Torus conducted its own webinar on e-com acquiring profitability and Interchange++ pricing pitfalls

Torus discusses strategies for European E-com Acquirers to Maximize Profitability in 2024
Vilnius, 28.11.2023
On November 27, 2023, Torus conducted its webinar in LinkedIn. Below are some key points and a link to the video.
Hans Den Adel: Main trends in European e-comm acquiring

1.The "Battle of the Rails" - there is an increase in alternative payment (non-card) methods, but the importance of card payments remains significant.
2. Merchant Service Charge (MSC) dropped after the regulation in 2015, but we are currently witnessing its growth again.
3. Visa/Mastercard costs are on the rise, undermining the impact of the Interchange Fee (IF) regulation introduced in 2015.
4. Scheme fees are highly complex, making it challenging to establish and support IC++ pricing.

Sergey Lebedev: Torus IC++ support insights

1. Is IC++ truly beneficial? There is no fixed algorithm or method for allocating Visa/Mastercard fees to transaction levels. Each acquirer determines scheme fees independently, resulting in varying charges for identical transactions with the same Interchange and acquiring markup.
2. Accurate and precise allocation of scheme fees is crucial.
3. Torus insights:
a. Calculation of transaction/volume-based scheme fees
b. Scheme fee reconciliation
c. Non-predictable scheme fee allocation
d. Support and monitoring for scheme fee compliance.

Webinar in Linkedin – November 27, 2023
About Torus:

Torus believes digital payments, cornerstone of the cashless society, will become a real data-driven business and our ambition is to be at the forefront of this wave into a better future by providing more insights through our analytics platform. This starts with providing card issuers and merchant acquirers services to decrease cost and increase revenue and control (transparency) in an unequalled way. The Torus Analytics Platform enables issuers and acquirers to analyze scheme fees, manage control unit-level profitability and optimize pricing. In addition the Torus Consulting capabilities will advise and support to unlock the potential, ranging from joint business case production, implementation to actual repricing tracks to generate the profits forecasted.