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Diners Club alliance with Master Card

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edcba

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Apr 27, 2004
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Does anyone have any idea what this will mean for Australian Diners Club cardholders?


Diners Tries A Lifeline: Allies For Acceptance With MasterCard

By Jay Boehmer

APRIL 26, 2004 -- Following years of dwindling volume, declining marketshare and what sources described as internal strife, the Citigroup-owned North American franchise of Diners Club—the forefather of the modern charge card—is forging an acceptance alliance with competitor MasterCard.

Diners Club North America and MasterCard International last week confirmed they are "pursuing an alliance in order to provide enhanced global acceptance to Diners Club North America cardmembers," according to a joint statement given to Business Travel News.

Although there are no changes to the Diners Club offering yet, and cardholders can continue to use the card, Diners will issue cards in North America that "carry the MasterCard brand" and can be accepted wherever MasterCard is accepted, the statement said. "In addition, Diners Club cards issued by Diners Club International franchises around the world would carry the MasterCard identifier on the back of the card, indicating acceptance at merchants in the U.S. and Canada that accept MasterCard credit cards."

MasterCards, however, will not be accepted by merchants that accept Diners Club. MasterCard and Diners Club would not comment further on the deal, which sources said is expected to close and take hold by year-end. Financial arrangements between MasterCard and Diners Club, as well as which card supplier will provide reporting to clients, are not yet clear.

One source said the setup would be "a tiered kind of thing, where if Diners was accepted it would go through their authorization and payment process. If it was not accepted, then it would automatically default to MasterCard."
 
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