What is Issuer/Issuing Bank? - Ikajo Glossary


Issuer/Issuing Bank

What is the issuing bank?

The issuing bank is a bank that issues and implements in circulation banknotes, payment and settlement documents, and financial instruments on a legal basis or on the basis of a license.

The issuing bank is also responsible for the security of personal information of individuals. In addition, it performs the necessary account maintenance. It includes issuing new cards, setting card limits, resolving disputed fees, suspending or blocking a card, and activating the card.

The issuing bank ensures the security of the card at a level that is available to him. He explains all the precautions, provides data only with a special password, blocks accounts of lost or stolen cards.

The issuing bank guarantees all payment obligations fulfillment arising in the process of using the cards issued by it. The card during the whole period of validity remains the property of the bank. The client of the bank receives the card only for use and is only the cardholder.

This organization has various functions. including the following:

  •        Before providing the card to the client it opens an account for him. The card is the property of the organization. The bank issues it to the person for a specific period of time.
  •        Performs authorization, by giving answers to requests for the possibility of a transaction.
  •        Monitors the transfer of funds to the organization’s account for goods or services for which the user has paid with the card.
  •        Conducts preparation, then sends the client data on operations performed during the reporting period, and also provides information on debts (if any) and maturity dates.
  •        Ensures customer security when conducting financial transactions using a bank card.
  •        Conducts the exchange of information with credit organizations.
  •        Gives answers to user requests, and also considers their complaints and wishes.
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