What you'll learn

How to calculate the non-interest income opportunity in your book
The three-paragraph board memo that makes the case
Why "the majority would pay" is your most important data point
How to model income against an adoption ramp

The non-interest income math

The opportunity, in one calculation.

Take your enrolled (or enrollable) business client count. Multiply by your monthly per-account fee. Multiply by 12. That's your annual non-interest income from Positive Pay.

At $40–55 per business client per month, 150–300 enrolled clients produces six-figure annual non-interest income. Before you count the fraud you stop. Before you count the deposits you retain. That's just the fee line.

The "majority would pay" data point.

Industry data shows that a strong majority of business clients currently using Positive Pay for free would be willing to pay for it. They see it as essential. If your FI offers Positive Pay free, you're giving away revenue that your clients have already signaled they'd pay for.

That single data point reframes the conversation from "should we charge?" to "why are we leaving this on the table?"

The three-paragraph board memo.

Fill in your numbers:

"As of [date], [X]% of our [N] business clients are enrolled in Positive Pay. Industry average is roughly 35%. Our exposure on the un-enrolled book is [Y] clients."
"A strong majority of business clients say Positive Pay is worth paying for. We currently capture $[Z] in PP-related non-interest income annually. At our current per-account fee, closing the enrollment gap represents an additional $[calculated] in annual non-interest income."
"Our 12-month plan to close the enrollment gap, capture the income, and reduce loss reimbursement on un-enrolled accounts is attached."

That memo turns Positive Pay from an operational footnote into a P&L conversation.

Model against the ramp.

Don't model income as if full adoption happens overnight. Model it against a realistic enrollment ramp: a target enrollment rate at 6, 12, and 18 months. A ramped model is credible. An instant-adoption model isn't, and your CFO will know.

Do this

Run the one calculation above with your real numbers. Then draft the three-paragraph memo and send it to your CRO or CFO this week.

What's next.

Lesson 4.3 covers the other half of the value: retention.

Self-check

3 quick questions

What's the simplest non-interest income calculation?

A Total deposits times the fraud rate

B Enrolled business clients × monthly fee × 12

C Branch count times asset size

D Number of exceptions times a fixed rate

Correct. Enrolled business clients × monthly fee × 12. Run it with your real numbers — the result is usually a compelling argument by itself.

Not quite. The simplest calculation: enrolled business clients × monthly fee × 12. That's your annual non-interest income from Positive Pay.

Why is the "majority would pay" data point so important?

A It proves PP is expensive

B It reframes the conversation from 'should we charge?' to 'why are we leaving revenue on the table?'

C It's required for the board memo

D It sets the industry price

Correct. If business clients already see it as essential and would pay for it, the conversation shifts from 'can we charge?' to 'why haven't we?'

Not quite. The point reframes the conversation from 'should we charge?' to 'why are we leaving revenue on the table?' — because clients have already signaled they'd pay.

How should you model income for the board?

A Assume instant full adoption

B Against a realistic enrollment ramp at 6, 12, and 18 months

C Don't model it, just describe it

D Only model fraud avoided

Correct. A ramped model is credible. An instant-adoption model isn't, and your CFO will know the difference.

Not quite. Model against a realistic enrollment ramp at 6, 12, and 18 months. A ramped model is credible; instant-adoption models aren't.

← PreviousPricing models that actually work Next lesson →The retention moat