TAMPA, Fla.—Rising costs for running a successful card program demand that credit unions are putting new demands on the need for CUs to review their portfolios and take steps to promote and support them, according to Trellance.
“Increases in the expense of maintaining a card portfolio come in many forms and can be attributed to any number of things,” said Director of Consulting Services Dave Chojnacki. “While it is difficult to control certain aspects, such as interchange earnings, there are always opportunities to constantly enhance and develop your card offerings with the latest technology advancements.”
Chojnacki said that covering the costs for card program enhancements can come from finding savings in the current program.
“Find savings without jeopardizing the functionality of the card and, most importantly, remaining top of wallet given all the competition in the payments space,” he said.
Questions to Ask
Chojnacki outlined some of the areas that can be reviewed, and questions asked, to help ensure costs and processes “line up.” Among those questions:
- How do solutions that help combat fraud, reissue compromised cards and complete disputes work together, or do they cause additional steps in the CU’s process?
- Are any of these areas or services overlapping one another or not working at optimal levels for the credit union?
- Are steps being taken to track a campaign after deployment to evaluate benefits over costs?
- There are times when a service was established during a change in the industry or during a contractual discussion and they are no longer relevant given all the advancements in the payments space? Should these items be removed?
- There is certainly a need to review all the program costs and look for anomalies. How often are total program costs completely reviewed, including current or aged contracts for the most competitive pricing?
“Often services or internal processes remain unchanged as they are working fine and there is no immediate need to make changes,” Chojnacki said. “However, given the many hats credit union employees tend to wear, it is essential to gain assistance from experts who are abreast of the changes in the payments industry and understand the credit union model to complete periodic reviews ensuring that systems are running optimally.”
Costs Can Grow
Not reviewing the card portfolio on an ongoing basis can be costly to a credit union, noted Chojnacki.
“While it is difficult to state a specific amount as it varies on a case-by-case basis, it is safe to say that in some instances the costs can be just a few extra dollars up to—in many cases—hundreds or thousands of dollars year over year. What if you could apply proactive measures to head off potential issues before they become problems?”
Chojnacki emphasized that Trellance is a CUSO that has worked closely with credit unions for more than 30 years.
“We have decades of experience with a deep understanding of the nuances of payments specific to credit unions,” he said. “We work to add value to your credit union by becoming an extension of your current team, helping you to gain efficiency and profitability. In each of the scenarios mentioned above and many more, we have a service in place that can augment processes today. We do this by staying close to the payments industry and working closely with credit unions. Ensuring credit union payment programs are competitive and efficient, while increasing their bottom line. We will sit down with you to learn more about who you are, your members, goals and strategies. During these interactions we will create a solution to help you, allowing you to reach your goals.”
Chojnacki added that Trellance is an “independent, unbiased advocate for credit unions.”
“So we are completely processor agnostic. We can help credit unions tailor a program that allows them to realize portfolio possibilities with measurable results,” he said.