What is card issuing?
Card issuing refers to the process by which financial institutions or other authorised entities provide payment cards to consumers or businesses.
These cards can be credit, debit, or prepaid, and are used to facilitate transactions and payments. Card issuers are responsible for the creation, distribution, and management of these cards, and they ensure regulatory standards and security requirements are met.
What card issuers do, an overview:
- Issuing cards
- Approving transactions
- Managing interest and fees
- Provide billing and statements
- Manage risk
- Detect fraud
- Offer rewards and loyalty schemes
- Resolve disputes
Why is card issuing important?
Card issuing plays a key role in the financial ecosystem by enabling consumers and businesses to access funds conveniently and securely, facilitating both in-person and online transactions.
The widespread use of payment cards globally has changed the way people handle money, offering an alternative to cash. For businesses, offering payment cards can enhance customer loyalty, streamline operations, and open new revenue streams through transaction fees and partnerships.
What’s the difference between a card issuer and card acquirer?
Both play an important role in the payment ecosystem, but the simplest way to explain it is this:
Emisores de tarjetas
One of the activities card issuers are responsible for is to provide payment cards to end-users, as well as take responsibility for authorising and managing them.
Card acquirers
Card acquirers process card transactions on behalf of merchants. Acquirers ensure that merchants receive the money they’re due on time and without hassle.
In essence, the issuer deals with the cardholder, and the acquirer deals with the merchant and companies.
What is a card issuing platform?
At the heart of things sits the card issuing platform. It’s a solution that provides the needed technology to create, manage, and distribute payment cards. They’re often in charge of the entire card lifecycle from issuance to processing, and sometimes even fraud prevention and security.
Leading card issuing platforms enable customisation, integration with existing systems, and the ability to scale when demand is high. When using an effective card issuing platform, organisations can focus on their day-to-day while leaving management of their card suit to specialised providers.
How is card issuing important for corporates?
Corporate card programs could enhance expense management, improve cash flow, and provide insights into spending patterns. Additionally, issuing cards can strengthen relationships with customers and partners by offering tailored payment solutions and loyalty programs. There are several process improvements over traditional methods, including:
- Faster account set-up compared to paying by cheque or ACH
- A streamlined reconciliation process with increased visibility into payment activity
- Reduced administrative burden via cards’ stronger security measures
It’s for these reasons, as well as other market drivers, that global commercial credit card spend is expected to reach US$5 trillion by 2028.
The future of card issuing
The card issuing landscape is evolving rapidly, driven by advancements in technology and changing consumer behaviours. Digital wallets, contactless payments, and virtual cards are becoming increasingly popular, offering greater convenience and security.
As the financial ecosystem continues to evolve, card issuers and platforms will need to adapt to stay competitive and meet the growing demands of consumers and businesses alike.
Acerca de Pismo
Pismo is a cloud-native provider of banking and cards solutions, offering next-generation flexibility and scalability for financial institutions. Our platform allows organisations of all sizes to iterate and innovate their infrastructure, meeting the needs of an increasingly diverse and dynamic market.
Pismo helps banks and financial companies by providing easy-to-use, flexible, and scalable solutions for managing payment cards and banking services. Our platform makes it simple for businesses of all sizes to stay up-to-date and meet the diverse needs of their customers.
Want to know more? Get in touch with us today.
Sources:
- ‘How suppliers can unlock value with commercial cards’, Visa, 2025
