Frequently, the lower tiers are reserved for certain types of credit and debit cards, which means that merchants may find themselves defaulting to higher-priced tiers. Merchants are attracted to this model because it divides your transactions into tiers:īut looks can be deceiving. Tiered pricing is the most popular fee structure in the United States. But with a flat-rate model, you'll be locked into the same price indefinitely. For example, it's possible to expand your sales volume to lower your interchange fees. This fee includes:įlat-rate pricing provides merchants with predictable monthly costs, but it also means less flexibility. With flat-rate pricing, the payment processor charges a flat fee for each transaction. Here are the four main pricing models available from most payment processors: Flat-rate pricing As a business owner, you don't have a lot of influence over the other fees you pay, but you have options when it comes to your merchant service provider. Payment processing feesįinally, there are fees you pay to your payment processor. While American Express has the highest assessment fee on the list, the difference between these fees is negligible, at least compared to other credit card processing costs. Here's a breakdown of average assessment fees for each major credit card network: The assessment fee represents the cut taken by the credit card issuers.
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