A change of 10-20 basis points may not appear significant in isolation. However, when applied across millions in card turnover, the impact becomes immediate.
For example, a business processing £100m annually would see costs increase by £100,000 with just a 10bps movement.📈
This is particularly relevant as interchange on commercial cards continues to rise and scheme fees on cross-border transactions increase.
For many organisations, costs are rising without any operational change. In practice, this is often driven by subtle shifts in customer profile or card usage.
While interchange and scheme fees remain fixed, acquiring margin still provides an opportunity for adjustment.
If this has not been reviewed recently, this may be a useful starting point: https://lnkd.in/ef5kiAcD
Many businesses underestimate how quickly payment costs can increase when fee structures begin to shift
