The current processing company’s pricing was one of the significant concerns we raised in our discovery meeting with the CFO.
In reviewing the client’s original merchant contract, we found that rates had increased by 200bps over the past 20 years.
How we helped
We were able to negotiate with several payment processors, including the company they were using.
As part of the second virtual meeting, we presented a list of the top three pricing models for final approval.
Based on our review of the client’s ecosystem, we are confident that the platform meets its security, product needs, and management requirements.
As a result of our watchlist service, one rate increase has been flagged on our end, and our client was able to receive a refund.
Our client has seen a dramatic decrease in processing and rental fees, increased revenue, and, most importantly, customer satisfaction.
Avrage Monthly CreditCard Valume: $1,800,000 USD
Annual processing valume: $21,600,000 USD
- Annual saving $52,254 USD
- NO rate increase since 2020!
- Reduced chargebacks by 75%
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.