CMSPI’s work helped achieve a substantial cost reduction, enhanced transparency and a number of other benefits over the contract term.
This client is a U.S. supermarket chain with over 150 full-service stores, many with gas stations, situated across a number of north eastern states.
Following a successful prior collaboration in which CMSPI worked with the client on an armored transport optimization project, this client engaged CMSPI again to undertake a holistic review of their PIN debit routing arrangements. CMSPI’s initial analysis identified that neither the client, nor their processor, were routing debit transactions in the most optimal way, resulting in it losing hundreds of thousands of dollars each year.
A lack of visibility of the end-to-end process, including sub-standard data and poor management information meant that the client was unable to identify the true opportunity costs associated with its existing routing rules.
Primarily, PIN debit fees vary dependent on whether or not the card issuer is regulated, which industry the merchant is operating in, transaction values and availability of networks on each individual card. After collecting relevant data from the merchant and the incumbent processor, CMSPI undertook a thorough analysis of the client’s transaction profile, taking into account the geographical locations of its stores. From this analysis, CMSPI proposed a fully optimal, prioritized routing order and helped the client forecast volume distribution and costs across each of the debit networks,
Through careful analysis and audit, CMSPI was able to highlight periodic changes to the routing, and other errors, made by the card processor, which were having a detrimental impact on the client’s costs. CMSPI will continue to improve the routing incrementally as the processors capabilities improve and more granular routing preferences are available.
CMSPI’s work helped achieve a substantial cost reduction over the contract term. CMSPI also provided enhanced visibility of the supplier’s pricing arrangements and highlighted the benefits of optimized routing orders and effective volume distribution.
Following the delivery of up-front savings through in-depth analysis and negotiation, CMSPI continues to analyze costs and optimize routing arrangements on a regular basis to ensure that the processor is working to maximize value for the client.
I would like to thank CMSPI for their work across both our cash and cards supply chains that have resulted in significant six-figure annual savings to date. We continue to work with CMSPI to continually optimize cash and check arrangements on-going and we are about to embark on a full card processing RFP with CMSPI following their excellent work on our PIN debit routing arrangements.