The Right time for Transaction Processing Cost Reduction
Transaction processing cost reduction
Transaction processing cost reduction has always been a powerful tool to increase the revenues for many companies working in the merchant services industry. While in times of economical growth the way to increase revenue is to boost the sales, in times of potential or actual recession, cost reduction might work better. In a broad sense, transaction cost reduction strategy should involve direct and indirect costs. Direct costs can be reduced through negotiating lower credit card processing fees from acquirers and processors, based on consolidated processing volumes. Indirect costs can be reduced if you make your payment processing solution more transparent and user-friendly in the eyes of your sub-merchants. Automating the core processes, such as merchant on-boarding, reconciliation, settlement, chargeback management, reporting, and accounting, should also help. Overall transaction cost involves many items that can be reduced. And now, as we face the possibility of economic recession, it might be the right time to implement a new processing/gateway solution that will allow you to save more on transaction processing.
If you need more information on how to reduce your transaction processing costs and increase your savings in the face of potential recession, you can find it in our respective article on Paylosophy.