What Is A Credit Card Issuer?

A credit card issuer is an institution that issues, or gives, credit cards to clients. They do this on behalf of the credit card networks, like Visa, Mastercard, and American Express.

While the terms "issuer" and "network" are often used interchangeably when discussing credit cards, they're actually very different things. When you apply for a credit card, you submit an application to a credit card issuer, and then, if approved, you receive a credit card that belongs to a network like Amex or Visa.

The article below further explains what credit card issuers are and how they fit into the credit card landscape in Canada.

Credit card issuers vs. networks

With only one exception, credit card issuers and networks are two different companies:

• Credit card issuers issue the credit cards. They're the ones who provide the rewards, insurance, and benefits.
• Credit card networks process your payments. They essentially handle the communication between the retailer and your credit card issuer.

Most of the time, your bank and network will differ. In Canada (and many other countries), there is one major exception: American Express. Amex operates its own credit card network and issues credit cards.

But other banks in Canada also issue Amex credit cards, including Scotiabank.

Canada has three credit card networks

In Canada, we have three major credit card networks:

• Visa
• Mastercard
• American Express

Credit card networks all operate on the same basic principles. What sets them apart is the perks they provide and where you can use them.

• Visa Infinite and World Elite Mastercard offer exclusive benefits
• American Express has Amex Offers and presale tickets with Front of the Line
• If you shop at Costco, you can only pay with Mastercard – Costco warehouses don’t accept Visa or Amex

Other countries may have additional credit card networks, such as Discover in the United States. Discover is a network that also issues credit cards.

Major credit card issuers in Canada

There are plenty of banks that issue credit cards in Canada, and here are some of the most popular:

Other credit card issuers

Aside from the major players in the Canadian financial landscape, there are plenty of smaller credit card issuers:

• Subsidiaries of the big banks – Simplii and Tangerine
• Fintechs in the credit card game, like Neo
• Credit unions that issue credit cards, usually a Collabria card
• Retailers with their own credit cards – popular ones include Loblaws, Canadian Tire, Home Depot, and Walmart

Does the credit card issuer matter?

The credit card issuer doesn’t typically matter. What does matter is finding the credit card that suits you best.

Sure, having a credit card with your primary bank can be handy for paying your bills – and it’s one less login to remember. But focusing on this limits you and can eliminate some valuable credit cards from your consideration.

FAQ

How do I know my credit card issuer?

You can find the name of your credit card issuer on the front of your card, with more details on the back of the card, including contact information. You can also log into your credit card account for more details.

Who issues credit cards in Canada?

Lots of financial institutions issue cards in Canada. This includes American Express, BMO, CIBC, MBNA, RBC ,Scotiabank, TD, Tangerine, Simplii, and Neo Financial. Retailers like Walmart, Costco, Canadian Tire, and others also issue credit cards.

Who are the top 5 credit card issuers?

As you might guess, the biggest banks in Canada tend to take the lead when it comes to issuing credit cards. RBC, TD, CIBC, BMO, and Scotiabank are all leaders when it comes to providing credit cards to Canadians.

Who is the issuer of Scotiabank credit card?

Scotiabank is the issuer, but they’re the only issuer in Canada that offers credit cards on all three networks: American Express, Mastercard, Visa. This gives you the most flexibility in choosing a credit card.

Does RBC issue credit cards?

Yes, RBC issues 19 personal credit cards. It offers a variety of types of personal cards, including low interest rates, cash back, student-focused, travel, and rewards. RBC also offers five business credit cards, including travel and cash back options.