Card Network

Card networks (also called card schemes or card brands) are the infrastructure that makes card payments possible. When you pay with a Visa card, the Visa network routes the authorization request from the merchant's bank to your bank, and routes the response back. The network sets the rules for transaction processing, interchange fees, dispute resolution, and security standards.

The four major card networks operate in two different models. Visa and Mastercard are "four-party" networks: they connect a separate issuing bank (which gives the card to the consumer) and acquiring bank (which processes for the merchant), taking a small fee for routing. American Express and Discover are "three-party" networks: they often act as both issuer and acquirer, controlling more of the transaction.

Card networks are directly relevant to subscription businesses because of their authorization rules. Networks mandate how and when merchants can retry declined transactions. Visa's rules (updated in 2022) limit retries for certain decline codes to 15 attempts in 30 days, with specific restrictions on "hard" declines. Exceeding these limits can result in fines or account restrictions. Mastercard has similar but distinct rules. Compliance with these network retry rules is essential.

Networks also provide services that benefit subscription merchants. Network tokenization replaces card numbers with network-level tokens that survive card reissuance, improving authorization rates. Account updater programs (like Visa Account Updater) automatically provide new card details when cards are reissued. These services can prevent a significant percentage of involuntary churn.

LostChurn is built with deep knowledge of card network rules and capabilities. The platform respects network-specific retry limits, leverages network tokenization where available, and uses card network account updater services to keep stored payment methods current — all while maintaining compliance with Visa and Mastercard mandate programs.