All accounts include FREE corporate / ecommerce website* and website hosting*. Included is the option for a free WooCommerce® online website and free Point of Sale software that connects with your ecommerce website!
Card Present Rate
Card present rate is given when 70% or greater of your total business credit card sales are card present and swiped at the business location through an approved PCI compliant credit card terminal, USB Reader, POS System, or approved smart phone swipe device.
25 Base Points (0.0025%) + Interchange
Card Not Present Rate
Card NOT present rate is given when 30% of your total business credit card sales are card not present transactions. This means that 30% or greater of your credit card sales are either ecommerce / internet sales, phone orders, keyed in using a virtual terminal, credit card terminal, or smart phone.
35 Base Points (0.0035%) + Interchange
Interchange plus pricing refers to a pricing structure used to calculate the discount rate charged to merchants by credit card processing vendors. These concepts can be somewhat tricky to understand at first, but are relatively simple once you’re familiarized with the terminology.
Credit Card Processing Basics
There are four parties involved in every credit card transaction. These parties are:
The customer, who makes the credit card purchase.
The issuing bank, which issued the credit card to the customer.
The acquiring bank, which is used by the merchant to provide processing services.
The merchant, who is the individual or business taking the payment.
Each credit card transaction is processed through all four parties, and two fees are deducted from the original transaction before the merchant receives the final payment. The sequence of events is as follows:
The customer makes a purchase using his or her credit card.
The merchant enters the card data.
The acquiring bank receives the transaction, and sends it to the issuing bank.
The issuing bank authorizes the transaction, and sends the payment to the acquiring bank. The interchange fee is deducted at this point in the transaction.
The acquiring bank receives payment, and pays the discount rate to the issuing bank.
The acquiring bank sends the final payment amount to the merchant, which is minus both the interchange fee and discount rate.
The interchange fee is charged by the credit card company, also known as the issuing bank. The interchange fee is variable depending upon the merchant type, card type and transaction type. The credit card company sets this rate, and your choice of credit card processing service will not alter your interchange rate.
The acquiring bank, also known as the credit card processing service, sets the discount rate. This is the rate that you as a merchant have the power to change. Traditionally the discount rate has been determined using a tiered merchant account pricing structure. In the past interchange plus pricing was only available to high-volume merchants, but many card processors are now offering it to small businesses as well. There are some key differences between the two pricing structures, and understanding these differences will help you choose the right method for your needs.
Tiered Merchant Account Pricing
In tiered merchant account pricing, the discount rate differs between each transaction. It is calculated based upon qualifications such as the merchant’s total volume of credit card sales, the type of transaction and calculated likelihood of chargebacks such as the card entry method, and the card type.
There are many variables that can affect the discount rate using this pricing structure, and you may be in for some unpleasant surprises. Most processing services will advertise the lowest possible rate for a merchant, while in reality most transactions will be downgraded for any number of reasons. The lack of transparency and unpredictability associated with tiered merchant account pricing can make this structure risky, especially for small businesses.
Interchange Plus Pricing
Interchange plus pricing works somewhat differently than traditional tiered pricing. For interchange plus, the same rate is charged for each transaction, and is determined by an assigned number of basis points. Each basis point represents 0.01 percent, meaning that 150 basis points would be a 1.50% fee.
Basis points are assigned based upon a number of factors, which are related to the merchant’s credit volume and the relative likelihood of chargebacks. Factors such as the merchant type, processing method and merchant credit history are used to assess the estimated likelihood of a chargeback. However, the important thing to remember is that the discount rate will be the same for all transactions.
Advantages of Interchange Plus
The main advantage of interchange plus is that this pricing structure is very transparent and predictable – the rate you agree upon with your credit processing service is the rate you’ll be charged for each transaction. Because of its relative transparency, interchange plus is also more cost-effective in the great majority of cases – unexpected downgrades and hidden fees are a thing of the past.
In the past, interchange plus pricing was only available to well-established merchants with a very high monthly credit card transaction volume. However, as the credit processing market has become more competitive, interchange plus has become available for small and mid-size merchants. Take advantage of this newly available pricing structure by contacting us for a quote.
|CPS Retail Debit||0.05%+ $0.21|
|CPS Retail Signature Preferred Credit||2.10% + $0.10|
|CPS Retail Signature Credit||1.65% + $0.10|
|CPS Retail Traditional Rewards Credit||1.43% + $0.10|
|CPS eCommerce Signature Preffered Credit||2.40% +$0.10|
|CPS eCommerce Signature Credit||1.95% + $0.10|
|CPS eCommerce Traditional Rewards Credit||1.95% + $0.10|
|Retail Debit||0.05% + $0.22|
|Retail World Credit||2.05% + $0.10|
|Retail World Elite Credit||2.50% + $0.1|
|Retail Debit||1.02% + $0.16|
|Retail Reward Credit||1.71% + $0.10|
|Retail Premiere Credit||1.71% + $0.10|
|Retail Premiere Plus Credit||2.10% + $0.10|
*Rates as of April 2015
Pin Debit (Optional) $0.25 Per Transaction + network fees $6.99 Monthly Service Fee
EBT (Food Stamps) (Optional) $0.25 Per Transaction