Card Scheme

What is Card Scheme?

A card scheme is a central network that manages and regulates the use of payment cards. It sets the technical standards, operating rules, and fee structures that all participating banks and merchants must follow.

Major schemes like Visa and Mastercard operate as four-party models, connecting issuers and acquirers. They ensure that payments are processed consistently and securely regardless of which bank issued the card.

Why It Matters

• Ensures global interoperability of payment cards across different countries

• Sets the rules for how disputes and chargebacks are handled

• Maintains the security standards that protect the entire payment ecosystem

• Determines the interchange rates that drive the cost of processing