Understanding Visa’s Commercial Enhanced Data Program (CEDP)

Author

Dan Carter
Senior Director, Payments


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In an effort to improve the accuracy and integrity of Level 3 transaction data, Visa has launched the Commercial Enhanced Data Program (CEDP) – a major update that will have real implications for merchants who accept commercial card payments.

This guide outlines what the program entails, key deadlines, and how your business can prepare to maintain optimal interchange qualification and reduce potential cost increases.

What Is Visa’s CEDP?

As of April 12, 2025, Visa introduced a new compliance program targeting Level 3 data integrity. This program is designed to ensure that the enhanced transaction data submitted by merchants, such as line-item details, tax amounts, and purchase order numbers, is accurate and can be validated by Visa Commercial Solutions.

Merchants will be categorized into two groups:

  • Verified: Merchants whose Level 3 data is deemed accurate and validated.
  • Non-verified: Merchants with data discrepancies or integrity issues.

Only verified merchants will be eligible for Visa’s new Product 3 interchange program, which offers improved interchange rates based on enhanced data submission.

Key Dates and Deadlines

April 12, 2025: The Visa CEDP program goes live. From this point, merchants should start receiving data integrity notifications.

October 17, 2025: The new interchange rates take effect, and merchants must be verified by this date to qualify for the Product 3 rates.

April 17, 2026: Visa will phase out its legacy Level 2 interchange program for Commercial and Small Business cards, with the exception of the Fleet fuel-only Level 2 program.

If a merchant is flagged as non-verified, they will have until October 17 to resolve any issues. While Visa has not specified whether these classifications are permanent, it’s expected that reversing a non-verified status may be a lengthy and complex process.

How Do I Know If I’m Impacted by Visa’s CEDP?

If your business submits Level 3 enhanced data for commercial card transactions, your eligibility for optimized interchange rates under the CEDP will depend on the accuracy and consistency of that data. A review of your current data setup, such as through an interchange scorecard or audit, can help determine whether you’re aligned with Visa’s new standards.

Redbridge has experience in enhanced data validation and can assist in identifying potential issues or opportunities ahead of the October deadline.

What Should Merchants Do Now?

Here are key steps your business can take to stay ahead of Visa’s CEDP requirements:

  1. Verify your status: Contact your acquiring partner or payment processor to confirm whether you are classified as a verified or non-verified merchant.
  2. Monitor data integrity alerts: Make sure you have Visa data integrity alerts enabled, and that the right stakeholders in your organization are receiving and reviewing them.
  3. Assess your current processes: If you’re unsure about your compliance or want an objective review, Redbridge can provide guidance based on industry benchmarks and best practices.

The Impact of Visa’s CEDP

Visa’s Commercial Enhanced Data Program represents a significant change in how Level 3 data is reviewed and rewarded. For merchants, it introduces both risk and opportunity, particularly when it comes to qualifying for optimized interchange rates.

With the October deadline approaching, now is the time to evaluate your current data processes, confirm your verification status, and address any flagged issues.

If you need help understanding how CEDP might impact your business or want to explore where improvements can be made, Redbridge can support you with data validation expertise and analysis tools to guide the way.

To see what this looks like in practice, check out our recent case study on improving interchange efficiency with enhanced data.

 

Why Bank Fee Monitoring Is Essential for Treasury and Cash Management Optimization

Author

Lucie Kunesova
Associate Director

Author

Pauline Lion
Director


Bank fee analysis TN

The Hidden Cost of Overlooking Bank Fees

Navigating cash management fees is challenging, and many companies often overlook this area due to limited time, resources, or in-house expertise. However, ignoring these fees can be a costly mistake, as they can represent up to 1% of a company’s turnover.

Monitoring bank fees effectively is a powerful tool to better understand the scope of your cash management services, identify cost-saving opportunities, and improve your relationships with banking partners.

Bank Fee Monitoring Helps You Understand Cash Management Services

One of the often-overlooked benefits of bank fee monitoring is that it offers companies a clearer picture of the cash management services they are using. Regularly reviewing fee structures provides an excellent opportunity to re-evaluate account setups and identify unnecessary or overlapping services.

Companies using software like HawkeyeBSB, a bank fee monitoring platform developed by Redbridge, find that, on average, 10% of their accounts never record any transactions. Digitalization is a key enabler for better visibility into which services are actively used.

Another useful tool for interpreting cash management services is the use of AFP codes. These codes allow companies to better understand each line item on their bank fee statements and, more importantly, to compare fees across multiple banks. Although banks typically follow AFP standards, it’s important to note that definitions may vary slightly, so requesting clarification from your bank on key services can be very beneficial.

Reducing Cash Management Costs With Bank Fee Monitoring

The most immediate and obvious reason to monitor bank fees is to identify opportunities for cost reduction. Over time, banks may adjust their pricing due to changes in market conditions, regulations, or internal policies. Without active oversight, companies may end up paying significantly more than what was initially agreed upon.

Keeping a close eye on fee evolution helps companies identify discrepancies between current charges and historical data, revealing potential overcharges or rate increases.

A practical approach is to monitor fees over a six- to twelve-month period, analyzing both volume and rate fluctuations. This enables companies to quickly detect unexpected charges or pricing errors. For international organizations, bank fee analysis is particularly useful to ensure pricing consistency across regions in line with the group’s global banking terms.

When it’s time to negotiate, having this data allows companies to approach discussions from a position of strength. After renegotiation, continued monitoring is essential to ensure that new pricing is correctly implemented and that actual savings are tracked. In the long run, this discipline provides companies with a meaningful cost advantage that can be reinvested elsewhere.

How Bank Fee Monitoring Can Strengthen Banking Relationships

A lesser known but valuable benefit of bank fee tracking is the positive effect it can have on a company’s banking relationships. While some worry that raising fee concerns might strain those relationships, the opposite is often true when handled correctly.

By taking an informed and proactive approach to fee management, companies show banks that they are serious, knowledgeable clients who care about financial transparency and cash management efficiency.

Monitoring fees also opens the door for banks to propose additional cash management solutions that may align with the company’s needs. In this way, the process becomes a collaborative effort that can deepen the relationship.

For multinational corporations, bank fee visibility also helps identify which banks provide the most value in specific areas, guiding decisions on which institutions to expand relationships with or consider for new accounts. Companies that regularly review their fees are seen as responsible partners, which can lead to more strategic and mutually beneficial banking arrangements.

Bank Fee Monitoring Pays Off in Efficiency and Cost Savings

Monitoring cash management bank fees may seem like a small administrative task, but it plays a critical role in a company’s overall financial strategy. By regularly reviewing and understanding these charges, companies can:

  • Gain valuable insights into their cash management needs
  • Identify cost-saving opportunities through fee corrections
  • Build stronger, more strategic relationships with their banking partners

In today’s competitive and cost-conscious environment, bank fee monitoring is not just a best practice, it’s a strategic imperative for any treasury or finance team.

The Future of AI in Treasury

Author

Bridget Meyer
Senior Director


Bank fee analysis TN

TMANY Members Share AI Aspirations, Challenges, and Next Steps in Treasury

The Treasury Management Association of New York (TMANY) recently hosted an engaging luncheon roundtable to explore how treasury professionals are thinking about—and beginning to implement—AI in treasury operations. The event was led by Bridget Meyer, Senior Director at Redbridge Debt & Treasury Advisory, and Daniel Kalish, CEO of Nilus.

What Treasury Teams Want AI to Solve

The roundtable opened with participants identifying high-value use cases they hope AI in treasury can address. Unsurprisingly, improving cash forecasting topped the list, with members eager to incorporate leading market indicators and contrarian insights to strengthen financial planning. Others expressed a desire for one-page balance summaries to support executive visibility and better decision-making.

