The trade-off impl ied by premium add-on solutions is a symptom of a broken payment system. Take Control of Payments Data
A merchant sacrificing low costs for increased approvals might not be improving the productivity of its transactions. To do that, the merchant would need benchmarking data that offers cross-industry and cross-processor insights. With that data, the merchant can hold its partners to account and ensure that its partners’ incentives are aligned with its own. Per-transaction fees are increasing, and processors can prof it on fee changes i f merchants do not routinely audit their invoices. Audit Fees For example, hidden premiums can find their way into pass-through fees, misapplied rates, and keying errors. CMSPI typically finds errors in one out of every two payments invoices. With new network fees scheduled for 2022 in many parts of the world, it’s important that merchants develop their auditing resources to ensure that their costs align with expectations. Given the chal lenges of adopting an alternative payment method, merchants might feel uncertain where to begin when endeavoring to understand i f an alternative method is right for them and, i f so, which is best . Develop a Business Case by Payment Method Merchants must understand features such as the market of operation of any alternative payment method they consider, the impact of the method on their customer and payments mix, and the positioning of the provider among competitors. Without a robust data-driven business case taking into account new customer acquisition, conversion rates, reporting, fraud, security, and many more factors, merchants may be adopting costly alternative methods without seeing an incremental sales increase.
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