Case study 2
was looking to reduce company costs to reinvest in marketing and boost sales. In his quest to find areas to cut costs, he realized he had never shopped around for credit card processing services.
Initially, he had signed up with Stripe Payments because it was simple and quick to set up. Later, he opened another processing account with a traditional payment processor after a company rep reached out, telling him his business was high-risk and recommending he have a backup in case Stripe shut him down.
Stripe charged him 2.9% plus .30 per transaction, while the traditional processor charged 4.5% plus .45 per transaction.
What rates did we get them?
First, he found us, Cathedral Payments. We stood out because we informed him that his supplement business might not be high-risk, and we believed we could significantly lower his processing fees.
Our rate team used our automated system to analyze his most recent processing statement to generate an instant rate quote. This quote is based on several factors, such as processing volume, transaction count, average ticket size, current fees, and CB ratio.
The results were remarkable. Theon Global's new rate was 30% better, with an effective rate of 2.5% plus .15 per transaction.
So, how did we do it?
First, we analyzed his processing data and found that his business was not high-risk and, in fact, very healthy.
Second, our banking partners regularly process payments for Nutra/ Supplement companies, so Theon Global was a target customer. Only unknowledgeable and often outdated banks view supplement businesses as high-risk. Two of our strongest banking partners, US Bank and FFB, are eager to work with businesses like Theon Global.
Third, we have hundreds of similar Nutra/ Supplement businesses so the banks trust we will bring them similar good businesses! We leverage our large books of supplement businesses with our partner bank. They know we only work with healthy companies, allowing us to offer even more competitive rates than if a merchant approached them directly.
So, what did Theon do next?
They immediately said yes and asked to switch to us.
We gathered their business information, and their application was approved within 24 hours. They started processing transactions at their new effective rate of 2.5% plus .15 per transaction the next day.
Their monthly savings of $1,000 on lower processing fees went straight into marketing, leading to increased sales and allowing them to grow faster.
What can you do?
If you have a similar business and want to know if you can save money on credit card processing fees, don't hesitate to reach out.
You can see the savings fast with a free rate quote. Just ask!
Reach out at info@cathedralpayments or call direct at (855) 400-4519 today.