AI is also being looked to for customer service automation, faster integration of new finance systems, and real-time scenario analysis—especially in response to price or market shocks. Many envision AI as a virtual knowledge resource that can support internal teams and streamline day-to-day operations, including CRM updates, payment processing, and invoice generation.

Additional opportunities for AI in treasury include reconciling contract and invoice terms, aggregating data from disparate platforms, and managing communication overload—particularly through summarizing and prioritizing hundreds of daily emails.

What’s Already Being Tried With AI in Treasury

Several attendees shared how they’ve already begun experimenting with treasury AI tools in their organizations. These ranged from embedding Copilot into Microsoft Word to standardize SOP formatting, to using AI for vendor research, data cleansing, and generating automated trend reports.

Other current applications of AI in treasury include pulling key terms from loan agreements, building presentations for senior management, drafting performance reviews, and translating or summarizing dense webinar and reporting content. Teams are also using AI to help develop relationship scorecards for banks, refine client service strategies, and enhance internal communications by rewriting emails and converting notes into digestible summaries.

Barriers to Adoption

Despite the momentum, attendees noted several common obstacles to broader AI adoption in treasury. Chief among them were budget constraints, unclear ROI, and internal resistance to change—particularly fears around losing the human element or diminishing the value of critical thinking.

Data readiness also emerged as a significant hurdle, as unstructured or inconsistent data can limit the accuracy and effectiveness of AI tools. Participants raised valid concerns about data security, confidentiality, and regulatory compliance—especially when dealing with sensitive financial data.

On a tactical level, treasury teams are also navigating a crowded AI vendor landscape, limited time to evaluate tools, and a general lack of education around prompt engineering and implementation strategy. Larger enterprises often restrict AI experimentation, while smaller firms provide more flexibility—creating a divide between early adopters and those lagging behind.

Next Steps and the Future of AI in Treasury

Participants agreed that developing a formal AI policy is a top priority to define internal guardrails and ensure responsible use. Others committed to changing daily habits—like replacing Google with AI assistants—and promoting a growth mindset: AI is not a threat, but a powerful tool to be embraced.

Immediate next steps also included upskilling through prompt engineering courses, leaning on internal AI champions, and aligning with peers and vendors who are actively embracing AI in treasury. Some also plan to review third-party AI practices to ensure they align with internal standards.

As treasury teams continue exploring this fast-evolving space, one message rang clear: start small, stay informed, and don’t wait to engage.

A Note from Your Co-Author

As you’ve explored the cutting edge of AI in treasury, you might appreciate a little meta-insight: this article itself was generated by AI. Using iPhone Voice Recorder transcripts as a foundation and ChatGPT for refining the language, an AI assistant brought these insights to life with minimal human intervention. And yes, even the article’s thumbnail was created by AI. It’s a testament to the very tools we’re discussing—showing how AI can truly augment human efforts, making complex topics more accessible and engaging, right down to the visual elements. Just another powerful example of AI at work, helping us share valuable information.

Stablecoin Adoption and the Future of Payments

Author

Samuel Tong
Analyst, Payments


MasterCard & Stablecoin

Mastercard’s Innovations Are Accelerating Stablecoin Integration in Global Transactions

Stablecoins are digital currencies pegged directly to traditional fiat currencies, typically the US dollar. They have emerged as a viable option for financial institutions and businesses looking to simplify cross-border transactions.

Unlike traditional cryptocurrencies, stablecoins offer predictable value and reliability, crucial attributes for treasury teams managing global payments. Mastercard’s recent efforts highlight a shift toward mainstream stablecoin acceptance.

Here’s what corporate treasury professionals need to understand.

Key Terms to Know:

  • Stablecoin: A type of cryptocurrency whose value is directly tied to a stable fiat currency, such as the US dollar, providing price stability compared to traditional cryptocurrencies.
  • Blockchain: A secure, decentralized digital ledger technology that records transactions across multiple computers, ensuring transparency and security.
  • Crypto Credential: Mastercard’s innovative system that replaces complicated blockchain wallet addresses with easy-to-use usernames, streamlining transactions and reducing errors.
  • Merchant Settlement: The process by which funds from customer payments are transferred to the merchant’s account, often involving currency conversion in cross-border transactions.
  • Fiat Currency: Traditional government-issued currency (like USD, EUR, or GBP), whose value is backed by the issuing government rather than physical commodities.

Why Stablecoins Are Relevant for Treasury and Payments

Legacy cross-border payments often involve slow processing, high transaction fees, and limited transparency. Stablecoins utilize blockchain technology to deliver significant advantages:

  • Reduced volatility: Pegged to stable fiat currencies, stablecoins provide predictable value.
  • Instant settlements: Payments clear immediately, improving liquidity management and operational efficiency.
  • Cost savings: Lower fees compared to traditional payment methods such as wire transfers and correspondent banking.

It should be noted: stablecoins still face adoption challenges, including complex wallet systems, fragmented access points, and limited merchant acceptance. Mastercard aims to overcome these challenges with targeted solutions.

Stablecoin flow vs banking flow graphic

What’s Significant: Mastercard Takes a Strategic Approach to Stablecoin Integration

Mastercard is implementing several strategic initiatives designed to simplify stablecoin use and accelerate business adoption:

  1. Simplified Crypto Credentials
    Mastercard introduced the Crypto Credential solution, replacing complex wallet addresses with user-friendly usernames. This simplifies transactions, minimizes errors, enhances compliance checks, and streamlines stablecoin usage for businesses.
  2. Integration into Traditional Payment Networks
    Mastercard collaborates with crypto exchanges to enable stablecoins on traditional payment cards. This initiative lets cardholders spend stablecoins at over 150 million global merchant locations and convert stablecoins back to fiat currency seamlessly.
  3. Direct Merchant Settlement
    Through partnerships with stablecoin issuers like Circle (USDC) and Paxos, Mastercard provides merchants with direct settlement options in stablecoins. This capability reduces settlement complexities, offers immediate liquidity, and shortens payment cycles for businesses.

Collectively, these Mastercard initiatives address key obstacles to stablecoin adoption, helping businesses streamline their cross-border payment processes.

Implications for Treasury Teams

Corporate treasury and finance teams should proactively monitor developments in stablecoin technology and consider potential operational benefits. While mass adoption is not yet widespread, awareness and preparation can position treasury teams advantageously as stablecoin usage grows.

Actionable steps treasury professionals can take now include:

  • Assess Current Payment Processes: Identify inefficiencies in international payment workflows that stablecoins might resolve.
  • Stay Informed on Regulatory Changes: Regularly track regulations affecting digital currencies to maintain compliance and readiness.
  • Engage with Financial Providers: Communicate with banking partners and payment providers to remain updated on emerging stablecoin integrations.

Preparing for the Future

Mastercard’s investment in stablecoin solutions indicates a broader industry movement toward digital asset integration within established payment systems. While immediate adoption is limited, treasury teams should recognize the long-term potential of stablecoins. Remaining informed and prepared ensures companies are positioned strategically when stablecoins become a standard part of global payment infrastructure.

If your treasury or payments team has additional questions or would like to begin the process of analyzing, reviewing, and strategically adjusting your systems, please reach out to the Redbridge team.

BNPL Success: Key Factors, Regulations & Market Trends

Author

Gabriel Lucas
Director, Payments


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Gabriel Lucas, Director at Redbridge Debt and Treasury Advisory, elaborates on the factors determining BNPL’s success for merchants and the next steps in terms of regulations and consolidation. First appeared in Buy Now, Pay Later Report 2025 by Papers.

