A Major DSO Trims Payments Costs Through Merchant Account Consolidation
Recently, Verisave completed a merchant account optimization project for a major Dental Support Organization (DSO), netting a substantial reduction in cost, by coordinating merchant account setups across all practices.
A DSO is a backoffice organization that provides dental practices with administrative services, such as a centralized finance team, or marketing, so that each practice can focus on caring for patients.
Performing administrative functions for more than 80 dental practices, the client had a challenging task at hand: optimizing credit processing fees across all its separate merchant accounts.
The challenge:
Managing 80+ merchant account, with the various processing vendors, systems, and distinct fee structures involved, is understandably an administrative tangle with a high cost in both work hours from the finance team, and in processing fees that were not calculating correctly.
But to consolidate down to one or two processing vendors is also a complicated endeavor. Processors are known for having their own way of quoting rates, and to compare one to another and find the best option from the vendor pool is no simple task. Especially considering the level of expertise needed to make sense of merchant statements from multiple vendors, in multiple formats, and with varied pricing models. It’s the kind of expertise most finance teams don’t have in house, and the kind of project almost no finance team has time to undertake.
Recognizing this, the client enlisted Verisave to audit the merchant accounts of each practice, and determine not only the best rates, but also evaluate the operational advantages and disadvantages at play.
What are we paying? How do we read pricing reports? How do we track any improvements when there are so many rates and transaction types across so many locations?
The solution:
The goal of the project was two-fold: a cost savings was paramount, but the DSO also needed to ease the administrative burden.
After analyzing merchant statements from each practice and comparing this data against industry benchmarks, and after compiling known factors and programs related to each processor, Verisave identified the best processing scenario. The types of transactions common to dental practices, and types of cards being used, played a factor as well.
In the end it became obvious that no single processor could adequately be set up optimally for the client’s needs, due to various integrations with their other accounting systems that needed to work well across the board. But Verisave was able to pinpoint two processing vendors that could cover that ground well and at a substantial cost savings.
The DSO also contracted with Verisave to implement the move from many processors, down to the right two, so that Verisave’s team could ensure the right setup and rates were put into place during the transition.
The estimated cost savings for this DSO client totaled over $42k per month.
In addition, Verisave provides valuable reporting to the client DSO’s finance team, allowing them to more easily make strategic decisions, understand their customer base’s payment habits (types of cards used, transaction sizes, etc), and predict costs.
Quick Facts: DSO Payments Cost Reduction
- Beginning Overall Effective Rate: 3.32%
(Overall Effective Rate is the percentage of a transaction total that gets charged as a processing fee) - Target Overall Effective Rate: 1.97%
- Account Areas Affected: 9
- Total Monthly Cost Reduction: $42,000
If your business is looking to better manage your merchant account or reduce fees, we’re here to help. We fix and monitor your existing merchant account, and we bring that money back to you. No need to change processors or add a project to your team’s already hectic workload. Schedule a consultation today.
Verisave is a third-party cost-reduction firm specializing in merchant accounts and credit card processing fees.
Verisave is not a payment processor, and is not affiliated with any processors, card brands, or banks.
Verisave has more than 20 years of experience optimizing and monitoring the credit card processing industry.