With growing pressure on traditional revenue models, banks must identify and develop new income streams to remain competitive. For banks with no credit program or looking to reinvigorate the one they have, ICBA Payments offers competitive credit card models that help bring non-interest revenue to community banks. 

ICBA Payments offers multiple credit card issuing options for community banks depending on bank liability, underwriting, and program management preferences.

To start, it’s helpful to understand what we mean by the terms: Direct Issuer and Agent Issuer. Both refer to credit card issuing, but there is a difference in bank responsibility, risk, and revenue.

Direct Issuing

Direct issuers have more control over and liability for their card program, while agent issuers earn a portion of their revenue while their customers get a bank-branded card and customer service that is as reliable as what they get at their own local bank. Both options give banks non-interest income.

Direct issuing banks:

  • Keep all revenue
  • Make all underwriting and card product decisions
  • Set rates and fees
  • Are liable for all compliance
  • Are responsible for collections (may choose to outsource)
  • Are responsible for staffing, training, sales efforts, and account monitoring and growth

Taking on these responsibilities lets a direct issuer maximize their benefits: with in-house dedicated payments staff they assume full control over all decisions and keep all revenue.

ICBA Payments Upgrades Your Direct Issuing Program

ICBA Payments provides key value-added benefits to direct issuers that enhance their program. By partnering with top-of-industry processors and vendors, we can offer banks:

  • Preferential pricing
  • Network sponsorship
  • Access to fintech solutions geared specifically toward community banks
  • Fraud Loss Protection Plan to reduce losses on card fraud

Agent Issuing

For banks who prefer not to be direct issuers (or do not have dedicated in-house staff), agent issuing is a great option. Agent issuers partner with another bank that issues cards to their customers on their behalf. ICBA Payments’ subsidiary bank, TCM Bank, N.A., provides agent services to community banks.

Agents issuing banks receive:

  • Some non-interest income
  • A competitive product suite with superior service
  • No risk
  • Zero liability*

TCM Bank Provides No Risk Credit Card Options

TCM gives its agent issuers superior community bank service, compliance relief, improved market positioning, speed-to-market technology, and marketing support. For existing direct issuers who are looking at options for their card portfolio, TCM Bank also offers portfolio review and portfolio purchase options.

Contact Us to Learn More

If you would like to explore any of these credit issuing options, contact the ICBA Payments Client Relations Department at [email protected] or 800.242.4770, or visit our website at icba.org/cardprograms.

*TCM agent banks also have the option to guarantee accounts which holds some liability.