Why Don’t Banks Issue Cards Without Visa and Mastercard?

Credit cards are now an integral part of our lives. However, behind these payment tools we use what’s going on Many of us don’t know.

Most of us can now make payments with a single move, without even having to enter a password, with the cards we received from our bank that have the Mastercard or Visa logo on them. But behind this process is actually It’s a pretty complicated process contains.

Before getting into the subject, let’s briefly get to know Visa and Mastercard companies.

Headquartered in America Visa, One of the world’s largest payment technologies companies. Visa, which acts as an intermediary between banks and customers, is used in 200 countries and regions.

A company based in the USA If it’s Mastercard, Its rival provides payment systems for credit cards such as Visa. Mastercard, one of the first systems to offer the chip payment system to its customers, is used in a total of 210 countries and regions.

Although these two companies have competitors such as Discover Financial and American Express, they are not the same in terms of dual payment systems. Dominating your rivals They hold a large portion of the market share.

So let’s get into it now. These seemingly simple cards are actually part of a very complex payment ecosystem!

Companies such as Visa and Mastercard, A very complex payment infrastructure has.

This complex infrastructure they use allows banks to provide A faster and safer card using experience helps present it.

For this reason, instead of establishing this infrastructure themselves, banks use the infrastructures of organizations such as Visa or Mastercard. saving both time and resources they do.

The mediation of these companies prevents possible confusion in international transactions.

A bank uses Visa or Mastercard to manage international credit card transactions. must use the infrastructure.

In this way, Visa and Mastercard standards between banks in international transactions determination facilitates transaction processes.

Banks creating a payment network on their own will be complex and costlyIt is much safer and easier for both banks and customers to use the infrastructure offered by these companies.

worldwide They are preferred by banks because they are widely accepted.

Visa and Mastercard are payment systems used almost everywhere in the world, except for closed economies such as China.

In this way, already created and Accepted by many banks in various countries Using these payment systems is more efficient for both consumers and banks.

Because if a bank issues a credit card with its own payment system, the probability of this card being accepted is low because a payment network connected to that bank cannot be everywhere. will be much lower.

For example, especially in movies or maybe in your daily life, you definitely “We do not accept American Express.” You may have heard the expression. In order to avoid the situation where the cards they issue are not accepted everywhere, banks cooperate with these two companies that dominate the sector. They are cooperating.

Finally, since they are very large and well-established companies, they use advanced security measures.

These companies protect credit card transactions with measures such as fraud detection systems and security protocols. in the most secure way and in a way that minimizes the risk of fraud They manage.

Providing these services by banks is quite It is difficult and costly. For this reason, banks prefer to use the services of these companies rather than using their own payment systems.

To summarize, banks prefer payment networks such as Visa or Mastercard instead of issuing credit cards on their own because they offer infrastructure, acceptability, international transaction capability and security Features such as these provide significant advantages to banks.

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