Our blog is dedicated to sharing our thoughts and expertise about the banking industry and how you can experience quantifiable results for your financial institution. We invite you to hear the perspectives from our banking professionals through our posts.
While your financial institution is likely aware that debit cards generate significant interchange fees, it may be selling the complete picture of debit card value short. In addition to an average of $0.34 to $0.52 cents per transaction depending on how much your customers spend and where they shop, frequent debit card usage helps build […]
Can we talk about chargebacks? When a cardholder contacts a financial institution about a non-authorized transaction – also known as a dispute – it triggers a costly, multi-step back-office procedure referred to as a chargeback. Processors can charge as much as $35 for a chargeback only to inform the institution that the merchant denied the […]
Many financial institutions provide ATMs at each branch location because “that’s the way it’s always been done.” However, banking has rapidly evolved since the 1960s when ATMs first appeared to give cardholders access to cash when the financial institution was closed. Has your institution recently analyzed whether ATMs are a profitable endeavor or more of […]
When working with financial institutions to improve profitability, the debit card program receives a bright spotlight because of its potential to increase the organization’s revenue and decrease its costs. PRI consultant Candace DeBarger says that four myths about debit cards can be a barrier to maximizing their profit potential, and she debunks them below. Myth […]
Twenty years ago, when cash was still a primary payment method, surcharge-free ATM access was an important competitive tool for smaller FIs including community banks and credit unions. Consumers were generally using cash for most small ticket purchases, sensitive to ATM-related fees and often chose their banking relationship based upon this kind of access. But times have certainly changed! Fast forward to current day, and the importance of ATM access has declined substantially. There has been a steep decline in the number of ATM cash withdrawals in recent years and in cash share of consumer payments with the rise of mobile payments, online shopping, cash back at point of sale and the increased use of debit and credit cards. Consumers have reduced need and desire to pay with cash, which means the surcharge-free offering may no longer be strictly necessary to attract and retain them.
Mike Holt, PRI partner, discusses interchange income and how it’s calculated in this week’s blog. The History of Interchange Income Simply put, interchange is the small percentage of each credit card and debit card purchase amount that is paid to financial institutions by merchants for the privilege and convenience of accepting payments via the FI-issued […]
Debit card interchange income is the top contributor to deposit-based non-interest income for most banks, and if it’s not for yours – you must ask why! Two factors make debit card interchange income a smart thing on which to focus growth efforts. First, interchange fees are not paid by your customers (see “What is Interchange […]
With continued talk of a recession and ongoing economic uncertainty, financial institutions are searching for creative ways to increase profitability. The PRI team’s expertise goes deep in this area, and in this week’s blog, Jen Megee, Director of Process Improvement at PRI, shares five proactive actions financial institutions can take to make a meaningful impact […]
In this blog, Phil Jarrell, debit card services expert at PRI, examines the new rule and how it may affect FIs. Jarrell said the key lies in whether the issuer’s network supports PINless transactions. ______________________ Thanks to the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Reserve has required […]
Currently Financial Institutions are experiencing increasing pressure on non-interest income. Forward-looking FIs are investing in maximizing their debit card interchange income to push back against these pressures and promote institutional growth. In PRI’s blog, Maximizing PIN Debit Card Interchange, we took a deep dive into the differences in PIN networks and how they affect a […]
