While you juggle payments relationships, are you trying to figure out which ones outperform the others in margin?
This can be a difficult task.
All things the same— business type, pricing, and Schedule A, you will still likely see consistent differences in margin between relationships.
There are legitimate reasons for this— card mix accepted by the merchant, method of acceptance, etc. And then there are illegitimate reasons. 🚨🚨🚨
So how can you tell one from the other?
Here’s where you can start:
💡If you’re getting summary level residual reporting from your provider, ask for more specifics— Interchange breakdown, assessment detail, etc. If they don’t have it or won’t give it to you, alarm bells should be going off. 🚩🚩🚩This is the most common place I’ve seen providers tweaking numbers for their own benefit.
💡Periodically recalculate the costs they’ve charged against your Schedule A to be sure they are accurately calculating them.
💡Compare merchant statements to the same items on your residuals— income, interchange, etc. to ensure accuracy.
💡Avoid relationships that offer a big front-end incentive. There’s a reason they’re willing to pay you upfront, and it’s not to your benefit.
💡Compare residual income as a percentage of billed fees on different providers every month to see where you’re outperforming others. It’s important that you’re comparing similar business types here. Review the data and watch for consistent trends.
Find a provider you can trust, but verify.
Many of our partners tell us that even though they think they have better pricing elsewhere, they see better margins with us. That is the power of transparency and accuracy.
Dig into the data and go get the income that’s yours.
Here’s a scenario that plays out too often: ISO gets locked into a payments processing deal with a minimum. The processor doesn’t have the right solution or consistent service for