Case Study: Lincoln Electric cuts card processing costs and improves cash flow with WEX payment solutions

How an Analytical Review of Card Payments Can Create Big ROI Returns with Little Investment

Lincoln Electric Company, a manufacturer of welding and cutting products, faced rising costs as its purchasing card (p-card) transaction volume grew exponentially. The company sought to reduce its significant card processing fees and improve operational efficiency. Partnering with vendor WEX, Lincoln Electric utilized their analytical and technological payment solutions to address this challenge.

WEX implemented a Software-as-a-Service (SaaS) payment solution that enabled Level-3 processing to qualify for lower interchange rates. This resulted in direct fee savings of $1.4 million, reducing the average interchange rate from 2.7% to 1.4%. Furthermore, the solution provided automation, improved security, and enhanced reporting, which led to a dramatic reduction in Days Sales Outstanding (DSO) for card-paying customers and significant operational improvements across the company.

Lincoln Electric Company