What is an issuer?
An issuer is a bank or financial institution which provides payment cards to consumers and businesses. It is responsible for managing the cardholder relationship.
What does an issuer do during a transaction?
The issuer receives authorisation requests, checks whether the card is valid and whether sufficient funds or credit are available, and then approves or declines the transaction.
What responsibilities does an issuer have?
Issuers manage fraud detection, handle disputes and chargebacks, issue cards, and maintain cardholder accounts.
How do issuers make money?
They earn revenue from interchange fees, interest on credit card balances, and cardholder fees.
How do issuers interact with other payment participants?
They communicate with acquirers and card networks to process transactions and ensure funds move correctly through the system.