Card Present Insights

Whether a card is physically present in a card transaction (Card Present) has a dramatic impact on scheme pricing, owed largely to the different risk profiles of each transaction type. Put simply, the fraud risk and therefore cost of online transactions (Card Not Present) is much higher.

For omnichannel platforms supporting both types of transaction, such as those offering Point-of-sale (POS) terminals this is a key attribute to factor into their pricing strategy.

To illustrate this, we looked at three of our largest platforms’ Visa volumes for the past six months. We found that on average, Card Not Present transactions cost the platforms 21% more and yielded a margin of 25% less, than their Card Present volumes. The difference was even greater for our European platforms.

This information is vital when developing an effective pricing strategy so this week we rolled out a Card Present filter to bring these insights into the Revenew Web App.

With these insights, platforms who offer both in-person and digital payments can improve their profitability and growth potential, for example:

• Moving off blended pricing and negotiating better IC++ rates with their PSP for Card Present transactions
• Factoring in Card Present / Card Not Present into their pricing models using tools like Revenew Boost, reducing their exposure and helping them to achieve consistent margins
• Helping to incentivise the adoption of POS products by offering their customers better rates

If you'd like to see how Revenew can help your platform truly prosper, book a call with our team today.