Two Stores & Multiple
Merchant Accounts

Topic:

Multiple Merchant Accounts to Minimize Processing Costs

Situation:

• Merchant has two brick and mortar retail stores connected by a walk-through hallway
  • Merchant has a terminal (Hypercom T7P) and no pin pads for each store
  • One terminal is not functional and merchant must walk to other store to process a transaction
• Merchant has an internet store
• Accepts payments in face-to-face environment and telephone/internet orders
• Telephone and Internet orders are hand-key entered
• Merchant has one pricing structure for both types of orders
• Receives daily credit card batches 4-5 business days after settlement
• Accepts AMEX but is processed as a third party transaction

Challenges:

• Minimizing processing costs thereby increasing merchant’s Net Profit
• Increase cash flow
• Protect merchant from malfunctioning equipment
• Restore payment processing efficiencies
• Consolidate all transactions by eliminating third party authorizations
• Supplying processing solution and hardware to facilitate lowest costs possible
• Implement technology solution that will minimize processing costs for different types of orders
• Installing hardware and software solution for merchant
• Training merchant how to use hardware and software to minimize processing costs

Actions:

• Provided an in-depth analysis of current processing solution which revealed:
  • current overall bundled rate (total cost of processing)
  • 65% of retail transactions were debit card transactions
• Internet transaction were charged an average of 6.07% processing fee due to incorrect solution
• Determined correct pricing structure for merchant and implemented 2 different pricing structures, one for face-to-face transactions and one for telephone/internet orders (retail pricing structure and MOTO pricing structure)
• Set merchant up with Next Day Funding
• Consolidated AMEX payments through AMEX One-Point program
• Provided 2 credit card terminals (FD-100ti) and 2 pin-pads (FD-10) for face-to-face transactions and an internet gateway (Autherize.Net) solution for telephone/internet orders
• Gave merchant a Lifetime Guarantee on new equipment
• Installed all terminals and Authorize.Net and gave in-person training

Results:

• Saved the merchant an average of $480 per month
• Increased daily cash flow by $2500