The bank or processor that holds the merchant relationship and accepts and processes card transactions on the merchant's behalf. The acquirer pays interchange to the issuer and pays network (scheme) fees on the acquiring side. See also: Issuer, Interchange, BIN sponsor.
A principal member of the card networks that sponsors a third party, such as a fintech or program manager, onto a network using the sponsor's license and Bank Identification Numbers (BINs). The BIN sponsor carries the network membership and compliance obligations, and network (scheme) fees often flow through it to the sponsored program. See also: Issuer, Acquirer.
Card networks, often referred to as card schemes outside the US, are the rule-setting organizations that operate the infrastructure enabling card payments. US payments professionals usually say "card network." In the UK, Europe, Australia, and elsewhere the same entity is called a "card scheme," which is why the fees it charges are called scheme fees in those markets. See also: Network (Scheme) Fee, Scheme Fee.
Fee pass-through refers to the process by which acquirers, ISOs, or BIN sponsors recover network (scheme) and other card-related fees from their clients or merchants.
The honor-all-cards rule is a card network policy that requires a merchant accepting a card brand to accept all card types within that brand.
Interchange is a transaction-level fee paid by the acquiring bank (a fee) to the issuing bank (as revenue) when a card payment is processed.
Interchange yield represents the effective interchange revenue earned on processed payment volume for a portfolio or segment.
The bank or credit union that issues cards to cardholders and holds the cardholder relationship. On each transaction the issuer receives interchange and pays network (scheme) fees on the issuing side. See also: Acquirer, Interchange, Network (Scheme) Fee.
A merchant pricing model defines how payment acceptance costs and revenues are structured, including blended pricing, interchange-plus pricing, and other variants.
Monitoring programs are network-defined performance frameworks that measure issuer and acquirer behavior against thresholds related to fraud, disputes, or abuse.
Network (scheme) compliance is the ongoing process of interpreting, implementing, tracking, and validating card network rule changes, fee updates, and technical requirements.
Network (scheme) cost allocation refers to the process of assigning card network fees and related costs to clients, merchants, or issuing programs consistently.
Network (scheme) fees are charges assessed by card networks for use of their infrastructure and services.
Network (scheme) fee optimization is the process of examining network invoices, fee structures, and optional services to identify discrepancies, unnecessary costs, and potential errors.
A network incentive agreement is a contractual arrangement between a card network and an issuer or acquirer that provides financial incentives in exchange for meeting specific volume, growth, product, or behavioral commitments.
Optional network (scheme) services are fee-based services offered by card networks that are not required for basic transaction processing.
The non-US name for network fees. In markets that call a card network a "scheme" (the UK, Europe, Australia, and elsewhere), the fees the network charges issuers and acquirers are called scheme fees. They are the same charges as US network fees and cover the same components: assessments, access and processing fees, and service and behavioral fees. A Mastercard scheme fee and a Mastercard network fee are two names for the same charge. See also: Network (Scheme) Fee, Interchange, Card Network.
Our team of seasoned experts is here to help you gain control of your payment card costs. Let us show you how CardTraq can optimize your compliance and network fee management to deliver significant savings.
Book a demo or contact us for a personalized consultation.