ABA Banking Journal - November/December 2017 - 39

Reissuing debit cards, which can also
involve card design and mass-reissue
planning, isn't the only step, of
course. "Have early conversations
with your core provider because they
are key," Old Line Bank's
David Seyler warns.

01

Plan for it to take time.

02

Think about how the
program will behave in the wild.

05

04

03

Have a robust communications plan.

Analyze your labor costs.

Set financial goals.

materials and other marketing tools
about 60 days before the actual rollout.

04Analyze your labor costs.
Debit program administration
could be eating valuable staff time, so
be sure to look beyond fees.

"We looked at it from a cost
perspective, we looked at it from an
income perspective, and we looked
at it from an ease-of-operations
perspective. Obviously, we looked at
it from a customer's perspective as
well," Seyler says. That process led
Old Line to another discovery: the
statement analysis work under its old
debit program was creating significant
labor costs.
"What we found was it was very difficult
to trace the cost and the income
associated with a Visa relationship,"

he says. "It truly takes a couple of
Ph.D.s to decipher the statement
from Visa, to figure out what we were
truly getting charged and what we
were making on the interchange side.
Ease of understanding the statements
should be much easier with Discover
than it is with Visa. It's just three line
items: here's your transaction volume,
here's your interchange, and here's
your cost."

05Set financial goals.

Mike Grove is pleased that
Discover's interchange fee is working
out to be only about two-thirds of
what Visa or Mastercard charges. "It's
substantially more fee income for the
bank," he says.
"Do your math, because each brand
that you're going to look at is going to
offer different financial incentives,"

Seyler adds. "They're similar, but
a couple of basis points on the
number of transactions makes a big
difference at the end of the year." On
a five-year basis, he explains, the net
additional income for Old Line Bank
was about $300,000 per year due to
the switch.
"We probably won't recognize the full
impact of this until 2018, by the time
we get all of our cards transferred over
and they start using them and we start
seeing the income come in, but from
a long-range perspective, it certainly...
looks to be very profitable for the
organization, and we hope convenient
for our customers," he adds. "If it's
not convenient for our customers, the
whole thing falls apart."
TINA OREM is a frequent contributor to the
ABA Banking Journal.
aba.com/BankingJournal | ABA BANKING JOURNAL

39


http://www.aba.com/BankingJournal

Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2017

Chairman’s View
Upfront
Legal Briefs
Economic Outlook
Power Up Profile
Pitching In
Choices and Options Down on the Farm
Eager or Not, Every Board Needs an M&A Strategy
Adapting to Survive
More Than Just a Drink
Operations
Payments
Small Business Lending
Human Resources
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
From the Vault
ABA Banking Journal - November/December 2017 - Intro
ABA Banking Journal - November/December 2017 - ebelly1
ABA Banking Journal - November/December 2017 - ebelly2
ABA Banking Journal - November/December 2017 - cover1
ABA Banking Journal - November/December 2017 - cover2
ABA Banking Journal - November/December 2017 - 3
ABA Banking Journal - November/December 2017 - 4
ABA Banking Journal - November/December 2017 - 5
ABA Banking Journal - November/December 2017 - 6
ABA Banking Journal - November/December 2017 - 7
ABA Banking Journal - November/December 2017 - Chairman’s View
ABA Banking Journal - November/December 2017 - 9
ABA Banking Journal - November/December 2017 - Upfront
ABA Banking Journal - November/December 2017 - 11
ABA Banking Journal - November/December 2017 - 12
ABA Banking Journal - November/December 2017 - 13
ABA Banking Journal - November/December 2017 - 14
ABA Banking Journal - November/December 2017 - 15
ABA Banking Journal - November/December 2017 - Legal Briefs
ABA Banking Journal - November/December 2017 - 17
ABA Banking Journal - November/December 2017 - Economic Outlook
ABA Banking Journal - November/December 2017 - Power Up Profile
ABA Banking Journal - November/December 2017 - Pitching In
ABA Banking Journal - November/December 2017 - 21
ABA Banking Journal - November/December 2017 - 22
ABA Banking Journal - November/December 2017 - 23
ABA Banking Journal - November/December 2017 - 24
ABA Banking Journal - November/December 2017 - 25
ABA Banking Journal - November/December 2017 - Choices and Options Down on the Farm
ABA Banking Journal - November/December 2017 - 27
ABA Banking Journal - November/December 2017 - Eager or Not, Every Board Needs an M&A Strategy
ABA Banking Journal - November/December 2017 - 29
ABA Banking Journal - November/December 2017 - Adapting to Survive
ABA Banking Journal - November/December 2017 - 31
ABA Banking Journal - November/December 2017 - 32
ABA Banking Journal - November/December 2017 - 33
ABA Banking Journal - November/December 2017 - More Than Just a Drink
ABA Banking Journal - November/December 2017 - 35
ABA Banking Journal - November/December 2017 - Operations
ABA Banking Journal - November/December 2017 - 37
ABA Banking Journal - November/December 2017 - Payments
ABA Banking Journal - November/December 2017 - 39
ABA Banking Journal - November/December 2017 - Small Business Lending
ABA Banking Journal - November/December 2017 - 41
ABA Banking Journal - November/December 2017 - Human Resources
ABA Banking Journal - November/December 2017 - 43
ABA Banking Journal - November/December 2017 - 44
ABA Banking Journal - November/December 2017 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2017 - From the States
ABA Banking Journal - November/December 2017 - 47
ABA Banking Journal - November/December 2017 - Corporate Social Responsibility
ABA Banking Journal - November/December 2017 - Index of Advertisers
ABA Banking Journal - November/December 2017 - From the Vault
ABA Banking Journal - November/December 2017 - cover3
ABA Banking Journal - November/December 2017 - cover4
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