Issuing bank
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).
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.
Statistics
Worldwide, over 1.5 billion payment cards are in circulation.[1][2]
References
This article is issued from Wikipedia - version of the 10/27/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.