Fashion Clothing Merchant

This client engaged CMSPI to provide a full review of its card processing and payments gateway arrangements for the US and UK retail and eCommerce estates.

This client is a retailer of fashion clothing, accessories and home-ware. It operates over 140 stores across Europe and North America, and licenses its brand and products to a further 250 franchise stores worldwide.

This client engaged CMSPI to benchmark an incumbent processor’s contract proposal as well as to provide a full review of its card processing ¬†and payments gateway arrangements for the US and UK retail and eCommerce estates. One of the client’s main objectives was to fully understand its card supply chain structure and gain transparency of all the charges incurred. Further, due to complicated changes to interchange fees, the client sought CMSPI’s assistance to check for historical faults in the application of the processing charging structure.

CMSPI Solution

CMSPI undertook a detailed analysis of the client’s card processing, terminal services and payment gateway arrangements. CMSPI’s analysis team used its in-house, proprietary Pinpoint:Cards software suite to dissect transaction, cost and store profile. This analysis allowed CMSPI to break down the client’s charges to uncover what the true cost was. Further, with full visibility of the network fees, interchange and processor margin, CMSPI was able to effectively benchmark costs against its peers and provide recommendations regarding its card processing arrangements.

Following the benchmarking exercise, CMSPI consultants used this insight to bring competitive tension to negotiations with the client’s incumbent processors to ensure its rates were commercially competitive against the wider retail market.

The overall process delivered a number of benefits to the client, including a significant 35% cost reduction over the contract term across their merchant acquiring, payment gateway and terminal services. Further, CMSPI identified an on-going error in the client’s complex pricing structures and as a result, was able to secure a five-figure rebate back to the client and realign this cost going forward without the need for any operational change.

Through working with CMSPI's highly knowledgeable and supportive consultants, we were able to fully understand the complex acquiring landscape so as to be confident that competitive merchant acquiring contracts are in place providing strong cost reduction benefits.

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