Payment cards


Recent congressional legislation and economic trends have brought payment card systems under increased regulatory scrutiny. With experience spanning both the business and regulatory sides of these systems, our experts are able to provide in-depth and innovative analyses of transactions and disputes.

Bates White experts have worked on a number of antitrust cases involving the payment card industry. Their work in these cases has included providing damages analyses in cases involving alleged anticompetitive horizontal agreements; analysis of competitive effects of single firm rules and practices; investigating dual governance of joint ventures by leading card issuers and the effect of restrictions on member banks; analysis of liability and damage issues arising from tying arrangements associated with the processing of payment card charges; and providing analysis in a litigated merger of pin debit networks

Bates White has also been engaged on matters involving credit risk management. While working with one of the country’s largest credit insurance companies, our experts developed state-of-the-art statistical models to predict default risk for the underwriting credit insurance—models that became a standard part of our client’s underwriting process. Additionally, Bates White experts have managed the development and implementation of an artificial neural network credit card fraud model and created strategies to integrate results into business systems.

  • Provided liability and damages analyses for multiple antitrust cases on behalf of a defendant payment card network. Evaluated industry structure, pricing arrangements, and transactional data. Analyzed issues surrounding alleged horizontal price-fixing, bundling, and tying agreements. Conducted extensive review of academic literature regarding two-sided markets and the economics of payment networks. Constructed damage models to assess potential outcomes of litigation. Assisted counsel with mediation preparation and evaluated plaintiff’s mediation positions.
  • Developed state-of-the-art statistical models to account for default correlation for underwriting credit insurance; models became the standard tools for the country’s largest credit insurance firm.
  • For a top-10 credit card issuer, one of our experts developed valuation and negotiation strategy and identified key areas of synergy for the acquisition of a privately held consumer finance company. This was the issuer’s first acquisition. The integration resulted in a several-fold return on investment and established the company as a leading and highly innovative lender in its industry.
  • One of our experts managed product development, marketing, and analysis for both prime and subprime markets in credit cards and installment loans for a top-five issuer of credit cards. Created four new direct marketing programs, including the introduction of direct-to-consumer lending products. Responsible for multimillion-piece direct mail solicitations; creation and implementation of net present value (NPV), lifetime customer value, and return on investment (ROI) analyses; and for evaluating the success of marketing efforts by connecting test results to economic value creation. Aligned price and risk-on-product tiers to achieve above-hurdle ROI performance on all products and customer segments. Constructed target population segmentation algorithms to maximize ROI and NPV of marketing expenditures. Analyses led to the integration of valuation and forecasting models into the results of predictive models to assist in optimizing product choices.
  • Our experts have served as consulting experts and analyzed data for a major credit card transaction processor. Managed development and implementation of artificial neural network credit card fraud model and created strategies to integrate results into business systems. Expanded scope of original product to include capabilities for strategic pricing and account management campaigns.