When setting up a payments system for your business, it is important to do your research. Not only is it critical for you to get paid for your products and services, you also need to know how each potential option affects your bottom line. Interchange plus pricing and tiered or flat rate pricing both have their benefits, but it is also smart to understand how each works so you can make the best decision for your operation.
Interchange plus pricing is traditionally reserved for large companies and has the lowest possible costs for accepting cards as a form of payment. Fees applied to transactions are upfront, with rates determined on a per-card basis. Tiered pricing is the most common form of pricing for credit card processing services. This is also known as “bucket pricing,” and prices are usually high enough to cover fees.