Credit card issuers: What to know

A credit card issuer is a financial institution that offers credit in the form of credit cards. 

If you’ve ever applied for a credit card, then you’ve worked with a credit card issuer. Credit card issuers, along with credit card networks, play a big part in how credit cards work.

What you’ll learn:

• A credit card issuer is a lender that offers credit cards.

• As part of the application and approval process, issuers determine credit limits, interest rates, rewards and more.

• Card issuers work with credit card networks, like Mastercard® and Visa®, that facilitate credit card transactions between issuers and merchants.

Credit card issuers are institutions that supply credit cards to consumers. Often a bank or credit union, an issuer is the lender a cardholder borrows money from. Capital One is an example of a credit card issuer.

An issuer’s name, logo or contact information is usually displayed on the card. Cards from businesses like airlines, hotels and retail stores are often backed by card issuers. Those kinds of cards are referred to as co-branded cards, and they may show both the issuer’s and the partner’s logos.

These 10 credit card issuers have the most cards in circulation in the United States:

• American Express
• Bank of America
• Barclays
• Capital One
• Chase
• Citi
• Discover
• Synchrony
• U.S. Bank
• Wells Fargo

Credit card issuers and credit card networks aren’t the same—although they often work together to facilitate credit card use. While a credit card issuer supplies credit cards and is the lender a cardholder borrows money from, a credit card network processes transactions made with a credit card.

Some issuers have their own networks—like Capital One and Discover.

Credit card issuers offer credit cards to consumers and businesses in the form of revolving credit.

A card issuer reviews an applicant’s creditworthiness, including their credit scores and credit history, to help determine the interest rate and credit limit. If the issuer accepts an applicant, they’ll share a credit card agreement. A credit card agreement usually outlines terms like:

• Credit card fees
• Annual percentage rates
• Rewards
• Cardholder and issuer rights

Once a consumer begins using their credit card, the issuer is also responsible for paying merchants on the cardholder’s behalf, then recouping payment. Issuers also typically send cardholders a monthly credit card statement that lists payment information and a summary of the account, including things like balances, transactions, charges, fees, available credit and account notifications.

Issuers are also responsible for providing customer service to cardholders and reporting their payment history to the three major credit bureaus.

Eligible cardholders might be able to access benefits from their credit card network. But issuers can also set credit card benefits, including:

Rewards programs may include things like the ability to earn travel miles or cash back, which can then be redeemed for things like gift cards and other options.

Issuers typically have security features in place to help cardholders protect themselves from fraud.

And if you need help, a card issuer’s customer service team can help cardholders navigate other concerns.

Credit cards can be great tools to build credit. But that’s only when they’re used responsibly, which means doing things like paying on time every month and only using the credit you need. 

Issuers report this information to credit bureaus, which they incorporate into your credit reports. But issuers also report derogatory marks like late payments.

As a credit card issuer, Capital One offers:

• Credit cards designed for various interest and credit levels

• Rewards cards with various benefits, like cash back and travel miles

• Tools for cardholders to manage their accounts, like the Capital One Mobile app

• Free credit monitoring services through CreditWise

You can also get free copies of your credit reports from AnnualCreditReport.com.

Credit card issuers extend credit to cardholders—making it possible to spend what you need, earn rewards and build credit. Issuers are different from credit card networks, although cardholders can also tap into benefits from their network. And with credit card issuer security features in place, cardholders can be protected from fraud.

Whether you love to travel, dine out or earn cash back on everyday items, there’s a Capital One card for you. Compare credit card rewards and see if you’ll be approved with 100% certainty—without impacting your credit scores.