Skip to content

What’s the difference between a credit card network and issuer?

Aug. 10, 2022
6 min read
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

When we discuss credit cards at TPG, we usually focus on the bank that issues the card or the type of rewards the card accumulates, rather than which network it belongs to. Still, your card network matters a lot. It can affect everything from where your card is accepted to some of the benefits you receive.

Today we’re going to take a look at the difference between a credit card issuer and a card network, and examine the four biggest networks in the U.S.

New to The Points Guy? Want to learn more about credit card points and miles? Sign up for our daily newsletter.

Sign up for our daily newsletter

What’s the difference between a card issuer and a network?

The easiest way to explain this difference is with an example. Let's say you have Chase's World of Hyatt Credit Card and you use it to pay for dinner at a restaurant. In this case:

  • The issuing bank is Chase.
  • The card network is Visa.
  • The merchant is the restaurant.
  • The cobrand partner is World of Hyatt.

That’s why most credit cards have two or three different logos on them, representing the issuing bank (Chase), the card network (Visa), and the cobrand partner if there is one (in this case, World of Hyatt).

But what exactly is the functional difference between card issuers and card networks? Mostly it boils down to a division of labor. Each party is responsible for different jobs that keep your credit card working.

Card issuers such as Chase do the following jobs:

  • Handling and evaluating credit card applications.
  • Producing and distributing the physical cards.
  • Creating the terms and benefits of the account, including things like interest rate, annual fees, bonus categories, etc. (For cobranded cards like this example, the cobrand partner — here it’s World of Hyatt — often helps negotiate the terms and benefits).
  • Paying merchants on behalf of the cardholder (i.e., paying the restaurant when you swipe your card).
  • Collecting payments from cardholders and providing account services.

Meanwhile, the primary functions of a card network (Visa in our example) include setting the interchange fees (commonly known as swipe fees) and building out a payment infrastructure so more merchants can accept their cards.

If you’ve ever been to a store that accepts Visa cards as payment, the cashier won’t stop and ask whether your Visa was issued by Chase or Bank of America, because any card on the Visa network should work for them.

The four major card networks

There are four major credit card networks in the U.S. that account for an overwhelming majority of the market:

  • Visa.
  • Mastercard.
  • American Express.
  • Discover.

While Visa and Mastercard partner with a number of different issuing banks, American Express and Discover issue their own cards, allowing them to play both roles. Because interchange fees come directly out of the profit a store makes on each transaction, some retailers around the world won’t accept cards from certain issuers because of the higher fees involved.

Historically, Amex has lagged behind Visa and Mastercard in acceptance because of the higher interchange fees it charge but they've been working aggressively to close that gap in recent years.

Related: Amex now accepted in as many places as Visa, Mastercard in the US

Credit card issuers decide many of the specific benefits of the cards they offer, but they’ll often partner with the card network to adopt a preset service level.

For more information about the different credit card networks, see:

Does it matter which card network you use?

For most people, the card network is an afterthought. They pick a credit card based on the welcome bonus and benefits package that matters most to them, not whether it’s a Visa, Amex, Mastercard or Discover. It’s hard to say that one network is better than the others for a customer, but it’s important to diversify your wallet.

A few years ago, Visa suffered a major network outage that blocked all of its credit cards from being used across Europe. Since this was an issue with the network, it didn’t matter whether you had a Visa issued by Chase or by Capital One — all Visa cards were affected equally. Ever since then, I have made it a point to carry cards from at least two different networks (usually Visa and Amex) at all times in case something similar happens.

The other point you’ll want to consider is merchant acceptance. You’re bound to run into individual merchants, both in the U.S. and internationally, that won’t accept an Amex, Discover, Visa or Mastercard. Holding cards from multiple networks in your wallet is a great way to make sure you’ll have credit when you want it.

Another thing to note is that certain card benefits are tied directly to the network. For example, some Visa cards are designated as Visa Signature cards, while some Mastercards are designated as World Elite Mastercards. These cards offer guaranteed benefits determined by their respective network.

There are a number of popular Visa Signature cards on the market, including the Chase Sapphire Preferred Card, Capital One Venture Rewards Credit Card and the Alaska Airlines Visa Signature® credit card. Although these cards all accrue different types of points and miles and offer different bonus categories and interest rates, they all share a number of common benefits as Visa Signature cards, including extended warranty protection, travel and emergency assistance and access to the Visa Signature concierge service.

Similarly, World Elite Mastercards, such as the Citi Premier® Card, IHG Rewards Premier Credit Card and the Citi / AAdvantage Platinum Select World Elite Mastercard offer specific additional benefits.

The information for the Citi AAdvantage Platinum Select World Elite Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: Comparing Visa Signature and World Elite Mastercard benefits

Bottom line

Credit card networks provide the infrastructure that keeps our cards functioning, but because they don’t directly issue rewards (with the exception of Amex and Discover, which are both networks and card issuers), it’s easy to overlook their importance.

If you haven’t yet, spend some time going through your wallet and making sure you have a diverse collection of cards from multiple issuers and multiple networks, just in case.

Additional reporting by Emily Thompson.

Featured image by (Photo by Isabelle Raphael / The Points Guy)
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

TPG featured card

Best starter travel card
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

1 - 3X points
3XEarn 3 Points per $1 spent at Restaurants and Supermarkets
3XEarn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
1XEarn 1 Point per $1 spent on all other purchases

Intro offer

Earn 80,000 ThankYou® points60,000 points
For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

Annual Fee

$95

Recommended Credit

670-850
Excellent, Good
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Why We Chose It

The Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet.

Pros

  • Earns 3x points on restaurants, supermarkets, gas stations, air travel and hotels.
  • $100 annual hotel savings benefit (on single hotel stay bookings of $500 or more, excluding taxes and fees, booked through thankyou.com)
  • Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
  • World Elite Mastercard benefits, extended warranty, damage and theft protection.

Cons

  • $95 annual fee
  • Lacks travel protections that other travel rewards cards come with
  • For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
  • Earn 3 Points per $1 spent at Restaurants and Supermarkets
  • Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
  • Earn 1 Point per $1 spent on all other purchases
  • Annual Hotel Savings Benefit
  • 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
  • No expiration and no limit to the amount of points you can earn with this card
  • No Foreign Transaction Fees on purchases
Best starter travel card
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

3XEarn 3 Points per $1 spent at Restaurants and Supermarkets
3XEarn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
1XEarn 1 Point per $1 spent on all other purchases
  • Intro Offer
    For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

    Earn 80,000 ThankYou® points
    60,000 points
  • Annual Fee

    $95
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    670-850
    Excellent, Good

Why We Chose It

The Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet.

Pros

  • Earns 3x points on restaurants, supermarkets, gas stations, air travel and hotels.
  • $100 annual hotel savings benefit (on single hotel stay bookings of $500 or more, excluding taxes and fees, booked through thankyou.com)
  • Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
  • World Elite Mastercard benefits, extended warranty, damage and theft protection.

Cons

  • $95 annual fee
  • Lacks travel protections that other travel rewards cards come with
  • For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
  • Earn 3 Points per $1 spent at Restaurants and Supermarkets
  • Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
  • Earn 1 Point per $1 spent on all other purchases
  • Annual Hotel Savings Benefit
  • 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
  • No expiration and no limit to the amount of points you can earn with this card
  • No Foreign Transaction Fees on purchases