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 4 of 5 — ImplementCompleteLast reviewed Jul 18, 2027

What must be contracted, integrated, tested, measured, and authorized before the debit program can launch?

What do we know?

The approved delivery plan, integration and configuration state, launch readiness and provider delivery position.

Why does it matter financially?

No value is realized until the intervention is live and measurable. Delay moves realization, not the approved amount.

What must happen next?

Complete readiness and launch, or formally hand the intervention into production.

Implementation records for the Grocer-Affiliated Debit Program. Cohort, enrollment, activation, migration and capture figures are approved targets, not observed results. Page completion does not contract, deploy or launch anything.

Approved model and configuration

Select approved with conditions — contracting not executed
Operating model
Provider-led managed program
Provider configuration
Program Partner A as program partner; sponsor bank unresolved and blocking; Issuing Platform B retained only as a fallback
Target cohort
Loyalty members with at least six shopping trips in the trailing twelve months, in the pilot store set, aged 18 or over
Approved financial version
Approved forecast v3 (Quantify), unchanged by this plan

Approved scope

  • Two banners, all staffed and self-checkout lanes, plus the ecommerce checkout
  • Affiliated debit product issued to an eligible loyalty cohort
  • Rewards funded from the approved program budget

Exclusions

  • Credit products of any kind
  • Lane hardware replacement
  • Third-party marketplace channels
  • Any grocer assumption of regulated program obligations

Expected program stages

Enrollment, activation, active use and transaction capture are approved targets. None is an observed result.

Forecast
StageDefinitionTargetBasis
Eligible cohortLoyalty members meeting the eligibility rule in the pilot store set310,000 membersLoyalty file, approved forecast v3
EnrolledApplication submitted and account opened62,000 accounts20 percent of eligible cohort, approved forecast v3
ActivatedCredential funded and used at least once43,400 accounts70 percent of enrolled, approved forecast v3
Monthly activeAt least one settled affiliated debit transaction in the calendar month29,500 accounts68 percent of activated, approved forecast v3
Transaction captureSettled affiliated debit volume attributable to the cohortPer approved Ledger A and Ledger B volumesQuantify funnel, unchanged

Budget and change control

Budget is the approved cost registry. Provider variances raise a governed revision rather than editing the approved version.

Change-control status
Open — one variance under review (per-active-account monthly fee)

Timeline and milestones

MilestoneTarget dateOwnerStatus
Contracting complete2027-08-14General CounselNot started
Sponsor bank onboarded2027-09-11TreasurerBlocked
Integration build complete2027-10-09VP TechnologyNot started
Measurement instrumentation accepted2027-10-23ControllerNot started
Wave one launch decision2027-11-06VP FinanceNot started

Owners

  • ProgramProgram Director
  • FinanceVP Finance
  • TechnologyVP Technology
  • LoyaltyVP Loyalty
  • Legal and complianceGeneral Counsel

Dependencies

  • Sponsor bank named and onboarded
  • Loyalty identity linkage in production
  • Acceptance configuration in both banners
  • Measurement extracts accepted by Data Operations

Risks

  • Sponsor bank onboarding beyond the approved window
  • Enrollment below target reduces every downstream ledger amount
  • Identity join rate below 98 percent weakens attribution

Baseline and implementation

The approved baseline is the immutable starting point for measurement. Implementation milestones determine when measurement can begin, and the benefit ramp shows when approved value is expected to become realized value.

Illustrative Value Case using simulated data. Figures do not represent verified Gelson's Markets results.
Value Case lifecycle

Approved baseline

The approved baseline is the immutable financial starting point for all measurement. It cannot be edited directly — a material change requires a proposed amendment, a stated reason, a reviewed financial impact and a new approved version.

