FAQs
FAQs
Below are a list of questions we are frequently asked by clients:
How much will it cost to launch my own card programme?
It will depend on the way you construct the product, so whether you take an existing solution and white label elements or if you choose to build from scratch. A white label option will cost about £125,000 over three years - depending on volumes. A bespoke solution will cost about £350,000 over three years, again dependent on volumes. EB Consulting offer a comprehensive cost model so you can work out exactly how much your deal will cost you over three years, this ensures you move forward with a full view of your liability. Contact us for further information.
Will I need my own EMI Licence?
No not necessarily. Typically you will be working under the Issuers EMI licence. In some instances you may want to go for your EMI licence, but it is not mandatory.
Should I become a Scheme member?
Again this is not a requirement to take a card programme to market, as you will be working with an Issuer that already has scheme membership. Typically companies choose to become scheme members once they have gained significant scale and decide to take the Issuing piece in house.
Do I need my own BIN?
If you are white labelling a product or using an existing product, the BIN typically belongs to the company you are contracting with and they will have multiple programmes on one BIN. This makes it very difficult for you to move away from that supplier, so you may want to think of asking for your own BIN. This is a small cost but means if you wish to move away or manage more of the programme yourself as the product grows, you can.
How long will it take to get a product to market?
It can be done in 4 months, but typically it takes 6. It is always worth looking at hiring a professional to make sure the project runs on time, because the longer your in projects, the longer it will be to start earning that important revenue. Remember, if your delayed it makes no difference to your suppliers and you will be expected to start paying, even if you are not live.
Should I hire a project manager?
If you have no experience or no one in your team has experience in running a payments product or putting together a payments product - then yes you should get help. This can come in the form of the programme manager you are buying services from running the programme for you, or hiring a project manager, or hiring someone like EB Consulting to run the process and keep everyone to their deadlines. You need to weight up the cost of a full time member of staff for six months, versus using a consultant to ensure you hit key deadlines.
How do I make money?
Payments sadly are not free. Your product needs a clear margin to cover the ongoing costs of processing the payments occurring on your product by your customers. Just loading money onto your product, costs money. The typical revenue streams are from FX, fee's, and wrap around services.
I have quotes from suppliers, but they all vary - how do I work out how much this is actually going to cost me?
When you get quotes from potential suppliers you will usually have a set up fee and costs associated to actions. For every movement there is typically a cost and it can be difficult to work out what your actual ongoing costs are going to be. For example you may think your getting a great deal because the set up is really low, but you may have higher transaction fee's which actually make the offer more expensive. EB Consulting have created excel models that enable you to compare suppliers, and get a clear understanding of where your break even point is - so you can see what your risk and potential reward will be. Contact us for further information.
Do I need to hire a compliance officer?
Not in the first instance. When launching a programme you will need compliance practices in place and key documentation such as terms and conditions and privacy policies, and you will have to ensure you cover any Issuer requirements. You may want to outsource the compliance and there are some very reputable organisations that will provide you with the compliance monitoring services you need either on an ongoing basis or as a one off for a specific project.