Note
In the following diagram, each entity can perform one or more of the featured functions. For example, your business might decide to be self-issuing and therefore will act as the issuer and the JIT (Just-in-Time) gateway client.
In the following diagram, each entity can perform one or more of the featured functions. For example, your business might decide to be self-issuing and therefore will act as the issuer and the JIT (Just-in-Time) gateway client.
Roles and responsibilities
This section details the roles and responsibilities of all parties in the card-issuing ecosystem.Issuer or BIN sponsor
The issuer or bank identification number (BIN) sponsor is a legal entity that holds the issuing license with the scheme, and is therefore ultimately liable. Normally, the issuer owns the bank accounts that debit settlement funds and charge fees. The issuer typically has specific reconciliation requirements.Card network
The card network sets the rules and technical standards for processing transactions and connects all underlying payment agents. Visa and Mastercard are examples of card networks.Marqeta
Marqeta is a certified issuer processor that allows you to create physical cards and authenticate card transactions by requiring a PIN or signature verification when the card is present. If the card is not present (CNP), Marqeta provides services such as address verification, card verification value (CVV2), and 3D Secure (3DS) to authenticate cardholder identity. Marqeta offers JIT Funding so that you can take control of the funds approval process. As your issuer processor, Marqeta performs the following actions on your behalf:- Assists with issuing physical cards, using integrated providers, and establishing card activation procedures.
- Converts the ISO message received from the card network into a JSON object that has a user-friendly naming convention to simplify the content of the ISO message.
- Validates authorization requests for card status, CVV2, country restrictions, and spend controls.
- Ensures the correctness and validity of the authorization request and response before requesting approval from the JIT gateway.
- Sends notifications to your webhook endpoint for any subscribed events or changes on the Marqeta platform, including financial transactions, card status changes, and PIN set or view operations.
- Provides an additional verification step via 3DS, Marqeta’s hosted Access Control System (ACS).
- Sets PINs and handles any updates to the PIN by using the set PIN widget or by calling the relevant endpoint on the Marqeta platform.
Your organization or a third-party JIT gateway
Either your organization or a third party that you have selected can build your JIT gateway. The JIT gateway allows you to participate in authorization decisioning, meaning that you can approve or decline authorizations based on your own criteria. The majority of Marqeta’s customers have criteria for approvals based on their ledger and internal risk policies. The ledger is held by you, not Marqeta.Warning
Marqeta allows three seconds for you to approve or decline an authorization at your JIT gateway. Keeping your ledger separate from the JIT gateway can cause latency in the authorization flow.
Marqeta allows three seconds for you to approve or decline an authorization at your JIT gateway. Keeping your ledger separate from the JIT gateway can cause latency in the authorization flow.
Core banking platform
Your organization will develop or contract with a third-party core banking platform. This platform—known as the ledger—acts as your main system of record and carries all cardholder balances. You can also choose to have your core banking platform calculate interest and add relevant cardholder fees. Your core banking platform should mirror the cardholder accounts created using the Marqeta platform. You can opt to use Marqeta’s services with your platform to create cardholder accounts and their associated cards, and then mirror these assets in the banking platform. Users and cards that exist in your banking platform are also mirrored in the Marqeta platform. You can create this mirroring using either your banking platform or the Marqeta platform. If your JIT gateway and banking platform are separate, it may add latency to the flow. Integration with Marqeta is not required from the banking platform provider. However, due to potential latency, you might want your core banking provider to host the JIT gateway.Card manufacturer
The card manufacturer must be integrated with Marqeta. To set up a new card, use the following process:Marqeta queues any cards that have been created, and then sends one batch order to the card manufacturer per day.
Standard authorization and funding flows
Standard authorization flow
The standard authorization flow confirms the cardholder identity and performs a typical transaction according to the following process:Marqeta determines the transaction’s correctness and validity, as provided by the merchant. All transactions require a valid personal account number (PAN), CVV, and expiration date.
Marqeta checks the transaction against the spend controls that you have configured on the Marqeta platform.
Marqeta determines transaction funding and reaches out to your JIT gateway for authorization approval.
The card network sends the information from Marqeta to the merchant regarding the transaction status (approved, declined, or error response).
Marqeta processes the card network files and sends you the settlement files via Secure File Transfer Protocol (SFTP) or Simple Storage Service (S3).
You perform daily reconciliation of network data with the sum and count of Marqeta webhooks. For more information, see About webhooks.
Standard funding flow
As required by your issuer, you must first deposit funds into a reserve account to cover the daily card network settlement position. This amount is driven by your projected volumes and any agreements that you have established with your issuer.
You will be advised of the amount you owe the card network to cover the merchant position. The card network typically delivers these notifications on a daily basis.
The issuer moves the funds from your reserve account to their nominated settlement account to pay the card network.