Clearing House Estate Sales
About: Clearing House Estate Sales is an online auction marketplace, ideal for those who want to sell valuables due to liquidation, downsizing, or are in the process of re-locating. All transactions are conducted online, simplifying the process and maximizing the seller’s financial return. In comparison to traditional auctions, Clearing House Estate Sales typically generates anywhere from 30-50 percent more in revenue than in-person bidding. As a card-not-present establishment, this can result in tremendously high credit card processing fees if not caught early and evaluated properly.
Problem: Clearing House Estate Sales started operations in 2016, and since they functioned with a relatively small team, they initially sought a credit card processor that was easy to set-up, conduct transactions, and provide adequate reporting. In their first few months of business, the company was generating roughly $10,000-20,000 per month in revenue, but as the popularity of online bidding picked up, so did their business, as well as their credit card processing fees. With their initial processor, Clearing House Estate Sales was being charged approximately 3.3 percent in fees on every transaction, plus an additional thirty cents. In just a few years, the company achieved great success and grew revenue to over $300,000 per month. Though this was a great accomplishment for the company, they knew they were being taken advantage of and needed to do something about their high credit card processing fees.
Solution: Tired of being overcharged in fees for the success of their business, Clearing House Estate Sales turned to Delta Payment Solutions for an alternate credit card processing agent. Delta’s team quickly obtained all necessary financial documents, evaluated the business’ needs, and within days, found a more suitable processor with better rates, as well as better customer service. Clearing House Estate Sales’ previous processor was difficult to reach for any customer service issues, with no dedicated account manager, direct phone number or email address, and only an automated email system that typically did not result in a response for at least 2-3 business days. In addition, Clearing House Estate Sales was surprised to find that as a company making such a substantial amount of money, their former processor did not try and keep their business by countering with a more affordable rate.
Results: Not only did Delta Payment Solutions find and obtain a processor that saved them fifty percent on controllable processing fees, but in keeping the needs of Clearing House Estate sales in mind, they found a processor that could seamlessly integrate with their software—a special API created to make automatic payments for customers with the highest bid on an auctioned item. As the company continued to increase revenue each month, it became clear that they needed a system that can handle their software, essential to the workflow of processing payments. To date, Clearing House Estate Sales is saving $10,000 on every one-million dollars in transactions processed, equivalent to two full-time employees’ salaries. As the online auction industry continues to skyrocket, Delta Payment Solutions keeps tabs on the company weekly, monitoring their revenue growth, and keeping in constant communication with their current processor, ensuring that there are no problems processing their fast growth, as well as resolving any issues the moment they occur. Growing too fast, while great for the business can result in a review by the processor, leading to frozen assets or worse, immediate termination. Delta’s team stays on top of such issues, allowing Clearing House Estate Sales to focus on the business goals and less on the back-end operations.