Merchants incur various fees for each transaction, including interchange fees, network fees, merchant account provider costs, and card processing fees. The cost of payment is the second greatest challenge for merchants, and the cost per transaction is a key performance indicator for many merchant segments. TAGx’s Payment Orchestration Layers can assist in reducing transaction fees indirectly by improving transaction execution.
TAGx can help minimize card scheme fees by eliminating hidden expenses like retry penalties, misuse of authorization, and zero floor fees. Merchants can use TAGx’s real-time ledger to keep track of authorizations and improve retry logic, preventing misuse of authorization and zero floor fees. TAGx-built automations can also help optimize costs.
TAGx can help avoid downgrades to the Spot and Correct interchange category by identifying potential downgrades and taking corrective action. TAGx can also reduce technical overhead expenditures by helping non-engineers develop future-proof payment flows with minimal coding requirements. Merchants can use smart routing and retries to minimize transaction costs, and TAGx can save money by reducing setup fees and eliminating additional fees for automated transaction routing. Ultimately, TAGx optimizes the payment process for scaling businesses.