The Hidden Cost of Holding Card Inventory

Why Print-on-Demand (POD) Continues to Gain Ground

For years, organizations issuing plastic cards, including financial cards, healthcare and PBM ID cards, loyalty cards, and access credential, have relied on bulk printing and stored inventory. The thinking is simple: print in volume, lower unit costs, and keep cards ready as demand arises.

But as card programs become more dynamic, personalized, and compliance-driven, many organizations are realizing the true cost of card inventory extends well beyond price per card. Increasingly, print-on-demand (POD) is gaining traction as a more flexible, cost-aware alternative.

The Inventory Costs We Don’t See on the Invoice

Most card production decisions focus on unit cost. What’s often overlooked are the indirect costs that accumulate over time.

Card inventory ties up working capital in products that may never be issued. Changes in branding, compliance language, program structure, or even contact details can quickly make stored cards unusable leading to waste, reprints, and disruption. In regulated industries where security and agility matter, static inventory introduces risk rather than efficiency.

Five Hidden Costs of Card Inventory

• Cash Locked in Unused Cards
  Upfront bulk orders tie up capital that could otherwise support growth or innovation.
• Obsolescence from Program Changes
  Updates to artwork, personalization, or compliance requirements can instantly invalidate inventory.
• Security and Compliance Exposure
  Storing blank or pre-printed cards increases security, audit, and inventory-control burdens.
• Limited Scalability
  Forecasting errors lead to either shortages or excess stock—both costly outcomes.
• Emergency Reprints at Premium Costs
  Rush reorders often come with higher unit pricing and operational strain.

How POD Changes the Equation

Print-on-demand card printing aligns production with actual demand. Cards are produced as needed using current data and artwork eliminating long-term forecasting and reducing waste. This shifts card production from a capital-intensive model to a transaction-based operational approach.

Where Print-on-Demand Is Most Effective

POD is especially valuable for programs that change frequently, including:

• Fintech and financial services cards with fluctuating user volumes
• PBM and healthcare ID cards with mid-year plan updates
• Loyalty and membership cards with evolving branding

In these environments, producing cards securely and accurately without holding inventory delivers clear operational and financial advantages.

When Inventory Still Makes Sense

Bulk printing can still work for programs with stable designs, predictable volumes, and minimal compliance change. However, these scenarios are becoming less common as personalization, speed-to-market, and regulatory requirements increase.

A More Flexible Way Forward

As card programs evolve, many organizations are rethinking long-standing assumptions about inventory and cost. Print-on-demand isn’t just a production method it’s a strategy for reducing risk, increasing flexibility, and aligning costs with real-world usage.

Understanding the hidden costs of inventory is often the first step toward building a more resilient, future-ready card program.