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UniPayGateway

April 16, 2015
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights.

My works have been cited across media and payment blogs. I do my best to help businesses make the most efficient financial decisions that can positively and significantly improve their business growth.

Whether you are a seasoned investor or just starting out in the world of payments, my writing is designed to be accessible to everyone and help people navigate the complex world of payments. So if you want to stay up-to-date on the latest trends and insights in the payment industry, be sure to check out Paylosophy and my published works.

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. On a regular basis, I work with a team of knowledgeable technical people in the space, and I am passionate about finding creative solutions to the challenges presented by the Payments Industry.

I would be happy to help with any questions you might have regarding credit card payment processing, merchant services, EMV certifications, the various ways of becoming a payment facilitator or a payment platform, as well as any other Payment Industry related issues you might be struggling with. Feel free to follow me on Quora, and don’t hesitate to send me links to the specific Quora questions you would like me to answer.

How Businesses can Save Some Money on Merchant Services Fees

Merchant Services Fees

Every large-size merchant, PSP or MSP needs to review its merchant services arrangement from time to time. Some new arrangement can allow a business to save some money on merchant services fees.

For example, a payment service provider can optimize its transaction routing strategy. Amex card transactions can be routed directly to the association for processing, while debit cards can be processed by PIN-less debit networks.

Another approach, which can be utilized by a PSP to reduce merchant serviced fees, requires the PSP to stop delegating merchant underwriting and merchant funding functions to the current processor. Basically, the processor can be left (and paid for) its main task, i.e. transaction processing, while underwriting and merchant funding can be handled by a PSP.

As for merchants, they can try to “cut” as many intermediary links from the “food chain”, which lies between the cardholder and the issuer, as possible. The smaller number of intermediaries is involved, the less the merchant services fees are (because every middleman, naturally, strives to get his share of the fees).

Still another approach is to try to save money on gateway fees by switching to subscription-based pricing model from per-transaction pricing of payment gateway services. Respective arrangements can be negotiated with the current or new payment gateway provider.

More information on the ways of saving money on merchant services fees can be found in the respective article on #Paylosophy blog.

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