %0.90 %**
Vocalink Plan4.80 %1.75 %**
Postretirement Plan**5.50 %2.75 %
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %**
Vocalink Plan2.70 %3.20 %**
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:
20222021
(in millions)
Projected benefit obligation$392 $596 
Accumulated benefit obligation388 592 
Fair value of plan assets430 688 
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
202220212020202220212020
(in millions)
Service cost$12 $14 $13 $1 $1 $1 
Interest cost9 9 9 2 2 2 
Expected return on plan assets(14)(19)(18)— — — 
Amortization of actuarial loss— (1)— — — — 
Amortization of prior service credit— — — (1)(1)(1)
Net periodic benefit cost$7 $3 $4 $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
202220212020202220212020
(in millions)
Current year actuarial loss (gain)$61 $(50)$5 $(16)$(7)$7 
Amortization of prior service credit$— $— $— $1 $2 $1 
Total other comprehensive loss (income)$61 $(50)$5 $(15)$(5)$8 
Total net periodic benefit cost and other comprehensive loss (income)$68 $(47)$9 $(13)$(3)$10 
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
202220212020202220212020
Discount rate
Non-U.S. Plans0.90 %0.70 %0.70 %***
Vocalink Plan1.75 %1.55 %1.55 %***
Postretirement Plan***2.75 %2.50 %3.25 %
Expected return on plan assets
Non-U.S. Plans1.60 %1.60 %1.60 %***
Vocalink Plan2.30 %3.20 %3.20 %***
Rate of compensation increase
Non-U.S. Plans1.50 %1.50 %1.50 %***
Vocalink Plan3.20 %2.75 %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:
20222021
Healthcare cost trend rate assumed for next year6.50 %6.75 %
Ultimate trend rate 5.00 %5.00 %
Year that the rate reaches the ultimate trend rate67
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, 2022December 31, 2021
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 $246 $— $— $246 
Mutual funds 2
106 128 — 234 185 102 — 287 
Insurance contracts 3
— 114 — 114 — 104 — 104 
Total$149 $242 $— $391 $431 $206 $— $637 
Investments at Net Asset Value (“NAV”) 4
39 51 
Total Plan Assets$430 $688 
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, 2022) through 2032 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)
2023$28 $3 
202420 3 
202519 3 
202618 3 
202725 4 
2028 - 2032114 18 
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Instruments [Abstract]  
Schedule of Debt
Debt consisted of the following at December 31:
20222021Effective
Interest Rate
(in millions)
Senior Notes
2022 EUR Notes 1
1.000 %Senior Notes due February 2029$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
1.100 %Senior Notes due December 2022— 793 1.265 %
2.100 %Senior Notes due December 2027854 906 2.189 %
2.500 %Senior Notes due December 2030160 170 2.562 %
2014 USD Notes3.375 %Senior Notes due April 20241,000 1,000 3.484 %
Other Debt
INR Term Loan 3
8.640 %Term Loan due July 2023275 — 9.090 %
14,239 14,019 
Less: Unamortized discount and debt issuance costs(111)(116)
Less: Cumulative hedge accounting fair value adjustments 4
(105)(2)
Total debt outstanding14,023 13,901 
Less: Short-term debt 5
(274)(792)
Long-term debt$13,749 $13,109 
1€750 million euro-denominated debt issued in February 2022.
2€1.650 billion euro-denominated debt issued in December 2015 of which €700 million ($724 million) matured and was paid during 2022.
3INR22.7 billion Indian rupee-denominated loan issued in July 2022.
4In 2021, the Company entered into an interest rate swap which is accounted for as a fair value hedge. See Note 23 (Derivative and Hedging Instruments) for additional information.
5The INR Term Loan due July 2023 is classified as short-term debt on the consolidated balance sheet as of December 31, 2022. The 2015 EUR Notes due December 2022 are classified as short-term debt on the consolidated balance sheet as of December 31, 2021.
Schedule of Maturities of Long-term Debt
Scheduled annual maturities of the principal portion of long-term debt outstanding at December 31, 2022 are summarized below.
(in millions)
2023$275 
20241,000 
2025750 
2026750 
20271,854 
Thereafter9,610 
Total$14,239 
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021. Dividend and voting rights are to be determined by the Board of Directors of the Company upon issuance.
Dividends Declared
The Company declared total per share dividends on its Class A and Class B Common Stock during the years ended December 31 as summarized below: 
202220212020
(in millions, except per share data)
Dividends declared per share $2.04 $1.81 $1.64 
Total dividends declared$1,968 $1,781 $1,641 
Schedule of Ownership and Governance Structure
Equity ownership and voting power of the Company’s shares were allocated as follows as of December 31:
20222021
Equity OwnershipGeneral Voting PowerEquity OwnershipGeneral Voting Power
Public Investors (Class A stockholders)88.5 %89.3 %88.4 %89.2 %
Principal or Affiliate Customers (Class B stockholders)0.8 %— %0.8 %— %
Mastercard Foundation (Class A stockholders)10.7 %10.7 %10.8 %10.8 %
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 for the years ended December 31:
 Outstanding Shares
 Class AClass B
(in millions)
Balance at December 31, 2019996.0 11.2 
Purchases of treasury stock(14.3)— 
Share-based payments2.3 — 
Conversion of Class B to Class A common stock2.9 (2.9)
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 
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:
202220212020
(In millions, except per share data)
Board authorization$9,000 $8,000 $6,000 
Dollar-value of shares repurchased$8,753 $5,904 $4,473 
Shares repurchased25.7 16.5 14.3 
Average price paid per share$340.60 $356.82 $312.68 
v3.22.4
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021 were as follows:
December 31, 2021Increase / (Decrease)ReclassificationsDecember 31, 2022
(in millions)
Foreign currency translation adjustments 1
$(739)$(675)$— $(1,414)
Translation adjustments on net investment hedges 2
34 275 — 309 
Cash flow hedges
Foreign exchange contracts 3
4 1 (13)(8)
Interest rate contracts(128)— 5 (123)
Defined benefit pension and other postretirement plans 4
21 (31)(1)(11)
Investment securities available-for-sale(1)(5)— (6)
Accumulated other comprehensive income (loss)$(809)$(435)$(9)$(1,253)

December 31, 2020Increase / (Decrease)ReclassificationsDecember 31, 2021
(in millions)
Foreign currency translation adjustments 1
$(352)$(387)$— $(739)
Translation adjustments on net investment hedges 2
(175)209 — 34 
Cash flow hedges
Foreign exchange contracts 3
— 5 (1)4 
Interest rate contracts(133)— 5 (128)
Defined benefit pension and other postretirement plans 4
(20)43 (2)21 
Investment securities available-for-sale— (1)— (1)
Accumulated other comprehensive income (loss)$(680)$(131)$2 $(809)
1During 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. During 2021, the increase in the accumulated other comprehensive loss related to foreign currency translation adjustments was driven primarily by the depreciation of the euro against the U.S. dollar.
