As Visa itself said in court during its litigation with Sears, issuer competition, while important, is no substitute for competition among networks. We agree with them on that point. It is at the network level that innovation occurs and new cards are created. Examples include revolving credit cards , charge cards , debit cards , ATM cards, stored value cards, and new smart or chip-based cards . Networks make these cards possible by providing the means for processing and clearing transactions.
Networks provide other essential functions.
Networks create and promote their brands. They establish requirements for merchants accepting their cards, and they set certain fees for transactions. Bank issuers can only offer products within the boundaries set by networks. Issuers can change their fees or the interest rates they charge, but this is not innovation. If the networks don't innovate, issuers are limited in what they can offer.