According to some statistics, October credit card sales are down more than 10 percent, but ISOs and processors don’t need economists to provide them with such statistics. They have only to look at their own processing volumes to see what is happening. Sales are down.
And when sales are down, so are merchant revenues and the revenues that flow through to acquirers, processors, and ISOs. This hit to volume and income comes at a time when unemployment is rising rapidly, when bankruptcy filings are increasing, and when further cutbacks in already weak consumer spending are likely to bring even deeper drops in merchant volume and revenue. This grim scenario means that serious belt-tightening lies ahead for an industry that lives on ongoing residuals from ongoing sales.
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