In the processing world, no two businesses are alike, so, unfortunately, there’s not a base price we can quote to everyone. To get a fair rate, you’re going to have to let a processing company look at your statements and analyze your payment needs.
All credit card processors have the same base cost from the card brands (Visa/MC/Discover) called interchange.
Credit card companies charge interchange rates for every transaction you process for a card swiped at your business. It’s a fee they apply for you processing the payment between the two banks involved in the transaction (your bank and the cardholder’s bank).
Each processor has slightly differing soft costs, like marketing, support, sales, but their hard costs “interchange” are the same, and there is no pricing benefit for using a large processor over a smaller competitor or vice versa.
Interchange costs are calculated in with your credit card processing rates, so no matter the processor, you’ll be paying the same base price for taking credit cards.
Your processing rates are calculated after interchange is added as a cost per type of transaction fee, charged by the processor. Lots of credit card processors use either 2 or 3 tier to categorize each transaction. What that means is each transaction, depending on the variables will fall into one of those tiers.
The three tiers are the following:
There are lots of different combinations depending on the credit card brand, and the particular card type that calculates what your overall rates will be. Some of your transactions will be qualified, but most will be mid or non-qualified rates.
If you want a straight answer and a flat rate for every card type you’ll be getting ripped off. Sorry, the truth is, no sound processor can quote you a straight price over the phone and have it be competitive, without seeing your credit card processing statement.
A good credit card processor will look at your statement and be able to calculate a rate based on your average volume and what types of transactions you run. Every merchant is different and will tend to run different tiered sales (even if the guy down the street has the same business!)
If you’d like to learn more about rates, and what our company can do for your business, contact us here.
Give us a call, and we’ll be happy to look at your statement and let you know if you can get a better rate.