credit Card Processing Companies:

Zero Fee

This type of pricing structure is just what it sounds like - zero-fee for business owners. This means that you will pay no fees to process credit cards. Instead, the fee for using a credit card is passed onto the consumer by offering a cash discount when it’s time to pay. So the customer can pay with cash for a smaller amount, or choose to pay with a credit card for a small fee. Does it seem too good to be true? It’s not! Read this to find out more!

Interchange Plus

This type of pricing model is becoming more and more popular. In this type of model, the business owner pays a monthly fee (subscription) and then pays a significantly lower processor mark-up above interchange. The cost of interchange will depend heavily upon the card brand and type of transaction. For instance, 2019 VISA CPS retail transaction costs 1.51% + $ 0.10 cents per swipe while MasterCard Credit Consumer interchange rate is 1.58% + $0.10.

Make sure you do the math- If you’re not processing enough credit card sales to offset the monthly fee, then your cost per transaction becomes MUCH higher than just what is quoted in interchange plus.

Here are the top vendors who offer this type of pricing model:

*used with Visa 2019 CPS retail interchange

Flat-Fee

A flat fee pricing model is a fee structure that charges the same rate per transaction regardless of the card brand. This type of pricing model is better for lower volume merchants, especially those that process less than 3k/month.

Subscription Plus Flat-Fee

A subscription plus flat fee is yet another pricing model available to a business owner. This type of fee structure charges a monthly fee and a flat rate per transaction. 

Quote Based Service & Undisclosed Fees

The companies below have limited information on their websites. We’re not saying that they won’t be upfront about all their fees and terms, but we are suggesting you go in prepared! Their pricing model and rates are undisclosed because they want you to contact one of their sales representatives for “custom rates” that are specific to your business.

When contacting them as a business owner for a quote, be cautious and wise, knowing you will likely be quoted a lower rate than what you pay currently but not the lowest that you could get. If you’re researching your options to save the most money while still getting quality support - you’re unlikely to get the best rate with companies that do not publish their fees and are hesitant about answering your fee-related questions.

You may come across the terms “tiered pricing” & “qualified/unqualified cards.” Tiered pricing is a conventional processing model and has been around for years. . It’s also a clever way for a credit card processor to hide fees and make more money. Visa, Mastercard, American Express and Discover have not issued any statements about what makes a card qualified & unqualified, this is just something the processing companies have made up. They will charge more per transaction for an “unqualified card.”