Fight the Race to the Bottom on Interchange Fees
Increased federal scrutiny. Expanding responsibility for fraud. Constant competition driving interchange fees down to a fraction. Online payment processors face considerable pressure from sources both inside and outside the payments industry, prompting questions about their business model they’ve never had to face before.
Ultimately the first question that should be asked is also the most simple: “What value do I provide to my customers?”
Perhaps your answer isn’t as simple as the question. But if you’re helping online retailers accept and validate payments and navigating the complex landscape of banks and credit card issuers, you should be focused on one thing… and it isn’t your interchange fee. Its what else you should be doing to make your customer’s lives easier and worry free.
Clearly these value-added services can take a number of shapes. Most processors handle both established and emerging forms of currency. Some processors offer fixed fees to eliminate charges that vary by currency, card or transaction type. Others, sensing both the changes ahead and wanting to provide better value to their customers, offer ways to minimize their exposure to fraud.
Each of these help differentiate the value of a payment processing service, whether it’s an acquirer, payment service provider, hosted pay page or payment gateway. But the smartest operators are leveraging these points of differentiation and implementing systems that offer added fraud protection to merchants while minimizing the risk of their customer portfolio at the same time.
This is why we created Kount Central. Racing to the bottom with interchange fees is a zero sum game. Winning by cutting your margins to the marrow isn’t the answer, creating value is. And why not manage the risk of your merchant portfolio before liability officially moves further up the ladder and you pay the price.
With Kount Central you not only protect customers of all sizes with leading fraud protection, you gain better visibility into bad actors who appear legitimate, even if they have well-concealed subsidiaries operating in less-than-ideal markets. It also gives you flexibility, from the potential of added revenue to bolstering what you offer already. Most importantly, it answers the value question definitively.
To learn more about Kount Central, visit the webpage to see the different options and operating modes available. You can also schedule a free live demo that takes just a few minutes of your day.