Behind every tap, swipe, or card-not-present transaction lies an intricate system of players working in harmony. While card payments may appear seamless to consumers, they depend on a layered ecosystem involving banks, networks, processors, and platforms—each with distinct responsibilities and revenue models.
Let’s peel back the curtain on the five key players in the card payments ecosystem.
💳 𝐈𝐬𝐬𝐮𝐞𝐫𝐬
Who they are: Banks or financial institutions that issue cards to consumers.
► Key Functions:
- Underwrite and approve new cardholders
- Furnish credit, debit, or prepaid cards
- Authorize and clear transactions in real time
► How They Make Money:
- Interchange fees
- Annual card fees
- Interest on revolving credit
- Foreign exchange (FX) markups
► Examples:
Citi, UBS, ING, TD, Deutsche Bank, Chase
🏦 𝐀𝐜𝐪𝐮𝐢𝐫𝐞𝐫𝐬
Who they are: Banks or processors that enable merchants to accept card payments.
► Key Functions:
- Set up and manage merchant accounts
- Process card transactions and settle funds
- Handle chargebacks and manage fraud
► How They Make Money:
- Per-transaction processing fees
- Gateway and service charges
- Value-added services like fraud tools and analytics
► Examples:
Checkout.com, Worldpay, Nuvei
🔗 𝐂𝐚𝐫𝐝 𝐍𝐞𝐭𝐰𝐨𝐫𝐤𝐬
Who they are: The infrastructure providers that connect issuers and acquirers.
► Key Functions:
- Route transaction requests
- Establish dispute resolution protocols
- Set interchange and assessment fees
- Manage branding and global acceptance
► How They Make Money:
- Scheme and assessment fees
- Cross-border charges
- Fraud liability assessments
► Examples:
Visa, Mastercard, American Express, GIE Cartes Bancaires
𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐆𝐚𝐭𝐞𝐰𝐚𝐲𝐬
Who they are: Secure portals that transmit transaction data to acquirers.
► Key Functions:
- Route transactions to the right processor
- Offer fraud prevention, 3D Secure (3DS), and retry logic
- Provide reporting and reconciliation tools
🔐 Tokenization Note:
Tokenization may be performed by third-party vaults (e.g., VGS), the acquirer (e.g., Checkout.com), the gateway (e.g., DEUNA), or even by the merchant.
► How They Make Money:
- Monthly platform subscriptions
- Per-transaction fees
- Revenue-sharing models
► Examples:
DEUNA, CellPoint Digital, Amadeus
𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐨𝐫𝐬
Who they are: Platforms that consolidate multiple payment services, often serving SMEs and digital-first merchants.
► Key Functions:
- Act as the Merchant of Record (MoR)
- Aggregate transactions under one Merchant ID (MID)
- Manage merchant onboarding, risk, and settlements
► How They Make Money:
- Higher per-transaction margins
- Managing float and reserves
► Examples:
Paddle, Stripe, PayU, BillDesk