HOW PROCESSOR PRICING WORKS
Who you’re paying
- The Issuer of the credit or debit card. This is called Interchange and is the largest amount you pay.
- The Card Brands, like Visa, MasterCard, Discover and American Express.
- The technology platforms.
- The Pin Debit networks that process pin debit transactions. Interlink and Maestro are just two of those networks, with logos you’ll recognize on ATM’s.
- Your Credit Card Processor, also known as your Merchant Services Provider.
- Third Party providers like PCI compliance, virtual terminal, and gateways, such as Authorize.net, etc.
Why you’re paying
- You are paying for a loan. Surprised? Deposits for your batches are a loan from the processor’s sponsor bank.
- The secure technology that costs millions to build and maintain that sends you a response of approved or declined for every card that you swipe or key in.
- The speed of the deposit to your bank account within 24-72 hours.
- Third Party technology, like Point of Sale systems and gateways, that make your payments easier to process and reconcile
- The 24/7 customer service from your Credit Card Processor.
What you’re paying
- Bank Card Interchange – a complicated set of percentages and transaction fees, based upon card type, industry, and method of acceptance.
- Card Brand Fees which usually make up .22% to .28% and go to brands such as Visa, MasterCard, and Discover.
- Service fees, usually a percentage rate and transaction fee to your Merchant Services Provider also known as your Credit Card Processor, that should be available 24/7.
- Other Third Party fees may include Pin Debit Network fees for cards processed with a Pin number, PCI compliance fees, and Third Party fees, such as gateways.
Nothing tricky here. No deceptive Flat Rate Pricing, no Tiered Pricing, no Qualified, Mid Qualified or Non Qualified, no bill backs, no surcharges and no hidden fees.
Pricing Options for Smart Merchants
What you should know about the three most common pricing patterns.
(also called Cost Plus)
The best type of pricing. Why? Very simply, it allows a merchant to see exactly how much their processor is making every month. It is completely transparent. There is no better type of pricing, no matter what spin a processor may use to persuade you.
If you see words like Qualified, Mid Qualified, Non Qualified, or Surcharges on your statement, you don’t have Interchange-Plus and you should reach out to us for an immediate review.
Already have Interchange-Plus Pricing? Click here to learn how your processor could be wasting thousands of your dollars by not carefully monitoring your Interchange.
Never a good deal for a merchant. A merchant on this type of pricing has a statement that blurs the line between what Visa, MasterCard, Discover and American Express charge and what goes to the Credit Card Processor. It is used to confuse merchants and inflate costs and add surcharges. You should be very wary of processors who sell this type of processing.
If you see any of the following on your statement, you are on Tiered Pricing.
- Mid Qualified
- Non Qualified
You are throwing money away if this pricing seems familiar. Let us help you switch to Interchange-Plus.
Flat Rate Pricing
Don’t be afraid of detail. Truth is in detail. Flat Rate pricing is never a good deal for a merchant and potentially dangerous. Even though your processor may have sold you on the idea of a flat rate you can count on every month, you are leaving money on the table with this type of pricing. Don’t believe them if they tell you that some months they may actually lose money. This is simply not true. A flat rate statement hides important information you need to know about your Interchange. Without it, you can never confirm your interchange is correct, potentially missing out on thousands in savings. You also cannot tell if your processor has set you up correctly, possibly exposing you to fines from Visa, MasterCard, Discover, and American Express.
If you see any of the following on your statement, you’re not getting the best price:
- Lack of detail
- Flat percentage % rate
Let us help you switch to Interchange-Plus.
Not enjoying Interchange-Plus Pricing?
You have Interchange-Plus Pricing but your Interchange looks really high?
Let’s get that fixed!
Your credit card processing statement contains many fees and it should be no surprise that merchants struggle to understand all of the contents. It’s easy to find what you should be paying. Let us help you break it down.
Simply submit your statement and we will get back to you within 48 hours to explain our analysis and offer you a better option.
Reading Your Statement
Frequently merchants say “I’m happy with my current processor”, or “I had someone look at my rates”. They don’t feel the same way after we have taught them to fully understand their statement. Additionally, many processors sneak in increases month to month, so even a recent analysis may not truly reflect what you are paying.
Don’t have time to upload your statement? Call us at (800) 608-1218
WHAT OUR CLIENTS SAY
Our Merchants know we care about them!
“I just wanted to send a note letting you know that we have really appreciated the customer service and attention to detail working with Smart Merchants Club. They are professional and care greatly for their customers.”
– Jenn L.
“Over the past five years their customer service has been excellent, their systems reliable and no one has beat or matched their rates”
– Dr. John W.