Card networks such as Visa and Mastercard connect issuers and acquirers to authorize, clear and settle card payments, while local card schemes such as Cartes Bancaires, Interac or RuPay do the same within one country, often at lower cost. PSPs, PayFacs and ISOs expanding into new markets need to support both to give their merchants full domestic acceptance.
A PSP that only supports the international networks misses part of the cards in circulation in many markets, and pays more than necessary on others. This article, updated in October 2026, explains how a card transaction flows through a network, the difference between three-party and four-party models, why local schemes exist, which schemes operate in each region, when to route to them, which fees networks charge, and how to add them without new integrations.
How does a card transaction flow through a card network?
Six steps take place in a few seconds, then over the following days:
- Initiation: the cardholder pays in store, online or in an app.
- Authorization request: the acquirer sends the transaction to the card network, which forwards it to the issuer.
- Issuer decision: the issuer checks funds, limits and risk, then approves or declines.
- Response: the decision travels back through the network to the acquirer and the merchant.
- Clearing: approved transactions are exchanged in batches between acquirers and issuers.
- Settlement: funds move from the issuer to the acquirer, then to the merchant or the PayFac that holds the merchant relationship.
For the operator, each step has its own data, fees and failure points, which is why authorization rates and settlement timing differ from one network and one acquirer to another.
What is the difference between three-party and four-party card networks?
In a three-party model, or closed loop, the network is also the issuer and the acquirer: it holds the cardholder and the merchant relationships itself. American Express historically works this way, although it also partners with banks and acquirers in many markets.
In a four-party model, or open loop, issuers and acquirers are separate banks and the network sets the rules and connects them. Visa, Mastercard and most local card schemes use this model, which is what lets a PSP reach their cards through any acquirer that is a member of the scheme.
Why do local card schemes exist alongside Visa and Mastercard?
Countries create or keep domestic schemes for cost, sovereignty and resilience: domestic transactions stay on national rails, fees are set locally, and payments keep working if international networks are unavailable. Many are backed by central banks or banking associations.
In Europe, most local scheme cards are co-badged with Visa or Mastercard, so the same card works domestically on the local scheme and abroad on the international one. Under the EU Interchange Fee Regulation, the merchant can set a preferred brand at checkout while the cardholder keeps the right to choose, which makes scheme selection a pricing and routing decision for operators.
Which local card schemes exist in each region?
The main domestic schemes by region, with links to the #PayWorldTour country guides where available:
Europe
- Cartes Bancaires (France): co-badged on most French cards.
- Girocard (Germany): the German banks' debit scheme.
- Bancontact (Belgium): the reference debit scheme online and in store.
- Dankort (Denmark) and BankAxept (Norway): national debit schemes.
- Multibanco (Portugal): the national interbank network operated by SIBS.
- PostFinance Card (Switzerland): a domestic debit card issued by PostFinance.
- DinaCard (Serbia): the national card scheme of the central bank.
Asia-Pacific
- UnionPay (China): the largest card scheme in the world by cards issued.
- RuPay (India): run by NPCI, also usable on UPI.
- JCB (Japan): domestic leader with international acceptance.
- BC Card (South Korea): a major domestic card network.
- MyDebit (Malaysia), GPN (Indonesia) and PayPak (Pakistan): national debit schemes.
- HUMO (Uzbekistan): a national payment card system.
- eftpos (Australia): the domestic debit network.
Americas
- Interac (Canada): the domestic debit network.
- Carnet (Mexico): a domestic card network.
- Elo (Brazil): a Brazilian card brand backed by major banks.
- Redcompra and Magna (Chile): domestic debit and credit brands.
- Cabal (Argentina): a cooperative card network.
- OCA (Uruguay): a domestic credit card brand.
Middle East and Africa
- mada (Saudi Arabia) and NAPS (Qatar): national debit networks.
- TROY (Turkey): the national card scheme.
- CMI (Morocco): the interbank card center.
- Meeza (Egypt): the national payment scheme.
- Verve (Nigeria): the leading domestic card brand.
- Zimswitch (Zimbabwe), gh-link (Ghana), EthSwitch (Ethiopia) and GIM-UEMOA (West African Economic and Monetary Union): national and regional switches and schemes.
When should a PSP route to a local scheme rather than Visa or Mastercard?
When the card is co-badged and the local scheme gives a better result for that transaction: lower fees, higher authorization rates on domestic rails, or both. For single-branded domestic cards, there is no choice: without the local scheme, the merchant simply cannot accept them.
International networks remain essential for foreign cards and cross-border sales. The practical answer is rule-based: routing rules that choose the brand and the acquirer per card, amount and market, within what regulation and the cardholder's choice allow.
Which fees do card networks charge?
Networks charge scheme fees on each transaction, often a percentage plus a fixed amount, along with access, licensing and service fees paid by acquirers and issuers. Interchange, paid by the acquirer to the issuer, is set by the networks but often capped by regulation, as in the European Economic Area.
Local schemes usually have lower fees for domestic transactions, which is a large part of their appeal for operators and merchants. The payment processing fees guide details each layer and how operators price it.
How can a PSP or PayFac add local schemes without new integrations?
By connecting acquirers that already support them and activating the schemes per market. On NORBr, local schemes are available through acquirers in the global payment network, activated per merchant and shown in the operator's branded checkout.
For operators expanding into new markets, that turns local acceptance into configuration. The checkout best practices article covers how to present co-badged cards, and the A2A payments article describes the account-based alternatives growing next to cards.
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