One of the great things about America is its ability to rapidly adapt to new income opportunities. And so, the revenue hole that the Durbin Amendment has opened up for many debit issuers represents a brand new opportunity –as in the case of add-on product companies. These are organizations that build value-add products and services issuers can offer to payment cardholders (usually on a monthly fee basis). Credit card issuers have used these add-on services for decades and companies who specialize in developing them will probably now find debit issuers willing to listen to them.
“While regulatory changes have presented new revenue challenges for the industry, the way we respond to these challenges, not the regulations themselves, ultimately determines our success. During this time, it is worthwhile to remember that consumers are not intrinsically profitable or unprofitable, but simply have needs. To thrive, FIs should build processes that yield a profit across the account base, not trying to make each customer equal in profitability.”