Card scheme: Difference between revisions

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{{more citations needed|date=July 2021}}

'''Card schemes''' are payment networks linked to [[payment cards]], such as debit or [[credit card]]s, of which a [[bank]] or any other eligible [[financial institution]] can become a member. By becoming a member of the scheme, the member then gets the possibility to issue cards or [[Acquiring bank|acquire]] merchants operating on the network of that card scheme.<ref name="4CornersmodelRupp">{{cite web |last1=Rupp |first1=Martin |title=Cardholder, Merchant, Issuer & Acquirer - The Four Corners Model for Payment Security and Key Management |url=https://www.cryptomathic.com/news-events/blog/cardholder-merchant-issuer-acquirer-the-four-corners-model-for-payment-security-and-key-management |publisher=Cryptomathic |date=April 22, 2021}}</ref><ref name="Fédération Bancaire Française">{{cite web |last1=Études et activités bancaires et financières |title=An interbank payment card system for the benefit of all |url=http://www.fbf.fr/en/files/94VLEX/Interbank-payment-card-system-24012013.pdf |publisher=Fédération Bancaire Française |date=January 2013 |access-date=2021-05-17 |archive-date=2013-09-25 |archive-url=https://web.archive.org/web/20130925005126/http://fbf.fr/en/files/94VLEX/Interbank-payment-card-system-24012013.pdf |url-status=dead }}</ref>

[[UnionPay]], [[Visa Inc.|Visa]] and [[Mastercard|MasterCard]] are three of the largest global brands, known as card schemes, or card brands. In recent years domestic card schemes such as AfriGo([[Nigeria]]), Cartes Bancaires([[France]]), [[Dankort]]([[Denmark]]) and [[RuPay]]([[India]]) have emerged, competing with the global brands. Billions of transactions<ref name="Number of purchase transactions 2020">{{cite web |last1=de Best |first1=Raynor |title=Number of purchase transactions on global general purpose card brands |url=https://www.statista.com/statistics/261327/number-of-per-card-credit-card-transactions-worldwide-by-brand-as-of-2011/ |publisher=Statista |date=July 2021}}</ref> go through their cards on a yearly basis.

==Types==

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[[File:card schemes4.jpg|thumb|left]]

In a four-party scheme (also referred to as [[Four Corners Model for Payment Security|Four Corners Model]]), the issuer and acquirer are different entities, and this type of scheme is open for other institutions to join and issue their own cards. This is the type of card scheme used by [[brand]]s such as [[Visa Inc.|Visa]], [[Mastercard]], [[Verve Card]], [[UnionPay]], AfriGo and [[RuPay]]. There are no limitations as to who may join the scheme, as long as the requirements of the scheme are met.

==Processes==