Interchange Pricing Review – PayX consultants helped this major UK Financial Services provider significantly reduce its exposure to over and under paid interchange fees and radically improved their internal processes to ensure that all future monitoring and management of interchange fees was effective and efficiently delivered.
A new Management team at a large UK Financial Services provider had concerns that internal processes and in-house capabilities for monitoring and managing interchange fee receipts and payments was leaving them exposed to significant financial losses.
Continued downward pressure on interchange fee rates meant that there was a clear imperative to ensure that the correct value of interchange fees was both received and paid, as this revenue stream represented some 20% of total revenues generated by the card issuing business.
The organisation realised that with no single individual having responsibility for this important revenue stream it would be prudent to bring in external expertise to appraise both internal processes & procedures and in-house capabilities in respect of interchange fee management.
Payx provided an Interchange specialist who was able to quickly review their processes on-site and met with the key stakeholders to develop the data requirements that would enable a high level review of the company’s interchange fee flows.
Over a short period the internal reports were reviewed; documented processes & procedures were analysed for efficiency gains and a data interrogation exercise was performed whereby a series of excel models were created, based upon the real transaction data.
From this undertaking, the PayX consultant was able to highlight a number of areas where significant improvements could be made to increase efficiency and financial performance.
At a time when the card payments business faced significant challenges and extreme pressure on margins this Financial Services provider was able to pursue interchange fee adjustments well into GBP 6 figures.
By partnering with PayX this organisation realised a clear vision of the measures it needed to take to enhance its management and control of Interchange fees. In turn this helped them to improve revenues, analyse Interchange fees more effectively on an ongoing basis, and where improvements in forecasting, reporting and data mining were possible to assist the executive team to better manage their business.