Interchange Plus is the actual cost we pass on from the Card Brand Association. There are hundreds of categories of pricing for card types based on industry, etc. We want to be as transparent as possible with our pricing and there is no more transparent than this model.
Things to watch for or ask when speaking to your provider or Sales Rep. Ask if the Interchange their offering is padded? They will most likely so no or they may have no clue themselves. You can check this yourself by asking for the Interchange chart. Note, this changes normally twice a year so be careful if you accuse your rep or a Salesperson of such actions. Here we DO NOT pad our Interchange. Simple and straight forward Basis Points Pricing
This type of Pricing is offered after our company or another reviews the industry your company average falls under. Not a super popular pricing model anymore. Square once did it with their 2.75% model which sounds great but on average our company would have save these Merchant .50 Basis Points which adds up fast. Flat Rate Pricing can be offered but only on a case by case basis.
Tiered Pricing is based normally on a 3-tiered pricing structure. Ex: Tier One would be offered the lowest as a Qualified Discount normally around 1.29-1.59%, Tier Two then is normally 1% more at 2.29-2.59% and Tier Three is 1% more at around 3%-4%. This was a popular model for some time but with more savvy Merchants like yourself Interchange Plus has grown to be equal if not more popular than this model.
SAVINGS…. This is a New Pricing model with only a couple of years in use but Surcharging and Cash Discount will save YOU the Merchant hundreds or Thousands per month. How?
Has a Non-Cash fee of 4% or a flat 0.60 cents if the average ticket is under $15 is added to the receipt at Check out. This fee doesn’t apply to cash transactions. We place signage so the customer knows of the fees beforehand. Normally only 5-10% of customer even notice the service fee and many Restaurants, Retail and Gas stations are using this model. The savings is huge. We have seen 99% of Merchants keep this model once implemented.
Is another model which a 4% fee only applies to Credit Card Sales of Not Debit Card Sales. So, when you take a debit card which is more than half of all transactions there is no fee applied which means the Merchant still pays for those transaction cost but you will save 40-50% instead of paying 100% of sales without it. We place most customer under the Cash Discount model.
International Payment acceptance applies to any card with a MasterCard, Visa, Amex or Discover Card logo on it and we also offer Payment Processing to Merchants in Canada, Europe, Mexico and more. If you know someone who needs to take payments for their Business in another country let us know.
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