What Is a Card Network (Mastercard, Visa, TROY), How Does It Work, and What Are Its Benefits?

 

This article explains card networks and provides recommendations to help you choose the one that best suits your needs.

 

In today’s digital world, card networks (card schemes) are crucial in ensuring payment transactions are secure, fast, and seamless. Networks like Visa, Mastercard, and Turkey’s domestic payment system, TROY, offer various financial advantages. In this article, you’ll learn how card networks work, their benefits, and which suits your needs best.

 

What Is a Card Network (Card Scheme)?

A card network (card scheme) facilitates electronic payment transactions between financial institutions, retailers, and consumers. You’ve probably heard of Visa, Mastercard, or Turkey’s national payment system, TROY—these are some of the most well-known payment system providers.

As one of the fundamental components of payment systems, card networks play a critical role in authorizing, clearing, and settling transactions. They also take on significant responsibilities like fraud prevention and data security.

 

How Do Card Networks (Card Schemes) Work?

Card networks create a collaboration and communication system between cardholders, businesses, banks, and the networks. This system functions effectively when each party fulfills its specific role.

Cardholders (consumers) use credit or debit cards issued by banks or electronic money institutions (such as Papel or Papara) to pay online or in physical stores. Businesses (merchants) that sell products or services use virtual POS or physical POS systems to accept payments. Businesses typically need to partner with a bank or payment service provider to process payments from customers' virtual or physical cards.

Banks that issue credit or debit cards manage customers’ accounts, track transactions, and approve payments—acquiring banks or payment service providers that handle businesses’ transactions process payments through POS terminals and transfer funds to merchants’ accounts.

In this system, card networks such as Visa, Mastercard, and TROY act as intermediaries between the banks that serve businesses and the banks that issue cards to consumers. These networks provide the infrastructure to ensure payments are securely authorized, cleared, and settled.

The payment process consists of several stages:

Authorization

When cardholders purchase a product or service, they provide their card details to the merchant. The merchant sends this information to the acquiring bank or electronic money institution, which then forwards it to the card network. The card network contacts the issuing bank or electronic money institution to check if the transaction is approved. The issuing bank verifies the card’s validity, available balance, or credit limit and approves or declines the transaction.

 

Clearing

After authorization, the financial details of the transaction are shared between the issuing and acquiring banks. The transaction amount and related information are exchanged and agreed upon at this stage.

 

Settlement and Reconciliation

Following the clearing process, the issuing bank transfers the transaction amount to the acquiring bank within a specific period. The acquiring bank then deposits the funds into the merchant’s account. This ensures that all parties involved balance their accounts adequately.

 

What Is Mastercard?

Mastercard is a global payment network facilitating electronic transactions between financial institutions, retailers, and consumers. Established in 1966, Mastercard offers various payment solutions, including credit cards, debit cards, and prepaid cards, enabling users to make secure and fast transactions.

 

What are the Advantages of Mastercard?

Mastercard offers various advantages for individual users and businesses, making financial transactions safer, faster, and more practical. Mastercard is valid at millions of points worldwide, so users can quickly pay for their international purchases. However, Mastercard addresses different financial needs of users with various card types such as credit cards, debit cards, and prepaid cards. Mastercard holders can use special discounts and campaigns offered during specific periods. Mastercard also determines certain rules for security measures against fraud and fraudulent transactions and performs its transactions according to these standards. In addition, banks and e-money companies also take extra measures against fraud. 

Mastercard promises various advantages to businesses and individuals. It offers card solutions, including credit cards, debit cards, prepaid cards, or a combination of them, according to the needs of businesses, and offers them to its users. Mastercard also provides cost savings by offering various discounts and advantages for businesses. However, financial management may also become more manageable since it is possible to track expenses made with Mastercard commercial cards via a single statement.
             

What is a Visa?

Visa is a global payment network that operates in more than 200 countries and regions worldwide, facilitating digital payments between financial institutions, retailers, and consumers. Visa is a worldwide network facilitating digital payments between financial institutions, retailers, and consumers. Visa logo cards are accepted at millions of locations worldwide, so users can quickly pay for their international purchases. Paid pay-with-one-click digital solutions, such as Visa's contactless payment technology and “One-Click Pay,” allow users to make payments quickly and practically. Apart from that, the opportunities it offers its users and businesses are similar to those of Mastercard.

