DEFINITION of 'Associate Bank'

A bank that is affiliated, usually through membership, in a regional or national organization, such as a clearing house, an electronic payments network or a bank card network, such as Visa or MasterCard. There are usually different classes of membership in regional and national associations, which correlate with shares owned or fees paid.

BREAKING DOWN 'Associate Bank'

The term "associate bank" is also used to describe banks that accommodate each other's customers across geographic or national lines when each bank's geographic reach is limited. For example, a small state bank in the United States may have an associate relationship with a bank in London, in order to accommodate a customer traveling there.

RELATED TERMS
  1. Bank Card Association

    An organization owned by financial institutions that licenses ...
  2. Interbank National Authorization ...

    A network of banks that are affiliated with Mastercard International. ...
  3. Bank Card

    Any card issued against a depositary account, such as an ATM ...
  4. MasterCard Card

    A credit, charge, debit or prepaid card branded by MasterCard ...
  5. Super Regional Bank

    A mid-sized bank that has a significant presence in a geographical ...
  6. National Bank

    In the United States, a commercial bank chartered by the comptroller ...
Related Articles
  1. Personal Finance

    Visa vs. MasterCard: Is There a Difference?

    Visa and MasterCard are two of the most widely used credit card brands. But are the differences between the two significant enough to influence consumers?
  2. Investing

    Profit From High Consumer Spending With Visa Or Mastercard

    American consumers have more money to spend thanks to falling gas prices. Investing in Visa and MasterCard may give investors more money, too.
  3. Personal Finance

    American Express's Main Competition

    American Express competes with Visa, MasterCard, and Discover Financial Services in the credit card space. It also competes with banks to draw consumers.
  4. Investing

    A Look at MasterCard vs. Visa (MA, V)

    Both firms have performed well despite the low interest rate environment.
  5. Personal Finance

    Visa Signature vs. MasterCard World Elite: How They Differ

    Learn about the key similarities and differences between the Visa Signature and MasterCard World Elite lines of credit cards and the benefits they offer.
  6. Investing

    IAT: iShares US Regional Banks ETF

    Obtain information and analysis of the iShares US Regional Banks ETF for investors seeking particular exposure to regional bank stocks.
  7. Personal Finance

    Retail Banking Vs. Corporate Banking

    Retail banking is the visible face of banking to the general public. Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers.
  8. Insights

    America's Best 10 Banks for Customer Service (HBAN, TD)

    When investing in the retail banking sector, consider using J.D. Power’s customer satisfaction score as a performance metric to find America's best banks.
  9. Tech

    Two Reasons to Own MasterCard in 2017

    With 2016 returns of only 6%, shares MasterCard were arguably a disappointment last year, but there are still reasons to own the stock.
  10. Investing

    How Visa Counts On Your Free-Spending Ways

    The credit card transaction business is so profitable, Visa Inc. doesn't even bother lending money. Here's how they make their money.
RELATED FAQS
  1. How does the division of regional and national banks affect investing in the banking ...

    Research the difference between investing in regional versus national banks, and find out which strategy is the best fit ... Read Answer >>
  2. Can a business charge me an extra fee for paying with my credit card instead of cash?

    Learn about credit card surcharges by retailers, in which states this practice is permitted and the judicial decision that ... Read Answer >>
  3. Which credit card company holds the honor of most profitable IPO?

    News of Visa's plans to go public created a buzz around Wall Street as soon as the papers were filed. The credit card giant ... Read Answer >>
  4. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  5. What is the average profit margin for a company in the banking sector?

    Learn what the average profit margin is for companies in the banking sector, along with other evaluation metrics often used ... Read Answer >>
  6. What economic indicators are important to consider when investing in the banking ...

    Find out which economic indicators are most useful for investors in the banking sector, especially those influenced by central ... Read Answer >>
Trading Center