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adding, "We use this tool to educate our partners, and to code, selling agent, physical locations, processing volumes
offer solutions that can help improve the relationship." and values, and fees paid. That data then is enhanced
with macro data, like merchant ZIP codes and inflation
The results have been impressive. Aceto said that ISOs and unemployment rates unique to those ZIP codes. In all,
who use CardConnect's churn scores are two times more Arcum adds about 50 variables to the mix, Builes said.
likely to retain a client than they would were they to use
traditional merchant retention strategies. Churn scores Builes said Arcum can identify merchants most at risk of
are not just a merchant retention tool, either. "We also use leaving in three, six or 12 months. It can even determine
them to evaluate portfolios for purchase," Stevning said. which agents are most likely to contribute to churn. But
not everyone is keen on the idea of churn models. "Many
300 different data points of the people who come to us are younger executives,"

Builes believes the future of merchant retention is Builes noted. "These people have identified a problem and
in leveraging data—internal as well as external data are willing to try something new to solve it."
points—along with predictive analytics to identify at-risk
merchants before they make any moves to leave, then "Acquirers are very slow to change; they are very slow
taking proactive steps, like personalized solutions that to innovate," Singh said. "But the industry is changing
solve their specific pain points. drastically." With the rise of connected devices and growth
in digital payments, the analytics available to acquirers
Builes identified five primary reasons why merchants and their partners only increase, Singh suggested.
leave an acquirer. They are:
As for those who ignore the power of data analytics, they
1. Economic factors, like lack of cash, in which risk getting left behind the churn curve.
case they might be a good candidate for a
merchant cash advance; Patti Murphy is senior editor at The Green Sheet and co-host of the
2. Products, such as lack of support for a Merchant Sales Podcast. Follow her on Twitter @GS_PayMaven.
particular type of payment;
3. Agent/relationship manager satisfaction;

4. Pricing; and

5. Service, such as call center reps who aren't
sufficiently responsive.
Merchant Phones in Omni-Channel Gateway.
"With the right information, you can be cross-selling a No POS. No Paper. No Dongle.
merchant before they walk out the door," said Builes.
Retention tactics can range from providing a better POS
to offering stickier programs like cash discounting; from Load APK from Gateway
adding new payment methods to helping create an online
presence. Just a simple TPN!

Builes said his analysis suggests merchants offering NFC Tap-on-Phone
payments are 5 percent less likely to leave than those Contactless & Digital Cards.
without, and that merchants with online stores are 2
percent less likely to churn. Display QR Code

Based in Atlanta, Arcum was born from work Builes did For alternative payment:
helping newspapers identify subscriber churn. When he Mobile Wallets
stumbled upon the payments industry, he said he was Buy Now Pay Later, or
Manual Entry on a Phone
struck by the rich quality of available data. Soon, he was
analyzing over 200,000 unique merchants across five Use Tender-based Pricing
different payment companies to create an algorithm that
could predict merchant churn. It took about two years Android phone acts Eliminate Merchant Fees -
like a terminal!
to research and perfect the algorithm. "This is a complex Increase Profit.
problem," he said.
T: 1-877-358-6797
When Arcum works with an ISO, it collects data on 250 E: sales@dejavoosystems.com
variables for each merchant account. This includes such ipossystems.com
data points as when the merchant account was opened, SIC

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iPOS Systems - Green Sheet-Quarter Page Ad_ToP_v2.indd 1
iPOS Systems - Green Sheet-Quarter Page Ad_ToP_v2.indd 1 2022-07-20 11:05 AM