With 220 supermarkets in seven Midwestern states, Hy-Vee, Inc. recognized that its company had grown large enough to operate its own electronic payments for in-house authorization and processing of check, credit, debit, Electronic Benefits Transfer (EBT) and gift card transactions.
In-House Move Presents Savings Opportunity for Regional Grocery Chain
The benefits of implementing an in-house solution were significant: Hy-Vee could save on per-transaction costs, reduce dependence on a single third-party processor, minimize fraud risk and maintain its high standard of customer service.
Hy-Vee sought a software solution that would allow it to be more responsive to its business needs by meeting its current requirements and allowing the company to expand the system to meet future changes in the payments industry.
Hy-Vee chose several solutions from ACI Retail Commerce Server software applications.
Complete Retail Software Solution Delivers Convenience Shoppers Crave
ACI Retail Commerce Server for Electronic Payment Acceptance is a complete retail software solution that enabled Hy-Vee to bring electronic payments processing in-house to reduce transaction costs and gain greater control over business relationships. The solution securely switches and routes customer payments and provides a fast, convenient and cost-effective method for processing credit, debit, check, telephone, fleet, automated clearing house (ACH), electronic funds transfer (EFT), business and purchasing transactions regardless of the payment token — magnetic stripe, chip, radio frequency identification (RFID), paper or even biometrics. Retail Commerce Server also supports EBT programs, including the U.S. Food Stamp and Aid to Families with Dependent Children (AFDC) programs.
ACI Retail Commerce Server for Check Authorization is a fast, convenient check authorization and tracking system that provides an efficient method for reducing Hy-Vee’s exposure to bad check losses from check runners, organized fraud schemes, checks written on closed accounts and checks from customers who consistently write non-sufficient funds (NSF) checks.
Finally, ACI Retail Commerce Server for Gift and Proprietary Card Management is an in-house application that supports online issuance and validation of stored value instruments. The solution allows Hy-Vee to provide customers with fixed-value cards, variable-value cards and one-time-use-only cards. In addition, the solution manages the value card order life cycle, including order entry, fulfillment and acknowledgement.
Increased Control, Expanded Choice
Hy-Vee has realized several benefits since implementing ACI Retail Commerce Server solutions. First, the company is no longer dependent on a single processor, and in-house processing with Retail Commerce Server solutions allows Hy-Vee to be fully in command of its business.
Retail Commerce Server effectively and efficiently manages Hy-Vee’s EFT transactions and easily processes checks. The solution also allows Hy-Vee to maintain gift card data and control the quality of customer service.
By implementing a system to enable in-house processing, Hy-Vee has effectively minimized fraud risk and reduced transaction costs while maintaining its superior standard of customer service. Retail Commerce Server solutions also authorize and process card and check transactions quickly, which has reduced the amount of time Hy-Vee customers spend in checkout lines.