What is the role of credit card flags? Understand what they are for

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The ease of credit is very attractive to any consumer. Therefore, nowadays it is difficult to find a business that does not have a machine for this type of transaction. However, in addition to understanding how this form of payment works, it is also interesting to understand the role of credit card brands.

Yes, they have a major influence on several aspects of the operation, including influencing the value of fees and accessibility. Want to understand what we are talking about? In this text, we will explain everything you need to know about them. Check it out!

What is a credit card flag?
Credit card companies are responsible for regulating credit jamaica phone number list transactions. In other words, the entire process of reporting the purchase — amount and installments — to banking institutions is handled by these companies. They are basically the intermediaries between the business and the bank.

How does it work?
A credit card transaction does not happen directly. It is not just a matter of swiping the card and having the credit debited. When a purchase is confirmed, the card company receives the information from the acquirer and validates the credit limit with the buyer's bank, passing the response to the card machine.

What are the differences?
In 2020, Brazil registered around 134 million active credit cards , however, it is not uncommon that, even though everyone uses this payment method a lot, few know that there are differences between card brands, operators and private label.

They are all part of the credit transaction process, but they do not have the same role, mainly to make communication between the merchant and the banking institution easier. Next, we will understand what each one is for.