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We pass the cost directly to you, so that you
know exactly what you are paying.
The power of interchange plus pricing is far superior than most businesses realize. It allows for hundreds of dollars in savings when compared to the standard flat rate or tiered pricing model. Although Interchange Plus does not give an “exact” percentage, the real advantage is the recipient knowing the true cost, directly from the card brands. If you see the words “mid-qualified" or “non-qualified” on your statement, you’re likely not on a true interchange pass-through pricing structure.
Credit card processing rates are set by the card brands and issuing banks. These rates are unavoidable and the same for every business.
A fixed low markup consisting of a small percentage and an authorization fee
Preferred Payments utilizes Interchange Plus Pricing, also known as “pass thru pricing”. Why? Because it is by far the most advantageous pricing model. This pricing model ensures competitive, transparent pricing, and allows the business to see the true cost from the card brands. All large companies use this pricing for a reason.
The card bands (Visa, Mastercard, Discover & American Express) charge a specific rate for every card out there, there is no way to avoid this cost for any business. This is called Interchange. We pass the true cost directly to you with a small, transparent markup.
What is the difference between a
Flat Rate and Interchange Plus Pricing?
Flat rate processing can be an illusion. While it sounds simple, in reality, it is an expensive, misleading pricing model that conceals the true cost. You may have heard about “mid and non-qualified” rates. While they may initially be sold as a flat rate, they are actually designed to take advantage of your business by charging you more than is readily apparent. Flat rate pricing is not meant to be competitive or even easy to understand, however, businesses often choose flat rate pricing simply because of the name “flat rate.” In contrast, Interchange Plus pricing allows for low rates, competitive pricing and true transparency. As a merchant, you receive the exact cost from Visa, MasterCard, Discover and American Express. No surprises.
Advantages of Interchange Plus
- True cost from Visa, Mastercard, Discover, and American Express
- Transparent and Competitive
- Allows you to take advantage of low debit card cost
- True cost whether you take cards in person or card not present
- Same markup for both credit and debit
- No mid or non-qualified rates
- No additional authorization fee if the card is not present
- Can receive over a 1% savings on B2B transactions
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