Cutting Card Program Costs
When considering how to save money in the back office, some say too many credit unions retreat from looking carefully at their credit and debit card program, often believing the portfolios are too complicated to understand or manage more efficiently.
Some card consultants, either with processing firms, CUSOs or independent, argue against this misconception, contending that credit unions can and should manage their card programs with cost management in mind.
It can also be expensive, costing $10 to $12 per account, whether the account is closed or not, Irving said. Sometimes, it might be less expensive to figure out which services the credit union could more efficiently handle itself and which ones really needed to be bundled.
The fourth tip, while common knowledge among most credit unions, is not done enough, some consultants have noticed. If a credit union is using a third-party card processor, it should make sure that the processor is regularly purging their file of old, closed, inactive or otherwise dormant accounts since credit unions will often be charged on the basis of all accounts, not just the open ones.