Grocer-Affiliated Debit ProgramBilling and Settlement
Back to all Value CasesGrocer-Affiliated Debit Program
Operating domain: Payments · Capability: Affiliated debit / tender migration and program economics
Billing and SettlementStep 5 of 5 · Verify · Complete
- Value at Issue
- Approved
- Confidence-Adjusted Value Opportunity
- Approved
- Projected Net First-Year Benefit
- Projected
- Verified Net Value Retained
- Finance-Verified
- Executive owner
- M. Chen (simulated)
- Working owner
- J. Whitcombe — Value Case Lead (simulated)
- Confidence
- High
- Data completeness
- 96%
- Next required decision
- Review fee statement
- Decision owner · required by
- D. Alvarez (simulated) · Aug 15, 2027
- Reporting period
- Calendar year · Q2 2027
- Scenario
- Approved base case
- Approved baseline
- Payments Value Case Template v3 · version 7
- Data as of
- Jul 18, 2027
Evidence
Supporting data behind $18.4M of identified annual value loss.
One readiness record set serves every stage. A completeness percentage appears only where it has been measured; elsewhere it reads Not assessed and is never estimated.
Payment data readiness
One case record set covering every source the debit program depends on, from POS through to contracts.
5 not fully connected3 completeness not assessed
| Source | Required for | Connection | Coverage period | Completeness | Evidence | Owner | Last refreshed | Affected metrics and stages | Next action |
|---|---|---|---|---|---|---|---|---|---|
POS / TLOG transactions DS-01 | Baseline tender mix, own-channel migrated population, Ledger A | Connected | 2025-07-01 to 2027-06-30 | 99.4% | Store systems extract reconciled to daily sales Grocer-validated factStore Systems · 2027-07-12 · confidence High | Store Systems | 2027-07-12 | Baseline acceptance cost, Ledger A migrated population DiagnoseQuantifyImplementVerify | None — maintained on a daily refresh |
Ecommerce transactions DS-02 | Channel split, ecommerce acceptance cost, Ledger A ecommerce lines | Connected | 2025-07-01 to 2027-06-30 | 98.8% | Digital order extract reconciled to settlement Grocer-validated factDigital Engineering · 2027-07-12 · confidence High | Digital Engineering | 2027-07-12 | Ledger A ecommerce benefit, Channel migration DiagnoseQuantifyVerify | None |
Processor statements DS-03 | All-in affiliated debit cost, authorization and posting counts | Connected | 2027-04-01 to 2027-06-30 | 97.1% | Monthly processor statement, three periods received Vendor quoteProcessor / program manager · 2027-07-09 · confidence Medium | Payments Finance | 2027-07-09 | Ledger A actual cost, Program costs Verify | Obtain the June transaction-level supplement for the residual 2.9 percent |
Acquirer / network settlement DS-04 | Settlement reconciliation and baseline-equivalent acceptance cost | Connected | 2027-04-01 to 2027-06-30 | 99.9% | Daily settlement files, complete for the period Grocer-validated factTreasury Systems · 2027-07-05 · confidence High | Treasury Systems | 2027-07-05 | Settlement reconciliation, Ledger A baseline-equivalent cost QuantifyVerify | None |
Fee and chargeback detail DS-05 | Interchange, scheme and chargeback components of acceptance cost | Connected | 2025-07-01 to 2027-06-30 | 98.2% | Fee detail files matched to settlement totals Grocer-validated factPayments Finance · 2027-07-05 · confidence High | Payments Finance | 2027-07-05 | Acceptance cost per tender, Chargeback cost DiagnoseQuantifyVerify | None |
Loyalty / customer identity DS-06 | Cohort construction, migrated-volume attribution, control matching | Partial feed | 2027-04-01 to 2027-06-30 | 94.1% | Join rate measured at 94.1 percent against a 98 percent threshold Grocer-validated factCustomer Data · 2027-07-11 · confidence High | Customer Data | 2027-07-11 | Cohort attribution, Ledger A migrated volume, Control comparison QuantifyImplementVerify | Close the identity join gap; the unmatched 5.9 percent is excluded, not estimated |
Customer eligibility and account data DS-07 | Eligible population, enrollment funnel | Connected | 2027-04-01 to 2027-06-30 | 99.7% | Eligibility rule applied to the loyalty master Grocer-validated factCustomer Data · 2027-07-11 · confidence High | Customer Data | 2027-07-11 | Eligible customers, Enrollment rate ImplementVerify | None |
Provider enrollment and activation DS-08 | Enrollment, activation and active-account counts | Connected | 2027-04-01 to 2027-06-30 | 100.0% | Provider-reported enrollment extract Provider claimProgram partner · 2027-07-08 · confidence Medium | Program Director | 2027-07-08 | Enrolled, Activated, Monthly active ImplementVerify | Provider-reported only; not independently confirmed by the grocer |
Provider purchase transactions DS-09 | Affiliated debit transaction population, spend per active account | Connected | 2027-04-01 to 2027-06-30 | 96.8% | Transaction-level extract, daily Provider claimProgram partner · 2027-07-09 · confidence Medium | Data Platform | 2027-07-09 | Affiliated debit volume, Transaction frequency Verify | Reconcile the 3.2 percent unmatched tail to settlement before the next period |
