The architecture of card processing: A comprehensive analysis of financial transaction systems

This article provides a systematic examination of card processing infrastructure, offering insights into the complex interrelationships among stakeholders within the payment ecosystem. By deconstructing the transaction lifecycle from authorization through settlement, the article illuminates the technical, economic, and operational frameworks that underpin modern card payments. The article explores the pivotal roles of issuing and acquiring banks, card networks, and payment processors, while examining the security protocols that safeguard transaction integrity. Furthermore, the article investigates the economic model of card processing, with particular attention to fee structures and their impact on various participants. The article also addresses emerging technological innovations that are reshaping traditional processing paradigms and identifies potential trajectories for future development. This comprehensive article contributes to both theoretical understanding and practical knowledge of payment systems, providing value to scholars, industry practitioners, and policy makers engaged with financial transaction infrastructure.