The WSBA licensed Interbank to use the MasterCharge name and Logo. In the late 1960's, numerous financial institutions became MasterCharge members to compete with BankAmericard. Set credit limits offered to cardholders Determine procedures for billing customers MasterCard and Visa are managers of their respective brand. Set and enforce rules and regulations governing their bankcards, such as operational procedures, interchange procedures, and graphic design approval of their cards. The acquirer is a member of MasterCard and Visa, and is contracted with merchants to accept merchant sales drafts, provide authorization terminals, instructions, and support, and handle the processing of credit card transactions.
Some financial institutions are both issuers and acquirers.
The merchant has a written agreement with the acquirer to accept the bankcards as payment and to abide by the terms of the agreement. The issuer is responsible for the cardholder account program which encompasses nearly all aspects of cardholder account activities ranging from acquiring new customers to billing current ones. Maintaining authorization file Providing customer service Processing payments and handling settlement and income Interchange Establishing collections operations. Managing a credit card program is expensive. Smaller banks can issue cards without becoming an issuing member by being an agent.