A card scheme is the payment network, such as Visa or Mastercard, that sets the rules and runs the infrastructure linking card issuers with acquirers so that card payments can be authorised, cleared, and settled. The scheme licenses both sides and sets the fees that govern each transaction, but does not itself issue cards or hold the merchant account.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How a card scheme works
A card scheme operates the network and rulebook that allow a card payment to pass between two banks. When a customer pays a business by card, the business's acquiring bank routes the transaction through the scheme to the cardholder's issuing bank for authorisation. If approved, the scheme governs how the payment is cleared and how the funds move back to the acquirer for settlement to the business. The scheme sets the technical standards, security requirements, and fee structure that issuers and acquirers must follow, and charges a scheme fee on transactions. It does not issue cards, hold accounts, or lend money. This information is current as of 21 February 2026.
Card scheme, issuer, and acquirer
The card scheme sits in the middle of a card payment and connects the two banks on either side. The issuing bank works for the customer and provides the card. The acquiring bank works for the business and settles the funds. The scheme provides the shared network and rules that let those two institutions transact, and it earns a scheme fee that is separate from the interchange fee paid to the issuer. Some networks, such as American Express, can act as both scheme and issuer, while open networks like Visa and Mastercard rely on member banks to issue and acquire.
Why it matters to a business
The card schemes a business can accept affect which customers it can serve and the cost of taking payment. Acceptance of a scheme depends on the business's acquiring bank or payment provider supporting it, and each scheme carries its own fees that feed into the overall cost of card acceptance. A business comparing payment providers should check which schemes are supported, the associated fees, and any rules that apply to its sector. Confirm supported schemes and charges with the provider, as these vary by provider and region.
Frequently asked questions
What is a card scheme?
Are Visa and Mastercard card schemes?
What is the difference between a card scheme and an issuing bank?
What is a scheme fee?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 21 February 2026. Confirm current terms with the provider before applying.