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FDIC Banking Review

Figure 2 is a flowchart that illustrates the single-issuer model, which is a closed-loop card-association system in which many merchants accept payments on a card with a single issuer. The beginning node of the flowchart represents the cardholder. The figure shows the account information sent to the second node which represents the merchant. The flowchart then shows the transaction information sent to the third node, the closed loop card association. The card association then sends the transaction authorization back to the merchant node and the transaction is completed. The figure shows that the card association sends the payment for transaction to the merchant. The flowchart then shows that the closed loop card association sends the cardholder a monthly statement listing all transactions that occurred during the statement period. After receiving the monthly statement, the figure shows the cardholder sends funds to the card association.

Last Updated 11/17/2005 Questions, Suggestions & Requests