2During 2022 and 2021, 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 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. During 2021, the increase in the accumulated other comprehensive income related to the Plans was driven primarily by a net actuarial gain within the Pension Plans. See Note 14 (Pension, Postretirement and Savings Plans) for additional information.
v3.22.4
Share-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2022
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:
202220212020
Risk-free rate of return1.6 %0.9 %1.0 %
Expected term (in years)6.006.006.00
Expected volatility24.6 %26.1 %19.3 %
Expected dividend yield0.6 %0.5 %0.6 %
Weighted-average fair value per Option granted$86.92 $91.70 $80.92 
Summary of Stock Option Activity
The following table summarizes the Company’s option activity for the year ended December 31, 2022:
OptionsWeighted-Average Exercise PriceWeighted-Average Remaining Contractual TermAggregate Intrinsic Value
(in millions)(in years)(in millions)
Outstanding at January 1, 20225.4 $152 
Granted0.3 $344 
Exercised(0.9)$100 
Forfeited(0.1)$308 
Expired— $363 
Outstanding at December 31, 20224.7 $173 4.9$828 
Exercisable at December 31, 20223.9 $143 4.3$788 
Options vested and expected to vest at December 31, 20224.7 $173 4.9$827 
Summary of Restricted Stock Unit Activity
The following table summarizes the Company’s RSU activity for the year ended December 31, 2022:
UnitsWeighted-Average Grant-Date Fair ValueAggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20222.2 $291 
Granted1.0 $340 
Converted(1.2)$258 
Forfeited(0.2)$332 
Outstanding at December 31, 20221.8 $335 $641 
RSUs expected to vest at December 31, 20221.8 $335 $615 
Summary of Performance Stock Unit Activity
The following table summarizes the Company’s PSU activity for the year ended December 31, 2022:
UnitsWeighted-Average
Grant-Date Fair Value		Aggregate Intrinsic Value
(in millions)(in millions)
Outstanding at January 1, 20220.4 $334 
Granted0.2 $335 
Converted— $— 
Other(0.2)$291 
Outstanding at December 31, 20220.4 $352 $128 
PSUs expected to vest at December 31, 20220.4 $352 $128 
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:
202220212020
(in millions, except weighted-average fair value)
Share-based compensation expense: Options, RSUs and PSUs$295 $273 $254 
Income tax benefit recognized for equity awards61 57 53 
Income tax benefit realized related to Options exercised49 36 68 
Options:
Total intrinsic value of Options exercised231 169 317 
RSUs:
Weighted-average grant-date fair value of awards granted 340 358 288 
Total intrinsic value of RSUs converted into shares of Class A common stock420 360 330 
PSUs:
Weighted-average grant-date fair value of awards granted335 385 291 
Total intrinsic value of PSUs converted into shares of Class A common stock— 32 92 
v3.22.4
Commitments (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Future Minimum Payments Due Under Non-Cancelable Agreements
At December 31, 2022, 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 $12 million of these future payments as of December 31, 2022.
(in millions)
2023$428 
2024317 
2025222 
2026106 
202785 
Thereafter47 
Total$1,205 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
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 are as follows:
202220212020
(in millions)
United States$4,228 $4,261 $3,304 
Foreign7,504 6,046 4,456 
Income before income taxes$11,732 $10,307 $7,760 
Components of Income Tax Provision
The total income tax provision for the years ended December 31 is comprised of the following components:
202220212020
(in millions)
Current
Federal$1,024 $663 $439 
State and local133 51 56 
Foreign1,296 976 781 
2,453 1,690 1,276 
Deferred
Federal(661)(31)106 
State and local(40)(4)9 
Foreign50 (35)(42)
(651)(70)73 
Income tax expense$1,802 $1,620 $1,349 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate for the years ended December 31, is as follows:
202220212020
AmountPercentAmountPercentAmountPercent
($ in millions)
Income before income taxes$11,732 $10,307 $7,760 
Federal statutory tax2,464 21.0 %2,164 21.0 %1,630 21.0 %
State tax effect, net of federal benefit72 0.6 %60 0.6 %57 0.7 %
Foreign tax effect(347)(3.0)%(283)(2.7)%(193)(2.5)%
Valuation allowance - U.S. foreign tax credit(333)(2.8)%— — %— — %
U.S. tax expense on foreign operations111 0.9 %63 0.6 %47 0.6 %
Foreign-derived intangible income deduction(129)(1.1)%(69)(0.7)%(46)(0.6)%
U.S. tax benefits 1
— — %(132)(1.3)%— — %
Windfall benefit(68)(0.6)%(67)(0.7)%(119)(1.5)%
Other, net32 0.3 %(116)(1.1)%(27)(0.3)%
Income tax expense$1,802 15.4 %$1,620 15.7 %$1,349 17.4 %
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 are as follows:
20222021
(in millions)
Deferred Tax Assets
Accrued liabilities$697 $497 
Compensation and benefits316 260 
State taxes and other credits43 40 
Net operating losses156 136 
U.S. foreign tax credits274 333 
Property, plant and equipment52 — 
Intangible assets186 206 
Other items162 161 
Less: Valuation allowance(114)(415)
Total Deferred Tax Assets1,772 1,218 
Deferred Tax Liabilities
Prepaid expenses and other accruals186 114 
Gains on equity investments132 153 
Goodwill and intangible assets561 571 
Property, plant and equipment— 174 
Other items135 115 
Total Deferred Tax Liabilities1,014 1,127 
Net Deferred Tax Assets $758 $91 
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:
202220212020
(in millions)
Beginning balance$360 $388 $203 
Additions:
Current year tax positions22 17 19 
Prior year tax positions1
65 4 192 
Reductions:
Prior year tax positions1
(14)(31)(10)
Settlements with tax authorities(13)(15)(12)
Expired statute of limitations(6)(3)(4)
Ending balance$414 $360 $388 
1Includes immaterial translational impact of currency.
v3.22.4
Settlement and Other Risk Management (Tables)
 12 Months Ended
Dec. 31, 2022
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:
20222021
(in millions)
Gross settlement exposure$64,885 $59,571 
Risk mitigation arrangements applied to settlement exposure(10,697)(7,710)
Net settlement exposure
$54,188 $51,861 
v3.22.4
Derivative and Hedging Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022December 31, 2021
 NotionalDerivative AssetsDerivative LiabilitiesNotionalDerivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments
Foreign exchange contracts in a cash flow hedge 1
$642 $4 $15 $206 $7 $3 
Interest rate contracts in a fair value hedge 2
1,000 — 105 1,000 6 8 
Foreign exchange contracts in a net investment hedge 1
1,814 103 4 1,473 — 4 
Derivatives not designated as hedging instruments
Foreign exchange contracts 1
521 1 2 530 1 8 
Total derivative assets/liabilities$3,977 $108 $126 $3,209 $14 $23 
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.
