Issuing a Credit Card

In the dynamic landscape of the financial industry, the issuance of card products, be it Debit, Prepaid, or Credit, has traditionally been the domain of large financial institutions, typically top-tier banks. However, the advent of the Banking as a Service (BaaS) model has disrupted this norm, allowing banks to extend their licenses to emerging players across various sectors, including fintech and non-financial entities. This democratization enables a broader spectrum of players to engage in card product issuance. Yet, obtaining a license is just one piece of the puzzle. There are additional crucial components, such as the processor and credit card core, which we will delve into below.

Core components

To be able to launch your Credit Card Product and start issuing your customers their credit cards, you will need essential components such as an Issuing license, an Issuing processor, and a Credit Card Core.

Issuing license (License Component)

The Issuing License or Bin (Card Portfolio Identifier Code) is a unique code that identifies your credit card program in the transactional network (e.g., MasterCard, Visa).

Acquiring a BIN (Bank Identification Number) is essential to issuing a credit card product managed by card networks like Visa or MasterCard. There are two primary options:

1. Acquire a Principal BIN License from the franchise: This method involves obtaining the BIN directly, which takes approximately six months. It demands higher initial card volumes to maintain the BIN but becomes more cost-effective as the program scales.
2. Partner with a Bin Sponsor: This option entails renting the BIN from an issuer with a Principal BIN License. It's a quicker process with lower initial costs, albeit higher on a per-card basis. Due diligence from the sponsor issuer is required, lasting 1 to 6 months.

Regulatory consent guide not included. Players must validate accordingly.

Processing (Tech Component)

The Issuing processor establishes a connection to the franchise transaction rails, enabling your card portfolio to conduct transactions.

With the BIN secured, connecting to the card network is vital for portfolio management, covering card issuance, blocking, re-issuance, and more. Direct integration is complex, time-consuming, and requires substantial investment.

Credit Card Core (Tech Component)

A Credit Card Core is a way to configure and manage the loan product associated with the card, covering aspects such as interest calculation, payment applications, statement generation, and more.

MO Manage Credit Card Core

This is where MO's Credit Card Core comes to play.

Additional Key Components

Borrower UI

The Borrower UI is a crucial aspect of the user experience as it serves as an application or web portal designed to present essential information related to credit cards to borrowers. This interface acts as a gateway for the users to interact with and manage their credit card details in a seamless manner.

Loan Origination System

The loan Origination System plays a crucial role in efficiently onboarding and scoring customers. For a comprehensive understanding of this process, please refer to the Origination Phase page. This system guarantees a streamlined and effective process for enrolling new customers into the credit card program.

Payment Gateway

The Payment Gateway is a crucial intermediary between cardholders and financial infrastructure, facilitating secure and swift transactions.

Additional Components

User Interface

The UI is a user-friendly platform available on mobile and desktop web portals and apps, enabling borrowers to easily access and manage their credit card information.