2007 US Merchant Processing Pricing Benchmark Study
The Strawhecker Group has announced the availability of its fourth annual 2007 US Merchant Processing Pricing Benchmark Study prepared by surveying the merchant acquiring industry to determine the prevailing line item pricing rates for high volume merchant processing.
The objective of this unique Benchmark study is to explore the cost of key pricing elements throughout the US Merchant Acquiring Industry. The study includes data from merchant acquirers that use third-party providers for Front-end authorization and merchant Back-end settlement services. The intent of this study is to provide clients an analysis tool in order to compare their cost for high volume processing products and services with other merchant acquirers.
The study utilizes a format so that all respondents' information is confidential. Front-end and Back-end pricing has been separated in the report to effectively conceal the identification of respondents as well as their individual processors. Demographic volume data for each individual Front-end vendor and Back-end settlement provider was collected to allow a volume-benchmarking component for volume sensitive comparison.
For its fourth annual Benchmark Study, TSG surveyed 20 of the industry's leading acquirers, representing a total of more than tens of millions of monthly transactions. 17 independent sales organizations and 3 financial institutions participated in the 2007 Benchmark Study.
Participants had portfolios ranging from more that 6 million to fewer than 50,000 settlement transactions per month. In total, TSG gathered information from 30 separate front-end authorization portfolios and 19 back-end settlement relationships, giving each subscriber a significant number of comparative pricing data points.
The Study includes many data points supporting several conclusions regarding the changing dynamics of pricing strategies in the industry.
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