SEATTLE--(BUSINESS WIRE)--Lost revenue due to large-scale credit card reissuing events no longer needs to be a problem for merchants and issuers. Switch, Inc. a leading fintech company, announced today that their proprietary card-on-file technology, CardSavr, provides the only API to prevent customer attrition and increase revenue during major card reissuing events, by placing newly issued cards in use immediately upon activation. With the CardSavr API, co-branded cards can instantly be selected as the payment of choice on the issuing brand's website, as well as thousands of other merchant sites.
Large-scale reissuing episodes include card network conversions (e.g. American Express to Visa) or any sizable merchant data breach that can trigger a massive group of cards to be replaced at once. In most of these cases, consumer spending activity drops when the cards are in transition, leaving merchants and issuers vulnerable to lost business and diminished revenue. Cardholders bear the burden of updating their cards online. As purchasing friction increases for cardholders, customer satisfaction with the issuer brand decreases. It is estimated that attrition rates of new customers hover between 25% and 40% at most institutions, as reported by The Financial Brand.
“With CardSavr, U.S. issuers and merchants have a first-of-its-kind weapon to not only protect but also grow their card services revenue during a full card portfolio flip, or addressing wide-spread security breaches,” said Chris Hopen, CEO and Co-Founder of Switch, Inc. “CardSavr is the only technology, available today, that can ensure newly issued cards are electronically provisioned to merchants and quickly put back into use by cardholders during major reissuance events.”
CardSavr’s potential impact on co-branded card programs is garnering support from leaders and innovators in the payment industry.
Carol Cosby, former Executive Vice President at MasterCard Worldwide, has seen the damage broad credit card reissuing events can inflict on the financial industry and the threats it poses to retailers. “CardSavr provides a truly breakthrough platform that will save issuers and merchants from the unavoidable challenges and pitfalls that reissuing brings,” said Cosby. “Merchants no longer need to feel hopeless and blindsided by this unfortunate, yet inevitable turmoil during any large-scale card reissuance. CardSavr provides a sound and issuer-exclusive brand experience that is easily applied to a variety of issuer solutions today.”
CardSavr is multifaceted and positioned to resolve many financial and credit card industry issues, all in one platform. “Merchants and card issuers continue to face an increasing myriad of threats to their customer base and bottom line in an effort to keep payment cards active. CardSavr addresses these threats quickly and proactively, in one easily integrated API,” added Hopen.
CardSavr is the first and only API to automatically update cards across thousands of merchant sites instantly. The patent-pending technology enables financial institutions and processors a seamless solution for their cardholders to update new or existing cards and simultaneously assign their preferred payment method on-file, anywhere they pay online.
Switch uses machine learning technology to build a crowdsourced database of automated robotic processes. Virtual browser technology performs the card updates on the end user’s selected accounts and saves it on their behalf. The entire process of updating payment information online is carried out in seconds.
To learn more about Switch’s CardSavr API visit www.cardsavr.com.
About Switch, Inc.
Headquartered in Seattle, Switch creates one-of-a-kind cardholder experiences that inspire loyalty, leading to recaptured and increased card revenue. The company’s secure, proprietary and patent-pending automation technology gives cardholders the ability to manage and update all of their online accounts in one place. You can learn more about Switch at switchme.com or follow the company on Facebook and Twitter.