Welcome to another in the series on “the stuff processors do daily”.
Today we have CardConnect, the gateway Fiserv acquired.
They decided to add a $285 annual fee to their merchants starting in November of this year.
Fiserv touts this as a “Security Bundle” and automatically opts-in CardConnect merchants.
And since it’s so uber imperative to be secure, CardConnect then lets ISOs know they can opt their merchants out.
Huh?
That’s right: the future of the country world human species is on the line so Fiserv is single-handedly investing quadrillions in R&D to fight evil doers and space invaders with its super-sophisticated, cutting edge technology from 10,000 years in the future.
What does this Security Bundle do?
Literally anything a normal payment processor can do.
Oh.
So why the $285 for tablestakes?
Because you’re public and you’re losing market share to embedded payments and newer payments companies like Stripe and Adyen.
And when your only growth vector that has been Clover is reaching saturation, you just juice more from existing merchants.
This kind of savant-level decision making is worth at least… $100M a year in someone’s compensation.
Anything less is practically robbery.
It takes a special kind of genius to pull this off.
Good work, team.
PS, courtesy of Payment Authorities, we get this additional 10bps increase in credit and 5bps in debit from Card Connect.
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