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A card scheme uses its rules to transfer the card transaction information from the acquiring bank to the issuing bank (from the merchant to the consumer). It then passes the payment back to the acquirer to confirm the payment.
Credit and debit card schemes work with four parties. Together, these four parties make up an open-loop system that allows consumers to purchase items or services from merchants by letting the banks do all the work on their behalf.
When you buy a product or service from a shop (called a merchant) with your card, the details of the transaction is transferred to the acquirer which then contacts the relevant card scheme (eg Visa / Mastercard) and the issuer to collect the money. The issuing bank is between cardholders, card schemes, and acquirers. The information sent from the issuer checks whether the payment from the customer is to be accepted or not. The issuer needs to provide approval as to whether there is enough money to pay for the product or service in the clients account, then transfers money to the acquirer, who then settles with the merchant or shop.
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