Baseline v1ApprovedFrozen — approved by Director of Finance, Gelson's Markets, Jul 24, 2026
Baseline period
Trailing 12 months — Jul 2025 to Jun 2026
Measurement method
Settled card volume and acceptance cost from processor statements, reconciled to the general ledger and normalized to a full-year, same-store basis.
Annual payment volume
$800.0M
Eligible payment volume
$612.0M (76.5% of annual volume)
Tender mix
Credit — rewards and premium41%2.42% cost rate
Credit — standard17%1.88% cost rate
Signature debit19%1.21% cost rate
PIN debit14%0.62% cost rate
Cash, cheque and other9%0.18% cost rate
Baseline payment costs
$15.0M per year
Effective payment-cost rate
1.87% of annual payment volume (14,960,000 ÷ 800,000,000)
Refund, chargeback and decline costs
$3.4M per year
Included opportunities
  • ·Launch a debit-led financial program
  • ·Renegotiate payment-processing economics
  • ·Reduce chargeback and authorization costs
Excluded costs
  • ·Cash handling, armoured transport and vault services
  • ·Gift card and store-credit program costs
  • ·Fuel-centre payment costs (separate merchant hierarchy)
  • ·Pharmacy third-party adjudication fees
  • ·Corporate treasury and banking fees unrelated to acceptance
Approved assumptions
  • ·Baseline volume basis: Same-store, 12 months, no acquisitions
  • ·Eligible volume share: 76.5% of annual payment volume
  • ·Effective payment-cost rate: 1.87% of annual payment volume
  • ·Interchange schedule: Published rates in effect at approval date
  • ·Volume normalization: Adjusted to constant store count
  • ·Nourishe fee rate: 30% of finance-verified, fee-eligible value
Data sources
  • ·Processor settlement statements (12 months)
  • ·General ledger payment-expense accounts
  • ·Chargeback and dispute register
  • ·Authorization and decline logs
  • ·Store and lane master data
Data-quality status
Sufficient for finance review
Approver
Director of Finance · Gelson's Markets
Approval date
Jul 24, 2026
Baseline version
v1 — original approved baseline
Pilot Readiness

Scope, frozen configuration, rehearsals, UAT, readiness gates, cutover, rollback, Value Activation and operating handoff for this Value Case.

Open Pilot Readiness

Implementation

Only the milestones that determine when value measurement can begin.

MilestonePlannedActualStatusOwnerEvidenceBenefit-timeline impactUpdate
Baseline approvedJul 24, 2026Jul 24, 2026CompleteDirector of FinanceApproved baseline v1On plan
Provider selectedAug 15, 2026Aug 21, 2026CompleteVP Financial PlanningProvider evaluation summary6 days late — absorbed in build
Implementation plan approvedSep 1, 2026Sep 3, 2026CompleteProgram DirectorSigned implementation planOn plan
Data validation completedOct 15, 2026Oct 18, 2026CompleteControllerData validation report, 99.6% coverageOn plan
Production launchJan 1, 2027Jan 4, 2027CompleteProgram DirectorLaunch sign-off3 days late — no ramp impact
Measurement period startedJan 1, 2027Jan 4, 2027CompleteDirector of FinanceMeasurement plan activationOn plan
First finance reviewJul 15, 2027—In progressDirector of FinanceFinance review packScheduled
Value verifiedJul 31, 2027—Not startedDirector of FinanceVerification recordPending finance review

Benefit ramp

When approved value is expected to become realized value, and how the actual ramp compares.

Annualized value at maturity
$15.0M
Steady-state run rate
Approved value, first 12 months
$3.2M
After the approved ramp
Value observed to date
$3.0M
Not yet verified
Value verified to date
Pending
Awaiting finance verification
Month after approvalPhaseRampApprovedActualVariance
Month 1Implementation
0% · actual 0%
$0$0−$0
Month 2Implementation
0% · actual 0%
$0$0−$0
Month 3Implementation
0% · actual 0%
$0$0−$0
Month 4Implementation
0% · actual 0%
$0$0−$0
Month 5Implementation
0% · actual 0%
$0$0−$0
Month 6launchImplementation
0% · actual 0%
$0$0−$0
Month 7Initial adoption
25% · actual 21%
$313K$263K−$50K
Month 8Initial adoption
25% · actual 24%
$313K$300K−$13K
Month 9Initial adoption
25% · actual 25%
$313K$313K−$0
Month 10Scaling adoption
60% · actual 52%
$750K$650K−$100K
Month 11Scaling adoption
60% · actual 58%
$750K$725K−$25K
Month 12Scaling adoption
60% · actual 64%
$750K$800K+$50K
First 12 months after approval$3.2M$3.0M−$138K

Revised forecast for the first twelve months, using observed months in place of approved months: $3.0M. Year two moves toward 100% realization of the $15.0M annualized run rate ($1.3M per month at maturity). Observed value is not verified value.

