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TSG Press
Apr 2016

The Strawhecker Group Celebrates Ten Year Milestone

“I wanted to own my own business, and I saw a need in the market,” said Kurt Strawhecker, Founder and Partner at The Strawhecker Group (TSG). This was in 2006, when he and Jamie Savant launched TSG, a consulting firm focused on the global payments industry. Ten years later, their business has grown and the industry has evolved, however their core principles have remained the same.

“Being a boutique consulting firm with such a specific offering provides us, and in turn our clients, an advantage,” said Jamie Savant, Co-Founder and Partner. “Our team is made up of payments experts averaging over 20 years of experience, so we are more efficient and higher value than a big five consulting firm, because we have seen so much of it before.”

TSG Turns Ten: 10 Quick Facts

1. TSG has completed thousands of projects for over 550 companies, from fintech startups to Fortune 500 companies

2. The average TSG Associate has 23 years of payments industry experience

3. TSG has advised on 27 successful acquisitions and investment transactions

4. TSG has completed over 170 financial valuations of payments companies

5. Clients of TSG have often experienced ROIs on their TSG consulting investment of over 50:1

6. TSG was honored as Business Partner of the Year by the Electronic Transactions Association in 2010

7. TSG’s unique analytics data warehouse contains over 3.5 million merchants representing more than 40% of all merchants in the US processing nearly $1 Trillion in annualized credit and debit card volume

8. TSG often speaks on industry trends and has been quoted recently in national media, such as: The New York Times, The Wall Street Journal, USA Today, Yahoo! Finance, CNBC, and Forbes

9. TSG has produced over 150 payments industry specific eReports (whitepapers) and analyses

10. NewsFilter, TSG’s weekly payments industry digest, celebrated its 500th edition this month and was distributed to over 40,000 Fintech professionals

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TSG Analysis
Apr 2016

Chargeback Uptick in the SMB Market

Some payments companies have been mentioning increases in chargebacks since October 1st. This appears to be true, according to The Strawhecker Group's merchant level database of more than 3.5 million card accepting merchants. The charts illustrate that there were increases in chargeback rates in the SMB market for both transactions and dollar volume throughout much of 2015 with the greatest acceleration occurring in Q4 2015.

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TSG Press
Apr 2016

Press Round-Up: EMV Merchant Adoption Slower Than Expected [Updated]

TSG recently released survey results that estimate 37 percent of U.S. merchant locations are EMV-ready four months after the October 1st, 2015 liability shift. See below for a round-up of media coverage from digital and print publications:

TSG Press
Apr 2016

Using Chip Versus Swiping With Credit Cards - WTSP TV

Months after a credit card industry deadline for retailers to help keep your financial data safer, research is showing many stores haven't updated their credit card readers.

“Our survey is showing only around a third of retailers have made the transition,” said Jared Drieling
Business Intelligence Manager for consulting firm The Strawhecker Group.

A credit card industry deadline of Oct. 1 to begin using the new EMV chip-enabled credit cards shifted liability for credit card fraud from the banks to the retailers.  Still many large and small retailers are still swiping their credit card transactions.  The result, is confusion for shoppers whether to swipe or “dip” their card and millions of transactions at a higher risk for fraud.

Watch the video

TSG Press
Apr 2016

The Strawhecker Group's 500th Edition of NewsFilter

It is hard to believe TSG has been publishing NewsFilter for over 9 years. Over those 500 weeks we have shared over 15,000 articles related to the ever-changing Payments Industry. From interchange to consolidation, data breaches to EMV, and mobile payments to bitcoin, the industry continues to evolve...as does TSG's NewsFilter. To celebrate our 500th edition, we have revamped NewsFilter to deliver a more modern, crisp, reading experience. In addition, NewsFilter is now more mobile-friendly than ever. Enjoy!

Subscribers: You are the reason we have reached this milestone! Thank you for your continued support, feedback, accolades, and readership. We will continue to evolve with the industry and provide you with the most relevant content to help you succeed in the Payments Industry.

Check out this week's edition.

TSG Analysis
Apr 2016

TSG Mini Report: Average Life of Merchants Processed by 3rd Party Processors

Q: How long do merchants live that are processed on 3rd party processing platforms?  And of these, which merchant types live the longest?

A: TSG completed an analysis utilizing its merchant database of 3.3 million merchants to answer this question. Check it out here.

Assumptions & Definitions:

  • The analyzed dataset included
    • Merchants sold by ISOs that utilize 3rd party processors (as opposed to having “in-house” platforms)
    • Merchants that had between $500 - $500,000 annual volume (the ISO “sweet spot”)
    • Time period: 2012 – 2015
    • Average life = First month of revenue ISO to last month of revenue to ISO

TSG Analysis
Apr 2016

Now Available - Payments Industry Brief: Size Indicators of the Electronic Payments Industry

This report offers a high-level look at the revenues and volumes of the major sub-markets within the electronic payments industry.The report includes sections on the Payments Industry size by revenue, volume, and concentration.

TSG completed these estimates by using a variety of sources and methods including revenue metrics from TSG's AIM data warehouse, TSG industry records and research, annual reports, data aggregation sources, and TSG Associate knowledge and analysis.

Check it out.

TSG Press
Mar 2016

TSG in Yahoo! Finance - The Real Reason Why Some Stores Still Don't Take Chip Credit Cards

The deadline for retailers to change to the chip-enabled payment systems was last October when U.S. credit card companies, including Visa and MasterCard, announced new liability rules. This meant that businesses had to switch over to the new technology or take responsibility for any costs incurred in the event of fraudulent transactions.

Chip cards use EMV technology (which stands for Europay, Mastercard, Visa), and are more secure than traditional swipe cards because they create a unique transaction code that cannot be used again. Cards with only a magnetic stripe use the same transaction code over and over, which makes it easier to skim information.

Despite the now passed deadline, The Srawhecker Group (TSG) released a survey in February estimating that only 37% of merchant locations were EMV ready.

“It appeared that some merchants delayed EMV migration completely until the holiday season ended to prevent friction and confusion at the checkout line,” said Jared Drieling of TSG.

Source

TSG Press
Mar 2016

TSG in CNBC - Retail Businesses Face Big New Hack Liability

When asked if Wendy's new point-of-sale technology includes EMV card readers, company spokesman Bob Bertini said most stores have yet to install the readers. That would put Wendy's more than a year behind the credit card industry's deadline for full compliance with the new rules.

The burger chain is not alone. Consulting firm The Strawhecker Group, which focuses on payments, found that of 90 companies representing about 4 million merchants, nearly 40 percent of respondents had fallen behind in their EMV reader implementation plan. "A lot of key stakeholders in the EMV migration were not prepared," said Jared Drieling, Strawhecker's business intelligence manager.

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TSG Press
Mar 2016

The Strawhecker Group Promotes Andrew Nuss to Director of Marketing

Omaha-based payments consultancy, The Strawhecker Group (TSG), is pleased to announce the promotion of Andrew Nuss to Director of Marketing.

Andrew has made significant contributions to TSG’s growth since joining in 2009, through his guidance of day-to-day marketing and communications tasks. Nuss has helped create global awareness for TSG by highlighting the synergies of the firm’s expertise and unparalleled data. As a leading consulting firm in the Payments Industry, Nuss has helped grow its client base to hundreds clients, including many Fortune 500 companies.

Nuss is also Editor of TSG’s weekly newsletter, NewsFilter, which is distributed to over 35,000 recipients inside and outside of the Payments Industry. Quickly approaching its five hundredth edition, TSG’s NewsFilter is considered by many industry executives to be the preeminent source of weekly news throughout the space.

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