What Is an IssuerIssuer issuer A bank or financial institution that issues payment cards to consumers. Responsible for authorizations and chargebacks.?
An issuer is a financial institution that provides consumers or businesses with payment instruments—most commonly debit, credit, or prepaid cards. Issuers manage the account behind the card and approve or deny transactionsTransactions transactions Interactions where value is exchanged for goods or services. based on available balance, fraudFraud fraud Criminal deception involving unauthorized payments or use of financial credentials. rules, and other criteria.
But behind every issuer is a complex stack of technology providers, and issuer processors are the core engine of that stack.
🏗️ The Issuer Processing Stack – Key Roles
Before diving into companies like Marqeta and GPS, let’s understand the typical value chain for issuing:
| Role | Function |
|---|---|
| Issuer (Bank) | Owns the BIN and cardholderCardholder cardholder The person or business to whom a payment card is issued. relationship |
| Issuer ProcessorIssuer Processor issuer-processor A platform that handles card issuance and transaction processing for banks or fintechs. | Handles authorizationAuthorization authorization The real-time process of verifying that a payment method has sufficient funds or credit limit for a transaction. Results in an authorization code from the issuer., settlementSettlement settlement The process of transferring funds from the issuer to the acquirer., ledger, fraud, and lifecycle of cards |
| BIN Sponsor | A licensed issuing bank that rents BINs to fintechs or program managers |
| Card Network | VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks., MastercardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders., Amex, etc., handle routing and network rules |
| Program Manager | Designs and operates the card program, manages branding, use case |
| KYC/Onboarding Platform | Provides identity and regulatory compliance |
| Card Manufacturer | Prints physical cards, integrates securitySecurity security Measures used to protect transaction data from fraud and cyber threats. elements (chip, NFC) |
| Card Personalization Bureau | Customizes cards with name, branding, PIN mailers etc. |
🔒 Visa & Mastercard Certification
To plug into the Visa or Mastercard network, issuer processors must complete certification with each network. This includes:
- EMV transaction compliance
- Network connectivity and authorization testing
- Data security standards (PCI DSS Level 1)
- Message formatting (ISO 8583/20022)
- Risk, fraud, and dispute management capabilities
Visa and Mastercard maintain their own lists of certified processors:
🔗 Visa Ready Issuer Processors
🔗 Mastercard Engage Directory
🧩 ProcessorProcessor processor A company authorized to process credit and debit card transactions between acquirers and issuers. vs. BIN Sponsor vs. Program Manager
Here’s a quick breakdown of three often-confused players:
| Role | License Required | Who Uses It? | Revenue Model |
|---|---|---|---|
| Issuer Processor | No | Fintechs, Banks | Transaction & monthly fees |
| BIN Sponsor | Yes (Bank license) | Fintechs | Interchange share, onboarding fees |
| Program Manager | No (but needs partners) | Retailers, brands, neobanks | Setup + performance fees |
Some modern providers bundle all three roles (e.g., Railsr, Synapse, Solarisbank).
🦄 Top Issuer Processors Globally (2025)
Here’s a table of top issuer processors by region and specialization:
| Processor | HQ | Focus | Network Certified | Website |
|---|---|---|---|---|
| Marqeta | USA | Modern card issuing, open APIs | Visa, Mastercard | marqeta.com |
| GPS (Thredd) | UK | Prepaid, debit, neobanks | Visa, Mastercard | thredd.com |
| Galileo (SoFi) | USA | Banking-as-a-service, card issuing | Visa, Mastercard | galileo-ft.com |
| TSYS | USA | Full-service issuer processing | Visa, Mastercard, Amex | tsys.com |
| FIS | USA | Core banking + card processing | All major networks | fisglobal.com |
| FISERV | USA | Traditional banks, credit unions | All major networks | fiserv.com |
| Enfuce | Finland | Cloud-native issuer processing | Visa, Mastercard | enfuce.com |
| M2P FintechFintech fintech Short for financial technology, refers to tech-enabled innovation in financial services. | India | API-based card issuing | Visa, Mastercard, RuPay | m2pfintech.com |
| Zeta | India | Banking + card stack, modern core | Visa, Mastercard | zeta.tech |
| Dock | Brazil | LATAM issuer processing | Visa, Mastercard | dock.tech |
| Marqeta Japan | Japan | Expansion into Asia | Visa Japan certified | marqeta.com |
| MatchMove | Singapore | BaaS, card issuing + walletsWallets wallets See Digital Wallets. | Visa, Mastercard | matchmove.com |
🌐 BIN SponsorshipBIN Sponsorship bin-sponsorship An arrangement where a financial institution allows another party to use its Bank Identification Number for issuing cards. Landscape
Issuer processors typically do not hold banking licenses, so they work with BIN sponsors. These are licensed banks that issue cards on behalf of fintechs.
