The Processor and the Contractual Matrix in a Card Scheme: How Privity Fell and Resurrected in Aldo V. Moneris

Abstract

Participants in a typical interbank payment card transaction are a cardholder, a merchant, an issuing bank and an acquirer (the merchant's bank). The issuer incurs a payment obligation, which benefits either the payee-merchant or the acquirer. The issuer and acquirer are member banks in a card network asscoiation that establishes rules and standards governing the issuance and use of the cards.