You’ve been accepting credit card payments for a long time now, and you think you have everything covered. But how do you know you’re getting the best prices and services?

Does your pricing model match your business model?

There are three types of pricing models in the credit card processing industry. Do you know which one your business is set up under or which one best suits your business’ needs?

No Monthly Fee Pricing Model – it sounds great, one less fee to worry about. It is wonderful for businesses just starting out. If you have been processing for a while and have built a good customer base, it isn’t always the best option., Once your customer base is built, your business could be paying more on a no monthly fee model than those traditional merchant accounts, even at a flat rate of 2.9% and $0.30.

Tiered Pricing Model – with this pricing model you get a general idea of what you are charged per transaction since the rate is based on card type. For example, personal credit/debit cards come through at the qualified rate, whereas corporate and international cards come in at the non-qualified rate.  You may want to take a look at your statements because there could be room for improvement, especially if you’re selling B2B.

Interchange Plus Pricing Model – otherwise known as cost plus pricing, is the fee that processing banks are charged by Visa, MasterCard, and Discover to process credit card transactions. Interchange plus means you are getting charged the amount the processing banks are charged, plus a small percentage to help the processing bank cover overhead costs. Think of it like an employee discount without having to work for the processing bank. This pricing is as good as it gets and provides businesses the best rate. This pricing model is ideal for businesses processing high volumes, B2B businesses, and wholesale businesses.

What services are included in your business’s credit card processing fees?

Payment Gateway – The payment gateway is the tool that communicates the credit card transactions to the processing bank. With some merchant account providers, the gateway is included at no additional cost.

Advanced Fraud Tools –Advanced fraud tools are necessary to protect your business. Security in no longer a luxury for online business, but a necessity. You should check to see if your merchant account provides all of the necessary tools to protect your business at no additional cost.

PCI Compliance – All payment processors need to be PCI Compliant, and they expect your business to be as well. If your business has a security breach, your business is liable and additional fees will be incurred by your business if you aren’t PCI Compliant. So what does that PCI Compliance fee cover?

If you are paying extra for your payment gateway, fraud tools, or PCI Compliance fees, you may not have the right solution. There are solutions out there that won’t charge you those additional fees. You can be very smart about who you use to process your payments or you can gain the smarts by using the wrong payment processing services.

This was a guest blog post by Persolvent. Persolvent is one of 3dcart’s preferred payment processors with 20+ years in the industry. Contact Persolvent today at for a free statement analysis. If Persolvent can’t meet or beat your current rates – Persolvent will pay you $100!


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