A financial organization or bank that grants credit or credit cards through card associations, the issuing bank opening a letter of credit in the favor of a seller or exporter (beneficiary) the letter of credit is then forwarded onto an advising bank where it will commit itself to honor demand drafts. So, the issuing bank promises to make good on charges made by the credit card holder.
An issuing bank is also known as an opening bank and as an individual, you will pay fees to an issuing bank. When you open a credit card account, the fees associated with your card when you make purchases on credit will incur fees; it is the issuing bank that will receive the fees that you pay.
The issuing bank is also responsible for the security of the individuals personal information. Additionally it performs any necessary account maintenance, including issuing new cards, resolving disputed charges, setting card limits, suspension or charge blocking, and initial card activation.