Community banks still lean on debit cards for most of their cardholder activity, yet the economics of those transactions are not favorable. Debit interchange is low even as spending shifts towards credit.
Why Credit Cards Matter
- Higher Revenue – Higher credit interchange and, where customers revolve, finance charges deliver multiples of debit income.
- Usage Depth – Credit lines allow larger-ticket categories like travel, advertising and capital equipment that seldom show up on debit.
- Relationship Stickiness – Rewards, favorable APRs and virtual card controls create daily engagement and reduce attrition.
Credit Works for Every Customer Segment
- Consumers already choose credit as often as debit; a community-friendly card that offers clear rewards or a better rate can earn a larger share of wallet.
- Small businesses appreciate a card that sweeps cash back into the operating account and integrates transactions with accounting software.
- Commercial and public-sector clients are adopting virtual, purchasing and travel-and-expense cards for added security, rich data, and working-capital float. Analysts project double-digit annual growth in commercial cards in the coming years.
Across all three groups, credit cards deepen relationships, provide richer spend data and deliver much higher revenue than debit.
Four Proven Steps to Shift Spend Toward Credit
- Let debit data lead
Pull transaction data to spot business customers whose debit outflow points to hidden credit capacity. - Make digital the default
Promote mobile app usage with provisioning to Apple Pay and Google Pay and leverage modern digital user interfaces to keep the card top of wallet. - Modernize risk and compliance
Advanced fraud strategies and relationship data usage in credit policy reduce risk. Leverage digital capabilities for improved traction for compliance. - Activate every sales channel
Equip branches, call centers, treasury teams, email, and direct mail with clear talking points. Promote through campaigns and refine offers based on performance.
How CorServ Accelerates the Journey
CorServ’s Account Issuer Credit Card-as-a-Service platform lets community banks stand up full-featured consumer, small-business and commercial card programs within weeks, including:
- Built-in compliance framework with community bank-friendly products.
- Comprehensive capabilities across all customer segments.
- End-to-end program management with no need for additional staff
- Advanced technology stack that delivers modern customer experience.
Dozens of banks have already shifted spend from low-yield debit to high-margin credit with our platform, boosting interchange revenue, strengthening relationships, and future-proofing their payments franchise. Learn more here.
