FIS Partners with Letskipp to Launch NSF Authorization Solution for Debit

FIS®, a global leader in financial technology, has partnered with Letskipp Ltd. (Kipp) to roll out an innovative non-sufficient funds (NSF) authorization solution for its debit card clients. This first-to-market offering addresses the widespread problem of declined transactions caused by insufficient funds, enabling issuers to recover lost revenue while enhancing customer experience.

1. Tackling Declined Transactions Due to Insufficient Funds

• Insufficient funds are the leading cause of card declines, resulting in lost revenue, frustrated customers, and increased operational costs.
• Merchants face lost sales and wasted resources, while issuers contend with unpredictable transactions and reduced customer loyalty.

2. How the NSF Authorization Solution Works

• The solution allows issuers to approve transactions even when balances are insufficient, without charging consumers overdraft fees.
• Merchants can voluntarily pay a premium to authorize NSF transactions, creating a new revenue stream for issuers and reducing declines at checkout.

3. Benefits to Issuers, Merchants, and Consumers

• Issuers benefit from increased transaction approval rates and potential revenue gains.
• Merchants experience fewer declined sales and improved customer satisfaction.
• Consumers avoid overdraft fees and enjoy smoother payment experiences.

4. Strategic Partnership and Market Impact

• The collaboration leverages interconnected payment networks, debit accounts, and merchant systems to deliver real-time authorization solutions.
• FIS and Kipp aim to expand this solution’s reach, helping issuers optimize revenue and improve customer retention.

Leadership Commentary
Jim Johnson, Co-President of Banking Solutions at FIS, emphasized, “Our NSF authorization solution with Kipp tackles a key point of friction in the payments journey, helping issuers retain customers and drive long-term value.” Kipp CEO Chanan Lavi added, “Reducing declines helps merchants and issuers deepen customer relationships and grow revenue without burdening consumers.”

FIS’ partnership with Letskipp represents a significant innovation in the debit payments space, introducing a win-win solution that supports issuers, merchants, and consumers alike. By enabling authorized transactions despite insufficient funds—without overdraft penalties—this approach could reshape how debit payments are processed, driving growth and improving the overall payments experience.