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FWIW, "CC companies" are banks.

Visa/MasterCard/Discover/etc are little more than clearing houses.

Banks serve as both issuers (to the consumer) and processors (to the merchant), often times both.



You are drastically underestimating the value and control that the processor networks bring.

Wells Fargo might underwrite the credit on my credit card, but I would immediately cancel that line of credit if it wasn’t accessible through the Visa network.

The value of a credit card isn’t just the line of credit, it is the near universal and frictionless acceptance as a method of payment.


You're mostly right, but Discover specifically owns a bank. That bank does underwrite the debt on most Discover cards. Also Amex, but you didn't mention them.




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