In this type of agreement, the partner institution owns the credit risk for the cards issued, handles customer relationships and is responsible for transaction authorization, billing and pricing.

FORBES: Quick Take

Authorization and Settlement Fee per Transaction: Authorization and settlement fees are charged to issuers and acquirers for the authorization process that Visa performs for each transactions.

FORBES: Transaction Volumes And Fees Are Fulcrums For Visa Stock

The Transaction Processing includes Authorization, Settlement and Switch charges as well as connectivity charges.

FORBES: MasterCard Is Still $10 Overvalued

Visa earns data processing revenues from the authorization, clearing, settlement, transaction processing services and other maintenance and support services that facilitate transaction and information processing among customers globally and Visa Europe.

FORBES: Three Businesses Make Visa Worth $86

The Fed believes that banks should only recover certain items through interchange fees including the variable costs that are directly attributable to the authorization, clearance, and settlement of the transaction (including the transaction fees paid to the card networks).

FORBES: Could MasterCard Fall Further On Fee Concerns?

Transaction fees is one the major revenue source for MasterCard and includes authorization, settlement and switch charges as well as connectivity charges.

FORBES: So How Does MasterCard Make All Of That Money?

Visa earns revenues by charging fees for its transaction processing service, which involves routing payment information to facilitate the authorization, clearing and settlement of transactions.

FORBES: When Visa Hits $92, Don't Say We Didn't Tell You It Was Going There

Demonstrated by CrossCheck, a check authorization company, and Personal Solutions, the co-leaders of IrFM, the transaction occurred in mid-July at the quarterly IrDA meeting.

CNN: Infrared payment could replace credit and debit cards