BNPL Has Seen Massive Adoption, but How Has the Landscape Evolved Recently? What Are the Key Trends Shaping the Sector Today

Many things have changed regarding Buy Now, Pay Later (BNPL) since we talked about it in 2022. BNPL has evolved from a disruptor to a mainstream payment option. Once driven by ecommerce fintechs, it now faces competition from banks and payment giants. Regulatory scrutiny is increasing, especially in the EU, the UK, and the US, with stricter consumer protections, recently exemplified by Dutch government efforts.

The focus has shifted from rapid growth to profitability. Rising funding costs and defaults are forcing BNPL players to refine risk models and raise prices – some doubling in less than a year. Partnerships are deepening, with BNPL embedded in checkouts, banking apps, and B2B financing (e.g., the partnership between Klarna and Adyen or J.P. Morgan, two of the main global processors). The market is also seeing a divergence between interest-free, short-term BNPL models and longer-term instalment plans with interest, which align more closely with traditional credit.

“Rising funding costs and defaults are forcing BNPL players to refine risk models and raise prices – some doubling in less than a year.”

Gabriel Lucas

Director, Payments

Beyond the Marketing Buzz, What Tangible Benefits Does BNPL Bring to Consumers and Merchants? How Does It Compare to Traditional Credit Options?

For consumers, BNPL offers more flexibility than credit cards. The ability to split payments interest-free (if paid on time) appeals to budget-conscious shoppers, especially younger ones wary of credit card debt. Its seamless checkout experience also makes it an attractive alternative to traditional financing. An aspect often neglected is that whenever there is an issue when paying with most BNPL solutions, customers may feel confused: most of the time, they are invited to contact the BNPL provider instead of the merchant that sold the products or services they paid for. For merchants, BNPL boosts conversion rates, order values, and customer acquisition – but results vary widely.

My advice: don’t assume what works for others will work for you, especially for enterprise merchants. Since BNPL providers assume credit risk, merchants get paid upfront, reducing financial exposure, which is valuable in sectors with high upfront costs. However, BNPL isn’t a one-size-fits-all solution. Unlike credit cards, it is limited to specific merchants and often lacks perks like chargeback protection or purchase insurance. Costs depend on late fees and interest for extended payments

BNPL Is Often Associated With Retail and Ecommerce, but Can It Be a Game-Changer in Other Industries? What Factors Determine Its Success for Different Merchants?

BNPL’s potential extends beyond retail, with strong use cases in travel, hospitality, and healthcare, where instalment payments make high-ticket purchases more accessible. Even B2B transactions are adopting BNPL-like financing to improve cash flow. Success depends on ticket size, payment behavior, and regulations. High-ticket, infrequent purchases (e.g., travel, medical) benefit more than everyday goods. Industries with predictable repayments and low default risk attract BNPL providers, while stricter lending rules may limit its applicability. Industries or merchants with tight margins often find BNPL solutions too costly and instead choose to pass fees to customers (a compliant approach, as surcharging currently doesn’t apply) or develop in-house alternatives. Some also turn to white-label providers, who offer a balanced solution by managing most of the IT workload and assuming the risk.

With Increasing Regulatory Scrutiny and Profitability Concerns, What Are the Biggest Hurdles BNPL Providers and Merchants Face Today? Can the Model Be Sustainable Long-Term?

Regulatory scrutiny is the biggest challenge. Governments and financial regulators are addressing concerns around consumer protection, particularly regarding transparency, affordability assessments, and credit reporting. BNPL providers are now being required to conduct stricter credit checks and disclose terms more clearly, which may slow adoption and increase operational costs.

“Embedded Finance will expand BNPL’s reach beyond traditional ecommerce checkouts, integrating it into banking apps and digital wallets.”

Gabriel Lucas

Director, Payments

Profitability remains another key issue. The original BNPL model, where providers generate revenue primarily from merchant fees, is under pressure due to rising funding costs. Many providers are exploring alternative revenue streams, including interest-bearing instalment loans, subscription-based models, and late payment fees. However, an overreliance on penalties could damage brand trust and lead to regulatory pushback. When it comes to sustainability, I believe it mostly depends on balancing growth with responsible lending. Providers that can develop robust risk models, diversify revenue streams, and operate within regulatory frameworks will be better positioned for long-term success. Merchants, on the other hand, need to evaluate BNPL partnerships carefully, ensuring they do not create unnecessary financial burdens for consumers while still benefiting from increased sales.

What’s Next for BNPL? Will We See Consolidation, Innovations, or a Decline in Adoption?

I would say that the BNPL market is likely to undergo significant consolidation. Larger financial institutions and payment players are acquiring or partnering with BNPL providers, and smaller, unprofitable fintechs may struggle to survive independently. Regulatory pressures will also force weaker players out of the market, leaving a handful of dominant providers. Innovation will continue to shape the space. AI-driven underwriting models will improve risk assessment, reducing default rates.

Embedded Finance will expand BNPL’s reach beyond traditional ecommerce checkouts, integrating it into banking apps and digital wallets. BNPL could also evolve into broader financial services, offering credit-building features and savings tools. Adoption may slow in regions with stricter regulations, but demand for flexible payment options will persist. As long as BNPL providers can adapt to changing market conditions and consumer preferences, the model will remain an important component of the payment ecosystem, albeit with a more responsible and sustainable framework.

What Is Agentic Commerce? Hype, Reality, and What It Means for Fintech

Author

Hugh Paterson
Managing Director, Payments


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Agentic Commerce is the latest buzz phrase in payments and fintech. Anyone working in finance, technology and commerce – or ancillary sectors – is likely to have noticed a surge in LinkedIn posts, news articles and vendor announcements that talk about Agentic Commerce over the past couple of months. It is absolutely everywhere.

It got me thinking:

  • Will Agentic Commerce be a monumental paradigm shift in the human experience as many people are purporting it to be, or simply an iteration on what we are already doing?
  • Will Agentic Commerce live up to the hype or be consigned to the dustbin of history like other buzz phrases such as Internet of Things, Metaverse and Blockchain?
  • Or will it have staying power, driven by real-world application?

What is Agentic Commerce?

‘Agentic’ is an awkward-sounding term. We should get comfortable with it, as the hype engine around AC is just getting started.

AC involves AI programs that help a buyer to complete their purchase. Agentic = AI agents and bots. Commerce = buying and selling things.

In AC, the theory goes that the buyer – an individual or a business – completes a purchase using an AI program or another tool – such as a search engine – that supports such functionality.

In future, common AI platforms such as ChatGPT, Gemini et al may support AC purchase experiences when shopping online, via integrations with our browsers and apps, on computers and mobile devices.

This could include product search, product display, checkout, payment and order confirmation steps. The AI program will dispatch a bot to complete the purchase while the buyer is present in the moment, or while the buyer is absent from the moment after having set-up the process to automate it.

Why Is Agentic Commerce Getting Such Attention Now?

Broadly, the huge uptick in discussion of this topic has been driven by AI products that have sprung up recently, such as OpenAI’s ChatGPT, Google’s Gemini, Microsoft’s Copilot and Anthropic’s Claude. To name but a few. The pace at which mass adoption of AI tools has occurred is dizzying.

AI is now in our homes, on our desks and on the agenda in boardrooms globally to an extent that was unimaginable just a few years ago.

Through the fog of marketing, gossip and hype, real-world practical applications of these technologies are beginning to crystallize.

Agentic Commerce is an example of a real-world use case with almost universal application: shopping.

What Impact Is Agentic Commerce Having on Payments and Fintech Companies?

Big players

We are already seeing the industry respond by announcing new AC products and adaptations to existing services.

Visa and Mastercard have recently announced their respective services which cater to the AC use case:

  • Visa Intelligent Commerce
  • Mastercard Agent Pay
  • American Express has invested in agentic commerce start-ups, including Nekuda

Smaller players

Start-up companies are piling on to this trend. They are coming into the market with AI and AC products that purport to solve for relevant uses cases. This rise of new entrants will soon reach saturation point. Many will fail. Some will merge. Larger players will buy the best and most promising of the smaller players.

