The Key Role of 3 Bank Card Associations in Your Life

The 3 credit card networks refer to VISA, Master and American Express. Every day they process hundreds of millions of dollars. According to the VISA’s earning release and annual report in 2Q17, it processed transactions were 28.5 billion.

They play an indispensable role in your life. I use credit cards 40 or 50 times a month, include purchasing on the store and online.These transactions are processed by the 3 bank card associations.

Without them, I can’t imagine how my life would be. 

VISA, Master and American Express play a key role in transactions

Bank card associations build nationwide and even global networks to allow the timely exchange of information between banks and banks. Provide transaction authorizations and clearing/settlement services at any time to process your transactions.

Without the 3 credit card networks, banks can’t complete the information exchange. You won’t be able to use a credit card just like today, only in your city or state.

For example, travel to Rome. On a sunny day, you and your family travel to Rome. After paying by VISA credit card, enjoy the outdoor swimming pool of the hotel and rest, prepare to go out to enjoy the local customs.

In this simple payment, VISA authorized this hotel for the transaction.At the end of the transaction, VISA pays the euro to the hotel and charges you the dollar through your issuing bank.

If you spend $100, the card issuing bank and the merchant bank both charge $1.5. And then VISA charges the two banks.Credit cards make life easier for you, but they also motivate you to impulse buying. So look after your wallet.

Without credit card networks, merchants can’t get transaction authorization. You won’t be able to buy easily. You can only take cash with you. Without credit card networks, credit cards can’t be so popular.

You may not be able to get a revolving line of credit. You can only go to the bank in person and fill out a complicated loan application and wait a long time.

Check out our other articles.

The Key Role of 3 Bank Card Associations in Your Life