Credit Card Issuing Bank

- 04.10

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An issuing bank is a bank that offers card association branded payment cards directly to consumers. The name is derived from its practice of issuing payment to the acquiring bank on behalf of its customer (the purchaser in the transaction).


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Detail

The issuing bank assumes primary liability for the consumer's capacity to pay off debts they incur with their card.

In the case of credit cards, the issuing bank extends a line of credit to the consumer. Liability for non-payment is then shared by the issuing bank and the acquiring bank, according to rules established by the card association brand.


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Statistics

Worldwide, over 1.5 billion payment cards are in circulation.

Source of the article : Wikipedia



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