The Cheapest Merchant Services for Small Business Will Match You
Every business owner has a list of priorities they hope their merchant account can encompass. If you’re a small business owner, favorable pricing is near the top of your list. We are absolutely confident that we have the cheapest merchant services for small businesses. PayFrog’s rate match capability ensures this is a 100% guarantee. Our only reason for not matching a competitor’s rate is because we can beat it.
Pricing Models Can Be Complicated
Almost all merchant accounts will follow one of four models, and you’ll want to make yourself familiar with them while searching for the cheapest merchant services for small business:
Bill back:
This pricing model is the worst of all pricing models for small businesses. Merchants are charged an initial flat rate for transactions. Then the processor bills the remaining downgrades and surcharges usually on next month’s statement. This pricing model was created to intentionally deceive business owners because sales reps obfuscate pricing by quoting a low fixed upfront rate and neglecting to educate owners on the sizable wave of complicated surcharge fees starting on their 2nd month’s statement.
Flat:
Typically, this model does not have a set monthly fee, which makes it attractive to small business owners who process very small volumes. Flat pricing usually has 1 simple rate that is charged. That one rate applies to all transactions. The simplicity of this method comes with a higher price tag.
Tiered:
This pricing model is most common among merchant services companies. It’s typically cheaper than bill back and flat pricing, but more expensive than Interchange-Plus. The exception to this is if you’re a subscription merchant. If you offer products or services online that are charged to your clients’ cards on a regular basis, tiered pricing might be right for you. It usually offers you three rates; qualified, mid-qualified, and unqualified. They can be a hazard for small businesses because many small businesses cannot meet the standards for the cheapest rate, qualified, and therefore are stuck with the most expensive rate. Where flat pricing has 1 layer, tiered pricing splits that into 3 layers.
Interchange-Plus:
The Interchange-Plus pricing model is the best choice for businesses seeking the cheapest merchant services plan. It gives you a step-by-step description of where the card charges are going, and the fixed price of the processor fees added during the process. The Interchange portion of the rate is the amount the processor pays to the card brands (ie. Visa, MasterCard, Discover, and American Express). Interchange is basically the true wholesale cost that processors pay for transactions. All processors pay the same interchange cost nationwide. The “Plus” portion is what the processor is charging you as their fixed profit margin for processing every transaction. Transparent billing equates to lower overall fees.
We Simplify Things
If you’re not accepting credit cards yet, you can sign up with Interchange Plus Pricing here. Or, give us the quotes you received from competitors, and we can show you how much better we can do.
If you’re already accepting credit cards, just provide us with your previous two months of billing statements by uploading them to our Custom Price Quote page. We’ll send you a savings report including a complete side by side comparison.
If you’re locked in a contract right now, send us a copy of it and sometimes we can pay the early termination fee to your previous processor when you switch to us.
No matter where you’re starting from, you’ll receive a simple and easy to understand price comparison from us with a calculated savings report. The savings report will include a detailed monthly, annual, and 3-year savings projection. Plus, with our locked-in pricing, you’ll be protected from rate hikes and annual fee increases that are so common with other providers.
We want your small business to grow financially, even if its square footage stays the same. The healthier your business is, the happier we both will be! The cheapest merchant services for small business is waiting for you:
