27 Nov Case Study: How One Home Services Company Reduced Processing Costs and Lowered Risk by 36%
When a home services company was referred to us, they weren’t looking to switch payment processors. In fact, they were quite happy with what they had and simply wanted confirmation that everything was in order. Fair enough. We started the way we always do, with confidentiality. After signing an NDA, we completed a full audit of the past 12 months of their processing statements.
What we discovered told a very different story.
What We Found
Even though the business had access to a group rate that looked reasonable on the surface, several issues were costing them far more than they realized:
1. Their rate was good, but not great
With a few tweaks, it could be brought down further.
2. Remote payments were being handled in risky ways
Their field representatives were often taking payments on the road. Instead of processing them on the spot, they were either:
• writing customer card information down to enter later, or
• calling the details in to be keyed manually at the office.
Both options increased risk and carried higher processing fees.
3. A personal guarantee was buried in the original agreement
The owner had unknowingly taken on personal liability when they first signed up with their provider. This is something we always look for and often work to eliminate.
What We Did
Our goal wasn’t to replace their current processor. It was to ensure they weren’t overpaying or exposed to unnecessary risk. Here’s what changed:
1. Negotiated better rates
We worked directly with their processor and secured a reduction that delivered an estimated 10% savings on fees.
2. Removed the personal guarantee
The new application was structured so the owner was no longer personally on the hook. A small detail with major long-term implications.
3. Implemented secure remote payment tools
We set them up with Bluetooth pin pads so field reps could process payments properly. No more recording card numbers or manual keying.
This single change had the biggest financial impact:
Interac transactions
• New cost: $0.06–$0.095
• Previous cost: ~2.15%
Savings on a $100 transaction: $2.06
Credit card chip-and-pin transactions
• New average rate: ~1.20%
• Previous rate: ~2.15%
Savings on a $100 transaction: $0.95
When you multiply that across their reps, their stops, and their daily volume, the numbers add up quickly.
The Results
With these combined improvements, the company now saves just over 36% every month on their processing costs.
Even more importantly, they’ve reduced their exposure to risk. No more handwritten card numbers, no more phone-in payments, no more unnecessary liability.
Conclusion
While their original rates weren’t out of line with the market, true savings often come from the full picture, not just the percentages on a statement.
By reducing fees, switching how payments were taken, and eliminating risky practices, this home services company now enjoys safer processes, better protection, and meaningful monthly savings.
A reminder that sometimes the biggest wins come from improving what you already have, not replacing it.