Reducing Merchant Costs Without Losing Residual Income
We got a call from a business that installs custom closets for their customers. When they finish a job, they: collect card information; bring it back to the home office; hand key the card number, expiration date, and CVV; settle the batch.
They were concerned because their interchange seemed high every month. What option would be the most cost-effective way to reduce their interchange fees?
If you selected B, you are correct!
Both options would save the merchant money on interchange fees, but even with the added cost of buying equipment, option B puts the most money back into the merchant’s pocket.
Let’s compare the two.
Option A would reduce the merchant’s interchange fees on Visa & MasterCard an average of 0.47%. This would save them $752 per month.
Option B would reduce the merchant’s interchange fees on Visa & MasterCard an average of 0.88%. Since they have 6 design reps that are out in the field that collect card information, so we sold them 6 Clover Go devices for $750. Their first month savings ended up being $658.
However, every month thereafter, the merchant saved around $1,400 per month!
What’s more, is that the changes had no negative impact on the advisor’s residual check. As a matter of fact, they walked away with a commission of $138 from the sale of the wireless card readers.
When you’re on the FFUSA team, you have about 100 years of record-setting experience just a phone call away. We are here to help you strategize, target, problem solve, close deals, and get you to the point where you have freedom.
If you’re ready to get the freedom that you deserve, you owe it to yourself to talk with us today!