Bank. Issuer.
The commercial processing of payments is monitored by supervisory authorities. This requires a license as a payment, e-money or banking institution.
On the part of the payer, payment processing is mainly - but not necessarily - carried out by a bank. The bank then issues the required payment media. That's why the Bank of the payer, e.g. when issuing a payment card, is referred to as Issuer.
Issuing for cards.
Contribution of Sam Boboev; Also on LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:7248776532985364480/
The key components of building a card program
Whether your proposition involves digital banking services, SME lending or point-of-sale financing, there are certain essential components your card programme will need before and after it launches. You’ll need the fundamental building blocks to get up and running but you’ll also need the key components that will support the day to day running of your proposition.
Fundamental building blocks
✅ Essential elements to launch your programme:
🔹 Network (Scheme) licence
Your programme will need a network (scheme) licence before it can start executing payment transactions using a payment network. Either through your own principal membership of Visa or Mastercard or through a BIN Sponsor or Programme Manager.N.b we refer to network and scheme throughout this guide. The terms are interchangeable. Generally in the UK and Europe we tend to use the term scheme, but globally the norm is to use the term network.
🔹 Regulatory licence
Enables you to operate in the jurisdictions and countries you want to. Your card proposition dictates what kind of licence you need. Payment services need a payment institution (PI) licence. Payment services and to issue e-money, requires an e-money institution (EMI) licence. Usually to issue cards you (or a partner) will require an e-money licence.
🔹 Payment processor
A good payment processor has strong relationships with BIN Sponsors and issuers, and provides the core technologies to enable card issuing and transaction processing.
🔹 Card bureau/ provider
If your programme offers physical cards, it’s up to a card fulfilment bureau to bring the in-the-hand manifestation of your programme to life. Card bureaus handle everything from design to manufacture, personalisation, despatch and delivery to cardholders.
🔹 Programme management
A provider of a turnkey, end to end card programme is referred to as a programme manager. They bring together all of the building blocks described above and provide all essential elements to launch and run a card programme directly.
