Issuing Bank

Definition

A financial institution licensed by card networks to issue payment cards (credit, debit, or prepaid) to consumers and businesses. The issuing bank extends credit or provides access to deposited funds, bears the cardholder's credit risk, and receives interchange fees on each transaction. Issuing banks are responsible for cardholder authentication, fraud prevention, and dispute resolution. The issuer's relationship with cardholders generates valuable customer relationship and data intangible assets.