Issuer-processors: Marqeta, Galileo, Lithic, Highnote, Thredd

Concept

An issuer-processor is the technical engine of card issuing: it authorizes, clears, and settles transactions on the issuer side, manages the card lifecycle, and maintains the program ledger. It sits between the payment network (Visa, Mastercard) and whoever issues the card. Modern processors have compressed what used to take a year and cost millions into a three-week API integration with pay-as-you-go pricing.

The processor itself provides neither a license nor a BIN: cards are issued under the BIN of a bank—a principal member of the payment network. To launch an embedded finance program, you also need a BIN sponsor and, typically, a program manager.

🍓 Don't confuse the three roles. The BIN sponsor (bank) grants the right to issue cards under its BIN and is liable to the network; the program manager handles program operations and compliance; the issuer-processor processes transactions. One provider may combine these roles, but liability for issuance always rests with the bank.

How it works

The card issuing stack, top to bottom:

• Payment network — Visa or Mastercard: rules, clearing, brand.
• BIN sponsor / principal member — the bank that holds network membership and the BIN, liable to the network and regulator.
• Program manager — operational management of the program: onboarding, compliance, support.
• Issuer-processor — authorization, clearing, settlement, tokenization, ledger; API integration.
• Program / fintech — brand, product, customer.

When a cardholder pays, the authorization request flows from the network to the processor; the processor checks limits and balance against the ledger and responds in milliseconds.

Who's who

• Marqeta — the largest independent issuer-processor, a public company; strong in the US, supports debit, credit, and prepaid.
• Galileo — acquired by SoFi in 2020 for US$1.2B, operates independently; Visa-certified processor, backbone of many neobanks.
• Lithic — developer-first processing from the US (from the same team behind consumer product Privacy.com); focus on API simplicity.
• Highnote — as of January 2025, the only modern processor to unify issuing and acquiring on a single API.
• i2c — long-established, flexibly configurable platform; global coverage, debit/credit/prepaid.
• Thredd — formerly Global Processing Services (rebranded April 2023); British roots, processing since 2007, Visa and Mastercard certified, strong in Europe and APAC, 40+ countries.

Processor, program manager, and BIN sponsor

These roles are constantly confused because providers combine them: one company can be both processor and program manager, and have an arrangement with a BIN sponsor. For an operator, it's important to separate them contractually—who is responsible for what and where liability to the network lies. For details on network membership and BINs, see BIN sponsorship.

What to check when choosing

• Network certifications — Visa Ready / Mastercard and for the required products (debit, credit, prepaid).
• Geography — where the processor is certified: US, Europe, APAC. Thredd is strong internationally, Marqeta and Galileo in the US.
• Role combination — does the provider take on BIN sponsorship and program management, or only processing.
• Integration model and pricing — pay-as-you-go versus minimums; speed to go-live.
• Reliability — uptime, redundancy, tokenization, support for network updates.

Applicable regulation

An issuer-processor itself is typically not a regulated entity. The license is held by the issuer—a bank or neobank. What matters:

• PCI-DSS — processing of card data; processor and program undergo certification.
• Payment network rules — Visa and Mastercard rules are mandatory for everyone in the stack.
• Issuer liability — BSA/AML and supervision remain with the issuing bank and BIN sponsor.