Interchange Reimbursement Rates and Credit Card Processing Pricing Explained, Part 2
Finally there is Interchange Plus pricing, which is exclusively how we quote at Host Merchant Services. Interchange Plus, also known as Cost Plus, pricing gives the customer a fixed rate over published Interchange Fees. This pricing format is normally quoted as a discount rate (percentage fee) along with a per item or authorization fee. The great thing about Interchange Plus pricing is that you always know exactly what you are paying to your processor to services your account. Think of Interchange, and all the associated fees, as an unavoidable cost. No matter who you process with, you have to pay these fees. They may be labeled differently, or wrapped up in a confusing pricing tier, but one way or the other, you are paying Interchange fees. By understanding the markup you pay over Interchange, you know exactly what you pay to your processor and exactly what is going to the card associations. That allows you to make a decision on whether or not the markup seems reasonable for the service you get and choose your processing partner accordingly.
Of course there are other things to consider when selecting a merchant services partner. How is the customer service and support? Do they offer a 24×7 helpdesk? How long do they take to fund my account? Are they holding a reserve or delaying my funding? Are there other monthly, quarterly or annual fees required?
Is there a term commitment, and if so what is the early termination fee? If there is a term, does the company have the right to raise my rates indiscriminately during this time? Surprisingly companies often sign into a term commitment and can’t get out without a large termination fee.
Do they support a gateway that is compatible with my billing system? Will their systems and supported technologies meet my needs? Do they offer an affordable PCI-DSS complianceprogram?
Overall, there is much to consider, but if you find a provider that offers a competitive rate, helpful service, and technology that meets your needs, without locking you in long term, you probably have a good partner. We would like you to consider Host Merchant Services to be that partner for your business.