5 Things You Should Know Before You Renew Your ATM and Debit Processing Contracts

2011-08-03T13:04:00.000-07:00

1. The processing world has changed. Consolidation of network brands and processors has led to price reductions across the board. If you have not negotiated your contract within the past 3 years, you could be paying too much.

2. Not all processors are equal. Product differentiation means different processors have different strengths. There are processors with great terminal driving, others provide the best analytics; some have strong fraud management, while others have excellent back office tools. No single processor is the best at everything. Find the one that best meets your needs.

3. Network selection and processor selection are NOT the same thing. Choose your network partner (NYCE, STAR, PULSE, etc) based on the merits of network membership. Then choose your processing partner based on the products and services that meet your needs. Sometimes you’ll get both from one vendor, sometimes not.

4. You are LOVED. Your processor wants your business and is usually willing to reward your patronage with price reductions and signing bonuses.

5. Check Out the Competition. Even if you are happy with your vendor, it’s helpful to take some time to learn about the latest product features offered and to get a good sense of the current market pricing. When your vendor knows you are shopping, they are more likely to bring their “A” game to the contract renegotiation process.

Need some help? A good consultant will assess your priorities, provide an evaluation of processor strengths and weaknesses, and prepare an apples-to-apples pricing comparison. If you hire a consultant, be sure they are experienced in the nuts and bolts of the payments industry. Attorneys and ‘contract specialists’ can be helpful from a legal perspective, but the vendor selection process is ultimately a business decision, not a legal one. Select a consultant that agrees to a fixed fee and avoid schemes that allow consultants to earn a percentage of cost savings.

Suzanne :-)
www.savagecg.com

Welcome to the Savage Consulting Group Blog!

2011-08-03T12:09:00.000-07:00

I thought I'd join in on the fun of blogging as a way to share my thoughts on the ever changing payments industry and to offer insider tips for those of you that manage ATM, debit and credit card programs.

Feel free to leave your questions or suggest new topics.