Table 1 Comparison of transaction...

Table 1

Comparison of transaction structures and fees in domestic and overseas credit card markets

Payer	Four-party scheme (USA, Europe, etc.)			Three-party scheme (Korea)
Payer	Name		Payee	Name	Payee
Merchant	Merchant discount rate	Interchange fee	Issuer	Merchant discount	Credit card company
		- Card issuance, cardholder management, authorization of transactions, etc.	Issuer
		Network assessment fee	Card network company
		- building and management of a network	Card network company
		Acquisition fee	Acquirer
		- recruitment and acquisition of merchants	Acquirer
Cardholder	Annual membership fee		Issuer	Annual membership fee	Credit card company
Cardholder	Account maintenance fee and other fees		Issuer	None	None

Payer	Four-party scheme (USA, Europe, etc.)			Three-party scheme (Korea)
Payer	Name		Payee	Name	Payee
Merchant	Merchantdiscount rate	Interchange fee	Issuer	Merchantdiscount	Credit card company
		- Card issuance, cardholder management, authorization of transactions, etc.	Issuer
		Network assessment fee	Card network company
		- building and management of a network	Card network company
		Acquisition fee	Acquirer
		- recruitment and acquisition of merchants	Acquirer
Cardholder	Annual membership fee		Issuer	Annual membership fee	Credit card company
Cardholder	Account maintenance fee and other fees		Issuer	None	None

Note(s): This table compares the fee structure, payers and payees of two different transaction systems. The four-party scheme is more common in the U.S. and Europe, while the Korean credit card market is based on the three-party scheme

[ViewLarge]

Sharing Unavailable