Credit Card Processing

Credit Card Processing Basics: Pricing Models

In this guide to pricing models, we’ll explain the pros and cons of different options. Fundamentals of Processing Fees Interchange Plus Wholesale Processing 0% Markup Processing Membership Processing Tiered or Bundled Pricing Flat Rate Pricing Zero Fee Processing The Best Credit Card Processor Fundamentals of Processing Fees Before we can get into pricing models, it’s…

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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.

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Credit Card Processing

Amex’s OptBlue Backfires for Small Businesses

How is it possible that American Express cards costs cost less than ever to accept, but businesses aren’t paying less? The answer is pretty simple: credit card processors are pocketing the difference. Amex Introduces “OptBlue” The General Concept The Plan Backfires – Sort Of Perception Works Against Amex The Real Cost of OptBlue Oversight Exceptions,…

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A sneaky thing is going on with the cost businesses pay to accept American Express cards. Recent changes have made it cheaper than ever to accept Amex, but business’ credit card processing statements aren’t reflecting the cost reduction.

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Credit Card Processing

5 Reasons to Ask for OptBlue Pricing if You Take American Express

If you already take American Express cards or are considering accepting them at your business, you’ll want to make sure your processor charges you with OptBlue. Here’s why: It’s Cheaper Well, probably. The new OptBlue pricing is a cost plus model, so if you’re not on a tiered pricing model and if have a competitive…

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Like many businesses, you probably think of American Express as the expensive credit card to accept. That’s changing thanks to American Express’s new pricing, called OptBlue.

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Credit Card Processing

Interchange-plus: You can still get gouged!

At this very moment you know just enough to be dangerous. I highly suggest (and I know my previous employer would agree) that you keep reading. The Flawed Definition of Interchange-Plus Concealing a Markup on Interchange Ridiculous Markups Imaginary Fees Non-Receipt of Credits & Vouchers What’s your time worth? The Flawed Definition of Interchange-Plus We…

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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.

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Credit Card Processing

American Express OptBlue Pricing & Acceptance

Several months ago American Express introduced OptBlue, which is a new pricing structure that will replace the company’s current One Point pricing for most businesses. OptBlue’s pricing functions similarly to that of Visa and MasterCard’s interchange in that processors pay “wholesale” rates to American Express and apply their markup through a cost-plus or tiered pricing model.

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American Express’s OptBlue program provides the possibility of lower fees for informed merchants.

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Credit Card Processing

Interchange Plus Pricing IS NOT a Silver Bullet

Interchange plus pricing does not guarantee competitive credit card processing fees. It’s just as easy for a processor to overcharge a business using interchange plus pricing as it is with other pricing models, such as tiered.

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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.

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Credit Card Processing

Flat Rate Credit Card Processing – Fool’s Gold

If you’re considering a flat rate credit card processing company, here’s what you need to know. What is flat rate pricing? Flat Rate Pricing is An Illusion Truly Competitive Pricing vs. Flat Rate Pricing Interchange Plus Pricing Arguments for Flat Rate Pricing Known Costs Small Tickets What is flat rate pricing? Flat rate is an…

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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.

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Credit Card Processing

1.54% “Flat Wholesale Rate”

I have a question about a specific company – [removed to protect the guilty]. They are saying the rate they can provide is 1.54% on qualified and mid-qualified cards (“flat wholesale rate”). The only other rate is “up to 4.61%” on non-qualified cards. Then they charge a three-cent credit card transaction fee and no basis…

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Sometimes it’s easier to explain pitfalls in credit card processing by using real situations our clients have encountered. The 1.54% “flat wholesale rate” is one example.

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