Flat Fee
Flat rate pricing is a variation on percentage markup pricing. Instead of charging an additional percentage on top of the interchange (which implies each card’s ultimate fee will be different), flat-rate models charge the same amount to all cards. Square is the most well-known example of this. Square will always charge 2.9 percent regardless of the card used. This may appear to be a good approach at first glance, but the more you process, the more expensive it becomes. This is especially true if you process a lot of low-interchange-rate cards, such as debit cards. These cards have an average interchange rate of around.5%, so 2.9 percent is a considerable markup.
Rate Structure
Tiered rates, by far the most expensive and least transparent of all pricing structures, place distinct cards in different tiers and charge based on those qualities. The most crucial aspect of this approach to understand is that the tiers are arbitrary and defined by the provider. Providers keep track of the most popular card types, place them in the most expensive tier, or charge extra fees for a variety of ambiguous online credit card processing services.
These models are rarely questioned since corporations frequently feel there is some kind of logic behind the groups. Because there isn’t, it’s important to have an open dialogue with your provider if you see terms like “qualified,” “mid-qualified,” or “non-qualified” on your statement.
Simple Flat Rate Subscription Subscription pricing strategies are frequently the best option for businesses.
In exchange for the direct cost of interchange, a monthly membership is paid. Essentially, no matter how much you process, you simply have to be concerned with the direct cost of the cards you’ve processed and a set membership fee.
There are a few other firms that use subscription-based pricing, but Stax is the only one that guarantees unlimited credit card processing with no hidden fees.
Contact one of our solution specialists today to discuss your current pricing model and how we may assist your firm in saving money.
Technology for Payment Processing
Every business is distinct, especially when it comes to payment acceptance. The technology you use to run your business is critical to its success, therefore it pays to thoroughly understand your requirements and find the best payment technology solution available.
Online Billing
For the vast majority of organizations, invoices are an integral aspect of billing. Many firms still use relatively manual techniques to prepare invoices, such as Excel templates. While this may appear to be a cost-effective solution, the time spent preparing invoices and the lack of connectivity between your data can be quite damaging.
Using technologies that can produce invoices for you is far more efficient. Online invoicing systems ensure that your invoice sequences are correct and that all items are correctly tallied. Furthermore, when coupled with platforms such as payment processing or accounting software such as Quickbooks, you will gain greater visibility into your company’s finances.
