Saving on Merchant Services Fees

Often large-size merchants, PSPs and MSPs spend a lot of time looking for the solutions which will allow them to save on merchant services fees. What are the solutions which can help to optimize payment processing process and as a result to reduce processing expenses? Let’s start with the techniques that can be used by large-size merchants.

A complicated process needs to take place for the transaction to be processed. It involves a lot of parties but for the cardholder and the issuer, for instance, software companies, payment gateways, acquirers, etc. And the merchant needs to pay for the services they provide. That’s why if merchants want to reduce merchant services fees they need to get as close to the processing network as possible. What is more, often merchants need to pay additional gateway fees to payment gateway providers. The way out is to use your own payment gateway or to negotiate the possibility of subscription-based pricing.

The situation with the PSPs even a little bit more complicated while there are three things which they need to facilitate for their sub-merchants: underwriting and on-boarding, processing, remittance. They can be performed by a processor and consequently, some extra fees can be applied. So in order to reduce merchant services fees, you need to lessen the amount of functions performed by a processor.

There are some other solutions which can help large-size merchants and PSPs to save on merchant services fees. The information on this issue you will find in the respective article at #Paylosophy.