What identifies the specific card-issuing bank within an interchange arrangement?

The specific card-issuing bank within an interchange arrangement is identified by the cardholder bank. This entity is responsible for issuing the payment card to the cardholder and maintaining the relationship with them. The cardholder bank processes transactions initiated by the cardholder and manages the risk and compliance associated with these transactions.

In the context of interchange, when a transaction occurs, the payment network routes this transaction information to the relevant bank that issued the card. This allows the bank to approve or decline the transaction, charge fees, and handle settlements related to their cardholders. Understanding that the interchange process relies on the presence of a designated cardholder bank is crucial for comprehending how payments are processed in the network ecosystem.

The other options, while related to payment processing, do not directly identify the issuing bank in the context of interchange. The card company refers to the network (like Visa or MasterCard) that facilitates the transaction but is not the issuing party. The cardholder represents the individual making the transaction and does not specify the bank involved. Finally, card capture refers to the mechanism by which card information is obtained during a transaction, which does not pinpoint the issuing bank either. Thus, recognizing the role of the cardholder bank is key in understanding the interchange framework in