Debit and credit cards are vital tools for banks that are looking to specialize in deposit taking and lending, and debit and credit card services. Having a card issuing license allows you to issue branded debit and credit cards, that can bear your design and logo, along with the logo of major card issuer (Visa, MasterCard, Amex). Unlike co-branded card issuing, where the card holds the major card issuers logo, the issuing banks logo, and finally your logo, having your own card issuing license means that you can issue your own debit and credit cards.
Unlike an acquiring license, a card issuing license will only allow you to issue your own cards, and will not let you process payments from these cards. However due to the complexity of acquiring licenses, and the software requirements, many banks do not opt to apply for acquiring licenses with their issuing licenses, as you can still operate your own card issuing schemes without the needs to process payments from them.
Once you have a debit and credit card issuing license, you will be connected to the processing systems of the major card issuers as a card issuer, so that when acquiring banks process payments from these cards, they will be able to connect to the account information in your bank to clear the payment.
In order to apply for a debit and credit card issuing license, you will need to be the holder of a bank license. The type of bank license is not important, as even with a Class B (Class II) restricted bank license, you will still be able to issue debit or credit cards to the list of clients that your bank has been setup to service.
Once you hold a bank license, you will then need to approach the major card issuers to apply for a license to issue their brand of cards. It is not necessary for you to approach all of the major card issuers for a card issuing license, and it is probably better to choose a combination of card issuers that will be suit your clientele.
If you are interested in obtaining your own banking license and card issuing license, and you are ready to start the application procedure, please Contact Us.