Measurement plan

How value will be measured for each approved recovery opportunity, and who in finance owns the verification.

OpportunityApproved annualized valueValue typeMeasurement startFinance ownerStatus
Launch a debit-led financial program
Inspect measurement plan
$9.0MRecurringJan 1, 2027Director of FinanceIn finance review
Renegotiate payment-processing economics
Inspect measurement plan
$4.0MRecurringNov 1, 2026VP Financial PlanningIn finance review
Reduce chargeback and authorization costs
Inspect measurement plan
$2.0MAvoided future costDec 1, 2026ControllerIn finance review

Overlap and reconciliation

The same payment volume or cost reduction can only be credited once. Opportunity-level eligible value must sum exactly to total eligible value.

  1. 1
    Establish total eligible payment volume
    $612.0M of $800.0M annual payment volume is eligible under the approved baseline.
  2. 2
    Calculate value created by debit migration
    Migrated volume is valued at the baseline effective rate less the program rate.
  3. 3
    Remove migrated volume from the processing baseline
    Migrated volume is excluded before any renegotiation saving is calculated.
  4. 4
    Apply renegotiation savings to remaining eligible volume only
    Renegotiated rates are applied to residual eligible volume, never to migrated volume.
  5. 5
    Calculate chargeback and authorization savings separately
    Dispute and decline costs are measured on their own cost categories.
  6. 6
    Remove duplicated credits, rebates and operational savings
    One-time processor credits and shared labour savings are removed once.
  7. 7
    Reconcile unique contribution to total verified value
    Opportunity-level eligible value must sum exactly to total value submitted.
OpportunityObserved valueOverlap removedAdjustmentsValue eligible for verification
Launch a debit-led financial program$1.9M—−$60K$1.8M
Renegotiate payment-processing economics$905K−$70K−$10K$825K
Reduce chargeback and authorization costs$275K—−$10K$265K
Total unique value$3.0M−$70K−$80K$2.9M

Reconciliation check: opportunity-level eligible value sums to $2.9M, equal to total value submitted for verification.

Data quality

Verification is not permitted while data quality is insufficient.

Data coverage
99.6%
Reconciliation variance
0.1%
High qualitySufficient for finance review
Complete periods
Jan 2027 – Jun 2027 (6 of 6 months)
Missing periods
None. Two partial store-day extracts back-filled Apr 2027.
Reconciliation status
Reconciled to general ledger
Last validation date
Jul 8, 2027
Source files received
·Processor settlement statements — 6 files received
·General ledger payment-expense extract — 6 files received
·Dispute register export — 6 files received
·Authorization and decline logs — 6 files received
Anomalies detected
·One duplicate settlement file removed (Mar 2027)
·Two store-day gaps back-filled from lane-level detail (Apr 2027)
Outstanding data issues
·Chargeback claim CLM-0003 evidence is partial — representment detail for Jun 2027 outstanding.
Thresholds — High quality: coverage ≥ 98% and variance < 0.5%. Review required: coverage 90–97.9% or variance 0.5–1.0%. Insufficient: coverage < 90% or variance > 1.0%.

Production and service status

Read-only. Simulated service records — operational changes are made in Service Operations.

Open Service Operations
Service
GELS-SVC-PAY-001
Production scope version
PSCOPE-2.1
Active production release
Payments Recovery 4.2 — Production Release Candidate
Deployment status
Not Authorized
Service acceptance
Not Accepted
Operational handoff
Not Started
Commercial handoff
Not Started
Service health
Degraded
Service period
SP-2027-Q2 · 2027-04-01 – 2027-06-30
Open Sev 1 / Sev 2
0 / 1
Open blocking changes
1
Service level
3 of 3 contractual commitments met; 4 of 6 objectives met
Latest service review
SP-2027-Q2: Continue with Actions
Renewal, expansion or exit
Renewal readiness Not Ready — No decision recorded

Decision Brief

Gate: Approved program contracted, integrated, measurable, and authorized to launch

Approved program contracted, integrated, measurable, and authorized to launch

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
Decision HistorySupporting evidence