Billions of dollars in PE and VC investment will change hands, much of it to never be seen again.

A few names will achieve ‘escape velocity’ and survive long enough to enter the popular consciousness as sub-brands and tools of larger organizations.

What Does Agentic Commerce Mean for Individuals and Businesses?

Many businesses and individuals working in the industry will brand themselves as Agentic Commerce experts. However, we are all at the starting line of this technology and learning about it as we go. So, let’s act with proportionate caution and be kind to ourselves as our understanding evolves.

I could not claim to be an expert in Agentic Commerce or AI, but I’ve been in the world of payments and fintech long enough to be able to form instinctive reactions about such topics. Here are some of my hypotheses with regard to AC:

  • Human behavior around shopping is deeply entrenched. Many people enjoy shopping, and for some it is a big part of their lives. This is not going to change because of AI-powered shopping assistants.
  • More likely is that we will continue to split our shopping and purchasing behavior between a variety of channels and tools. Increasingly, AC will form a certain percentage of that activity. But not replace it wholly. The future of e-commerce is more options, fewer concentrations.
  • We will continue to browse apps, websites and marketplaces and search for products in the same way we do today – because we want to make more careful decisions about what we buy or want to enjoy the experience of shopping. Sometimes we will choose to use an AC tool to make the process a bit quicker and more efficient. Perhaps we may care a bit less about the outcome and want to speed things-up a bit or wish to have a more curated set of options to review.
  • Gradually, people will start to use AI programs and AC tools to help them make everyday purchases. Consumer goods and services such as groceries, electronics, fashion and bill payments are likely to be the first movers. Other sectors will follow.
  • Businesses that sell D2C or B2B/2C will still operate as they do today but will need to adapt purchase channels and flows to AC behavior, including bots. The starting point for a shopper will remain their laptop, computer or device, but AC software will necessitate businesses to iterate on their existing technical protocols, data flows, authentication, risk & security frameworks in order to be made sensitive to and compatible with AC tools.

Is Agentic Commerce a Revolution or an Iteration?

My theory is that AC is simply an iteration on existing processes and behaviors.

One challenge is bots. We’ve spent the past couple of decades in e-commerce attempting to fight bots, because most bot activity is malicious or fraudulent. The industry will need to adapt to new types of bots acting at the behest of AC programs.

Part of the solution to sorting the wheat from the chaff here already exists in the form of tokens. Credit and debit card tokenization has been around for a while now and has gained – and continues to gain – widespread adoption by stakeholders across the value chain. A token can replace the full card number when the shopper enrolls in a digital wallet or browser widget, and these tokens can act as a strong trust indicator, signaling that an AC bot is acting with the buyer’s authority. Authentication is completed at the ‘front end’ AC tool, embedded in the app/site/search tool – similar to (and likely using) digital wallets such as Apple Pay, Google Pay and PayPal.

Tokens, token meta data and authentication flags will help reduce friction and false declines due to fraud prevention and detection software used across the AC-originated payment lifecycle – in particular on the merchant side.

E-commerce websites and apps, payment gateways and acquirers, fraud detection software and tools, card schemes and card issuers can all utilize existing systems, processes and data flows to enable AC purchases with fairly minor adaptations and nuances.

So, is Agentic Commerce a revolution or an iteration? Right now, it looks like the latter — but history has shown us that small iterations can become major shifts. How will your business prepare?

Debunking the Top 5 Myths of Bank Fee Negotiation and Treasury Management

Author

Denise Zelaya
Director, Cash Management


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Strategic treasury management significantly impacts profitability, liquidity, risk mitigation, and overall bank relationships. Despite this, misconceptions around negotiating bank fees and optimizing cash management are still common within finance teams.

For treasury managers, teams, and CFOs looking to improve their financial strategies, here are five common myths discussed with our perspective at Redbridge along with actionable tips.

Myth #1: “My strong bank relationship means no negotiation is necessary.”

Reality:

A strong relationship doesn’t automatically ensure competitive bank fees. Treasury teams frequently overlook substantial savings by neglecting fee benchmarking against market standards. This is either because they don’t know the questions to ask or because they don’t have the data needed. Utilizing market intelligence from independent treasury advisory experts typically results in significant cost reductions.

You’re Probably Facing:

You have a longstanding, solid relationship with your bank and worry that questioning fees might strain that rapport, especially since your bank supports multiple business lines. You might feel uncertain about how to challenge pricing without harming your partnership, or you may simply lack the data necessary to support your position.

Action Tip
Regularly benchmark your bank fees against industry standards, ensuring your terms remain competitive and reflective of fair market prices that also reflect your current needs, volumes and company’s growth.

Myth #2: “Treasury management is only about managing account balances.”

Reality:

Effective treasury management includes liquidity optimization, yield enhancement, bank fee negotiation, efficient debt structures, and global payment acceptance solutions. With the right foresight and management, treasury activities transform from an administrative function into a profit-driving, strategic advantage.

You’re Probably Facing:

You’re overwhelmed by routine daily tasks, other priorities, or lack of time that keeps you from addressing tasks like reconciling accounts, managing cash positions, and ensuring payments are disbursed correctly. These responsibilities leave little to no time for strategic initiatives such as fee optimization, liquidity strategies, or improving returns on idle cash.

Action Tip
Review your treasury strategy comprehensively, emphasizing yield optimization, debt advisory, bank relationship management, and payment efficiencies. Be proactive in your yield strategy by preparing for potential decreases in interest rates, and consider outsourcing lower-priority treasury tasks to create additional value beyond your daily responsibilities.

Myth #3: “Multi-bank FX platforms guarantee optimal FX margins.”

Reality:

Multi-bank platforms introduce competition but don’t eliminate strategic margin inflation. Banks often subtly adjust FX margins based on your historic tolerance, increasing costs incrementally and quietly.

You’re Probably Facing:
You’re relying on a multi-bank platform, assuming it consistently provides the best available rates, but you aren’t actively monitoring how margins change over time or benchmarking them against the broader market.

Action Tip
Engage independent treasury advisors to conduct regular FX margin reviews, ensuring transparency, fairness, and competitive pricing in your global transactions.

Myth #4: “Negotiating bank fees hurts my bank relationship.”

Reality:

Bank relationship management thrives on proactive fee negotiation. Banks expect discussions around fees as part of strategic relationship building. Transparent dialogue strengthens partnerships, aligns service expectations, and fosters long-term success for both parties.

You’re Probably Facing:

You have bank relationships extending over decades that include additional services like credit facilities, merchant services, and investments. This depth can leave you feeling “trapped” and hesitant to ask for further concessions or favorable terms.

Action Tip
Negotiating proactively improves your banking relationships by demonstrating your strategic oversight across all financial products and your commitment to careful financial management. Clearly communicate your treasury strategy and upcoming financial projects during negotiations, fostering collaborative dialogue. Additionally, consider using a RAROC (Risk-Adjusted Return on Capital) analysis conducted by treasury advisors to objectively assess your bank’s profitability and needs, ensuring negotiations yield mutually beneficial terms.

Myth #5: “Negotiating bank fees will harm my credit facility terms.”

Reality:

Effective treasury management includes concurrent negotiations for bank fees and credit facilities without compromising either. Specialist treasury advisors with knowledge and experience in both credit and bank relationship management ensure coordinated and favorable outcomes.

You’re Probably Facing:

You depend on your bank for critical credit facilities and worry that challenging fees might jeopardize those terms or strain your overall relationship, especially when renewals are approaching.

Action Tip
Partner with experienced treasury advisors who possess expertise in both credit facility management and bank fee negotiation, safeguarding your overall banking relationships and financial health.

