Issuer
An issuer is the bank or financial institution that issues a credit or debit card to the cardholder and is responsible for authorising transactions.
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, the credit limit and the security rules.
When you initiate a payment as a cardholder, 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 your account and later transferred to the acquirer.
The issuer receives the interchange fee for each transaction — 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 statutory cap, 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 authorised.
For every transaction, the issuer receives the interchange fee 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 vis-à-vis the cardholder.
What is the interchange fee?
The interchange fee is a fee paid by 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 upper limit.
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 an issuer and a card network?
The issuer issues the card and carries the credit risk. The card network (Visa, Mastercard) provides the infrastructure through which authorization and settlement between issuer and acquirer are processed.
