Different Payment Processing Pricing Structures to Consider

Sep 01, 2020

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 eMerchantBroker.com 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 eMerchantBroker.com 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.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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