What is a three-party scheme?
A three-party scheme is a payment model where the card issuer and acquirer are the same entity, along with the card network.
How does a three-party scheme work?
The same organisation issues the card, processes the transaction, and settles funds with the merchant.
What are examples of three-party schemes?
American Express and Diners Club are common examples.
How does it differ from a four-party scheme?
In a three-party scheme, there are fewer participants, and the network is closed, while four-party schemes involve separate issuers and acquirers.
What are advantages of three-party schemes?
They offer greater control over the payment process and customer experience, though acceptance may be more limited.