Credit Card Processing

Credit Card Processing Fees & Rates

In this article I’ll explain the different aspects that contribute to credit card processing fees to give you a solid understanding of who’s charging what and which areas of cost you can control. Components of Cost Base Fees Interchange Assessments Visa MasterCard Discover American Express Markups Pricing Model Interchange Plus / Pass Through Tiered /…

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Credit card processing fees seem complicated. But take away the sales jargon and it makes more sense.

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Credit Card Processing

Interchange Plus Pricing

What is interchange plus pricing? Interchange plus basis points Is interchange plus basis X points competitive? How does it work? What are the benefits of interchange plus? Is interchange plus the best pricing model? Where can I get it? What is interchange plus? Interchange plus is the term used to describe a merchant account pricing…

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Interchange plus pricing is a credit card processing pricing structure that separates the components of processing costs allowing for transparent reporting and interchange optimization often leading to lower costs when compared with other forms of pricing such as tiered or bundled.

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Credit Card Processing

Interchange Rates and Fees

Historically, interchange has been imposed upon businesses to reimburse issuing banks for lost interest resulting from a cardholder’s grace period for repaying their debt. This is why Visa still refers to interchange fees as “interchange reimbursement fees.” Today, Visa states that “the primary role of interchange is to create an equitable balance of incentives between a…

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In credit card processing, interchange is the money transferred from the acquiring bank to the issuing bank for each bankcard transaction. Interchange fees account for the majority of credit card processing costs and are established by the card brands (Visa, MasterCard, Discover) of open-loop processing systems.

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Credit Card Processing

Effective Rate for Credit Card Processing Fees

For businesses searching for a new merchant account without actual processing data, the effective rate should be interpreted as a general indicator of cost-effectiveness — not as a precise measurement. However, it is still extremely important in determining the best processing solution. Varying interchange fees make predicting the exact total cost of a merchant account quote…

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For businesses that already accept credit cards and have actual processing data, the effective rate can be interpreted as an exact measure of the competitiveness of the current processing solution.

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Credit Card Processing

Credit Card Processing Consultants

Add to that the fact that you can get the benefits of a consultant through CardFellow without the hefty price tag, and a credit card processing consultant won’t seem like such a great option. Types of Consultants Unaffiliated Credit Card Processing Consultant Affiliated Credit Card Processing Consultant CardFellow: The Best of Both Worlds Types of Consultants…

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Credit card processing consultants offer to negotiate with your credit card processor to lower your costs. But is it the best way to save your business money?

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Credit Card Processing

Flat Rate (Subscription) Merchant Accounts

.Subscription pricing is becoming more popular as businesses try to find ways to cut credit card processing costs.This type of pricing can be competitive, but there is an element of marketing spin that can sometimes make it seem better than it actually is. Subscription flat rate pricing is available from some processors in the CardFellow…

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Subscription or membership flat rate merchant accounts are one option for businesses that want to take credit cards. A subscription pricing model is one in which a credit card processing company charges a fixed cost instead of a percentage of your sales.

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