FEATURE ARTICLE
Insights Magazine from CMSPI
Page 4 | November 2021
Boosting Transaction Productivity - Fixing a Broken System
By Toby McFarlane VP of Ecommerce tmcfarlane@cmspi.com
CMSPI estimates that U.S. retailers lost $24.4 billion to falsely declined card transactions in 2020. Those same retailers are also paying more for each payment on average, with the cost of payments acceptance forecast to double from 2009 to 2025 1 . A similar story is playing out in Europe, where last year merchants saw an estimated €23 billion in false declines and the average Merchant Service Charge rose to levels not seen since before interchange regulation took effect in 2015. These developments represent simultaneous blows to retailers’ costs and revenues. The result? Merchants’ payments have become less productive. Why is the card system broken in this way? Read on to learn more.
The landscape is evolving rapidly, and it is critical conversations about improvements and increased efficiency in the system include all stakeholders…Transaction productivity includes sharing enough data throughout the payments chain with appropriate parties to make the best approval and cost decisions possible. Laura Townsend, Merchant Advisory Group
Powered by FlippingBook