What a Card Network Actually Does
Behind every tap, chip or online checkout, a card network connects your bank and the merchant. This page explains how that network is structured, who gets paid, and why it matters for fees, protections and where your card is accepted.
Compare cards at the main hubWhat Is a Card Network?
A card network is the infrastructure that carries payment messages between the bank that issued your card and the financial institution that serves the merchant. It defines technical standards, routing rules and many of the protections that apply when something goes wrong.
When people talk about “which network” a card runs on, they usually mean which brand and ruleset sits in the middle of the transaction — not which bank issued the plastic or digital card you hold.
How a Card Payment Flows Through the Network
Even a simple tap at a terminal involves several steps:
- 1. Authorisation request: The merchant’s terminal sends a request through their bank or payment provider into the card network.
- 2. Routing to issuer: The network identifies your issuing bank based on the card number and forwards the request.
- 3. Approval or decline: The issuer checks balance, limits, fraud signals and either approves or declines.
- 4. Response back to merchant: The decision is routed back through the network so the terminal can show “approved” or “declined”.
- 5. Clearing & settlement: Later, the transaction is “cleared” and funds move from issuer to acquirer, minus network and interchange fees.
The card network doesn’t usually lend you money directly. Instead, it enforces rules and connects participants so issuers, acquirers and merchants can interact at global scale.
Who’s Involved in a Networked Card Payment?
Several different actors sit behind a single card swipe or tap:
| Role | What They Are | What They Do | Why It Matters for You |
|---|---|---|---|
| Cardholder | You, the person using the card. | Initiates the transaction by tapping, inserting or entering card details. | Your behaviour (spend, repayment, disputes) shapes risk and available products. |
| Merchant | The shop, airline, website or service provider. | Accepts card payments using a terminal, POS or online gateway. | Merchant category can affect rewards, fees and how transactions are coded. |
| Acquirer | The merchant’s bank or payment provider. | Signs up merchants, provides terminals and connects to card networks. | Helps determine which cards are accepted and what the merchant pays in fees. |
| Issuer | The bank or fintech that issued your card. | Extends credit (for credit cards), sets your limit and manages your account. | Controls interest rates, statement rules, rewards and fraud handling. |
| Card Network | The scheme that sits in the middle. | Routes authorisations, defines rules, sets some fee frameworks and protections. | Affects global acceptance, chargeback rights and sometimes dispute timelines. |
The exact roles and contracts can vary, especially with modern payment aggregators and wallets — but the network remains the backbone that ties them together.
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Part of The CreditCard Collection
Network.Creditcard belongs to The CreditCard Collection — a network of focused minisites by ronarn AS. Each site explains one piece of the card ecosystem. This one focuses on how networks connect issuers, acquirers, merchants and cardholders.
We do not operate a card network or issue cards. Content is based on typical industry structures and public documentation, and may differ from how any single provider works in detail.
Nothing on this page is personal financial advice. Always refer to your issuer’s and payment provider’s official terms for binding information.
From Network Mechanics to Real Card Choices
Use Network.Creditcard to understand the rails beneath your card — then visit the main comparison hub to see how different products line up on fees, protections, rewards and technology.
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