Final Action Tip

Treasury managers and CFOs should actively challenge assumptions about bank fees and treasury management practices. Your teams should leverage independent benchmarking, transparent bank communications, and strategic advisory partnerships to transform treasury management into a significant competitive and financial advantage.

If your team has questions or hesitations related to benchmarking, analyzing, transforming, and monitoring your treasury operations, contact our team at Redbridge today.

Optimizing Corporate Debt: Control Costs or Improve Flexibility?

Author

Audrey Lokker
Senior Director, Debt


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With Corporate Debt, the Devil is in the Details

When it comes to evaluating your corporate debt facilities, it’s critical to look beyond the headline pricing and assess the total value of the facility and the relationship. While cost matters, a low-rate loan that is poorly structured can result in higher long-term expenses through hidden fees, rigid covenants requiring amendments, or missed strategic opportunities. Finance leaders must evaluate the entire borrowing agreement to determine its real financial impact.

Six Key Drivers That Influence Your Debt Pricing Strategy

  1. Pricing Level and Fee Structure
    Is the quoted fee a commitment fee applied to undrawn balances, or a facility fee on total commitments? How are base rates (SOFR, etc.) defined, and are credit-spread adjustments added?
  2. Bank Relationship Strength
    How well does the lender understand your business? Will the bank finance M&A activity or support you through covenant breaches? A strong banking relationship can drive financial flexibility when it matters most.
  3. Operational Efficiency of the Facility
    How easy is it to draw funds? What are the operational hurdles? Which currencies are supported? Smooth operations contribute to overall debt facility optimization.
  4. Flexibility for Growth
    Are there prepayment penalties? Can the lender assist with M&A strategy and financing? A flexible structure supports long-term capital planning.
  5. Covenants and Baskets
    Are leverage tests based on gross or net debt (remember: cash matters)? Pay close attention to permitted baskets for dividends, debt, and acquisitions—and the process for requesting exceptions. Covenant negotiation is key to executing your growth strategy.
  6. Pricing Grid Structure
    Understand how definitions affect your pricing tier as it is not always straightforward. Would offering a higher “opening” pricing level help lenders secure internal approvals? Credit agreement strategy starts with reading the fine print.

Hidden Levers in Debt Pricing: Capital and Side Business

Some of the most important drivers of pricing are the capital requirements tied to your facility and the ancillary business you provide to your bank.

  • Capital Requirements are influenced by Basel rules, internal facility ratings, and expected loss models. Strong, liquid collateral can reduce spreads.
  • RAROC (Risk-Adjusted Return on Capital) determines how banks price risk. Spreads are set to meet return thresholds after capital, bank expenses and loss adjustments.
  • Ancillary Wallet Share – including treasury services, FX, derivatives, or investment banking, improves your debt pricing power. A diversified wallet helps increase the bank’s return, improving your negotiating power.

Why You Need Regular Debt Facility Reviews

Ongoing debt facility reviews are essential to optimize your cost structure and maintain strategic flexibility. Redbridge helps corporate finance teams:

  • Evaluate the RAROC and qualitative metrics impacting your facility.
  • Benchmark against similar credits and debt structures.
  • Negotiate definitions, grid tiers, and covenant baskets using real-world benchmarks.
  • Explore alternative debt structures, including asset-backed lending, private credit, or debt capital markets.

Optimizing Debt: You Don’t Need to Choose Between Cost and Flexibility

While market conditions always set the stage, details matter. With Redbridge’s experience negotiating credit agreements and evaluating complex debt structures, we help clients identify hidden costs, avoid overpaying, and design corporate debt facilities that balance cost with strategic freedom.

A debt structure analysis can uncover hidden value and improve terms without sacrificing flexibility. Treat your debt with precision and get more value from every dollar you borrow.

Treating Banks Like All Other Vendors

Author

Tamir Shafer
Head of Sales & Marketing – North America


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You Should Frequently Audit Bank Fees Like Any Other Vendor Invoice

If you choose not to read beyond this paragraph, leave knowing that you are likely overpaying for your bank services, and it is imperative for your team to create a cadence of reviewing the costs of your bank relationships.

As a method of ensuring control while preventing fraud, companies like yours have put in place extensive Accounts Payable processes before paying any type of vendor for the goods and services they provide, including:

  • Invoice received
  • Goods or services confirmed
  • Pricing verified against contract
  • Payment scheduled per terms
  • Final approval and release

There is no reason that a bank should be treated differently from other corporate vendors. Banks Are Vendors Too. So, Why Don’t We Treat Them That Way?

Banks (despite providing critical cash management services) often bypass this scrutiny entirely.

Instead of invoices, banks issue account analysis statements. These reports summarize monthly services, volumes, and charges. Yet across more than 100 corporate-bank relationships we’ve reviewed, only six companies applied even a basic vendor-style approval process before paying their banks.

“You wouldn’t pay other suppliers without validation and you shouldn’t make an exception here.”

Tamir Shafer

Head of Sales & Marketing – North America

Common Reasons Teams Skip Review

Why do treasury teams let this slide? Here are the most common reasons we’ve heard from cash managers and treasurers:

  • “There is no simple way to validate and confirm that the volume of activity reported on each service line item listed on the account analysis is what our company actually processed at the bank.”
  • “The bank is paid via auto-debit each month. There’s no actual payment for us to make.”
  • “The account analysis is system generated, so I would expect there to be few, if any, mistakes or errors.”
  • “We believe a spot check of month-over-month totals is sufficient.”
  • “ECR and associated earnings credits usually offsets most of the fees anyway.”
  • “It’s not a priority for us — our team does not have time/resources to do it.”

Are these valid business reasons, or excuses?

What Redbridge Found: Billing Errors Are Common and Costly

Let’s explore just one of those beliefs:

“It’s system-generated. There shouldn’t be many errors.”

Our analysis tells a different story. On average, we uncover 4.68 billing errors per 100 line items across account analysis statements. These issues include:

  • Incorrect calculations
  • Unapproved pricing or ECR changes
  • Inconsistent pricing for identical services across accounts
  • Volume-based tier discounts not applied
  • Unauthorized services added

Based on our review of more than 300 account analyses, the average error rate is $54.44 per $1,000 in gross fees.

That means if your company pays $50,000 in monthly bank fees, you could be losing $2,722 per month — or $32,664 annually — to billing violations that could be avoided.

How to Take Back Control (with HawkeyeBSB)

There are many reasons why your treasury department might start using a specialized tool to monitor bank fees. These could include automating a tedious procedure, preparing for a renegotiation of your bank fees, or ensuring a pricing structure is being applied correctly.

Redbridge created HawkeyeBSB, our bank fee monitoring platform, to solve this problem.

HawkeyeBSB automates the tedious task of auditing account analysis statements. Once your bank files are uploaded, the system scans for exceptions, billing violations, and pricing errors which gives you visibility and control with minimal effort from AP or Treasury.

Whether you use HawkeyeBSB or a manual process, the important thing is to act. Monthly bank fee reviews should be non-negotiable because your banks are vendors.

Redbridge clients typically uncover 20–40% in fee reductions through monthly audits and vendor-level oversight.

Let’s talk about how we can help you get the same results.

7 Questions Treasury Leaders Must Ask About Debt & Financing Amid Tariff-Driven Volatility

Author

Audrey Lokker
Director, Debt


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Whether your company is navigating market disruptions, preparing for tighter bank lending conditions, or assessing refinancing timelines, your treasury team must proactively manage your financial strategy to safeguard liquidity, mitigate risk, and capitalize on opportunities as they arise. At Redbridge, we have conversations with clients every day so we took the opportunity to compile the top seven questions treasury leaders are asking and the answers you need to navigate these financially volatile times.

“You could wait and hope financing rates get better, but conditions could deteriorate further. In times of volatility, there can be short windows of favorable conditions. Prepare in advance so you can move quickly because refinancing doesn’t happen overnight.”

