Case Study - HVAC Distributor - Three Locations

This client is a member of HARDI.  They have three locations in New Jersey and processes approximately $2 million in annual credit card sales.

When STM first met this client they were using the credit card processing services that had been recommended by their local bank.  They believed their rates were competitive, but the provider was unresponsive.

The first meeting was with the owner who expressed that merchant services were a 'necessary evil' and whenever he had changed services in the past he, 'never saw any significant savings'.

In our conversation with the owner, STM determined that the present provider had failed to update the client's fraud protection features or to implement the correct program to process small business purchase cards correctly.  STM also identified that the terminals that were presently in place, were capable of processing both of these programs.

STM analyzed two months data and found that they did not have any transactions being processed at the low cost "Check Card
" rate and that 29% of his transactions were downgrading to the highest cost "Non-Qualified" interchange category.  He was shocked to learn that he was paying rate of 4% for these Non-Qualified transactions.

STM was able to lower his rates in all interchange categories.  STM reprogrammed his existing equipment, trained all employees and carefully monitored the network settings.  The low cost "Check Card" category rose from zero to 11%, whereas the high cost "Non-Qualified" category decreased from 29% to 8%.  

The client implemented STM service through all
locations and is presently enjoying a 41%
savings of $36,208 in the first year.


Skylands Transaction Management, Inc.

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