![]() This covers costs in case the customer doesn't pay their credit card bill. In exchange for the risk of paying upfront, the issuing bank charges a fee for each transaction (usually a percentage of the total). It will either approve or decline the purchase depending on the funds in or credit limit of the customer's account.įor an approval, the issuing bank sends the transaction amount to the acquiring bank through the payment processor. Next, the payment processor connects your bank with the issuing bank. When the customer scans their card at a register or makes an online purchase on your website, the acquiring bank initiates the transaction through the payment processor. In simple terms, the issuing bank connects the customer with the payment processing system so your transaction can happen. What's the Role of an Issuing Bank in Payment Processing? They may be unable to qualify for credit cards with some issuing banks. Those with lower credit scores pay higher interest rates because they're associated with a higher risk of payment default. Since issuing banks pay for the customer's purchase upfront, they shoulder financial risk. Credit card rewards programs, including incentives like cash back on purchases.Payment dashboards that connect customers with their accounts through websites and apps. ![]()
0 Comments
Leave a Reply. |