Busting the Myths- Paying Loans with a Card

Paying loans with a Card the BUSTING MYTHS Shifts in regulation, consumer spending and interchange rates have created myths about paying loans with a card, preventing lenders from capitalizing on big benefits. myth 1 myth| 2 myth s 3 ...... •----- No lenders accept card payments Interchange is 3% on debit cards Loan payments are a cost center »busted busted busted -> -> The top five lenders accept debit cards, Growth in debit card Costs vary, and average payment dollar amount and geographic area impact costs. For example, debit card issuers with Accepting card for loan payments and adjusting the payment cost structure can, in turn, generate revenue. payments on loans was 14% in 2013 across consumer finance. >$10B in assets have a cost of $0.22 plus 5 bp. myth 4- .... myth 5 Debit card interchange only costs $0.22 I cannot afford to accept cards » busted busted There are other fees from card associations, merchant acquirers and gateways. For example, debit card issuers with <$10B in assets have different costs. Benefits to accepting cards can include increased paper bill suppression, fewer calls to the call center, better consumer satisfaction and reduced collections costs. Leading lenders are already busting myths - accepting card payments and saving 25%. UNIVERSAL ACI PAYMENTS Source: ACI Worldwide