Changes in the EU legislation which would see the cost per transaction capped were announced to take effect on 1st January 2015, however, to allow the Client to benefit from the forthcoming legislative changes the contract and commercial model needed to be aligned to an Interchange + + compatible structure.
For a multi-national client to review the service of receiving payment via credit and debit cards.
To assess the costs attributed to transactions and the service options available, targeting savings and performance improvements and ensuring solutions are future proofed against upcoming legislation.DOWNLOAD CASE STUDY
With the contract approaching the end of the original initial term, the opportunity was taken to conduct a competitive process to align the commercial structure to the new legislative requirements and ensure value was being sought from the suppliers.
The proposed solution presented by Hawtrey Dene was agreed by the Client as fully meeting their evaluation criteria and providing a saving which far surpassed expectations with the added benefit of maintaining their current relationship with their incumbent provider.
Hawtrey Dene negotiated the new contractual terms which saw the Client move onto an Interchange ++ compatible pricing structure and ensure benefits from the forthcoming legislative changes were adopted when available.
- The project delivered a first year saving of 10% against prior year spend through re-negotiated transaction fees.
- A further second year saving of 8% will be delivered from aligning the current contracts to fit with the new legislation changes.
- The Client maintained their relationships and improved ways of working with their incumbent suppliers whilst mitigating any costs of change associated with moving service providers.
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