Pricing.
Pros and cons of our rates.
Pricing.
Pros and cons of our rates.
Flat rate pricing.
All transactions fall under one flat rate when you use a flat rate. This rate includes the interchange or wholesale rate and the processor’s markup.
Pros
of flat rate processing
It’s easy to understand. Credit card processing fees and pricing can be pretty complicated. It’s worse when processors go out of their way to be as non-transparent as possible. With flat-rate processing, you pay the same amount for every transaction, which can be refreshingly simple.
It’s predictable. As a small business owner, life likely keeps you guessing, but some measure of predictability is the key to staying sane. For example, with a single rate, it’s easier to predict your monthly processing expenses, which can help you budget effectively.
Cons
of flat rate processing
A lack of transparency. The simplicity and predictability of flat rate pricing can come at a cost. The processor hides both the interchange rate and their markup from you, making it impossible to understand why you’re paying what you are. Since you don’t know the details of what you’re paying, it is more difficult to shop around to find the best price.
There are many different types of transactions, each with a different interchange rate. Some transactions are more expensive than others. When all transactions cost you the same amount, you lose out on any cost savings you might get based on the transaction type
Flat rate pricing.
All transactions fall under one flat rate when you use a flat rate. This rate includes the interchange or wholesale rate and the processor’s markup.
Pros
of flat rate processing
It’s easy to understand. Credit card processing fees and pricing can be pretty complicated. It’s worse when processors go out of their way to be as non-transparent as possible. With flat-rate processing, you pay the same amount for every transaction, which can be refreshingly simple.
It’s predictable. As a small business owner, life likely keeps you guessing, but some measure of predictability is the key to staying sane. For example, with a single rate, it’s easier to predict your monthly processing expenses, which can help you budget effectively.
Cons
of flat rate processing
A lack of transparency. The simplicity and predictability of flat rate pricing can come at a cost. The processor hides both the interchange rate and their markup from you, making it impossible to understand why you’re paying what you are. Since you don’t know the details of what you’re paying, it is more difficult to shop around to find the best price.
There are many different types of transactions, each with a different interchange rate. Some transactions are more expensive than others. When all transactions cost you the same amount, you lose out on any cost savings you might get based on the transaction type
Interchange plus pricing.
The alternative to flat rate processing is interchange plus processing. Similarly, the name describes this type of pricing as well. You pay the interchange rate plus the processor’s markup. The most significant difference is that your monthly credit card statement will show you the fees that make up each transaction.
Pros
of interchange plus pricing
Transparency. While it has the potential to make your credit card statement more complex than you might like, with interchange plus, you’ll always see the fees you’re paying for each transaction. Not only does this help you know if you’re paying a fair price, but it also helps you shop around to find the best price.
Debit card transactions are typically less expensive than credit.
Cons
of interchange plus pricing
Because each transaction has a different price, and you can’t predict the exact number and type of transactions you’ll get each month, your costs become harder to predict.
Charges like those from elite cards have high interchange rates. When processor fees are added to those high rates, the resulting cost might be more expensive than a flat rate pricing model.
Interchange plus pricing.
The alternative to flat rate processing is interchange plus processing. Similarly, the name describes this type of pricing as well. You pay the interchange rate plus the processor’s markup. The most significant difference is that your monthly credit card statement will show you the fees that make up each transaction.
Pros
of interchange plus pricing
Transparency. While it has the potential to make your credit card statement more complex than you might like, with interchange plus, you’ll always see the fees you’re paying for each transaction. Not only does this help you know if you’re paying a fair price, but it also helps you shop around to find the best price.
Debit card transactions are typically less expensive than credit.
Cons
of interchange plus pricing
Because each transaction has a different price, and you can’t predict the exact number and type of transactions you’ll get each month, your costs become harder to predict.
Charges like those from elite cards have high interchange rates. When processor fees are added to those high rates, the resulting cost might be more expensive than a flat rate pricing model.
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