Issuer or Issuing Bank

Issuer, also known as Issuing Bank, refers to a financial institution or bank that issues payment cards, such as credit cards or debit cards, to individuals or businesses. The issuer plays a central role in the payment process by providing cardholders with a means of accessing funds and making purchases. Issuers are responsible for managing cardholder accounts, setting credit limits, and ensuring the security of transactions.

When a cardholder initiates a transaction, the issuer authorizes and facilitates the transfer of funds from the cardholder’s account to the merchant. Issuers also implement security measures, such as fraud detection and card activation processes, to safeguard cardholder accounts.

Collaborating with acquiring banks and card networks, issuers contribute to the overall functionality and security of electronic payment systems, striving to provide cardholders with reliable and secure financial tools.

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