2As of December 31, 2022, interest rate derivative liabilities are included within other current liabilities and other liabilities on the consolidated balance sheet. As of December 31, 2021, interest rate derivative assets and liabilities are included within prepaid expenses and other current assets and other liabilities, respectively, 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,
202220212020202220212020
(in millions)(in millions)
Derivative financial instruments in a cash flow hedge relationship:
Foreign exchange contracts$1 $6 $— Net revenue$16 $1 $— 
Interest rate contracts$— $— $(189)Interest expense$(6)$(6)$(4)
Derivative financial instruments in a net investment hedge relationship:
Foreign exchange contracts $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:202220212020
 (in millions)
Foreign exchange derivative contracts
General and administrative$21 $(10)$40 
v3.22.4
Segment Reporting Schedule of Property Plant and Equipment, Net by Geographic Region (Tables)
 12 Months Ended
Dec. 31, 2022
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:
202220212020
(in millions)
United States$1,123 $1,117 $1,185 
Other countries883 790 717 
Total$2,006 $1,907 $1,902 
v3.22.4
Summary of Significant Accounting Policies Narrative (Details)
 12 Months Ended
Dec. 31, 2022
Buildings  
Property, Equipment and Right-of-Use Assets [Abstract]  
Estimated Useful Life 30 years
Minimum | Building equipment  
Property, Equipment and Right-of-Use Assets [Abstract]  
Estimated Useful Life 10 years
Minimum | Furniture and fixtures and equipment  
Property, Equipment and Right-of-Use Assets [Abstract]  
Estimated Useful Life 3 years
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%
Maximum | Building equipment  
Property, Equipment and Right-of-Use Assets [Abstract]  
Estimated Useful Life 15 years
Maximum | Furniture and fixtures and equipment  
Property, Equipment and Right-of-Use Assets [Abstract]  
Estimated Useful Life 5 years
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%
v3.22.4
Acquisitions Narrative (Details)
€ in Millions, $ in Millions
 12 Months Ended
Apr. 01, 2022
USD ($)
Jun. 09, 2021
USD ($)
Mar. 05, 2021
USD ($)
Mar. 05, 2021
EUR (€)
Nov. 18, 2020
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Business Acquisition [Line Items]                
Total consideration, representing both cash and contingent consideration           $ 300 $ 4,700 $ 1,100
Goodwill           $ 7,522 7,662 $ 4,960
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            
Finicity Corporation (“Finicity”)                
Business Acquisition [Line Items]                
Interests acquired (percent)         100.00%      
Business combination, cash consideration         $ 809      
Contingent consideration             $ 64  
Dynamic Yield LTD                
Business Acquisition [Line Items]                
Interests acquired (percent) 100.00%              
Payments to acquire businesses, gross $ 325              
Goodwill $ 200              
v3.22.4
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Assets:      
Goodwill $ 7,522 $ 7,662 $ 4,960
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  
2020 Acquisitions      
Assets:      
Cash and cash equivalents     6
Other current assets     14
Other intangible assets     237
Goodwill     844
Other assets     11
Total assets     1,112
Liabilities:      
Other current liabilities     15
Deferred income taxes     23
Other liabilities     8
Total liabilities     46
Net assets acquired     $ 1,066
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    
v3.22.4
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
Dec. 31, 2020
2022 Acquisitions      
Business Acquisition [Line Items]      
Other intangible assets $ 125    
Weighted-Average Useful Life 9 years 7 months 6 days    
2022 Acquisitions | Developed technologies      
Business Acquisition [Line Items]      
Other intangible assets $ 100    
Weighted-Average Useful Life 7 years 9 months 18 days    
2022 Acquisitions | Customer relationships      
Business Acquisition [Line Items]      
Other intangible assets $ 25    
Weighted-Average Useful Life 17 years    
2022 Acquisitions | Other      
Business Acquisition [Line Items]      
Other intangible assets $ 0    
2021 Acquisitions      
Business Acquisition [Line Items]      
Other intangible assets   $ 2,071  
Weighted-Average Useful Life   17 years 6 months  
2021 Acquisitions | Developed technologies      
Business Acquisition [Line Items]      
Other intangible assets   $ 433  
Weighted-Average Useful Life   11 years 8 months 12 days  
2021 Acquisitions | Customer relationships      
Business Acquisition [Line Items]      
Other intangible assets   $ 1,614  
Weighted-Average Useful Life   19 years 2 months 12 days  
2021 Acquisitions | Other      
Business Acquisition [Line Items]      
Other intangible assets   $ 24  
Weighted-Average Useful Life   7 years 1 month 6 days  
2020 Acquisitions      
Business Acquisition [Line Items]      
Other intangible assets     $ 237
Weighted-Average Useful Life     9 years
2020 Acquisitions | Developed technologies      
Business Acquisition [Line Items]      
Other intangible assets     $ 122
Weighted-Average Useful Life     6 years 3 months 18 days
2020 Acquisitions | Customer relationships      
Business Acquisition [Line Items]      
Other intangible assets     $ 114
Weighted-Average Useful Life     12 years
2020 Acquisitions | Other      
Business Acquisition [Line Items]      
Other intangible assets     $ 1
Weighted-Average Useful Life     1 year
v3.22.4
Revenue - Disaggregation of Revenues (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Net revenue $ 22,237 $ 18,884 $ 15,301
North American Markets      
Disaggregation of Revenue [Line Items]      
Net revenue 7,809 6,667 5,473
International Markets      
Disaggregation of Revenue [Line Items]      
Net revenue 14,428 12,217 9,828
Payment network      
Disaggregation of Revenue [Line Items]      
Net revenue 14,358 11,943 9,897
Value-added services and solutions      
Disaggregation of Revenue [Line Items]      
Net revenue $ 7,879 $ 6,941 $ 5,404
v3.22.4
Revenue - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]    
Revenue recognized on performance obligations $ 1,600  
Accounts Receivable    
Disaggregation of Revenue [Line Items]    
Contract assets 3,213 $ 2,829
Prepaid expenses and other current assets    
Disaggregation of Revenue [Line Items]    
Contract assets 118 134
Other Assets    
Disaggregation of Revenue [Line Items]    
Contract assets 442 487
Other Current Liabilities    
Disaggregation of Revenue [Line Items]    
Deferred revenue 434 482
Other liabilities    
Disaggregation of Revenue [Line Items]    
Deferred revenue $ 248 $ 180
v3.22.4
Revenue Narrative - Remaining Performance Obligation Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
$ in Billions
Dec. 31, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Amount $ 1.4
Network Services  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 10 years
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator      
Net income $ 9,930 $ 8,687 $ 6,411
Denominator      
Basic weighted-average shares outstanding 968 988 1,002
Dilutive stock options and stock units 3 4 4
Diluted weighted-average shares outstanding 971 992 1,006
Earnings per Share      
Basic Earnings per Share (in dollars per share) $ 10.26 $ 8.79 $ 6.40
Diluted Earnings per Share (in dollars per share) $ 10.22 $ 8.76 $ 6.37
v3.22.4
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]        
Cash and cash equivalents $ 7,008 $ 7,421    
Cash, cash equivalents, restricted cash and restricted cash equivalents 9,196 9,902 $ 12,419 $ 8,969
Restricted cash for litigation settlement        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 589 586    
Restricted security deposits held for customers        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents 1,568 1,873    
Prepaid expenses and other current assets        
Restricted Cash and Cash Equivalents Items [Line Items]        
Restricted cash and restricted cash equivalents $ 31 $ 22    
v3.22.4
Supplemental Cash Flows (Non-Cash Investing and Financing Information) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Supplemental Cash Flow Information [Abstract]      
Cash paid for income taxes, net of refunds $ 2,506 $ 1,820 $ 1,349
Cash paid for interest 414 399 311
Cash paid for legal settlements 114 98 149
Dividends declared but not yet paid 545 479 439
Accrued property, equipment and right-of-use assets 118 15 154
Fair value of assets acquired, net of cash acquired 341 4,969 1,106
Fair value of liabilities assumed related to acquisitions $ 27 $ 522 $ 46
v3.22.4
Investments - Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale securities $ 272 $ 314
Held-to-maturity securities 2 128 159
Investments $ 400 $ 473
v3.22.4
Investments - Available-for-Sale Investment Securities, Unrealized Gains and Losses (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Investment Identifier [Line Items]    
Amortized Cost $ 278 $ 314
Gross Unrealized Gain 0 0
Gross Unrealized Loss (6) 0
Available-for-sale securities 272 314
Municipal securities    
Investment Identifier [Line Items]    
Amortized Cost 0 2
Gross Unrealized Gain 0 0
Gross Unrealized Loss 0 0
Available-for-sale securities 0 2
Government and agency securities    
Investment Identifier [Line Items]    
Amortized Cost 91 98
Gross Unrealized Gain 0 0
Gross Unrealized Loss (2) 0
