At first glance, card payments can seem uncomplicated: Money is withdrawn from the customer’s account and deposited into the merchant’s account, and the customer walks away with their product. In reality, however, card transactions are a lot more intricate and rely on a network of banks, acquirers, gateways and card schemes. And while this complicated process is not directly visible to the merchant, it does affect them in one clear way: the cost of the transaction.
Throughout the transaction process, the different parties involved all charge their own fees. All of these fees are then bundled together by the acquirer who withdraws the amount before depositing money in the merchant’s account. Since merchants don’t see the individual fees, they often lack insight into how the cost of a transaction is actually structured. This lack of transparency around what transactions actually cost is something that Bambora wants to change.
To us, transparency means that merchants should know exactly what they are paying for. But transparency is also a possibility for us to show merchants how we can lower their fees by optimizing their payments. To do that we have created advanced tools that allow us to enforce transparency and reduce costs for merchants by optimizing how transactions are handled.