The Challenges of Setting up Your Own Card Issuing Program | Hydrogen Blog
The Challenges of Setting up Your Own Card Issuing Program

The Challenges of Setting up Your Own Card Issuing Program

Offering debit card options to your customers can be an excellent way to increase customer loyalty, offer loyalty rewards, and share other perks with your clients. However, there are many important factors to consider when starting a card issuing program. 

The process can be somewhat time intensive, and you may be searching for assistance on how to move forward. Understanding the aspects of issuing your own debit cards is the first step to developing personalized card solutions and offerings for your business and clients.

What Are the Challenges of Starting a Card Issuing Program?

If you are considering a card issuing program for your business, there are some common factors to keep in mind. Depending on your business’s specific needs and scope, these considerations will vary. Companies in almost every industry have a reason to issue cards to their customers, however, some industries, such as retail, e-commerce, gaming, fintech, and payroll have many driving factors to issue their own cards. Keep in mind the following challenges that could emerge while creating a card issuing program:

  • Timeline: How quickly do you want to roll out your card offerings? It’s natural to want to get these options out to your clients as quickly as possible. However, rushing the process may cause issues in the long run. First, develop a data-informed plan for your card program that captures the current size and demographic of your clientele. Then, determine what benefits and rewards you want to offer through your card issuing program. Only once you have outlined a detailed, comprehensive plan should you move forward with the process. 
  • Customer needs: One of your objectives will likely be driven by both your current customer base and your desire to attract new clients. As such, customer needs should be top of mind when developing your card offerings and any related debit rewards programs.
  • Costs: One of the biggest challenges when setting up your own card program is costs. There are costs for the program management, vendor costs, development costs, call centers, security, and much more. These costs can easily skyrocket to well into the six figures.
  • Vendor Integrations: Another major challenge is having to integrate with multiple vendors to setup a card issuing program. KYC/KYB vendors, data aggregators, reward vendors, sponsor banks, and program management integrations are just a few. And each of these integrations have a cost associated with them.
  • Financial Expertise: Once you get through everything listed above, you need to build the card issuing program. This takes tremendous financial knowledge. From a development, analytics, and workflow standpoint.

Other Related Expenses

In addition to the expenses listed above, there are a few other common expenses related to a card issuing program. These costs can include, but are not necessarily limited to, the following:

  • Compliance: In all cases, there will be important legal compliance considerations you and your employees will need to understand and adhere to for as long as you offer debit card options. This point is especially true if your business plans to offer consumer funded cards, which are prone to fraud and money-laundering schemes. Maintaining compliance can include adherence to expensive PCI and SOC 2 audits.
  • Legal fees: Your business likely already retains legal professionals for advice and protection. Employing an attorney specializing in debit and retail practices can be an incredibly important investment for any business that offers debit options to customers. When customers buy using debit, you may encounter missed payments and outstanding balances. This can affect your business’s bottom line and your customers’ continued loyalty and satisfaction. Legal professionals can help you navigate these issues and can protect your company from litigation. 
  • Insurance: You may also wish to invest in insurance. This is another common way to protect your business against any legal ramifications that can arise regarding card issuance. While insurance will be yet another expense, it is often a crucial investment that can end up saving you and your business an incredible amount of money and stress in the long run.

Benefits of Working With Hydrogen

As you can probably imagine, setting up a card issuing program isn’t very straightforward. It’s a complex, time-consuming, and an expensive solution to undertake. Good thing for you, there is Hydrogen. We offer everything you need through our no-code card issuing platform. Our platform includes:

  • All of the vendor integrations you need are packaged up in our platform at no additional cost to you. No need to sign agreements with 3rd party vendors.
  • All compliance, legal, security, and insurance are included.
  • You can get to market in weeks! Not months or even years.
  • Our pricing is a fraction of what it costs with our competitors.
  • It’s free to get started. No setup costs!
  • We even provide an interchange share – so you can earn revenue from your card program!
  • We offer loyalty and rewards for your new or existing card programs.
  • And much more!

Hydrogen Makes Issuing Cards Easier and More Affordable

Offering debit options to your customers can be an incredibly effective way to increase loyalty and boost your business’s overall bottom line. Hydrogen offers customizable, dynamic debit card issuing solutions that integrate seamlessly into your company’s existing structures and platforms.

With years of proven experience and expertise, Hydrogen is an ideal partner for any business — especially those implementing debit card programs for the first time. Our card program managers are highly skilled and can guide you through building a card issuing program from conception through initial rollout and beyond. 

Our innovative and dynamic cardholder rewards and loyalty platforms allow for a considerable amount of personalization and control over your business’s debit card offerings and solutions.

Sign up today to start building with Hydrogen.

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