2. Limit the number of PIN-based point-of-sale (POS) networks in portfolios. There are network participation fees for these networks, so by limiting the portfolio to one PIN POS, community banks can lower their costs and support better revenue margins. 3. Develop campaigns targeting higher interchange transactions and encouraging card use. Travel and dining drive higher interchange rates, so consider campaigns that encourage card use in these segments. Little shifts add up to a lot: If a bank with 10,000 cards can drive one more transaction per month across their card base, it will earn $65,000 more in interchange per year. Community banks can increase interchange revenue through simple strategic shifts because, at its core, interchange optimization is about accuracy. Banks that confirm their BIN classifications, analyze interchange by product type and ask for transparency on how transactions are routed will see stronger returns on their card programs. Next Steps To optimize your BINs, reach out to your ICBA Payments relationship manager or email payments@icba.org. Jacob Eisen (jacob.eisen@icba.org) is CEO of ICBA Payments and its wholly owned subsidiary TCM Bank. Community banks can increase interchange revenue through simple strategic shifts because, at its core, interchange optimization is about accuracy. NEBRASKA INDEPENDENT BANKER 15
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