Credit Card pricing can be very confusing. Many payment processing companies offer what appears to be really low rates, when they are actually charging exorbitant pricing overall. We keep it simple, transparent and straight forward.
There are three typical pricing structures: Interchange Plus, Tiered and Flat rate. Many companies have tiered or flat rate processing agreements. For assessment purposes, we will replicate your current pricing structure and provide a no-cost “apples to apples” fee comparison. Once we’ve done that, we will take a deeper look at ways to reduce costs even more. That’s where things can get really exciting.
Without question, Interchange plus is “purest” and most transparent form of pricing. There are several interchange rate categories and fees are based on the card type, how the card was processed, volume and business type. The primary criteria for setting the fees is based on risk. For example, CP (card present) transactions have a lower risk factor than CNP (card not present) transactions. Likewise, certain business types are considered to be lower risk than others. Various card types, such as rewards cards also have higher interchange fees. PIN based debit cards would have the lowest fees. To see current interchange rates, please refer to our Interchange Rates page in the Resources section.