Pricing for Payment Processing Made Simple.
Why choose Impeccabyte for payment processing?
Transparent Pricing for Every Business Size
Maintain Control Over Your Processing Costs
Expert Guidance from Local Specialists
Pricing Models: Explained (finally…)
We’re here to help you navigate the options and find the best fit for your business.
Knowing your payment processing pricing options isn’t just about comparing numbers; it’s about taking control of your business’s financial health. Every transaction your business makes impacts your bottom line, and the fees associated with those transactions can add up quickly.
Making an informed choice about your merchant service pricing means more money stays in your pocket, contributing directly to your business’s growth and success. Don’t let processing fees eat away at your hard-earned revenue—understand your options and choose wisely.
Interchange Plus (IC+)
Overview
With Interchange Plus pricing, you get to the see the true cost of each transaction, making it easy to track and understand your fees.
Interchange Plus is ideal for businesses with higher transaction volumes who want to minimize costs.
Explanation
Interchange Plus or (“IC+”) pricing is the most transparent pricing method available for merchant services and consists of two pricing factors:
1. Interchange fees
2. …plus the processor’s competitive rate
Why would a business elect for Interchange Plus pricing?
Businesses elect to use Interchange Plus pricing primarily for its transparency and potential for cost savings, especially for businesses with moderate to high processing volumes.
The base interchange rate can vary between 0.85% and 1.70% per transaction in the United States. The rate is determined by which type of card is used to make the purchase.
At Impeccabyte, we always clearly itemize interchange fees and our competitive markup on your statement, so you’re never left confused after reviewing your merchant statement.
Tiered
Overview
Tiered pricing categorizes transactions into different groups, or “tiers,” with each tier having a distinct processing rate. These tiers, typically labeled as “qualified,” “mid-qualified,” and “non-qualified,” are determined by factors such as the card type (e.g., standard debit, premium credit, rewards card) and the transaction method (e.g., card-present swipe, online entry, keyed-in).
The tiered pricing structure is often presented by traditional merchant service providers and can be found with a wide range of payment processors.
Explanation
Tiered pricing breaks down processing fees into different categories, meaning the actual rate you pay can vary significantly based on how a transaction qualifies within these predefined tiers. While it might appear to offer lower rates for certain “qualified” transactions, the complexity lies in understanding which transactions fall into which tier.
Example of Tiered pricing:
- Qualified 1.59% + 0.15¢ per transaction
(standard debit cards, swiped in-person) - Mid-qualified 2.49% + 0.25¢ per transaction
(standard credit cards, swiped in-person; debit keyed-in) - Non-qualified 3.19% + 0.35¢ per tranaction
(rewards credit cards, keyed in, or card-not-present transactions)
Why would a business elect for Tiered pricing?
Some businesses, particularly those processing a high volume of transactions that consistently fall into the “qualified” tier, might be quoted an attractive low “qualified” rate. They might elect for tiered pricing with the expectation of achieving lower overall costs if a significant portion of their transactions meet the criteria for the lowest tier.
Additionally, businesses that prioritize the perception of a low “starting” rate might be drawn to tiered pricing, even if their effective rate ends up being higher due to transactions falling into mid- or non-qualified tiers.
Flat Rate
Overview
Flat Rate pricing offers a single, consistent percentage rate which is applied to all transactions, regardless of the card type or transaction method.
The flat rate pricing structure is found most commonly paired with out-of-the-box payment solutions including, but not limited to, services like Square, Stripe, and Shopify.
Explanation
Flat Rate pricing offers consistency: every transaction is subject to one fee across the board. This ensures predictability and ease of budgeting.
Example of Flat Rate pricing: 2.9% + 0.30¢ per transaction
Why would a business elect for Flat Rate pricing?
For businesses with limited accounting resources, the Flat Rate pricing model makes it much easier to track and reconcile processing costs. There’s no need to decipher complex statements or analyze individual transaction fees.
For businesses with very low monthly processing volumes or those that rarely accept credit cards, flat-rate pricing can sometimes be the least expensive option overall. This is because many flat-rate providers don’t charge monthly account fees, only the per-transaction fees.
Non-cash Adjustment
Overview
Non-cash Adjustment pricing, often called “cash discount,” presents a model where all customers are offered a lower “cash price” for goods and services. A small fee is then added to transactions paid for with a credit or debit card, effectively offsetting the merchant’s processing costs. The goal is to encourage cash payments while passing the cost of card acceptance directly to the customer who chooses to use a card.
This pricing structure is typically offered by specialized merchant service providers, like Impeccabyte, who provide compliant point-of-sale (POS) systems and signage necessary to implement the program.
Explanation
Non-cash adjustment pricing flips the script: instead of the business absorbing credit card processing fees, those costs are passed directly to the customer when they pay with a card. Essentially, a business displays a cash price for all items, and if a customer chooses to pay with a credit or debit card, a small service fee is added to their total. This means businesses receive the full advertised price for their goods or services, regardless of how the customer pays.
Why would a business elect for Non-cash Adjustment pricing?
The primary reason a business chooses non-cash adjustment pricing is to eliminate or significantly reduce their credit card processing costs. By passing these fees onto the customer, businesses can boost profit margins, simplify cost management, encourage cash payments which, in turn, reduces risk of chargebacks, and compete on price when it comes to selling their products and services.
Subscription
Overview
Subscription pricing, sometimes referred to as “membership” pricing, involves a fixed monthly or annual fee paid to the merchant service provider, regardless of the transaction volume. In exchange for this recurring fee, the business often gains access to near wholesale interchange and network costs, with little to no additional per-transaction markup from the processor. The goal is to provide businesses with predictable and potentially very low overall processing costs, especially for those with high transaction volumes or large average ticket sizes.
Explanation
Subscription pricing operates on a different principle entirely. Instead of paying a percentage of each transaction to the processor (beyond the direct interchange and network fees), a business pays a flat, recurring monthly or annual fee. In return for this subscription, the processing fees for individual transactions are significantly reduced, often to just the direct interchange and network costs set by the card brands. This model aims to provide maximum transparency and the lowest possible per-transaction cost by separating the processor’s profit from the volume of sales.
Why would a business elect for Non-cash Adjustment pricing?
The primary reasons a business chooses subscription pricing are to maximize cost savings for high processing volumes and gain unparalleled predictability in their processing expenses. By paying a fixed monthly fee, businesses can drastically reduce per transaction costs, achieve predictable overhead, and boost profitability on high-value sales.
As a business’s sales volume increases, the fixed subscription fee becomes an even smaller percentage of their total processed volume, leading to continuous cost efficiencies as they grow.
Like Interchange Plus, subscription models typically provide clear breakdowns of interchange and network fees, ensuring businesses understand exactly what they are paying beyond their flat monthly fee.