Who issues your credit card? Card brands and the lenders behind them

When you spend on a credit card, the money does not come from Visa or Mastercard, and it does not necessarily come from the brand printed on the plastic. It comes from a lender called the issuer: the firm that approved your application, set your credit limit and interest rate, and to whom you owe the balance. In the UK the main card issuers are banks and building societies, mono-lines (non-banks that specialise in issuing cards) and specialised lenders that focus on particular sectors, such as borrowers with weaker credit histories¹. Consumers can also get cards from finance companies and larger supermarket and store chains².

The issuer is the firm that matters to you in almost every practical sense. It decides whether to lend to you at all, how much and at what price. It can change your credit limit, and in some circumstances your interest rate, subject to rules on notice. It is the firm you complain to, the firm the Financial Ombudsman can order to put things right, and the firm that shares equal legal responsibility with a retailer when something you bought on the card goes wrong. The full list of firms issuing cards in the UK is on our page about UK lenders and credit card issuers.

The market behind your card is concentrated. When the Financial Conduct Authority (FCA) counted firms at group level in October 2015, 24 firms were issuing credit cards in the UK, with four firms holding approximately two-thirds of all credit card balances³. By 2024, 35.3 million UK adults held a credit card, making it the most widely held mainstream credit product in the country⁴.

Who issues credit cards: banks, building societies, card specialists and retailers

Credit cards in the UK are issued by several different kinds of firm, and the differences affect what you get. The FCA describes the main issuers as banks and building societies, mono-lines, meaning non-banks that specialise in issuing cards, and specialised lenders that focus on certain sectors, such as sub-prime borrowers¹. Citizens Advice puts the same point in plainer terms: you can get a credit card from banks, finance companies and larger supermarket and store chains².

For a consumer, the type of issuer often shows up in the product rather than the logo. A large bank may offer a full range of cards alongside current accounts and mortgages. A mono-line issuer specialises in cards and may run a brand you know without offering any other banking. A specialised lender may focus on credit-builder cards, which are marketed as a way to better your credit score and help get your finances on track, and which typically come with lower spending limits⁷. The amount of interest charged varies between providers, so the same purchase can cost different amounts depending on who issued the card².

The market has not been static. The FCA noted in 2015 that five firms had begun issuing their own credit cards in recent years: Metro Bank, Sainsbury's Bank, Tesco Bank, TSB and Virgin Money³. So a card carrying a supermarket's name may well be issued by that supermarket's own banking arm, while others are issued by a finance company behind the scenes. The only way to be certain who your issuer is, and who you owe, is the credit agreement you signed and the name of the firm on your statement. If your card or loan moves to another company, our page on what changes when your credit card moves explains what to expect.

Store and retailer credit cards and the lenders behind them

Store cards are a distinct product, and the lender behind them is not always the shop whose name is on the card. A store card lets you pay for goods over a period of time: it works in the same way as a credit card but often charges higher rates of interest, and it can usually only be used to pay for goods in that chain of shops⁸. Northern Ireland's official consumer guidance makes the same point and adds that the interest rate of any credit card should be clearly displayed on any application form and promotional material⁸.

Regulators treat store card issuers as part of the same credit market. FCA guidance on payment deferrals, for example, applied to regulated firms that issue credit cards and retail revolving credit products, explicitly including store card issuers and catalogue lenders⁹. That matters because the protections you have on a store card, from the rules on rate rises to the right to complain to the Financial Ombudsman, come from the issuer being a regulated credit firm, not from the retailer whose brand appears on the card.

One protection follows the card itself. Section 75 of the Consumer Credit Act makes your card provider jointly liable with the retailer for any breach of contract or misrepresentation¹⁰, and official guidance states that the credit card provider has equal responsibility with the seller for faulty, unsatisfactory or undelivered items¹¹. Because that right runs against the issuer, a store card can carry the same legal protection as a bank credit card, provided the purchase is within the Section 75 threshold. The details, including the £100 to £30,000 range and its exclusions, are on our pages about Section 75 and store cards and retailer credit cards.

