Study: Most vendors don't know they could be saving on payment processing fees

As previously reported in this blog, one of the primary issues affecting customer data security is the fact that many vendors are simply unaware of the risks they face by not following best practices. The same is true for card processing fees. Many vendors are paying more than they should to process transactions because they just don't know how much money they can save by implementing alternative payment solutions.

According to a report from the Credit Processing Advisory Service (CPRAS), roughly 80 percent of organizations paying higher than necessary payment processing fees don't realize that they are doing so. This can be a problem because vendors without this knowledge may simply accept any kind of payment method without considering the financial toll it takes on their own business. It's important to understand the advantages presented by each payment solution because it assists in formulating merchant strategies, which improve the overall nature of the company.

CPRAS founder Graham Hallewell spoke with the online publication Fresh Business Thinking about the report's findings and suggested the figure might be so high because merchants are intimidated by the number of factors that go into determining an appropriate payment solution.

"The process can be difficult to understand and there are many contributing factors so it is not easy to make informed choices between merchant providers and it has nothing to do with the industry they are in or the value or quantity of transactions they process," Hallewell said.

This is why it is so important to work with a B2B payments consultant. Vendors can learn the benefits of processing payments made with a purchasing card containing level 3 data as well as the best practices to follow while conducting transactions. Contacting a B2B payment solutions provider can allow businesses to acquire the tools and knowledge needed to make the right decisions regarding payment processing.

 

by Ty Hardison

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