Issuer
The issuer (also issuing bank or card issuer) is the bank that issues a credit or debit card to the end customer. In the payment process, the issuer is responsible for authorising or declining transactions — based on the available balance, credit limit, and security rules.
When a cardholder initiates a payment, the issuer receives the authorisation request via the card network (Visa, Mastercard) and checks whether the transaction can be approved. Upon successful authorisation, the amount is reserved from the cardholder's account and later transferred to the acquirer.
For each transaction, the issuer receives the interchange fee — a fee paid by the acquirer to the issuer. In the EU, the interchange fee is regulated (0.20% for debit cards, 0.30% for credit cards). In Switzerland, there is no legal ceiling, but the fees are at a similar level.
Issuer examples
UBS issues Visa credit cards to its customers — in this case, it is the issuer.
When a UBS cardholder pays at an online shop, UBS, as the issuer, checks whether the transaction can be authorized.
The issuer receives the interchange fee for each transaction as compensation for card issuance and credit risk.
Issuer FAQ
What is an issuer in payment processing?
An issuer is the bank or financial institution that issues a credit or debit card to the cardholder. The issuer authorises transactions and bears the credit risk towards the cardholder.
What is the interchange fee?
The Interchange Fee is a fee paid from the acquirer to the issuer for every card payment. In the EU, it is regulated at 0.20% (debit) and 0.30% (credit). In Switzerland, there is no legal ceiling.
Who is the issuer of your credit card?
The issuer can be found on the back of your card or in your bank contract. In Switzerland, typical issuers are UBS, Credit Suisse (now UBS), ZKB, Raiffeisen, Cembra or Swisscard.
What is the difference between issuer and card network?
The issuer issues the card and bears the credit risk. The card network (Visa, Mastercard) provides the infrastructure through which authorisation and settlement between the issuer and acquirer are processed.
