Current Challenge Facing our Franchisees
We at Mosquito Squad recognize that payment processing fees have become a large income statement line for our franchisees. Since this issue has been brought to our attention, we have been working with Authority Brands to help ease some of that burden for you.
Rising Transactions Per Customer
Increased number of payment plans including pay-per-treatment have risen. The number of transactions per customer have risen from about 2.1 in 2018 to about 4.5 in 2022, or from $6.33 per customer to $14.99 per customer.
With the rising number of transactions per customer comes an increase in per transaction fees for credit card payments.
Payments Landscape
With the rise of interchange costs, the average merchant processing fee, or effective rate, for card not present transactions is between 2.75 and 3.5%. As a result, many processors add additional fees for processing such as monthly fees, PCI fees, settlement fees, etc. These additional fees are an added stress to merchants that are trying to stay competitive in their respective markets. Authority Brands is aware of this struggle and made an investment to develop a merchant processing platform to ensure our Franchisees have a stable, secure, efficient, and cost-effective solution for their merchant processing needs. Enter AB Payments. We have worked with our brands respective software platforms to enable unique and customized experiences for each of our brands.
AB Payments
Authority Brands recognizes the challenges the current market is posing on businesses from soaring prices to longer customer payment cycles. We have been closely monitoring the situation and have created AB Payments as a way to assist our franchisees.
Authority Brands Payments offers services to our brands to ensure our owners have the tools, technology, and education needed in order to process transactions in a compliant manner. This includes traditional payments, discounts, and surcharging.
Introducing Skeeter Pay
Skeeter Pay, a branch of AB Payments, was developed to be your payment processor and help your business navigate payment processing, surcharges, and other payment issues. Skeeter Pay is developing multiple options for your business that will assist with reducing costs for yourself and your consumers, while still providing them with flexible payment options.
- Surcharging -Skeeter Pay is tackling the fee issue directly. We offer compliant surcharging, or no cost to merchant processing. It works like this:
If you have a sale totaling $100, the consumer would be charged $103, assuming a 3% fee. AB Payments retains the fee and regulatory responsibilities and remits $100 to the Merchant, or you the franchise owner. We will help to ease the fee burden for your business, while still getting you paid quickly.
Please Note – You may receive questions from your consumers regarding the surcharge fees. These fees are common practice within the home services industries.
- No Additional Fee Rates - Skeeter Pay offers standard processing though Service Minder and is continuing to work with technology partners to find cost appropriate solutions. Your Skeeter Pay merchant account will have a flat rate with no additional fees.
Please Note: Account updates is an add on feature with a per update fee.
- ACH and Alternative Payments - Skeeter Pay also offers ACH processing and check conversion, which helps reduce cost and fees.
Service Minder Integration
Skeeter Pay will be fully integrated within Service Minder. Skeeter Pay can accept credit, debit, and ACH payment methods, as well as several alternative payment functions. This integration will help your business handle the surcharges correctly for ACH, debit, and credit cards as we have rules that must be followed for this service.
AB Payments will continue to work with Service Minder to add functionality for your payment needs throughout the coming months.
Practical Solutions for 2023
Authority Brands is very excited to launch Skeeter Pay at the close of the 2022 season.
We will be working with our franchisees to transition your business to Skeeter Pay as your payment processor and to determine the most effective payment experience for your location.
AB Payments will also be working with Service Minder to optimize your payment experience. We will be adding additional discount options and cash and/or check payments could be discounted regardless of the Payment Option or Coupon Code.
Pricing on pay-per-treatment and other payment plans can be adjusted to acknowledge the increased financing expense. We will work directly with each franchise to determine what pricing adjustments should be made to help minimize any financial impacts created by these fees.
By adjusting your pricing, you will help to offset any credit card fees. You can also offer discounts as appropriate for cash and/or check payments.