1.7 Using the Services of an Issuer vs. Self-Issuing

Different regions have different regulatory requirements for becoming an issuer.

Issuers have a direct relationship with the scheme as a principal scheme member. Becoming an issuer enables your organisation to negotiate better interchange rates and have more control and flexibility over your card programme.

Issuers have stringent regulatory and reporting requirements and must have additional reserve funds for settlement in place to operate as an issuer.

The majority of Thredd program managers start out using the services of an existing issuer. The need for additional finance, plus the operational requirements for regular transaction reconciliation and reporting, are some of the reasons why many program managers decide to launch their card programme using the services of an existing issuer.

The additional costs and time required to set up as an issuer, plus lack of card issuing experience, are also important factors when deciding whether to set up as an issuer or use an existing issuer.

If you are using Thredd as your issuer-processor, it is relatively straightforward to upgrade to self-issuing at a later stage1 To upgrade you will need your own dedicated scheme identifiers and the support of your current BIN sponsor.