The Challenge
A global top 25 banking group with approximately 13 million cards and annual POS sales of USD 37 billion was facing growing costs from Visa and Mastercard fees. These rising costs threatened profitability across their Latin American subsidiaries, including operations in Chile.
They needed an effective solution to optimize these fees without disrupting their card services. That’s where Intelica's expertise in Card Network Billing Analysis came into play.
The Solution
Intelica’s Proven Two-Phase Approach
Comprehensive Fee Review
4 Weeks
Intelica conducted an exhaustive review of Visa and Mastercard invoices, identifying seven critical fees with the highest potential for cost savings. The Card Network Billing Analysis was customized to address each subsidiary's unique challenges, starting with their Chilean operations.
Systematic Implementation
6 Months
Intelica's team developed a step-by-step cost-saving strategy and categorized the initiatives based on implementation complexity. The easiest savings were targeted first, with 100% of these captured within the first 3 months, followed by more complex fee reductions over the remaining 6 months.
Our targeted Card Network Billing Analysis resulted in a cost-saving initiative that saved USD 460K in annual fees across their South American subsidiary, increasing its profit margin by 2.5 percentage points. Additionally, USD 120K in annual savings was realized within the first 3 months.
The proactive strategy ensured that the client would continue to identify further cost-saving opportunities, enabling them to maintain profitability without disrupting their day-to-day operations.
Key Outcomes
Incremental profitability
Savings realized within 3 months
Incremental margin
Client Testimonial
Intelica delivered fast, measurable results without any disruption to our operations. Their expertise in optimizing card network fees helped us realize significant savings across our Latin American subsidiaries.
