The dos and don’ts of implementing a card product: Simplifying the complexity for success

In today’s competitive landscape, implementing a card product can be a powerful addition for businesses looking to enhance customer loyalty, streamline expenses, or broaden their financial offerings. Yet, for many, the journey from concept to execution can be more daunting than anticipated. Designing and launching a debit or credit card product requires navigating a complex web of stakeholders and intricate processes.

The seemingly simple act of making a card payment hides an elaborate chain of entities behind it, each playing a unique role. For business leaders embarking on this journey, understanding this chain, as well as the critical dos and don’ts of card implementation, can spell the difference between a seamless rollout and prolonged delays.

Getting started: Laying the foundation

The first question to ask isn’t about design or the physical card but rather the larger infrastructure. Many businesses dive into card production without recognising that creating a card means coordinating with an issuer, payment network, acquirer, and, often, multiple service providers. Mastercard and Visa, for instance, are often mistakenly assumed to be card issuers, but in reality, they’re payment networks connecting the ecosystem rather than issuing cards. However, they can be invaluable guides, providing direction to potential suppliers and helping to clarify each player’s role. So, do seek advice from Visa and Mastercard early on. They’re impartial and can provide lists of potential suppliers. However, as you start planning, it’s essential to go deeper, understanding not just who’s who but also who you’ll need to engage with first. Coordinating these entities can be challenging, so knowing who does what from the beginning is essential.

Reducing complexity: Streamline partnerships

Launching a card product requires collaboration with multiple parties. From the card issuer, payment processor, and scheme to the anti-fraud and KYC providers, each partner has its own preferences, fees, and requirements. A common misstep is to involve too many third parties, assuming it will bring greater control. Avoid this trap. In reality, each additional partner adds layers of management and coordination, increasing both time and cost. Instead, consider working with a single provider that can manage multiple elements of the card program. Not all “single point of contact” providers are alike—some manage everything in-house, while others merely coordinate external services. Choose a provider with in-house capabilities across issuing, processing, program management, and more when possible. This will give you one point of contact and streamline decision-making.

Know your purpose: Clarity first

For a card product to thrive, clarity of purpose is critical. Before reaching out to suppliers, spend time defining the exact role your card product will play. Do clarify your card’s purpose and intended user benefits. Is it a loyalty card, a student card, or a corporate expense card? Different use cases require different security, regulatory, and technological configurations. For example, a gift card has unique restrictions that a corporate expense card wouldn’t, and each requires specific anti-fraud measures and chip programming.

Understanding the economics

A robust card product rests on a sustainable economic foundation. Understand the overall costs and push for clear pricing structures that reduce surprises. Be wary of hidden fees, especially those related to interchange or compliance. Interchange fees, for instance, can fluctuate and are rarely straightforward. Budget for these uncertainties from the start, and whenever possible, work with providers who offer transparent, predictable costs rather than unpredictable, usage-based fees.

A well-defined pricing model is essential for making informed business decisions about product structuring. Some businesses offset costs with a monthly fee, while others integrate the card into a larger offering. Understanding your costs upfront allows for accurate forecasting and helps in selecting the right revenue model.

Choosing your team: Look beyond sales promises

Once you’ve identified key players, ensure you know exactly who will manage your project. Do meet the actual team who will support you post-sale. While sales teams are skilled at pitching, they’re often not the ones who’ll deliver the product. When possible, opt for providers that maintain continuity between sales and operations teams to ensure alignment and accountability. Also, clarify support structures. How available is the team? Will they respond promptly to issues? What about making changes—can you self-serve for basic modifications, or are all changes locked behind time-consuming procedures? Ideally, changes like fee updates or feature tweaks should be smooth and affordable, so ask providers about their processes to avoid excessive costs down the line.

Avoid unnecessary features

A fundamental product development rule is simplicity, which is particularly true for card products. Adding unnecessary features drives up costs, delays launch, and often complicates both customer usage and operational management. Don’t go overboard with features initially. Focus on the essentials first and grow from there.

Overloading your product with features is like adding countless buttons to a device when users really only need the on/off switch. Complex products are harder to manage, costlier, and harder for end-users to understand. Launching with a straightforward, effective card product allows you to establish market fit and refine your offering based on user feedback. Additional features can always be added later.

Mobile app considerations: Start with the basics

An app is essential in today’s digital-first world, but as with the card itself, avoid overcomplicating it. Many businesses go all-in on custom apps with every conceivable feature, only to be bogged down by development delays and technical issues. If available, start with a simple app or an existing solution from your provider. Begin with the essentials, gauge customer response, and then build out further if necessary.

Conduct thorough market research

Testing similar products can offer valuable insights. Research other card products on the market to see what resonates with users and what doesn’t. Check app stores, read customer reviews, and get a feel for how competitors’ features align with your goals. Observing what’s successful elsewhere can shape your vision and potentially save you from investing in features that users may not actually value.

Summing up: Three key dos and a don’t

Implementing a card product can be a highly rewarding, but it requires a careful, structured approach. Keep these principles in mind:

1. Do define your product’s purpose and audience — get crystal clear on the product’s goals and benefits.
2. Do focus on budget clarity and sustainability — understand and anticipate costs from the outset.
3. Select the right business model for your context. Make sure your revenue strategy aligns with your costs and business goals.
4. Don’t overcomplicate your product — start with the essentials, refine as needed, and scale when ready.

By following these dos and don’ts, businesses can streamline their path to launching a successful card product that meets customer needs, supports business goals, and remains manageable over time.

This is an abridged version of a more in-depth analysis. You can read the full article here.