The credit card industry has achieved an unprecedented 50% growth in the last 3 years, thanks to the utilisation of co-branded cards. Large traditional banks and fintech businesses are aiming to cultivate stronger brand loyalty, increase brand visibility, and drive revenue growth by deploying more credit cards in the market. In addition to this, credit card issuers want access to a captive audience that the businesses have, in order to cross-sell other banking products.

Earlier, launching a credit card program took banks & businesses several quarters or sometimes even years. But, today, we live in a simpler, faster, super-modular world. Fintechs have changed the financial services landscape beyond recognition. With the rise of open banking, the credit-card stack is available for businesses and banks in an easy-to-integrate, plug-and-play fashion. In this article, we take a closer look at credit card-as-a-service.

What is Credit-card-as-a-Service?

Credit cards in India can be issued solely by Regulated Entities, which in most cases are Scheduled Commercial Banks (SCB) and rarely Regional Rural Banks through their sponsor SCBs or NBFCs with explicit approval from the regulator. Credit-card-as-a-service can be of the following types:

As Technology Service Provider (TSP) to Banks: To bolster the regulated entities’ tech capabilities for card issuance and management, the banks tend to outsource such services to technology service providers specialising in products like credit cards.

Co-Branding Integration: Partner Businesses can issue personalised co-branded cards to their customers by integrating with a Credit-card-as-a-service provider, which in turn does all the requisite plumbing with the issuing entity and the card networks. The role of the co-branding business partner in this transaction will be limited to that of a marketer/distributor.

Inside the Machine.

A credit-card-as-a-service provider takes care of the following modules, depending upon whether the card being issued is a secured or an unsecured one so that you can focus on your topline and bottomline.

Application Processing & Onboarding: The process of enrolling and setting up a new customer account with the credit card issuer.

Card Personalisation and Issuance: Customising and producing physical credit cards with personalised details for approved applicants.

Card Activation: Enabling the functionality of a newly issued credit card for the cardholder to start using it.

Card Replacement / Hot-listing / Renewal: Handling requests for replacing lost, stolen, or damaged credit cards, blocking cards reported as lost or stolen and renewal of expired cards.

Card Management: Overseeing the ongoing administration and maintenance of credit card accounts, including credit limits, usage monitoring, and account updates.

Card Plastic Specifications Compliance: Ensuring that the physical credit cards meet industry standards and compliance requirements.

Authorisation Processing: Verifying and approving transactions made using the credit card by checking available credit and account status.

Open to Buy: The remaining credit limit available for the cardholder to use after accounting for existing charges and pending transactions.

EMI: Enabling cardholders to convert large purchases into equal monthly instalments for easier repayment.

Billing Module: Generating and managing credit card statements with detailed transaction information and payment due dates.

Fee Management: Administering and collecting various fees associated with credit cards usage, such as annual fees or late payment fees.

Rewards Program: Implementing and managing a program that offers cardholders rewards or benefits based on their credit card spending.

Operations: The overall management and coordination of the credit card service, including settlement & recon, customer support, fraud prevention, and compliance.

Notifications & Alerts: Sending timely notifications and alerts to cardholders regarding transaction updates, payment reminders, and security alerts.

Delinquency Module: Managing and addressing instances of late or missed credit card payments by cardholders.

Data Management: Safeguarding and managing the collection, storage, and processing of cardholder data in compliance with data protection regulations.

How do the stakeholders interact?

Given below is a sample stakeholder diagram that illustrates how the different parties interact in the issuance & management of a secured credit card by a corporate / business.

CARD91 is building credit-card rails to help Indian businesses and banks launch their credit card programs at industry-best speeds. Reach out to us –

If you are a Bank, looking for a credit card issuance & management solution.
If you are a Business, planning to launch a co-branded credit card.
If you are a Corporate, planning to launch a corporate credit card program for employees.

Authored by Praveen Varghese, Product Manager, CARD91

Today, banks issue various prepaid instruments like prepaid cards, digital wallets, gift cards, fastags, etc. that are mandated to comply with certain regulations, as prescribed by the regulator in its master directions. At the same time, regulated entities carry out remittances, issue forex, international debit and international credit cards governed by tax laws. Any issuer providing multiple types of instruments, or partnering with multiple technology service providers is expected to follow these regulations and laws. The prepaid instrument regulations are meant to monitor/manage the level of prepaid instrument loading and usage at an individual customer level. The tax laws focus on collecting tax at source (TCS). These compliances demand a centralised repository that takes care of the following:

Uniquely identifying the customer and rolling up based on personally identifiable information (PII) sought from the customer at the time of onboarding.

Classifying customers based on their risk-profile categorisation.

Maintaining personalised limits at the customer level.

Controlling loading and usage at the issuer level.

Intimating the Bank / Regulated Entity on TCS applicability and rates.

This is precisely what the Centralised System of Records or C-SOR offers. A centralised System of Records (C-SOR) is a centrally managed repository that maintains customer-level records for a range of instruments issued by technology service providers (TSP) on behalf of the issuer. All customer actions undertaken by the TSP are sent to C-SOR for verification and validation. This means that only C-SOR-validated customer actions are treated as valid. Given below are a few scenarios that illustrate how the Centralised System of Records could be used by issuers in the context of various businesses they undertake.

Prepaid Cards: Bank and Non-bank PPI issuers issue prepaid cards through multiple TSPs. To maintain the balances and daily/monthly/yearly transactions allowed across transaction types and KYC types, be it full KYC or small PPI, the issuing entity should be employing a centralised system of records. For instance, a customer who was onboarded via both TSP1 and TSP2 will be identified as a single customer in the C-SOR system and the usage data should be managed accordingly.

