Card Associations

Card Associations

A card network (sometimes called a card association) is an organization that facilitates payment card transactions. It regulates who, where, and how cards are used.

Visa and Mastercard aren’t banks and they don’t issue credit cards or merchant accounts. Instead, they act as a custodian and clearing house for their respective card brand. A bank card association is an organization owned by?financial institutions that licenses bank credit card programs.?

The primary responsibilities of the Card Association are to govern the members of their associations, including fees.

Card associations are organizations such as VISA and MASTERCARD that, along with the government, make the rules in regard to the acceptance of credit cards. ?These rules include fees that are charged for interchange. ?American Express and Discover are different cases. ?They are both the issuer and acceptors, and Merchants must have a separate agreement with them. ?This may change as soon as current litigation is resolved.

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