Customer Spotlight: Vended Laundry Operator
Partnering with Paystri and CCI allowed for Small Ticket & Other Fee Savings resulting in an estimated $36,000 in annual savings.
Business and property owner Adam M. owns and operates several apartment complexes in New York and other areas of the Northeastern United States. These properties all offer on-site laundry facilities for tenants. All of the properties use Card Concepts Integrated (CCI) payment systems in their laundry rooms to provide a fast, convenient and secure laundry experience. Adam has been a happy customer of CCI for 10 years utilizing the FasCard management tools, and loyalty cards.
While the convenience of accepting cards in the laundry was crucial to success, Adam was frustrated with paying exorbitant fees on his credit card processing bills. His statement revealed he was paying over 5%.
Incorrectly configured $15 authorization holds in the payments system resulted in customer chargebacks and unnecessary $0.20 zero floor limit fees.
Furthermore, the processing statement was vague and the myriad of line item percentage fees and per-item charges were nearly impossible to decode without industry knowledge.
"We were never able to debug and find a fix because of the lack of transparency with the payment provider," explains Adam.
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After a conversation with CCI, Adam was directed to Paystri’s laundry expert John DiStefano. John was able to use his years of payments experience serving the laundry industry to decode Adam’s credit card processing statement from his previous merchant services provider.
Upon further review, John was able to identify two major areas Paystri could help Dan’s organization to radically cut unnecessary fees using the Paystri Small Ticket Program and through the elimination of Zero Floor Limit Fees. Visa charges a $0.20 per item Zero Floor Limit Fee for any settled transaction that cannot be matched to a prior full or partial authorization. This fee applies to any transaction processed without proper authorization.
"The zero floor limit transactions went away," says Adam. “Savings of one point off gross is a huge number. Last month it was 3.8 points!”
The ability to be enrolled in a small ticket program radically reduced the wholesale cost of accepting credit cards. On any given week 60%-65% of the multi-family laundry rooms transactions are less than $10. The Paystri Small Ticket program was able to reduce the cost of each debit transaction by $0.14. In order to qualify for the program the transactions must be under $10, match the authorized amount, and be settled on the same day. Because the route operator processes around 25,000 transactions every month, the savings quickly added up.
Additionally, access to important data was opened up by switching providers. This gave Adam and his team a more accurate financial picture to work with down to the transactional level.
"Transactions reporting is a lot better,” he explained. "This is a WIN. It is readable - no ghost transactions."
With reduced fees and holds, the facilities are now able to provide the same quality of services with better rates for those who access them every day. This has been a win for the property owners as well as tenants.
"Paystri was able to analyze our needs and solve all of our issues," Adam said. “Their knowledge of the laundry industry plus the added knowledge of Small Ticket really got it done correctly.”
With so much more financial wiggle room, Adam is looking forward to adding new products and services to those his properties currently offer. Able to qualify for a lower interchange rate for small-ticket transactions with Paystri’s services, he is able to keep more money in his business account and turn that around into improved experiences for consumers.
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Customer Spotlight At-A-Glance
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CHALLENGES |
BENEFITS |
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Small-Ticket Transaction Fees Paying a higher Visa Debit Interchange on Small Ticket Transactions under $10 |
Reduction of Fees Means Greater Revenue Twenty-cent Zero Floor Limit fees and the fourteen-cent Debit Small Ticket Savings equate to over $3,000 per month in margin that is no longer lost. |
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Zero Floor Limit Charges Twenty-cent charges tacked onto every small-ticket transaction quickly added up. Incorrectly configured $15 authorization holds resulted in unnecessary fees. |
No More Ghost Charges Transaction details are readable and understandable- no more mysterious charges. |
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Lack of Transparency No access to transaction-level data left providers blind to possible fixes. |
Better Data Access Greater data access and improved customer service means a better experience for everyone. |
-“Paystri made payments simple. They did all of the legwork. A whole team gave support.”
Amad M., Property Owner
-“Customer service with Paystri is a step up! Great customer service no matter who we talk to.”
Adam M., Property Owner
-Learn more about Paystri's work with CCI, Route Based operators, and others at paystri.com