💳 What Is a Card Scheme? Global Networks Powering Digital Payments
Every time you swipe, tap, or key in a card number, you’re using the rails of a card scheme—one of the most essential and powerful components of the global payments infrastructure.
From VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks. and MastercardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders. to UnionPay, RuPay, and JCB, card schemes operate in the background, connecting issuers, acquirers, and merchants across borders.
This post breaks down what a card scheme is, why they matter, their history, and introduces a global list of schemes by geography.
🧠 What Is a Card Scheme?
A card scheme is a payment network that sets the rules, standards, and technology infrastructure for processing card-based transactionsTransactions transactions Interactions where value is exchanged for goods or services. between:
- Issuers (who provide cards to customers)
- Acquirers (who provide payment solutions to merchants)
- Merchants (who accept cards for payment)
Card schemes don’t always issue cards or handle funds directly. Instead, they facilitate the transaction flow, authorize and route payments, set interchange rates, and enforce compliance standards.
📜 A Brief History of Card Schemes
| Milestone | Event |
|---|---|
| 1950 | Diners Club launches the first universal charge card in the U.S. |
| 1958 | Bank of America issues BankAmericard (later became Visa) |
| 1966 | Formation of the Interbank Card Association (Master Charge → Mastercard) |
| 1970s–80s | American ExpressAmerican Express american-express A global financial services corporation offering credit cards, charge cards, travel-related services, and merchant acquiring. and Discover expand globally |
| 2002+ | Rise of regional/domestic card schemes: UnionPay (China), RuPay (India), JCB (Japan) |
| 2020s | Entry of open-loop national schemes & fintechFintech fintech Short for financial technology, refers to tech-enabled innovation in financial services.-powered card products |
🌍 Major Card Schemes by Region
| Card Scheme | Region / Country | Website | Card Prefix / BIN |
|---|---|---|---|
| Visa | Global | https://www.visa.com/ | Starts with 4 |
| Mastercard | Global | https://www.mastercard.com/ | 51–55, 2221–2720 |
| American Express | Global (U.S.-led) | https://www.americanexpress.com/ | Starts with 34, 37 |
| Discover | U.S.-centric + global | https://www.discover.com/ | 6011, 622, 64–65 |
| Diners Club | Global (limited issuing) | https://www.dinersclub.com/ | Starts with 36 |
| UnionPay | China & global | https://www.unionpayintl.com/en/ | Starts with 62 |
| JCB | Japan & APAC | https://www.jcbcorporate.com/english/ | Starts with 35 |
| RuPay | India | https://www.npci.org.in/ | Varies (India-specific) |
| Troy | Turkey | https://www.troyodeme.com.tr/ | 9792 |
| Mir | Russia | https://mironline.ru/ | 2200 |
| Verve | Nigeria & West Africa | https://www.verveinternational.com/ | Starts with 5061 |
| Cartes Bancaires | France (co-branded with Visa) | https://www.cartes-bancaires.com/ | Varies (with Visa BIN) |
| Elo | Brazil | https://www.elo.com.br/ | Starts with 636 |
| Maestro | Global debit (retired in Europe) | https://www.mastercard.com/ | 50, 56–69 |
| BC Card | South Korea | https://www.bccard.com/ | Country-specific |
| Interac | Canada (debit only) | https://www.interac.ca/ | Not BIN-based (debit) |
| MEPS/MyDebit | Malaysia | https://www.meps.com.my/ | Country-specific |
| Napas | Vietnam | https://en.napas.com.vn/ | Country-specific |
🏗️ How Card Schemes Operate
| Function | Role of the Card Scheme |
|---|---|
| Rule-setting | Defines compliance, dispute rules, chargebackChargeback chargeback A dispute raised by the cardholder that results in reversal of a transaction. Can lead to penalties for merchants. logic |
| BIN allocation | Manages global Bank Identification Number ranges |
| Transaction routing | Facilitates connection between acquirerAcquirer acquirer A financial institution or payment processor that manages the merchant account, enabling businesses to accept card payments. Acquirers receive all transactions from the merchant and route them to the appropriate issuing bank. ↔ issuerIssuer issuer A bank or financial institution that issues payment cards to consumers. Responsible for authorizations and chargebacks. |
| Interchange setting | Determines how fees are split between issuer and acquirer |
| SecuritySecurity security Measures used to protect transaction data from fraud and cyber threats. & standards | Mandates EMV, 3D Secure, tokenization, and PCI DSS standards |
| Brand licensing | Authorizes banks and processors to issue or accept their branded cards |
🎯 Why Card Schemes Matter
- Global Acceptance: Consumers can use cards across borders seamlessly.
- Brand Trust: Merchants and users trust well-known scheme logos.
- Standardization: Ensures consistent rules, compliance, and security.
- Revenue Engine: Interchange feesInterchange Fees interchange-fees Fees paid by the merchant’s acquirer to the cardholder’s issuer for transaction processing. and licensing are vital to the payments ecosystem.
📌 Conclusion
Card schemes are the invisible highways powering trillions in global commerce. While giants like Visa and Mastercard dominate internationally, domestic schemes are gaining traction for cost efficiency, local compliance, and national sovereignty.
As payment innovations evolve—like real-time payments, mobile walletsWallets wallets See Digital Wallets., and crypto—card schemes are also adapting, staying relevant in a rapidly changing financial landscape.