How To Save On Merchant Services Fees

You will agree that processing costs are not the least important factor which you take into account while choosing a payment solution for your business. In order to reduce your costs you need to optimize the size of merchant services fees you pay. If you want to do that you need to be aware of the structure of merchant services fees.

Merchant services fees consist of the following three types:

Interchange fees. They can also be called processing fees and include interchange itself plus per-item fees. They can vary depending on the type of transaction processed.

Flat Fees. They are charged in addition to processing fees if a merchant needs to process some specific transactions such as chargebacks, declines or ACH returns.

Subscription fees. They are charged on a monthly basis for the usage of a merchant account, PCI compliance of some other services.

Traditionally the processor’s revenue is 1% of the processed transaction volume. Consequently, the merchants with higher processing volumes are going to have lower processing fees due to the amount of transactions they process. In cases when the processing volume is not high subscription fees can be applied in order to compensate the resources used for the merchant account support.

Do you want to find out more and to see the illustrative examples which show how the things are actually organized? Visit #Paylosophy and read the full article describing the structure and the essence of the merchant services fees.