Card Networks: Visa and Mastercard
Learner explains how Visa and Mastercard networks operate, including authorization, clearing, interchange, scheme fees, and settlement, and compares the two networks for a merchant. Learner applies this skill in realistic banking scenarios, with clear examples and correct terminology throughout.
Card networks Visa and Mastercard: how they authorise, clear and settle card payments.
What You Can Do After This Chapter
Learning objective. Learner explains how Visa and Mastercard networks operate, including authorization, clearing, interchange, scheme fees, and settlement, and compares the two networks for a merchant. Learner applies this skill in realistic banking scenarios, with clear examples and correct terminology throughout.
Practical assessment. Learner traces a 200 dollar Visa purchase and a 200 dollar Mastercard purchase from authorization to settlement, naming the network message and fee at each step. Learner then calculates the total cost to the merchant for each network given stated interchange and scheme fees, and recommends one network for a high-volume low-value merchant with reasons. Learner submits all work with sources, calculations, and assumptions stated clearly, and reviews the result against the chapter checklist before submission.
Expected deliverables.
- Visa transaction trace
- Mastercard transaction trace
- Merchant cost calculation for both networks
- Network comparison and recommendation
Completion criterion. Learner traces both networks correctly, calculates both merchant costs accurately, and justifies the recommendation with volume and value reasoning. Completion is judged on accuracy, completeness, and clear written explanation throughout.