|Net Pay’s Revolution Reporting Tool|
Although the cost of processing credit and debit card transactions has fallen in recent years, their cost to retailers is still very significant. In fact, for any retailer turning over in excess of £1m per annum on cards, your monthly merchant services bill is likely to run well into 4 figures, so a 10% saving will be equally impactful on your bottom line.
There are 2 main ways that this can be done for the average SME retailer. Firstly, if you are taking a volume of transactions that are below £20 in value, the cost of processing a contactless debit card transaction is approximately half that of a regular debit card transaction. So do ensure that you have a contactless enabled PDQ machine in your shop or store, publicise the fact that you take contactless payments both in-store and on-line, and finally ensure that all staff are trained to recognise the contactless logo on customer’s cards.But apart from reviewing your card processing rates, which I am sure you have done already (if not please do feel free to contact SPS by clicking here!), what else can you do to ensure that your card processing costs are minimised?
But secondly, it is important to be able to profile your customers card usage habits (debit vs credit cards) on a daily, weekly or monthly basis. Because debit cards are so much more cost-effective for retailers to process, if all your customers are marching in with their premium Mastercards (World and Signia with their membership benefits are the biggest culprits lately) in order to have their purchase covered by the Consumer Credit Act of 1974, then that is going to cost you and your business a significant amount of money.
|A Screenshot of NetPay’s Revolution Suite|
Although profiling usage habits has always been possible, it has likely in the past been a time consuming manual exercise involving trawling through pages and pages of merchant statements or CSV files and inputting numbers into a spreadsheet only to find you have missed a decimal point or a vital zero somewhere.
But now, with the free access that you will get to your Streamline transaction data, amalgamated into meaningful reports on NetPay’s Revolution reporting suite, you will be able to get an accurate snap-shot of your customer’s purchasing habits on a daily basis. This means that you can see whether your tailored incentive programs to encourage your customers to use their debit rather than credit cards are actually having an effect, on a daily basis. And how valuable could that be?