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Different Payment Processing Pricing Structures to Consider

Businesses are different. To choose the best payment processing pricing structure for your own business, you should do research and see how different billing systems work. In the article below, you can find several options to go for the most suitable one for your business.

Payment Processing Pricing Structures to Choose From

Wrong credit card processing service will make you lose a lot. So, you need to get equipped with the right knowledge and information to avoid making the wrong choice. Let’s go through several options so you can choose the best one for your financial needs:

  • Interchange Plus

Also called “cost-plus,” “pass-through” pricing, or “wholesale” pricing, this one is the best option when it comes to fee reduction. In this case, the payment processor margin is a certain percentage per transaction. However, the interchange fee is estimated based on the transaction type.

  • Flat Rate

This one is a non-negotiable fee required for either each transaction or for each dollar amount. There’s nothing difficult about this option: it’s estimated based on interchange fees, the card brand fee, and their margin fee. With this method, you can’t take advantage of Level 3 discounts: just extremely low discounts from the Durbin Amendment.

  • Tiered or Bundled Pricing

This is the most widespread option, which is estimated based on low-qualified rates, mid-, as well as non-qualified rates. The interchange fees are put together into tiers.

  • Differential Pricing

This one has similarities with tiered pricing, but you’re also going to pay interchange differential fees for credit cards, which will block the processor’s margins.

When choosing credit card processing services, it’s extremely important to find out whether you’re going to deal with hidden costs. To avoid this, turn to a reliable merchant processor like to avoid anything unclear or confusing.

EMB, voted the best high risk processor in the U.S. and rated A+ by the BBB, provides the most advanced, safest and cheapest payment processing solutions in the space. What clients love about is that EMB talks to every merchant to reveal his/her pain points so to provide the best for their business needs.

So, there’s more than one credit card processing service to consider for your business. All you need is to study them well and figure out the best option based on your specific business wants and needs.