What is a Card Based Payment Instrument Issuer (CBPII) ?

A CBPII or Card-Based Payment Instrument Issuer facilitates the issuance of card-based payment instruments by third party providers that do not possess the cardholder's funds. Customers can use this card (typically a debit card) to initiate payments for goods and services directly from their bank account. However, CBPIIs have no visibility on the customers' funds and therefore cannot determine when to authorise or decline (debit) card transactions. With open banking, when a customer uses their card, the CBPII has a right to obtain confirmation from the customer’s ASPSP as to whether or not sufficient funds are available. The CBPII then uses that information to authorise or decline the card transaction.