Get more value from one of your most important operating relationships.

Your processor agreement establishes the rates you pay, but your total processor expense also depends on how customers use the program and how the program operates. Service calls, paper communications, disputes, card production, and other activities can materially affect cost over the life of a contract.

CardTraq benchmarks your commercial terms, identifies the activities driving processor expense, and evaluates whether you are receiving the performance and service levels in your agreement. That gives you opportunities to improve program economics now and an independent fact base for your next renewal.

Know what is driving your costs today, and negotiate from strength when the contract renews.

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Watercolor aerial illustration of winding roads through a city, representing the flow of card payments through processors.
Why It Matters

Do you understand what is driving your processor costs?

Processor rates are generally defined in long-term agreements, but the total amount you spend depends on more than the contract. Transaction volumes, customer behavior, operational processes, service usage, and product decisions can all materially affect the invoice.

CardTraq separates rate-related opportunities from usage-related cost drivers, helping you understand where negotiation, operational improvements, or both can produce a better outcome.

Are your rates and terms competitive?

We benchmark contracted unit rates across core processing, managed services, card production, and other major cost categories. This provides an independent view of how your commercial terms compare with those available to similar institutions.

What is driving your processor usage?

Customer-service calls, paper communications, disputes, card production, and other processor-supported activities can increase costs even when unit rates remain unchanged. We identify the activities behind the invoice and the product or process decisions that may reduce them.

Are you receiving the service you contracted for?

Competitive pricing is only part of the equation. We assess whether the processor is meeting its contractual commitments and whether gaps in service are affecting operations, customers, or the value of the relationship.

Together, these insights show what is determined by the contract, what is driven by usage, and where action can improve both cost and customer experience.

How It Works

A path to a stronger processor contract.

Three phases, from an independent diagnosis to a stronger renewal.

1

Diagnose

We benchmark your contracted rates, analyze the activities and volumes driving processor expense, and assess performance against contracted service levels. This distinguishes commercial opportunities from product, operational, and service-delivery issues.

2

Improve program economics

We identify practical opportunities to reduce avoidable processor usage and improve the customer journey. That may include reducing preventable service calls, expanding digital communications and self-service, addressing recurring disputes, or improving processor performance.

3

Prepare for renewal

Ahead of renewal, we develop a negotiation strategy grounded in peer benchmarks, program economics, and actual service performance. Where appropriate, we test the market to compare the terms available from alternative processors and determine whether staying or switching offers the stronger outcome.

The Result

Lower costs.
Better customer experiences.

A more efficient card program that costs less to operate and works better for customers.

  • Reduce processor expense through competitive commercial terms and lower avoidable service usage.
  • Address the sources of excessive customer-service calls and other costly customer friction.
  • Use digital communications and self-service capabilities to improve convenience while reducing print, mailing, and servicing costs.
  • Improve processor performance and accountability so service issues are resolved more effectively.
  • Create lasting value through better pricing, smarter product decisions, and more efficient operations.

And because we can work under aligned, success-based commercial models, our incentives are tied to the measurable value you capture.

Meet Your Lead

Processor- and bank-side experience, consultant's rigor.

Carlos Olivas

Carlos Olivas

Processor Optimization Lead

With over two decades in payments and financial services, Carlos has worked on every side of the card program relationship: inside a bank at Ally, inside a major processor at Fiserv, and as a consultant at PwC, where he supported financial services clients on strategy, operations, and technology. That means he understands how issuer processing is really priced, contracted, and delivered, and how to turn that knowledge into leverage. For CardTraq clients, he benchmarks processor terms, identifies the activities driving total expense, and helps issuers improve program economics and prepare for renewal. He is bilingual in English and Spanish.

FAQs

Frequently asked questions

1What is processor relationship optimization?
Processor relationship optimization is an independent review of your card processor's commercial terms, usage-driven costs, and service performance. CardTraq identifies opportunities to reduce processor expense, improve the customer experience, hold the processor accountable, and strengthen your position at contract renewal.
2How is processor optimization different from network fee optimization?
Network fees are charged by Visa and Mastercard. Processor fees are charged by issuer processors such as Fiserv, TSYS, and FIS to operate card programs. They are separate cost bases governed by separate agreements. CardTraq helps optimize both; this service focuses on the processor relationship.
3Can we reduce processor costs before our contract renews?
Yes. Although unit rates are generally established in the contract, total processor expense also depends on service volumes and program activity. Reducing preventable customer-service calls, expanding digital communications and self-service, and addressing other operational cost drivers can produce savings before renewal while improving the customer experience.
4When should we begin reviewing our processor relationship?
A review can be valuable at any point in the contract, particularly when processor expense is increasing, service performance is falling short, or product changes are being considered. For contract renewal, beginning twelve to twenty-four months in advance provides time to build a fact base, evaluate alternatives, and negotiate from a position of strength. A review is also valuable after a processor migration.
5Do we have to switch processors?
No. Switching is one option, not the objective. In many cases, the best outcome is improved operations and a stronger agreement with the current processor. Testing the market provides credible alternatives and evidence for the negotiation.
6What processor costs and activities do you review?
We review major cost categories such as core processing, customer-service support, card production, disputes and chargebacks, fraud services, correspondence, and platform services. For each category, we examine contracted rates, actual usage, service performance, and the product or operating decisions driving expense.
7How do you charge for this work?
We offer aligned, success-based commercial models so our incentives match yours. The appropriate structure depends on the scope and opportunities identified during the initial review.

Ready to optimize your processor relationship?

Our payment economics experts can review your processor costs and performance, and help you enter your next negotiation from a position of strength. Let us show you where the opportunity is.

Book a review or contact us for a confidential conversation.

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