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Follow on Google News | Interchange-Plus Pricing - Changing the Face of Merchant Credit Card Processing?Interchange-plus pricing is a model once reserved for only the largest of merchants. In the simple terms, interchange plus takes the fees charged by Visa and MasterCard and adds a fixed percentage to compensate the merchant service provider.
By: Kevin Sarisky A common practice is to quote a lower rate for a merchant's qualified transactions, usually in the neighborhood of 1.65%. The merchant is so excited by the low rate that he/she signs up for the new account without paying any attention to the mid and non qualified rates which can be as high as 5%. The result is higher total processing fees due to a majority of the merchant's transactions downgrading to the mid and non qualified buckets. (Most merchants process 75% of their transactions as mid and non qualified) This tactic along with many others has made the topic of credit card processing a sore subject among merchants. In the attempts to gain clientele, some processing companies have decided to offer interchange- Interchange- The nice thing about this model is that the merchant always knows the markup regardless of the card type being swiped. For example: * a qualified card cost is interchange for qualified card plus 30 basis points * a rewards card cost is interchange for a rewards card plus 30 basis points * a commercial card cost is interchange for a commercial card plus 30 basis points etc... Interchange plus pricing is a step in the right direction for an industry that has been a victim of unscrupulous and deceitful practices for very long time. Now if we can just get rid of all the equipment leasing scams. Contact: Kevin Sarisky Merchant Solutions 2239 West 190th Street Torrance, CA 90504 (424) 212-9500 ksarisky@merchantsolutionsiq.com http://www.moourl.com/ # # # Merchant Solutions IQ (MSIQ) has broken the mold for credit card processing accounts, setting up merchant accounts without the high fees and arbitrary overcharges. A premier provider of merchant accounts and credit card processing solutions. End
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