At today’s market there are several approaches, allowing large-size merchants, merchant service providers and payment service providers save on merchant services fees. A merchant can try to get closer to the card processing network, avoiding all the intermediaries along the “food chain”. Otherwise, each of these intermediaries will try to get some share of the merchant services fees and add respective surcharges. A PSP or MSP can take care of the underwriting and merchant funding, delegating only processing function to the processor. Although this approach makes the PSP assume more risk, it also gives the PSP more control over the process.
More information on how large-size merchants and payment service providers can save on merchant services fees can be found on #Paylosophy.