What do Visa and Mastercard do? An intro to card networks
- ID
- 23022
- Status
- summarized
- Published
- 09 Sep 2026, 2:11 AM
- Fetched
- 11 Sep 2026, 1:30 AM
- Provider
- Hacker News
- Category
- dev-community
- Original URL
- https://tautology.town/2026/06/01/card-networks.html
- Source URL
- https://hnrss.org/best
Summary
- Score
- 6.0
- Created
- 11 Sep 2026, 2:37 AM
- Tags
- Audience
- saas_foundersdevelopers
What happened
An explainer breaking down what Visa and Mastercard actually do: they are card networks that route transaction messages, coordinate settlement between banks, set network incentives, and enforce dispute rules. They do not issue cards, underwrite merchants, manufacture POS hardware, or print cards—those roles belong to issuers, acquirers, and processors like Stripe and Adyen.
Why it matters
If you're building a payments-related SaaS or marketplace in Malaysia or SEA, understanding where the card network sits in the transaction chain helps you reason about fees, dispute mechanics, and why certain processors (Stripe, Adyen) layer on top rather than replacing Visa/Mastercard. Useful before choosing a payment stack or negotiating processor terms.
Discussion angle
How does this map to the Malaysian/SEA payments landscape—where do local players like FPX, DuitNow, or regional gateways fit relative to the Visa/Mastercard network model?