Why don't banks issue their own cards?

If banks will issue their own cards and will make their own, payment processors like Paytm they will have to take responsibility if any data is hacked, which if happens they will loose crores and crores of money, but these payment networks are old and famous for proving data secuirity with insurance, thus they use these networks. read more

Banks issue credit cards to millions of consumers every year. Many Americans hold multiple credit cards, usually a combination of bank cards and merchandise charge cards. Few American consumers can walk through a mall or open their mailboxes without seeing solicitations for credit cards. read more

Qualified nonbanks should be able to issue credit cards. This has only rarely been possible up to now a situation that has warped the industry's structure, giving banks undeserved dominance. Qualified nonbanks should be able to issue credit cards. read more

Visa/Mastercard/Rupay are payment networks. They do not have a bank licence, they do not issue proprietary cards. They are the cloud services or logistics into which banks plug in their merchant network and are connected themselves. read more

For Visa and MasterCard, if you wanted to issue the cards yourself, you would need to open a bank. This is because Visa and MasterCard both require issuers to be banks. After all, both were initially associations of banks. read more