Available-for-sale securities 89 98
Corporate securities    
Investment Identifier [Line Items]    
Amortized Cost 187 214
Gross Unrealized Gain 0 0
Gross Unrealized Loss (4) 0
Available-for-sale securities $ 183 $ 214
v3.22.4
Investments - Maturity Distribution Based on Contractual Terms of Investment Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Available-For-Sale Amortized Cost    
Due within 1 year $ 158  
Due after 1 year through 5 years 120  
Amortized Cost 278 $ 314
Available-For-Sale Fair Value    
Due within 1 year 157  
Due after 1 year through 5 years 115  
Total $ 272 $ 314
v3.22.4
Investments - Equity Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Increase (Decrease) In Equity Investments [Roll Forward]      
Marketable securities, beginning balance $ 627    
Marketable securities, Purchases (Sales), Net 0    
Marketable Securities, Sales 0    
Marketable securities, Changes in Fair Value (213)    
Marketable Securities, Other Changes (15)    
Marketable securities, ending balance 399 $ 627  
Nonmarketable securities, beginning balance 1,207    
Nonmarketable Securities, Purchases (Sales), Net 88    
Nonmarketable Securities, Sales (7)    
Nonmarketable securities, Changes in Fair Value 68    
Non-marketable securities, Other (25)    
Nonmarketable securities, ending balance 1,331 1,207  
Total equity investments, beginning balance 1,834    
Total equity investments, Purchases (Sales), net 88    
Total equity investments, Sales (7) (186) $ 0
Total equity investments, Changes in Fair Value (145)    
Total equity investments, Other (40)    
Total equity investments, ending balance $ 1,730 $ 1,834  
v3.22.4
Investments - Equity Securities without Readily Determinable Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Measurement alternative $ 1,087 $ 952
Equity method 244 255
Total Nonmarketable securities $ 1,331 $ 1,207
v3.22.4
Investments - Carrying Value of Measurement Alternative Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]    
Initial cost basis $ 503  
Upward adjustments 620  
Downward adjustments (including impairment) (36)  
Measurement alternative $ 1,087 $ 952
v3.22.4
Investments - Unrealized Gains (Losses) Included in the Carrying Value of Measurement Alternative Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]      
Upward adjustments $ 114 $ 468 $ 21
Downward adjustments (including impairment) (23) (2) (3)
Marketable Securities, Unrealized Gain (Loss) $ (213) $ 8 $ (5)
v3.22.4
Fair Value Measurements - Distribution of Financial Instruments, Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets $ 74 $ 89
Deferred compensation plan 73 89
Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Deferred compensation assets 74 89
Deferred compensation plan 73 89
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
Municipal securities    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 2
Municipal securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Municipal securities | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 2
Municipal securities | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 0 0
Government and agency securities    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 89 98
Government and agency securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 35 35
Government and agency securities | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 54 63
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 183 214
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 183 214
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 399 627
Equity securities | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Investment securities available for sale 399 627
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 108 8
Derivative instruments 21 15
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 108 8
Derivative instruments 21 15
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]    
Foreign exchange contracts 0 6
Derivative instruments 105 8
Interest rate contracts | Fair Value, Inputs, Level 1    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 0 0
Derivative instruments 0 0
Interest rate contracts | Fair Value, Inputs, Level 2    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 0 6
Derivative instruments 105 8
Interest rate contracts | Fair Value, Inputs, Level 3    
Fair Value, Option, Quantitative Disclosures [Line Items]    
Foreign exchange contracts 0 0
Derivative instruments $ 0 $ 0
v3.22.4
Fair Value Measurements - Narrative Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total debt outstanding $ 14,023 $ 13,901
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt, fair value $ 12,700 $ 15,300
v3.22.4
Prepaid Expenses and Other Assets Schedule of Prepaid Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Prepaid Expense and Other Assets [Abstract]    
Customer and merchant incentives $ 1,392 $ 1,326
Prepaid income taxes 34 92
Other 920 853
Total prepaid expenses and other current assets $ 2,346 $ 2,271
v3.22.4
Prepaid Expenses and Other Assets Schedule of Other Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Prepaid Expense and Other Assets [Abstract]    
Customer and merchant incentives $ 4,578 $ 3,798
Equity investments 1,730 1,834
Income taxes receivable 633 645
Other 639 717
Total other assets $ 7,580 $ 6,994
v3.22.4
Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets $ 3,910 $ 3,521
Less: Accumulated depreciation and amortization (1,904) (1,614)
Property, equipment and right-of-use assets, net 2,006 1,907
Building, building equipment and land    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 652 615
Equipment    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 1,711 1,456
Furniture and fixtures    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 96 96
Leasehold improvements    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets 376 371
Operating lease right-of-use assets    
Property, Equipment and Right-of-Use Assets [Line Items]    
Property, equipment and right-of-use assets $ 1,075 $ 983
v3.22.4
Property, Equipment and Right-of-Use Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation expense including amortization for capital leases $ 473 $ 424 $ 400
Operating lease amortization expense $ 137 $ 122 $ 123
Weighted-average remaining lease term of operating lease 8 years 4 months 24 days 8 years 9 months 18 days  
Weighted-average discount rate for operating leases 2.50% 2.60%  
v3.22.4
Property, Equipment and Right-of-Use Assets - Operating Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]    
Property, equipment and right-of-use assets, net $ 679 $ 671
Other current liabilities 140 127
Other liabilities $ 630 $ 645
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
v3.22.4
Property, Equipment and Right-of-Use Assets - Maturities of Operating Lease Liabilities (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Operating Leases after Adoption of ASC Topic 842:  
2023 $ 136
2024 135
2025 106
2026 91
2027 73
Thereafter 308
Total operating lease payments 849
Less: Interest (79)
Present value of operating lease liabilities $ 770
v3.22.4
Change in Carrying Amount of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Beginning balance $ 7,662 $ 4,960
Additions 200 2,842
Foreign currency translation (340) (140)
Ending balance $ 7,522 $ 7,662
v3.22.4
Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 5,663 $ 5,260
Accumulated Amortization (1,960) (1,755)
Net Carrying Amount 3,703 3,505
Unamortized intangible assets:    
Intangible Assets, Gross (Excluding Goodwill) 5,819 5,426
Accumulated Amortization (1,960) (1,755)
Net Carrying Amount 3,859 3,671
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,448 2,929
Accumulated Amortization (1,402) (1,288)
Net Carrying Amount 2,046 1,641
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,161 2,272
Accumulated Amortization (521) (429)
Net Carrying Amount 1,640 1,843
Unamortized intangible assets:    
Customer relationships 156 166
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 54 59
Accumulated Amortization (37) (38)
Net Carrying Amount $ 17 $ 21
v3.22.4
Other Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Intangible Assets, Net (Excluding Goodwill) [Abstract]      
Amortization expense on intangible assets $ 414 $ 424 $ 303
v3.22.4
Other Intangible Assets (Schedule of Estimated Future Amortization Expense) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
2023 $ 493  
2024 468  
2025 450  
2026 455  
2027 and thereafter 1,837  
Net Carrying Amount $ 3,703 $ 3,505
v3.22.4
Accrued Expenses and Accrued Litigation (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accrued Liabilities [Abstract]    
Customer and merchant incentives $ 5,600 $ 4,730
Personnel costs 1,322 980
Income and other taxes 279 337
Other 600 595
Total accrued expenses $ 7,801 $ 6,642
v3.22.4
Accrued Expenses and Accrued Litigation (Narrative) (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Accrued Liabilities [Abstract]    
Accrued litigation $ 1,094 $ 840
Accrued customer and merchant incentives $ 2,293 $ 1,835
v3.22.4
Pension, Postretirement and Savings Plans Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]      
Total expense related to defined contribution plans $ 204 $ 175 $ 150
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Projected benefit obligation increase (decrease) $ (204) $ (8)  
Healthcare cost trend rate assumed for next year 6.50% 6.75%  
Ultimate trend rate 5.00% 5.00%  
Year that the rate reaches the ultimate trend rate 6 years 7 years  
