Flat Rate Merchant Processing Account Can Offer A Low Cost Pricing Solution.
[I:http://www.consolidationschoolloan.com/wp-content/uploads/2011/01/LisaKaye0.jpg] When opening a merchant account, the pricing can be confusing and hard to determine which one you should choose. There are four types that you can choose from including bill back or ERR. This is one of the most costly pricing structures because the merchant believes they are paying a low flat fee of 1.59% or 1.69%. However, what businesses are not aware are the downgraded surcharges charged with this pricing structure. Another popular type of pricing is a tiered pricing structure.
On a tiered pricing structure your transactions are grouped into one of three rates. Your transaction will either be a qualified, mid qualified or non qualified transaction. One pricing structure worth looking into is Interchange Pass Through. It is the most transparent pricing, but is not often offered because the profit margin is not as great for the merchant processor.
Very simply, the main difference is that flat rate pricing charges a flat rate fee and per transaction fee. When a discount fee is charged the fee ranges between 20 and 70 basis points or .20% and .70% (of course the industry has seen higher discount fees charged) is based and the man of business that you do. The discount fee is what your merchant processor charges for the processing and funding of your business credit card transactions.
In the case of flat fixed rate pricing, a merchant service provider makes money by charging a fixed flat monthly fee and a small per transaction fee. Now, this pretty much explains the term \’flat\’.
Flat fixed rate merchant processing is gaining popularity with merchants, but you do need to be aware not every merchant processor provides Interchange Pass Through Pricing with a fixed flat rate.
Because of this, make sure you compare each company before you sign anything. Read all of the paperwork before your decision is finalized so that you are sure of all of the fees and costs associated with your merchant account and that your business is receiving the most viable solution for your merchant processing account.
Before you sign up for a merchant account, please allow merchant service sales to provide you with a free merchant processing analysis to ensure you are not being charged hidden fees and costly surcharges.
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