We recently worked with a large auto dealership and as a result of our review we realized that they were spending far more on their credit card fees than was reasonable. The surprising fact is that this organization was reviewing their charges on an annual basis but their process was flawed.

They would send out for bids, then take the lowest bid and go back to their current processor and tell them they would leave if they did not match the lower rate. They had done this for several years as they were always able to find a processor that would give them a lower rate.

This process usually gave them a 2% to 3% reduction in their rates. Our analysis of their rates produced a nearly 50% reduction in cost, resulting in over a $200,000 annual savings. This organization became a believer in how important vendor industry knowledge is in controlling expense cost.