Audrey Lokker

Redbridge Debt Advisory

How Treasury Teams Should Navigate Debt in Volatile Markets

Q1: What are other companies doing to respond to current volatility?

At Redbridge, we’ve observed companies pausing new investments, holding onto cash, and reassessing financial forecasts. Many are proactively engaging banks, preparing for tighter credit environments, and assessing refinancing opportunities to maintain financial flexibility.

Q2: Should we renegotiate bank fees in this climate?

Yes—but not alone. Banks are highly sensitive now due to increased portfolio risks. Treasury teams should leverage expert guidance to ensure negotiations protect vital banking relationships rather than disrupting them unnecessarily. Redbridge’s independence ensures clients achieve favorable outcomes without damaging critical partnerships.

Q3: How long does refinancing or financing take?

To be fair, if there is a lot of money to be made, financing partners can move very quickly, the following guidance requires focus but are not overly aggressive time frames:

  • Simple maturity extensions: Approximately 4–6 weeks.
  • Major changes, facility restructures, or new financing: Typically 2–4 months.
  • Capital markets or complex restructuring deals: Often 3–6 months or longer.

Timing matters, and waiting could mean missing critical refinancing windows, exposing companies to unnecessary risk.

Financial Priorities and Managing Credit Risks Amid Uncertainty

Q4: What financial actions should we prioritize?

  1. Clearly understand your company’s credit profile and proactively manage relationships with rating agencies and lenders.
  2. Evaluate refinancing opportunities to capitalize on favorable market windows.
  3. Diversify financing sources globally to mitigate geopolitical and tariff-driven risks.
  4. Strengthen your hedging strategy to protect against currency, commodity, and rate volatility and other market disruptions.

Analyze your exposure to external disruptions such as tariffs, supply chain disruptions and customer risk.

Q5: What’s the current risk with banks and internal ratings?

Banks often downgrade internal risk ratings for numerous companies in periods of economic uncertainty. This reduces the profitability of loans, and puts upward pressure on pricing and pressure to reduce risk. Proactive communication can help companies maintain or even improve their perceived creditworthiness.

Q6: What if my company doesn’t know its credit rating?

You’re not alone. Many treasury teams lack a clear understanding of their credit profile and underestimate how external ratings can anchor banks’ perceptions. Redbridge addresses this critical gap, offering clarity on credit ratings, improving communication strategies with banks and rating agencies, and mitigating unnecessary financing risks. We also recommend asking your banks for their rating on your company and debt. They will not always answer, but some countries require banks to provide this information.

“Right now, companies are pausing investments and holding onto cash. Banks are re-examining their portfolios and evaluating risk ratings. Understanding your credit profile has never been more important.”

Audrey Lokker

Redbridge Debt Advisory

Q7: Should companies prepare different financial scenarios (recession vs. non-recession)?

Absolutely. Recently, a number of companies have withdrawn public earnings guidance and United Airlines even offered two ranges of guidance for recessionary and non-recessionary scenarios. Understanding how you can survive extreme scenarios will allow you to make investments and grow while other companies retreat. Companies should model multiple financial scenarios, ensuring they remain agile, informed, and ready to act as market conditions evolve.

Take Strategic Action with Redbridge Debt Advisory

Treasury leaders who engage early, clearly understand their credit standing, and strategically manage their banking relationships will better navigate volatility. At Redbridge, we empower finance and treasury teams with independent expertise, global market intelligence, and customized solutions designed to strengthen your financial position even amid turbulence.

Start asking the right questions and get ahead of volatility today.

Card Fee Analytics: How Payments & Finance Teams Are Saving Time and Money With Our Card Fees Insight Report

Author

Chelsey Kukuk
Director, Payments


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You Can’t Fix What You Don’t Measure

Ever looked at your personal credit card statement and realized you’re still paying for that streaming service you forgot to cancel? That’s how most treasury and payment teams discover inefficiencies in their card processing environment. The true costs and realities of vendor relationships become obvious when someone decides to do a deep analysis (and has the benchmarking data available to analyze their position.)

Redbridge’s Card Fees Insight Report is designed to make it easier to understand those complex fees and hidden areas of opportunity. This report is delivered monthly and gives payments leaders clarity on their full card environment — with detailed cost breakdowns, actionable insights, and recommendations informed by peer benchmarks. It’s an always-on audit and advisory tool, built for teams who need insights they can actually use.

Why Visibility is Difficult

Card fees don’t always show up neatly. There is a vast array of individual fee components to interpret and line-item costs to make sense of. Data is hard to manage due to its size and complexity. Critical information is split across different systems, files and formats. Sometimes it is hidden from view. Card fees are buried across acquirers, gateways, payment types, and internal business systems – often using different naming conventions, pricing structures, and formats. That’s why most payments and finance teams struggle to get a complete picture. Even if they know something’s off, they don’t have the time or tools to pull it together.

This is especially true for smaller treasury departments. Most are juggling different priorities, overseeing liquidity, risk, and cash, with little capacity to dive into payment cost analysis. What gets lost is the clarity needed to take action: What are we paying? What are the main drivers of those costs? Could we be overpaying? Are these fees market standard? What’s driving any fluctuations? Without centralized visibility, the cost of inaction compounds over time.

2018 Rate Chart

What the Report Delivers

The Card Fees Insight Report turns fragmented data into actionable intelligence. Every month, the Redbridge Payments Team delivers a clean, comprehensive report that highlights your volumes, costs, and performance. This report provides better insight into your current payments landscape, the fees, card usage, areas for improvement as well as the why behind them.

Redbridge Clients Receive:

  • A normalized audit of their card fee data across providers
  • Insights informed by provider and industry benchmarking
  • A visual dashboard tailored for finance leaders
  • Clear metrics like effective rates, category-level breakdowns, and month-over-month trends
  • Commentary from Redbridge advisors that flags unusual activity or opportunities for savings or negotiation
2018 Rate Chart

The Ongoing Process: Audit. Measure. Enhance. Evolve.

The value of the Card Fees Insight Report isn’t just in the data — it’s in the rhythm it creates. Each month, Redbridge follows a consistent cycle to help your team move from uncertainty to insight to action.

  1. Audit – Your raw card fee data is ingested and normalized
  2. Measure – Reports are generated, highlighting costs, trends, and benchmarks
  3. Enhance – Redbridge flags areas of opportunity or concern, with context and recommendations
  4. Evolve – Over time, you’ll identify what’s working, what needs attention, and how to adapt

This continuous loop turns reporting into a strategic advantage. Whether you’re managing multiple business units, preparing for growth, or simply want to understand your fees with confidence, this process ensures you’re never in the dark again.

Start Seeing What You’re Paying For

Treasury and payments teams need clarity. When you can clearly see what you’re being charged (and why) better decisions follow. The Card Fees Insight Report equips you with the data and analysis to stay ahead of cost increases, justify spend, and make informed adjustments.

This report and our expertise becomes an extension of your team, helping you manage a critical part of your cost structure with clarity and confidence.

Ready to get started?

Contact Redbridge to request a sample report or learn more about how monthly reporting can strengthen your payments strategy.

Why Pay by Bank Is the Hottest Trend in Global Payments

Author

Hugh Paterson
Managing Director, Payments


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For decades, businesses have accepted card payments as the default, paying fees and dealing with fraud risks as part of the cost of doing business. But things are changing. Bank payment flows — often called “Pay by Bank”, “Open Banking”, or “account-to-account (A2A) payments” — are gaining traction. It’s not just hype. Governments and regulators are pushing the industry to develop alternative, cheaper, and more secure payment options, and technology is making that possible.

Key terminology explained

Account-to-account (A2A) payments are a process whereby money flows between sender and recipient bank accounts via established bank payment rails such as SEPA transfer, ACH, and Faster Payments.

