Infrastructure
Card Network
Definition
Card Network organizations that operate payment card networks and set rules for card acceptance. The major networks are Visa, Mastercard, American Express, and Discover. Networks set interchange rates, define operating regulations, manage dispute processes, and run the infrastructure connecting issuers and acquirers. Amex and Discover operate as both network and issuer for their cards.
Related Terms
Scheme Fees
Fees charged by card networks (Visa, Mastercard) for various services beyond the basic assessment. Includes authorization fees, clearing fees, cross-border fees, data usage fees, and program fees. Scheme fees have grown significantly in recent years and can add 0.1-0.3% to transaction costs depending on geography and transaction characteristics. Often bundled or passed through as part of IC++ pricing.
Interchange Fee
The fee paid by the acquiring bank to the issuing bank each time a card transaction is processed. Set by card networks (Visa, Mastercard), interchange varies based on card type (debit vs credit, rewards vs standard), merchant category code, transaction type (card-present vs card-not-present), and geography. Interchange typically represents the largest component of payment processing costs, ranging from 0.2% for regulated debit to 2%+ for premium rewards cards.
Assessment Fee
A fee charged by card networks (Visa, Mastercard, Amex) on every transaction for using their network infrastructure and brand. Also called scheme fees or network fees. Assessment fees are typically a small percentage of transaction volume (0.13-0.15% for Visa/Mastercard) plus per-transaction fees. Unlike interchange which goes to issuers, assessments go directly to the card networks.
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