Three Ways to Maximize Your Credit Card Portfolio Profitability
In 2010, the government passed the Durbin amendment that essentially capped debit interchange fees, limiting the profitability of debit card programs and causing many issuers to cut back or eliminate rewards programs in their debit portfolios. Now credit card portfolios are facing the same potential risk as regulators consider limitations on those interchange fees as well. As a top revenue source for banks and credit unions, credit cards – and the rewards programs that go with them – have been priority products for some time.
Issuers can’t control the potential regulatory changes that may reduce interchange fees, but they can control other aspects of their credit portfolios, including operational efficiency, marketing productivity, and cardholder loyalty. By managing these three key profitability levers, card portfolio managers can maximize portfolio success and maintain the ability to make changes as market and regulatory circumstances demand.
Download our whitepaper to find out how you can maximize your credit card portfolio profitability.
