Choosing the right BIN sponsor or card issuer is a critical decision for any business looking to launch a card program. This episode delves into the critical factors to consider when selecting card issuing partnerships.
- All right, everyone, welcome back. Today we're going deep on something that's honestly kind of make or break if you're in the payment space.
- Yeah, for sure.
- Picking the right partner for issuing your cards.
- Definitely, couldn't agree more.
- Because like we all know, it's not just about slapping your logo on a piece of plastic, right?
- Exactly.
- This is about building a whole system. It's about revenue. It's about features. It's about the security of your whole operation.
- All the ties in.
- Yeah.
- And to help us break it all down, we've got a true expert in the house from Verestro, a company that literally lives and breathes this world.
- Well, thanks for having me. Happy to dive in. I think a lot of companies get tripped up because they don't see the full picture at the start.
- Totally. And one thing that jumped out of me, just prepping for this deep dive, was the emphasis on revenue sharing.
- Oh yeah, that's huge.
- It's not just the cost, but how you actually make money with the right partner. Initially I was like, wait, isn't that the bank's job?
- It's funny you say that because a lot of people think that. But focusing only on upfront costs, you miss the big picture. Interchange fees, for example.
- Okay, yeah.
- Those tiny percentages on each transaction, they can add up big time.
- They do, they do.
- If you're processing, say, a million dollars annually, getting your interchange categories optimized. That could be an extra $10,000 for you.
- See, that's when we talk about 10,000. That's not a jump change.
- Yeah.
- What about other revenue streams though? Our source even mentioned currency conversion ATM fees. All on the table. Let's say your card is popular for travelers, right? Instead of ATM withdrawals being a cost for you, you can structure things so those fees actually generate revenue.
- Oh, interesting.
- It's all about knowing how the payments world works. Having a partner who helps you use those intricacies to your advantage, that's a big part of what we do at Verestro, creating those win-win scenarios.
- Love it. Like finding hidden treasure in your business model. But obviously we can't just ignore the cost side altogether.
- Of course not.
- Gotta be realistic.
- Yeah, our source talked about fixed versus variable fees. Understanding those is key. What's your advice navigating that?
- Transparency is absolutely key. You need a partner upfront about their fee structure, how it changes as your volume grows.
- Makes sense.
- Don't be shy. Ask tough questions. What if my business doubles in size? Do the fees change?
- Or they're hidden costs.
- Exactly. Gotta get into the nitty-gritty.
- So you've done your financial due diligence, you've got a partner who's on board with your revenue goals. Now for the fun part, the features, the services your customers are actually gonna use.
- Absolutely. This is where it gets exciting. It's all about finding a partner that not only meets your needs today, but can grow with you tomorrow.
- For sure.
- Think about the currencies you need to support. Do you want a loyalty program? What about white label solutions?
- Ooh, white label. For those who aren't familiar, could you break that down a bit?
- Sure. It basically means you get the tech infrastructure from the issuer, but you customize the look and feel of everything. The car, the user interface, all of it.
- Ah, okay. So it's like you're getting a tailor-made suit instead of one off the rack.
- Perfect analogy.
- Our source also mentioned reload mechanisms, virtual cards, there's a lot. How do you help businesses even prioritize all that?
- It starts with understanding their goals, their target audience. Like we worked with a company focused on travelers. They wanted travel insurance, perks, airport lounge access, all that. So we integrated those features directly into their card.
- Smart. So it's more than just a payment tool. It's a lifestyle enhancer.
- Oh.
- All right, got to switch gears now to something, maybe not as glamorous.
- Right.
- But just as vital, security, financial stability of your partner.
- Oh, absolutely critical. Can make or break you, honestly.
- Our source is pretty blunt about that. Why is it so crucial?
- Think about it. You partner with a company that isn't financially sound. They may offer amazing deals up front, but what if they go belly up?
- Oh.
- Your whole operation is disrupted. Your customers are left hanging. Your brand takes a hit.
- Not good.
- It's like building a house on a foundation of sand. You need that solid base. So do your due diligence. Ask, are they transparent about their finances? Are they regularly audited?
- Our source mentioned shareholder info, financial statements, audits seems pretty intense.
- It is, but this is serious stuff. You're entrusting them with sensitive data, your reputation. At Verestro, we're proud of our transparency. We undergo rigorous audits, security protocols
meet the highest standards.
- And speaking of standards, our source mentioned PCI DSS compliance.
- Right.
- Can you impact that for us? Why does it matter?
- So PCI DSS stands for payment card industry data security
standard. It's a whole set of requirements to protect cardholder data
and prevent fraud.
- Okay.
- It can be complex, but it's essential. A good partner is not only compliant themselves. They help you navigate it all. Make sure you're meeting all the requirements.
- This has been eye-opening, truly. We covered revenue, features, security, stability.
- It's a lot to consider.
- It's not about the cheapest option. It's about the right fit. Any final words of wisdom before we wrap up?
- I'd say ask yourself, does this partner get my vision? Are they invested in my long term success? That's what makes a partnership work.
- Fantastic advice. Huge thanks to our expert for all the insights today.
- Thanks for having me. This was fun.
- And listeners, remember, this is just the tip of the iceberg. Do your own research, ask those tough questions, find a partner who will help your business soar. Until next time, keep on diving.
Source: https://developer.verestro.com/books/knowledge-center/page/ranking-of-card-issuing-companies
