Card System Issues

Card System IssuesChallenges with existing card processing systems

Issue map

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Top benefit driving issues

Advanced decisioning

Time to market

Fraud prevention

Auto-evaluation triggering

Lost cross/up-sell

Complex pricing

Reduced suit exposureAutomated

error recovery

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Processing system impact

Data structure Embedded processing

controls Processing structure Rigid processing rules Inflexible component

interaction

processing system limitations

Business Issues

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Advanced decisioning

Issues Reduce conflicting manual

decisions– Offers– Repricing– Retention– Service

Drive policy decisions with facts

Optimize for all account activity/status

Automate manual decisions– Speed– Consistency

Support "test & learn" process

System considerations Relationship data structure Account strategy based controls Behavior-strategy analytics Champion-challenger setup,

tracking, & resolution Rules-based action processing

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Time to market

Issues Faster product setup Offer/product element reuse Offer/product elements visibility Offer creation/rollout repeatable

process Product rollout process tracking Mass offer/product changes

System considerations Parameter-based offer/product

definition Offer database Offer development workflow Offer-product data relationship Product-account data separation Product version effective dating

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Fraud prevention

Issues Enhanced authorization

authentication Expanded access device

validation data Resistant access device support Access device activity tracking Robust secondary user data Multiple/temp address support Simplify post fraud action

– Single card disabling– Temporary account access device– Primary card number replacement

System considerations Separate account, access device,

customer & address data Allow multiple customers,

access devices & addresses per account

Customer & address typing Access device characteristics by

device type Separate access device

validation rules/data Non-intelligent internal account

ID External device ID related to

internal account ID

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Auto evaluation triggering

Issues Action evaluation on-demand Automatic timely account

evaluation Definable evaluation criteria Definable evaluation to action

mapping Timely & coordinated action

execution Action override capability Action tracking, review &

approval capability

System considerations Trigger based processing Intelligent triggers database Workflow

processing/management Evaluation engine Behavior analytics aggregation

in operational data

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Lost cross/up-sell

Issues Depth of understanding

customer & relationships Previous offer/response tracking Automatic offer matching Pushing next best offer to

interaction Multi-channel offer & follow-up

System considerations Customer datawarehouse Customer-offer tracking Offer decision/optimization

engine Interaction workflow integration

of offer engine

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Complex pricing

Issues Unique account terms Transaction level pricing Special terms

– Major purchase– Cash– Seasonal

Fee separation Interest separation

System considerations Data separation of accounting

components Support for variable number of

accounting components Parameter-based terms controls

at accounting component level Criteria-based transaction

posting to accounting component

Support for dynamic creation of accounting component at transaction posting

System for spreading payment among accounting components

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Reduced suit exposure

Issues Disclosure-terms assurance

– Accurate disclosure of complex pricing/incentives

Timely disclosure Opt-out/in control Change tracking/retention

System considerations Disclosure language template

repository Support for disclosure template

components Master disclosure to

components relationship data Terms to disclosure template

component mapping Dynamic insertion of terms data

into template at disclosure creation

Account level disclosure history Opt-out/in data at account level Disclosure to opt data related

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Auotmated error recovery

Issues Writeoff reduction for

conservative adjustment Effort/time to correct for errors Rapid response to control errors Reduce disaster recovery catch-

up

System considerations Back-dated transaction

reposting capability– True, not estimated

Effective-dated posting terms and control parameters

Posted transaction retention Account snapshot capability and

retention

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• Quicker and more accurate problem identification and solution• More dependable delivery of key payment initiatives/projects• Creative and tested solutions to payment systems improvements• An objective viewpoint that sees the whole picture• Deep experience delivering business value through technology

Further information on this

Contact: Mike Batton, President, Batton Consulting Inc. | [email protected] | 630-443-7735 (O) 630-809-2817 (M)

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