How we helped a platform save 50 bps on interchange

February 20, 2024

Case studies

Our team just helped a SaaS platform save 50 bps on their credit card fees before that platform even finished onboarding. This is how we did it.

Rainforest Platform Success Manager, Max, could see that the SaaS platform’s Visa volume was suffering from transactional downgrades. These downgrades carry “non-qualified” interchange rates that are often 1%+ higher than standard rates and come with additional network fees, such as the 10c Visa Integrity Fee. Overall, Visa downgrades drove up the platform’s Visa passthrough rates to >3.3%.

Max determined that the downgrades were caused by the lack of zip code collection at checkout. After working with their SaaS fee billing provider, the platform enabled zip code checks on all transactions, which will lower their overall passthrough rates by 20+ bps.

Max identified a second rate optimization opportunity when he noticed the platform was collecting Data Rate II / III information, such as sales tax, but was not sending it with the transaction. Data Rate II / III transactional data applies to commercial, business, and purchasing cards and qualifies these cards types for interchange discounts between 20-90 bps. 

Since 90% of this platform’s card volume is data rate II / III eligible, the platform will save 20-30 bps overall on passthrough costs once the low code adjustments are made to their transactional data.  

This platform isn’t even live on Rainforest yet.

While the platform client completes their Rainforest implementation, they’re enjoying reduced interchange fees with their existing SaaS fee billing provider just by making low-code adjustments to their checkout and transactional data. 

As the platform client migrates volume to Rainforest, Max will continue to work with the platform to further optimize interchange rates.

This is just another example of what we mean by “white glove support”.

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