I am calling out a terminology change – I’m Talking About Fee Value!
I’m hearing from merchants these days that they are doubling down on fee reduction and in some cases it helps greatly – but not always. Time to think about Fee VALUE.
There are two sides to Fee Value.
1. You are paying for additional services from the Card Brands – Data, Insights, Validations, and more. Are you receiving that information? Accurately? Timely? Thoroughly?
2. Vendors charge fees. That is good! Merchants are looking at the price tag and getting antsy. Assessing the value in conjunction with the expense creates a more balanced approach to expense management.
Fees exist in all your services for a reason – be they internal or external. Taking a moment to define the reason for each fee and its related service could support your cuts – or cause you to reconsider your decision.
To be clear, the term is ‘Evaluating Expenses’ and that means to fully define the imbedded ‘Value’ for each and every line item! It’s all a piece of your expense puzzle, but are you seeing the full picture?
Don’t have time to fully evaluate? We’re Payment Operations Group, LLC.
Popping up again…Musings of an Over-Caffeinated Professional
