US credit union identifies up to $183K in annual Visa fee savings
A 4-6 week Visa review at this $1-2B US credit union found up to $183K a year in network fee savings, 2-3 bps of Visa volume, in line with issuers many times its size.
| Client type | Credit union |
|---|---|
| Size | $1-2B annual card purchase volume |
| Market | United States |
| Networks reviewed | Visa only |
| Analysis time | 4-6 weeks |
| Line items flagged | 53 |
| Potential savings | Up to $183K a year |
| Savings relative to volume | 2-3 bps of Visa volume |
| Ongoing | Network Fee Tracking |
What did the review find?
The review covered Visa only and flagged 53 line items. Relative to volume, the opportunity was in the same range as much larger issuers.
Where did the savings come from?
Two-thirds came from opting out of services the credit union didn't need, and most of the rest from charges worth contesting or renegotiating with the network.
| Category | Amount | Share |
|---|---|---|
| Opt-out of unnecessary services | $124K | 67% |
| Best practice alignment | $7K | 4% |
| Fees to challenge | $52K | 29% |
| Total | Up to $183K | 100% |
How long did it take, and what data was needed?
The analysis took 4-6 weeks and used 12 months of Visa invoices and volume data. No system integration was required.
What happened after the review?
The client moved to CardTraq Network Fee Tracking to monitor implementation of the savings and flag new fees as they appear. Network fees change throughout the year, so ongoing tracking keeps the savings from slipping away.
What does this mean for other credit unions?
Network fees come straight out of member value. In relative terms, a credit union's opportunity looks much like a bank's: here it was 2-3 bps of Visa volume.
Smaller programs also carry more fixed fees per dollar of volume, which makes unused services relatively more expensive. See The Card Network Scale Penalty: Why Smaller Issuers Pay More.
Questions and answers
How much can a credit union save on Visa network fees?
In this review, a credit union with $1-2B in annual card purchase volume identified up to $183K a year, or 2-3 bps of Visa volume.
Do credit unions find the same network fee savings as banks?
Relative to volume, the range was similar. This credit union's 2-3 bps compares with 1-6 bps at the larger issuers in these case studies.
What data does a credit union need for a network fee review?
Twelve months of network invoices and volume reports. No system integration is required.
Figures are annualized from a 12-month review of Visa billing.
Most programs we review are paying network fees they don't need to. A review takes 4-6 weeks and needs only your network invoices and volume reports.
Get a network fee review