Card Payments Deep Dive

What You Can Do After This Chapter

Learning objective. Learner explains card payment types, the three-corner and four-corner models, the four-party scheme flow, fee distribution and clearing and settlement, using the EUR 120 purchase and the EUR 60 ATM withdrawal as worked examples with amounts in euros throughout the chapter.

Practical assessment. Learner receives a case where a cardholder at Meridian Bank London makes a EUR 120 online purchase and a EUR 60 ATM withdrawal, then traces the authorisation, the clearing file and the settlement, breaks down the interchange, scheme fee and acquirer markup in euros, and drafts the four-party flow with the decline, timeout and reversal paths. Learner also explains the SEPA Cards Framework and the difference between bilateral and multilateral clearing.

Expected deliverables.

• Four-party scheme flow diagram for the EUR 120 online purchase
• Fee breakdown table: interchange, scheme fee and acquirer markup in euros
• ATM withdrawal flow for the EUR 60 cash withdrawal with fees
• Card anatomy note: chip, stripe, PAN, expiry, CVV and contactless antenna
• Clearing and settlement note: bilateral versus multilateral clearing

Completion criterion. Learner traces the EUR 120 purchase and the EUR 60 withdrawal through authorisation, clearing and settlement, breaks down all fees in euros, and explains the four-party model and the SEPA Cards Framework correctly.