What does an issuing bank mean?

Article content

1. Card-issuing bank
2. Functions of the issuing bank
3. When to contact the issuing bank
4. How to contact the issuing bank

 

An issuing bank is a financial institution that issues various financial and payment instruments, including payment cards, letters of credit, or bonds, and ensures their reliable servicing and fulfillment of obligations to holders or users. The term "issuer" originates from the Latin word "emissio," meaning "issue."

Many payment instrument holders (hereinafter referred to as "payment cards") come across this term when they encounter a problem during a payment transaction and receive a message such as "Contact your card issuer." Let’s explore how to determine which bank issued your card, in which cases you should contact the bank, and how to do so.

 

Card-issuing bank

A card-issuing bank, or payment instrument issuer, is the financial institution that has issued your payment card and is responsible for its servicing under an agreement concluded between the payment service provider and the user, in accordance with the rules of the relevant payment systems.

A payment card always contains details that help identify its issuer – typically the bank’s logo and name.

Additionally, the issuing bank can be identified by the card’s BIN (Bank Identification Number), which consists of the first six digits of the card number. We previously discussed this in the article How to determine the bank of a card.

 

Functions of the issuing bank

The main functions of the card issuing bank include:

• card issuance: providing clients with cards in any form or medium under terms and conditions set forth in the agreement with the client, determining applicable fees and interest rates;
• security assurance: implementing measures to prevent fraud and unauthorized use, including setting transaction limits and protecting users' personal account information;
• transaction processing: verifying and processing each card account transaction, approving or declining transactions based on security settings and financial criteria;
• card servicing;
• user notifications: informing cardholders about completed transactions, applicable fees and rates, and contract changes. Handling reports of lost cards or compromised personal data. Providing options for blocking/unblocking, updating, or reissuing a payment instrument;

 

When to contact the issuing bank

A cardholder may need to contact the issuing bank in cases related to card servicing, account transactions, or payment issues.

Sometimes, an ATM, payment terminal, or online payment service may display an error message advising the user to contact the card issuer. This can happen if the issuing bank detects unusual account activity or applies security restrictions. The most common cases include:

• transaction declined: a payment may fail due to restrictions set by the issuing bank, such as suspected fraudulent activity, exceeded limits, or insufficient funds;
• card blocking: a card may be blocked after multiple incorrect PIN entries or suspected unauthorized transactions. The issuing bank will need to verify the cardholder’s identity before unblocking the card or account;
• limit adjustments: if a transaction exceeds preset limits or occurs abroad, additional verification and a temporary or permanent limit adjustment may be required;
• payment authorization issues: the card may not pass verification on a merchant’s platform or payment gateway;
• additional transaction confirmation: the issuing bank may request confirmation of a specific transaction to ensure its legitimacy.

These security measures help protect cardholders’ funds. Contacting the bank’s support service can help resolve issues promptly.

 

How to contact the issuing bank

The procedure for contacting the bank is outlined in the agreement signed when opening an account and obtaining a payment instrument. Information is also available on the bank’s official website in Information for customers section.

To receive assistance, call the support number indicated on the back of your card. If you do not have your physical payment card on hand, contact information can be found on the bank's official website or in the mobile application. Additionally, clients can submit inquiries directly on the bank’s website.

For security purposes, the bank’s support service will verify the cardholder’s identity by asking a series of authentication questions.

Understanding the functions of an issuing bank makes using payment instruments more convenient and secure, especially when urgent card-related issues arise.