FULL SERVICE CREDIT CARD PROCESSING AT (0.00% + $0.20)!
UNDERSTANDING PRICING, RATES & FEES.....
When accepting credit or debit card payments, it's essential to understand how your fees are calculated. There are three common pricing models in the merchant services industry:
• Flat Rate
• Tiered
• Interchange
Each model includes a percentage rate applied to the total transaction volume, plus a fixed per-transaction fee. This structure ensures that the bank, the card association, and the processor all generate revenue from each transaction—similar to a tax on every sale.
Example Fee Structure:
(0.00% + $0.20)
Percentage Rate + Per Transaction Fee
Your actual cost per transaction is calculated by multiplying the percentage rate (including interchange, dues, assessments, or discount rate) by the transaction amount, then adding the flat fee.
Negotiable Fees:
Only the processor’s (acquiring bank’s) fees—known as the discount rate and transaction fee—can be negotiated. This is where you can potentially lower your costs.
Who Gets Paid in a Card Transaction?
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The issuing bank collects INTERCHANGE.
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The card association collects DUES AND ASSESMENTS.
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The acquiring bank collects the DISCOUNT RATE.
In addition to these, there's a fourth rate you should focus on to manage your payment processing expenses:
Effective Rate = Total Fees ÷ Gross Sales Volume
This is the true measure of your cost to accept card payments.
According to Bankrate, the national average effective rate in the U.S. is 2.70%.
Gregory McMahan’s portfolio maintains an average effective rate of just 1.94%, helping clients significantly reduce their payment processing expenses.
Need Help Lowering Your Rates?
Contact Gregory McMahan at (949) 891-3937 to learn more about reducing your merchant fees with Agents-Rate.com.
AVERAGE EFFECTIVE RATE REDUCED BY 27.9%
Since implementing our ZERO-PERCENT DISCOUNT RATE pricing in 2021, during the Covid-19 pandemic, our portfolio's average EFFECTIVE RATE has been reduced by 27.9% to 1.94%.
1.94% EFFECTIVE RATE
That’s real savings that go straight back into your business—whether it's used for staffing, inventory, or growing your operations. Our pricing is designed to cut out unnecessary costs, without changing the way you do business. You will immediately keep more of what you earn.