Agent Bank

An agent bank is a financial institution that participates in the acquiring program of another bank. In this arrangement, the agent bank refers its own customers or card applicants to the bank that administers the acquiring program. Typically, this involves the agent bank outsourcing certain banking functions like card issuance and processing to the acquiring bank. This relationship allows the agent bank to offer broader financial products and services to its customers without having to manage these services directly, leveraging the infrastructure and expertise of the acquiring bank. The acquiring bank, in turn, benefits from an expanded customer base and increased transaction volumes.