What Was🌄 Interbank Network for Electronic Transfer (INET)?

Interbank Network for Electronic Transfer (INET) processed credit and 澳洲幸运5官方开奖结果体彩网:debit card 澳洲幸运5官方开奖结果体彩网:transactions between 澳洲幸运5官方开奖结果体彩网:financial institutions (FIs). It handled the transfer of funds from cards bearing the MasterCard logo before the introduction of Bꦛanknet.

Understandi🍒ng Interbank Network for Electronic Transfer (INET)

Int🐻erbank Network for Electronic Transfer dealt with the transfer of fun🦂ds. MasterCard’s Interbank National Authorization System (INAS) processed card authorizations.

INAS was the first component of MasterCard’s global telecommunications network🔯. It provided electronic authorization to replace earlier phone authorization technology. INET followed later, offering electronic settlement services to replace the previous system in which banks sent each other paperwork.

INET and INAS were eventually combined into a single entity, Banknet. It's a global telecommunications network that links all MasterCard card issuers, acquirers, and data processing centers into one financial network.

Banknet facilitates payments across the world. It's been in operation since 1997 and can handle millions of secure transactions each hour via its thousand-plus data centers all over the globe.

Banknet’s architecture is based on a peer-to-peer protocol that routes transactions to various eꦰndpoints. Data centers are equipped with technology that provides redundancy and automatic activations of backup services if a shutdown occurs.

Banknet allows the regulation of 澳洲幸运5官方开奖结果体彩网:bandwidth and demand. This function is crucial to regulate the capacity of the system at peak times, such as during the holiday shopping season. Banknet primarily partner👍s with AT&T Inc. for this✤ technology and others.

Banknet also provides a transaction research service for 澳洲幸运5官方开奖结果体彩网:chargeback requests. This makes it possible for cardholders to get approved charge🅷backs in just a few hours. 🍨;

MasterCard vs. Visa

MasterCard Inc. (MA) runs one of the largest credit and debit card networks. There were 279 million Mastercard credit cards in the U.S. as of the first quarter of 2024 and 1.54 billion cards worldwide, according to Statista.

MasterCard’s Banknet technology gives it a big advantage over its rival Visa (V). Visa handles transactions through a centralize🐠d or “star-based” system instead of 🍷using a peer-to-peer network. This type of network connects its many endpoints to only a few main data centers.

There should be many others available online if one of MasterCard's data centers fails. A larger portion of transactions are likely to be affected if one of Visa's systems malfunctions. MasterCard nonetheless continues to play catch up to Visa in terms of global dominance. Forbes reported in March 2024 that Visa made up 53.8% of the credit cards in circulation at that time.

The Bottom Line

The Interbank National Authorization Systemꦰ effectively launched MasterCard’s global telecommunications network but it dealt only with authorizations. INET was responsible for actually transferring the money involved in transactions. The two systems were eventually combined into Banknet to handle all aspects of transactions.

MasterCard users deal with INET, INAS, and Banknet every day without re𓃲alizing it.