Lowest merchant account fees
After all, do away with unnecessary charges to take advantage of the lowest merchant account fees accessible.
Having the lowest merchant account fees is important for many reasons
Important to realize, getting the lowest merchant account fees determines many factors such as the type of cards, products, volume and number of transactions. Whereas understanding who your customers are can help any organization reduce their credit card processing fees and avoid being overcharge year after year. For this reason, every penny matters. Likewise, we have options for your business to pay low rates than using Flat-Rate companies such as Square, Stripe, PayPal/Braintree, Intuit and Local Banks.
Similarly, both Stripe and PayPal/Braintree charge flat-rate pricing, an increasingly popular cost structure for processors. Certainly, it’s easy to see why – simplicity is attractive. To clarify, flat-rate pricing is easy to understand and it saves merchants from the annoyance of sifting through complex credit card processing statements. Surely, there’s no risk of missing some fine print and — at least on the surface. At the same time, it appears to be totally transparent.
While, merchant accounts differ more in their cost structure. Thus, Interchange-plus is the most obvious and often the lowest for merchant account fees cost model, but some accounts can rely on tiered pricing. Factors such as the age of your business, the type of industry you’re in, and even the type of cards you process can determine the rates your processor will offer you. Therefore, we typically offer you better rates than Fixed Rate companies will. Nonetheless, bigger the volume, the better rate you’ll get. Ultimately, process a high quantity of debit cards rather than regular credit cards, Reli Solutions will be much less expensive by offering lower fees for your business.
The flat rate pricing illusion
Even though, flat-rate pricing is simple. Specifically, credit card processing is not. In fact, flat-rate pricing isn’t designed to be competitive at all–the attraction comes from the ease in which merchants can understand the structure. In essence, it’s a marketing tactic. All in all, the intricacies involved in credit card processing, it’s all but impossible for processors to charge a flat-rate that is competitive while still remaining profitable as a company. Whether, if you’re business aware of it or not, every transaction a merchant processes incurs three fees:
Fixed credit card transaction costs
For the most part, Stripe and PayPal/Braintree use a fixed percentage of volume pricing structure of 2.9% + $0.30 per transaction. Overall, this is on the higher end in comparison to interchange rates. Thus, merchants with low ticket transactions that extra $0.30 can be a real burden.
“Interchange Plus” pricing optimizes costs
Quite simply, “interchange plus” pricing means the merchant pays the interchange rate plus a fee to their credit card processor. Uniquely, that fee is usually measured in basis points. In other words, each basis point is 1/100th of a percent. For example, let’s say you’re a retail business working with a processor that charges 20 basis points or equal to 0.20%. In the same fashion, if you ran a card-present transaction of $50 with an Visa CPS Retail Debit Card, the interchange fee would be 0.80% + $0.15 card rate. In detail, that gives you an interchange rate of $0.50 + $0.15 for a grand total of .65 for the transaction. As an illustration, that same transaction through Stripe or PayPal/Braintree would cost $1.75! As shown below, here’s an example on how were able to get the lowest merchant account fees for processing credit cards.
Fixed vs. Interchange Plus (Example Transaction)
(0.80% + 0.20%)= ($50 x 1%) = $0.50+$0.15=$0.65Paypal Comparison $1.75 – $0.65 = $1.10 (1.10/ $1.75) =62.8% Square Comparison $1.35 – $0.65 = $0.70 (.70/ $1.35) =51.8% Intuit Keyed Comparison $1.95 – 0.65 = $1.30 ($1.30/ $1.95) = 66.6%
Of course, what about any other fees?
With this in mind, you know what your fees are and what they’re for.
- Interchange Pricing – Passed through
- Transaction Fee – Passed through
- Batch Fee – $0.20
- Voice Authorization – $0.95
- Retail Monthly Fee – $19.99
- No Contract – Included
- Business Reporting – Included
- Shopping Cart – Included
- Online Gateway – Included
- Recurring Bill Plan – Included
- Customer Info Manager – Included
- QuickBooks Integration – Included
- Clover App Market – Included
- Employee Users Profile – Included
- Pin Debit – Passed through
- Address Verification Fee – Passed through
On the contrary, rates and eligibility are subject to change without notice. Furthermore, all merchants are required to complete a merchant application and are subject to underwriting approval. As a result, the promotion rate breakdown of the $19.99 charge (Statement Fee $8.00, Regulatory Fee $3.50 monthly and PCI of $99.00 is charged annually which averages $8.49 monthly). Any non-retail merchant account is an additional $10.00 monthly fee +.10 transaction.
Notably, most processors charge over $20 for using employee profiles and business reporting. In the final analysis, institute the service that’s already available for free. All in all, invest the additional funds back into your business.
Next Day Funding
Direct Bank Account Deposits
All things considered, don’t be limited with software and hardware services when getting a standard merchant account will give you the same access plus more free services and online apps. Given these points, having the lowest merchant account fees as possible gives you more comfort.