Feb 2026

7 Proven Ways to Increase Interchange Revenue

Interchange revenue is one of the most important non-interest income streams for banks and credit unions — McKinsey reports it accounts for 49% of global transaction-related payments revenues. Here are seven strategies that are delivering measurable growth for card issuers.

1. Automate Card-on-File Placement

With US card spending hitting $10 trillion in 2025, the most direct way to increase interchange revenue is to increase the number of transactions on your cards. Every merchant site where your card is stored as the default payment method generates recurring card-on-file transactions automatically.

Strivve's platform automates this process, placing your card on 142+ merchant sites. Customers report 5–40X ROI. Use our ROI calculator to estimate the impact for your portfolio.

2. Accelerate Card Activation

Cards that are never activated generate zero interchange. Yet many issuers see activation rates well below 100%, especially for reissued cards. The fix: pair card issuance with immediate card-on-file placement.

When a cardholder receives a new card and immediately stores it on their go-to merchant sites, the first transaction happens days sooner. CardLinks Emboss makes this possible through QR codes on card carriers that launch instant placement flows.

3. Protect Reissuance Revenue

Annual card turnover runs 30–35%. Every reissued card risks breaking existing card-on-file relationships. If the cardholder doesn't update their stored credentials, a competitor's card takes the spot.

Automated card-on-file updates during reissuance events preserve interchange revenue that would otherwise be lost. This is one of the highest-ROI applications of card-on-file automation.

4. Target Dormant Cardholders

Every card portfolio has cardholders who carry the card but rarely use it. These dormant accounts represent untapped interchange potential. Targeted card-on-file marketing campaigns can re-engage these cardholders by making it easy to store the card on merchant sites they already use.

5. Optimize Credit vs. Debit Mix

Credit cards typically carry higher interchange rates than debit cards. Issuers that encourage credit card usage for recurring online purchases (subscriptions, streaming services, e-commerce) capture higher interchange per transaction. Card-on-file automation supports this by placing the credit card specifically on higher-value merchant sites.

6. Expand Merchant Coverage

Cardholders interact with dozens of online merchants, but most have their card stored on only a handful. Expanding coverage to more merchant sites — from streaming services to grocery delivery to ride-sharing — creates new interchange revenue streams without requiring the cardholder to change their behavior.

7. Leverage Seasonal Campaigns

Online spending surges during key retail events: Prime Day, Black Friday, Back to School, and holiday gifting season. Issuers that time their card-on-file campaigns ahead of these events capture incremental transaction volume at the highest-spend periods of the year.

Measuring Interchange Growth

Effective interchange optimization requires tracking:

• Card-on-file placements per cardholder
• Transaction volume lift per placement
• Interchange revenue per active card
• Revenue retention during reissuance cycles
• Campaign ROI by channel (email, SMS, digital banking, card carrier)

Strivve's platform provides real-time tracking of all these metrics. See the MSUFCU case study for an example of measurable interchange growth in practice.

Next Steps

Start with our ROI calculator to estimate the interchange revenue impact for your portfolio. Then explore the automation vs. manual comparison to understand the cost-benefit analysis.

For institution-specific strategies, see our solutions for credit unions and banks, or contact our team for a custom analysis.