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Banking & Payments

Card Network

Also called: Visa, Mastercard, card scheme, four-party model

A card network runs the rails between the bank that issued your card and the bank that serves the merchant, setting the rules and the interchange rates. It's a four-party model — cardholder, issuer, acquirer, merchant — with the network in the middle. Networks take a small fee on enormous volume, which makes them among the highest-margin businesses in finance.

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