Revolutionizing Payment Processing Efficiency for a Leading Payment Facilitator

The Client

This client is one of the largest Electronic Bill Payment & Presentment (EBPP) companies in the United States, serving various industries including Utility, Consumer Finance, Insurance, and Government. With thousands of sub-merchants across various platforms and acquirers, the client faced significant challenges in managing disparate data sources and analyzing data effectively for cost-savings opportunities. Challenge: With many processors in their network and handling a scale of card payments exceeding $50 billion, the client encountered significant hurdles in identifying cost-saving opportunities and streamlining payment processes efficiently.
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The Challenge

Data Management Complexity:

The client’s data management process relied primarily on manual efforts and Excel-based analysis using pivot tables. This approach proved inadequate and time-consuming.

Diverse Pricing Models

Sub-merchants operated under different pricing models such as Interchange-Plus (IC+), bundled pricing, and convenience fee models. This diversity in pricing structures made it extremely challenging to isolate and analyze data points that directly impacted the client’s bottom line.

Interchange Nuances

Each Merchant Category Code (MCC) had slightly different interchange nuances and optimization opportunities. Managing these nuances and identifying optimization strategies within Excel was cumbersome and prone to errors, hindering effective decision-making and cost-saving initiatives.

Inability to Realize Savings

These challenges collectively impeded the client’s ability to identify and capitalize on cost-saving opportunities, which led them to seek a solution that could provide a more robust and streamlined approach to payment process management and analysis.

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The Solution

Optimized Payments delivered a holistic solution by implementing our advanced Harmonize payments analytics platform:

Data Integration and Normalization

Harmonize seamlessly integrated and normalized data across all processors, providing the client with a unified and consistent view of their customers in a single set of dashboards. This simplified how they managed their data and enabled more efficient data analysis across the entire payment ecosystem.

Custom Optimization Logic for MCCs

Leveraging custom optimization logic for every Merchant Category Code (MCC), Harmonize significantly reduced the workload of compiling and managing mounds of data. · Data Enrichment and Insights: Harmonize empowered them to go beyond data integration by enriching the client’s data with valuable insights. This included analyzing interchange nuances, identifying cost-saving opportunities, and highlighting trends that could impact the payfac’s bottom line. For example, Harmonize helped the client identify customers with increasing costs, allowing the payments team to drill down and address those individual rising costs, boosting profitability. The platform’s enriched data and insights empowered the client to make informed decisions quickly and effectively

Our implementation of Harmonize provided the client with a robust and efficient solution for managing payments data, optimizing costs, and driving actionable insights. By normalizing data across all processors, utilizing custom optimization logic for MCCs, enriching data with specific tables, and offering intuitive dashboard visualization, Optimized Payments enabled the client to achieve significant efficiencies and cost savings in their payment processing operations.

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The Results

Efficient Data Management

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The client's payments team could now focus on cost-saving initiatives instead of managing overwhelming amounts of payments data.

Annual Cost Reduction

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Our solutions enabled the client to achieve over $10 million in annual cost reduction, significantly improving their bottom line and operational efficiency.

The Conclusion

Our implementation of Harmonize transformed the client’s payment processing operations, providing a robust framework for cost optimization, data management, and informed decision-making. The significant cost savings achieved underscored the effectiveness of our solutions in achieving significant savings and enhancing operational efficiency for our clients in the payment facilitation industry.

Simplify the Complexity of Payments Data with Visual Tools.

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