December 22, 2020

Details about the major players in the card transactions!


In recent years credit card purchases have become convenient to all range of people as of that all the technology also upgraded. Take card payments on the go for the best purchasing results. This article explains about the card works and the key players involve in this whole process.

Who are the key players of online transactions:

If we want to know about the key players then it is necessary to take a detailed look at five different players those are,

Cardholder – The purchaser is the cardholder, we all have the card and also we can simply understand what will the role of the card holder. But to know thoroughly, a cardholder is the one who has the bankcard either it can be a debit or the credit cards, this usually issued by the banks. When the cardholder needs to pay in the business for the goods and services they can use the card numbers and make their payments.

Merchants – Systematically merchant means who sells or supplies goods and services in any kind of business. But the merchants who only accept cards for the form of the transaction are pertinent for this explanation. In short, here merchant can be in any kind of business with allowing the card transactions for selling their goods to the customers. They have a separate merchant account to get their payment in their account.

Merchant or acquiring bank – The registered holder of the card’s association such as a visa or the master card called a merchant bank or an acquiring bank. This bank deals with the merchants or the business person and having a contract for their account to accept the credit and debit cards for their business transactions. Acquiring banks give software and account with equipment to handle the customer’s cards and that will accept all the debit and credit card for the purchase.

Many of the providers do not recognize that their merchant banks are the primary providers for their account. These banks play a hands-off role increasingly where the bankcard method evolves. These help the merchants by enlisting ISO [independent sales organization] of the third party. Along with that, they monitor all the activities in that account for the MSP [membership service providers].

Cardholder bank – Probably we know what is cardholder bank, the bank which issues the card to its customer is the issuing bank. This bank is also part of the card association. This bank pays for the acquiring bank on the behalf of the cardholder. If the cardholder is paying the amount by using the credit card they have to pay back to the issuing banks, or if they pay by using the debit card the amount will be automatically debited from the respected savings of the customer.

Credit or debit card association – This card association is not a bank, they act as a clearinghouse for card purchasing. They provide the quality guidelines and the charges to the banks which help to maintain and improve the network and the brands. Not all the countries having this association some of the developing countries get help from the developed countries to main their card processing. Master card and visa are the association to handle all these services under different terms.

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