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Electronic Merchant Services
think you know what it cost to accept a month
think again calculating the total cost accepting payments
is so complicated that most companies have no idea how much it actually cost
them
just to get paid there are three big things impacting the total cost
accepting payments if
one interchange in assessments interchange rates are non-negotiable
feast set by the card brands
and make up nearly 90 percent of the direct cost every transaction
these rates vary depending on several factors including
the type a car that's used where the transaction occurs
how the card data is captured what industry the businesses then
in all there are more than 300 interchange categories impacting rates
the nine percent of the cost our assessments from the card brands
for items including brand usage fees network access keys
cross-border fees and high-tech a transaction fees
which leaves about one percent of the cost for the processor
who makes the entire transaction possible good
to chargebacks and fraud accepting payments
especially in a non face to face environment is risky
for online merchants will lose more than 3.4 billion dollars to fraud
in 2012 of fraud losses typically range from 50 to 90 basis points
with many companies writing of a full 1 percent of sales
due to fraud the nearly 7 percent
all online transactions OTA magli declined
unfortunately many legitimate transactions are declined in the process
these false positives result in further lost sales
and Los customers managing risk also require significant labor resources
theme 10 to 30 percent of all online transactions resulted in out sort
requiring a manual review by a caseworker the
on average case workers earn twenty dollars per hour maker review six cases
per hour
of so for company generates $1 million transactions per year
and has to review 30 percent of them it would take 20 for caseworkers
a full year to review all 300,000 cases
at a cost of 960 thousand dollars
of charge backs are another significant cost factor
company spent nearly fifty dollars in labor and overhead
just a process a chargeback leading many companies to simply write of chargebacks
below a certain floor limit for
and if a company has excessive chargebacks the card brands can levy
fines
up to twenty-five thousand dollars think
3 PCI compliance and data security
data security has become an enormous global challenge
in 2011 there were 855 incidence of breach
representing 174 million compromised records
cardholder data is the number one target a Packers
making up to seventy eight percent all investigated regis
the average Briton balls 28,000 records costing 194 dollars per record
resulting in a loss nearly 5.5 million dollars per incident
for beyond the immediate financial losses companies often suffer a loss a
customer trust
employee morale investor confidence and the value of their stock
maintaining PCI compliance is a continuous an expensive endeavor
with company spending 225,000 to five hundred thousand dollars or more
for an annual audit the and that figure doesn't include the labor cost for
technology upgrades
associated with maintaining compliance the worst a ball
as recent headlines have proven PCI compliance alone does not guarantee that
your data is secure
for these three big things interchange in assessments
chargebacks and fraud PCI compliance and data security
combined to make up a company's total cost accepting payments
what can you do about it talk Taliban
we have the people processes and technology help you lower your total
cost
accepting payment it all starts with the total cost of payments assessment where
we identify your challenges
and determine where we can help you the most please contact alibi
to arrange for your assessment today my I'm