Reduce Merchant Card Acquirer Costs

Reduce your Merchant Acquiring Costs quickly and easily using your Payments Data

Bankhawk Analytics can help you reduce your company’s Merchant Card Acquiring fees using our team of analysts and ground breaking Card Payment Analytics.

 

Discover opportunities for reducing Merchant Card Acquiring costs

 
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Merchant card charges represent a major cost for business. It is becoming increasingly important for businesses to analyse their cost of card acquiring. Recent changes in the market are providing big opportunities for businesses to better manage and reduce these costs.

A recent ruling by the ECJ allows merchants to have credit and debit transactions acquired outside of the UK and Ireland. This can result in considerable reductions in fees paid. Bankhawk can help you to simplify and reduce your merchant costs by revealing exactly how much is paid to your acquirer, to the card scheme and in interchange fees.

We have worked with many leading businesses to bring complete clarity to their card acquiring. This has resulted in annual savings of up to 25% in their merchant card charges.


WHAT IS MERCHANT CARD ACQUIRING?

When a Consumer pays for goods or services with a card, the Merchant pays part of the price to Visa/Mastercard (Scheme), the card issuing Bank (Interchange) and to an Acquirer that processes the transaction (Margin).

 
TRANSACTIONGETTING PAID

CUSTOMER

In order to make a purchase, the customer carries out several actions:

Lodges cash in their bank account or has a contract with a credit card company.

Provides your business with their Credit or Debit Card information.

Receives the Product/Service from your Business.

BUSINESS

Your business carries out the following actions when making a sale to a customer using Credit or Debit Card:

Receives Customer Credit or Debit Card information.

Provides Customer Credit or Debit Card information to Merchant Card Acquirer.

Delivers Product/Service to Customer.

BANK

Holds cash in the Customer’s account

Receives order to pay from Visa/Mastercard in the form of Card information(transaction data)

Transfers cash from Customer’s account to the Acquirer

ACQUIRER

Receives payment from Bank

Transfers payment to Business (Merchant)

Applies Charges & Fees to Business (Merchant)

BUSINESS (Merchant)

Receives payment from Acquirer

Pays Charges & Fees from Acquirer


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BANKHAWK PROCESS

In order to provide this service Bankhawk operate through a detailed process to translate the complex data sets into easily understood information.

Inputs

Information needed from the merchant

Processing

Build up to date profile of all transaction data for each merchant account

Database

Benchmarking of processes data against market and best in class

Output

Achievable savings and recommended pricing structure

 
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WHERE BANKHAWK ADDS VALUE

Through Benchmarking and Cost Analysis, Bankhawk is able to create a marketplace for Merchants (Businesses) and Acquirers.

Merchants

Merchants are able to fully understand their costs and be assured that they have best pricing available.

Acquirers

Acquirers have access to Merchants they may not have heard about otherwise.

 
 

Bankhawk uses our Bankhawk365 Analytics software to consolidate an organisation’s entire payment data and market information to generate a database of benchmarks providing fast and valuable new financial information. This gives CFOs, treasurers and finance executives the ability to significantly reduce your company’s Merchant Card Acquiring Costs and generate on going savings for your company.

CURRENT PROFILEPOTENTIAL SAVINGSENTRY TO THE MARKET

A profile outlining annual volumes and turnover for each account and the group as a whole will be created. This profile is key to all other aspects of the merchant acquiring process as it provides the detail for locating potential savings and fully evaluating acquirer proposals. It is key to build the profile using all merchant accounts as acquirers build proposals based on total volume, turnover, number of accounts, and the differing aspects within each of these accounts.

The current profile is benchmarked against Bankhawk’s database of merchants. The target benchmark is determined based on region, market, turnover range, volume size and target demographic for consumers of the client. This benchmark gives potentially achievable rates for the merchant and a starting point for savings when entering the marketplace for acquirers. A comprehensive report detailing initial findings, conclusions and recommendations is presented to the client at this time. Next steps will then be agreed. At this point the client can choose to enter into the marketplace in order to achieve the savings identified.

1. Select Optimum Pricing Model

Multiple pricing models exist. Based on the profile of the merchant and savings that are achievable, one pricing model may be more beneficial than another.

2. Identify which Acquirers to Approach

All acquirers have specific benefits and downfalls. Based on the current profile, some acquirers may be able to meet the client’s needs better than others.  Bankhawk will help to identify these acquirers.

3. Submit Profile to Acquirers

The current profile will be submitted to the chosen acquirers. The acquirer will then put together a proposal attempting to best meet the specific needs of the client.

4. Evaluate Proposals

Submitted proposals from acquirers will be analysed against the current market.  At this point, further clarification from acquirers will be sought and acquirers may resubmit to better meet needs.


PRICING OPTIONS

Merchants can be put on one of three different pricing models set by their acquirer. This determines how the merchant will view their acquiring and how much is paid to the acquirer.

BLENDED
  • Prices for cards are put into lumped groups and merchants pay the same price regardless of how the card was acquired.
  • This can be beneficial if the merchant has many unsecure transactions, but worse if transactions are primarily chip and pin.

INTERCHANGE+
  • Pricing is broken down to represent the margin and interchange. Interchange and scheme are represented as one price.
  • The merchant always pays the same amount to the acquirer, but the total cost can fluctuate based on how secure are the transactions.
INTERCHANGE++
  • Pricing is broken down to represent margin, interchange, and scheme fees.
  • Same as interchange+ except the merchant has more visibility of the costs.

 
 

Questions?

 

Call us and speak with a Banking Analytics Specialist to answer any questions you may have.

 
+353-1-6627679
 

Buy Now

 

Begin to enjoy the benefits of reducing your Merchant Card Acquiring Costs. Bankhawk will deliver savings for your business using the power of Bankhawk365 Analytics Software.

 
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Request a Demo

 

Schedule a demo of Bankhawk365 Analytics Software that we use to reduce Merchant Card Acquiring Costs of businesses in various sectors from Hospitality, Retail and Large Corporates, both Public and Private.

 
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