Card issuers
Maximize revenue Safely authorize more transactions
Turn a card decline into a revenue opportunity
Generate a new revenue stream
Safely approve card transactions, using a predefined setup that allows merchants to pay a premium to an issuer
Approve over-the-limit/overdraft transactions
Earn more with merchant-paid premiums, offsetting the expected revenue losses from regulatory changes
Stay top-of-wallet
The increased authorization rate allows cardholders to make the purchases they want, driving customer loyalty
Meet your authorization rate KPIs with card networks
Reduce card declines and keep the card networks happy
Use cases
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Kipp's solution is compliant with all key financial regulation
How do EFTA and Regulation E apply to consumers who have not opted into an overdraft service with their bank, if their bank uses Kipp’s solution?
For consumers not opted into overdraft services, Regulation E generally prohibits their bank from charging overdraft fees for paying debit card transactions when the consumer has insufficient or unavailable funds in the account. With Kipp’s model, issuers can still authorize transactions without relying on any fees or charges to the consumer, ensuring that non-opted-in consumers remain free of extra fees and charges, thus complying with Regulation E.
*Applies to debit card transactions and other types of financial transfers.
How do EFTA and Regulation E apply to consumers who have opted into overdraft services with their bank, if their bank uses Kipp’s solution?
For consumers who have opted into overdraft services, Regulation E permits banks to authorize overdraft transactions for a fee provided that the consumer was given notice describing the overdraft service, including to ensure fees are transparent. With Kipp’s model, issuers have greater flexibility and can choose to approve additional transactions without imposing additional fees on the consumer; instead, they can look to a payment from Kipp.
*Applies to debit card transactions and other types of financial transfers.
Does Kipp’s model comply with the Durbin Amendment?
The Durbin Amendment imposes a cap on interchange fees, which have a precise definition under the statute. Interchange fees are fees that are established or charged by a payment card network and paid by a merchant or an acquirer for the purpose of compensating large issuers for their involvement in debit card transactions. Kipp’s solution operates outside of this framework because amounts paid to the issuer are not set by any card network and are not paid to the issuer by a merchant or an acquirer. Rather, Kipp is paying the issuers on its own behalf pursuant to its contractual obligations to those issuers. Likewise, Kipp is receiving payment from the merchants for its invoices, as the ultimate beneficiary.
* Applies to debit card transactions and other types of financial transfers.
How does Kipp’s solution ensure compliance with fair lending laws?
Kipp’s model supports fair lending compliance by empowering issuers to configure flexible, risk-based policies for transaction authorization, subject to their own credit risk controls. Our platform allows issuers to set rules that determine transaction approvals based solely on financial risk, ensuring that decisions are made impartially and fairly
*Applies to credit products.
Does Kipp comply with Consumer Consent and Data Privacy laws?
Yes, Kipp is fully compliant with Consumer Consent and Data Privacy laws. To support our solution in preventing NSF (Non-Sufficient Funds) declines, Kipp does not collect or process any personal data (PII). Our platform is designed to function solely with non-identifiable financial risk data, ensuring that no personal information about the consumer is accessed or stored. We adhere to rigorous privacy standards and regulations such as GDPR and CCPA, maintaining transparency about data use and implementing advanced security measures to protect any non-PII data processed. This approach ensures compliance while prioritizing consumer privacy and security.
*Consumer Consent and Data Privacy laws apply to both credit and debit transactions.
