Payment Data Can Keep Merchants Tied to Their Processors

Moving to a new payment processor isn't as simple as signing a new contract. Many retailers find themselves 'locked in' to their current provider because that provider owns the customer payment data. If you want to switch to a cheaper lender or a better BNPL provider, you might lose all your customers' saved credit card info and recurring billing setups. This creates a massive hurdle for any business trying to lower their overhead or improve their financing options. Payment orchestration is emerging as the solution to this problem. Instead of being tied to one 'all-in-one' bank, orchestration platforms act as a middle layer. They store the sensitive payment data independently. This gives you the power to route different transactions to different lenders based on who offers the best rate or the highest approval for that specific customer. For a high-ticket retailer, this means you can swap out underperforming financing partners without forcing your repeat customers to re-enter their information. It turns payment processing from a rigid utility into a strategic tool you can optimize in real-time.

Source: PYMNTS

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