A card scheme refers to the framework established by financial institutions and payment networks for issuing and processing payment cards, such as credit, debit, or prepaid cards. These schemes govern how transactions are conducted, including the rules and procedures for card issuance, acceptance, and transaction processing.
Major card schemes include Visa, MasterCard, American Express, and Discover. Each scheme has its own set of guidelines for merchants, cardholders, and financial institutions, ensuring standardized processes across various stakeholders. For example, they outline how fees are structured, transaction security measures are implemented, and dispute resolution processes are handled.
Card schemes are essential in the payment ecosystem, enabling electronic payments and facilitating consumer access to funds. They help ensure that transactions are secure, efficient, and interoperable across different merchants and payment locations. Overall, card schemes play a crucial role in shaping how consumers and businesses engage in financial transactions.
