Issuer
An issuer is the bank or credit card company that issues a credit card to a customer. In most cases, this is the customer’s bank. However, the customer often chooses another credit institution, for example, because it offers particularly good credit card conditions, while the house bank has better checking account or money call options. The issuer is usually printed on the Visa or MasterCard – just like on a normal checking card.
Position of the issuer
The customer is primarily in direct contact with the issuer when applying for and using his credit card. However, the interactions and interaction between the issuer, acquirer and service provider are particularly important for smooth internal processes. This is because they ensure that an end consumer is able to pay a merchant with a credit card. Conversely, they give the merchant the opportunity to offer its customers secure and convenient credit card payment. National and international regulations are in place to ensure smooth interaction between issuer, acquirer and service provider so that the compatibility of processes and systems can be guaranteed. The card organizations themselves are responsible for issuing these regulations and for setting up and operating the necessary global networks.
Issuer – fees and payment transactions
The issuer incurs license fees on the one hand and other fees that are set and charged by the international credit card organizations Visa and Mastercard. These include assessment fees, which are paid by the issuer to the acquirer when money is withdrawn, as well as settlement and clearing costs. The issuer records incoming payments through cardholder fees, which are usually paid by the cardholder to the issuer, and also through the interchange fee, which must be paid by the acquirer to the issuer for each transaction made.
