The National Grocers Association (NGA) and the Ohio Grocers Association (OGA) have partnered with Cash Flow Solutions to conduct analysis of the operational processes used to transact a payment in the grocery environment. The analysis will focus on the resources independent retailers need to accept, manage, and reconcile payments. The findings will be compiled in a white paper that will provide NGA and OGA members a better understanding of current payment procedures to identify operational efficiencies and areas of waste.
“The payment landscape for grocers is changing,” said Peter Larkin, President & CEO, NGA. “Debit card swipe fee reform is already providing saving to grocers and consumers while new payment technology is right around the corner. We believe that grocers can also increase margins by taking a hard look at the procedures used to transact and oversee payment acceptance. This analysis and subsequent white paper will lend insight into the operational trends of the industry and better prepare independent grocers for the evolution of new technology, such as mobile commerce.”
Shawn Princell, Vice President of Cash Flow Solutions, a payment processing company, will conduct the analysis through on-sight observations of store and corporate procedures. The in-depth research will evaluate all processes associated, from acceptance at the point-of-sale until the payment is reconciled into the general ledger. “Grocers are in a unique situation when it comes to payment acceptance,” said Shawn Princell. “Grocers offer the traditional payment methods while many also accept WIC, EBT, vouchers, gift cards, and for some even charge accounts. The profitability of each payment not only relies on the cost to transact, but also the resources necessary to collect and reconcile.”
“Operational efficiency is essential to every business,” said Nate Filler, President & CEO, OGA. “It’s particularly important now as new legislation, such as the Affordable Health Care Act, threatens to increase operational overhead. By studying the current procedures to transact a payment, our members can use this data to evaluate their own operations for streamlining and cost cutting.”
The findings of analysis will be documented in a white paper that will be released to members later this year.