kaardivõrkude

Kaardivõrkude (meaning "card networks" in Estonian) is a system of interconnected organizations and networks that process, verify, and clear financial transactions, particularly in the context of payment card systems.

The kaardivõrkude system typically involves a group of participating institutions, including banks, credit unions, and other financial organizations, which cooperate to facilitate payment transactions between merchants and cardholders. This network enables the verification of card authenticity, available funds, and transaction approvals, thus ensuring the integrity of financial transactions.

The core components of a kaardivõrkude system include card-issuing banks, card-acquiring banks, and card networks (such as Visa or Mastercard). Card-issuing banks are responsible for providing cards to consumers, while card-acquiring banks manage merchant relationships and facilitate transactions on behalf of the merchants. Card networks connect card-issuing banks and card-acquiring banks, enabling the exchange of transaction information and authorizations.

Kaardivõrkude systems rely on standardized communication protocols and data formats to exchange information between network participants. The most widely used protocol is the ISO 8583 standard, which defines the format and structure of messages exchanged between participating institutions.

In addition to facilitating payment transactions, kaardivõrkude systems also support various risk management and security measures, such as transaction verification, card validation, and authorization protocols. By aggregating transaction data and applying fraud-detection algorithms, these systems help detect and prevent unauthorized payment transactions. Overall, the kaardivõrkude system plays a crucial role in supporting the worldwide payment card industry, allowing for secure, efficient, and reliable transaction processing.