- Monday - Friday 9 AM - 5 PM
- 43300 Southern Walk Plz #166 Ashburn, VA 20148, USA
- 515 Consumers Rd #210 North York, ON, M2J4Z2, CANADA
- (+1) (202) 902-6226
Pharmaceutical distributor
Story
During our discovery meeting with the CFO, she expressed disappointment in her current processing company due to staff complaints.
Payment transactions are processed by the accounting department using a virtual terminal at this Pharmaceutical distributor. As a result, all payments for the organization are processed by two employees in the accounting department.
How we helped
After analyzing our client’s ecosystem, we discovered 90% of all transactions were recurring payments. It would have been possible to re-negotiate and choose a product integrating with their current accounting software.
The next step was developing the recurring payment software that automatically deducted the credit cards each month. The account updater platform, which allows expired credit cards to be updated without the customer needing to be contacted.
As a result, we optimized the interchange fees, reduced credit card processing fees, increased client satisfaction, increased staff productivity, and, of course, improved team morale!
Our client has been using our watchlist service since 2019. Our client received a refund after receiving one rate increase that we flagged on our end.
Result
Avrage Monthly CreditCard Valume: $600,000 USD
Annual processing valume: $7,199,760 USD
- Annual saving $57,697 USD
- NO rate increase since 2020!
- Reduced chargebacks by 78%
What we learned?
Over the past 24 month, online payment processing have increased by 800% due to the COVID19, which is created a fantastic opportunity for retailers. However, in the past 24 months, we have noticed fraudulent online credit card transactions have increased by 48%.
Online businesses tend to pay a higher rate because of the type of transaction they are receiving, which is known as CNP or Online transaction. There is also more risk associated with card not present transactions, which can threaten any online business.
Online businesses stay with their processor by average of two years more than any other industry because of the complexity and cost of integration and chance of downtime for the operation. This also results in a higher processing fee paid by the merchant.
