Save, Simplify, Succeed is the essence of our brand promise. Success stories demonstrate our commitment to consistently deliver on our promise. Vizant has the talent, technology, and process skills to drive measurable and sustainable results in a complex and evolving treasury landscape. The following success stories and testimonials set the bar high for what you can expect from our client advisory team. Reach out to us today to begin the process of developing your success story.
Oil and Water Don’t Mix, but Oil and Savings Do.
SITUATION: Our client is the world leader in the production and sales of pure essential oils. The company has recently surpassed the $1 billion annual threshold and operates in 17 global markets. The company reaches its customers through a combination of online and member driven sales channels. Sales continue to grow at an accelerated pace which is attributed to the quality of its offerings and investments in innovation.
The client was aware of the potential for savings in its payment card acceptance rates and fees. They were in the process of negotiating with their current processor to find ways to reduce fees per transaction and total annual processing costs. At the request of the client, the payment card processing company delivered a proposal that outlined reductions that they were willing to concede. Adding to the challenge, the client didn’t want to conduct a full provider selection process. They wanted to stay with their current processor.
Early into our conversations, we were able to provide insight, direction and advice to key Finance and Treasury Leaders. These value-added conversations established a level of trust between Vizant and the client. As a result, the client provided insight into the processor’s proposal and recommendations for savings. The proposed savings became the new baseline for our analysis and recommendations. We worked behind the scenes to conduct the analysis, prepare the client, and level the playing field for processor negotiations.
The team applied current and proposed acceptance rates, fees and rules to our extensive benchmark database to uncover additional opportunities for savings and process improvements. Vizant set the fee and billing structure, not from original rate and fee levels, but from the proposed new baseline offered by the payment card processor. As a result of our efforts, the client was able to achieve an additional 60% reduction in processor mark-ups and realize a high six-figure signing bonus. Finally, by aligning the client’s payment strategy across all providers, we were able to deliver a 9% reduction in overall interchange related costs.
The savings are as sweet as candy
SITUATION: Our client, an international candy maker and distributor, sells through a combination of retail stores and a manufacturing distribution channel. The retail stores operate in a card present, business to consumer (B2C) environment and the manufacturing distribution channel operates in a card not present, business to business (B2B) environment. The combined operations generate over 50,000 transactions and $43 million revenue annually.
The client’s environment consisted of multiple merchant processors and a variety of fee and pricing structures. The manufacturing distribution business was not efficient in processing payments from distributors and the retail stores were being charged a premium for merchant fees. An additional business challenge included the high costs of receiving payments from distributors – many with 6 figure invoice totals.
The client partnered with Vizant to assess both their retail stores and manufacturing distribution business. We initially performed an in-depth analysis of the client’s current payments processing environment. Next, we presented solutions to reduce the costs associated with interchange fees, card network fees and transaction pricing across both B2C and B2B environments. Finally, we implemented monthly monitoring to ensure price negotiations remain in place, billing errors are identified and additional add-on fees are eliminated.
By partnering with Vizant, our client was able to realize significant reductions in the costs associated with processing payment card transactions. The client realized an average of 10% cost reduction per transaction for large ticket inbound commercial card payments. Also, a strategy was implemented to improve the client’s interchange qualification position.
Online retailer improves financial fitness
SITUATION: Our client is an international web-based provider of fitness products, nutritional supplements and digital content. The company sells direct to consumers and conducts over 14 million online transactions per year with over $900 million in annual revenue.
Approximately 99% of the client’s sales occur online in card not present transactions, which results in higher transaction fees. The web-based, subscription nature of business causes a high number of charge backs for the client. The client felt that the fees and structure of its merchant services agreement was obscure and its pricing was not competitive.
We initially performed an in-depth analysis of the client’s current payments processing environment and presented solutions to reduce the costs associated with interchange fees, card network fees and transaction pricing. As the partnership evolved, Vizant worked with the client to implement a process to optimize the entire payment environment and improve business model alignment. Additionally, the process improvements delivered significant interchange cost reductions.
The partnership with Vizant delivered significant savings for our client. They realized a 62% reduction in transactional costs. We continually monitor critical KPIs across all merchant ids (MIDs) and compare transaction volume, type, fees and effective rate against our industry benchmarks to sustain results.
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Sample Clients and Industries