 

What is TROY?

Paying Method of Turkey abbreviated as TROY is Turkey's first and only domestic payment system developed by the Interbank Card Center (BKM) in 2015. Its purpose is to provide services for credit cards, debit cards, and prepaid cards to enable financial transactions in Turkey to be carried out more independently and securely. In addition, Troy also agrees with the “discover” scheme. In this way, it can also be used abroad.
 

What Is TROY Useful For?

TROY is valid on all ATM and POS devices in Turkey and allows users to pay safely and quickly in Turkey. In addition, TROY cards can also be used safely for internet and mobile shopping. Prepaid TROY cards can be used for POS and e-commerce transactions by loading a balance into them and offer the possibility of withdrawing cash from an ATM within legal limits. 

 
What are the Advantages of TROY?

TROY offers various advantages to both individual users and businesses.
 
Advantages of TROY Cards For the Individual User:
 
Economic independence: TROY reduces Turkey's dependence on international card institutions and provides more control and independence in financial transactions.
 
Security: TROY cards are valid on all ATM and POS devices in Turkey, allowing users to pay safely and quickly domestically. 
 
Banks' Loyalty Programs: TROY cardholders can make installments, earn points, and benefit from loyalty programs at the places of business where banks are contracted.

 

How to Get a TROY Card?

To have a TROY card, applying to one of the banks that offer TROY service is sufficient. Applications can generally be made through bank branches, internet banking, or mobile applications. You can contact your bank's customer services to determine whether your current bank offers TROY card service. If your bank does not offer TROY service, you can apply to a bank that provides a TROY card. For application and detailed information, we recommend contacting the relevant bank's customer services.   

 
Banks Offering TROY Card

Some of the banks and electronic money companies offering TROY card services are:
 
• Ziraat Bank
• İş Bankası
• Garanti BBVA
• Yapı Kredi
• Akbank
• QNB Finansbank
• Halkbank
• TEB             
• Papel
• Papara
• Sipay

 

What Should Be Considered When Choosing a Card Network?

The choice of card network is crucial for both individual users and businesses in terms of security, cost, and ease of use in financial transactions. There are a few issues that you need to consider to make the right choice. Considering these factors, you can choose the card network that best suits your needs and usage habits.

 
Area of Use

 The first of these is the area of use. If you are making transactions mainly in Turkey, you can choose a card network that is widely accepted in Turkey and offers advantages. But if you are traveling internationally and shopping abroad frequently, choosing among card networks with a high global acceptance rate would be better. If you are going on international trips and shopping abroad frequently, choosing among card networks with a high global acceptance rate would be better. If you are making frequent foreign purchases, we think you might be interested in the current customs and tax regulations. We invite you to our 2025 Customs and Tax Regulations for Overseas Shopping in Turkiye article. The most crucial point in choosing a card network is accepting the card network in the places where you make transactions. That's why we recommend you check whether the card network you have chosen is accepted at the businesses and platforms where you plan to make purchases.

 
Commission and Transaction Fees

Another important criterion is the commission and transaction fees offered by the card network. The commissions and transaction fees the card networks request in exchange for the services provided may vary. You should determine the option that best suits your budget by comparing these fees. We also recommend you give information on the exchange rate and additional fees applied in foreign transactions. 
 

Campaigns and Customer Support Services

Another decisive criterion is the campaigns and customer support services offered by the card network. Card networks' campaigns, discounts, and loyalty programs can provide additional benefits. We recommend that you also evaluate such advantages when making your choice. However, choosing card networks with accessible and effective customer support services for possible problems or questions will improve the user experience.

 

Security and Technology

The convenience offered by security and technology is essential as it will affect the shopping experience. The card network's security protocols and fraud prevention mechanisms are critical for protecting financial information. You can find more information about secure payment in our What is a Secure Payment? article. Card networks that offer modern payment solutions such as contactless payment and mobile wallet integration may also encourage you to choose as they will make your transactions more practical.
 

Sources: 1, 2.
 

The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or investment advice. Readers are advised to seek professional guidance for their specific circumstances. Decisions based on this content are at the reader’s discretion, and Papel Elektronik Para ve Ödeme Hizmetleri A.Ş. assumes no liability.