New Guide Helps Credit Unions Decide Whether to Keep or Sell their Card Portfolios

DALLAS, TX ? TNB Card Services has produced a detailed, 17-page guide designed to help credit unions evaluate whether they should retain and build their credit card portfolio or sell the portfolio to a card issuer.

Titled Selling or Holding: A Best Practices Approach to Deciding the Future of a Credit Union Credit Card Portfolio, the guide is available in paper and electronic versions to help credit unions make the important decisions regarding their card programs.

TNB Card Services, the credit union-owned customer service leader in credit and debit card processing and issuing for credit unions, said the guide is as timely as it is useful.

?The number of credit unions choosing to sell their card portfolios increased again in 2004 and appears to be staying strong in 2005,? said Rollie Penn, executive vice president of TNB Card Services. ?Our company alone bought 27 portfolios in 2004, and we have several more purchases in progress.

?There is a strong market for portfolios, which is driving credit unions to look into selling their card programs instead of managing the programs themselves,? Penn explained. ?This guide addresses the issues that credit unions must consider if they are to make the best decision for their members, themselves, and the future of their card programs.?

In its nine sections, the Selling or Holding guide helps credit unions assess the financial and business value of their portfolio, make the decision whether to sell or keep the portfolio, and find a buyer either on their own or through a broker. If the credit union chooses to hold onto the portfolio, the guide offers guidance in strengthening the portfolio and takes a close-up look at a TNB client that had tremendous success in building its card program.

As both a card processor and portfolio owner, TNB Card Services has extensive insight into program management, and the guide reflects the company?s objective viewpoint.

?If a credit union holds its portfolio, TNB offers efficient processing and top-level customer service. If the credit union chooses to sell the portfolio, TNB offers fair prices and follows the purchase with a solid, ongoing partnership that strengthens the card program and the credit union?s brand,? Penn said. ?As a result, credit unions that use our Selling or Holding guide can be assured that it is unbiased and designed to give them the best advice available, for their benefit.?

The Selling or Holding guide is available in paper or electronic versions upon request from TNB Card Services at 888-742-0260 or online at https://www.tnbcard.com/Agent%20White%20Paper/Agent%20White%20Paper.asp.

About TNB Card Services
TNB Card Services, owned and directed by credit unions since 1976, provides full-service credit and debit card processing, as well as an agent issuing solution for credit unions nationwide. Serving more than 400 credit unions and managing more than 1.5 million cards, Dallas-based TNB enables credit unions to enhance member loyalty through credit union-branded card products. For more information about TNB, go to www.tnbcard.com or call 1-888-742-0260.