May 16, 8:30 am – 2 pm – Venue: MAISON DE L’AMÉRIQUE LATINE, PARIS
What is the real cost of payment for merchants?
The cost of payment fees comes back in the limelights. The European Commission announced on April 29th a new agreement with Visa and MasterCard, about competition regulation for interchange fees.
Since 2015, the EU’s regulation has capped interchange fees and set new requirements related to transparency for Payment Service Providers. PSD 2 that came into force in January 2018, paved the way for new payment solutions, such as the payment initiation, in order to improve User eXperience and to reduce costs for merchants.
Notwithstanding these efforts, the various costs and fees charged to the merchant keep increasing. Through two panels, and a selection of innovations, this morning session will highlight the underlying trends, currently impacting negatively the profit margin of retailers, in both web and in-store sales. Those panels will bring original and valuable insights for your strategy.
1st panel: How are the costs evolving since the introduction of the interchange regulation ?
Whereas the European Commission has started its analysis of the regulation’s impact, we will draw the list of the various costs that retailers pay for accepting card payments and will check how those costs evolved over the last years.
Panelists for the first round table:
Nicolas ANCOT, CANTON-Consulting, Managing partner
Corinne BORNEFELD, Penta Hotels, Director of Finance Europe
Scott McINNES, Bird & Bird, Partner
Peter ROBINSON, Eurocommerce, Payment advisor
The pace of transformation of the structure of payment costs is increasing, sometimes in favor of, sometimes to the detriment of merchants. After a presentation by CANTON of the learning of the in-depth analysis of several real business cases in several European countries, aimed at merchant costs optimization, we will dress the inventory of the existing protecting measures in Europe and will analyse the impact of the 2013 Payment package, in particular the Regulation 2015/751 and the prohibition of circumvention that it entails.
Testimonies from Merchants and PSPs will complement this first sequence dedicated to understanding the trends that are strengthening and are calling for a close watch by Merchants, in front of transformations which are silently prevailing or coming up soon, like the obligation of strong authentication and corresponding liability shift, as well as proven threats: corporate credit card costs, the growth of cash-back, adoption of apps substituting cards.
2nd panel: What can retailers do to protect themselves ?
From understanding towards action: which are the measures and strategies of potential mitigation ? Under which constraints and limits ?
How to filter cards with pervading predator fees ? Or to surcharge back the excessive fees ?
Panelists for the second round table:
Michel COTTET, Treasurer of the French Confédération des chocolatiers et des confiseurs
Peter T. DUNN, PT Dunn & Company, expert for Mastercard
Peter ROBINSON, Eurocommerce, Payment advisor
Jean-Yves ROSSI, Canton-Consulting, CEO & Partner
How to reduce the cost of fraud, without compromising conversion rates ? How to be prepared for strong authentication ? How to protect purchase related data ? What is going to be the impact of the innovative Web Payment API announced beginning of April ?
Peter T. Dunn has been a long term counsel for Mastercard and recently participated to the last discussions with the EU. He will be able to enlighten the schemes’ perspective, in presenting a recent study called Illustrating the Value Provided by Electronic Payment Products to European Merchants.
A range of measures is available to retailers in order to reduce those costs, which hit directly their margin. We will comment some on-going initiatives, implementation difficulties but also huge benefits.
Third part : Ultimate selection of innovations
Discover through the practical experience of some pioneering stakeholders such as PSPs, Fintech, Merchants, … how new tools and solutions can help understand and contain such nasty trends.
Through a selection of innovations, find your best response to make payments easier, safer, cheaper!
AllForOne: Android POS as the real game changer for retailers.
Intech: Blockchain is a perfect instrument for payments in the realm of a consortium ecosystem.
CANTON-Consulting: Paymentics IQ, a tool to screen card transaction costs and a service to optimize them.
Ending this enjoyable morning, the final buffet will facilitate open discussions and networking.
Managing Partner, Canton-Consulting
Director of Finance Europe, Penta Hotels
Payments Director, AllForOne
Payment advisor, EUROCOMMERCE
Treasurer, Confédération Chocolatiers & Confiseurs
Partner, Bird & Bird
Peter T Dunn
PT Dunn & Company