Why Fees Shouldn’t Be Overlooked, And How Highnote Helps Implement Them Strategically

Feb 16, 2024
Highnote Team

Today, it's practically a given that most cards tout themselves as "no-fee." It's so common that one might question why any card program would still impose fees at all. But dismissing fees outright when building your card program might be premature. When applied strategically, fees can ensure the sustainability and competitiveness of your card program. Highnote – designed to accommodate as many use cases and card program types as possible – simplifies integrating and simulating fees into your program. Let's dive into which scenarios benefit most from fees and how to seamlessly implement them using Highnote's platform.

Which Activities Benefit From Fees?

While it may seem counterintuitive, fees can actually enhance the functionality and user experience of a card program, particularly in two key areas: managing costly activities and enabling tailored rewards.

By costly activities, we mean any activities that may occur over the course of a card program, such as an out-of-network ATM fee or expedited card shipping, that can incur significant business costs. Fees act as a safeguard, and offsetting these expenses can guarantee that your program will still maintain a profit and not operate at a loss.

Targeted rewards, on the other hand, cater to specific customer subsets seeking premium experiences. For instance, consider annual membership fees for access to airline lounges or monthly fees for discounted fitness brand offerings. In such cases, offering fee-free cards might not be economically feasible, but customers recognize the value exchange and are willing to pay for superior experiences.

How to Implement Fees

Setting up fees on the Highnote platform is easy. The first step is to talk to your Highnote customer success manager about the fees you want to add. Next, they can help you solution for the best fees for your given use case. Then, they will work with our internal teams to get proper, updated cardholder documentation for all fees and ensure that our compliance team and the bank review and approve anything that requires updates. Finally, our team will help you understand how to integrate the fees into your customer experience in a way that is compliant.

How is Highnote a Strategic Partner for Fee Implementation?

  • Customization: Highnote allows businesses to tailor fees according to their unique program objectives and customer demographics. Whether it's an annual fee for premium benefits or transaction fees to cover the cost of specific activities, Highnote provides the flexibility to customize fee structures to suit your needs. For instance, you can provide the first two events free before you start to charge, or you can charge a percentage and a per-event fee.

  • Compliance: Highnote’s compliance experts work alongside customers to institute fees while maintaining full compliance with related laws and bank requirements. Highnote supports you in providing all the required information for disclosures and their proper display.

  • Seamless Integration: With a flexible API integration and intuitive user interfaces to view the data in a dashboard, Highnote simplifies the implementation process, allowing businesses to focus on delivering value to customers. Additionally, unlike other platforms, Highnote empowers customers to simulate the impacts of the integration, meaning each configuration can be perfected ahead of launch.

Unlocking the Full Potential of Your Card Program With Highnote

The best card programs we’ve worked with at Highnote aren’t those that simply compete on cost alone but instead know when to strategically introduce costs that create the best overall experience for the user and the greatest sustainability and functionality of their program. With customizable fee structures, robust compliance measures, and seamless integration, Highnote is ready to work with you to set new standards in delivering an exceptional experience for your cardholders. If you’re curious about implementing fees within your own card program, reach out to us today to discover how we can work together to build a strong, sustainable card program for you that delights customers while unlocking revenue.

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