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presentation | white paper | RU

It is widely known that Merchants pay "merchant discount" to their Acquirers. Merchant discount includes interchange fees, association dues, assessments to Visa and MasterCard network and services, brand fees, profit for the merchant service provider and a few other things. In fact, Merchant Discount is a term to refer to the collective fees that a merchant pays to process a bank-card transaction, often a percentage rate per transaction.
As soon as merchant discount is contractually fixed, it becomes a headache of the acquirer not to overpay to Visa or MasterCard issuers. It mostly means

  • To present the transactions for clearing with the most discounted IRF. Once upon a time there were only a few interchange tiers, but they've since grown to round a couple of hundred - that's why the related chip-n-stripe application called IRDoptima is widely used
  • To report the expected and factual profitability, upon receiving the settlement from the bankcard networks, on the regular per-merchant basis. Reporting the financial activities of the business is very important to maintaining control, otherwise the task of measuring the performance and profitability of the acquirer operation effectively is very difficult - that's why chip-n-stripe has developed and promoting the eProfix package

The Key Objective of our eProfix application is to help the Acquiring Profitability Control and Guidance, on the way the acquiring business should be run to avoid financial losses through errors in

  • Transaction capture process
  • Make of the presentment clearing records
  • Clearing Networks (MasterCard and Visa) central setups

Fundamental Procedures

  • Thanks to the x2x converters family, it is easy to analyze the complete outgoing acquirer traffic. The essential information for IRF and other fee calculations, taken from the clearing files, goes to the database tables, to be enriched by assigning the card product characteristics (MasterCard MPE or Visa ARDEF/BIN tables) and merchant discount rates
  • As soon as the incoming acknowledgement file arrives from the clearing network (the Financial Position Detail/1644 messages produced by GCMS and machine-readable VSS reports in a form of TC 46 records with the Report Group "V"), its x2x-parsed records are also going to the database, to be compared with the group totals made for the outgoing flow
  • 'Other fees' are collected differently from various sources: MCBS generated reports, VSS-140 (Visa Charges) Report plus operational rules and regulations for each concerned territory
  • The comparison results are published via the web-based interface, to allow the end-user control of the daily totals and aggregated monthly figures, per IRF tier, terminal and merchant

Controls Reference Guide

eProfix is not a fully packaged product, because every acquirer has its own specific and control procedures, that's why chip-n-stripe works closely with the target staff to build and maintain the personalized guide to analyze the merchant performance and trends