Maria Adams, Credit Cards Moderator
@m_adams
A credit card network mainly authorizes and processes credit card transactions, as well as determines where credit cards can be used. There are only four major credit card networks in the U.S. (Visa, Mastercard, American Express, etc.) and some of them, like American Express, are also credit card issuers.
When you make a purchase using a credit card, payment processors use a card network to communicate transaction information between the merchant's bank and the credit card company that issued your card. The card networks also offer benefits to cardholders, and help monitor and prevent fraudulent transactions.
How Credit Card Networks Work
- Facilitate transactions between the merchant and the issuer of a credit card.
- Decide where credit cards can be used.
- Provide supplemental benefits like travel insurance or purchase protection.
- Monitor transactions and work on fraud prevention.
- Create rules for credit card manufacture and usage.
It’s also worth noting that Visa and Mastercard are the two largest card networks, boasting a significant advantage in terms of worldwide acceptance. More specifically, they are accepted by more than 10.7 million merchants in the U.S. and more than 200 countries and territories, internationally.
People also ask
What is the best credit card network?
The best credit card network is a tie between Visa and Mastercard, when judged based on network size and merchant acceptance, both domestically and worldwide. Secondary benefits are another point of judgment, in which Visa and Amex win. But when judged on foreign transaction fees, Discover wins. So, which card network is best depends on which of these qualities benefits you most.
Acceptance
Mastercard has a slight acceptance advantage internationally. It’s accepted in 210+ countries and territories compared...
read full answerWhat is the difference between a credit card issuer and a credit card network?
The difference between a credit card issuer and a credit card network is what functions each serves. A credit card network mainly facilitates transactions and determines where cards can be used, while an issuer provides cards to consumers and chooses cards’ terms, requirements and perks.
There are only four major credit card networks in the U.S.: Visa, Mastercard and American Express. But there is a multitude of credit card issuers – any bank or...
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