US card issuer identifies up to $8.6M in annual network fee savings
The program ran a robust invoice review process, and its net fees were already below industry benchmarks. A CardTraq review still found up to $8.6M a year across 135 line items, most of them services the program no longer needed.
| Client type | Card issuer |
|---|---|
| Size | $50B+ annual card purchase volume |
| Market | United States |
| Scope | Network fee review |
| Analysis time | 4-6 weeks |
| Line items flagged | 135 |
| Potential savings | Up to $8.6M a year |
| Savings relative to volume | 1-2 bps |
| Ongoing | Network Fee Tracking |
What did the review find?
This was a mature, well-negotiated program, so the savings weren't in billing errors. They were in what the program was paying for.
Where did the savings come from?
Seven of every ten dollars came from opting out of services the program didn't need. The rest came from aligning processes with how top programs run them, and from charges worth contesting with the networks.
| Category | Amount | Share |
|---|---|---|
| Opt-out of unnecessary services | $5.98M | 70% |
| Best practice alignment | $1.84M | 21% |
| Fees to challenge | $0.73M | 9% |
| Total | Up to $8.6M | 100% |
How long did it take, and what data was needed?
The analysis took 4-6 weeks and used 12 months of network 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 large issuers?
A well-run program can still pay for services it doesn't use. The networks add and change services regularly, and many start billing by default, so costs build quietly even when invoices are reviewed carefully.
Questions and answers
How much can a large US card issuer save on network fees?
In this review, up to $8.6M a year, or 1-2 bps of annual card purchase volume, at a program with a robust invoice review process and fees already below industry benchmarks. CardTraq reviews typically identify 7-15% of network fees in potential savings.
Can a program that reviews its invoices carefully still be overpaying network fees?
Yes. This issuer had a robust invoice review process, yet 70% of the opportunity came from opting out of services it didn't need.
How long does a network fee review take for a large issuer?
This analysis took 4-6 weeks using 12 months of network invoices and volume data, with no system integration.
Figures are annualized and show the full potential identified.
Even well-run programs are often paying for network fees they don't need. See what a review could find in yours.
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