last years are characterized by explosive spread of bank cards.Credit and debit, they come in large numbers.But who becomes initiated the production of this payment instrument, to whom it brings the greatest benefit?It turns out that there is such an institution.This is - the issuing bank.
Or rather, banks scattered across the country.The primary task is to provide their financial services to individuals and organizations.At some point in the life of the citizens began to enter plastic card, with which you can pay for goods or services in the absence of cash.Of course, by such an enticing prospect financial institutions have not been able to go and began to develop a new issue of a payment instrument.
What it is - the issuing bank?
Issuing Bank - a credit institution, producing and servicing payment cards.I must say that it is the concept of "issuer" previously belonged (at first) to the field of use of the letter of credit as a payment instrument in foreign trade transactions.
However, due to the wide spread of plastic cards issuing bank became increasingly referred to it in this regard.For some time now the legislators have established standards for regulation of this area.Now here are all legally regulated.The main objective of the bank is now - is to provide guarantees for the implementation of financial obligations which arise from the holders by using card.
What is the responsibility of the issuing bank
There is a certain list of actions carried out by the issuing bank in connection with the release of their payment or credit card.Here are the main ones:
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Bank issues cards and provides them to users.It should be borne in mind that a bank card remains the property of the financial institution.This also applies to debit cards, which are used for their original holders of non-cash purse.This also applies to credit cards, which store to lend money.Once the client is a contract for a release, he immediately opened a special account.
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essence of all transactions is that the issuing bank receives a request from the first terminal to which the card is inserted.Then, thanks to the special electronic equipment, the card holder is identified.
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Further variants are possible.If the user requests the account balance, then it's simple: there is an instant check for the money in the account, and the information is sent back.If the request comes from the terminal from which the user is going to pay for the goods, services or withdraw cash, the bank will take the coded authorization for a payment or withdrawal.Naturally, the money from the account will be written off immediately with all commissions.
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Institution prepares and sends to the client's request decryption operations on the account.In addition, if a credit card, the borrower will be given the current debt.Get this information is possible through the already mentioned terminals, and can be via a computer or even mobile communication.However, for the implementation of the last two options will need to sign a contract.
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issuing bank provides security cards at an affordable level for him.It explains all the precautions, provides information only on a special password, blocking accounts stolen or lost cards.If the PIN code has become available to unauthorized persons after receiving the card at hand, the bank is not responsible for the consequences.
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Finally, the financial institution keeps records of all transactions on the accounts, analyze them and report to the Central Bank.In addition, the bank is a constant exchange of information with their colleagues.
Of course, in addition to these functions, there may be a supplement, but the main, we still call.
