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Modulr glossary

Card Issuing

Card issuing refers to the process by which financial institutions provide payment cards (credit, debit, or prepaid) to consumers and businesses. Issuers manage transaction authorisation, fraud prevention, and compliance with payment network rules. Digital-first card issuance is becoming increasingly common, with virtual cards offering enhanced security and control.

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Banking and fintech:

Helps issuers and payment providers comply with Strong Customer Authentication (SCA) requirements.

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Fraud prevention: Helps reduce chargebacks related to fraud.

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • Implementation complexity: Requires integration with card schemes and issuer systems.

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