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(Schiff, 2007, p.22).

Payment Card Systems
In each transaction made a€‹a€‹with the card in two-sided markets, the card owners and business owner form the sides of the market. The way to detect the network effects is to ensure adequate participation in both sides of the market. Card holders will choose to be included in the platform only if the cards they use are accepted by a large group of operators and business owners will choose to be included in the platform if the customers use the card instead of cash when making payment. Upon the participation of the business owners and card holders, the membership and the user externalities will be internalized (Rochet and Tirole, 2008, p.572).

Payment cards are divided into two groups depending on the number of the groups in the card processing as with three party schemes and four party schemes:

Four Party Schemes
This kind of payment card systems is also known as an open payment card systems. Payment systems where two institutions such as the accepting bank such as Visa and MasterCard and the issuer bank act as intermediaries and where multiple banks are member of the network can be shown as examples for the systems with four scheme. The four groups in the payment system consist of the card holder, the business owner, the issuer bank and the accepting bank. The issuer bank means the bank that issues the card for use by the card holder in his transactions. The acquiring bank is the bank that places the POS device in businesses. A variety of payment flows is carried out between the four groups that form this system. Firstly, the card holder is responsible of the annual card fee payment type. In addition, if the card holder uses his card as a means of unsecured credit, he will have to pay interest as well as the annual card fee. Merchants pay for the services offered by the acquiring bank. Lastly, there is an interchange fee that the acquiring bank pays to the issuer bank (Veljonovski, 2006, p.40).

Three Party Schemes
Payment systems with three party schemes such as American Express and Diners Club are known as closed systems due to having a single mediator that carries out card issuance and acquiring. Intermediary organizations can directly contact with merchants and cardholders. Presence of a single intermediary organization limits the bank with two tasks such as marketing and distribution. No interchange fee is in question due to that the issuer and accepting banks are the same (Veljonovski, 2006, p.40).

6.1. Interchange Fees
Interchange fees consist of the payments made a€‹a€‹to the issuer bank by the acquiring bank. For example, as a result of the use of MasterCard by a consumer in his shopping, the acquiring bank that placed the POS device in the business is obliged to pay interchange fee to the issuer bank of the card holder. Card organizations with open system cannot directly determine the fees that will be received from the sides as in closed systems. Because there are multiple banks which are members of this system and these banks come together and determine the interchange fees together (Lerner et al, 2006, p.572).

Interchange fee is a payment affecting both merchants and consumers, particularly the acquiring bank because the exchange fee is of one of the highest cost items of the acquiring bank. The acquiring bank directly transfers these costs