FIS and Kipp partner to tackle card declines
FIS (NYSE: FIS), a global leader in financial technology, today announced a strategic partnership with Letskipp Ltd. (Kipp), a collaboration platform for card issuers and merchants, to introduce an innovative non-sufficient funds (NSF) authorization solution to its debit clients.
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This first-to-market offer is designed to combat the long-standing challenge of declined transactions due to insufficient funds, which can help issuers recover lost revenue and drive top-of-wallet status with customers. With this solution, FIS is unlocking growth for its card issuing clients by helping to streamline financial operations, reduce friction and improve efficiency.
Industry data shows that the leading cause of card declines is insufficient funds, causing revenue loss, customer frustration and higher contact center costs. For merchants, these declines result in lost sales and wasted product and time. For issuers, declined transactions bring unpredictability at the point of sale for customers, increasing consumer frustration and impacting loyalty.
The solution offers issuers the ability to approve transactions even when the available balance is insufficient – without imposing overdraft fees on consumers – by enabling merchants to voluntarily pay a premium to authorize NSF transactions. This reimagined economic model can generate additional revenue for issuers while helping to preserve the customer experience at the point of sale. Through this partnership, issuers can quickly take advantage of this interconnected solution, helping money move dynamically through debit accounts, card networks and payment systems.
'As money moves between merchants, companies, and financial institutions and card issuers, every transfer should be timely and seamless. This partnership underscores FIS' commitment to helping our clients unlock new revenue streams and deliver smooth payment experiences,' said Jim Johnson, co-president, Banking Solutions, at FIS. 'Our NSF authorization solution with Kipp tackles a key point of friction in the payments journey, helping issuers retain customers and drive long-term value throughout the money lifecycle.'
"We're excited to join forces with FIS to bring our innovative NSF solution to a broader market," said Chanan Lavi, CEO and co-founder of Kipp. 'By reducing declines, we're helping merchants and issuers to deepen customer relationships, protect transaction volume and grow revenue, without burdening consumers.'
This solution reinforces FIS' accomplishments in helping deliver efficient, end-to-end experiences for businesses to bring the world's money into harmony.
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