NSF (insufficient funds) declines cost issuers more than a single lost transaction. They erode customer trust, reduce interchange revenue, and increase the likelihood of future payment failures. In today’s competitive payments market, issuers need smarter ways to avoid declines and protect customer relationships.
Kipp’s infrastructure layer enables issuers to approve the right NSF transactions. To help quantify the upside, we built a straightforward ROI calculator.
How it works
Enter your annual NSF decline volume and select debit or credit. The calculator applies key assumptions that significantly influence the outcome:
- Save rate: The percentage of NSF declines that can be approved safely, based on Kipp’s comparable issuer and merchant data.
- Average premium rate: The typical amount merchants in the Kipp network pay issuers to offset risk.
- Merchant coverage: The portion of an issuer’s transactions from merchants already in Kipp’s network.
- Interchange rates: Average rates for the card type and region, applied to newly approved transactions.
- Loss rate: A small expected default rate
Example
An issuer with $625M in NSF declines annually that approves just over a third with Kipp could recover about $142M in volume. With Kipp’s merchant coverage, premium rates, and interchange earnings, that translates to roughly $9.5M in net annual value, driven by merchant premiums, extra interchange, increased card usage from maintaining top-of-wallet status, and lower support costs.
Bottom line: the right approvals turn lost revenue into real, measurable growth
→ Try the calculator with your own numbers: Kipp ROI Calculator.
Why it matters
Issuers in the Kipp network can turn NSF declines into approvals and generate new revenue without increasing risk. Partnering with Kipp brings issuers and merchants together to rethink how NSF declines are managed, turning them into wins for all.
For FIS card issuers, Kipp is already integrated, activation is quick and effortless. Contact us to get started.
See how much value is hidden in your NSF declines.
