Card payments 101 - from swipe to settlement
summary
Explains the exact transaction path: swipe creates an ISO 8583 messages packet with PAN/BIN and MCC, acquirer routes by first digit, issuer processor applies fraud and business logic, and networks batch-settle funds daily. Highlights that auths must return in 3 second auth latency or timeout, card volume is in the hundreds of billions and value in the trillions, and interchange eats ~2–3% with merchant-category nuances. Compares virtual vs physical cards and shows how issuer processors can enforce custom realtime rules.
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chapters (26)
- 0:00Introduction
- 1:34Why are we talking about card payments
- 3:42Why not card payments
- 4:36Why card payments
- 5:25Card payment ecosystem
- 9:18Glossary
- 12:13Questions
- 12:38Swipe
- 12:54ISO 8583
- 14:15ISO Message
- 14:55Approval or Decline
- 15:36issuer processor
- 17:49payment
- 18:23daily payments
- 19:10settlement
- 20:23edge cases
- 24:41what should I use
- 28:06what is interchange
- 31:08high vs low interchange
- 32:01Durbin amendment
- 33:00Distribution method
- 34:12Consumer vs commercial
- 35:29Interchange optimization
- 37:15Incentivizing behavior
- 37:54Credit vs debit
- 38:51Innovation in the ecosystem
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