Card issuer or card scheme: why Visa and Mastercard do not lend to you

The most common confusion about credit cards is the role of Visa and Mastercard. These are card schemes, not lenders. Card payment systems enable people and organisations to make payments by card by providing a network that joins up cardholders, issuers, merchants and acquirers¹². The Payment Systems Regulator describes the same structure from the payment side: Mastercard and Visa Europe connect issuers of credit and debit cards with acquirers and the merchants and retailers that accept card payments in the UK¹³. The FCA notes that issuers are members of a card scheme, for example Mastercard or Visa, to which the credit card they have issued is tied¹⁴.

So when you buy something, two different firms are involved on the money side. Your issuer lends you the money and you owe it the balance. The scheme provides the network that carries the payment to the shop's acquirer, the payment service provider that contracts with merchants to accept and process card payments¹². The scheme's rules also sit behind chargeback, the dispute scheme operated by the card schemes Visa, Mastercard and American Express, which works in a similar way to Section 75¹⁰.

The schemes are paid for this role by fees charged to businesses, not by lending to consumers. The Payment Systems Regulator's final report on scheme and processing fees found that Mastercard and Visa increased their core scheme and processing fees to acquirers by at least 25% since 2017, and that the two schemes do not face effective competition, with fees rising and a lack of clarity over what businesses must pay to accept card payments¹⁵. Those fees sit between the shop and its bank, but they feed into what businesses pay to accept cards, which is why the ban on credit card surcharges matters to consumers. None of it changes the basic point: if you have a complaint about your credit limit, your rate or your balance, it is your issuer you deal with, not the scheme.

How many issuers there are: 24 firms, four holding about two-thirds of balances

The UK credit card market is large but concentrated. The FCA's market study found that as at October 2015, 24 firms were issuing credit cards in the UK, counted at group level, and that there are a small number of large providers, with four firms holding approximately two-thirds of all credit card balances³. An earlier stage of the same study, in October 2014, put the number of issuers, meaning firms that are members of payment schemes that can issue cards, at 33, serving around 30 million credit card consumers with 59 million cards in issue¹⁶. The later, lower figure reflects counting at group level, where several brands are treated as one firm.

Concentration is even sharper in some parts of the market. In the higher risk segment, the FCA's final findings in 2016 reported four firms accounting for virtually all balances¹⁷. Outside the card market proper, a large tail of consumer credit firms exists, with around 2,600 firms owning 1% of outstanding consumer credit¹⁸, but card balances sit overwhelmingly with the large issuers.

On the consumer side, the numbers have grown. In 2024, 35.3 million adults held a credit card, and credit cards, at 65% of all UK adults holding one now or in the last 12 months, remained the most widely held mainstream credit product, ahead of overdrafts at 21%⁴. Less than a third of cardholders, 10.1 million, actually revolved a balance, meaning they carried debt from month to month⁴. Earlier FCA estimates put around 60% of UK adults holding at least one card, and around 46% of credit cardholders holding two or more³. Many people therefore have several cards, potentially from several different issuers, and each issuer makes its own decisions about each account.

What the issuer decides: approval, credit limit and interest rate

Every issuer makes three decisions about you: whether to lend at all, how much, and at what price. Providers do not have to give you a credit card, and your application may be refused if your credit score is low or you are already heavily in debt¹⁹. When you apply, the provider checks your credit record with a credit reference agency to see if you are creditworthy¹⁹. Lenders use that information, along with what you tell them on the form, to decide whether to accept you and on what terms²⁰.

There are firm limits on the reasons for refusal. Credit card companies cannot refuse your application because of your race, sex, disability, religion, sexuality or where you live²¹. And if a lender refuses you credit after checking your credit reference file, it must tell you why credit has been refused and give you the details of the credit reference agency it used²⁰. Being refused credit despite a good credit rating is also listed as one of the warning signs of identity theft, so an unexpected refusal is worth investigating²².

The credit limit and the interest rate are set by the issuer, and both vary. Credit-builder cards, aimed at people with weak credit histories, come with lower spending limits⁷. The FCA has also examined how issuers use risk-based pricing and risk-based credit limits across the market²³. The practical consequence is that two people applying to the same issuer on the same day can be approved for different limits and different rates. Our page on credit card limits explains how limits are set, raised and lowered, and applying for a credit card covers the process step by step.

