When one is talking about the way money moves throughout the world, they cannot leave out the importance of networks; specifically credit card networks. When you pay with your card during a transaction, the network will function to send that information where it needs to go as quickly as possible. This network can approve your card, deny it, ask for a signature, and more depending on your situation and your card. But how does this network function, and who are the big names in the world of credit card networks? To learn about this information in detail, we here at Payeex are gladly here to help.
The Big Four
Before we get into exactly how credit card networks function, we should discuss the big names in the world of credit card networks. These include:
- American Express
- Discover
- Visa
- Mastercard
While there are hundreds of thousands of other credit card networks out there, each with their own purpose and function, these are the ones that carry the most weight and generally process the most transactions around the globe. Chances are you’ve heard at least one of the brand names mentioned above, and there’s likely an even bigger chance that you own a card under one of those brands right now.
How They Work
In simplest terms, credit card networks are the vital components in transferring funds from the cardholder to the merchant (and back, if needed). When you buy something using a credit card, payment processing companies use a network to communicate the info from the transaction to the financial institution that issued your card.
Networks do more than just make transactions fast and easy, however— when needed, networks help monitor and and prevent transactions that are fraudulent. In order for networks to collect payments, they will often set interchange fees. These fees are split by a number of different parties.
Networks vs. Issuers
Whilst networks function to transfer information safely and effectively, credit card issuers are the companies who offer cards to businesses and consumers alike. As an issuer, they can determine certain parameters such as who qualifies for said card, the fees of said card and the rewards it comes with. American express and discover, for example, are both companies that provide you with a network but can also provide you with a card.
How We Can Help
Here at Payeex, we help businesses reach their payment processing goals. With the help of our company we offer affordable, efficient payment solutions that are sure to be reliable and there for you when you need it most. If you’re interested in learning more about our credit card processing services + products, be sure to call our team at (905) 947-9818 today!