Four-Party Model

The Four-Party Model is the dominant framework for processing card-based payment transactions globally, involving four distinct entities: the cardholder, the merchant, the issuing bank (issuer), and the acquiring bank (acquirer), all connected by a card network like Visa or Mastercard. This model facilitates the secure and efficient transfer of funds and information, underpinning the vast majority of credit and debit card transactions in markets such as the United States and Europe.