Interchange Payments Through Multiple Devices

Rate Comparison

Sale Amount	SquareCredit and Debit2.75%	TieredMid Credit2.25% + 20¢	TieredRegulated Debit1.59% + 20¢	Our RatesCredit1.85% + 20¢	Our RatesRegulated Debit0.16% + 32¢
$5.00	$0.14	$0.31	$0.28	$0.29	$0.33
$15.00	$0.41	$0.54	$0.44	$0.48	$0.34
$25.00	$0.69	$0.76	$0.59	$0.66	$0.34
$50.00	$1.38	$1.33	$1.00	$1.13	$0.40
$100.00	$2.75	$2.45	$1.79	$2.05	$0.48
$1000.00	$27.50	$22.70	$16.10	$18.70	$1.92

Interchange + .20% + $0.10

Our rates are designed to be low and simple. Unfortunately, card processing is not simple. There are many types of cards issued by various financial companies with different fees associated with each card's use. Many payment services 'simplify' things by offering a bundled or tiered rate plan for merchants. When looking, you will find services like Square that charge a bundled rate of 2.75%, or your bank may offer a tiered plan with multiple rate structures. For most merchants, our Interchange-based rates will be significantly lower than tiered or bundled plans because we start with the cost of each transaction to calculate the transaction fee. Tiered or bundled rate providers simply set a rate high enough to guarantee they will profit. The differences may seem small, but if you are processing any significant volume, these differences add up. If you are accepting card payments, our rates can save you hundreds or more each year. Plus, we're including the gateway for Internet-based payments, adding to your savings each month.

For example, when a customer pays you with a regulated debit card from their bank, our Interchange rate passes the debit fee to you, resulting in a fee of .16% + 32 cents. On a $1000.00 sale, the processing fee is $1.92. On a bundled rate of 2.25%, you would be charged $22.50. In this scenario, our rates would save over $20.00 on this transaction. Higher ticket sales and higher volumes result in lower fees when priced with Interchange.

Interchange vs. Tiered

Some processors set tiered rates for merchants, with several levels for various transactions. On the above transaction, a tiered plan at the qualified tier of 1.59% + .25 cents, the processor's fee is $16.15, compared to our processing fee of $1.92. Further, on a tiered plan, most merchant's transactions fall under mid or non-qualified rates, landing most of their charges in higher rate categories.

Gateway Included for Web Transactions

We're including the MX Merchant payment gateway with our Interchange plans, allowing you to process charges through your phone, computer, iPad, and website! We can help you add fully-integrated online ordering to your website. No additional gateway service is needed, adding to your savings if you'd like to accept orders and process transactions on your website.

Bottom Line

The bottom line is that if your are low volume with very low transaction sizes, Square, PayPal, or other fixed, bundled rate payment services will be lower for you. The higher your volume and average transaction size, the better our Interchange pricing is for you. If your customers are using regulated debit cards (which they probably are), Interchange is even further better than any tiered rate structure. The comparison table uses a low sample tiered plan showing qualified and mid-qualified rates. Most tiered plans have higher costs than this sample and further place transactions into non-qualified tiers that usually result in higher fees not shown in this comparison. If you are just more comfortable with fixed-rates, contact us and we can offer you a bundled rate plan that is lower than Square or any other processor you are considering.

See also: Interchange vs. Square & Stripe

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