Press Release
Businesses could cut the cost of processing credit and debit card transactions by up to 30 per cent by using a new and independent service. With increasing payments in the retail and hospitality environments being made using cards rather than cash or cheque, the processing charges imposed by acquirers are becoming a heavy burden on the bottom line for many companies. Rate-Changers (www.rate-changers.com) analyses a company’s credit card transactions, then negotiates with the major UK acquirers to find them the best possible deal, cutting costs, and boosting profits. The business then pays Rate-Changers 25 per cent of the savings it makes over the next 12 months through a monthly charge, with no more fees to pay after the first year against continued savings. The high cost of card payment processing has long been one of the dirty secrets of retail, written off as the price of offering additional convenience to the consumer. Many businesses stay with the same acquirer because the prospect of trying to decipher and compare the many and complex variables used by acquirers to set charges is deeply unappealing. Enter accountant, Giles May, who has developed the Rate-Changers concept. He and his team, who all come from backgrounds in the retail and acquirer sectors, see no reason why businesses should continue to pay such excessive charges. “The costs of accepting credit card payments are a significant percentage of turnover,” said Giles May, “As it stands business, as a whole, is effectively giving away hundreds of millions of pounds a year that they should have on their bottom line. Reducing these costs immediately increases profitability.” The savings each client makes will differ, because of the number of variables applied to business of varying types and sizes in different locations. May explains, ‘If a retailer has already devoted expert resources to negotiating their rates, then our efforts may bring savings of just 0.25% of turnover. At the other end of the spectrum, we have seen cases where as much as 2.5% of card turnover can be added back to the bottom line. At either extreme, the effect is significant and we are so sure of the value that we are happy to provide the service prior to commitment from the retailer or service provider. Rate-Changers believes its service could offer significant savings to any business that accepts credit and debit card payments worth in excess of £1 million per year. With his commitment to a no-obligation payment-by-results approach May’s concept seems set to shake up an industry which until now has been impenetrable to almost everyone on the outside. Retail industry bodies have welcomed the initiative. “Any new venture such as this, which has the potential to reduce costs for our members deserves our attention,” said Robert Jarrett, Professional Services Director at the British Shops and Stores Association. A spokesperson from the British Retail Consortium said: “We welcome any initiative that brings down costs, especially for the smaller retailers. Signing up for the service at the Rate-Changers website only takes a few minutes, with no fee to pay up front or any obligation to proceed past the quotaion stage. The Rate-Changers negotiators will then analysisthe existing cost structure and obtain best possible deals with the major UK acquirers, before producing a jargon-free report that outlines the available options. Fees are payable only when the retailer decides to take up one of the new options. With spiraling use of credit and debit cards in the high street, the Rate-Changers initiative has to be good news for retailers, consumers and share-holders alike.