Top BIN Sponsors Globally
| BIN Sponsor | Region | Comments |
|---|---|---|
| Evolve Bank & Trust | USA | BIN sponsor for Marqeta, Stripe Issuing |
| Sutton Bank | USA | Used by many neobanks and processors |
| Railsr (ex-Railsbank) | UK/EU | Bundled BIN + Processing |
| B-Social (now Kroo) | UK | Early-stage BIN sponsor |
| SEB, PFS, Wirecard Bank | EU | White-label BINs |
| YES Bank / SBM / RBL | India | Support for neobanks |
| Visa/Mastercard Membership Banks | Global | Local BIN sponsorship programs |
🧠 Common Issuer Processor Use Cases
- Neobanks (Monzo, N26, Chime) → Use Marqeta, Galileo, or GPS
- Expense management (Brex, Ramp, Divvy) → Virtual card issuing, spend controls
- On-demand payouts (Doordash, Uber) → Instant virtual card issuance
- Crypto cards (Binance, Crypto.com) → Fiat conversion, balance checks
- Loyalty & Gift CardsGift Cards gift-cards Prepaid cards issued by retailers or card networks that allow purchases up to the value loaded on the card. (Retailers) → Prepaid, reloadable issuance
🔧 What Makes a Modern Issuer Processor?
Key capabilities that differentiate modern platforms:
| Feature | Description |
|---|---|
| Real-Time Authorization | Approve or decline instantly via API |
| Just-in-Time Funding | No pre-loaded balances needed |
| Tokenization Support | Apple Pay, Google Pay ready |
| Multi-Currency & FX | Useful for travel cards and crypto wallets |
| Lifecycle Management | Issue, suspend, reissue, set limits via API |
| Dynamic Spend Controls | Rules by MCC, country, time, amount |
| Fraud & Risk Engine | Machine learning based filters |
| PCI-DSS Compliant | Required for sensitive card data handling |
🏁 Getting Started: How a Fintech Launches a Card Program
- Define your card use case: debit, prepaid, credit, loyalty
- Choose a Program Manager or DIY: depends on resourcing
- Pick a BIN Sponsor: based on geography, network
- Select an Issuer Processor: integration depth, roadmap
- Get Network Approval: Visa/Mastercard onboarding
- Build Card UX: app UI, KYC flows, funding, etc.
- Launch Pilot: internal testing, limited rollout
- Scale: monitor fraud, refine rules, expand geographies
📊 Trends and Future of Issuer Processing
- Embedded Finance: non-fintechs issuing cards (e.g., Shopify Balance)
- Open APIs: standardization across processors via open banking
- Decentralized Issuers?: tokenized cards & stablecoinStablecoin stablecoin A type of cryptocurrency pegged to a stable asset (like USD), used to avoid volatility in crypto transactions. bridges
- Cross-border Programs: real-time FX and global BINs
- Green Cards: ESG focus on biodegradable cards and digital-first issuance
📚 Related Reading
- 🔗 Visa Ready for Issuers
- 🔗 Mastercard Engage Directory
- 🔗 Payments Glossary
- 🔗 Guide to BIN Sponsorships
✍️ Conclusion
Issuer processors are the hidden engines behind your favorite fintech cards. Whether you’re a startup looking to launch a card or a global company building an embedded finance product, understanding the issuer processing ecosystem—its players, certifications, and models—is critical for success.
Vibhu Arya is a fintech and payments expert with 15+ years of experience simplifying how money moves across digital and retail ecosystems. He’s led strategy and partnerships at Citibank, Adyen, and IKEA, and helped scale fintech startups (Snapdeal, iPaylinks) to $1B+ valuations. Vibhu’s expertise spans cards, crypto, cross-border, and real-time payments. He is the founder of PaymentsPedia.com, where he writes about the future of payments.
📧 vibhu@paymentspedia.com | LinkedIn