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What is happening every time I pay my credit card? Am I 'settling' with my bank, the credit card company, or another entity?

The working of credit cards is often described in terms of what's called the "four party model". These parties are the merchant, the acquiring bank, the issuer, and the cardholder. There's a ...
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4 votes

What is happening every time I pay my credit card? Am I 'settling' with my bank, the credit card company, or another entity?

Yes is the answer to your actual question. Actually, in both the U.S. and Europe you have a bank that is the 'issuer' of the card. Why a bank? Because banks lend money, and with a credit card they ...
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What is happening every time I pay my credit card? Am I 'settling' with my bank, the credit card company, or another entity?

When you have a credit card account, your agreement is with the bank that issued your credit card. The bank is the one that is directly loaning you money. The credit card network (MasterCard, Visa, ...
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