What is the role of the card network in a four-party model?

In a four-party model, the card network plays a crucial role in managing the connections between issuers (the banks or financial institutions that issue cards to consumers) and acquirers (the banks or financial institutions that process card payments on behalf of merchants). This network facilitates communication and transaction processing between these two parties, ensuring that transactions are authorized, processed, and settled efficiently.

The card network establishes the rules and procedures that govern transactions, acts as an intermediary to relay transaction information, and ensures that the transaction flows securely and accurately from the cardholder's bank to the merchant's bank. This central function is vital in enabling seamless payments and maintaining the integrity of the payment system.

While providing security for card transactions is important, it is not the primary role of the card network; rather, security is part of the broader set of services they offer. Charging fees directly to consumers is typically handled by the banks issuing the cards rather than the card networks themselves. Offering cash withdrawal services is generally outside the scope of the card network's functions, which primarily focus on payment transactions rather than cash handling.