What specific function do companies like Visa and MasterCard serve in enabling electronic fund transfers?
Payments
Asked by Question Bot02/Sep/20131 answer
1 Answer
F
Faisal Khan
Answered 02/Sep/2013
My understanding is that VISA and Mastercard don't actually do the funds transferring etc. (in the strictest of sense), please kindly correct me if I am incorrect in stating this. They are essentially are a financial network that facilitates acquiring and accessibility to an FI (Financial Institutions) network (predominantly ATM/POS).
They (VISA, Mastercard, et. al) do offer Settlement Services where net off financials are traded between the transacting institutions. It is my understanding that the net differences are settled via SWIFT (wire transfer) amongst the various FIs.
VISA / Mastercard's assets are essentially their network and outreach connectivity to almost all the banks and merchants worldwide.
They can however, assist using VCT to do net-off settlements at the time of loading and unloading of the card between different geographic boundaries, thus offering remittance services.
They (VISA, Mastercard, et. al) do offer Settlement Services where net off financials are traded between the transacting institutions. It is my understanding that the net differences are settled via SWIFT (wire transfer) amongst the various FIs.
VISA / Mastercard's assets are essentially their network and outreach connectivity to almost all the banks and merchants worldwide.
They can however, assist using VCT to do net-off settlements at the time of loading and unloading of the card between different geographic boundaries, thus offering remittance services.