Navigating the Payment Industry Alphabet - V is for "Visa and Other Payment Networks"

V is for Visa. BUT, I have to include the others payment networks too! Do you remember when we used to call them "card associations"! 😀

When we talk about Visa, Mastercard, Discover, and American Express, we are referring to the major payment networks (card brands) that power global card transactions. These networks provide the infrastructure and rules that enable secure, interoperable payments between issuers, acquirers, merchants, and consumers.

Here’s what they do:
* Set operating rules and compliance standards for members.
* Facilitate transaction routing between banks and processors.
* Manage interchange fees and settlement processes.
* Monitor fraud and enforce risk programs (e.g., MATCH list, VAMP).

Here's what they do not do:
* Approve purchases
* Hold merchant money
* Move funds between accounts
* Issue cards (except Discover and American Express - see below)

Key distinctions:
* Visa and Mastercard: Operate as open-loop networks, cards are issued by partner banks, and acquiring is handled by separate institutions.
* Discover and American Express: Often operate as closed-loop networks, acting as both issuer and network, which means they have direct relationships with cardholders and merchants.

From a compliance standpoint, these networks:
*Require PCI DSS compliance for data security.
*Enforce chargeback rules and fraud thresholds.
*Maintain registration requirements for Acquirers and their downstream service providers, along with high risk merchants.

🔍 Key takeaway: These card networks aren’t just logos on a card, they are the rule-makers and infrastructure providers that keep global payments secure and standardized.