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Offshoring

“Worldpay help operators save up to 65% on interchange fees through optimisation techniques.”
In October 2014, card scheme fee amendments dramatically increased UK domiciled merchant costs. So since these changes have been in place, we have been working closely with our gambling customers to proactively find ways to reduce interchange fees and to minimise the effects of scheme fee rules changes.
 
We have a dedicated optimisation team who are able to undertake detailed analysis of transaction routing, identifying costs savings for our customers. As such we have been able to make recommendations to a number of UK domiciled operators, offshoring their domestic card processing to an “Intra” region country (such as Malta) where they hold a legal entity. The reason for this is that “Intra” Interchange rates are lower than UK domestic in a number of instances and therefore using an entity based in the Intra region enables a merchant to qualify for lower rates. 
 
We have helped operators to increase these savings further by taking advantage of the local caps that each regulator will apply. This requires operators to route transactions by value in order to avoid high fees in uncapped markets. There are a number of different factors that merchants must take into consideration (such as ATV) before offshoring, but this is where we use our experience and expertise to guide you through the process. In some instances we have been able to help operators save up to 65% on their interchange fees.
 
We recognise that every operator is unique and the savings will vary depending upon the transaction mix but we work with you to identify whether this is suitable option for your transaction profile and then analyse any potential savings.

Owen Tustin, Senior Relationship Manager, Worldpay