Grocer-Affiliated Debit ProgramBilling and Settlement
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Grocer-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
Stage 1 of 5 — DiagnoseCompleteLast reviewed Jul 18, 2027

What is happening in the grocer's current payment flow, where are the economic gaps, and what causes them?

What do we know?

The observed operating gaps, the workflows they occur in and the loss areas they create for this Value Case.

Why does it matter financially?

Avoidable Value Loss is the ceiling of everything that can later be claimed as recoverable. Nothing downstream can exceed what is evidenced here.

What must happen next?

Accept the diagnosis and the primary root cause so quantification can begin from an agreed cause.

Current condition

What is factually true about the grocer's payment flow today, before any program is proposed.

  • ObservedCustomers tender third-party credit and debit cards across POS and ecommerce.
  • ObservedThe grocer pays acceptance costs under its current merchant, acquirer and processor arrangements.
  • ObservedThe grocer receives merchant sale proceeds and retail margin. It does not receive issuer or card-program economics from third-party card products.
  • Not establishedNo observed result exists for an affiliated debit program, because no such program has been deployed.

Observed acceptance cost

The observed cost of accepting third-party tenders. None of this total is claimed as avoidable at this stage.

Segmented acceptance cost
$18,400,000
Recorded but not yet segmented
$0
Claimed avoidable at this stage
Nothing — quantification happens in stage 2

Gap types

These four gap types are reported separately. They are different in kind and are never added together into a single loss total.

Potentially avoidable own-channel cost

Only the addressable cost difference on eligible transactions that could migrate to the affiliated debit product. It is not the full acceptance cost.

$11,400,000Modelled acceptance-cost delta on captured, eligible own-channel volume

Foregone program economics

Modelled contractual value that could become available from eligible customer spending outside the grocer if the proposed product is used.

$3,600,000Contractual grocer rate of 0.75% on captured eligible outside volume

Data or measurement gap

Missing identity, tender, channel, fee, settlement or accounting detail that prevents reliable quantification. It is a confidence gap, not a dollar gap.

Not a dollar amountNot a monetary amount

Future separate optimization

Processor contract, routing and acceptance-stack changes that are not required by this debit program and are excluded from it.

Not a dollar amountTracked outside this Value Case

These amounts are not additive. Avoidable own-channel cost and foregone program economics are quantified in two separate ledgers in stage 2 and are only combined as Gross Program Value after overlap controls are applied.

Evidence boundaries

What is not yet established. Unknown detail is recorded as unknown, never as zero.

  • Itemised processor fee detail for POS debit
    Fee-component classification for $2.96M of observed cost
    MaterialControllerJun 12, 2027
  • POS gateway fee statement
    POS credit and debit component split
    MaterialDirector, PaymentsJun 12, 2027
  • Identity match uplift plan
    29% of card transactions cannot be attributed to a customer
    BlockingHead of DataJun 30, 2027

Decision Brief

Gate: Do we accept the current-state payment flow, addressable gaps, primary causes and evidence boundaries as the basis for quantification?

Do we accept the current-state payment flow, addressable gaps, primary causes and evidence boundaries as the basis for quantification?

Owner
J. Whitcombe — Value Case Lead (simulated)
Due by
Aug 15, 2027
Gate action
Review fee statement
Blockers
  • Open provider-credit dispute
  • Cross-case overlap review pending finance