Adyen retail report: The checkout experience
In simple terms, it means that surcharging is no longer allowed for consumer cards.
This comes as a blow, especially for margin-conscious businesses like airlines and travel agencies, where surcharging is essential to the business model.
But don’t despair.
Surcharging is still possible in some cases. Here’s a breakdown of what will (and won’t) be permitted from January 2018 onwards.
This means that:
Before your customer hits ‘pay’, the Cost Estimation API can tell you the type of card, the projected Interchange fee and if you're allowed to pass through the cost.
It will also assess if a lower Interchange rate can be applied - reducing your costs on a case-by-case basis.
This is made possible thanks to our Interchange++ pricing model, which accurately tracks Interchange rates and scheme fees right down to a transaction level. So we can calculate the cost of each payment even before it is completed.
As well as knowing how much you can charge your customers, you get total visibility into the process, and can see exactly what you’re being charged for each transaction.
There are no other dependencies in the flow, which means increased efficiency with fewer points of failure, and better results.
Since the payment never leaves our platform, you also get in-depth insights, which you can use to optimize your card approval rates, combat fraud and increase your revenue.
In fact, Forrester found that businesses using Adyen typically grow overall revenue by 1.4%.
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