An institution that issues debit cards and is responsible for cardholder accounts is referred to as what?

• A. Card association
• B. Issuer
• C. Service provider
• D. Processor

Answer: (B)

The institution that issues debit cards and manages cardholder accounts is best described as an issuer. This is a financial institution, typically a bank or credit union, that provides a card directly to consumers and is responsible for the management of the associated accounts. Issuers are involved in the processing of transactions, maintaining customer account balances, and ensuring compliance with relevant regulations.

In contrast, a card association refers to the networks that facilitate transactions between card issuers and merchants, such as Visa or MasterCard. Service providers typically refer to companies that offer technology or services to support card transactions but do not directly issue cards. A processor handles the technical aspects of payment transactions, such as routing them between banks, but does not manage cardholder accounts or issue cards directly. Thus, the term "issuer" accurately encapsulates the role described in the question.