Agent Bank

An Agent Bank is a bank that provides services on behalf of another bank (known as the issuing bank) in a location where the issuing bank does not have a physical presence. In the context of payment processing, an Agent Bank may also refer to a bank that provides payment processing services to its merchant customers through an agreement with an Acquirer or Payment Processor.

For the merchants, working with an Agent Bank can simplify the process of accepting card payments. The Agent Bank can handle the setup and maintenance of the merchant account, provide customer service and technical support, and even provide payment terminals and other necessary equipment.

For the Acquirer or Payment Processor, working with Agent Banks can expand their reach and enable them to serve more merchants.