Drawing Back the Curtain on Vendor Pricing for Debit Processing
Who should read?
Senior bank and credit union managers who want to better understand how rapid growth in electronic payments can impact contract negotiations with vendors and networks and enhance the profitability of their own institutions’ payments businesses.
- Payments Volumes are Exploding From 2000 to 2012 total card transactions more than tripled to 73.9 billion, with expected growth in 2014 to top 86 billion.
- An Increasingly Profitable Business Payments processing is now the biggest driver of revenue growth for many core software vendors, with some getting more than one-third of their total revenue from this channel.
- Opportunities to Make Payments More Profitable 90%+ of all banks have the opportunity to improve the profitability from their payments businesses at a time when most are struggling to find profits in a rapidly changing operating environment.
- An Action Plan for Squeezing More for Payments Why do banks often pay more than they should for payments processing? The short answer: It’s a business where everyone appears to be winning, and every time a card is issued a bank makes money.
- Successful Vendor Negotiations Avoid the pitfalls that many institutions experience during vendor contract negotiations and adopt these best practices.