Multiple choice technology mainframe

What is Issuer? - Example

  1. One who buys and owns the credit card.

  2. One (Bank/Institution) who issues the credit card.

  3. One who has approving authority for credit card.

  4. One who is being charged the fees of credit card.

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The issuer is the bank or financial institution that issues the credit card to the consumer and extends the credit line. They're liable for cardholder debt and set credit terms. Option A describes the cardholder, C describes a role within issuing, and D describes who pays fees - not the issuer itself.

AI explanation

The Issuer is the bank or financial institution that issues the credit card to a customer — it underwrites the credit line, bills the cardholder, and bears the risk of non-payment (e.g., Chase, HDFC Bank, Citi). It is not the cardholder (the one who buys and owns the card), not an approver of individual transactions, and not simply 'the one being charged fees' — those describe the cardholder or account holder, not the issuing entity. The issuer is distinct from the card network (e.g., Visa/Mastercard) and the acquirer (merchant's bank).