Why would you want to know your merchant services pricing model? Well, the fees associated with payment processing affect your business in a way that some pricing models are better than others. You should make sure that you’re on the plan that’s most helpful to your business. Also, once you know how to identify the pricing model on your merchant services statement, you can read your statement much easier.
If you read the terms “qualified”, “mid-qualified”, or “non-qualified” on your statement, you most likely have a tiered plan. These terms could also appear as qualified, mid-qualified, or non qualified.
A flat-rate credit card processing statement will look simple, a little too simple. In this model, the processor is charging the same rate regardless of card brand and payment type. If you use Square, Stripe, and PayPal, you have flat-rate pricing. Be wary of a processor that condenses all of their monthly fees and the cost per transaction into one lump sum. If you process a lot in credit cards, this will be a more costly model.
It is easy to identify an interchange-plus credit card processing statement, but not so easy to read it. They can be identified by locating sections called “Pass Through” or “Pass-Through Fees” as well as “Interchange Fees.” These fees are itemized on an interchange-plus credit card processing statement because this pricing model is made up of two parts. One part is the interchange, dues, and assessments, which are costs the payment processor must pay for simply processing the transaction for you.
The second part is the processor profit portion on your statement or the discount rate.
Another way to spot an interchange-plus statement is the itemization of interchange details. A row describing transactions will most likely read, “VISA CPS RETAIL @ 1.55% + $0.10” or something of the sort. This extra detail shows you the specific charges you’re paying per transaction based on the type of payment (debit, credit, rewards, etc.).
Do You Know How to Identify the Pricing Model on Your Merchant Services Statement?
Now that you know how to identify the pricing model on your merchant services statement, do you have the right one? As we mentioned before, all payment processors cover your interchange fess through your monthly bill, but only the interchange-plus pricing plan itemizes them for you. With this plan, you can feel free to call your merchant service provider if something doesn’t look right on your statement. If you’re still having trouble identifying what pricing model you’re on, please send your last three months’ bills to our match or beat rate tool. We’ll switch you to the plan you want and guarantee a rate match or better.