CHICAGO–Ondine Irving, founder of GoCUCards, will lead a webinar on July 26 titled “Managing Income and Expense of Your Credit Card Portfolio.”
The three main sources of credit card program income should be approximately 70% finance charges, 15% interchange income, and 15% fee income, according to Irving. Fee income, in particular, is a line that credit unions are not ensuring they’re receiving their due, as numerous discrepancies exist between what a credit union should be making based upon its policies and the revenue it’s actually earning, Irving said.
“I strongly suggest that credit union card portfolio managers review all the program system parameters to determine where and why discrepancies exist,” Irving said. “Changing regulations following the CARD Act have required credit unions to change fee structures but the parameters have not been reviewed and reset.”
Irving said credit unions rarely reach 15% on their fee income. According to Irving, following the CARD Act, credit unions have neglected to review late-fee parameters to account for possible new risks, over-the-limit parameters have not been adjusted, and more. A 30-year veteran of credit union card portfolio management, Irving said she will walk webcast participants through all of this in detail during the two-and-a-half-hour workshop.
Credit unions should expect their credit card programs to generate a minimum annual net income of $75 per account, according to Ondine.
According to Ondine, those who sign up for the webcast will earn far more than the $249 per credit union price tag.