An issuing bank, also known as a card issuer, is a financial institution that provides credit or debit cards to consumers, enabling them to make purchases, access credit, and withdraw cash. When a customer initiates a transaction, the issuing bank is responsible for verifying the cardholder’s account balance or credit limit, authorizing the payment, and transferring funds to the merchant’s acquiring bank. Issuing banks play a critical role in the payment ecosystem, ensuring that customers’ funds are available, handling fraud prevention, and managing billing and statements for cardholders.
Issuing banks are integral to the security and efficiency of the payment process, with global credit and debit card issuance expected to exceed 30 billion cards by 2025. Example: A major issuing bank introduced two-factor authentication on all digital card transactions, reducing fraudulent charges by 40% for its customers. Insight: Research shows that customers are 65% more likely to use a card from an issuing bank that offers advanced fraud detection and secure mobile app access, underlining the importance of security features in fostering customer trust and usage.
Swipesum specializes in optimizing the relationship between merchants and issuing banks by implementing secure, compliant payment solutions that facilitate smooth, reliable transactions. We help businesses understand how issuing banks impact payment processing, from authorization speed to fraud prevention, and work to align your systems with these standards. With Swipesum, you gain a partner who ensures that your payments are secure, compliant, and efficiently processed, leading to better customer satisfaction and minimized risk.
