“Rates” Posts

Interchange Plus Pricing vs. Flat

Interchange Plus Pricing vs. Flat

For starters, there are more rate plans for your business to consider than just Flat and Interchange plus pricing. That said, comparing too many options at once can be overwhelming; therefore, we’re going to focus on only two plans to simplify things a bit. If you’re just starting to accept credit card payments, a Flat rate plan might be the best to start with. If your business is more mature, Interchange plus rates will likely be more advantageous. Let’s dive into an explanation of each option. Flat Rate Pricing Payment Facilitators offer their customers Flat rate pricing,…

What Is a Payment Facilitator?

What Is a Payment Facilitator?

Have you ever heard of Square, Stripe or PayPal? You might be surprised to learn that these recognizable names in the payments space are Payment Facilitators. There are numerous middlemen involved in credit card processing, and depending on your size and needs, different ones will prove most advantageous for you. If you're unsure what defines a Payment Facilitator, here's your answer. A Payment Facilitator provides businesses with one shared, mass merchant account. Anyone can use it, making them a preferred choice for small businesses with a low processing volume. Businesses that opt for a Payment Facilitator will share their merchant…

Credit Card Processing: Am I on the Correct Rate Plan?

Credit Card Processing: Am I on the Correct Rate Plan?

Anyone who has researched credit card processing rates will probably tell you different iterations of the same story, all of which can be summed up to this: it is a frustrating chasm of mystery that will lead you to far more questions than answers. Interchange-plus, Tiered, Flat, MOTO, Billback, retail, membership-based, effective rate, swiped, keyed, chipped, dipped, EMV-enabled, NFC-enabled ... the list goes on. The vernacular is confusing, sometimes deliberately, and is always changing. Despite this, it’s likely you’ve taken action (possibly a few times) to understand it all. But where do you start? The Pitfalls of Comparing Credit…

What Is Credit Card Interchange?

What Is Credit Card Interchange?

Credit card Interchange is the wholesale cost to process a credit card transaction and is typically comprised of a percentage of the transaction plus a fixed dollar amount (e.g., 0.5% + $0.10). The cost directly relates to the level of risk or reward associated with the transaction. For example, a business rewards card will have a higher Interchange cost than a debit card. Interchange is set by the card brands (Visa, MasterCard, Discover and American Express) and is subject to changes biannually when Interchange guides are updated and released. It’s important to have a basic understanding of…