- FIS partners with Kipp to launch a groundbreaking NSF authorization solution for debit issuers.
- The solution helps prevent card declines due to insufficient funds, enhancing payment efficiency.
- Merchants voluntarily pay a premium to authorize NSF transactions, boosting issuer revenue without consumer overdraft fees.
FIS (FIS, Financial), a leader in financial technology, has announced a strategic alliance with collaboration platform Letskipp Ltd. (Kipp) to roll out an innovative non-sufficient funds (NSF) authorization solution for debit issuers. This first-of-its-kind offering is tailored to mitigate the prevalent issue of card declines at the point of sale due to insufficient funds, providing a more reliable and efficient payment experience for consumers.
Through this partnership, FIS aims to streamline financial operations for its card issuing clients, thereby unlocking new revenue streams. In particular, the solution allows transactions to be approved even when funds are insufficient—without charging consumers overdraft fees—by enabling merchants to pay an extra premium for transaction authorization. This new economic model not only boosts issuer revenue but also enhances customer loyalty by reducing point-of-sale friction.
Industry data highlights that insufficient funds are a major reason for card declines, leading to lost sales and increased consumer frustration. The FIS-Kipp solution tackles this challenge head-on, offering issuers a competitive edge and helping maintain transaction volumes. The seamless integration of this tool supports the flow of money across debit accounts, card networks, and payment systems, reinforcing FIS’s commitment to smooth and efficient payment experiences.
"Our collaboration with Kipp introduces an unprecedented way to address a key friction point in payments, providing long-term value for issuers and consumers alike," said Jim Johnson, co-president of Banking Solutions at FIS. Kipp's CEO and co-founder, Chanan Lavi, added, "This partnership allows merchants and issuers to cultivate better customer relationships and enhance revenue without placing additional burdens on consumers."
Headquartered in Jacksonville, Florida, FIS continues to be at the forefront of financial technology, as evidenced by this innovative offering designed to unify and streamline the payment landscape.
