A payment card system that issues cards and acquires merchants is referred to as?

A payment card system that issues cards and acquires merchants is referred to as a Closed System. In this type of system, the payment network is controlled entirely by a single entity, which manages both the card issuance and merchant acquisition. This means that the network does not allow other payment networks or entities to participate, resulting in a more streamlined approach to transactions as everything is managed in-house.

Closed systems often provide specific benefits such as enhanced security, improved customer loyalty programs, and potentially lower transaction fees since they lack the complexities of involving third-party networks. An example of a closed system would be proprietary credit cards issued by specific businesses or organizations, which can only be used within their network or at a select group of merchants.

In contrast, open systems are designed to facilitate participation from multiple entities, allowing various issuers and acquirers to operate within the same network. This creates a more extensive network of merchants and cardholders but can increase transaction complexities. Decentralized systems refer to structures that distribute authority and responsibility among various members instead of central control, while hybrid systems combine elements of both open and closed systems, providing a blend of features from both approaches.