Three Types of Traditional Processing
INTERCHANGE PLUS
This pricing model is very transparent and uses a flat rate or % based mark up for the actual cost of acceptance. The interchange rates are posted online by all the brand cards so there are no hidden fees. https://usa.visa.com/dam/VCOM/download/merchants/visa-usa-interchange-reimbursement-fees.pdf
FLAT RATE
This is a great program for merchants that want simple and easy to understand fees. With a flat rate merchants can better price their goods and services without being in the dark about cost of acceptance. These flat rate programs also work well with merchants looking to commit to a specific program. 2, 3- and 4-year agreements are in place to lock a rate as one would lock a mortgage rate.
TIER PRICING
A tier structure pricing model breaks down cards into 3 categories. Qualified cards, mid-qualified and non-qualified. Usually the qualified cards will have a very attractive low discount rate and the hopes is that most of your transactions fall into this category. This can get pricey when you start taking non-qualified or mid qualified cards. Non-qualified cards can be cards such as gift cards, international cards and corp. cards. Mid qualified can be card such as high reward cards, cash back cards and frequent flyer cards. We recommend sending at least 3 months of consecutive merchant statements for full review before we can accurately analyze the savings using this program. Only industry experts should be using this and we are happy to offer a tier structure if that will create the biggest savings for you and your business.
We can analyze your statement and determine which model is best suited for your business.