Payment Network: Everything You Need to Know

Table of Contents

1. What Is a Payment Network?
2. What Are the 4 Payment Networks?
3. How Do Payment Networks Work?
4. What Is a Payment Card Network?
5. What Is the Paystand Bank Network?
6. How Secure Are Digital Payment Networks?
7. How to Choose the Right Payment Network for Your Business

Key Takeaways

• Payment networks facilitate secure transactions between customers, businesses, and banks.
• The four main payment networks include Visa, Mastercard, American Express, and Discover.
• Learn the differences between credit card networks, ACH, EFT, and the Paystand Bank Network.
• Discover how the Paystand Bank Network offers fee-free B2B payments with blockchain-powered security.
• Understand how to evaluate and choose the right payment network for your business.

What Is a Payment Network?

A payment network is a system that facilitates the movement of money between two parties, such as a customer and a business. These networks involve financial institutions and technologies that handle transactions' authorization, processing, and settlement. Examples include credit card networks, ACH systems, and EFT platforms.

What Are the 4 Payment Networks?

The four main credit card payment networks are:

1. Visa – The largest network, widely accepted worldwide.
2. Mastercard – Known for its security features and global reach.
3. American Express – A closed-loop network offering premium cardholder perks.
4. Discover – Focuses on cashback rewards and simple fee structures.

Each network facilitates transactions between cardholders, merchants, and banks, ensuring secure and seamless payments.

How Do Payment Networks Work?

The mechanics of payment networks vary by type:

Credit Card Networks

• The issuing bank provides funds to the cardholder for purchases.
• The card network routes transaction data between the acquiring bank (merchant's bank) and the issuing bank.
• Funds are authorized, processed, and settled.

EFT Networks

EFT (Electronic Funds Transfer) enables the movement of money electronically for:

• ATM transactions
• Mobile payments
• Direct deposits and peer-to-peer payments

ACH Payments

ACH (Automated Clearing House) allows for direct transfers between bank accounts and is commonly used for payroll, bill payments, and business transactions.

What Is a Payment Card Network?

A payment card network is a type of payment network that specifically processes transactions made with credit, debit, or prepaid cards. These networks act as intermediaries, ensuring funds move securely and quickly between cardholders and merchants.

Examples: Visa, Mastercard, American Express, Discover.

What Is the Paystand B2B Network?

The Paystand B2B Network is a next-generation, fee-free payment network designed for B2B transactions. Unlike traditional networks, it uses:

• Blockchain-Assured Transactions: Every transaction is secure, verified, and auditable.
• Real-Time Payment Tracking: Know immediately when payments are initiated and settled.
• Instant Fund Verification: Reduce chargebacks and delays with real-time checks.

Paystand’s network eliminates transaction fees and streamlines recurring and one-off payments, making it a game-changer for businesses.

How Secure Are Digital Payment Networks?

Most payment networks adhere to stringent security standards, such as PCI DSS compliance, and protect sensitive data with encryption technologies.

The Paystand Bank Network takes security further by leveraging blockchain and digital signatures, ensuring that every transaction is authenticated and tamper-proof.

How to Choose the Right Payment Network for Your Business

Selecting the right payment network involves answering key questions:

1. Is It Secure? Does the network meet or exceed industry security standards?
2. What Are the Fees? Are there hidden costs, or does the network offer a fee-free model?
3. Is It Reliable? What’s the reputation of the network among businesses in your industry?
4. What Support Is Available? Does the network offer robust customer service and technical assistance?

If you’re ready to explore a secure, fee-free B2B payment network, consider the Paystand Bank Network.

Payment networks are essential to facilitating secure and efficient transactions between businesses and customers. While traditional networks like Visa and ACH have long been the standard, innovative solutions like the Paystand B2B Network offer modern businesses a cost-effective, secure, and fast alternative.

Learn what steps your business should be taking to keep up with the future of finance in our latest ebook.