What is an Issuer or Issuing Bank?

An issuer or issuing bank is the financial institution, usually a bank, that issues credit cards to individuals with agreements for repayment.  These financial institutions promote the use of the various branded cards and charge the cardholders interest and fees for their use.  They share in the Interchange Fee charged by the Card Associations.  Most of the power in the credit card industry is seated with the Issuing Banks.  An Issuing Bank’s worth is its portfolio of cardholders.