Interchange Network refers to the comprehensive system of financial institutions, payment processors, and electronic networks that collaborate to process card transactions efficiently. This includes the flow of transaction information, authorization, clearing, and settlement of transactions.
The term may also refer to the specific electronic networks used to transmit transaction information and facilitate the transfer of funds between banks. These networks ensure that transactions are conducted smoothly, securely, and in compliance with the established regulations and standards.
The interchange network plays a crucial role in the global payment ecosystem by enabling seamless and real-time transactions, which is fundamental for the smooth operation of businesses and the economy as a whole.