The CTSO Report – Maximize Debit Card Brand Benefits

Is your bottom line suffering from PHOBIA?


You are suffering from PHOBIA if you have a card brand loyalty agreement negotiated by your processor for you.  If so, it may be time to handle your own brand incentive agreement.  Did you know the card brands will write agreements directly with banks and credit unions?

Consider the following reasons to actively pursue a brand incentive agreement with your card brand:

  1. Your debit card portfolio typically provides your institution with its 2nd largest source of non-interest income behind NSF/OD revenue.  Maximizing this income is often an overlooked opportunity to increase DDA profitability.
  2. EFT Processors have the ability to negotiate a term incentive agreement with card brands and are happy to do this for you.  Negotiating your own agreement(not a 3rd party agreement) will result in more direct benefits for your institution.
  3. A card brand agreement independent of your processor (and term) will allow flexibility of movement when selecting new partners.
  4. A direct agreement with the card brand might include their assistance with card marketing, customer acquisition, program profitability tools and income to spend with any 3rd party, not just your processor.
  5. A direct agreement will include access to the card brand, a world-wide provider of payments in every market, every delivery channel.  Receiving payment industry information directly from the brand will help drive your Payment Strategy planning for digital, tokenization and biometrics.

Remember, the best interest of each party involved in a decision is included in the result.  By eliminating one party (the processor) you will likely realize a better bottom line benefit.

Have questions?  Want to know how to optimize your benefits from your brand incentive agreement?  Contact one of the PRI team members today.

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