One of the key tenets of the Prairie Payments Initiative (PPI) is to provide benefits to the Prairie credit unions by optimizing payments infrastructure, leveraging economies of scale and improving cost efficiency through the aggregation of volumes. Over the past several months, the PPJV Leadership Team has been focused on creating a pricing strategy that reflects this commitment and the realities of the program. As a result of increased program costs and delays in the migration of payment volumes, the PPJV explored opportunities to reduce program costs and ultimately the per transaction fees, which included a possible extension to the IBM contract.
After a comprehensive analysis and review, the board has approved a tiered pricing approach and is pleased to announce that the 2022 pricing has been finalized. The tiered pricing model, using a Fill-a-Tier approach, delivers attractive and competitive market pricing, that is equitable to all credit unions. In this model, credit unions pay the same price for the same number of transactions, with transactions at higher volume thresholds being assessed a different fee. Additionally, the 2022 pricing has been broken into two options, one aligns with the existing credit union Master Participation Agreement (MPA) and the second option provides a lower per transaction fee with a longer contractual commitment reflected as follows:
- Current Credit Union MPA (2027 expiry): average of 23.5¢ per transaction for 2022
- MPA Extension (2030 expiry): average of 19.9¢ per transaction for 2022
The pricing model is simple and transparent to ensure payment processing costs are understood and can be budgeted for in a straightforward manner. Each of the five transaction types will have a single, all-inclusive payment transaction fee which includes all ancillary services and administrative charges (including clearing and settlement) currently seen in the CUPS/CUCM price schedules. The above pricing is not inclusive of any integration or connectivity costs to the PaaS platform or any 3rd party fees that may be applicable to specific payment types, including Wires, Cheques, e-Transfer and Bill Payments.
To download a PDF copy of the 2022 PPJV Pricing Model Announcement please click here.