It's been a long 12 weeks, particularly for online businesses operating in the travel and hospitality markets. Our account management teams have been working tirelessly with some of our most valued clients to solve the challenges being imposed upon them by merchant acquirers.
Firstly, there’s the need to deal with ‘negative processing’
- where there have been more refunds processed than sales. This involves working with merchant acquirers to negotiate the ‘freeing up of cash’ – when there isn't enough readily available in the clients account to process the refunds. Our teams have been helping clients relentlessly to optimise their cashflow, as a specialist concierge service to help them influence effectively and negotiate through the crisis.
Secondly there’s the challenge of managing security.
Many merchants have a rolling reserve
, a type of cash reserve that withholds a percentage of gross sales in a non-interest-bearing account for a predetermined amount of time before releasing the funds. Requests to utilise these cash reserves and the subsequent negotiations have been a commonplace for many businesses during the pandemic.
However, whilst many online businesses have struggled, plenty of others have flourished. Consider the hyper growth experienced by the likes of Zoom, clearly now a household name! Those providing software services to help manage businesses remotely, others in online gaming and gambling, downloadable digital content provision or greeting cards and gifts - are all experiencing a totally different set of challenges.
Having launched the FXCPay multi-currency payment module at the beginning of March, it's been a tough to manage the launch of a new product at a time when our target audience has been focused on everything but considering the benefits of moving to an alternative online payment solution!
However, the tide has now turned. If you’re online profitability has been hammered recently and you’re looking for ways in which to dramatically reduce your online fees, check out our new, disruptive multi-currency payments offering. FXCPay offers a single 1% transaction charge, inclusive of interchange and scheme fees. Yes, it sounds too good to be true – but it's not!
Conversely, if you’re an online business that’s seeing significant growth, it's also a good time to review transaction fees. If you’re an SME using Stripe or PayPal, are they still the best value for money solution for your growing business? If you’re working with a big player like WorldPay, Barclays or Adyen, are you getting the service and advice you need?
Now is the time for change. Things are beginning to normalise, shops are opening, many of us have children returning to school and before we know it, you’ll become super busy again. Maybe you’ll be too busy to spot the dangling carrot that can add 15-20%
to your annual online profits? Why not take up the offer of our free online payment profitability report
? Schedule a call with us to talk about exploring your current payment charges and seeing how much we can save you.