Credit cards remain the most widely used credit product in the U.S., and the Federal Reserve’s latest payments study points to a continued climb in the number of card transactions, their overall value, and mobile wallet and P2P card volumes. While every community bank’s credit card program expertise and risk tolerance will vary, there is a business model to fit your needs. 

Credit card programs are an opportunity to enhance revenue and extend customer reach. At ICBA Payments, we want to make sure your bank is poised to capitalize on its credit card program in 2025.

Direct credit card programs

A direct card program offers a path to maximizing revenue potential. Through ICBA Payments’ Direct Credit Card Program, your bank:

  • Issues the consumer or commercial cards

  • Directs underwriting decisions

  • Retains maximum program revenue

  • Manages compliance and risk mitigation, with the help of ICBA Payments

Cardholder servicing is typically outsourced to a leading vendor. ICBA Payments offers a proprietary Fraud Loss Protection Program (FLPP) to help absorb unforeseen card fraud losses, which are an unfortunate but inevitable part of the business. 

In this model, ICBA Payments is your partner, providing a top-notch program, including data, marketing resources, operational tools and the support of our experienced relationship management team. ICBA Payments has provided this service to more than 3,500 banks over its 40-year history.

Agent bank card programs

Agent bank card programs are offered through our wholly owned subsidiary, TCM Bank N.A. TCM handles all operational aspects associated with a card program and supports community banks that may be hesitant to directly manage credit card programs. 

TCM Bank issues consumer or commercial cards and performs all underwriting, while your bank receives a portion of the revenue. The issued card is then branded with your bank’s information, and you are able to offer a competitive product suite. TCM Bank:

  • Assumes credit risk and program liability

  • Handles cardholder correspondence and servicing

  • Ensures your program complies with laws and regulations

With more than 700 agent bank partners and 25 years in the business, there are few providers with our level of experience.

Lost opportunity costs

We’re at an important crossroads for cards. It’s time for community banks to consider not only the cost of upscaling or launching a new card program, but also the cost of not acting: Where will you be in a few years if you choose not to offer a competitive credit card program or underinvest in one you have? 

The answer just may set your card strategy for the year ahead.