More Intelligent Merchant Rates

As a merchant, do you feel the fees you pay for accepting card payments are too high?  I’ve not talked to anyone in business who thinks they aren’t paying enough for merchant services.  If you’ve been following the Interchange debate, you realize the Interchange fee paid back to the issuing bank is the target of reform.  And while Interchange reform is a healthy debate, for most businesses, it’s beside the point.  They don’t get Interchange pricing.

Most small and mid sized businesses don’t pay Interchange pricing, they pay discount rates and service fees set by their service provider, processor or bank.  The most common pricing structures are based on formulas, bundles, tiers and definitions invented by their payment processing vendor.  Locked into long-term contracts, the savings from reduced Interchange would not be initially realized by this group of merchants.  Therefore, the first step before joining the Interchange debate is to acquire Interchange pass through pricing. 

Many business owners fall victim to “rates as low as” marketing, only asking “what’s my rate?” and looking for the lowest quoted rate upon which to make a decision.   Learning about Interchange seems too complex.  For this group of merchants - “buyer beware”.  Take for example this trade magazine article on a hot new topic, Enhanced Recover Reduced (ERR), which is a newly invented merchant pricing model.  Unbelievably, it calculates how to charge a merchant 2.76% for a swiped rewards card or 4.06% for a keyed transaction.  And you thought Interchange was too high.  Bottom line here is that while the lawyers, lobbyist and politicians earn their living arguing over Interchange, merchants should take more immediate action on the things they can control today.  Shop smart and choose your payment partner wisely.

All merchants, large and small, can get Interchange pass through pricing.  More intelligent merchant rates are a click away.  Receive a customized merchant rate quote, instantly delivered to your inbox, right now by visiting

by Ty Hardison

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