An issuing bank is a bank

Bank

A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

 that offers card association

Card association

A card association is a network of issuing banks and acquiring banks that process payment cards of a specific brand.-Examples:Familiar payment card association brands include Visa, MasterCard, American Express, Discover, Diner's Club, and JCB. Visa, MasterCard and American Express issuers co-brand...

 branded payment card

Payment card

The term payment card covers a range of different cards that can be presented by a cardholder to make a payment.-Types:Typically a payment card is backed by an account holding funds belonging to the cardholder, or offering credit to the cardholder. Payment cards can be classified into types...

s directly to consumer

Consumer

Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...

s.

Detail

The issuing bank assumes primary liability for the consumer's capacity to pay off debts they incur with their card.

In the case of credit card

Credit card

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...

s, the issuing bank extends a line of credit

Line of credit

A line of credit is any credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of...

 to the consumer. Liability for non-payment is then shared by the issuing bank and the acquiring bank

Acquiring bank

An acquiring bank is the bank or financial institution that processes credit and or debit card payments for products or services for a merchant. The term acquirer indicates that the bank accepts or acquires credit card transactions from the card-issuing banks within an association...

, according to rules established by the card association brand.