Co-branded Card Issuance, Explained — III
Part III — Commercial Aspects
Published in
1 min readApr 19, 2020
In Part I and Part II we looked at program design and experience design for co-branded cards. Commercials play a crucial role in a lot of decisions with regards to program and experience design. Commercials can make or break the program. In this piece, we look at commercial aspects from the program from cost and revenue standpoint.
Revenue Considerations
- Card fee (one time issuance)
- Annual Membership fees
- Card renewal fees (on card expiry / blocked cards)
- Interchange fees (% share negotiated with sponsor bank)
- Any other subscription fee for loyalty program to with card is associated
Cost Considerations
- Card printing cost (lot size considerations)
- Card dispatch (logistics) cost
- KYC costs
- One time program implementation fees
- Switching fees
- Platform fees (for card processing platform)
- ATM, IMPS fees — if enabled.
- Costs associated with rewards redemption — if any.
- Sales & marketing promotion costs
Reach out to me if you would like to discuss further on this topic. I am at bits.ankit@gmail.com | https://www.linkedin.com/in/a4ankit/ .
