credit card processing
An Interchange Plus Pricing Structure Can Greatly Reduce Your Credit Card Processing And Merchant Account Fees.
Traditionally small to mid-sized businesses have been set up with what is called multi-tier pricing for their credit card processing. This system is usually set up with three tiers (qualified, mid-qualified, and non-qualifed.) Occassionally, if the business owner has negotiated well, there will be a fourth tier for qualified offline debit cards. While this system has worked well for many years, the increasing number of rewards and corporate cards being issued has made this type of pricing obsolete. Visa and Mastercard have many different interchange categories for the multiple card types that are issued. Tier pricing takes a large number of these categories and lumps them into one of the three tier buckets available to the merchant.
Some of these cards are actually not that much more to process than a standard credit card, but the underwriting company for the merchant account needs to make sure that they are profiting on every transaction. They can ensure profit if they charge a large mark up for any transactions that are not qualified. So you may pay 2.9% for a mid qualified transaction and 3.5% for a non qualified transaction (These numbers can range much higher and lower.) The fact is that some of the cards that fall into these categories may only cost an additional quarter of a percent to process. What interchange plus pricing does is pass the true cost of running the card right through to the merchant. So the fees associated with that individual transaction will be put through at the lowest possible cost.
Mail this post
What You Should Understand About Basic Credit Card Processing Tools
If you occupy the merchant’s position in a credit card transaction, you could be looking for credit card transaction equipment. Nearly everywhere you look, people are using credit cards; there are tons of plans and special offers—and credit card processing equipment is no exception. A growing number of businesses are handling customer payments using credit cards, merchants are looking for card processing equipment that meet their business needs.
In fact, much of the sales done by a company is done through credit card processing. This increased card use makes having functional processing equipment primary concern for business owners. These types of systems should offer ease of use and protection for customer credit card information so all transactions are secure. › Continue reading
Mail this post
Subscribe to Our Newsletter:
