“Another Boom Could Be Upon Us”: TSYS Interviews CardX CEO Jonathan Razi
“For some merchants with slimmer margins, the idea of passing along credit card processing fees to consumers is appealing, at least in theory. Interchange, the fees paid to card networks and issuing banks, has risen over time, fueled in part by a need to finance the proliferation of generous rewards programs.
Meanwhile, a few technology providers have been quietly selling software that helps acquirers enable merchants to levy fees on card transactions, while fulfilling a host of compliance rules based on jurisdictions, network brands and multitudes of interchange pricing tiers. […] Until 2013, it was against merchants’ terms of service with the card networks to pass along processing fees to the customer.
That is no longer the case, and ‘the economic value is huge,’ says Jonathan Razi, chief executive officer of CardX, which sells surcharge-compliance software to acquirers.
Razi, a Harvard Law School graduate, saw an opportunity more than six years ago after the card networks started allowing merchants to surcharge for credit cards.”