Evaluating your Core Processor’s Bundled Pricing Structure and Concessions for New Extensions

The key elements of this article apply to any core processor’s bundled pricing proposal and are especially critical for any bank that is receiving special offers on contract extensions for new concessions.

You may receive an offer for a lengthy extension from your core processor with what appears to be a very attractive structure and attention-getting concessions.  Core processors have a very strong focus on sales, and this makes it critical that the bank be diligent in understanding and evaluating the offer and its longer-term impact on the bank’s franchise value.  Here are some matters to consider.    

  1. “Bundled” pricing can have many benefits, but “Bundled” pricing is NOT “Flat” pricing. 
    a.  It is critical to thoroughly verify each service that is and is not included in the bundle.
    b.  What are the limits on the transaction and account volumes as well as asset size?
    c.  Only a proforma model with account, transaction and asset growth as well as price escalators   will reveal the true impact on your total costs and franchise value.
    d.  How does this new extension affect your opportunity for acquisition, sale or merger during the extended term? 
  2. When a sales force says you cannot use consultants for independent advice, that is a red flag even if you have no intention of using a consultant.  (They will say it is an unnecessary delay, but it should make you wonder.)
  3. Why the hurry?  Is the processor giving you adequate time to conduct a thorough and diligent process of evaluating both the benefits and potential unknown surprises?
  4. Will you lose any important favorable terms you carefully negotiated into your current agreement?
  5. Before extending terms, seek confirmation of their current commitment to open API’s for the growing sources of improved technology.

While these special offers and new pricing structures have some excellent benefits, you will not want to enter into these expensive, complex and long-term agreements without a thorough and diligent process of evaluation.  As we like to say, are you managing your vendors, or are they managing you?

Kelly Karns is the CEO of Karns Profit Improvement®, specializing in vendor management and contract negotiations.  He has served on the faculty of SWGSB and GSB-CO’s EDI program.  Additional articles can be found at Karnsprofitimprovement.com


Main Street, Inc. Successfully Completes

System & Organization Controls (SOC) 2 –Type 2 Assurance Engagement

Assurance Provided by Insyte CPAs, LLC

Birmingham, AL- September 18, 2019 – Main Street, Inc., a data-driven analytics and print solutions provider, today announced the successful completion of a System & Organization Controls (SOC) examination. This achievement showcases the suitability of the design and operating effectiveness of its controls relevant to security and confidentiality of Main Street’s Printing and Mailing systems utilized to process users’ data and the confidentiality of the information processed by these systems. The controls provide reasonable assurance that Main Street’s service commitments and system requirements were achieved based on the trust services criteria. The engagement was performed by an independent certified public accounting firm, Insyte CPAs, LLC, based on the Standards for Attestation Engagement, as defined by the American Institute of Certified Public Accountants (AICPA).

Ted Walton, President of Main Street, Inc. said, “Information security is top of mind for our business partners as well as the consumers they serve. This SOC achievement is a testament to the priority Main Street places on safeguarding data and the systems that house it. Our commitment to security is constant and we will continue to make investments to ensure the integrity of our systems.”

For additional information, visit www.mainstreetinc.com.

About Main Street, Inc.

Main Street partners with over 2,100 community-oriented financial institutions to provide data-driven solutions. Our affordable, effective check program designed to meet the needs of financial institutions like yours is easy to manage and leaves out the hidden fees you’ll find in other programs. But we don’t stop there. Our TargetSmart data-driven marketing program offers tools to help you win in today’s market with our simple, 3-step process for gaining account holder insights, reaching potential account holders with marketing programs, and measuring the effectiveness of your efforts to give you growth power you never thought possible.


Samantha Vance

Main Street, Inc.






