Segment: Processor | Category: Benchmarking | Owner: Straive Strategic Analytics | Year: 2024
Identify interchange downgrade patterns costing the processor's merchants basis points of margin, and simulate the GMV impact of qualification improvements.
- Interchange waterfall — map each transaction to actual vs optimal rate tier
- Downgrade root-cause: missing L2/L3 data, late settlement, missing AVS, no 3DS
- Network fee benchmarking vs published rates and peer processors
- Routing optimisation: least-cost routing for dual-network debit
- Intervention ROI sizing
| Issue | Downgrade Rate | Estimated Annual Cost |
|---|---|---|
| Missing Level 2 Data | 12.4% of B2B txns | $2.1M |
| Late Settlement (>2 days) | 3.8% | $0.8M |
| CNP without 3DS | 6.2% | $1.4M |
| Total Opportunity | — | ~$4.3M |