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 which is multiplied by the dollar amount of the transaction, plus a fixed transaction fee. This structure ensures that the bank, the card association, and the processor all generate guaranteed revenue from each transaction; even with a zero-percent rate!

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?

  1. The issuing bank collects INTERCHANGE.

  2. The card association collects DUES AND ASSESMENTS.

  3. 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.

Free Consultation