Credit Card Processing 101

Your Rates and Fees Simplified

Processing fees can range from less than a percent to up to almost 5% of each transaction! Have you ever wondered, where does my money go? Who actually sets the rates? Why do rewards cards cost so much more? How can I negotiate better rates for myself?

Payline Data is committed to educating our merchants so they can be empowered to make the right decision for their business needs. This article breaks processing rates and fees down so you can understand them and make educated decisions.

Pricing Strategies

To “lessen” confusion, merchant account providers typically compile all similar Interchange categories and bundle them into a few groupings such as qualified, mid-qualified and non-qualified. However, this is just one way merchant accounts can be priced. Some merchant account providers quote an “Interchange Plus” structure, which combines the actual cost of the transaction based on the Interchange category into which it falls, the applicable Assessment Fee, plus an additional specified value on top of each. Find out more about each of them in this easy to understand article.

Terminals, Gateways, Point of Sale (POS) and Equipment

In order to access the payments network, you will need either a terminal or a gateway. Some merchants use a more complex solution called a “Point of Sale” system, which is more like a computer with specialized software that does more than simply charge credit cards. Here is some info on each option, in order for you to make the best choice for your business. Find out more about each on this informative page or browse our products pages for more information and pricing.
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