Data Tracking and Merchant Portfolio Management

November 24, 2020

Data tracking is a crucial part of merchant portfolio management. It can be the key to a portfolio’s profitability or the missing element in terms of avoiding profit loss. Data tracking is essential to risk management, portfolio monitoring, and reporting. With a strong data tracking program, you can make good decisions regarding your merchant portfolio. It will keep relevant information at your fingertips and reports will be clear, precise, and easily understood, thus saving time in compiling reports for investors and the management team. Here are some of the things that a quality data tracking system should provide:

● Sales metrics
● Delinquencies/losses
● Chargebacks
● Residual income
● Daily/monthly/annual volume

You’ll want your data tracking program to be easy to use and understand. Training on the use of the software should be provided by its developer while offering a very short learning curve. It should also present data in real-time and in one application. The ability to compile the data into reports or quick summaries is just as important. Finally, the software should enable you to categorize data by the merchant, transaction dates, card type, and geographical location. And this data should be maintained in the system for historical reference. This will be crucial to the valuation process in the future in case you decide to sell all or part of the portfolio.

An easy to use data tracking and reporting tool will ensure that your portfolio remains healthy. It can also help you to develop strategies to deter fraud, get a clearer idea of your portfolio’s potential, and come up with solutions that improve operational efficiency.

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