Earlier this year, FIS announced the acquisition of merchant processor Vantiv-Worldpay. This comes on the heels of Fiserv’s acquisition of First Data, another merchant processor. The acquisition of these two processing giants has been big news in the payments space. But what does it mean for merchants across the United States? The results are mixed.

On one hand, the acquisition of these processors by financial services institutions has the potential to provide better solutions and efficiencies for merchants. The combination of payment processing and financial technology solutions can improve data flow and accounting processes for merchants. It can also limit the number of service providers that they have to partner with, allowing for more streamlined operations.

However, the accumulation of service providers can also have a monopolizing effect on merchants. As processes and services are consolidated under fewer companies, merchants can see costs rise as they have less flexibility and leverage in optimizing their rates. Therefore, while services might be increasingly consolidated with one company, the cost of those services will increase, minimizing the benefit of using a single provider. In addition, most of these companies, such as FIS and Fiserv, have intimate relationships with large financial institutions like banks and lenders. This allows private merchant data to be accessed by these financial organizations in a way that can prey on merchants and breach the trust of private companies. The consolidation and acquisition of merchant processors has its perks, but merchants must be sure to mitigate the negatives while they reap the benefits. Scopifi has years of experience working with merchants to minimize processing costs, even when merchants are processing with large processors or processors with expansive services and solutions. If you’re wondering if you’re overpaying, attach your statement and provide your information below and one of our payment industry experts will be in touch with our intensive, 11-part audit and to let you know how Scopifi can save you money every month.

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