Case Studies
CMSPI Secures Big Savings for a Leading Retail Grocer
By partnering with our payments experts, this leading grocery chain will achieve over $40m in savings through debit negotiations, PIN and PINless savings and processing cost reductions.
Introduction
A leading grocery industry retailer had the objective of reducing their payments costs to optimize profitability.
Key Achievements
- $6.9 million achieved through debit negotiations
- Client is expected to recognize an additional $13 million in PIN and PINless savings
- $14 million settlement achieved for erroneous charges
The Challenge
The client had existing debit deals in place, however, due to various internal priorities within their payments team, they had limited capacity and lacked industry-wide insights to ensure these deals were fully optimized. Additionally, they faced challenges in auditing the performance of their in-store processor. Both situations had an impact on the team’s ability to manage payments’ costs effectively.
The Solution
Our experts conducted an audit of the clients’ payment processes by leveraging the CMSPI Platform, which uses machine learning to compare the company’s transaction profiles versus similar merchants using trillions of data points across trillions in consumer spend.
After discussing the various savings opportunities identified, we led the client through a comprehensive debit RFP process, enhancing existing deals and establishing new deals based on transaction data. Furthermore, our specialists provided the necessary capacity to audit the client’s processor, ensuring accurate reconciliation and identifying areas for improvement.
The Results
The debit negotiations have saved the company a total of $6.9 million and the client is expected to recognize an additional $13 million in PIN and PINless savings. Moreover, our assistance in identifying legacy charges for products no longer in use by the client has led to the elimination of $7 million in processing fees. Our team played a crucial role in helping the client negotiate a $14 million settlement from its processor for erroneous charges.
By partnering with us, the leading grocery chain will achieve over $40m in cost savings including:
Debit negotiations saving $6.9 million.
$13 million in PIN and PINless savings.
Elimination of $7 million in processing costs.