Issuer
An issuer is the bank or financial institution that issues a credit or debit card to the cardholder and is responsible for the authorisation of 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 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 statutory upper limit, 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 issuing the card and the credit risk.
Issuer FAQ
What is an issuer in payment transactions?
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 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 ceiling.
Who is the issuer of my credit card?
The issuer is listed on the back of your card or in your bank agreement. 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 authorisation and settlement between the issuer and acquirer are processed.
