When looking for the best credit card processor for your business, the pricing model the processor uses can have a big impact. Pricing models dictate how processing fees are charged and passed to you and can set the stage for either very competitive or very expensive pricing.
A sneaky thing is going on with the cost businesses pay to accept American Express cards. Changes have made it cheaper than ever to accept Amex, but business’ credit card processing statements aren’t reflecting the cost reduction.
Years ago I worked for someone that loved the saying, “We pose the greatest risk to ourselves when we know just enough to be dangerous.”
This is often the case with interchange-plus pricing and credit card processing. You’re reading this because you’re likely tired of paying high credit card processing fees, and you probably came across an article or two that touts interchange-plus as the solution to your problem.
As more information becomes available about credit card processing and more people with superficial knowledge write about the topic, interchange plus is often touted as the be-all end-all to opaque billing and high credit card processing charges. This is a dangerously expensive misconception.
Flat rate credit card processing is an expensive illusion based more on clever marketing than reality. What some companies advertise as a competitive flat rate is actually oversimplified and expensive pricing that conceals the true costs to process.