Open Banking pertains to technical and regulatory frameworks that help non-bank participants move money and access data, often enabled by fintechs through their secure API protocols. A2A payments can be enabled through Open Banking service providers.

Pay by Bank is a method of payment offered by merchants to their customers. For example, a Pay by Bank payment button can be included at an e-commerce checkout page alongside credit cards and other payment methods. The Pay by Bank feature can be implemented by merchants through Open Banking fintechs or PSPs that enable A2A payment flows.

So, why does this matter? And what should businesses be doing about it right now?

The rise of Pay by Bank: Why now?

Across the world, businesses and consumers are demanding cheaper, faster, and more secure payment options. This has led to a growing adoption of open banking and real-time payment rails that bypass traditional card networks.

Here’s why Pay by Bank is at the center of this shift:

  • Regulatory-driven innovation
    New regulations, particularly in Europe and the UK, are mandating banks to open their infrastructure to fintechs, allowing for seamless and direct payments between accounts. This removes the need for card networks, reducing fees and improving speed.
  • Cost savings for businesses
    Businesses accepting card payments pay processing fees (also known as swipe fees), which include card interchange. These fees may range between 1-4% of the total cost of the sale, depending on the market and card type. In contrast, Pay by Bank transactions often come at a fraction of the cost as there are fewer intermediaries taking their cut of each transaction. For high-volume and high-average order value merchants, this represents a major opportunity to cut costs.
  • Reduced fraud and chargebacks
    Unlike card payments, where compromised sensitive data can be more easily exploited, Pay by Bank transactions require biometric authentication and bank-level security, reducing fraud risks. Plus, reducing the false disputes and chargebacks often associated with card payments unlocks improved revenue predictability for merchants.
  • Customer service
    If an order is canceled, or returned, a refund of the original payment can be processed faster through account-to-account transactions. In some cases, the refund could be instant once keyed by the merchant. Integrated Pay by Bank solutions processed via API carry richer data, enabling faster more accurate order look-up and reconciliation processes. This can improve customer satisfaction and brand loyalty.
  • Faster settlement and liquidity benefits
    Traditional card payments can take days to settle. Open Banking-enabled Pay by Bank flows enable funds to move instantly or within hours, improving cash flow, reducing working capital constraints and improving reconciliation accuracy. ACH in the US can take a little longer to settle and carries increased risk of post-confirmation errors and returns – however the benefits often outweigh the risks when enabled via a comprehensive implementation framework.

Who benefits most from Pay by Bank?

Pay by Bank has universal applicability across industries, but certain sectors stand to gain the most:

Merchants

  • E-commerce & Retail – Lower transaction fees mean higher profit margins. Merchants can also incentivize customers with discounts for choosing Pay by Bank.
  • B2B Payments – Businesses processing large invoice payments can significantly cut costs compared to wire transfers and corporate cards.
  • Subscription Services & Bill Pay – Utility companies, telecom providers, and SaaS businesses can improve cash flow and reduce failed payments.
  • Luxury & High-Value Transactions – High-ticket merchants, from automotive sales to fine jewelry, can avoid excessive card fees while ensuring secure, real-time payments.

The customer

  • The buyer also stands to benefit from cashflow certainty, with some options baked into the service as standard, including:
    • Bank-grade security
    • Faster refunds
    • Cashflow certainty
  • Incentive to purchase via Pay by Bank instead of other payment methods is a challenge that merchants will need to tackle through development of their own custom strategy. There are a variety of methods by which this can be achieved, of which merchants will need to select an approach that suits their business model and buyer profile.

It is important to note that Pay by Bank may not follow every business model and payments environment. To determine whether it may add value requires careful analysis.

Implementation: How hard is it?

One of the most common questions from merchants is: “How difficult is it to implement Pay by Bank?” The answer broadly depends upon the maturity of the business’s technical change management processes and the facilities available from their existing payment providers.

For most businesses, integration falls into one of three categories:

  1. Simple: If your company already works with a PSP that offers a range of local and alternative payment methods, Pay by Bank may be a relatively lighter lift to implement.
  2. Moderate: If your PSP doesn’t support Pay by Bank, you’ll need to evaluate new providers, integrate APIs, and adjust operational and financial workflows.
  3. Complex: If your business sells in multiple markets or is undergoing a full-scale payments transformation — such as replacing acquirers, fraud systems, or tokenization services — Pay by Bank may be a piece of a broader strategy.

Regardless of complexity, the key first steps to take include a thorough business case assessment, including risks and opportunities. Redbridge helps merchants analyze potential savings, operational impact, and customer adoption strategies to determine whether Pay by Bank is a viable addition to their payments ecosystem.

The Redbridge perspective: Why now is the time to act

There’s no doubt that Pay by Bank is one of the most-discussed topics in payments today. But despite the buzz, many businesses remain hesitant to act.

That’s understandable. Payment innovation always comes with uncertainty — especially when it involves regulatory shifts and new industry players. However, those who wait too long risk being left behind.

Companies that implement Pay by Bank today can:

  • Gain a competitive edge with lower payment costs
  • Improve security and fraud protection
  • Enhance customer experience with seamless, real-time payments
  • Future-proof their payment strategy as adoption accelerates

The opportunity is here. The question is: Is your business ready to take advantage of it?

Let’s talk. Redbridge is helping businesses navigate this transformation, from assessing feasibility to executing strategy. We have helped enterprise businesses selling B2B and D2C implement Pay by Bank, including ACH in the US, Open Banking-enabled flows in the UK and Europe, and more.

Contact us today to explore how Pay by Bank can fit into your payments roadmap.

A highly accomplished payments leader with extensive experience in helping merchants increase their scale, Hugh will spearhead Redbridge’s Global Payments Advisory practice, fostering the vision, strategy, and direction to deliver secure business growth to clients worldwide.

London, 27 January 2025 – Redbridge, an independent advisory firm providing comprehensive treasury operations and debt advice to corporations around the world, is pleased to announce the appointment of Hugh Paterson as Managing Director – Global Head of Payments.

Hugh joins Redbridge from Farfetch, a luxury clothing and beauty products marketplace generating several billion dollars in gross merchandise value, where he was Director of Payments – Fintech Operations. During his tenure, Hugh developed a world-class payments organization to support the company’s growth. He has also held leadership roles at PaySafe, Omio, Huawei, Visa and Worldpay. He has expertise in payment optimization, fraud prevention, risk management and the selection of cutting-edge payment technologies.

Reflecting on his new role, Hugh Paterson stated: “ I’m delighted to join Redbridge, an organization that shares my vision of bringing transparency to the relationships between merchants and stakeholders in the payment industry. We are investing to build cutting-edge data-driven software to improve our services and this is a pivotal moment as our new platform will provide richer data insights for our clients, leading to improved operational performance and savings. I’m looking forward to using my experience to strengthen Redbridge’s leadership in analytics and advisory services, providing expertly crafted industry intelligence ”.

Patrick Mina , Chief Executive Officer of Redbridge Debt and Treasury Advisory , shared his enthusiasm about Hugh’s appointment: “ Hugh’s extensive knowledge of the payments ecosystem is a tremendous asset to our clients and teams in Europe and the United States. His experience in building world-class payments organizations for merchants and selecting payment methods, gateways, payment service providers, acquirers and fraud prevention vendors will add great value to our company. His appointments underscore Redbridge’s commitment to accelerate strategic investments that enhance our ability to provide unmatched advisory services and data-driven insights in the payments space.

About Redbridge Debt & Treasury Advisory

Founded in 1999, Redbridge is an independent advisory firm providing comprehensive treasury operations and debt advice to corporations around the world. With offices in Houston, Chicago, New York, London, Paris and Geneva, Redbridge helps companies optimize their financing and treasury operations, from the design of treasury organizations to the creation and implementation of operational solutions. The services we provide include providing advice on bank and merchant processing fees, treasury systems and debt financing structures.

