Payment Network

A payment network is an interconnected system consisting of various financial institutions, including banks, payment processors, and other entities that collaborate to facilitate and manage payment transactions. This network plays a pivotal role in the modern economy by enabling electronic payments, which are essential for the smooth operation of commerce both online and offline.

The primary functions of a payment network include:

Examples of major payment networks include Visa, MasterCard, American Express, and Discover. These networks are integral to facilitating global commerce, offering infrastructure and services that enable merchants to accept payments from a broad base of consumers, while also providing consumers with flexible and secure payment options.