Issuing Bank / Issuer
An issuing bank is a financial institution, sometimes a bank, that provides payment cards (credit, debit, or prepaid) directly to consumers or businesses. The issuing bank is responsible for managing cardholder accounts, authorising transactions, and handling customer service inquiries. Issuers can earn revenue through interchange fees and interest charges when consumers and merchants complete payments on their cards.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
