What is a 'National Issuers'

National issuers are credit card companies that offer cards to creditworthy customers nationwide.

National issuers include companies such as Capital One, Chase Bank, Discover, American Express and Citibank.

A card’s terms and conditions often tip off a prospective customer as to whether the card company is national or regional. Language that indicates an offer is only available to U.S. residents 18 and older often indicates the lender is a national issuer.

BREAKING DOWN 'National Issuers'

National issuers generally are household names, as opposed to local and regional banks and credit unions. Conversely, card offers valid only in particular states aren’t from national issuers.

From a consumer perspective, there are notable differences between national, regional and local issuers. Local and regional issuers sometimes offer a wider range of rates, so it’s possible to do more comparison shopping and find a better deal. Lower rates generally help consumer who tend to carry a balance.

Conversely, national issuers tend to offer far better rewards and perks, as its where these lenders tend to compete. Many change these benefits often. This type of card tends to benefit frequent travelers and those who tend to pay their balances in full each month.

Sticking with a national issuer sometimes is better for individuals who face credit problems. Some credit unions, for instance use cross-collateralization, meaning they lump all credit risk they face from one individual together. Say a consumer has both a truck loan and a credit card with the same credit union. Individuals who don’t pay their credit card balance from this credit union might have their truck repossessed. The national issuers, however, tend not to cross-collateralize.

In addition, most national issuers have more generous return protection policies, for example, in addition to rewards miles, additional insurance for travelers and concierge services.

Trends Among National Issuers

Benefits offered by national issuers tend to run in cycles. As of 2018, several national issuers scaled back some cardmember benefits, seemingly in an effort to cut costs. For example, Discover eliminated return protection in February 2018, as well as a handful of other perks such as flight-accident insurance. However, it noted that it continues to offer its popular rewards program for everyday purchases, as well as enhanced security alerts and account monitoring.

Meanwhile, Chase eliminated return protection and reduced its trip cancellation insurance for one of its popular cards. However, it added a $100 credit for TSA Precheck, a seemingly recent perk offered by several national issuers in recent years.

Lastly, Citigroup reduced trip cancellation insurance and changed its return protection coverage. It also reduced coverage for damaged or stolen items and made changes to its car-rental insurance perks.

RELATED TERMS
  1. Fair Credit Billing Act - FCBA

    The Fair Credit Billing Act (FCBA) is a 1974 federal law designed ...
  2. Issuer Identification Number (IIN)

    The issuer identification number (IIN) is the first few digits ...
  3. Charge Card

    A charge card is a type of electronic payment card that charges ...
  4. Authorization Date

    The month, day and year when a credit card transaction is approved ...
  5. Secured Credit Card

    A secured credit card is a type of credit card that is backed ...
  6. Credit Card Balance

    Credit card balance is the amount of charges, or lack thereof, ...
Related Articles
  1. Personal Finance

    6 Reasons You Shouldn't Fear Credit Cards

    Credit cards shouldn't be feared. When used the right way, they can provide consumers with great rewards and benefits.
  2. Personal Finance

    Credit Card Debt: America’s Biggest Struggle?

    Dealing with credit card debt is a huge struggle for many American families. Here are some tips to get you started.
  3. Personal Finance

    How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?
  4. Personal Finance

    Credit Card Perks You Never Knew You Had

    From car insurance to concert tickets, be sure to take advantage of whatever your card has to offer.
  5. Personal Finance

    How Is Cashback Profitable For Credit Card Companies?

    Cashback rewards are not as beneficial to the consumer as they might initially seem.
  6. Managing Wealth

    Cash Back, Miles or 0% APR: Comparing Card Perks

    Consumers have a lot of choice these days when it comes to credit card rewards, including cash back, airline miles and introductory periods of 0% APR.
RELATED FAQS
  1. How long are credit ratings valid?

    Learn how credit ratings are issued and how long they are valid. Investors look to credit ratings to determine risk associated ... Read Answer >>
  2. What are the most common reasons credit limit increase requests are declined?

    Learn about reasons why a request to increase the credit limit on a credit card may be declined, and find out which factors ... Read Answer >>
  3. Am I Responsible for Fraudulent Charges on My Credit Card?

    If your credit card is stolen in the US, federal law limits the liability of card holders to $50, regardless of the amount ... Read Answer >>
Trading Center