“Rates” Posts

What Causes Interchange Fluctuation?

What Causes Interchange Fluctuation?

If you’re on an Interchange-plus rate plan, you pay the wholesale cost to run a transaction (known as Interchange) plus a provider markup. The wholesale cost is determined by the card brands (Visa, MasterCard, Discover and Amex) and accounts for the risk or rewards associated with the card. If you’re processing a relatively consistent volume from month to month, say $35,000 in April and $34,500 in May, you might expect your merchant statements to be similar. Sometimes that’s the case; sometimes it’s not. Why? Because the percentage of your aggregate volume for a given…

The Biggest Credit Card Processing Pitfalls

The Biggest Credit Card Processing Pitfalls

We’re intimately aware of how credit card processing can be a nightmare. Why is that? Because we’re familiar with the payments space. With 17 years of experience, we’ve seen how changes in the industry (and the industry’s inability to keep up with the times) can cause tension among business owners and consumers alike. A prime example of such tension is the recent shift from magstripe to EMV chip cards. Furthermore, we analyze thousands of merchant statements annually, so we see how other providers are charging their customers. We’ve uncovered over a dozen unethical billing issues…

Why We Care About Ethical Credit Card Processing

Why We Care About Ethical Credit Card Processing

Read enough about PayJunction’s company culture, and it’s clear we prioritize long-term relationships over short-term profit. That’s not just a nice-sounding statement, it’s what we practice every day with our customers. Since we launched our blog, we’ve largely focused on unethical billing issues. These are the unfortunate, but all-too-common, ways players in the payments space unfairly profit off their customers. Because everyone does it, there’s an assumption among providers that it’s OK. Business owners are left to believe they can’t escape fake fees and hidden markups because they’re the norm. Complex…

How Refunds Impact Credit Card Processing Fees

How Refunds Impact Credit Card Processing Fees

Unless you have a no-returns policy, refunds are unavoidable. Even if your goods are in pristine condition, a change of heart can be enough to reverse a purchase decision. That said, refunds aren’t great for businesses. They represent more than a lost sale; they result in additional credit card processing fees. There are a few reasons for this (some are ethical; others not so much), but luckily you can sometimes bypass the unpleasant processing fees related to refunds altogether. Credit Card Processing Steps Numerous parties facilitate each credit card transaction, but the ability to void instead of refund a…