Payments Bank: Payments Bank Savings Account balances plus balances contained in PPI or other internal wallets should not cross 2 Lakh INR at EOD. The differential should be swept into its partner Scheduled Commercial Bank’s deposit account. CSOR makes sure that the aggregate balance across applicable instruments doesn’t cross the prescribed limit.

LRS Limit Maintenance: Limits under the Liberalised Remittance Scheme (250,000 USD in a fiscal year) can be maintained by the C-SOR based on usage across instruments like Credit Cards, Debit Cards, Remittance Accounts and Forex Cards. The issuer can also be notified about usage that affects the TCS charged at a customer level.

CARD91 has built a robust centralised system of records as an API-led solution which lets issuers monitor its registered customers on a real-time basis. For more information, please reach out to sales@card91.io.

Written by Praveen Varghese, Product Manager, CARD91.

In today’s fast-paced world, credit cards have become an integral part of our financial landscape, offering convenience, security, and flexibility for seamless transactions both online and offline. However, credit cards go beyond mere payments, providing a range of value-added services that enhance the overall user experience. One such service gaining prominence is the Reward Loyalty Program.

Reward Loyalty Programs incentivize cardholders for their spending habits and loyalty to a particular credit card issuer. These programs offer various benefits, including differential reward points, closed-loop EMI programs, meta-data engines, and cardholder-defined actions, significantly enhancing the cardholder’s experience.

Differential Rewards Points:

A key feature of Reward Loyalty Programs is the differential rewards points system, allowing credit card issuers to offer rewards based on cardholders’ spending patterns. This feature goes beyond Merchant Category Codes (MCC) or Transaction Identification (TID), allowing customization based on parameters such as pin code, duration, or specific MCC for particular dates. For instance, cardholders may receive 5x reward points during special occasions like birthdays or wedding anniversaries, adding a personalized touch to the rewards program.

Meta Data Engine:

The Meta Data Engine enhances portfolio management for credit card issuers by efficiently processing vast amounts of data for better decision-making. This tool empowers portfolio and product teams to collaborate effectively, enabling them to identify new opportunities and convert potential customers into cardholders.

Card Holder Defined Actions:

The Card Holder Defined Actions feature empowers cardholders to take various actions through mobile applications, such as increasing credit limits or using reward points as per their preferences. Integration with aggregator EUROP Assistance enables cardholders to redeem rewards across various industries and companies, enhancing flexibility and utility.

In conclusion, Reward Loyalty Programs in credit cards offer a holistic approach to enhancing the cardholder experience, particularly appealing to the millennial demographic. By offering personalized rewards, affordability through EMI options, efficient data management, and user-defined actions, credit card issuers can differentiate themselves and add significant value to their customers’ financial journeys, aligning with the evolving preferences of the millennial generation.

Authored by Deepak Bhatt, Director of Sales at CARD91

In today’s ever-evolving financial landscape, optimizing credit card management processes is imperative for sustained growth and regulatory compliance. That’s why I’m excited to introduce Optimus – an advanced credit card tech stack meticulously developed by CARD91. Optimus, derived from Latin meaning “The Best,” signifies a significant advancement in credit card life-cycle management, empowering financial institutions and raising customer service standards. 

With its customer-centric approach, Optimus enables financial institutions to meet the diverse needs of digitally savvy users. Through secure onboarding and a seamless digital journey, Optimus facilitates faster customer onboarding and improved service quality. By providing personalized rewards and streamlining processes, Optimus enhances customer satisfaction, elevating the overall customer experience and delivering added value to help institutions stand out in the rapidly growing credit card market.

Here are key features that position Optimus as a game-changer in credit card management –

Regulatory Compliance and Modernity:

Optimus is meticulously designed with a modern and modular framework to ensure strict adherence to industry regulations. This architecture provides financial institutions with a robust platform to navigate complex regulatory landscapes confidently. By upholding regulatory standards, Optimus mitigates the risk of penalties and legal issues, fostering a secure operational environment.

Configurable Credit Programs:

Optimus offers unparalleled configurability, allowing institutions to tailor credit programs to diverse customer needs and market dynamics. From setting credit limits to defining spending criteria and incentivizing usage, Optimus provides the flexibility to orchestrate credit programs seamlessly. This adaptability empowers institutions to stay agile and responsive to evolving market demands, driving innovation and maintaining competitiveness.

Customised Rewards:

Optimus enables financial institutions to offer personalized rewards tailored to individual cardholders’ preferences and spending habits. Whether it is cashback on specific categories, discounts at preferred merchants, or exclusive access to events, Optimus empowers institutions to create bespoke rewards programs that resonate with their customers, fostering stronger loyalty and engagement.

Digital-First Approach: 

Optimus offers a digital-first approach, prioritizing a user-centric experience aligned with modern expectations. By leveraging optimized digital channels and streamlined processes, Optimus enhances convenience and accessibility for cardholders, ensuring seamless interactions and efficient credit card management.

In conclusion, Optimus represents a transformative milestone in credit card management technology. With its robust regulatory compliance, configurable features, rewards program, and digital-first approach Optimus empowers financial institutions to navigate intricate regulatory environments while delivering unparalleled customer experiences.

I also extend my heartfelt congratulations to the exceptional CARD91 team for their dedication and innovation in launching Optimus. 

Ready to experience the future of credit card management? 

Reach out, and let us demonstrate the power of Optimus. Book DEMO now.

(Blog Authored By: Ajay Pandey, CEO & Co-Founder CARD91)