Of the hundreds of companies from all over the world that were nominated to participate in the Thomson Reuters Global RegTech Startup Competition for early stage start-ups in the legal, tax, and regulatory space, SurchX, the industry leader in compliant dynamic surcharging, came out on top as the decisive winner.
The competition showcased a variety of innovative solutions intended to help lawyers, tax professionals, corporations, and government bodies address challenges across the regulation value chain—from understanding proposed rules and assessing their impact to compliance issues.
As the winning start-up, SurchX received a cash prize, AWS credits totaling up to $100,000, and the opportunity to partner with Thomson Reuters, as well as the opportunity to be considered for a direct investment from Thomson Reuters.
SurchX is an agnostic dynamic surcharging solution that accurately calculates the surcharge based on card type and jurisdiction. During checkout, SurchX instantly identifies the payment card in use, what the resulting fee for that card will be to the merchant, and how much the merchant can legally recoup by passing that total on to the customer. The fee is then added to the customer’s total purchase price as an additional line item labeled “Transaction Fee”.
Having executed thousands of surcharges on transactions already in 17 different verticals, SurchX has accumulated data that proves there is no material impact on consumer behavior or buying patterns when presented with a transaction fee.
With climbing credit card processing fees averaging over 3% per transaction and an increasing number of credit card options for consumers, card-not-present merchants are often forced to choose between staying competitive and raising prices to cover the costs of processing credit cards. SurchX returns control to U.S. ecommerce merchants, enabling them to lower their cost per transaction without impacting conversion rates, sacrificing service, or falling out of compliance and risking hefty fines or other penalties or even lose their ability to accept credit cards.
For businesses with tight margins, savings from SurchX can increase a business’ net margin by 30% or more. Prior to SurchX, there was no easy way for companies to recover losses from credit card processing fees and be assured of compliance with the 60-plus jurisdictions that govern surcharging in the United States.
“Our promise is to take the compliance risk out of surcharging,” said Robert Maynard, founder of SurchX. “Our positive reception from enterprise and mid-market merchants makes this a natural integration environment for us. We’re proud to bring the power of SurchX to online merchants–helping them turn customer interactions into opportunities to improve margins.”
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