The rate you get may not be the advertised APR

The rate in an advert is not a promise of the rate you will be offered. The representative APR rules require that the representative APR must be an APR at or below which at least 51% of consumers entering into agreements as a result of the advertisement are expected to pay²⁴. In other words, nearly half of accepted applicants can legally be charged more. Advertisements must label the figure as "APR" or "annual percentage rate" or "annual percentage rate of the total charge for credit"²⁵.

What happens in practice is uneven in both directions. FCA research found that in the most commonly occurring case, 43% of customers received an interest rate six percentage points lower than that advertised, while very few customers, around 2.5%, got interest rates more than eight percentage points above the APR advertised²³. So risk-based pricing often works in the customer's favour, but the advertised figure is only a guide. Awareness is low: older official research suggested that over 75% of credit card holders did not know what APR applied to their card²⁶.

The rate that matters is the one in your credit agreement and on your statement. If you want to understand how that rate translates into charges, see how credit card interest is charged and our explanation of credit card APR and representative APR.

What issuers can change: limits, rates and notice of a rate rise

Issuers can change the terms of your account, but the rules give you notice and, for rate rises, a right to refuse. If your credit card company increases the interest rate on your card, you are given 60 days to reject the increase and pay off your balance at the existing interest rate⁵. The FCA's rulebook states this as a requirement: a firm proposing to increase the interest rate on a credit card or store card must permit the customer sixty days, from the date of the firm's notice of the proposed increase, to give notice requiring the firm to close the account²⁷.

Credit limit increases carry their own notice rules. For a regulated credit agreement for a credit card or a store card, the firm must inform you of a proposed credit limit increase at least 30 days before the increase comes into effect²⁷. For retail revolving credit agreements other than store cards, the notice period is at least 28 days²⁷. These rules cover increases; issuers can lower a limit without the same advance notice, which is covered on our page about when your provider cuts your limit.

There is also a restriction on raising rates for customers in trouble. Where a customer is at risk of financial difficulties, a firm under a retail revolving credit agreement or a regulated credit agreement for a credit card must, other than where a promotional rate of interest ends, not increase the rate of interest under the agreement²⁸. So a promotional rate ending can move you to a higher rate, but a firm cannot use a rate rise to squeeze a customer it knows is struggling. The mechanics of refusing a rise, and the deadline, are on our page about rejecting an interest rate increase, and the wider picture is on when a card changes its rate or terms.

What issuers must do if you are in persistent debt

Since 2018, issuers have had active duties toward customers who pay more in interest and charges than they pay off the balance. Firms must monitor a credit card customer's repayment record and any other relevant information held by the firm, and take appropriate action where there are signs of actual or possible financial difficulties²⁹. Citizens Advice summarises the trigger: credit card companies must help you if you have been in credit card debt for more than 18 months²¹.

If you are in persistent debt, your credit card company will write to you and ask you to increase your monthly payment⁶. The rules behind that letter are specific. A firm must take reasonable steps to assist a credit card customer in persistent debt to repay the balance more quickly and in a way that does not adversely affect the customer's financial situation³⁰. The required contact must explain that increasing payments reduces the cost and time to repay, provide the contact details of a debt advice body, set out the options for increasing payments and request a response within a specified reasonable period, and inform the customer that the card will be suspended or cancelled if no response is received³⁰.

The aim of these rules is to stop customers paying interest indefinitely without clearing what they owe. If the higher payments are unaffordable, the issuer still has obligations, and forbearance options are explained on our page about when you cannot afford to pay more. The full rules, including what happens if your account is suspended, are on our page about persistent credit card debt rules.

Minimum payments: around 3% or £5

The minimum payment is set by the issuer, and it is usually small by design. If you do not pay off the balance each month, you will be asked to repay a minimum amount, typically around 3% of the balance due or £5, whichever is higher¹⁹. The problem is what that payment achieves: minimum payments usually only cover the interest and charges on a debt, so the amount you owe falls very slowly⁶.

Because of this, issuers have a duty to warn customers who persistently pay only the minimum. Your credit card company should contact you to warn you of what might happen if you only make minimum payments⁵. That warning feeds into the persistent debt process described above: a customer who pays only the minimum for long enough will be classed as in persistent debt and receive the letter asking them to pay more.

For anyone trying to clear a balance, the practical point is that paying anything above the minimum shortens the debt's life and cuts its cost. Our pages on credit card minimum payments, how long paying only the minimum takes and ways to clear card debt sooner set out the numbers and the options, including whether a balance transfer could reduce the interest while you repay.

