Revenue: Interchange vs. Overdraft Created by m.moebs on 11/27/2022 9:50:22 AM
Ever wonder what total annual consumer interchange is? Is total interchange revenue greater than overdraft revenue?
What’s the right mix of interchange revenue and overdraft revenue? Can Interchange and ODs work hand and glove?
Moebs $ervices finds solutions but you cannot solve something without knowing the facts. Read below the answers to the questions.
As usual we welcome positive, negative, and extraordinary comments.
Happy Holidays, Mike
Which is Fetching the Most Revenue per Transaction Account?
"One T-Acct fee appears to be falline. vet this is a tortoise vs. hare with a hunter in the wings with an open hose."
Michael Moebs. Economist & CEO of Moeos Services MS a Financial Service Research Firm.
Lake Forest IL (November 27, 2022) There are two ways T-Accts (checking accounts) can be profitable - fees and balances. Rates can be used to retain T-Accts, but are a cost. Fees come from overdratts (OD, interchange or swipe tees, and service charges such as falling below a minimum balance required or ofticial checks. The actual prices are $21.52 for an OD, $0.34 for swiping a debit card, $5 < minimum balance, and $10 for an official check. READ FULL ARTICLE