Issuer & Acquirer Processor

Question 1

The issuer processor needs to be able to parse…

Answer 1

an ISO8583 message from MasterCard in real-time and give a response in less than three seconds

Question 2

An Issuer Processor will either…

Answer 2

approve or decline a transaction

Question 3

Reason why there is a processor

Answer 3

The merchant acquirer needs a technology provider than can connect with the payment networks

Question 4

Issuer Processor

Answer 4

• Is not a bank
• Is not an issuer

“is there to connect issuers to card schemes”

Question 5

Issuer Outsourcing

Answer 5

• Think of it as the issuer outsourcing the processes of authorisation, clearing, and settlement
• In the same way a bank wants to provide acquiring services and outsources the process
  to a non-bank acquirer (hence the term “processor” being used in the US
  for these entities)