Nxgen Payment Services’ MerchReport.com service that enables merchants to pinpoint transactions that could have been processed at less-expensive rates is diversifying the independent sales organization’s portfolio, says Michael Jaffe, Nxgen vice president of global marketing and new programs.
MerchReport.com issues three types of reports for merchants. One indicates which transactions were processed at higher rates than they could have been. Another distinguishes cards by type and can show which of a merchant’s locations tend to accept more-expensive cards, such as corporate or purchasing cards. The third report shows the costs of accepting signature- and PIN-debit cards.
MerchReport.com is available to merchants of all sizes, but larger merchants have been strongly attracted to it, Jaffe tells PaymentsSource. ABC Supply Co. Inc., a Beloit, Wis.-based building-materials distributor with 479 locations, was one of the first large businesses to use MerchReport.com (see story).
ABC Supply estimates it will eliminate approximately $1 million in card fees using data that show which payments can process at lower rates because of factors under ABC Supply’s control, such as using address-verification services. A transaction might qualify for a lower interchange rate if a cardholder’s address, ZIP code or other data are captured at the time of the transaction.
“MerchReport.com allows me to quantify my ‘controllable downgrade’ opportunities by reason and dollars by branch and is allowing me to go after approximately $1 million in excess fees that we are paying due to our own controllable actions,” Steven R. Murphy, ABC Supply treasury manager, notes in a statement.
Nxgen has created a national sales office to go after large retailers, Jaffe says. About two companies per quarter have signed up to use MerchReport.com, he says. He declined to say how many companies currently use the service.
Those that have signed on so far also use Nxgen’s processor Elavon Inc. to provide their payment-processing services, though MerchReport.com can work with data from other processors, Jaffe says.
Nxgen’s independent sales agents also can resell MerchReport.com, which Nxgen developed two years ago. The service works with any point-of-sale terminal, payment software or online payment gateway, Jaffe says. MerchReport.com fees are negotiated with each merchant, he notes.
Nxgen has about 10,000 merchants in its portfolio, according to its website.
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