About Redbridge’s Global Payments advisory practice

Redbridge’s Global Payments team helps companies navigate the rapidly evolving payments landscape, enabling them to adopt advanced payment architectures and stay at the forefront of innovation and client experience.

We’re using proprietary technology to provide high-quality advisory and analytics services, helping our clients increase their revenues, acquire new customers and cut costs.

Our areas of expertise include:

  • Cost of sales, fees and pricing
  • Authorization rate optimization
  • Fraud and chargeback strategies
  • Global and local payment methods
  • Data analytics, insights and reporting
  • Payments and risk provider selection, RFIs and RFPs, renegotiation
  • Provider agreements and terms
  • Scheme compliance management
  • End-to-end processing flows and architecture.

Redbridge serves some of the biggest brands in the world and is growing fast.

To learn more:
www.redbridgedta.com/us
www.redbridgedta.com/us/payments-advisory

———————————

Media contacts

Europe
Emmanuel Léchère
elechere@redbridgedta.com
+ 33 6 08 21 69 53

United States
Michael Denison
mdenison@redbridgedta.com
+1 346 207 0250

Redbridge extends its analysis of bank fees into additional cash management services that now includes forex transactions.

Nine out of ten companies are overpaying for their foreign exchange (FX) transactions. That’s the key takeaway from Redbridge Debt & Treasury Advisory’s extensive experience working with businesses of all sizes on cash management, financing, and banking relationships.

FX quote 1

According to Pauline Lion, Associate Director at Redbridge, “Optimizing forex fees and gaining full visibility into transaction costs is typically a privilege reserved for companies with high trading volumes and sophisticated FX management systems. “Large corporations that use platforms like FXall and 360T can create competition between banks to secure better rates. However, for smaller companies handling FX operations directly with their banks, fees can be ten times higher or even more.”

The costs spike even further for account-to-account transfers where banks apply automatic exchange rates. “In some cases, fees can reach several percentage points,” Lion explains. She recalls working with a large company that, despite having advanced treasury operations, only monitored its FX transactions periodically. “For certain automated transactions, the bank’s margin was as high as 220 basis points. That didn’t align with our client’s profile at all,” she says. “We renegotiated the terms and cut their FX costs by 75%.”

“All-in” Pricing

Many companies unknowingly overpay for foreign exchange services simply because they don’t have full visibility into what they’re being charged. “Banks typically provide an ‘all-in’ price that blends the actual exchange rate with their markup,” says Lion. While trading platforms generate detailed post-trade reports that clarify pricing, companies that receive only individual transaction confirmations from banks struggle to analyze cost, often because the process is time-consuming and complex.

Bringing Transparency to FX Pricing

That’s where Redbridge steps in. The firm helps businesses analyze their spot and forward FX transactions to uncover hidden fees. “We can reverse-engineer the bank’s margin using transaction confirmations, something banks are required to send to customers, combined with our deep market intelligence,” explains Lion.

The results speak for themselves. “Our clients have significantly reduced their FX costs after renegotiating their terms with our help,” Lion says. “More importantly, they’ve built stronger relationships with their banks by fostering more transparency and constructive conversations around FX pricing. Bridging the information gap between companies and banks is always a win.”

Direct Debit Services in South America: What Global Businesses Need to Know

Author

Yasmin Greene
Analyst, Payments


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Operating Globally? Your Payment Strategy Matters

If your business is growing in South America or planning to enter the market, how you handle payments can make a big difference. Managing payments across borders includes following regulations and evaluating your cost of processing, efficiency, and how smoothly your customers and partners can transact with you. Without a solid payment system in place, you could face high fees, delays, and frustrated customers.

South America’s payment systems are complex, with each country using different banking regulations, payment platforms, and (don’t forget) customer preferences.

Businesses looking to expand here need to keep traditional banking methods and new digital payment solutions in mind. This guide breaks down the most common direct debit services in four key countries — Brazil, Argentina, Colombia, and Peru — so you can build a smarter, more efficient payment strategy for your organization.

Direct Debit Services by Country

Colombia

  • ACH Colombia: The main processor for interbank payments, including direct debits.
  • PSE (Pagos Seguros en Línea): Initially designed for online payments but now widely used for automating payments by linking bank accounts to service providers.
  • Major Banks: Institutions like Bancolombia and Banco de Bogotá offer direct debit options for recurring payments.

Brazil

  • Débito Automático: Offered by major banks (Banco do Brasil, Bradesco, Itaú, Santander), enabling automated payments for utilities, insurance, and loans.
  • PIX: A real-time payment system introduced by the Central Bank in 2020, increasingly used for automated payments.
  • Various money transfer platforms: Known for cost-effective international money transfers, helping businesses send and receive globally payments.

Argentina

  • Automatic Debt: Available through banks like Banco Nación and BBVA for paying recurring bills.
  • Cámara Compensadora Electrónica (CCE): The centralized system for processing electronic payments, including direct debits.
  • PagosMisCuentas: A widely used online payment platform linked with direct debit services for automating payments.

Peru

  • Interbank Payment System: Banks facilitate direct debits through this system, allowing businesses to automate payments for utilities, loans, and subscriptions.
  • Pagos y Servicios (PYS): A platform for managing direct debits and automated bill payments.

Deep Dive: Key Payment Platforms in South America

Money transfer platforms for Direct Debit in Brazil

Various payment platforms offer low-cost solutions for international money transfers, making it a valuable tool for businesses operating in Brazil. Users can:

  • Set up direct debits for sending and receiving money globally.
  • Choose from various transfer methods, including PIX and local bank transfers.
  • Access multi-currency business accounts, batch payments, and invoice management features.

Here is a shortlist of a few popular platforms Brazilian citizens use the most:

  • PicPay
  • Nubank
  • Wise
  • Pay Market
  • Sicoob

PIX: Brazil’s Instant Payment System

PIX facilitates real-time payments and automated transactions for businesses and consumers alike. Its benefits include:

  • Instant processing, 24/7 availability.
  • No pre-arranged agreements needed between banks and merchants.
  • Greater transparency and control over transactions.

CCE & PagosMisCuentas in Argentina

The Cámara Compensadora Electrónica (CCE) provides an efficient electronic clearing system for automated payments. Meanwhile, PagosMisCuentas integrates with major banks to streamline bill payments, offering:

  • Scheduled and automated direct debits.
  • Real-time notifications for successful or failed transactions.
  • User control to modify or cancel direct debit authorizations.

PSE & ACH Colombia

PSE enables direct debits by linking bank accounts to service providers, while ACH Colombia serves as the backbone for electronic payments. Businesses benefit from:

  • Secure, bank-backed transaction processing.
  • Efficient fund transfers between financial institutions.
  • Automated payment scheduling for recurring bills.

Why This Matters for Global Businesses

If you’re running a business in South America or expanding into the region, understanding direct debit services can help you get paid faster, reduce costs, and create a better experience for your customers. A well-optimized payment strategy helps businesses:

  • Lower transaction costs and reduce delays.
  • Offer reliable and familiar payment options to customers.
  • Improve cash flow with automated billing and collections.

At Redbridge, we help businesses review and streamline payment systems using data gathered from countries, companies, and industries around the world.

Whether you’re reviewing your current setup or looking for better solutions, we provide expert guidance to simplify cross-border payments and direct debit services.

Let’s Optimize Your Payment Strategy

If you’re looking to streamline payments, cut costs, and offer seamless transactions in South America, Redbridge is here to help. Our team of experts can analyze your payment systems, find gaps, and implement solutions that support your business goals.

Contact us today to schedule a consultation and take control of your international payment strategy.

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