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[[File:card schemes3.jpg|thumb]]
A three-party scheme consists of three main parties, as described in the adjacent diagram.
In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the merchant)
Examples of this setup are [[Diners Club]], [[Discover Card]], and [[American Express]], although in recent times these schemes have also partnered with other issuers and acquirers in order to boost their circulation and acceptance, and Diners Club now operates as a four-party scheme in many regions.<ref>{{Cite web |last=Laurer |first=Christoph |date=2022-03-10 |title=How Online Card-Based Payments Function |url=https://trimplement.com/blog/2022/03/online-card-based-payments/ |access-date=2023-05-24 |website=trimplement blog |language=en-US}}</ref>
===Four-party scheme===
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==Processes==
The card scheme utilizes the respective [[guideline]]s<ref name="Mastercard Rules">{{cite web |last1=Summary of changes 2020 |title=Mastercard card scheme - Rules and guidelines |url=https://www.mastercard.us/content/dam/mccom/global/documents/mastercard-rules.pdf |publisher=Mastercard |date=December 2020 |access-date=2021-08-23 |archive-date=2021-08-23 |archive-url=https://web.archive.org/web/20210823112149/https://www.mastercard.us/content/dam/mccom/global/documents/mastercard-rules.pdf |url-status=dead }}</ref><ref name="Visa Rules">{{cite web |last1=Visa core rules 2021 |title=Visa card scheme - Product and service rules |url=https://sr.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf |publisher=Visa |date=April 2021}}</ref> to process the card exchange data from the acquiring to the [[issuing bank]], and vice versa, until the [[payment]]<ref name="Payments industry ecosystem 2021">{{cite web |title=The payment industry's biggest trends in 2021 |url=https://www.insiderintelligence.com/insights/payments-ecosystem-report/ |publisher=Insider Intelligence |date=July 2021}}</ref> is fully completed (or denied). Credit and [[debit card]]s work with a four-party scheme, completing an open-circle framework that permits consistent flow of transactions; thus, allowing the banks to handle the whole process.
Card schemes aim to make the transaction convenient and automated for all parties involved in the loop, with the core belief that [[Customer|clients]] end up spending more than intended when the payment process is simple.
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===Merchant===
Any business, or individual, that receives payment based on the product or service, which they offer.
===Payment processor===
The [[Payment processor|payment processing company]] imparts and transfers data for a client's credit or debit card to both the issuing and acquiring bank. The processor likewise checks for security issues, ensuring that the client's card information is right, and all data is entered correctly. Also, the same party deals with incorrect or accidental charges.
===Payment gateway===
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===Interchange fees===
[[Interchange fee]]s<ref name="Interchange fees between the UK and EEA">{{cite web |title=Mastercard and Visa - revisions to interchange rates between the UK and the EEA |url=https://www.bambora.com/news/mastercard-and-visa-announce-changes-to-interchange-fees-between-the-uk-and-the-eea/ |publisher=Bambora |date=May 2021}}</ref> (or trade fees) are transaction charges that the acquiring bank pays when a payment is being processed via debit or credit card. The expenses are paid to the issuing bank and cover costs, such as processing fees, [[bad debt]], and charges due to risk and potential [[Fraud|fraudulent activities]].
== References ==
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