Program management

Stripe offers two operating models for issuing: Stripe program management and processor-only. Each comes with unique advantages and requirements, but both allow you to use Stripe for your issuing program. This guide covers the differences between the two models so you can decide the best option for your business.

Overview

Stripe program management allows you to take advantage of Stripe’s existing partner relationships, processes, tools, and expertise to remove the complexity from your integration. With processor only, you’re responsible for managing your program, including regulatory requirements, compliance, Know Your Customer (KYC), Anti-Money Laundering (AML), licensing, and more. The table below outlines the main differences between each model:

Stripe program management

In this model, Stripe handles all regulatory, compliance, KYC, AML, fraud management, and manages the bank relationship on your behalf. You can control many aspects of your issuing program using our APIs. You’re responsible for:

• Documenting your use case and product for approval by Stripe
• Funding your program
• Integrating with the Stripe API or using the Dashboard to create cards and operate your program
• Submitting physical and digital card artwork for approval by Stripe
• Submitting marketing material for approval by Stripe

Processor only

Use this model if you have your own licenses or bank relationship, where applicable. You can still use the Stripe API and authorization systems, but you have more responsibility compared to Stripe program management, namely:

• Regulatory requirements for all localities in which you operate
• Acquiring and maintaining licenses and/or a bank relationship, where applicable
• Compliance
• KYC
• AML
• Fraud management
• Managing disputes raised by your cardholders
• Licensing a BIN
• Funding your program
• Maintaining a ledger and making sure it’s correct and reporting on it to the regulator or bank
• Integrating with the Stripe API or using the Dashboard to create cards and operate your program
• Submitting physical and digital card artwork for approval by the network and bank partner, where applicable
• Submitting marketing material for approval by your legal team

Choosing a model

If you’re just starting out with issuing, we recommend Stripe program management. This allows you to concentrate on growing your business without needing to devote as many resources to operating your program. If your goals change as your business scales, you can transition to the Stripe processor model later when you’re ready.

For businesses with established operations, legal, compliance, and financial services personnel, a direct relationship with a bank might be beneficial. The processor-only model is for businesses who have the resources to take on the increased responsibilities and want more control over their issuing program. This model works if you want to use the Stripe API and if you can manage the operational burden. It also works if you want a bank partner not supported by Stripe, or have licensing or compliance needs Stripe can’t support.