Outside-the-grocer program economics DS-10 | Ledger B eligible volume and contracted grocer rate | Manual upload | 2027-04-01 to 2027-06-30 | 91.3% | Partner statement supplied as a monthly summary, not transaction level Provider claimProgram partner statement · 2027-07-10 · confidence Low | Finance Systems | 2027-07-10 | Ledger B eligible volume, Ledger B program value QuantifyVerify | Contract transaction-level extract rights; summary-only data caps verified coverage |
Rewards and incentives DS-11 | Reward cost, budget consumption | Connected | 2027-04-01 to 2027-06-30 | 99.5% | Accrual ledger reconciled to the reward budget counter Grocer-validated factLoyalty Engineering · 2027-07-06 · confidence High | Loyalty Engineering | 2027-07-06 | Program costs, Net value QuantifyVerify | None |
Fraud, disputes and losses DS-12 | Loss cost within program costs | Partial feed | 2027-04-01 to 2027-06-30 | Not assessed | Diligence required Diligence requiredDispute outcomes for June remain open; completeness has not been measured · confidence Not assessed | Risk Operations | 2027-07-07 | Program costs, Observed net value Verify | Measure completeness once the June dispute window closes |
Servicing and support costs DS-13 | Servicing cost within program costs | Manual upload | 2027-04-01 to 2027-06-30 | Not assessed | Contact volumes supplied; cost allocation method not agreed Nourishe interpretationCustomer Care · 2027-07-03 · confidence Low | VP Customer Care | 2027-07-03 | Program costs Verify | Agree the servicing cost allocation with Finance |
General ledger / accounting actuals DS-14 | GL reconciliation of every accepted amount | Connected | 2027-04-01 to 2027-06-30 | 100.0% | Journals extracted by account and cost centre Grocer-validated factController · 2027-07-14 · confidence High | Controller | 2027-07-14 | GL reconciliation, Verified net value retained Verify | None |
Contracts, quotes and commercial terms DS-15 | Contracted grocer rate, exclusions, participation basis | Requested | Current term | Not assessed | Unknown UnknownExecuted program agreement not held; the term sheet governs the rate in use · confidence Not assessed | General Counsel | Never | Ledger B contracted rate, Participation basis SelectImplementVerify | Lodge the executed agreement; the rate remains term-sheet evidenced until then |
High-cost payment mix
High confidenceAnnual volume by tender × effective rate differential between credit and a debit-led mix, held at observed basket distribution.
$8.9M
48% of total
Source data
- Card-brand interchange qualification reports, 12 months
- Acquirer settlement files by tender type
- POS tender mix extract (all banners)
Assumptions
- Credit share of tendered volume: 58%
- Blended credit effective rate: 2.31%
- Achievable debit-led effective rate: 0.72%
Avoidable processing costs
High confidenceLine-item invoice reconciliation against benchmark pricing; variance above benchmark is treated as avoidable.
$6.4M
35% of total
Source data
- Processor invoices, 12 months
- Current merchant services agreement and fee schedule
- Benchmark pricing for comparable grocery volume
Assumptions
- Benchmark set at the 40th percentile of comparable grocery pricing
- Pass-through interchange excluded from avoidable variance
Chargebacks, declines and operational leakage
Medium confidencePreventable event counts × fully loaded cost per event, plus recoverable false-decline gross margin.
$3.1M
17% of total
Source data
- Chargeback and representment logs
- Authorization decline reason codes
- Store back-office reconciliation time study
Assumptions
- False-decline rate: 1.6% of attempted authorizations
- Fully loaded chargeback handling cost: $42 per case
- Recoverable share of leakage: 55%
Assumptions and evidence
Every input behind the Value Case, with its source, analysis period, confidence and validation status.
High: Supported by verified grocer dataMedium: Supported by historical benchmarks or provider informationLow: Requires further validation
| Assumption | Value | Source | Period | Confidence | Status | Updated |
|---|---|---|---|---|---|---|
| Trailing 12-month card transaction volume | $1.42B | Acquirer settlement files | Trailing 12 months | High | Verified | Jul 18, 2026 |
| Tender mix — credit share of tendered volume | 58% | POS tender extract, all banners | Trailing 12 months | High | Verified | Jul 18, 2026 |
| Blended credit effective rate | 2.31% | Payment-processing statements | Trailing 12 months | High | Verified | Jul 18, 2026 |
| Processor fee schedule variance to benchmark | +31 bps | Current fee schedule and merchant services agreement | Current contract term | High | Verified | Jul 20, 2026 |
| Chargeback and refund rate | 0.11% of transactions | Refund and chargeback reports | Trailing 12 months | Medium | Verified | Jul 16, 2026 |
| False-decline rate on attempted authorizations | 1.6% | Authorization and decline reason-code data | Trailing 12 months | Medium | Estimated | Jul 16, 2026 |
Aggregated financial and payment data only. No customer, card or shopper-level information is used in this Value Case.