The Tyro Payments Ltd (ASX: TYR) share price is edging lower on Thursday.
In morning trade, the payments company’s shares are down 1% to $3.80.
Why is the Tyro share price dropping?
The catalyst for the softness in the Tyro share price today appears to have been driven by an update on its terminal outages earlier this year.
Following the outages, Tyro’s focus was to return all impacted merchants to normal operation as rapidly as possible. After which, the company established a remediation framework to provide financially impacted merchants a fast and straightforward channel to claim for financial losses caused by the incident.
This included the company actively engaging with all impacted merchants (via its usual merchant communications portal, email, SMS, and direct mail) inviting them to register with Tyro if they claimed to have suffered financial loss.
Today’s update reveals that, to date, a total of 3,656 merchants have registered with Tyro.
The impacted merchants have been given two options:
Accelerated Path Assessment – which provides a simple remediation solution via a merchant service fee rebate over a designated period if loss is assessed. This rebate is designed to offset the financial loss suffered.
Case Managed Path Assessment – which provides a more tailored remediation solution under which an impacted merchant provides specified claim information about their particular circumstances and the loss they claim to have suffered.
Tyro advised that it has received 973 responses from merchants wishing to pursue the accelerated path option and 76 responses from merchants wishing to pursue the case managed option.
To date, of the 3,656 merchants who have registered as having claimed to have suffered a financial loss, 888 have had their claims settled.
However, no details have been provided in respect to the amount the company has remediated affected customers. As a result, this uncertainty could be weighing a little on the Tyro share price this morning.