There are three basic pricing models used in the processing industry. We have broken out these structures to further help you understand exactly what you are paying for processing credit cards.
Cost-Plus Pricing is the future of payment processing. Cost-Plus pricing isn’t tiered, and it doesn’t hit you with shifting base rates or surcharges. The interchange cost is passed on along with a fixed fee to process the transaction.
Result: It’s the pricing structure we use at Infintech and it offers complete transparency so you always know exactly what you’re paying. Structuring our pricing exclusively this way allows us to provide a lower base rate for you… always.
Tiered Pricing structures are the most common. The processor offers you three or four rates, often referred to as Qualified, Mid-Qualified or Non-Qualified. The processor determines what “qualifies” and what doesn’t.
Result: You have no way of controlling the cost of any transaction.
Differential Pricing is common with banks. Your business gets a set base rate. Then the processor can adjust the fee with surcharges if your transactions cost more to process. Additional margin is typically built into these surcharges.
Result: You have no way of controlling the surcharge costs.
Most processing payment companies have a second trick up their sleeve to increase your fees and boost their profits. Not Infintech.
