How CUs Are Leveraging Recurring Card Payments as a Member Loyalty Strategy

Guest Editorial by Amanda Licona-Crocker, President, SWIVEL, an SWBC Company

We know that member expectations today are for seamless, mobile-first experiences, whether making a loan payment, funding an account or managing their recurring bills and subscriptions. To provide this, many FIs are investing in technologies like digital wallets, instant payments and AI-driven personalization, but they may be missing a more cost-effective solution in recurring card payments.

Meet Members Where They Are

Industry data consistently shows that card payments are favored over methods like ACH and checks, especially for managing recurring obligations like installment loans and recurring monthly subscriptions. The Federal Reserve’s 2025 “Diary of Consumer Payment Choice” report showed that both checks and ACH accounted for only 14% or less each of all consumer payments in 2024, with credit and debit cards accounting for a combined 60%+ of all non-cash payments.

This is important for credit unions as the implementation of a recurring card payments strategy helps ensure that the CU’s card(s) remain top-of-wallet among its members. Additionally, recurring card payments provide measurable behavioral, operational and competitive advantages that credit unions can use to reshape engagement models and strengthen member loyalty.Crucially, recurring card payments offer three critical benefits for credit unions:

• More Consistent Cash Flow

  Automated card payments reduce missed transactions and late fees, creating more predictable revenue streams. This stability is especially valuable in an uncertain economy, where delinquency rates continue to rise, as evidenced by subprime auto loan delinquencies recently reached their highest level since the early 1990s.

  
  

• Operational Efficiency Gains

  Recurring card payments minimize resources required to support collections by simplifying the payment journey. In turn, credit unions are able to redirect staff from reactive collections to more proactive, loyalty-building member engagement strategies.

  
  

• More Predictable Member Engagement

  Recurring payments create a steady cadence of interaction between members and their credit union, creating more natural opportunities for personalized offers and organic cross-selling. Payment metadata can also enable tailored communication that further strengthens those relationships while growing wallet share.

Know The Rules of Engagement

For credit unions that leverage recurring card payments, there are some regulatory nuances related to those card programs that must be considered. Card brands have various rules around convenience fees, surcharges, etc. Some common examples include: 

• Not being able to charge a convenience fee that differs by payment method (ACH vs debit)

• Not being able to use a credit card to pay for a debt repayment

• Being able to charge a different fee by a different channel

• Convenience fees must be a flat or fixed amount and disclosed prior to the transaction

• Not charging a convenience fee on recurring transactions for debit cards

Driving Loyalty Through the Digital Experience

Digital convenience is consistently cited as a primary driver for consumers to open new accounts or switch financial institutions. Many credit unions today are feeling the pressure to modernize their payment offerings in order to attract younger members who prioritize mobile-first experiences. Recurring card payments position credit unions to meet these expectations in a tech-savvy and member-focused way.

Recurring card payments should be regarded as much more than just a back-office efficiency play. Rather, when executed correctly, they are a strategic lever to build member loyalty. By providing intuitive, automated payment options to members, credit unions are reinforcing their value to their membership at every touchpoint.

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Amanda Licona-Crocker is president of SWIVEL, an SWBC Company and leading fintech specializing in integrated solutions.