A customer financial institution, also known as an

issuer

, provides payment cards to and underwrites lines of credit for their customers. The issuer provides monthly statements and collects payments. The issuer must follow the rules of the payment card companies to which they belong.

Payment networks manage communications between acquirers and issuing banks. They also develop industry standards, support their brands, and establish fees for acquiring institutions.

Some payment networks, such as Visa and Mastercard, are trade associations that do not issue cards. Issuers are members of these associations, and they issue cards under license from the association.

Other networks, such as Discover

and American Express

, issue their own cards. Before you process cards from these companies, you must sign agreements with them.