Case Studies
Making Data Deliver Ongoing Annual Savings for a Large FDMC Retailer
Working closely with our specialists, the top 100 retailer was able to maximize savings and stay ahead of the curve in an ever evolving payments market.
Introduction
Key Achievements
- $10m in annual savings by implementing optimized debit routing
- Results far exceeded the expectations of the merchant
- Leveraged regulatory changes to negotiate market-leading arrangements
The Challenge
The Durbin Amendment (Reg ii) changed the debit landscape dramatically and this merchant wanted to ensure they were in a strong position to take advantage of the regulatory change to enhance their debit arrangements and keep them ahead of the payments acceptance curve.
The client was dealing with industry-wide payment complexities including opaque costs, thin profit margins, and increasingly complex customer payment preferences. On top of these, the retailer faced unique challenges related to debit processing and routing due to multiple processors and complex criteria.
The Solution
Our specialists managed a competitive RFP process for the client – ingesting BIN data, analyzing bids, supporting contract negotiations, and balancing internal timelines and processes – all while reducing the resource required from their internal payments team.
By leveraging our industry expertise during this process, the client was able to secure deals and incentives not available to merchants running RFP’s. CMSPI’s benchmarking data derived from our vast data-lake of over a trillion data points accounting for more than a trillion in consumer spend, enabled the retailer to secure market-leading deals from multiple networks.
“This case study illustrates how CMSPI’s unique database can enable even the largest merchants with specialist payment teams to fully leverage their estate and maximize bottom line cost reductions.”
The Results
The client achieved over $10m in annual savings by implementing optimized debit routing and leveraging the increased debit volume available because of the Durbin Amendment. These results far exceeded the expectations of the merchant and their partnership with us continues through the delivery of market insights, which enhances their payments advocacy efforts.
The partnership with our experts delivered big savings, and the continued relationship keeps them ahead of the curve through Smarter Payments Intelligence.