Becker Business Podcast: Technology Leader of the Month

Episode: Scott Bauer, CEO, Mosaic Processing
Host: Scott Becker
Date: November 13, 2025

Episode Overview

This episode features Scott Bauer, CEO of Mosaic Processing, as the Technology Leader of the Month. The conversation centers on innovations in credit and debit card refund processing, targeting high-risk merchants, and how economic conditions influence returns. Scott Bauer shares insights on both the evolution of his career and company strategies—addressing current marketplace challenges, fostering trust, and leadership values essential for thriving in a competitive fintech environment.

Key Discussion Points & Insights

1. Scott Bauer’s Background and Mosaic Processing’s Origins

• [00:36] Scott Bauer introduces his 35-year career in financial markets, transitioning from trading floors to fintech solutions as industries digitize.
  • Quote:
    “Change of landscape in the markets over the last, you know, 15 or so years where everything has pretty much gone electronic... many people like myself have kind of diversified.” — Scott Bauer ([00:49])
• Mosaic Processing focuses on reducing the cost of credit and debit card usage for both consumers and merchants, with particular attention to chargebacks and refunds.

2. What Mosaic Processing Does Differently

• [02:09] The company specializes in serving high-risk merchants (e-commerce, e-gaming, nutraceuticals) who face exceptional refund rates and punitive fees from major credit card networks.
• New Visa regulations (VAMP) mean merchants exceeding a 1%-1.25% refund rate face steep penalties or may have to stop accepting cards altogether.
• Product highlight: Quick Refund
  • Integrates seamlessly into merchant systems (two-minute install).
  • Processes refunds instantly without passing through Visa, avoiding "penalty box" rates.
  • Substantial fee reduction: Flat $10 per transaction vs. $30-$60 through standard networks.
  • Quote:
    “If a consumer comes back and wants to make a refund, the refund happens seamlessly without ever getting to Visa... the fee they pay for a refund, which can be upwards of, literally, and this is ridiculous, upwards of 30 to $60 per transaction... They pay a flat $10 fee with us.” — Scott Bauer ([03:28])
  • Benefits consumers with instantaneous refunds, vs. the typical 3-5 day wait.

3. Economic Factors Increasing Refunds

• [05:22] Discussion of a "K-shaped" economy, where wealth disparities impact consumer behavior.
  • Economic hardship leads to higher levels of returns—impulse buying online, buyer's remorse, or parental intervention in purchases.
  • Quote:
    “When we get into a period like this... you do see a higher level of refunds. Because a consumer may buy something... then they look at their credit card statement [and] say, ‘I really don't need this.’” — Scott Bauer ([05:44])

4. Impact of Return Fees—Realities for Merchants

• [07:17] Average transaction size for customers using Mosaic is $17, but traditional refund fees ($30–$60) can wipe out margins on low-ticket sales, forcing merchants to increase prices or add surcharges.
• Mosaic’s offering cuts fees by 60–70% and provides merchants with actionable transaction data to improve business decisions.
  • Quote:
    “The merchant is absolutely loving this... Their fee is cut by 60, 70%.” — Scott Bauer ([08:30])

5. Keys to Growth in a Competitive Environment

• [09:15] Success comes from being deliberate rather than rushing, focusing on perfecting one product at a time before expanding.
  • Building relationships with clients and independent sales organizations (ISOs) is fundamental.
  • Quote:
    “It’s that old adage of walk before you run... we have been very deliberate in our process building up the business one product at a time.” — Scott Bauer ([09:30])

6. Leadership Philosophy and Team Culture

• [11:11] Emphasizes the importance of continuous learning, not being afraid to make or admit mistakes, and fostering transparency within the company.
  • Leaders should avoid overpromising and ensure the customer always leaves with a positive experience.
  • Quote:
    “If you don’t investigate, if you don’t continuously learn, if you don’t try things, you’re never really going to reach that next level... owning up to [mistakes] and taking care of it and making sure that your customer is righted.” — Scott Bauer ([11:20])
  • Culture: Flat hierarchy, everyone is on the same level, focus on communication and trust.

7. Mosaic’s Core Values: Trust and Communication

• [13:04] Mosaic is built on a foundation of trust and transparent communication, stemming from the backgrounds of both Scott Bauer and partner Mike Frazen.
  • Confidence in integrity is a major draw for clients.
  • Quote:
    “The one constant is trust and communication... Anybody that we work with can feel confident from the first second that they will always get the utmost transparency, the utmost truth.” — Scott Bauer ([13:10])

8. Closing Remarks: Leadership Validation

• [14:05] Host Scott Becker comments on the integrity of Mike Frazen:
  • Quote:
    “As good a person as they come, the highest integrity... The people that I know that have had long term business relations with Mike rave about what a person he is.” — Scott Becker ([14:14])

Memorable Quotes

• On Market Change:
  “Change of landscape in the markets... everything has pretty much gone electronic...” — Scott Bauer ([00:49])
• On Visa Penalties:
  “If a consumer comes back and wants to make a refund, the refund happens seamlessly without ever getting to Visa...” — Scott Bauer ([03:28])
• On Economic Impact:
  “When we get into a period like this... you do see a higher level of refunds.” — Scott Bauer ([05:44])
• On Building a Business:
  “Walk before you run... we have been very deliberate in our process building up the business one product at a time.” — Scott Bauer ([09:30])
• On Leadership:
  “You can’t be afraid of making a mistake... you can’t be afraid to admit a mistake.” — Scott Bauer ([11:11])
• On Company Values:
  “Our company is built on trust... trust and communication... are really the two biggest values.” — Scott Bauer ([13:10])

Timeline of Key Segments

• [00:36] – Scott Bauer’s introduction & company overview
• [02:09] – Mosaic’s product and its industry impact
• [05:22] – Refunds, economic trends, and consumer behavior
• [07:17] – Merchant pain points and financial benefits of Mosaic
• [09:15] – Growth strategies in fintech
• [11:11] – Leadership principles and team culture
• [13:04] – Core company values: trust and communication
• [14:05] – Integrity and partner praise; closing remarks

This episode delivers a deep dive into fintech innovation, merchant pain points, and values-driven leadership, making it valuable for anyone interested in payments, entrepreneurship, or navigating today’s economic challenges.