Plan assets at fair value $ 391 $ 637  
2023 28    
2024 20    
2025 19    
2026 18    
2027 25    
2028 - 2032 114    
Cash and cash equivalents      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 43 246  
Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 234 287  
Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 114 104  
Other Postretirement Benefits Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit Obligation, beginning 62 70  
Service cost 1 1 1
Interest cost 2 2 2
Actuarial (gain) loss (16) (7)  
Benefits paid (6) (4)  
Transfers in 0 0  
Foreign currency translation 0 0  
Benefit Obligation, ending 43 62 70
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Actual gain/(loss) on plan assets 0 0  
Employer contributions 6 4  
Benefits paid (6) (4)  
Transfers in 0 0  
Foreign currency translation 0 0  
Funded status at end of year (43) (62)  
Noncurrent assets 0 0  
Other liabilities, short-term (3) (3)  
Other liabilities, long-term (40) (59)  
Total amounts recognized on the consolidated balance sheet (43) (62)  
Net actuarial (gain) loss (14) 2  
Prior service credit (1) (2)  
Balance at end of year $ (15) $ 0  
Weighted-average assumptions used to determine end of year benefit obligations, Discount Rate 5.50% 2.75%  
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) (16) (7) 7
Amortization of prior service credit 1 2 1
Total other comprehensive loss (income) (15) (5) 8
Total net periodic benefit cost and other comprehensive loss (income) $ (13) $ (3) $ 10
Weighted-average assumptions used to determine end of year net periodic benefit, Discount rate 2.75% 2.50% 3.25%
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
2023 3    
2024 3    
2025 3    
2026 3    
2027 4    
2028 - 2032 18    
Pension Plan      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit Obligation, beginning 596 604  
Service cost 12 14 13
Interest cost 9 9 9
Actuarial (gain) loss (156) (6)  
Benefits paid (16) (17)  
Transfers in 5 4  
Foreign currency translation (58) (12)  
Benefit Obligation, ending 392 596 604
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Actual gain/(loss) on plan assets (203) 63  
Employer contributions 25 32  
Benefits paid (16) (17)  
Transfers in 5 4  
Foreign currency translation (69) (11)  
Funded status at end of year 38 92  
Noncurrent assets 44 105  
Other liabilities, short-term 0 0  
Other liabilities, long-term (6) (13)  
Total amounts recognized on the consolidated balance sheet 38 92  
Net actuarial (gain) loss 23 (38)  
Prior service credit 1 1  
Balance at end of year 24 (37)  
Projected benefit obligation 392 596  
Accumulated benefit obligation 388 592  
Fair value of plan assets 430 688  
Expected return on plan assets (14) (19) (18)
Amortization of actuarial loss 0 (1) 0
Amortization of prior service credit 0 0 0
Net periodic benefit cost 7 3 4
Current year actuarial loss (gain) 61 (50) 5
Amortization of prior service credit 0 0 0
Total other comprehensive loss (income) 61 (50) 5
Total net periodic benefit cost and other comprehensive loss (income) 68 (47) 9
Plan assets at fair value $ 430 $ 688 $ 617
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 3.80% 0.90%  
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 0.90% 0.70% 0.70%
Weighted-average assumptions used to determine end of year net periodic benefit, Expected return on plan assets 1.60% 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 $ 149 $ 431  
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 43 246  
Fair Value, Inputs, Level 1 | Mutual funds      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 106 185  
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 242 206  
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 128 102  
Fair Value, Inputs, Level 2 | Insurance contracts      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Plan assets at fair value 114 104  
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 $ 430 $ 688  
Vocalink Plan | Non-government fixed income      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 18.00%    
Vocalink Plan | Cash and cash equivalents      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 14.00%    
Vocalink Plan | Government and agency securities      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets, target allocation (percent) 41.00%    
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) 16.00%    
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 4.80% 1.75%  
Weighted-average assumptions used to determine end of year benefit obligations, rate of compensation increase 2.70% 3.20%  
Weighted-average assumptions used to determine end of year net periodic benefit, Discount rate 1.75% 1.55% 1.55%
Weighted-average assumptions used to determine end of year net periodic benefit, Expected return on plan assets 2.30% 3.20% 3.20%
Weighted-average assumptions used to determine end of year net periodic benefit, Rate of compensation increase 3.20% 2.75% 2.75%
Pension Plans with Benefit Obligations in Excess of Plan Assets | Pension Plan      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Projected benefit obligation $ 8 $ 116  
Accumulated benefit obligation 6 115  
Fair value of plan assets 2 104  
Mutual funds | Investments at Net Asset Value (NAV)      
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Alternative Investment $ 39 $ 51  
v3.22.4
Debt - Schedule of Long-term Debt (Details)
€ in Millions, $ in Millions, ₨ in Billions
 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2022
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jul. 31, 2022
INR (₨)
Feb. 28, 2022
EUR (€)
Dec. 31, 2015
EUR (€)
Debt Instrument [Line Items]              
Long-term debt, gross $ 14,239   $ 14,019        
Less: Unamortized discount and debt issuance costs (111)   (116)        
Less: Cumulative hedge accounting fair value adjustments 4 (105)   (2)        
Total debt outstanding 14,023   13,901        
Less: current portion (274)   (792)        
Long-term debt 13,749   13,109        
Repayments of debt $ 724   650 $ 0      
INR Term Loan              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 8.64%            
Effective Interest Rate 9.09%            
Short-term debt $ 275   0   ₨ 22.7    
Senior Notes | February 2029 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 1.00%            
Effective Interest Rate 1.138%            
Long-term debt, gross $ 800   0     € 750  
Senior Notes | November 2031 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 2.00%            
Effective Interest Rate 2.112%            
Long-term debt, gross $ 750   750        
Senior Notes | March 2031 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 1.90%            
Effective Interest Rate 1.981%            
Long-term debt, gross $ 600   600        
Senior Notes | 2051 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 2.95%            
Effective Interest Rate 3.013%            
Long-term debt, gross $ 700   700        
Senior Notes | 2027 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 3.30%            
Effective Interest Rate 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%            
Effective Interest Rate 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%            
Effective Interest Rate 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%            
Effective Interest Rate 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%            
Effective Interest Rate 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%            
Effective Interest Rate 2.147%            
Long-term debt, gross $ 750   750        
Senior Notes | 2028 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 3.50%            
Effective Interest Rate 3.598%            
Long-term debt, gross $ 500   500        
Senior Notes | 2048 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 3.95%            
Effective Interest Rate 3.99%            
Long-term debt, gross $ 500   500        
Senior Notes | 2026 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 2.95%            
Effective Interest Rate 3.044%            
Long-term debt, gross $ 750   750        
Senior Notes | 2046 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 3.80%            
Effective Interest Rate 3.893%            
Long-term debt, gross $ 600   600        
Senior Notes | 2022 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 1.10%            
Effective Interest Rate 1.265%            
Long-term debt, gross $ 0   793        
Senior Notes | Senior Notes due December 2027              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 2.10%            
Effective Interest Rate 2.189%            
Long-term debt, gross $ 854   906        
Senior Notes | Senior Notes due December 2030              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 2.50%            
Effective Interest Rate 2.562%            
Long-term debt, gross $ 160   170        
Senior Notes | 2024 Notes              
Debt Instrument [Line Items]              
Debt instrument stated rate (percent) 3.375%            
Effective Interest Rate 3.484%            
Long-term debt, gross $ 1,000   $ 1,000        
Senior Notes | 2015 Euro Notes              
Debt Instrument [Line Items]              
Long-term debt, gross | €             € 1,650
Repayments of debt $ 724 € 700          
v3.22.4
Debt - Narrative (Details)
€ in Millions, ₨ in Millions
 1 Months Ended 12 Months Ended
Jul. 31, 2022
USD ($)
Jul. 31, 2022
INR (₨)
