The Economics of Card Issuing – Who Gets Paid?

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Card issuing involves multiple stakeholders, each with a defined role in the economics of a transaction. When a card is used, issuers earn interchange fees, which are a small percentage of the transaction paid by the merchant’s bank. Processors are paid for routing, authorizing, and settling transactions, while card networks collect fees for managing the network, providing standards, and ensuring global interoperability. Merchants pay a merchant discount rate (MDR) that covers these costs.

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Understanding these flows is critical for businesses issuing cards, as it affects pricing, profitability, and program sustainability. For example, interchange fees may vary depending on the merchant category, card type, or geographic region, impacting revenue.

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Monavate simplifies this complex ecosystem by centralizing fee management, tracking all revenue and costs, and providing detailed reporting. Businesses can see exactly where money flows, monitor program performance, and optimize strategies for profitability. By integrating financial transparency with operational efficiency, Monavate allows issuers to manage card economics effectively while ensuring compliance, scalability, and smooth day-to-day operations.

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