Comprehensive Guidance on Obtaining Visa & Mastercard Principal Membership

2025 11 19

Principal Membership allows financial institutions, fintech companies, and payment service providers to operate directly with leading payment networks. This status provides access to card issuing and merchant acquiring functions, ownership of BINs, and direct settlement capabilities with the card schemes.

Principal Membership Overview

As a Principal Member, businesses can:

• Issue payment cards under their own brand

• Acquire merchants and process transactions directly

• Manage settlements, reporting, and fees independently

• Sponsor other institutions or affiliates

• Comply with the rules and requirements of the card schemes

This membership is suitable for entities capable of handling operational, technical, and regulatory responsibilities associated with card programs.

Capabilities of Principal Members

Principal Members typically have the capacity to:

• Issue cards and manage card programs

• Disburse cash and process payments

• Acquire merchants and manage transaction relationships

• Hold settlement risk and operate own processing systems

• Sponsor other institutions (affiliates)

• Handle reporting requirements

• Own ICA and BIN numbers

• Register third-party agents and comply with card scheme rules

• Pay ongoing fees associated with the program

Benefits

• Direct access to Visa and Mastercard networks

• Greater control over card and payment program operations

• Ability to sponsor smaller institutions

• Streamlined management of settlements and reporting

• Opportunities to expand revenue streams through card issuing and acquiring

Timeline for Application

The duration of obtaining Principal Membership depends on business readiness, internal resources, and project complexity:

• Acquirer status: Typically 3–6 months

• Issuer status: Typically 4–8 months

Factors affecting the timeline include legal and technical preparation, regulatory compliance, and IT system readiness.

Application Process

1. Assess Eligibility: Confirm that your business meets the card scheme requirements.

2. Prepare Documentation: Submit financial, operational, and compliance materials.

3. Infrastructure Readiness: Implement technical systems for issuing or acquiring services.

4, Submit Application: Work with the card schemes and provide necessary follow-ups.

5. Onboarding: Once approved, activate BINs, launch card programs, and begin processing transactions.

Associate / Affiliate Membership

Smaller institutions may operate under a Principal Member as associates or affiliates. Key differences include:

• Relying on a Principal Member for settlement, reporting, and fee payment

• Faster onboarding and implementation

• Limited operational responsibility compared to Principal Members

• Access to discounts or shared resources via the sponsoring Principal

Why Demire

At Demire, we combine regulatory expertise, technical knowledge, and industry connections to simplify the path to principal membership. Whether your goal is issuing cards, acquiring merchants, or sponsoring affiliates, Demire ensures a compliant, efficient, and fast-track approach to success.

Conclusion

Visa and Mastercard Principal Membership provides qualified businesses with the tools to manage card issuing and acquiring independently. It offers operational control, access to network infrastructure, and the ability to sponsor other institutions. Businesses should carefully assess eligibility, prepare necessary documentation, and ensure technical readiness before applying.

Comprehensive Guidance on Obtaining Visa & Mastercard Principal Membership