What is a card issuer? How brands launch their own cards
By SendPay Business · · 2 min read
A card issuer is the bank or licensed firm that gives a customer their card. When the card is used, the issuer decides whether to approve the payment and takes the money from the customer's account or balance.
What the issuer does
- Checks and onboards the cardholder.
- Creates the card, physical, virtual or both.
- Approves or declines every payment in real time.
- Handles disputes and fraud on the cardholder's side.
How issuers earn money
Issuers receive interchange, a small fee from the business's side, on each card payment. They may also earn from account fees, foreign exchange and, on credit cards, interest.
Debit, prepaid and credit
A debit card spends from a bank account, a prepaid card spends from a loaded balance, and a credit card borrows money to be repaid later. Most money apps issue debit or prepaid cards, since credit needs lending permissions.
How brands launch cards
Most brands don't become issuers themselves. They work with a licensed issuing partner and card network sponsor, and put their own name and design on the card. SendPay Cards platforms, powered by licensed partners, are free to design, with virtual cards at 20p each and physical cards at £4 plus shipping.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What would my own card programme earn?
Work out card costs, card income and first-year profit from your own numbers.
Card issuing profit calculator →What do a prepaid card's fees add up to?
Add up a year's fees on a prepaid card.
Prepaid card cost calculator →What is a BIN sponsor?
The licensed firm that lets a brand issue cards on a network.
What is a BIN sponsor? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.