What is a Card Scheme Licence?

‍

A card scheme licence is the authorisation a financial institution or business needs to issue or process cards under a major card network, such as Visa, Mastercard, or Discover. Card schemes set the rules, standards, and infrastructure for card payments, ensuring that transactions are secure, interoperable, and globally accepted. Holding a scheme licence allows an issuer or processor to directly participate in the network, offering cards and payment solutions to customers without relying on third-party intermediaries.

‍

There are different levels of participation. A principal licence holder can issue cards and acquire transactions on behalf of others, while affiliate members operate under a sponsor bank or principal licence holder, benefiting from the network’s infrastructure without holding a direct licence. The licence governs compliance, risk management, reporting, and adherence to security standards, ensuring that cardholders and merchants are protected in every transaction.

‍

Monavate sits alongside these licensed networks, partnering with scheme holders to deliver card solutions without needing its own full scheme licence. By integrating with licensed networks, Monavate can issue physical and virtual cards, manage spending, and provide real-time reporting, all while ensuring compliance with global standards. In this way, Monavate bridges the gap between complex payment networks and accessible, user-friendly financial tools.

‍