BOULDER, COLO. – The Graduate School of Banking at Colorado (GSBC) recently elected Barry Anderson, president and chief operations officer of F&M Bank in Edmond, OK, to its Board of Trustees.
Anderson began his banking career as a teller for American Heritage Bank in El Rino, OK, before heading to pursue a degree at Oklahoma State University. Additional educational programs Anderson has completed include the Oklahoma Bankers Association (OBA) Basic, Operations and Intermediate Schools of Banking, the Oklahoma City University Graduate School of Community Banking and the University of South Carolina Graduate School of Bank Investments & Financial Management. He graduated from GSBC in 2007.
Anderson is active in his state bankers associations; he serves on the board of the Community Bankers Association of Oklahoma (CBAO) and has previously served on several CBAO and OBA committees. On the local level, Anderson is a current member and former chairman of the board of trustees for First Christian Church of Guthrie as well as a board member of the Logan County Economic Development Council.
Barry and his wife Wendy share two children, Katie and Bryce. Anderson succeeds Troy Appling, executive vice president of The Bankers Bank in Oklahoma City, OK, as an Oklahoma representative on the GSBC Board of Trustees.


BOULDER, COLO. — The Graduate School of Banking at Colorado is proud to honor 17 Oklahoma financial professionals for their graduation from its 25-month program:
The graduates pictured (L to R) include:
Front Row:
• Luis A. Aita, First Bethany Bank & Trust, Bethany
• Rocky D. Williams, Arvest Bank, Norman
• April R. Malone, Oklahoma State Banking Department, Oklahoma City
• Amy S. Ott, Federal Deposit Insurance Corporation, Oklahoma City
• Shandy Belford, Arvest Bank, Edmond
• Elizabeth J. Williams, Federal Reserve Bank of Kansas City, Oklahoma City
Middle Row:
• Jed C. Waggoner, F&M Bank, Guthrie
• Holly R. Bunt, Great Plains Bank, Enid
• Jason L. Redd, First National Bank & Trust of Elk City, Elk City
Back Row:
• Ryan L. Cross, Arvest Bank, Moore
• Michael A. Levine, First Liberty Bank, Oklahoma City
• Morris R. Wilson,, Oklahoma State Banking Department, Oklahoma City
• Jonathan M. Ackley, All America Bank, Lawton
• Jason D. Seifried, High Plains Bank, Okeene
• Travis L. Koch, Kirkpatrick Bank, Edmond
• Michael S. Stone, First Oklahoma Bank, Jenks
• Rusty T. Bracken, Farmers State Bank, Quinton
Graduates receive a diploma upon successfully completing six weeks of classroom training–two weeks for three consecutive years–which focus on general management and technology, leadership and human resource management, financial management and lending. The students also completed intersession projects and ended their curriculum at GSBC with an extensive bank management simulation course.
GSBC awarded 156 total graduates from across the nation with its prestigious diploma in banking July 25 during a ceremony at the University of Colorado in Boulder, Colo.


The Graduate School of Banking at Colorado is America’s Premier Community Banking School, boasting more than 8,000 alumni since its inception in 1950, and educating approximately 600 bankers and regulatory professionals from around the nation annually. GSBC prides itself on its commitment to providing unmatched higher education to America’s community bankers. To learn more about GSBC’s lineup of comprehensive educational programs, visit www.GSBColorado.org.

Smooth Your CECL Adoption – Register Now

CECL’s Impact on ICFR

Join us for a webinar covering an important aspect of CECL adoption: designing and implementing effective internal controls. Our diligent, disciplined pros can provide insightful solutions to help you stay a cut above the competition.
Wednesday, July 31 • 2–3 p.m. Central time CPE Credits: 1


Advantage Health Plans Trust is excited to announce the promotion of Melissa Nance to Chief Brand Officer.

Click here for full press release.

Advantage Health Plans Trust Welcomes Troy Stillwagon as Chief Information Officer.

Click here for full press release.

The State of Cybersecurity in the Financial Institution Industry (2019) – Conetrix

Learn about Top Cybersecurity Trends
among Financial Institutions

A panel of CoNetrix security and compliance experts analyzed survey data from over 240 cybersecurity professionals to understand how financial institutions are managing cybersecurity. The results are fascinating.


Infographic – Budgeting Association

Free Market Medical Association (FMMA) – Annual Conference (April 11-13)

Implementing ICFR for the CECL Standard

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