Capping Mechanism to build sustainable merchant services to protect SMEs
Introduction
There are a lot of merchant service provider in the market from Card scheme to down the line merchant. There are more than 150 card types does fall into various domestic & international charges. At the point of sale, a merchant does not know what kind of card is being used to buy their product, meaning their profit merchant can be less because cardholder is using card which might fall into international charges categories. Merchant only does know few information about card type and brand does not know various card categories and other information. Therefore, different types of cards do have various types of rate and charges. Therefore, it would be better to impose capping mechanism on rates & charges after deducting IC++ (Including Acquirer’s Markup). Capping will be imposed for Payment facilitators, ISO, BDM and so on.
Who we are?
We are a group of people, coming from different practice area (e.g. engineers, IT specialist & academia), collaboratively working to carry out several research in various sectors (e.g. merchant services, Fintech etc, technologies, social enterprising and so on) on behalf of £Pay Research & constructionaid Professionals representing Poverty Alleviation & Human development Foundation, UK and Constructionaid UK respectively .We are collecting data from SMEs, Payment Facilitators, ISOs, and grass root level BDMs (Business Development Manager).
Our Objectives:
- To get sustainable acquire with sustainable rates, charges & sustainable online resources (e.g. Admin User Interface to watch all transactions, Merchant’s User Interface) for SMEs
- Educating SMEs (e.g. merchants) about Terminal Management System (POS, PDQ, Apps or others devices and so on) and calculation of various rates & charges in payment process.
- Help to establish sustainable relationship with all stakeholder (Acquirers, payment facilitators, ISOs, BDMs) across the payment
Mission Statement
To establish a sustainable business relationship with all stakeholders from Acquirer to merchants.
What does require to achieve this target?
- Sustainable transactional charges for merchant
- Sustainable income for all other beneficiaries (Payment Facilitators, ISO,BDM ) + Merchants
- It should be a capping mechanism or sustainable affordable cost mechanism for merchants in terms of rate & charges