What is an Issuer?
An Issuer is the bank or institution that provides customers with payment instruments such as debit cards, credit cards, prepaid cards, or UPI IDs.
How Issuers Work
- A customer makes a payment using their issuer’s card or UPI ID.
- The issuer authenticates the transaction (PIN, OTP, biometric).
- The issuer approves or declines based on account balance, limits, or fraud checks.
- If approved, funds are released to the acquirer for merchant settlement.
Benefits of Issuers
- Access to Credit/Debit: Issuers empower consumers with digital payment tools.
- Security Features: Fraud checks, two-factor authentication, and spending limits.
- Rewards & Loyalty: Issuers often provide cashback, points, or discounts.
Is Issuer Authentication Secure?
Yes. Issuers are RBI-regulated and must comply with two-factor authentication, PCI DSS, and NPCI rules.
FAQs
What’s the difference between issuer and acquirer?
Issuer = customer’s bank. Acquirer = merchant’s bank.
Do all banks issue UPI IDs?
Yes. Any RBI-approved bank integrated with NPCI can issue UPI handles.
How does Phi Commerce interact with issuers?
Phi Commerce connects seamlessly with issuers via networks like NPCI, Visa, Mastercard, and RuPay to deliver smooth, high-success payments.