Feb. 28, 2022
USD ($)
Feb. 28, 2022
EUR (€)
Mar. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
Jan. 27, 2023
USD ($)
Dec. 31, 2022
USD ($)
Nov. 10, 2022
USD ($)
Nov. 09, 2022
USD ($)
Nov. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Debt Instrument [Line Items]                        
Long-term debt, gross           $ 14,019,000,000   $ 14,239,000,000        
Commercial paper program               6,000,000,000        
Subsequent Event                        
Debt Instrument [Line Items]                        
Commercial paper program             $ 8,000,000,000          
Revolving Credit Facility                        
Debt Instrument [Line Items]                        
Credit facility                 $ 8,000,000,000 $ 6,000,000,000    
INR Term Loan                        
Debt Instrument [Line Items]                        
Proceeds from issuance of debt $ 284,000,000 ₨ 22,600                    
Short-term debt   ₨ 22,700       0   275,000,000        
Senior Notes                        
Debt Instrument [Line Items]                        
Proceeds from issuance of debt         $ 3,959,000,000              
Senior Notes | February 2029 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross       € 750   0   800,000,000        
Proceeds from issuance of debt     $ 843,000,000 € 743                
Senior Notes | March 2031 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           600,000,000   600,000,000        
Aggregate principal amount                       $ 600,000,000
Senior Notes | 2051 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           700,000,000   700,000,000        
Aggregate principal amount                       $ 700,000,000
Senior Notes | November 2031 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           750,000,000   750,000,000        
Aggregate principal amount                     $ 750,000,000  
Senior Notes | 2021 USD Notes                        
Debt Instrument [Line Items]                        
Proceeds from issuance of debt           2,024,000,000.000            
Senior Notes | 2027 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           1,000,000,000   1,000,000,000        
Aggregate principal amount         1,000,000,000              
Senior Notes | 2030 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           1,500,000,000   1,500,000,000        
Aggregate principal amount         1,500,000,000              
Senior Notes | Senior Notes due March 2050                        
Debt Instrument [Line Items]                        
Long-term debt, gross           1,500,000,000   1,500,000,000        
Aggregate principal amount         $ 1,500,000,000              
Senior Notes | 2029 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           1,000,000,000   1,000,000,000        
Senior Notes | 2049 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           1,000,000,000   1,000,000,000        
Senior Notes | 2025 Notes                        
Debt Instrument [Line Items]                        
Long-term debt, gross           $ 750,000,000   $ 750,000,000        
v3.22.4
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]    
2023 $ 275  
2024 1,000  
2025 750  
2026 750  
2027 1,854  
Thereafter 9,610  
Total $ 14,239 $ 14,019
v3.22.4
Stockholders' Equity (Narrative) (Details) - Mastercard Foundation
shares in Millions
 5 Months Ended
May 31, 2006
shares
Class of Stock [Line Items]  
Required Disbursement by charitable entity 3.50%
Class A Common Stock  
Class of Stock [Line Items]  
Issuance and donation of shares 135
v3.22.4
Stockholders' Equity (Schedule of Classes of Capital Stock) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Class of Stock [Line Items]    
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Public Investors (Class A Stockholders)    
Class of Stock [Line Items]    
Equity Ownership 88.50% 88.40%
General Voting Power 89.30% 89.20%
Principal or Affiliate Members (Class B Stockholders)    
Class of Stock [Line Items]    
Equity Ownership 0.80% 0.80%
General Voting Power 0.00% 0.00%
The MasterCard Foundation (Class A Stockholders)    
Class of Stock [Line Items]    
Equity Ownership 10.70% 10.80%
General Voting Power 10.70% 10.80%
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 Per Share $ 0.0001 $ 0.0001
Preferred Stock, Authorized Shares 300,000,000 300,000,000
v3.22.4
Stockholders' Equity - Dividends Declared (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dividends Payable [Line Items]      
Annual dividends declared $ 1,968 $ 1,781 $ 1,641
  Common Stock      
Dividends Payable [Line Items]      
Cash dividends declared on Class A and Class B common stock, per share $ 2.04 $ 1.81 $ 1.64
Retained Earnings      
Dividends Payable [Line Items]      
Annual dividends declared $ 1,968 $ 1,781 $ 1,641
v3.22.4
Stockholders' Equity - Statement of Changes in Common Shares Outstanding (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Class A Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Purchases of treasury stock (25.7) (16.5) (14.3)
  Common Stock | Class A Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance 972.1 986.9 996.0
Purchases of treasury stock (25.7) (16.5) (14.3)
Share-based payments 1.8 1.2 2.3
Conversion of Class B to Class A common stock 0.2 0.5 2.9
Balance 948.4 972.1 986.9
  Common Stock | Class B Common Stock      
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Balance 7.8 8.3 11.2
Conversion of Class B to Class A common stock (0.2) (0.5) (2.9)
Balance 7.6 7.8 8.3
v3.22.4
Stockholders' Equity - Summary of Share Repurchase Authorization (Details) - USD ($)
$ / shares in Units, shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Equity, Class of Treasury Stock [Line Items]      
Remaining authorization $ 12,200,000,000    
Class A Common Stock      
Equity, Class of Treasury Stock [Line Items]      
Board authorization 9,000,000,000 $ 8,000,000,000 $ 6,000,000,000
Dollar-value of shares repurchased $ 8,753,000,000 $ 5,904,000,000 $ 4,473,000,000
Shares repurchased (in shares) 25.7 16.5 14.3
Average price per share (in dollars per share) $ 340.60 $ 356.82 $ 312.68
v3.22.4
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 7,383 $ 6,488 $ 5,917
Increase / (Decrease) (435) (131)  
Reclassifications (9) 2  
Ending balance 6,356 7,383 6,488
Foreign Currency Translation Adjustments      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (739) (352)  
Increase / (Decrease) (675) (387)  
Reclassifications 0 0  
Ending balance (1,414) (739) (352)
Translation Adjustments on Net Investment Hedge      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 34 (175)  
Increase / (Decrease) 275 209  
Reclassifications 0 0  
Ending balance 309 34 (175)
Cash Flow Hedges      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (128) (133)  
Increase / (Decrease) 0 0  
Reclassifications 5 5  
Ending balance (123) (128) (133)
Cash Flow Hedges | Foreign exchange contracts      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 4 0  
Increase / (Decrease) 1 5  
Reclassifications (13) (1)  
Ending balance (8) 4 0
Defined Benefit Pension and Other Postretirement Plans      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance 21 (20)  
Increase / (Decrease) (31) 43  
Reclassifications (1) (2)  
Ending balance (11) 21 (20)
Investment Securities Available-for-Sale      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (1) 0  
Increase / (Decrease) (5) (1)  
Reclassifications 0 0  
Ending balance (6) (1) 0
Accumulated other comprehensive income (loss)      
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance (809) (680)  
Ending balance $ (1,253) $ (809) $ (680)
v3.22.4
Share-Based Payments - Narrative (Details)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
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 $ 19
Period over which unrecognized cost will be recognized, in years 1 year 8 months 12 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 $ 334
Period over which unrecognized cost will be recognized, in years 2 years
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 $ 29
Period over which unrecognized cost will be recognized, in years 1 year 8 months 12 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
v3.22.4
Share-Based Payments (Schedule of Weighted-Average Assumptions Used in the Valuation of Awards) (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement, Additional Disclosure [Abstract]      
Risk-free rate of return 1.60% 0.90% 1.00%
Expected term (in years) 6 years 6 years 6 years
Expected volatility 24.60% 26.10% 19.30%
Expected dividend yield 0.60% 0.50% 0.60%
Weighted-average fair value per option granted $ 86.92 $ 91.70 $ 80.92
v3.22.4
Share-Based Payments (Summary of Stock Option Activity) (Details)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Options outstanding at beginning of period | shares 5.4
Options granted | shares 0.3
Options exercised | shares (0.9)
Options forfeited | shares (0.1)
Options expired | shares 0.0
Options outstanding at end of period | shares 4.7
Options exercisable at the end of the period | shares 3.9
Options vested and expected to vest at the end of the period | shares 4.7
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 $ 152
Weighted-average exercise price, options granted | $ / shares 344
Weighted-average exercise price, options exercised | $ / shares 100
Weighted-average exercise price, options forfeited | $ / shares 308
Weighted-average exercise price, options expired | $ / shares 363
