Payment Economics

Optimize Costs, Maximize Margins in Payments

OVERVIEW


CRG enables issuers, acquirers, ISOs and payment facilitators to optimize card payment cost structures, improve profitability, and enhance fee transparency. We leverage deep expertise in interchange, network compliance, and cost recovery to identify and capture substantial savings.

For a deeper dive into Network Fees, download our How-to guide on Non-Interchange Pass-Through Fees (NIPTF) here.

CHALLENGES WE ADDRESS


Rising Costs & Complexity

Network fees and interchange rates are increasing, with more frequent, often opaque updates, making cost management more challenging.

Inefficient Cost Structures

Poor alignment between fee structures, business models, and pricing strategies leads to unnecessary expenses.

Pass-Through & Reconciliation Issues

Incomplete or inaccurate fee pass-through and reconciliation can erode profitability and create compliance risks.

OUR CAPABILITIES


01 Fee Audit & Cost Recovery
Thorough analysis of invoices and transaction data to identify overcharges, challenge unnecessary fees, and secure savings.
02 Interchange Optimization
Align interchange, Non-Interchange Pass-Through Fees (NIPTFs), and processing fees with business goals to maximize efficiency & cost reduction.
03 Cost Allocation & Pricing
Structured approach to allocate payment costs effectively, ensuring fair distribution across business units while optimizing pricing strategies.
04 Card Network Negotiation
Analyze net costs of operating with networks to optimize issuance strategy, manage RFPs, and benchmark offers.
05 Ongoing Monitoring
Provide tools and frameworks (including CardTraq) for continuous tracking, reconciliation, and optimization, including compliance.

OUR EXPERIENCE


Industry-leading expertise in interchange, network fees & cost optimization.

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Track record of recovering millions in unnecessary fees for clients.

Deep, direct experience with Visa, Mastercard, and acquiring banks.

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Project Spotlight

PE-Owned Prepaid Issuer

Private Equity-owned issuer of Mastercard prepaid cards across US, Australia, UK, and Republic of Ireland.

RESULTS

$4 million/year (↓18%)

(total potential recurring cost savings)

27 anomalous/erroneous billing events

209 cost saving opportunities

Leading US & European Multi-Product Issuer

A NASDAQ-listed global payments company with card issuing businesses across multiple continents

RESULTS

$1.5 million/year (↓12%)

(total potential recurring cost savings)

8 anomalous/erroneous billing events

24 cost saving opportunities

European Unicorn Fintech Virtual Travel Card Issuer

A European issuer of commercial cards across multiple geographies

RESULTS

$1.1 million (↓22%)

(total potential recurring cost savings)

19 anomalous/erroneous billing events

21 cost saving opportunities

For every $1bn in transaction volume, our clients save up to $1.25mn in network fees.

PAYMENT ECONOMICS PRACTICE LEADS


Subhash Khatri

Subhash is a former consumer payments leader at Amex, Citi, Chase, GreenDot and Fifth Third Bank. He has 25+ years’ experience leading some of the largest brands, with extensive experience in product P&L management, credit risk, and marketing analytics.

Steven Leitman

Steven is the founder of CRG, and a former Amex and Visa executive and Deloitte Strategy consultant, with a breadth of Payment and merchant experience, and he is the founding partner of CRG. While at Amex, he focused on driving exponential growth of their SMB card portfolio.

STRATEGIC PARTNERS


Adam Hozaifa

Adam is a partner in Pinnacle Payments Consulting, a strategic CRG partner, and brings 15+ years’ experience in payments strategy & commercial consulting, with extensive experience of scheme fees, interchange, issuer and acquirer P&L drivers, complex financial modelling, previously at Mastercard, Visa, KPMG, Deloitte.

Ian Coles

Ian is the Managing director of Pinnacle, and has 30+ years experience in credit and payments, with extensive knowledge of payment economics and P&L management, including multiple contract negotiations. Previously Santander UK, Mastercard, and HSBC.​