Sunday, March 06, 2022

Reciprocal and National Bridge Transactions - Definition

Reciprocal Transaction - The card holder initiates a transaction at a device that is owned by a bank that is a member of a different regional network.

In this case, a gateway is used to switch the transaction. Example: A London resident attempts to withdraw money from an ATM or POS in Edinburgh, Scotland. An agreement between the network in Scotland and the network in London England allows the transaction to be switched from one regional network to another.

National Bridge Transactions - The card holder uses a device at a bank that is not their own, and the two banks belong to different regional networks that do not have any agreement. Both banks must belong to the same national network.

The transaction is handed from the ATM or POS regional network to the national network, and finally to the authorizing bank's regional network. In this case, there are three switches involved. 

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