In a series of recent blogs, we've covered some of the broad principles of card programme management. If you need a reminder, we've explained what card programme management is; looked at the different roles and duties within a card programme; and talked about which kinds of businesses should consider engaging a card programme manager. While there's a full guide to card programme management report available to download here, in this blog we want to get into the nuts and bolts of the topic and explain how card programme management works.
We'd be delighted to set up a meeting to talk through card programme management in more detail – please get in touch today if you'd like to do this – but for now, here's a closer look at the various stages of a card programme.
Ideation
Even before the planning stage, businesses need to consider why a card programme would be useful to their business. It's important to ask questions like:
- What are the challenges of tracking payments to customers?
- Is our current setup the most efficient way of issuing payments to customers?
- What do our customers or audiences need?
- How many clients do we need to serve?
Design
The design of a card programme isn't just about the look and feel of the card product, but how the service works behind the scenes. Aspects such as the structure, revenue model, features, unique selling point, key benefits, rules, and conditions will need to be considered.
Issuing
The process of issuing involves creating and distributing custom cards to customers that enable them to make purchases or earn rewards. This involves utilising BIN (Bank Identification Number) sponsorship from a financial institution to process payments, while a card programme manager is required for the secure managing customer accounts and handling inquiries.
Cardholder onboarding and bank sponsorship
Onboarding cardholders includes performing Know Your Customer (KYC) checks to comply with Anti-Money Laundering (AML) regulations. This can only be done by a bank sponsor or BIN sponsor as they have the appropriate authorisation from central banks to conduct such checks.
Compliance and regulation
Tasks including compliance reporting, authorising and processing payments, and managing fraud and disputes must be performed. Card programme managers utilise their connections with processors and distributors to carry out these necessary tasks.
Risk and fraud management
It’s vital that card programme managers put in place rigorous risk management and fraud prevention strategies to protect both your business and your customers from fraud, identity theft and data breaches.
Retention and loyalty
To keep cardholders and ensure your card programme remains profitable over time, it is crucial to offer incentives such as rewards and cashback.
Reporting and analytics
Utilising reporting and analytics enables you to evaluate how well your card programme is performing and make any needed adjustments or enhancements. Analysing customer behaviour and preferences is crucial, and will inform your future customer acquisition efforts.
Change management
As technology continues to evolve, card programme managers will guide your business through any major market changes, regulatory shifts and technological upgrades.
There are a great many aspects involved in a card programme, all of which require effective planning, implementation and maintenance. While this is a lot for any business to manage on its own, with the help of an expert partner, card programmes are a way of boosting customer loyalty, attracting new customers, and unlocking new revenue streams. Have a chat with us today to find out more about how Paymentology can help you get a card programme up and running.
