Company Helps Businesses Reduce Interchange Fees

Businesses are continually looking for ways to keep their prices down while increasing their profits. One area that hurts many businesses when it comes to their profit margin is credit card interchange fees. These fees, which are based on a percentage of the amount of the sale a business makes, may seem minor at first. After all, they are generally about 3% of the purchase. So, if a business makes a $100 sale, it still receives $97 from the purchase. These fees do add up quickly, however, and, as you can guess, businesses would be thrilled to find a way to cut these costs.

One innovative businessman has found a way to do just that. PE Systems LLC uses a special type of software to go over a business’s transactions for the past year. With this information, the software determines how the business can better categorize the purchases that are made. The credit card companies actually have 177 different categories, each of which is charged at a different rate. Therefore, if a company can find a category that charges a lower rate and is still legitimate, it can achieve a significant savings.

PE Systems LLC has found a great deal of success with its software. In fact, the company has grown quickly in the six years since it was founded. Today, it has 44 employees and over 600 clients. Those employees are doing pretty well for themselves, too, with the telephone salespeople earning a base salary of $30,000 and many earning six figure incomes when commissions are factored into the picture.

If a company is able to pay its people that well, it must be making a pretty good chunk of change. According to Tom Parrish, CEO of the company, PE Systems LLC has either doubled or tripled its income each year and expects to continue down this same path. With big name clients such as the Minnesota Twins, the Seattle Seahawks, Duke University, and the American Dental Association, it looks as if this goal should be no problem to achieve.

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This entry was posted on Saturday, May 5th, 2007 at 9:23 pm and is filed under Tips & Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.