What is one function of a card association in credit and debit card payments?

In the context of credit and debit card payments, the primary function of a card association is to authorize and facilitate payment processing between banks and merchants. Card associations, such as Visa and MasterCard, play a crucial role in the payments ecosystem by establishing the rules and standards for processing card transactions.

When a customer makes a purchase using a credit or debit card, the card association ensures that the transaction is securely authorized by verifying the cardholder's information, checking available funds or credit limits, and confirming that the transaction meets the necessary guidelines for fraud prevention. This process involves communication between the merchant's acquiring bank, the cardholder's issuing bank, and the card association itself, which acts as an intermediary to ensure efficient and secure processing.

By providing this essential service, card associations enhance the reliability and speed of electronic payments, making them pivotal players in the financial transaction landscape.