Merchant Processing Specialty: Retail Industry

retail photo

Typical Problem

Retailers are paying higher than necessary processing costs because of their billing plan design. These are two scenarios:

  • Merchant statements have the headline "Your association rate is 1.5%". There is no specific data about what types of cards are used, but you can divide your costs by the total sales to come up with an average (it won't be 1.5%) effective rate.
  • Merchant statements have 3-6 'buckets' for fees. These usually include mid-qual credit, non-qual surcharge, and mid-qual debit.

Solution

In both cases, the retailer is not getting the benefit of a solution to truly manage their processing costs. In the first they have no data — always a horrible situation that demands an immediate change. In the latter, costs are bundled into 'average buckets' and whenever that happens, the processor is always going to pick a higher average to protect themselves. We offer a completely open solution so customers benefit from every level of interchange rates plus comprehensive reporting.

3D Industry Rating

70% of mid-size brick and mortar retail stores analyzed could realize $500+ savings per month by implementing our recommendations. Overall, this industry has below average payment processing cost management capabilities, regardless of size (up to $1B). On the flip side, 70% of those that also have catalog and or ecommerce stores in addition to their retail store, DO have the proper tools in place.