Payment

History of payments

• What year was the first credit card launched? 1966

Four-party model

Merchant

Acquirer

• The interface between merchants & networks
• Payment of interchange
• Settles card transaction
• Collects merchant service charge (MSC)
• Sign up & services merchants
• Accepts (some) risk

Issuer

• Provides customers & sales to merchants
• Issues cards
• Settles cardholder debt
• Extends credit or manages funds
• Collects payments
• Bills cardholders

Cardholder

Network

• Manage card brand (VISA, MasterCard)
• Client-focused
• Expand payment acceptance
• Collect fees
• Establish & maintain rules
• Maintain card settlement networks

VISA