ERA Consultants reduce costs on merchant card processing by $1.65 million

In an accomplishment that firmly establishes Expense Reduction Analysts (ERA) as an industry leader, analysts in 2008 saved a client $1.65 million a year on merchant card processing fees. The savings represent a significant 27% reduction on the $6.2 million the client spends annually to process customer payments.

ERA Consultants worked closely with the client's senior finance executives, including the Chief Financial Officer and Vice President of Corporate Finance. Managers from the Information Technology Department, who are responsible for transmitting and storing information for the merchant cards, also were involved in the project. The client provides local buying information in print and online for most markets in the United States.

Analysts carefully studied a year's worth of data and the terms of the incumbent's contract to fully understand the fee structure. In analyzing the data, consultants uncovered hidden fees -- a discovery made possible only because of ERA's unsurpassed expertise in this complex cost category.

Analysts issued a Request for Proposal (RFP) to a half-dozen merchant card processing companies. By comparing the incumbent's pricing to those received during the RFP process, ERA was able to negotiate substantially improved terms with the current provider.

Terms of the new agreement included the elimination of surcharges, implementation of a highly favorable fee structure and early termination of the existing contract without penalties.

Analysts identified further savings in merchant card processing fees through reclassification and the capture of additional data. Your success story is waiting to be written. Get started lowering costs for your company.

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