In this article, we will talk about the different fees involved in the whole process of card transactions. Also, we will discuss the different kinds of full-time service fees offered by the business to the processor.
What are the different fees involved in card transactions?
Mostly when a business takes card payments, they have to choose between three price models. Also, they will have to research and carefully select the model according to their liking and suitability. The price model will depend on the number of card transaction that takes place in a day inside your business.
If you want a processor to make and take payment, they are called flat-rate pricing. You can also use a mobile phone card swiping machine and also a card reader to take and make payments. Below mentioned are some of the price models in the card transaction.
- Flat rate pricing
This is known to be the simplest of all the different payment modules. Their rates might fluctuate due to the rise in the number of transactions in the market. This is cost-effective for businesses as they can just pay only $3000 a month. They are no presence of extra fees or the fees included for the making and filing of the form and documents. This type of price model is seen when a company deals with a payment processor.
- Interchange plus pricing
In this type of price model, the merchant will pay only the wholesale amount of the rate. Along with the processor’s fee, they have included the charge to process the payment between two parties. This rate is set by the card processor company and the bank which has issued the card. There is a different kind of charges set for a different brand of cards in the market. This pricing model is favoured by industries as there are used to maintain maximum transparency.
- Tiered pricing
This is the mixture of all the different kinds of transactions made in only one charge. The qualified card will have a less amount rate when they are processed. The mid-qualified will have more charge compared to the qualified one. The most charge is taken from those who are non-qualified in the market.
What is the different full-time process fee taken by industry?
Below given is the list of different fees taken by the processor for full-time services.
- Monthly fee
This is a fee that has to be paid by the business to the processor company for using their service.
- Gateway fee
This is a fee which is charged because the processor has made a gateway where customer can make an online payment.
- PCI compliance fee
This fee is too paid so that a business can become PCI compliant with all the correct documents.
- PCI non-compliance fee
This is paid by the business when they are running their business without compliance with PCI.
PCI enables a business to take online and card payments.
- Monthly minimum
This is the regular fee that has to be paid by the business even if no transaction is done.