Weighted-average exercise price, options outstanding at the end of the period | $ / shares 173
Weighted-average exercise price, options exercisable at the end of the period | $ / shares 143
Weighted-average exercise price, options vested and expected to vest at he end of the period | $ / shares $ 173
Weighted-average remaining contractual term, options outstanding at he end of the period, in years 4 years 10 months 24 days
Weighted-average remaining contractual term, options exercisable at he end of the period, in years 4 years 3 months 18 days
Weighted-average remaining contractual term, options vested and expected to vest at he end of the period, in years 4 years 10 months 24 days
Aggregate intrinsic value, options outstanding at he end of the period | $ $ 828
Aggregate intrinsic value, options exercisable at he end of the period | $ 788
Aggregate intrinsic value, options vested and expected to vest at he end of the period | $ $ 827
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
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 2.2    
Granted 1.0    
Converted (1.2)    
Forfeited (0.2)    
Outstanding end of period 1.8 2.2  
RSUs units expected to vest at the end of the period 1.8    
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, units outstanding, beginning of period $ 291    
Weighted-average grant-date fair value, granted 340 $ 358 $ 288
Weighted-average grant-date fair value, converted 258    
Weighted-average grant-date fair value, forfeited/expired 332    
Weighted-average grant-date fair value, units outstanding, end of period 335 $ 291  
Weighted-average grant-date fair value, units vested and expected to vest at the end of the period $ 335    
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 $ 641    
Aggregate intrinsic value, units expected to vest at the end of the period $ 615    
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 0.4    
Granted 0.2    
Converted 0.0    
Other (0.2)    
Outstanding end of period 0.4 0.4  
RSUs units expected to vest at the end of the period 0.4    
Weighted-Average Grant-Date Fair Value      
Weighted-average grant-date fair value, units outstanding, beginning of period $ 334    
Weighted-average grant-date fair value, granted 335 $ 385 $ 291
Weighted-average grant-date fair value, converted 0    
Weighted-average grant-date fair value, other 291    
Weighted-average grant-date fair value, units outstanding, end of period 352 $ 334  
Weighted-average grant-date fair value, units vested and expected to vest at the end of the period $ 352    
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 $ 128    
Aggregate intrinsic value, units expected to vest at the end of the period $ 128    
v3.22.4
Share-Based Payments Schedule of Additional Share-Based Payment Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based compensation expense: Options, RSUs and PSUs $ 295 $ 273 $ 254
Income tax benefit recognized for equity awards 61 57 53
Share-based Payment Arrangement, Exercise of Option, Tax Benefit 49 36 68
Total intrinsic value of stock options exercised $ 231 $ 169 $ 317
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value of awards granted $ 340 $ 358 $ 288
Total intrinsic value of units converted into shares of Class A common stock $ 420 $ 360 $ 330
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant-date fair value of awards granted $ 335 $ 385 $ 291
Total intrinsic value of units converted into shares of Class A common stock $ 0 $ 32 $ 92
v3.22.4
Commitments Narrative (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Accrued liabilities related to sponsorships and licensing agreements under noncancelable agreements $ 12
v3.22.4
Commitments Future Minimum Payments Due Under Non-Cancelable Agreements (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Sponsorship, Licensing & Other  
2023 $ 428
2024 317
2025 222
2026 106
2027 85
Thereafter 47
Total $ 1,205
v3.22.4
Income Taxes Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Jan. 01, 2010
Mar. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]            
Effective income tax rate     15.40% 15.70% 17.40%  
Valuation allowance, deferred tax asset, increase (decrease), amount   $ 333        
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     $ 454 $ 300 $ 260  
Earning per share diluted impact of incentive grant received reducing income tax liability     $ 0.47 $ 0.30 $ 0.26  
Earnings permanently reinvested     $ 1,600      
U.S. foreign tax credits     274 $ 333    
Net operating losses     156 136    
Unrecognized tax benefit     414 $ 360 $ 388 $ 203
Unrecognized tax benefits that would reduce the effective tax rate     $ 362      
v3.22.4
Income Taxes Schedule of Domestic and Foreign Earnings (Loss) Before Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
United States $ 4,228 $ 4,261 $ 3,304
Foreign 7,504 6,046 4,456
Income before income taxes $ 11,732 $ 10,307 $ 7,760
v3.22.4
Income Taxes Components of Income Tax Provision (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current      
Federal $ 1,024 $ 663 $ 439
State and local 133 51 56
Foreign 1,296 976 781
Current 2,453 1,690 1,276
Deferred      
Federal (661) (31) 106
State and local (40) (4) 9
Foreign 50 (35) (42)
Deferred (651) (70) 73
Income tax expense $ 1,802 $ 1,620 $ 1,349
v3.22.4
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Amount      
Income before income taxes $ 11,732 $ 10,307 $ 7,760
Federal statutory tax 2,464 2,164 1,630
State tax effect, net of federal benefit 72 60 57
Foreign tax effect (347) (283) (193)
Valuation allowance - U.S. foreign tax credit (333) 0 0
U.S. tax expense on foreign operations 111 63 47
Foreign-derived intangible income deduction (129) (69) (46)
U.S. tax benefits 0 (132) 0
Windfall benefit (68) (67) (119)
Other, net 32 (116) (27)
Income tax expense $ 1,802 $ 1,620 $ 1,349
Percent      
Federal statutory tax 21.00% 21.00% 21.00%
State tax effect, net of federal benefit 0.60% 0.60% 0.70%
Foreign tax effect (3.00%) (2.70%) (2.50%)
Valuation allowance - U.S. foreign tax credit (2.80%) 0.00% 0.00%
U.S. tax expense on foreign operations 0.90% 0.60% 0.60%
Foreign-derived intangible income deduction (1.10%) (0.70%) (0.60%)
U.S. tax benefits 0.00% (1.30%) 0.00%
Windfall benefit (0.60%) (0.70%) (1.50%)
Other, net 0.30% (1.10%) (0.30%)
Income tax expense 15.40% 15.70% 17.40%
v3.22.4
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred Tax Assets    
Accrued liabilities $ 697 $ 497
Compensation and benefits 316 260
State taxes and other credits 43 40
Net operating losses 156 136
U.S. foreign tax credits 274 333
Property, plant and equipment 52 0
Intangible assets 186 206
Other items 162 161
Less: Valuation allowance (114) (415)
Total Deferred Tax Assets 1,772 1,218
Deferred Tax Liabilities    
Prepaid expenses and other accruals 186 114
Gains on equity investments 132 153
Goodwill and intangible assets 561 571
Property, plant and equipment 0 174
Other items 135 115
Total Deferred Tax Liabilities 1,014 1,127
Net Deferred Tax Assets $ 758 $ 91
v3.22.4
Income Taxes Reconciliation of Beginning and Ending Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Beginning balance $ 360 $ 388 $ 203
Current year tax positions 22 17 19
Prior year tax positions 65 4 192
Prior year tax positions (14) (31) (10)
Settlements with tax authorities (13) (15) (12)
Expired statute of limitations (6) (3) (4)
Ending balance $ 414 $ 360 $ 388
v3.22.4
Legal and Regulatory Proceedings (Details)
£ in Millions, € in Billions
 1 Months Ended 3 Months Ended 12 Months Ended 30 Months Ended
Mar. 31, 2021
GBP (£)
Jun. 30, 2020
claimant
Sep. 30, 2019
USD ($)
Jul. 31, 2018
claimant
Jan. 31, 2017
claimant
Oct. 31, 2011
plaintiff
Feb. 28, 2011
Dec. 31, 2020
USD ($)
Dec. 31, 2022
USD ($)
fax
claimant
Dec. 31, 2022
GBP (£)
fax
Dec. 31, 2022
EUR (€)
fax
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jun. 30, 2019
claimant
Dec. 31, 2022
GBP (£)
claimant
Jul. 31, 2019
Legal And Regulatory                                
Accrued litigation                 $ 1,094,000,000     $ 840,000,000        
Restricted cash for litigation settlement                 589,000,000     586,000,000        
Provision for litigation                 $ 356,000,000     94,000,000 $ 73,000,000      
Loss contingency, unsolicited advertisements | fax                 381,000 381,000 381,000          
Loss contingency, damages sought, per claim                 $ 500              
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 Lawsuit Settlement                                
Legal And Regulatory                                
Accrued litigation                 894,000,000     $ 783,000,000        
Additional litigation accrual                 133,000,000              
Maximum | U.S. Merchant Litigation - Class Litigation                                
Legal And Regulatory                                
Percentage of Opt Out Merchants to Terminate                               25.00%
U.K. Merchant Lawsuit Settlement                                
Legal And Regulatory                                
Provision for litigation                 223,000,000       $ 28,000,000      
U.K. Merchant claimants                                
Legal And Regulatory                                
Number of claimants in case | claimant       4 10                      
U.K. Merchant claimants | U.K. Merchant Claimants, Sent Back To Trial Court, Liability And Damages Issues                                
