[SOLVED] Help to understand the credit card functioning by startups

Hi guys iwas wondering if anyone know how the functioning of credit cards issued by startups work. The question is related to fintech companies offering cards. Consider Cubber offering prepaid card so if they partner with a bank to issue cards as a company cannot directly issue cards you need to have a bank as an issuing partner how come a person who registers on cubber gets notified to banks that this customer has come from this startup. Is there as API through which this happens or is a token provided to the startup so the startups share the token along with the customer details for issuing the card to the bank? Also, how do the banks share with startups that this card is issued to this customer? Also, do they need any license for doing this business from RBI?

First of all I’m sorry to reply this question as I’m not an Indian citizen,
There is a entity called Non-Banking Financial Company (NBFC).
You should check rules and regulation of Non-Banking Financial Company (NBFC).
All banks are interconnected with Central Bank such as RBI.


Corporate credit card accounts are usually opened by businesses through:

  • A banking relationship
  • By negotiating directly with a card issuing company

Although they are normally issued in the employer’s name, they also bear the name of the cardholding employee. However, unlike a personal credit card, in case of non-payment, the employer can be held liable as well .

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