Maximizing Profit with Your Card Programs

This guide highlights some practical strategies to maximize your card program's revenue-generation potential.

Author: Kate Firuz, Director of Product


Bank profits are on the rise worldwide, but there is still room for improvement, particularly regarding credit card programs. While credit card programs have great potential for profit, ensuring proper execution can significantly impact its success.

This guide highlights some practical strategies to maximize your card program's revenue-generation potential.

The Profit Potential of Card Programs Between funds generated from interest rates, usage fees, and late fees, among other streams, card programs - including credit, debit, prepaid, and corporate card programs - can provide a significant revenue stream for banks, credit unions, and other financial institutions. A card program can also lend itself to your brand equity and customer loyalty.

Launching targeted marketing campaigns and reward and incentivization programs can elevate the success of your program.

Cost Reduction With Operational Efficiency Reducing costs is essential to maximizing profit. However, traditionally managed card programs come with an overwhelming layer of operational inefficiencies and, therefore, exuberant costs that impact your bottom line.

Card programs are vulnerable to compliance risks and, therefore, heavy fees and fines. To help reduce costs, ensuring you have a solid risk management and credit card fraud monitoring program is essential. Researchers have found that every $1 of fraud costs Canadian financial services $3.78. By preventing fraud and maintaining credit card compliance, your financial institution can save a significant amount of money each year.

Streamlining processes and increasing efficiency with automation also allows for greater productivity and less wasted time - which, in turn, means less wasted money for your organization.

Additionally, misunderstanding the actual costs of your program and required network fees can be a significant oversight that can cost you your program. Understanding how much your card program will cost and developing effective systems to ensure it can be profitable is critical.

How PayTic Contributes to Profitability PayTic provides community banks and credit unions with a holistic view of the back end of their card programs. This view includes robust visibility of your program's true costs and expenses and seeing cardholders' common disputes, trends, and behaviours. A clear view of information helps your organization make data-driven decisions that benefit your bottom line.

As an example, PayTic's client WFCU Credit Union explains that the platform's single interface provides a "quick and accurate snapshot" featuring average spending information and an overall look at the entire credit card program, which makes it easier to spot trends -- including trends that could help them save money in the future.

Credit card programs have impressive revenue-generating potential, particularly when well-planned and properly executed. Automation and data-driven insights can help your financial institution develop, promote, and implement an effective credit card program that increases profitability and provides excellent outcomes for members.

If you're looking for a new tool that can help you optimize all aspects of your card program, from credit card reporting to credit card reconciliation, PayTic has got you covered. Reach out today to set up a consultation or schedule a free demo.