What is the function of a Bank Card Service Provider (BSP)?

The role of a Bank Card Service Provider (BSP) primarily centers on offering comprehensive services that facilitate the acceptance and processing of card payments for merchants and the management of services for cardholders. This includes providing the necessary infrastructure for transactions, such as point-of-sale systems and online payment gateways, as well as managing transactions between cardholders, merchants, and banks.

BSPs are crucial intermediaries in the payment processing ecosystem, ensuring that transactions occur smoothly and securely. They may also offer additional services such as fraud protection, customer support, and reporting tools for merchants, which further highlights their comprehensive role in the payment landscape.

While issuing credit cards is often associated with banks or financial institutions, and regulation of banking interest rates and conducting financial audits are outside the remit of a BSP, their primary function is service-oriented, aimed at enhancing the payment experience for merchants and cardholders alike. Thus, the best description of a Bank Card Service Provider’s function is the provision of merchant and cardholder services.