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Fashion Retailer

We worked with the retailer to provide a full review of its merchant acquiring and payments gateway arrangements for the UK and US retail and eCommerce estates.

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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 merchant acquiring and payments gateway arrangements for the UK and US retail and eCommerce estates. One of it’s main objectives was to fully understand the card supply chain structure and gain transparency of all the charges incurred. Further, due to complicated changes to interchange fees, it sought CMSPI’s assistance to check for historical faults in the application of the acquiring charging structure.

CMSPI Solution

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

Following the benchmarking exercise, CMSPI consultants used this insight to bring competitive tension to negotiations with 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 it’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.