“Rates” Posts

How MCC and SIC Codes Impact Credit Card Processing

How MCC and SIC Codes Impact Credit Card Processing

It’s no surprise that there are various types of businesses. However, you might not know that there’s a formal classification system for businesses that can impact their credit card processing. Businesses are mapped to their respective industries through an Standard Industrial Classification Code (SIC) and Merchant Category Code (MCC). SIC codes are managed by the U.S. Department of Commerce and used by the IRS and processing banks, while MCC codes are issued by the credit card brands (Visa, MasterCard, Discover and Amex). While these four-digit numbers sometimes overlap and sometimes differ, they both categorize a business by…

How to Read a PayJunction Merchant Statement on Tiered Pricing

How to Read a PayJunction Merchant Statement on Tiered Pricing

At PayJunction, we provide a detailed breakdown of our customers’ bills each month, which we’ll show you how to read below. For customers on Tiered pricing, transactions fall into three or four price tiers dictated by the risk or reward associated with the transaction — the higher the risk (e.g. keying in a transaction) or reward (e.g. an airline miles card), the higher the cost. The major benefit of Tiered pricing is its easy-to-understand structure. In the processing-details section of our merchant statements, you can see which tier each transaction falls into and the corresponding rate applied. Understanding…

How to Read a PayJunction Merchant Statement on Interchange-Plus Pricing

How to Read a PayJunction Merchant Statement on Interchange-Plus Pricing

At PayJunction, we provide a detailed breakdown of our customers’ bills each month, which we’ll discuss in detail below. For customers on Interchange-plus pricing, transactions are charged based on their wholesale cost (as dictated by the card brands Visa, MasterCard, Discover and Amex) plus a consistent provider markup. The major benefits with Interchange-plus pricing are transparency and affordability. You know exactly what the true cost is for each transaction and how much money you’re paying your provider. In the processing-details section of our merchant statements, you can see each card type, the discount (or wholesale) rate and the…

Sycamore Education and PayJunction Provide Streamlined School Management

Sycamore Education and PayJunction Provide Streamlined School Management

Education providers, ranging from day cares to universities, have a variety of industry-specific needs. Teachers at elementary schools might need to access dietary and emergency contact information for their students, whereas administrators at a college might need to update course information for student registration. Luckily, there are software providers who remove tedious paperwork from the equation and make it efficient to store and access important school information. One such provider is Sycamore Education. With tailored services to cater to administrators, students, faculty, and parents, among others, Sycamore Education is the premier school management system and offers three distinct products: Sycamore…

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…