Card networks, also known as card associations or card brands, are the companies that act as the governing bodies and intermediaries between acquiring banks and issuing banks. The most well-known card networks are Visa, Mastercard, American Express, and Discover. They set the rules for transactions, manage the flow of information, and maintain the networks that payments travel on.
Frequently Asked Questions (FAQs)
- Do the card networks process payments?
No, they don’t handle the money themselves. Their primary role is to facilitate the communication and authorization between the merchant’s bank and the customer’s bank. The actual funds are moved by the banks and processors. - Why can’t I accept cards without going through a network?
The networks own the payment rails and have established the trust and infrastructure required for global card acceptance. To accept a Visa card, you must follow Visa’s rules and use their network. - Do card networks charge fees?
Yes, they charge assessment fees on every transaction. These fees are very small but are included in the overall transaction fee that a merchant pays.
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