iPeakoin
Products
Resources
Solutions
Company
Back
Future of Fintech
Introduction to a card program manager
If you are going to start a card program, you need to understand the scope of card program management. From the full list of players involved to the steps required before launching or expanding a payment program, these insights can help you manage resources, navigate the complexities of a program management approach.
 
You may have had fundamental knowledge of card managers with concerns. We will illustrate this today.
 
Being your own card program manager means more control over your business. Meanwhile, you will have to handle more work, including connecting resources, partnership with banks, compliance and regulations, etc.
 
A managed card program will enable you to spend less time and effort on network maintenance, ban partnership, or third-party coordination.
 
Before deciding which approach you should choose, let's have a thorough understanding of their differences.
 

Parties involved in a card program.

Before launching your card program, you should basically learn the parties that are involved in a card program, which will help you better when making the decision.
 
Partner bank
Also referred to as the sponsor bank, BIN sponsor, or issuing bank, this party holds the principal issuing licenses with the card network(s) that allows them to issue cards.
 
Card network (e.g. Visa or Mastercard)
The role of a card network is to facilitate transactions between merchants and card issuers. To do this, card networks create virtual payment infrastructures and charge merchants interchange fees for processing consumers’ credit or debit card transactions.
 
Issuer processor (e.g. Marqeta，Comdata)
An issuer processor connects an issuer – which is usually a bank, fintech or payment firm – directly with the networks to provide the systems of record, manage the issuance of cards, authorise transactions, and communicate with settlement entities.
 
Card manufacturer
If you are going to issue physical cards, you will need a card manufacturer. They will help to provide the embedding and programming EMV chips in the card.
 
Digital wallet providers (e.g. Apple, Samsung, Google)
A digital wallet (or electronic wallet) is a financial transaction application that runs on any connected device. It allows you to pay when you're shopping using your device so that you don't need to carry your cards around. Google Pay and Apple Pay are examples of more well-known digital wallets.
 
Card program manager (e.g. you or iPeakoin)
A Program Manager is a non-bank entity that contracts with an Issuer to establish, market, and operate prepaid card programs. Typically, Program Managers are responsible for establishing relationships with Processors and Distributors.
 

Card program management

When you work with a card-issuing platform (such as an issuer processor or CaaS provider), you generally have two options for structuring that relationship:
 
-- Partner-managed card: There may be a fintech like iPeakoin that will work as your program manager and takes a more active role in the relationship. At its most robust, the program manager is responsible for directing all aspects of the company’s card program, from program integration, technical implementation and launch to managing cardholder customer service to ensure program success is achieved. iPeakoin has pre-approved programs to increase speed to market and avoid long contract cycles with banks.
 
-- Self-managed card: In this sense, you will establish a direct relationship with a bank and set up the card program on your own. This means that you shall take on the majority of the responsibilities in managing the card program and the processor’s role is restricted to ensuring card payments go through.
 
Let's have a clearer understanding of the responsibilities that you will take under the two approaches.
 
SEFL-MANAGED
PARTNER-MANAGED
▶ Choose networks.
▶ Acquire a bank identification numer(BIN) range.
▶ Coordinate with the bank card issuer.
▶ Choose a processor or a processor issuer.
▶ System design and optimization.
▶ Manage internal reviews and approvals.
▶ Secure the required reviews and approvals from external partners.
▶ Customer Due Diligence (CDD) and fraud management.
▶ Launch card program.
▶ Navigate sponsoring/issuing bank and payments network rules and standards, monitoring transactions to help maintain compliance with applicable laws.
▶ Choose program manager
▶ Manage internal reviews and approvals.
▶ Launch card program.
▶ Comply with relevant rules and regulations from card program partner.
Choosing a Program Manager over processor only means that you will only need to manage one contract instead of several. Your Program Manager will support you during program implementation through to launch with ongoing support post-launch.
 

WHY CHOOSE IPEAKOIN?

As a leading digital banking and payments fintech, iPeakoin offers solutions across the payment value chain, from authentication to issuing, settlements, cross-border payments and a range of in-house technology services.
 
By engaging with the iPeakoin program, a program can be delivered in as little as 12 weeks. You will be freed up to focus on your core business – generating sales, building your brand, raising capital etc. Whether you’re an enterprise or a start-up, there is no need to reinvent the wheel when there’s already a turnkey solution that’s ready for your brand.
 
With an experienced team in payments, and multiple innovative solutions combined with our in-house compliance capabilities, we have the clients’ needs covered end-to-end.
 
Check out our CaaS program and get in touch for a program review of your business.