We’d heard NCR sold Jetpay to Global Payments.
If so, then this move makes total sense.
In fact, it would run contrary to everything that Global Payments stands for to NOT increase rates like an unfettered animal.
Or it could be that NCR increased the rates themselves as the test the waters on payments. Because really, even assuming the merchants even understood that their rates increased, the odds of them leaving their POS are effectively zero.
Check out this fat increase brought to our attention by Payment Authories.
Let’s give you some context.
NCR’s restaurant merchants skewed larger – more than $1M in GPV (gross processing volume) per site.
Fair payments margin for a site this size was 15-20 bps before the “free POS” bonanza (though cloud POS software is now billed at full rack rate while payments is still 3x what it should be, resulting in companies like Toast with a TCO more than 2.6x conventional pricing models).
The 35bps increase is an insane increase.
For most merchants, this move will double to triple what they’re currently paying for processing.
This isn’t like some small fee increase of a few dollars a month, but a massive push.
Our guess? NCR Payments did the math, realized Toast could charge 55 bps, looked at the NCR portfolio and saw an average rate of 20 bps and then decided to add 35 bps to get to “market parity”.
Besides this rate being way too high, does NCR actually think NCR software is anywhere close to the software Toast offers?
Toast spends so much money on R&D that they are years ahead of anything NCR has in their portfolio.
If you’re going to screw customers on payments you should at least have software that can justify something.
Buy me dinner first, bro.
By comparison the nonsense fee added by Fiserv’s Cardpoint is tame.
Clover is the only thing growing at Fiserv.
Everything else?
Fake fees to hit numbers.
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