International Credit Card Companies

Credit cards were invented in 1949. Today, MasterCard and Visa are the most well-known international credit card companies in Europe and their cards are accepted in more than 24 million outlets worldwide. American Express markets itself as a provider of premium credit cards (with additional services and offers). Credit card companies coordinate the various parties which deal with credit cards and ensure data and money is processed correctly.

The Payment Process

Various parties are involved in processing credit card payments. Payments are usually administered through a so-called four-party system, which involves the following companies:

The Customer/Cardholder

Cardholders use their credit cards to buy products and services or to withdraw money. They enter an agreement with the vendor and have a contract with the card issuer.

The Vendor

The vendor accepts the credit card payment for a product or service. S/he enters an agreement with the customer and has a contract with the acquirer, who makes the payment.

The Acquirer

The acquirer has contracts with vendors and service providers to accept credit cards and processes the payments. S/he contracts some of the technical payment processing out to specialist third-party firms. The acquirer has contracts with vendors, international credit card organizations and some card issuers.

The Card Issuer

The issuer issues credit cards to customers and collects payments. S/he contracts some of the technical payment processing out to specialist third-party firms.

Process diagram

More information

Comparis - Comparison and Evaluation of Credit Cards

Mastercard

Visa

American Express

Viseca

Swisscard

GE Money Bank

Cornèr Bank

UBS