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I realized that I've been sloppy in my posts by using "credit card companies" (like Visa and Mastercard) and the banks that issue credit cards (i.e. Chase) interchangeably. What services do the credit card companies provide that are separate from what the issuers provide? Where does the line get drawn? |
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There are two major aspects of a credit or debit card. There must be a payment network, where the electronic transactions occur when you swipe a card. There must also be a bank supplying the funds being transferred. The network company normally only deals with network-related services like theft/fraud and merchant relations. They need an card-issuing bank to either supply the card with a credit line (credit card), or a deposit bank account (debit card). The issuing bank is who deals with payment and collections. Then there are basically three main categories of credit/debit cards:
Great answer. That's very clear. Thank you!
(Jan 22 at 03:35)
mbhunter ♦♦
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