What is a card issuing license

Banks and other financial institutions that wish to offer their clients a broader range of services often acquire a card issuing license. This type of license enables the banking institution to issue credit and debit cards to their customers, essentially providing them with the option to enhance their brand image.

Features of the card issuing license

Business entities that wish to provide co-branded credit card services are required to obtain a card issuing license. Banks and other financial institutions usually attain a card issuing license to enhance their overall client services, and enhance their brand image.

By obtaining a card issuing license, financial institutions are able to offer a range of services. Some of these are outlined below:

  • ATM – individual card holders are able to withdraw cash from an Automated Teller Machine (ATM). This enables customers to access their account in a convenient and efficient manner.
  • Credit – banks that offer their clients the option to attain a credit card enable their clients a certain amount of overdraft/credit.
  • Payment Processing – as a card issuing bank, the financial institution is able to process payments made through their issued cards much faster.

Debit and credit cards are important tools for banks that wish to specialize in deposit taking and lending, as well as credit and debit card services. Once a card issuing license is obtained, holders of the license are permitted to provide a wider range of services to their clients, such as: lines of credit, ATM access, ability to pay at a POS terminal, to name only a few.