Starting Credit Card Business ?

If you/your business want to enter unsecured lending business or start issuing cards below is a consice checklist that I have put together for your success.

Launching a credit card for a bank involves several technical activities and integrations to ensure the card can be issued, processed, and used by customers securely.

1. Licensing and Agreements:

- Scheme License: The bank needs to obtain a license from VISA/Mastercard to issue their credit cards. This involves legal and financial agreements.

2. Banking System Integration:

- Core Banking System: Ensure that the bank's core banking system is capable of managing credit card accounts alongside other account types.

- Customer Data Integration: Integrate customer data into the banking system, including customer identification, contact information, and financial history.

3. Card Processing Platform:

- Card Management System (CMS): Implement or integrate a CMS to handle card issuance, activation, blocking, and reissuance.

- Authorization and Transaction Processing: Integrate with VISA/Mastercard's payment network to authorize and process credit card transactions.

4. Card Personalization:

- Card Printing and Embossing: Set up card personalization facilities or integrate with a third-party card personalization service for physical card production.

- EMV Chip Integration: If issuing EMV (chip) cards, integrate EMV technology into card production.

5. Payment Gateway Integration:

- Integrate with a payment gateway or processor to route transactions to VISA/Mastercard's network securely.

6. Security and Compliance:

- PCI DSS Compliance: Ensure Payment Card Industry Data Security Standard (PCI DSS) compliance for data security.

- Tokenization: Implement tokenization for secure transaction processing.

- Fraud Detection: Integrate fraud detection and prevention systems.

7. Cardholder Services:

- Mobile Banking App: Develop or integrate a mobile app for cardholders to manage their accounts, check balances, and make payments.

- Online Banking: Implement online banking services for cardholders to access their accounts and statements.

8. Customer Support:

- Set up customer support systems and train support staff to assist cardholders with inquiries, disputes, and issues.

9. Regulatory Compliance:

- Ensure compliance with local, regional, and international financial regulations and standards.

10. Marketing and Activation:

- Develop marketing campaigns to promote the new credit card offering.

- Implement card activation processes, whether through IVR systems, SMS, or other methods.

11. Reporting and Analytics:

- Implement reporting and analytics systems to monitor card usage, track key metrics, and assess the performance of the credit card program.

12. API Integration:

- Develop or utilize APIs to enable third-party integrations, such as for loyalty programs, rewards, and other value-added services.

13. Cardholder Data Protection:

- Implement strong security measures to protect cardholder data, including encryption, access controls, and regular security audits.

14. Vendor Relationships:

- Establish relationships with vendors, including VISA/Mastercard, payment processors, card manufacturers, and software providers.

15. Testing and Quality Assurance:

- Thoroughly test the entire credit card issuance and processing ecosystem to ensure it functions correctly and securely.

16. Compliance Testing:

- Conduct compliance testing with VISA/Mastercard to ensure the card program meets VISA/Mastercard's standards and requirements.

17. Training:

- Train bank staff on how to use the systems, process credit card applications, and assist customers effectively.

18. Launch:

- Once all technical activities and integrations are completed and the necessary approvals are obtained, launch the Mastercard credit card program.

19. Ongoing Maintenance:

- Continuously monitor and maintain the systems, update security protocols, and stay up-to-date with industry standards and regulations.

Launching a credit card is a complex process that involves numerous technical, regulatory, and operational considerations. Ensure you collaborate with experienced professionals and follow best practices to ensure the success and security of your credit card program. All the Best !