Payment Network

A payment network is a system that connects banks, credit card companies, and merchants to facilitate electronic transactions. When you make a purchase with a credit or debit card, the payment network securely transfers your payment information between your bank (the issuer), the merchant’s bank (the acquirer), and the merchant. It ensures the transaction is authorized, funds are transferred correctly, and security standards are maintained. Examples include Visa, Mastercard, and American Express. Essentially, payment networks act as the digital infrastructure that makes quick, safe, and reliable electronic payments possible worldwide.