Let’s start out with a heads up: this is going to be a deep dive into business-to-business (B2B) and business-to-government (B2G) rates. If you’re new to payment processing, or need a refresher on Interchange, we suggest you start with our What is Interchange? FAQ. As a reminder: Interchange is a fee [...]
It’s the fairest model out there. Interchange-plus pricing works by adding a constant, flat margin on top of Interchange. So typically, Interchange-plus pricing models will also be written in the two component format, with a percentage fee and per-transaction fee above Interchange. This allows merchant service providers to price their accounts fairly, [...]
What is Interchange?It’s the underlying cost of a credit card sale. There are many entities involved whenever you process a credit card transaction. First, there is the acquiring bank, who Dharma represents. Dharma and other MSPs are referred to as Merchant Service Providers. As you will discover merchant services are varied, but the [...]
Let’s perform a few sample transaction so you can see how all of this works. In these example, we’ll use common consumer card types that retailers accept. (See Visa Consumer rates and Mastercard consumer rates). Bear in mind that specific industries will be subject to different rates, but these are [...]
It’s not that tiered pricing is inherently “bad”. It’s just that tiered pricing models typically don’t disclose the underlying interchange rates – which incentivizes merchant service providers to overcharge their merchants. If you’re on tiered pricing, it doesn’t necessarily mean that you’re getting an unfair deal. It just means that [...]
Telecheck fees are very straight-forward, at 1.50% of check volume, and $0.20/check transaction. Telecheck does not have a monthly fee or monthly minimum processing requirement. To sign up with Telecheck, you’ll be required to utilize Clover POS. There are no hardware requirements as long as you use Clover Station, Mobile, or Mini – that [...]
Where to begin?This seems like a basic question, but it’s often the most challenging part. One of the inherent problems when comparing costs in the merchant services industry is that providers use many different pricing models. Often times, it’s tough to compare different pricing models, since certain models intentionally exclude [...]