CONTENTS
Visa/MasterCard Principal Memberships
Obtaining Mastercard or Visa principal membership is a critical step for any firm seeking to expand its financial services in the card issuing or acquiring space. As a Principal Member, a business gains direct access to major card schemes’ infrastructure, with the ability to own its Interbank Card Association (ICA) number and Bank Identification Number (BIN), and to settle directly with the card schemes. This prestigious membership provides unparalleled control and flexibility within the card scheme ecosystem.
Becoming a Member
There are two ways to become a member of the Card Scheme (CS):
Principal Customer
Typically obtained by high-volume banks and financial institutions with expertise in risk underwriting, credit management, customer billing, and payment collection.
Associate/Affiliate Customer (BIN sponsor)
Typically obtained by smaller credit unions, EMIs, and start-ups that operate with the assistance of a Principal for settlement, reporting, and fee payment.
Key differences between memberships include:
Benefits and Capabilities
Benefits and capabilities differ depending on whether the institution is a Principal or an Associate/Affiliate Member.
Principal
- May issue cards
- May disburse cash
- May acquire merchants
- Holds settlement risk
- Hosts own or third-party processing
- May sponsor others
- Handles reporting (incl. sponsorees)
- Pays ongoing fees (incl. sponsorees)
- Directly licenses an ICA and BIN
- Complies with PS rules
- Registers third-party agents
Associate/Affiliate
- May issue cards
- May disburse cash
- May acquire merchants
- Complies with PS rules
- Registers third-party agents
- Simplified maintenance process
- No need for a settlement bank
Requirements and Specifications
& Information Required
- Regulatory documentation
- Approval or Pre-Approval from local regulator
- Certificate of Incorporation
- Audited Financial Statements
- AML Policies and Procedures
- Projections for issuing/acquiring for collateral placement requirement
- Certificate of Incorporation
- Audited Financial Statements
- AML Policies and Procedures
- Projections for issuing/acquiring
- Sponsorship Consent
& Collateral Placement
- Obligation to settle with CS & open settlement account
- Obligation to establish collateral with CS based on Projections
- Leverages Principal settlement set-up
- May be asked to establish collateral with the Principal
Time frames
The time required to obtain a license from a Payment System may vary depending on the type of financial institution, the quality of the documents, the information provided in the application, etc. The declared processing time for an application is 80-90 days.
About Us
We are a team of former MLROs, compliance officers, and fintech and regtech professionals, dedicated to guiding firms through the regulatory landscape. Since 2019, our team has actively supported customers in building, scaling and expanding fintech businesses by providing a full suite of consulting services.
Our commitment to provide end-to-end support for businesses pursuing regulated activities led to the creation of Fintheo. We are a tech-driven company that strives to offer impeccable service to customers. As part of our proposition, we also offer a purpose-built e-money software platform which is fully DORA-compliant. In 2022, we expanded our services to include Fintheo.Recruitment, a division focused on sourcing fit and proper individuals for director and management roles to support clients during the licensing process.
Fintheo. Competence. Prudence. Result.
Our Case Studies
Our Completed Projects
