What Is a Credit Card Issuer? Everything You Need to Know

Kelly Boyer SagertUpdated February 12, 2024

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent, and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or network providers. Read more about our Editorial Guidelines and How We Make Money.

From credit card issuers to credit card networks, behind-the-scenes management allows consumers to seamlessly use their cards to make purchases. Here, we’re defining terms and otherwise illuminating what steps issuers and networks take to facilitate the credit card system.

How Credit Card Issuers Work

Although many people know how a credit card works — from how to make a purchase to how to make payments on the account — we may not think as often about the issuer and the role they play. A credit card issuer is a financial institution that offers accounts to consumers. In fact, they handle a much bigger part of the process, starting with the application and approval process.Once a consumer’s application gets approved, credit card issuers send them their cards, along with information about the terms and conditions of their accounts. This includes their credit limits and, if applicable, their cash advance limits. The issuers also approve or deny individual transactions, bill consumers through monthly statements, and collect payments.Credit card issuers must follow numerous governmental regulations as set out by the Consumer Financial Protection Bureau under the auspices of the Federal Deposit Insurance Corporation (FDIC). These include (but aren’t limited to) the following: limits on fees and finance charges, allocations of payments, and increasing annual percentage rates.

Credit Card Issuer vs. Credit Card Network

The four major credit card networks are as follows:

American Express
Discover
Mastercard
Visa

Each of these helps to facilitate processes between the credit card issuers and the merchants that accept their cards at their stores and businesses. The networks create the structure required to allow retailers to take their brand of credit card and receive the funds from the credit card issuer to pay those merchants.The credit card network sets the processing fees that a merchant pays to offer a type of credit card at their store and to accept financial transactions with them. These are also called interchange fees or swipe fees. A credit card issuer, meanwhile, sets the fees that a consumer would pay to use their card. Here’s how credit card issuers and credit card networks work together:

Credit card networks (such as American Express, Discover, Mastercard and Visa) create a structure for the credit card issuers (banks, credit unions and other financial institutions).
Credit card networks also facilitate the processes and payments between issuers and the merchants (retail stores, car repair shops, cleaning service companies and more) that allow their customers to use a particular type of credit card.
Credit card networks set processing fees that a merchant must pay to offer their kind of credit card.
A credit card issuer offers a type of credit card offered by a network to consumers.
Credit card issuers manage the process from start to finish from the consumer’s point of view.
Credit card issuers charge fees for consumers to use their card.

Does the Issuer of the Credit Card Charge a Fee?

Types of consumer fees charged by a credit card issuer can include the following:

Interest fees: If you don’t pay off the statement balance in full by the due date, then interest will be charged based on the current rate. Here are tips on calculating credit card interest.
Annual fees: Some credit card issuers charge a fee once a year, which must be paid for the consumer to continue to have access to their credit line.
Late payment fees: If the minimum payment isn’t made by the statement date, then late fees can be charged.
Cash advance fees: If a card has a cash advance feature, it will likely come with a fee.
Balance transfer fees: If you transfer a balance from another credit card, there may be a fee assessed.

There can also be returned payment fees if you make a payment and the check bounces, foreign transaction fees, or other types specific to a credit card issuer.Also, pay attention to cash advance terms and conditions. Besides coming with a fee, the interest rate on funds advanced to you will likely be higher than if you’re making purchases with that card. Plus, there isn’t a grace period when you don’t pay interest. It begins accruing on the day that you “buy” the money from the credit card issuer. Recommended: Guide to Credit Card Fees

Finding the Credit Card Issuer Number

A credit card issuer number can refer to the phone number of the issuer or their issuer identification number.

Credit Card Issuer Phone Number

To find the telephone number of your credit card issuer, locate the number that’s listed on the back of the card or go to the issuer’s website to find the appropriate telephone number. Your issuer may provide different phone numbers for different types of questions: customer service issues, lost or stolen card challenges, request for an increased credit limit, and so forth.

Credit Card Issuer Identification Number

The credit card issuer identification number (IIN) usually consists of the first eight digits of a credit card number and identifies the credit card network and the credit card issuer. In other words, these numbers wouldn’t be unique to your credit card number and the IIN is used to process financial transactions made on this account. Numbers that follow the IIN will be unique to your account.

Examples of Some Major Credit Card Issuers

In alphabetical order, here are several of the major credit card issuers:

American Express
Bank of America
Barclays
Capital One
Chase
Citibank
Discover
Synchrony
USAA
U.S. Bank
Wells Fargo

Finding the Right Credit Card

In order to help find the right credit card:

Compare APRs to see which ones are best.
Consider the reward programs, including what you get and how you can redeem the rewards.
Compare the fees, including whether an annual one is charged.

Armed with this knowledge, compare credit cards and make the right financial choice for your unique situation.

The Takeaway

Credit card issuers handle the credit card application, approval process, payments, and overall management aspects of a person’s account. This is different from a credit card network that sets up the structure for issuers who will offer their brand of credit card. From a borrower’s standpoint, what’s most important is to choose a card that’s best for them, financially speaking, and offers the benefits they want and need.If you’re ready to apply for a credit card, consider Lantern by SoFi. With just one application, you can receive offers from top lenders in our network, all with no obligation to you.

Photo credit: iStock/SDI Productions

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About the Author

Kelly Boyer Sagert

Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.

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