What are card schemes?
Card schemes are organisations which define the rules, standards, and infrastructure required to process card payments. They enable transactions between issuing banks, acquiring banks, and merchants.
What do card schemes do?
They set operational rules, manage transaction routing, define fee structures, and ensure interoperability across the payment ecosystem. They also oversee security standards and dispute processes.
What are examples of card schemes?
Major examples include Visa, Mastercard, American Express, and Discover. Each operates its own network with specific rules and fee structures.
How do card schemes make money?
They charge fees such as assessment fees and network fees on transactions processed through their systems.
How do card schemes differ from banks?
Card schemes provide the network and rules, while banks issue cards to consumers or provide acquiring services to merchants.