How are credit cards transactions processed? Learn more here:
The issuer, or issuing bank, is a bank that delivers debit cards, e.g. Maestro or Visa Electron, and credit cards, e.g. Visa or MasterCard.
The cardholder receives his credit or debit card from the issuer. The card issuers are often private customer banks creating the infrastructure for the card business by issuing the cards. An acquirer handles the billing of the card transactions of the contracting companies, i.e. businesses accepting card payments.
Issuers settle transactions made by their cardholders with merchants of various acquirers. In order to increase their customer base, they will make special offers and sales campaigns. Issuers strive for a profitable card portfolio, which is determined by the number of cards issued and the sales generated on those cards.
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