Payment fee analysis is a service in which we review existing payment processing contracts to identify the Client’s cost of payments. Many of our clients don’t know their true cost of payments when we begin working together. This service exists so that payments can be accurately measured and responsibly managed. To do this expediently and without proprietary software, we analyze sampled transaction data and invoices across time-spans relevant to your business. Here are some of our client success stories:

• For a $10 billion e-commerce retailer: we identified 20bps in cost-saving opportunities due to excess payments and one-sided contracts (Project ROI: 200x).
• For a global travel agency with revenues of $2.5 billion: We identified 12bps in cost-saving opportunities from fixing interchange downgrades, provider overbilling, and SLA violations (Project ROI: 43x).
• For a global travel agency moving $39.2 billion through its platform while netting $4.4 billion in revenue: RPGC defined a global multi-acquirer strategy wherein multiple acquirer pairs were selected to cover each geographic region, optimizing for interchange and minimizing crossborder fees.
• For a $10 billion grocer: We found billing discrepancies worth 1bps in cost improvements (Project ROI: 22x).
• For a $300 million payment facilitator: We identified 26bps of cost savings improvements that, if implemented, would also enhance the payment facilitator’s risk reputation with issuers (Project ROI: 25x).
• For a Fortune 100 hybrid goods merchant: We identified the Effective Fee Ratio and prioritized initiatives to create lift and lower operating costs (as a % of revenue). Despite non-negotiable fees making up over 90% of this client’s external payments fees, RPGC was able to identify savings up to 20% for their total Cost of Payments. Additionally, RPGC identified and supported this client in unbundling and renegotiating suboptimal acquirer and processor contracts.

Payments is never a fix-it-and-forget-it function. Scheme fees and interchange shift on an annual basis. In recognition of the ever-fluctuating landscape, our services can be structured for deep single time efforts or continuous monitoring.

Our Process: 

This service will be provided in these phases:

1. Together we mutually define Project Plan, Timeline, information transfer requirements and expected reporting cadence
2. We review your documentation
3. We perform our analysis
4. We craft Findings & Recommendations
5. We present our deliverables to you! 
6. We also make ourselves available to discuss the recommended changes with folks in your organization that aren’t as focused on payments as you are, who may need additional context to understand why some of our recommendations are beneficial.

Deliverables:

Our Findings and Recommendations Include:

• A comparison of your contracted rates and fees with the invoiced rates and fees 
• A list of the avoidable fees and downgrades currently being paid
• A Pricing Analysis (are you paying the fair market rate for the payments services you are using?)
• An actual cost of Payments (both in value and as a percentage of revenue)
• A checklist of recommended changes