Resorts & Hotels
The Client
Realized
$3M
in total savings related to MCC and Downgrades.
$350,000
The Challenge
The client grappled with a complex payment landscape featuring over 700 Merchant Identification Numbers (MIDs) across various acquirers and industry codes. This intricate setup obstructed comprehensive payment data analysis, impeding their payments team’s ability to derive actionable insights for cost optimization. Mounting interchange fees and the pressing need to identify cost-saving opportunities heightened the urgency of addressing these challenges.
Another significant concern was downgrade management, with transactions incurring downgraded interchange fees exceeding 10% of monthly sales volume. Additionally, implementing Dynamic Currency Conversion (DCC) necessitated meticulous tracking of approval rates by property, further complicated by inadequate reporting tools from acquirer portals.
The client sought a solution to streamline payments operations, reduce complexity, and mitigate downgrades and rising interchange fees.
Optimized Payments allowed us the opportunity to examine our payments framework and implement improvements on a variety of levels, ranging from simple aspects such as optimal MCC coding to more complex issues of understanding downgrades. Optimized Payments has armed us with the knowledge to interpret the effect our environment and processes have on the multitude of fees and how changes to our structure can significantly reduce costs.
John Willman, Treasurer & Senior VP
The Solution
Optimized Payments employed a strategic approach to address the client’s payment processing challenges. Leveraging our Harmonize Analytics platform, we conducted a thorough analysis of transaction data, focusing on factors like Address Verification Service (AVS) and settlement times. This analysis uncovered critical insights into the client’s downgrade issues that revealed opportunities for interchange optimization.
By conducting an optimal and suboptimal rate analysis across all Westgate locations, we identified specific areas for improvement. Recommendations were tailored at the gateway and Point of Sale (POS) levels to mitigate downgrade instances and enhance interchange qualification. Implementing these recommendations led to immediate cost savings and laid the groundwork for ongoing efficiency in payment processing.
Optimized Payments also identified an MCC issue with certain high-volume MID’s categorization. Potential MCC changes were assessed for best fit and cost savings potential. A preferred MCC was selected, resulting in lowered interchange rates on the specific MID’s.
We provided enhanced analytics capabilities to track savings from implemented changes and proactively prevent future fee-related challenges. Optimized Payments’ Harmonize Analytics played a pivotal role in consolidating data from multiple payment vendors, ensuring seamless migration during processor transitions, and continuous monitoring for optimal interchange qualification, empowering the client to take control of their payment strategy.
Harmonize Analytics provides an integral understanding of fee assessments. Optimized Payments identified several opportunities for cost reduction. To date, these improvements have saved Westgate nearly $3 million.”
John Willman, Treasurer & Senior VP
The Results
Annual savings of $350,000 through optimized interchange qualification and reduced interchange fees.
Enhanced visibility into potential fee-related challenges, enabling proactive mitigation and preventing larger financial impacts.
Streamlined treasury reconciliation processes through advanced reporting and analytics, ensuring accuracy and financial oversight.
Monthly management dashboards with Key Performance Indicators (KPIs) and detailed analyses provided actionable insights for informed decision-making.
$3M in total savings related to MCC and Downgrades.
$3M in total savings related to MCC and Downgrades.
The Conclusion
Optimized Payments’ tailored solutions and expertise not only resolved immediate payment processing challenges but also positioned the client for sustained cost savings and operational efficiency. By leveraging Harmonize Analytics and proactive strategies, we empowered the client to navigate the complexities of the payment landscape effectively while maximizing profitability and financial control.
The partnership with Optimized Payments is invaluable. The level of detail, insight and guidance has truly guided Westgate to enhance our payment structure for better fee management and maximum profitability in an ever-changing fee environment
John Willman, Treasurer & Senior VP
We are excited to explore additional opportunities with Optimized Payments to continue the history of savings, efficiencies and access to data analytics that allow Westgate to stay on the forefront of optimal payment solutions.
John Willman, Treasurer & Senior VP