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.
In last month’s blog, PRI’s Mike Holt, discussed how increasing debit card penetration into accounts improves FI profitability. Now we will take a closer look at the second element of an FI’s PAU – debit card activation. Activation is measured as the percentage of open debit cards with at least one point-of-sale (POS) purchase over […]
The income potential of improving debit card portfolio performance – commonly referred to by insiders as PAU (Penetration, Activation, Utilization) – should place it at the forefront of most FI retail initiatives in 2021. In this three-part series, PRI leaders take a closer look at the best practices for growing a card portfolio, beginning with […]
After 45+ years in the banking industry, Tim Holt, founder of Profit Resources Inc., has seen many transformational changes. Yet, remarkably, the foundations of community banking have remained unchanged. He recently reflected on a perception issue of one of these ever-important foundations – customer payments and how community bankers view debit cards versus checks. Risks […]
Do you need a PIN network? And does it really matter which one you select? Yes! You do, in fact, need two PIN networks, and it does matter which you select … if you are interested in maximizing profits. All PIN networks have the same basic function of processing transactions with or without a PIN […]
As we continue to grow and evolve in response to a global pandemic, financial institutions are accepting that the 2021 world of banking will look much different from that of 2019. The good news is that experts are predicting a relatively healthy rebound from the first half of 2020, but they are also warning that […]
Customer behavior has changed and will continue to change during the course of the COVID-19 pandemic. The longer the pandemic lasts, the more significant the behavior change is likely to be. Over the last several weeks, we’ve been connecting with many of our community financial institution clients. Many community financial institutions are experiencing customer limit […]
This blog is a “how to” follow up to Friendly Fraud: Legitimate Dispute or Just Bad Scallops? Debit card chargebacks are for your customer’s benefit to protect them from unfair merchant practices, but they are increasingly being misused by consumers. This misuse is referred to as “friendly fraud.” Do your customer-facing staff understand the difference […]
Can we talk about “chargebacks?” When a cardholder contacts a financial institution about a non-authorized transaction, it’s called a “dispute.” A dispute triggers a multi-step (and very costly) back-office procedure referred to as a “chargeback.” Your processor charges as much as $35 for this chargeback to inform you that the merchant denied the refund for […]
As the article title insinuates, there are many examples of the two sides of any interchange story – sale vs. purchase, interchange paid vs. interchange earned (aka acquiring vs. issuing OR expense vs. income), SIG vs. PIN, card-present vs. card-not-present. The list is nearly infinite. For our purposes though, let’s focus on an age-old example of the two basic sides to every story.
Many financial institutions provide ATMs at each branch location because that’s the way it’s always been done. However, is this profitable for the financial institution and how would you know? ATMs first appeared in the late 1960s, and by 2015, there were nearly 3.5 million ATMs installed worldwide, according to the ATM Industry Association (ATMIA). They […]