Fees and charges set by the issuer

Almost every charge on a credit card is set by the issuer, and they vary between providers. Citizens Advice lists the usual triggers: you will usually be charged for going over your credit limit, for using the card abroad and for late payments, and some providers also charge an annual fee². Going over the credit limit may trigger a fee on its own², and most credit card companies will charge a commission charge when you use your card abroad⁵.

The charges to check in your credit agreement before you spend are:

• Over-limit fees: the provider may charge a fee if you go over your credit limit²
• Late payment fees: charged when a required payment is missed²
• Foreign use charges: most issuers add a commission charge for use abroad⁵
• Annual fees: some providers charge one, others do not²

Not every cost in the card system is paid by the cardholder. The fees that shops pay to accept cards are charged by the schemes and their processors, and the rules on interchange include requirements for an acquirer bank to give merchants information about the costs of accepting different brands and categories of cards³². Those are business-to-business charges, but they explain why some retailers prefer certain cards or payment methods. For cardholders, the charges that matter are the ones in the credit agreement, and they are listed in our guide to credit card fees and charges, with the specific rules on late payment and over-limit charges and using a card abroad on their own pages.

Why knowing your issuer matters for protection and complaints

Knowing who your issuer is matters because your rights run against that firm, not against the brand on the card or the scheme on the payment network. Credit cards are regulated under the Consumer Credit Act 1974, the Payment Services Regulations 2009 and the FCA's Consumer Credit Sourcebook (CONC)²⁴. The Consumer Credit Act's protections, including Section 75, sit on top: Section 75 makes your card provider jointly liable with the retailer for any breach of contract or misrepresentation¹⁰, and the credit card provider has equal responsibility with the seller for faulty, unsatisfactory or undelivered items¹¹. Our page comparing Section 75 and chargeback explains which route fits which problem.

Your issuer is also your first port of call for payment disputes. If you can provide evidence of a breach of contract, for example goods that were not delivered or a service that was not carried out, you can ask your card provider to attempt to recover the payment under chargeback³³. For recurring card payments, your card issuer must stop the payments once you have asked, even if you have not contacted the business, and it cannot insist that you contact the business first; if you did not consent to the payments, the issuer should stop them and give you your money back³⁴. Official guidance confirms that your bank or card provider must cancel a continuous payment authority when asked³⁵.

Two further points of protection follow the issuer. First, if a financial firm has not followed the rules, you can complain to it and then to the Financial Ombudsman Service, and Citizens Advice explains how to check whether a financial service has followed the rules²¹. Second, accessibility obligations sit with issuers too: under the Accessible Cards Code of Practice, issuers may run down existing accessible card stock to avoid waste, and customers can ask for a new card that follows the Code as soon as that issuer has them available³⁶. If you are unhappy with how your issuer has handled things, the process is on our page about complaining about a credit card provider.

Getting help if you cannot repay your card issuer

If you cannot repay what you owe, the starting point is that the issuer has duties toward you. If you are not able to pay back what you owe, a company must help if you are struggling, which can include reducing or cancelling any interest or fees²¹. Card providers may be able to agree a payment plan with you⁶. These are not favours: they are part of the regulatory framework described above, and the persistent debt rules add a duty to help you repay more quickly after 18 months²¹.

Free, independent help is available. StepChange, a debt advice charity, sets out how to pay off credit card debt, including how minimum payments work and what to do about persistent debt⁶, and its guidance on cards for people with bad credit includes practical steps such as making at least the minimum payments if you cannot pay in full, and opting out of automatic credit limit increases⁷. Citizens Advice explains your rights when a lender has not followed the rules²¹. In Scotland and Northern Ireland, where some debt rules and advice routes differ, see our pages on credit card debt in Scotland and credit card debt in Northern Ireland, and the general options are on our page about help with credit card debt and in our wider guide to debt.

The worst response to unaffordable card debt is silence. Ignoring the issuer's letters does not stop the process: under the persistent debt rules, a card may be suspended or cancelled if the customer does not respond³⁰. Responding, even to say the requested payments are unaffordable, keeps you inside the framework where the issuer must treat you fairly, and free debt advice can help you do that before the situation escalates.