Issuing Bank
An issuing bank also called an issuer is part of the 4 party model of payments.
Issuing bank. The issuer acts as the middle man for the consumer and the card network by contracting with the cardholders for the terms of the repayment of transactions. The issuing bank extends a line of credit to consumers and is responsible for providing the financial backing for the transactions made with the card. The issuing bank is the institution that gives ultimate irrevocable and conditional payment guarantee to the beneficiary.
The issuing bank is the financial institution that issues credit cards to consumers on behalf of the card networks visa mastercard. An issuing bank also known as issuer is a bank or financial institution that offers payment cards to consumers on behalf of the card networks such as visa mastercard or american express. The services and products these banks provide go beyond this simple explanation but it is useful to view them through this lens.
It is the bank of the consumer also called a cardholder and is responsible for paying the merchant s bank called an acquiring bank or acquirer for the goods and services the consumer purchases. Bank of the west branch location at 3300 jefferson street napa ca 94558 hours of operation phone number address directions and reviews. Buyer s or importer s bank which establishes opens a letter of credit l c in favor of a beneficiary seller or exporter forwards it to an advising bank for delivery to the beneficiary and commits itself to honor demand drafts drawn by the beneficiary against the amount specified in the l c.
Cardholder presents the card to pay. All other banks are acting according to the instructions and authorization that they have received from the issuing bank. Also called opening bank.
The issuing bank is the entity that investigates the creditworthiness of the cardholder grants the line of credit to the cardholder and fronts the money for purchases made with the card to send to the merchant. Simply put an issuing bank is a financial institution that issues the credit card to the cardholder and allows them to make purchases at retailers in person and online with that card.