Visa principal member vs associate

Visa is a global payment technology company that operates a network connecting financial institutions, merchants, and consumers to facilitate electronic payments. Visa offers two types of membership: Principal Membership and Associate Membership.

A Principal Member is a financial institution that has a direct contractual relationship with Visa and is authorized to issue Visa cards to consumers, as well as to acquire transactions from merchants. Principal Members are responsible for ensuring that their cardholders and merchants comply with Visa's rules and regulations.

An Associate Member, on the other hand, is an entity that has a contractual relationship with a Principal Member and is authorized to provide certain services related to Visa's payment network. These services may include processing transactions, providing technology solutions, or marketing Visa products to merchants and consumers.

While Associate Members are not authorized to issue Visa cards or acquire transactions from merchants directly, they play an important role in supporting the operations of the Visa network by providing a range of value-added services to Principal Members and their customers.