How Does Pricing Work?

Refund Ratio

Your refund ratio is defined by Visa/MasterCard as total count of refunds, defined by your total count of sales, for any given time period. For example – if during the month of January you processed 500 sales, and had 10 refunds, your refund ratio would equal 10/500, or 2.00%. This would be considered an acceptable refund ratio, per Visa/MC standards. Dharma …

Chargeback Ratios

Your chargeback ratio is defined by Visa/MasterCard as total count of chargebacks, defined by your total count of sales, for any given time period. For example – if during the month of January you processed 500 sales, and had 4 chargebacks, your chargeback ratio would equal 4/500, or 0.80%.

Comparing to a Tiered Pricing model

What is Tiered Pricing, and why is it bad? 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. …

What is Interchange?

Interchange is the underlying cost of every credit-card transaction. It’s what every provider pays back to your customer’s issuing bank.

Pricing Examples

See how a sample transaction breaks down, and learn where your fees go.

Check ACH Processing

Yes, Dharma does offer ACH merchant services check processing. We have three unique programs. The first is specifically for Clover POS merchants, offered by Telecheck.  The second is commonly known as “eCheck” processing, and allows “card-not-present” merchants to process check payments through a Virtual Terminal. The last is for “card-present” merchants who will physically receive paper checks, but …

Why can’t you tell me exactly what my rate will be?

We highly recommend reading through our “What is Interchange?” and “What is Interchange-Plus Pricing?” pages, as they’ll discuss this topic in more depth. But, we understand the desire for a quick answer. The answer to “Why can’t you tell me what my rate will be?” is Because Dharma’s fees are directly related to the costs Dharma …

What is the PCI Compliance Fee?

Dharma has a $7.95/month fee PCI compliance fee to complete the Self-Assessment Questionnaire (SAQ) and for web-scanning. Web scanning is required per PCI Compliance regulations for any merchant processing over an Internet (IP) connection – so this will impact online/virtual merchants, and any merchant who connects their credit card terminal to an ethernet (IP) connection. Dharma partners with …

What is the Voice Authorization fee?

Dharma has a $1.50/voice authorization fee. Most merchants will never utilize this service. A voice authorization is occasionally requested by Visa/MasterCard if there are potentially fraudulent indicators on a retail sale. For example, your customer may have recently placed a fraud alert on their credit card for large transactions, and is attempting to run a …