What role does the issuer play in the payment transaction?

The issuer plays a crucial role in the payment transaction by issuing the payment card to the cardholder. This entity is usually a bank or financial institution that provides credit or debit cards to consumers. When a customer applies for a card, the issuer assesses their creditworthiness and ultimately decides whether to approve the application. Once approved, the issuer provides the cardholder with a payment card that allows them to make purchases, access funds, and enjoy other financial services.

In the context of a payment transaction, the issuer is also responsible for managing the account linked to the card, including tracking spending, processing payments made using the card, and ensuring compliance with relevant security standards. This role is distinct from processing transactions on behalf of the merchant or managing merchant accounts, which typically involves payment processors or acquirers. While customer service inquiries related to the payment card may be handled by the issuer, it does not define their primary role in the transaction process.