Credit Card Networks
When I introduce the Lucrotec bill paying innovation to CFO’s without fail they ask, “how does this work?” “How do you produce cash rebates from our payables?”
In concept how we help schools and organizations is similar to the cash reward system we take for granted with credit cards. People assume that the merchant fees pay for the credit card rewards. But, merchant fees are more footnote than lead story in the cash rebate universe.
National Banks work systematically “behind the curtain” to facilitate timely payments and specific payment methodologies. Credit card networks do this internationally and specialize in making it easy for people to purchase. It makes sense that they would likewise want to make it attractive for people [and your organization] to pay. Banks have been doing this for years, but only for organizations that spend more than 25 million on non payroll payables. Lucrotec works with schools and organizations with more modest payables and with dramatically better results than traditional banks.
There are four major credit card networks. American Express, Discover, MasterCard, and Visa. These networks control where credit cards can be accepted and facilitate purchasing and payment transactions. Think of these networks as a financial super highway. To participate fully a school or organization must have two things. First, complete access to the highway. Second, the tools and knowledge to operate expertly on the highway. The rebates come from aligning proper enrollment with the vendors bank and use of the ideal payment method or protocal. Lucrotc does both for you. Proper enrollment and payment is the lead story in the Cash rebate universe.
GREAT NEWS – Lucrotec built its own financial network enabling the ability to administer and transport payments that produce refunds and rebates through card networks including VISA, MasterCard, and American Express. Our proprietary algorithms and systems work tirelessly to enroll vendors and maximize rebates for our customers.
Take a look
Brendan Harkness with Credit Card Insider writes a solid introduction on credit card issuers and networks. I especially like his ground floor perspective on a rapidly expanding and evolving industry.