Merchant Card Services – It’s Now Time to Reduce Costs & Improve Cashflow

The speed with which companies have adapted their business models to meet social distancing rules has been very impressive.  In a matter of weeks, we have seen firms of all sizes significantly change how they operate.

The change is particularly noticeable amongst those who previously didn’t need to take any form of online payments/deposits and then suddenly required an online solution.  

The price of implementing these solutions so quickly has been cost and poor cash flow.

Many companies, in the interest of speed, chose ‘all-in-one’ providers to receive online payments quickly and easily.  However, these generally come at a high cost (taken as a % of credit card turnover) and a slow cash release time (with funds sometimes not being released for up to 7 days after the transaction). 

An obvious indicator that cost savings could be made is the total value of card turnover that is being paid to the provider. Doing the maths creates a clear view of the value at stake.

Another is the impact of payment terms. How long are you waiting for the cash? What would getting it earlier be worth?

However, not all providers are equal. There are myriad terms and packages available. It’s important to match the volume, size and methods of payment to the offer. There are different rates, different payment terms, different ‘premium’ charges were savings can become eroded.

Now that time permits, we recommend that companies review these arrangements. 

We regularly achieve lower costs for clients, but more importantly improved cash flow.  It is possible to receive funds the day after transaction, with a 6-day improvement in cash flow giving a strategically critical advantage to client’s finances.

If you would like any more information on tackling the costs and improving the cashflow from Merchant Card Services and how JMCL expertise can help you please contact Jonny Michael, CEO of JMCL Consulting:

E: j.michael@jmclconsulting.com

M: +44 (0) 7831390161