The Payment Pulse: Why Card Acceptance Is Critical for Credit Unions and Banks

In today’s fast-paced financial landscape, convenience is king – and nowhere is that more evident than in how borrowers repay debts and how new customers fund accounts. For credit unions and banks, embracing card acceptance as a core payment strategy isn’t just smart – it’s essential.

The Convenience Imperative: Meeting Modern Expectations

Today’s borrowers and account holders expect frictionless, mobile-friendly experiences. Whether they’re repaying a loan or opening a new account, they want options that are:

• Instant
• Secure
• Familiar

Card payments – especially those using stored cards or Apple Pay – check all these boxes. By enabling card acceptance, financial institutions can:

• Reduce friction in the payment journey
• Increase completion rates for debt repayment
• Boost satisfaction for new account holders
• Drive loyalty through seamless digital experiences

Debt Repayment: Why Cards Win

When it comes to collecting payments from borrowers, card acceptance offers clear advantages over traditional methods:

Card payments allow institutions to authorize funds instantly, reducing the risk of failed payments. This is especially critical for past due loans in collection as requires reaching again to the borrowers delaying collection of the funds and reducing success rate as well as results in additional interest to the borrowers.

Account Funding: First Impressions Matter

When a new customer opens an account, the funding experience sets the tone. A clunky process can sour the relationship before it begins.

Card acceptance enables:

• Instant account funding
• Mobile-first onboarding
• Stored card convenience for future transactions

This not only improves conversion rates but also enhances the overall digital onboarding experience, which is increasingly critical in competitive markets.

Best Practices: Choosing the Right Card Payment Provider

Selecting the right card payment provider is a strategic decision that impacts everything from borrower satisfaction to regulatory compliance. Here’s what to look for:

Deep Integrations

• Collection platforms: Seamless compatibility with platforms like Temenos, Akuvo, MeridianLink
• Digital banking platforms: SSO integrations to reduce friction for members and customers using financial institution digital banking
• New account opening platforms: Ensure smooth onboarding and funding
• Core banking systems: Real-time postings as well as initiating payments within core systems
• Omnichannel support: Enable payments via web, mobile, call center, IVR

Strong Compliance Program

• Transaction monitoring: Reduce fraud losses
• PCI compliance support
• Convenience fees: Ensure the provider makes it easy and support compliance with all card brands requirements as well as state rules
• Transaction flagging: Accurately flag transactions as debt repayment or account funding transactions
• Regulatory safeguards: Minimize risk of network penalties or audit issues

Simple & Transparent Billing Model

• Avoid complex fee structures that obscure true costs and make it difficult to understand the bill
• Look for blended-rate pricing that’s easy to forecast and budget (one rate for all card brands and account types – personal or business)
• A straightforward billing model helps institutions:
  • Control costs
  • Simplify reconciliation
  • Avoid surprises

Flexibility & Scalability

• Support for stored cards, Apple Pay, and tokenized payments
• Real-time reporting and analytics
• Scalable infrastructure to handle seasonal or campaign-driven volume spikes

Ready to Elevate Your Payment Strategy?

In today’s digital-first world, card acceptance is a competitive advantage. SWIVEL helps financial institutions deliver fast, secure, and user-friendly payment experiences.

Explore how SWIVEL’s card solutions can help your institution reduce friction, boost conversions, and build lasting loyalty.