Value to Banks
Payment Manager drives revenue, boosts customer satisfaction, and reduces costs by allowing customers to self-manage their pre-authorized payments. It also allows staff to quickly and easily help customers with pre-authorized payments.
Credit Cards – Delivering convenience and time savings will lead to higher consumer retention, a greater likelihood of the card becoming “front of wallet”, and better cross-selling and upselling opportunities. Revenue lift will come from growth in interchange fees, upsells to fee-based cards, and increased customer spending.
Deposits – When customers attach pre-authorized payments to a deposit account, it’s solidified as the everyday banking account. Revenue lift comes from an increase in the average account balance, and Visa Debit card and MasterCard Debit card interchange fees.
Even one additional pre-authorized payment across active credit or debit cards can bring a significant ROI.
Here’s a typical calculation:
If you have two million active cards, and just 10% of those card holders add one more pre-authorized payment at $200 per month, the total net benefit to your institution is $5.7 million over 36 months (0.40% net interchange fees collected over 36 months equals $28.80 per card).