What is the role of the card issuer in the use of plastic money?

The card issuer plays a crucial role in the use of plastic money, such as credit cards, in India. Here are the key roles and responsibilities of the card issuer:

1. Issuance of cards: The card issuer, typically a bank or financial institution, is responsible for issuing credit cards to eligible individuals or businesses. They evaluate the applicant's creditworthiness, income, and other factors to determine the credit limit and terms of the card.

2. Account management: The card issuer manages the credit card accounts, including maintaining customer records, monitoring transactions, and sending monthly statements. They provide online or mobile banking services, allowing cardholders to access their account information, track transactions, and make payments.

3. Setting credit limits: The card issuer sets the credit limit for each cardholder based on factors like income, credit history, and repayment capacity. The credit limit represents the maximum amount the cardholder can borrow on the credit card.

4. Interest and fees: The card issuer determines the interest rates applicable to outstanding balances on the credit card. They also establish various fees associated with the card, such as annual fees, late payment fees, cash advance fees, and foreign transaction fees. It's important for cardholders to be aware of these charges and terms.

5. Security and fraud prevention: Card issuers implement security measures to protect cardholders against fraudulent transactions. They monitor transactions for suspicious activities and may contact the cardholder to verify unusual transactions. In case of a lost or stolen card, the card issuer should be notified immediately to block the card and prevent unauthorized usage.

6. Customer service: The card issuer provides customer support services to address inquiries, disputes, or issues related to the credit card. They handle customer queries, assist with transaction disputes, and provide guidance on card usage and benefits.

It's important for cardholders to understand the terms and conditions set by the card issuer, including interest rates, fees, and repayment obligations. Responsible credit card usage, timely payments, and regular communication with the card issuer can help ensure a smooth and beneficial relationship between the cardholder and the card issuer.