The Right Payment Processing to Support Your Strategy

Sponsored by Vantiv

With fewer resources to meet increased demand, many financial institutions have opted for a payments strategy of cost reduction instead of revenue replacement. But is this the right strategy? What if everything you know about payments is wrong? What if it is not about cost reduction? If the cardholder is not using your card, they must be using someone else’s. It’s time to engage and fight back. With the right payment processing solution, financial institutions have the opportunity to change this strategy into one that instead cultivates brand loyalty and accesses untapped revenue. But not all solutions are the same. Let’s take a look at three important things to consider when choosing a payment processing solution for your credit union.

1. Payments expertise. When it comes to payment processing, managing multiple vendors has become par for the course. With a collective payments expertise partner, everything is in one place, making it easier for CUs to manage their entire line of products and services. A partner that owns and maintains its own platform has the advantage of offering solutions that are not one-size-fits-all, instead adapting to the unique needs of each CU. Look for a solution that includes end-to-end portfolio management and revenue generation, including card production, issuing, processing and advisory services.
2. Built-in, value-added services. Today’s “omniconsumers,” who make purchasing decisions using all available channels, are extending their omnichannel preferences to financial institutions as well. With more options than ever, today’s consumers are accustomed to getting what they want, when and how they want it. Today’s consumers want their banking experience to be fast, easy and secure with the latest and greatest technology. Such value-added services as mass re-issue of EMV cards, and seamless cardholder conversion can go a long way toward maintaining high levels of customer service and satisfaction. When considering potential payment processing solutions, in addition to fast issuance of debit and EMV cards, ask about mobile banking products, which are critical for meeting consumer demand for personal connections in digital channels.
3. Powerful analytics. “Know your customer, know your business.” It’s one thing to verify the identity of your cardholders, but how much do you know about their spending preferences? A CU can learn a lot about its cardholders with a payment processing solution that provides visibility into transactions, including what cardholders are buying, and the types of cards they are using. Look for a solution that includes detailed data about cardholder transaction history, card usage, and merchant preferences, in an easy to use format. When you know how much revenue your card portfolio is making, and the areas with the largest potential for growth, you can make informed decisions and implement targeted marketing and promotional programs that drive revenue.

Choosing a payment processing solution is an important decision. Knowing what to look for and the questions to ask can help you find the best solution.

Bill Hampton is SVP/general manager/financial institution services of Vantiv Inc., Symmes Township, Ohio, a payment processing services and related technology solutions for merchants and financial institutions of all sizes.  Learn more about the new Payments University, which will combine online learning with in-person education April 3-4 in San Francisco. Download the executive summary of “The Future of Payments: Scenarios for Credit Unions 2018.