WPS works with our clients to find the merchant services that best suit their needs. For credit card transaction pricing, clients have two options for payment. Our team is here to discuss the options and find the one that best fits your business and budget.
The Interchange Plus pricing structure is the most standard and straightforward pricing structure for accepting credit card transactions. Interchange Plus pricing means that the acquirer charges the customer a variable merchant service commission consisting of the cost price plus a fixed markup. The merchant service commission will vary between transactions depending on a number of characteristics including but not limited to the card type, channel (call center, e-commerce or point of sale) and security measures (3-D secure, card verification code).
The Interchange fee is an important factor in determining the actual cost of accepting credit cards. Interchange pricing is what the credit card issuers (Discover, Visa, MasterCard, American Express) along with credit card issuing banks, charge merchant account providers to process credit and debit card transactions. The merchant account providers then charge a markup on the interchange known as Interchange Plus pricing to process the transaction and provide customer service to the merchant accepting the credit or debit card payment.
The Flat Rate pricing model is where a client is charged a fixed percentage of the volume charged. Some Flat Rate models do include a per transaction fee as well. Each credit card transaction includes three separate fees. The interchange fee is paid to the bank that issued the credit card. A fee is also paid to the credit card brand such as American Express, Mastercard, Discover or Visa. The third component is a fee to the credit card processor as a markup.