Since banks handle and process payments for credit and debit cards, what do Visa and MasterCard actually do?
In: Economics
Visa is like a middle man..the merchant sends to the transaction to visa (or mastercard, ect) and that connects to the bank processer and if it is approved then the payment pulls from the bank. Merchants aren’t connected to every bank, so visa and other processers are large enough to play the middle man and get the charge to the bank’s processer. Transactions can also be declined by Visa or the bank depending on different criteria.
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