Becoming a licensed issuer or merchant acquirer with Visa and/or Mastercard requires the submission of detailed information during the application process. This step ensures that all applicants are appropriately vetted and comply with relevant regional regulatory requirements.

Once approved, the licensed entity gains access to the full suite of issuing and acquiring capabilities provided by the schemes, along with a broad range of complementary products, APIs, and services that support operational efficiency and innovation.

Principal Membership

Principal clients typically consist of larger institutions with established expertise in areas such as risk underwriting, credit management, customer billing, and payment collection.

A Principal Membership with Visa or MasterCard allows financial institutions to issue their own branded cards, gaining full control over card programs and earning interchange fees directly. As part of the Principal Membership, the institution is assigned a BIN (Bank Identification Number), which identifies it as the card issuer. The BIN is crucial for processing transactions, enabling the institution to manage risk, set terms, and fully control its card programs, further solidifying its position in the market.

Principal member capabilities:

May issue cards
May disburse cash
May acquire merchants
Holds settlement risk
Hosts own processing
May sponsor others
Handles reporting (and sponsorees)
Pays ongoing fees (and sponsorees)
Directly licenses a BIN
Complies with Visa / MC rules
Registers third party agents

Associate Membership

Associates (Sponsored) are typically smaller institutions—such as startups, credit unions, or similar entities—that operate under the sponsorship of a principal member. While they retain full ownership of their licensing program, they rely on the principal for support in specific areas such as settlement, reporting, and fee payment.

Associate members capabilities:

May issue cards
May disburse cash
May acquire merchants
Directly licenses a BIN
Complies with Visa rules
Registers third party agents

Both Principal and Associate memberships with Visa or Mastercard represent affiliations with the respective card schemes and grant access to their network infrastructure and services. However, these memberships do not constitute regulatory authorisation to conduct financial services activities under local law. They are scheme-based licences and must be complemented by appropriate regulatory approvals—such as a FINMA licence or SRO membership in Switzerland—depending on the nature of the services provided. It is therefore essential to assess the applicable regulatory status and licensing requirements prior to initiating the membership application process.

SynHedge is here to guide you through the membership application process, ensuring you meet all regulatory requirements efficiently and effectively.

Card Scheme Membership

Principal Membership & Associates

Principal Membership

Associate Membership