Issuer

Issuer is called exhibitor or card issuer in German

An issuer, often referred to as a card-issuing institution, is a critical player in the payment card process, issuing credit or debit cards to consumers.

Issuer

An issuer, also called a card-issuing institution, is a financial institution that issues credit or debit cards to consumers. In short, often your bank. They are an essential part of the card payment process and play an important role in approving and processing card transactions. When a cardholder makes a transaction, it is the issuer's job to review and approve or decline the transaction based on factors such as the cardholder's available credit.

Issuers work with acquirers to process card transactions. They receive the transaction information from the acquirer and check the details of the transaction to ensure its validity. After that, the decision to approve or decline the transaction is sent back to the acquirer and then to the merchant and the customer.

Issuer examples

A large national bank that issues credit cards acts as an issuer. They verify and approve transactions when customers use their credit cards to make purchases online.

A credit union that issues debit cards to its members is also an example of an issuer. They are responsible for reviewing and approving debit card transactions.

A financial company that issues specialized cards such as prepaid or gift cards is another example of an issuer. They ensure that every transaction with these cards is valid and secure.

Issuer FAQ

  • The Issuer authorizes and monitors transactions on the part of the Cardholder. It checks the availability of funds, approves or rejects transactions and monitors possible fraudulent activities.

  • An acquirer processes transactions on behalf of the merchant, while the issuer is responsible for the cardholder side. They communicate via payment networks to authorize and process transactions.

  • An issuer contributes to security by applying fraud prevention measures, detecting suspicious activity, and protecting customers against unauthorized use.

  • An issuer issues cards, grants credit limits, processes payments, handles transaction requests, and provides customer support for card-specific issues.