Chapter 5: Optimising the total cost of payments
33% of businesses are looking to increase net revenue by finding ways to lower the cost of payments
Retailers are increasingly focused on optimising payment costs. The most effective way to do so is through a holistic strategy that targets savings across the entire payment ecosystem. Whether it's adopting lower-cost payment methods, consolidating vendors, or minimising fraud, there are significant opportunities to reduce costs—if you know where to look.
Finding 01
Businesses find ways to optimise payment costs
A wealth of cost optimisation opportunities can be found in your payment processing. For example, local payment methods can help avoid interchange fees, and smart routing can both reduce costs and increase authorisation rates. But these savings will only be achieved if your payment provider passes them on to you (by billing with Interchange++).
Finding 02
Operational inefficiencies are a financial drain
Managing payments on a day-to-day basis can be a significant drain on resources. Retailers often spend hours (even days) each month reconciling transactions across fragmented systems. And the more payment vendors involved, the more complex the web of partnerships, contracts, integrations, and reporting becomes.
Finding 03
Fraud is still top of mind when it comes to cost
Payment fraud is damaging in every sense. It eats into your profit margins and also undermines consumer trust. The extent of fraud varies widely from region to region and across different age groups. But one thing is certain: AI is table stakes in the fight against it.
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