The client engaged with CMSPI to conduct a holistic review of its card processing costs, network incentives and DCC arrangements for its U.S. locations.
Prior to meeting with CMSPI, the client’s internal team had already undertaken an internal review of total costs and had identified and achieved savings. However, they believed there were additional opportunities to be achieved with significant additional savings available by leveraging 3rd party expertise.
CMSPI began by conducting holistic analysis of the client’s entire payments supply chain, including benchmarking of incentives that were present with global networks for both Signature Debit and Credit transactions. CMSPI analyzed the effectiveness of the current network arrangements, comparing various rebate/bonus structures already achieved by the client.
Upon review of one of the individual network incentives, it was determined that the client was under-utilizing current marketing-based incentives due to restrictions within the contracts and ROI of associated contingencies. CMSPI worked with the client to restructure the nature of the incentives to work more in the favor of the merchant’s requirements and optimized the relationship to deliver a more tangible discount to pass-through card acceptance cost for specific, high volume consumer cards. This process allowed the client to realize a significantly more substantial portion of the 7-figure incentive opportunity from the network.
For an additional network incentive, the client had already established a reduced interchange rate as part of their direct relationship. Upon an in-depth review by CMSPI analysts, it was discovered that there were discrepancies in the way that the processor passed through specific charge elements. The client was not receiving the entirety of refund interchange that they were entitled to, and were negatively affected to the tune of 7 figures per year. By having visibility of these errors and taking part in a CMSPI supported direct approach to each party in the supply chain, the client was able to reclaim historic refund interchange costs and ensure correct future pass-through.
Finally, CMSPI analyzed the client’s international card volumes and created a robust ROI business case for the introduction of DCC/MCP arrangements throughout card present and card not present payment channels.