Legal And Regulatory                                
Loss Contingency, Pending Claims, Number | claimant   3                            
2022 Mastercard and Visa Proposed Collective Action Complaint in the U.K.                                
Legal And Regulatory                                
Amount of damages sought (approximately)                 600,000,000 £ 500            
Proposed U.K. Interchange Collective Action                                
Legal And Regulatory                                
Amount of damages sought (approximately)                 17,000,000,000 £ 14,000            
Portugal Proposed Interchange Collective Action                                
Legal And Regulatory                                
Amount of damages sought (approximately)                 $ 400,000,000   € 0.4          
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              
U.K. Prepaid Cards Matter                                
Legal And Regulatory                                
Litigation settlement, amount awarded to other party | £ £ 32                              
Litigation charge               $ 45,000,000                
Pending Litigation | U.K. Merchant Lawsuit Settlement                                
Legal And Regulatory                                
Loss Contingency, Estimate of Possible Loss                 $ 700,000,000           £ 600  
Appealing judgment | U.K. Merchant claimants                                
Legal And Regulatory                                
Loss Contingency, Claims Settled, Number | claimant                           3    
Judicial Ruling | 2016 U.K. Merchant Claimants | Unfavorable Regulatory Action                                
Legal And Regulatory                                
Loss Contingency, Claims Settled, Number | claimant                           1    
Judicial Ruling | 2017 U.K. Merchant Claimants                                
Legal And Regulatory                                
Loss Contingency, Claims Settled, Number | claimant   1   3                        
Judicial Ruling | 2017 U.K. Merchant Claimants | Unfavorable Regulatory Action                                
Legal And Regulatory                                
Loss Contingency, Claims Settled, Number | claimant       2                        
Settled Litigation | U.K. Merchant claimants | U.K. Merchant Claimants, Sent Back To Trial Court, Liability And Damages Issues                                
Legal And Regulatory                                
Loss Contingency, Pending Claims, Number | claimant                 4           4  
v3.22.4
Settlement and Other Risk Management Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Settlement and Other Risk Management [Abstract]    
Travelers cheques outstanding, notional value $ 342 $ 361
Travelers cheques covered by collateral arrangements $ 273 $ 287
v3.22.4
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, 2022
Dec. 31, 2021
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items]    
Gross settlement exposure $ 64,885 $ 59,571
Risk mitigation arrangements applied to settlement exposure (10,697) (7,710)
Net settlement exposure $ 54,188 $ 51,861
v3.22.4
Derivative and Hedging Instruments - Narrative (Details)
€ in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2022
EUR (€)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2022
EUR (€)
Dec. 31, 2015
EUR (€)
Foreign Exchange Risk Management              
Pre-tax, net foreign currency gain (loss) of net investment hedge   $ 177   $ 114 $ 0    
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%  
Euro-Denominated Debt              
Foreign Exchange Risk Management              
Pre-tax, net foreign currency gain (loss) of net investment hedge   $ 176   155 $ (177)    
Cash Flow Hedging | Interest Rate Risk              
Foreign Exchange Risk Management              
Cash flow hedge, loss, before reclassification, after tax   123          
Cash Flow Hedging | Interest Rate Risk              
Foreign Exchange Risk Management              
Cash flow hedge, loss, before reclassification, after tax $ 136            
Cash flow hedge, gain (loss) to be reclassified within twelve months   17          
Net Investment Hedging              
Foreign Exchange Risk Management              
Euro-denominated debt designated as hedge of net investment in European foreign operations denominated in euros | €           € 750 € 1,650
Derivative, de-designated, amount | €     € 700        
Net Investment Hedging | Euro-Denominated Debt              
Foreign Exchange Risk Management              
Net foreign currency gain (loss), after tax   $ 309   $ 34      
v3.22.4
Derivative and Hedging Instruments - Fair Value of Company's Derivative Financial Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Foreign Exchange Risk Management    
Notional $ 3,977 $ 3,209
Derivative Assets 108 14
Derivative Liabilities 126 23
Not Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 521 530
Derivative Assets 1 1
Derivative Liabilities 2 8
Cash Flow Hedging | Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 642 206
Derivative Assets 4 7
Derivative Liabilities 15 3
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   6
Derivative Liabilities   8
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 105  
Net Investment Hedging | Designated as Hedging Instrument | Foreign exchange contracts | Prepaid Expenses, Other Current Assets, and Other Current Liabilities    
Foreign Exchange Risk Management    
Notional 1,814 1,473
Derivative Assets 103 0
Derivative Liabilities $ 4 $ 4
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax $ 1 $ 6 $ (189)
Realized gain (loss) on cash flow hedges reclassified from AOCI 10 (5) (4)
Pre-tax, net foreign currency gain (loss) of net investment hedge 177 114 0
Foreign exchange contracts      
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax 1 6 0
Foreign exchange contracts | Net revenue      
Foreign Exchange Risk Management      
Realized gain (loss) on cash flow hedges reclassified from AOCI 16 1 0
Interest rate contracts      
Foreign Exchange Risk Management      
Unrealized gain (loss) on cash flow hedges, before tax 0 0 (189)
Interest rate contracts | Interest expense      
Foreign Exchange Risk Management      
Realized gain (loss) on cash flow hedges reclassified from AOCI $ (6) $ (6) $ (4)
v3.22.4
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, 2022
Dec. 31, 2021
Dec. 31, 2020
Foreign Exchange Risk Management      
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] General and administrative General and administrative General and administrative
Foreign exchange contracts      
Foreign Exchange Risk Management      
Gain (loss) for contracts to purchase and sell foreign currency $ 21 $ (10) $ 40
v3.22.4
Segment Reporting (Narrative) (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting [Abstract]      
Percentage of revenue generated in the U.S. 33.00% 32.00% 33.00%
v3.22.4
Segment Reporting - Schedule of Property, Plant and Equipment, Net by Geographical Location (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net $ 2,006 $ 1,907 $ 1,902
United States      
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net 1,123 1,117 1,185
Other countries      
Schedule of Property, Plant and Equipment, by Geographical Segment      
Property, equipment and right-of-use assets, net $ 883 $ 790 $ 717