PayYield is a change to how your existing payment flow runs, not a new system next to it. That is usually the first question a lender asks about PayYield implementation once the case is made: what does turning this on actually require of us?
The honest answer is that the processing side is ours to handle. Two capabilities have to be in place, and both run through your processing partner.
Two capabilities, one processing path
Clearing more of what is scheduled requires a processing partner that enables this functionality and submits each transaction asking for it, so the issuer returns whatever amount is available instead of declining the full amount. Paying less on the dollars that clear requires the volume to be enrolled in the card networks’ debt repayment programs. Each approved merchant is assigned identifiers, and each transaction has to carry the right indicators to receive the lower rate. Our team completes the enrollment paperwork with the networks. Both capabilities run on the card rails you already use, and neither adds a new payment method.
What is left depends on your LMS and your servicing policies, and one item is a decision rather than a task.
What actually has to change
Three items. The effort on the first two depends on your LMS, and the third is your team’s call.
- Item 1
Post a partial payment
Your Loan Management System has to post a payment for less than the amount due and apply it against the installment. How much this involves depends on how your platform is built, and your LMS vendor can confirm where yours stands.
- Item 2
Handle the response correctly
The LMS has to recognize and correctly post a response where the issuer returns less than the amount requested. This is a change to the existing card integration, and how much work it involves depends on how your LMS is built. Every LMS, whether it is already integrated with Payliance or new to us, needs PaySuccess Certification before go-live. Certification is done once per LMS platform, not per lender: the LMS completes test cases, we log the successful transactions, and we issue a PaySuccess Certification letter. IntroXL is certified today, and several other platforms are in process. If your LMS is already certified, this step is done.
- Item 3
Decide how a partial payment is serviced
How a partially collected installment is handled under your servicing policies, how it is allocated, what borrower notification says, and whether your authorization language needs a small update. These are policy and compliance decisions, not engineering ones, and they are worth settling before configuration begins.
Effort varies by platform, so the first step is confirming where your LMS stands. The servicing decisions are yours either way.
What to bring to the first call
The first conversation is about 20 minutes, and its goal is to find out whether PayYield would make a meaningful difference for your portfolio. For decline recovery, the four numbers from the second post make it concrete: NSF decline rate, decline mix, retry cost and yield, and roll rate from first decline. For interchange, recent processing statements and your loan products with average ticket size are enough to start, plus your authorization-to-transaction ratio if you have it.
Neither set needs to be exact. A rough pull from existing reporting tells us whether a fuller model is worth building, and that model is built against your own numbers rather than a portfolio average.
Bring to the call
- NSF decline rate and decline mix, if recovering failed payments is the open question.
- Recent card processing statements, plus loan products and average ticket size, if acceptance cost is the open question.
- Your LMS and current processor, including whether your LMS has completed PaySuccess Certification and who to contact there.
- Whoever owns servicing policy and compliance, since the decisions above sit with them.
A realistic PayYield implementation timeline
Integration effort follows your LMS and processor, not PayYield itself. For most lenders the sequence runs: the 20-minute call and portfolio review, a proposal built on your own numbers, an addendum for the partial payment capability, your servicing and authorization-language decisions, PaySuccess Certification for your LMS if it is not yet certified, and network enrollment. Certification and enrollment timing depend on your platform and the networks, so the proposal sets dates once your setup is known.
Nothing runs in parallel. There is no pilot system alongside the current one, because PayYield applies to the repayment stream you already process. Commercials are confirmed in the proposal. Interchange is one part of total acceptance cost, so how much of a saving reaches you depends on the pricing model configured by your processor.
Where to start
PayYield · A Payments Platform from Payliance
Find out what changes for your portfolio.
A 20-minute call to review your numbers and scope what integration looks like on your platform.
