Calculate how minor reductions equate to sales

This is an eye-opening exercise. Savings from the RFP negotiation process drop straight to the bottom line. No additional staff, resources or costs are required to make a significant difference. What does it cost you to increase your sales by 5%?

Your total annual credit card and debit card (merchant services) sales:	Enter in the total of all credit and debit card sales for a given year for all Merchant Identification Numbers (MID). This total would include all sales made with Mastercard, Visa, American Express, Discover, and JCB.	$	(i.e. 1250000.50)
Are you Retail, Ecommerce/MOTO, or Retail/Ecommerce mixed?	If all your credit and debit card sales are retail sales, select Retail. If all your credit card sales are ecommerce or MOTO (Internet sales) then select Ecommerce/MOTO. If you have a combination of both retail and ecommerce/MOTO sales then select Retail/Ecommerce Mixed.		RetailEcommerce/MOTORetail/Ecommerce
Your annual pre-tax net revenue by percentage:	Enter in your annual percentage of pre-tax revenue. Format as a percentage. (i.e.: 5.00 equals 5%).			%

Many companies don’t know that they can negotiate their merchant processing services. This “found” money can be significant.

For example, a retailer processing $25 million in credit card sales with a 3% annual pre-tax net revenue would need to generate $708,333 in additional sales to match a 5% savings in merchant processing.

Our calculator gives you the chance to walk through your own scenario by dropping in your pre-tax net revenue percentage and annual sales. Visually, you can estimate the additional sales needed to equal the savings you can realize from renegotiation of these services.

Next, think what it costs your company in time, staff, and resources to earn the equivalent in savings. Generally the conclusion is that the process to reevaluate your processing is worthwhile.

Your Results
Your annual credit and debit card sales
Your effective rate because you selected:	The effective rate is based on the selection you have made above of Retail, Ecommerce/MOTO, or mixed. If you selected Retail, your effective rate estimated to be 1.7%; Ecommerce/MOTO, 2.3%; and Mixed, 2.0%.
Below is a grid that shows you how much you need to generate in sales annually to equal a percentage in merchant account savings.
% Merchant Account Savings Additional Sales Needed 5%   10%   15%   20%   25%
For more information, Contact CSRSI.