Card Network

Card networks, also known as card brands or card associations, are organizations responsible for establishing and managing the infrastructure that supports credit card transactions. These networks set the rules, standards, and technologies that ensure the security and reliability of credit and debit card transactions globally. Major card networks in the United States include Visa, Mastercard, American Express, and Discover.

Visa and Mastercard do not issue cards directly; instead, they rely on member financial institutions (like banks and credit unions) to issue cards, extend credit, and manage customer relationships. These networks primarily provide the backbone for transaction processing, handling the authorization, clearing, and settlement of transactions.

American Express and Discover, on the other hand, operate somewhat differently by serving both as card issuers and card networks. This means they not only manage the network for processing transactions but also directly issue cards to consumers, oversee accounts, and handle customer service and billing. This dual role allows them to have a more direct relationship with cardholders and provides them with greater control over their card policies and terms.

Card networks are integral to the functionality of the global payments ecosystem, facilitating seamless financial transactions across different countries and currencies, and ensuring that merchants can accept payments efficiently and securely.