4.3 Selecting an Issuer (BIN Sponsor) or Setting up for Self-issuing

An important consideration when launching a card programme for the first time is deciding whether to use the services of an existing card issuer or to start off self-issuing. Below are some important considerations:

• How quickly do you need to launch your card programme?

• Are you compliant with your local or regional financial services regulations around handling of customer money?

• Do you have sufficient reserve capital to set up as an issuer?

• Do you have the necessary financial systems in place to support self-issuing?

• Do you have expertise in the handling of financial messages, clearing, reconciliation and settlement processes associated with being an issuer?

• What are the long-term objectives for your programme? For example, once you are set up as an issuer, do you intend to offer issuing services to other potential program managers?

Setting up as an issuer involves additional regulatory, financial and payment processing requirements and costs.

Using the services of an existing issuer can save considerable time and reduce the financial outlay associated with setting up as an issuer. If speed of launch and initially minimising costs is a concern, then using an existing issuer may be a better option.

Thredd has connections to a wide range of card issuers globally, who are already connected and set up in our systems. If your issuer is not currently set up, we can add them (additional setup costs and time may apply).  Your Thredd business development manager can help you explore some of these considerations.

It is relatively straightforward, when using Thredd, to upgrade to self-issuing at a later stage1 Subject to additional setup costs and card BIN migration. You will require dedicated scheme identifiers and support from your BIN Sponsor..