What’s the point of Visa and Mastercard if it’s always from a bank? AmEx cards are produced and processed by them only and not any other processor, so why can’t banks make credit cards without Visa or Mastercard, or vice-versa?

Question

What’s the point of Visa and Mastercard if it’s always from a bank? AmEx cards are produced and processed by them only and not any other processor, so why can’t banks make credit cards without Visa or Mastercard, or vice-versa?

In: 942

Answer 1

Banks can but the problem is using them. Years ago every Gas Station brand had there own card. (Many still do). Card can only be used at that type of gas station. If the gas station you have a card for is closed for the day and you don’t have a card from the one around the corner you can’t charge gas.

Same with the banks. In the USA there are hundreds of different banks and if you travel to the next city over there might not be a branch of your bank. Each bank would have to sign up every merchant to accept their card and run their own system to process them. Easier and more efficient to have a couple of different processors and each bank does not have to have their own system.