Axing High Processing Fees for An Interior Design Company

Introduction

A successful Granite Distributor was facing a significant financial challenge: exorbitant credit card processing fees. Their previous provider, recommended by their bank, had imposed a hefty 5% rate, resulting in monthly charges of approximately $650. This substantial expense was negatively impacting the company’s bottom line. Florida Card Services (FCS) stepped in to provide a solution that dramatically reduced these costs and improved the company's financial health.

Step 1: Identifying the Problem

TBGwas experiencing a financial burden due to excessive credit card processing fees charged by their previous provider. The company was concerned about the negative impact these fees were having on their profitability.

Step 2: Understanding the Client's Needs

TPG primary need was to significantly reduce credit card processing fees to improve the company's financial performance. However, due to the nature of their business, passing on the fee to customers was not a viable option.

Step 3: Presenting the Solution

FCS presented two options: the traditional approach of securing a lower processing rate and the cash discount model, which shifts the burden of card processing fees to customers. Given the inability to pass on the fee, FCS focused on the traditional approach and offered to cover the cancellation fee associated with terminating the contract with the previous provider.

Step 4: Implementing the Solution

After careful evaluation, the Granite Distributor opted for the traditional approach of securing a lower processing rate. FCS negotiated a new contract with a more competitive rate, reducing the processing fee by 2%.

Step 5: Measuring Results

Within a short period, TPGrecouped substantial savings, reducing credit card processing fees from approximately $650 to $350 per month. This represented a significant improvement in the company's financial performance.

Step 6: Analyzing the Impact

By securing a lower processing rate,TPG was able to retain a significant portion of revenue that would have otherwise been lost to excessive processing fees. This freed up financial resources for reinvestment in the business, such as expanding inventory, marketing efforts, or technology upgrades.

Step 7: Demonstrating ROI

The implementation of the lower processing rate yielded a substantial return on investment for TPG. The monthly savings of approximately $300 represented a significant portion of the company's revenue, allowing for reinvestment in areas that enhance business growth and profitability.

Step 8: Building a Long-Term Partnership

FCS's commitment to the client's success extended beyond the initial implementation. The company continued to monitor the account and provide support to ensure the ongoing effectiveness of the new contract. This partnership has fostered a strong relationship built on trust and mutual benefit.

Conclusion

The case of Tampa Bay Granite highlights the significant impact of excessive credit card processing fees on businesses and the importance of securing favorable contract terms. By partnering with Florida Card Services, the granite distributor achieved substantial financial savings, improved profitability, and positioned the company for long-term success. This case study demonstrates FCS's ability to provide tailored solutions for businesses in various industries.

Disclaimer: For privacy and confidentiality purposes, names have been omitted.