What is it Issuing bank?

[Mutt]

Content:

• Issuing bank, what is it?
• Issuing bank functions

According to the latest statistics, today 85 percent of the active population chooses to use credit cards. And this is quite justified - you immediately get the means to fulfill your dreams: you can go on a trip, buy a new gadget, or pay for your child's education. A credit card is fast, convenient and profitable. Banks come to the aid of those who want to get a credit card. Just picking up the coveted piece of plastic with the bank's logo, many of the clients mistakenly believe that they have become the undivided owners of the card. This is not true.

Issuing bank, what is it?
In fact, the owner of a plastic card, credit or debit, is the issuing bank, or the issuing bank.

An issuing bank is a commercial bank that issues and then serves bank cards. And the client of the bank who has issued and received a bank card for use is its holder.

Issuing bank functions
The first and main function is to issue plastic bank cards into circulation and issue them to customer-users. You came to the bank, submitted the necessary documents and after a while, as a result of the positive results of checking your credit history, you will be opened a bank account and issued a bank card. You can use the card at your discretion, not forgetting about the rules of the universal banking agreement.

The second function is to authorize your plastic card. For example, you are shopping in stores and pay at the checkout with a plastic card. It is the issuing bank, after requesting the store and checking the information about the balance of funds on the card, gives the go-ahead to the transaction or rejects the transaction.

The third function is to write off funds from the bank account of the card user. This means that the issuing bank saves you time. When you pay for goods or services with a bank card, a financial institution, without your participation, automatically carries out all your financial transactions.

The fourth function is to ensure the safety of plastic bank cards. All cards issued by the issuing bank have sufficient degrees of protection. If you, for example, have lost your bank card, you need to immediately contact the bank - he will be engaged in blocking the bank account and his own investigation.

The fifth function is reporting to the card user. You, as a user of a bank card, can demand a monthly statement from the issuing bank - information on financial transactions performed. This service is very convenient for both forgetful users and pedants keeping detailed records of their expenses.

The sixth function is to provide information about the client to other credit institutions. This feature is fully justified in that the exchange of information about the credit history of the cardholder helps prevent fraud (unfortunately, more frequent recently) in the field of obtaining user loans.

The seventh function is close cooperation and open interaction with clients, consideration of their complaints and requests. From the experience of issuing banks, this function for clients is one of the most important when choosing a credit institution. The openness and friendliness of employees, quick and qualified answers to customer questions, the availability of bank branches are the main criteria when choosing an issuer.

 

[CarderPlanet]

Even a child knows today what a plastic card is. In any city in the world, there is hardly a person who is unfamiliar with an ATM. And this is convenient, since carrying large sums of money with you is dangerous in any country in the world, Ukraine, unfortunately, is no exception.

But how they appeared, what they can be used for, in addition to cashing salaries at an ATM, how they work in the financial system, many will be interested to know. And they appeared thanks to banks.

An issuing bank is a bank that issues plastic cards, securities or banknotes.

Issue of credit cards​

The owner of a plastic card, credit or debit, is the commercial bank that issued and services it. A bank client is a cardholder.

Issuing a credit card obliges the bank to perform the following functions:

1. Card authorization. It is the issuing banks, after a request, for example, of a store, that check the account balance, then allow or reject the transaction.
2. Automatically conduct financial transactions. The withdrawal of funds from the account when paying for goods or services does not require your participation.
3. Provide a monthly report on completed financial transactions.
4. Ensure the safety of plastic cards. Block at the first request of the user if the holder has lost the credit card or it is stolen.
5. Provide information about the user to other credit institutions. This is necessary to prevent fraud, which has become quite common in obtaining consumer loans.

Issue of banknotes​

When the state issues new banknotes into circulation, this procedure is called the emission of money.

There are two types of emission:

• Primary, when money enters the economy in non-cash form. The client receives a loan, which is confirmed by the entries in the bank account.
• Secondary, when account holders cash out and the issuing bank provides cash to the account holders.

The issue of money is their issue, which leads to an overall increase in capital in circulation. State-owned issuing banks are engaged in it.

Issue of securities​

A security is a document confirming the holder's right to something. It is possible to exercise, transfer these rights only by presenting a document.

This could be:

• Promotion. It gives the shareholder the right to receive dividends from the joint stock company, the right to vote in the management of the company and the right to part of the property if the company is liquidated.
• Bond. Allows the holder to receive from the issuer the par value of the bond and the percentage fixed in it, within a specified period.
• Bill of exchange. A written monetary commitment to repay the debt. A bill of exchange can be simple - a promise to pay a specified amount to the holder of a bill, and a transferable one - to pay a debt to the person designated in the bill. An overdue bill of exchange usually carries a commission.
• Receipt. A kind of bill of exchange, but it is issued not by the bank, but by the holder of the checkbook, as an order for the bank to issue the specified amount to the recipient by check.

Issue of strict reporting forms​

Strict reporting forms are a financial instrument that replaces a cashier's check. They confirm the receipt of payment by an individual entrepreneur or organization that does not use a cash register.

This could be:

• Sale of newspapers, magazines.
• Miscellaneous trade.
• Sale of ice cream.
• Renting out residential premises.
• Providing some types of services: shoe repair, digging vegetable gardens, babysitting, and the like.

Competent work of the banking system regulates the structure of money turnover, thereby making life easier for all market participants.