Card associations are networks of banks that process credit or payment cards for a specific brand. They allow consumers to obtain payment cards through a specific institution and use them for purchases anywhere the brand is accepted. Co-branding is a popular option, and gift cards can also be issued through these associations.
A card association is a network or group of banks that processes credit or payment cards related to a specific card type. In some cases, the cards will carry only the specific brand associated with the network, while at other times the cards may be issued under the name of the issuing or acquiring banks along with the brand name. Networks of this type help establish payment systems that allow consumers to obtain payment cards through a specific institution and use those cards for purchases anywhere that particular brand is accepted.
The card association feature greatly enhances the e-commerce process across the globe. Thanks to the fact that various brands are known and accepted almost everywhere in the world, associations of this type make it possible for someone who obtains a credit card from a local bank in the United States to use the credit assigned to that account while visiting another country. Similarly, a card that is issued through a bank that is part of a card association in the UK can be used for purchases in countries around the world.
One of the most popular options today is for card association members to co-brand the cards they issue over the network. In some cases, an issuing bank may develop a specific name for the card that is then associated with the associated branding. A slightly different approach calls for using the bank’s name in conjunction with the brand. Both approaches are common with credit and debit cards issued by various financial institutions and often help serve as another means of getting the institution’s name in front of consumers who may in turn be interested enough to to examine the range of financial services. offered by the bank.
Gift cards are another example of payment cards that may be issued through the auspices of a card association. Cards of this type are often co-branded, allowing the issuing institution and the brand to receive some recognition from consumers who purchase and use the cards. Cards of this type are typically loaded with a specified amount and cannot be reloaded with additional funds at a later date. In practical use, these gift cards work similar to credit or debit cards, although the total purchase amount cannot exceed the current account balance.
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