Interbank Network for Electronic Transfer (INET) revolutionized the processing of credit and debit card transactions among financial institutions. This pivotal network streamlined the transfer of funds from MasterCard-branded cards before the advent of Banknet.
Key Highlights
- A Pinnacle in Financial Connectivity: INET managed MasterCard’s debit and credit card transactions seamlessly.
- Operational Synergy: INET coordinated fund transfers while the Interbank National Authorization System (INAS) handled authorizations.
- An Integrated Network: These systems later merged into the all-encompassing Banknet—connecting MasterCard’s global data processing centers.
Understanding Interbank Network for Electronic Transfer (INET)
INET dedicated itself to the efficient transfer of funds, a role complemented by MasterCard’s Interbank National Authorization System (INAS) which handled card authorizations. INAS marked the beginning of MasterCard’s global telecommunications, delivering electronic authorizations to phase out legacy phone systems. Following this innovation, INET emerged to transition from paper-based settlements to electronic transactions.
The integration of INET and INAS into Banknet represents a milestone in financial technology, ushering in a unified network connecting MasterCard issuers and acquirers with its data centers worldwide. Operational since 1997, Banknet is capable of processing millions of secure transactions per hour across its 1,000+ global data centers, significantly reducing transaction processing times.
Banknet’s architecture leverages a peer-to-peer protocol, enabling robust routing to multiple endpoints. This system includes redundancies and automatic activations of backup services to ensure operational continuity. Banknet’s adaptive bandwidth management further enhances capacity handling, crucial during peak times, such as the holiday shopping season, primarily facilitated by strategic partnerships with AT&T Inc.
Additionally, Banknet enhances transaction research services, simplifying chargeback request approvals to just a few hours.
Banknet’s Significance
The addition of Banknet’s massive data warehouse offers unprecedented capabilities for issuers and analysts, making it one of the world’s largest hubs for researching payments and retail transactions.
MasterCard vs. Visa
MasterCard Inc. operates one of the globe’s most extensive credit and debit card networks. At the end of March 2021, approximately 249 million MasterCard credit cards were held in the U.S., with 725 million more internationally.
MasterCard’s Banknet architecture gives it distinct advantages over its key competitor, Visa Inc., which employs a centralized
Related Terms: Banknet, Interbank National Authorization System (INAS), credit card, debit card, financial institutions.
References
- creditcards.com. “Credit Card Market Share Statistics”.
