Why Hiring a Payment Consultant Saves You Money—Even with Revenue Sharing

Why Hiring a Payment Consultant Saves You Money—Even with Revenue Sharing

When setting up credit card processing, many business owners assume that working directly with an acquiring bank is the most cost-effective approach. However, the reality is far more complex. The right payment consultant can significantly reduce your costs, streamline operations, and improve transaction success rates—even though they earn a revenue share from the acquiring bank.

But how does this work? And why does it still save you money? Let’s break it down.

Understanding Payment Consultant Revenue Sharing

Most payment consultants operate on a revenue-sharing model with acquiring banks. This means that instead of charging merchants a direct fee for their services, they receive a small percentage of the processing volume from the bank or payment provider.

At first glance, this might make business owners skeptical. Why pay a consultant when you could go directly to the bank? The answer lies in the savings they create for your business.

Here’s why:

• Lower Rates Through Negotiation: Payment consultants use their expertise and industry connections to negotiate far better transaction fees than what a business would get on its own.
• Fee Reduction & Transparency: They identify hidden costs and ensure you are on the most favorable pricing model (such as interchange-plus pricing instead of blended pricing).
• Strategic Routing of Transactions: They optimize payment routing, reducing unnecessary fees and increasing transaction approval rates.
• Chargeback & Fraud Prevention: By minimizing chargebacks and fraudulent transactions, businesses avoid penalties and lost revenue.

The bottom line? Even after the consultant’s revenue share, businesses still pay less than they would on their own.

Why Going Direct to an Acquiring Bank Can Be More Expensive

Many merchants believe cutting out the “middleman” (a payment consultant) will save them money. However, acquiring banks do not proactively help merchants reduce costs—they simply provide the service at standard rates.

Here’s where businesses lose money when dealing directly with a bank:

❌ Higher Processing Fees – Acquiring banks typically offer non-negotiated, one-size-fits-all rates, which are rarely optimized for a merchant’s specific needs.

❌ Hidden Fees – Many banks include additional costs for services like PCI compliance, refunds, international transactions, and chargeback processing.

❌ Lack of Chargeback & Fraud Support – Without proper risk management, businesses face increased chargebacks, leading to additional penalties and even account termination.

❌ Limited Flexibility – Banks may push merchants into long-term contracts with restrictive terms, making it harder to adapt as the business grows.

A payment consultant prevents these issues while securing better rates and services—even when earning a revenue share.

Key Ways a Payment Consultant Saves You Money

1. Lower Transaction Fees (Despite Revenue Sharing)

A payment consultant negotiates directly with acquiring banks on your behalf. They leverage their industry relationships to secure lower rates that businesses cannot access alone.

✅ Example:

• A business going directly to a bank might receive a standard processing rate of 2.9% + $0.30 per transaction.
• A consultant negotiates a lower rate of 2.2% + $0.15, even after their revenue share.
• Net savings: Thousands of dollars annually.

2. Optimized Payment Routing = Higher Approval Rates

Not all transactions are processed the same way. Payment consultants set up smart transaction routing, ensuring payments are processed through the most cost-effective and high-approval pathways.

✅ Result:

• Fewer declined transactions = More revenue retained.
• Lower cross-border and interchange fees.

3. Chargeback & Fraud Prevention = Reduced Costs

Chargebacks are a costly problem for businesses, leading to lost revenue and potential account restrictions.

A consultant helps by:

✅ Implementing fraud detection tools to prevent disputes before they happen.

✅ Setting up chargeback alerts to resolve disputes before they turn into chargebacks.

✅ Providing expert strategies to win chargeback disputes, saving money on refunds and penalties.

4. Tailored Solutions = No Overpaying for Unnecessary Services

Banks often bundle services that may not be relevant to a business, leading to unnecessary costs. A consultant tailors solutions to:

✅ Ensure you only pay for essential services.

✅ Integrate cost-saving tools like automatic card updates for recurring payments.

✅ Reduce international processing costs for global businesses.

5. Ongoing Monitoring & Rate Reviews

A consultant continuously monitors your processing costs and renegotiates rates as your business grows. Banks, on the other hand, rarely offer rate reviews unless requested—and even then, they prioritize their own profits over merchant savings.

So, Is Hiring a Payment Consultant Worth It?

✅ Yes—because even with revenue sharing, your overall costs are lower.

A good payment consultant:

✔ Lowers your transaction fees beyond what you could get alone.

✔ Eliminates unnecessary fees and optimizes your payment setup.

✔ Prevents chargebacks and fraud, protecting your revenue.

✔ Provides expert support, ensuring long-term savings and scalability.

While they do receive a share of the processing volume, their success depends on your savings and growth—aligning their interests with yours.

Save More with GlobalPayGate

At GlobalPayGate, we help businesses optimize their payment processing strategy, ensuring they get the lowest rates, best acquiring bank, and strongest fraud protection—without the headaches.

💳 Want to lower your processing costs and maximize your revenue?

📞 Contact us today and let’s find the best solution for your business.

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