How Interchange Plus Pricing Can Save Money

interchange plus pricing y2payments

Looking to save money on your payment processing? You’re not alone. This service is one of the most often cited headaches for small business owners, and it’s pretty common to look around for different payment processors to help lower those fees. The reality, though, is that it may not be the payment processor you’re frustrated with. Instead, it may be the pricing model itself.

Four Very Different Models

As you begin to consider different payment processing companies, you’re going to see four main models. The first is the most common – tiered pricing. It sorts your transactions into three different tiers: qualified, mid-qualified, and non-qualified. Transactions meet various requirements to fall into a given tier (processors call these ‘buckets’). For example, if the card is present and it’s processed on the same day, it might fall into the qualified category. If it’s an online transaction, it may fall into an entirely different category.

Tiered pricing simplifies things considerably, but you don’t get a chance to see what the processing company is really charging you. Subscription pricing is the second model, and in this case, you pay a membership fee as well as a per transaction fee. It can be a fairly inexpensive way to process your payments, but not very many companies are willing to offer it.

Flat fee payment processing is the third type, and it’s a bit like tiered processing, but it generally takes the three tiers and blends them to offer you a single even rate. That rate, though, can be a bit high. Interchange-plus pricing is the most transparent of these models. It breaks down every single charge you pay, both those that go to the issuing bank and those that go to the processor. This tends to make things more complicated in terms of reporting, but it usually costs less.  

The Right Online Payment Services

So, which one is right for your company? You’re going to have to think carefully about the various kinds of transactions you move through on a regular basis. You may also have to see which payment processors are competing for your business to see what’s available to you. While tiered and flat fees seem easier to deal with, interchange pass through services are typically the cheapest option. Searching terms like “what is interchange plus pricing” is likely to yield several examples that will help you put some numbers on potential transactions you might use in your store, which may help you make a solid decision.

To learn more about interchange plus pricing and have all of your payment processing concerns answered, contact us today.

PCI Compliance and Your Business – An FAQ

PCI Compliance Y2Payment Systems

Accepting credit cards within your company? You probably need to know a bit about PCI compliance. Take a look at a few of the most frequently asked questions now.

What Is PCI Compliance?
PCI Compliance is a 2006 global policy to help protect credit card holders. Major credit card brands, including American Express, Discover, Mastercard, and Visa, have mandated that businesses have to remain compliant the policy if they utilize credit cards.

Do I Need to Worry About Remaining Compliant?
Anyone who processes cardholder information has to be PCI compliance. It really doesn’t matter how often you do so. If you hold that information, or even if you exchange it, you have to be compliant. Even if you process a single transaction each year, compliance is an absolute must.

Are There Consequences Involved?
If your company isn’t compliant, there are several consequences involved. They typically start with a simple warning, but the Card Associations can fine your company or even revoke your right to process credit card transactions at all.

Is It Hard to Be PCI Compliant?
It’s easier than you think to become PCI compliant. Typically, it’s just a matter of working with a payment processing solution that helps you become compliant. Any provider will offer the multiple layers of defense and secure data protection model necessary to help encrypt the information going from one place to another, a must in the world of compliance.

There are four levels of PCI compliance, depending on the size and type of business you run, and we can help you decide which one is right for your company.

Learn just how easy it can be to become PCI compliant when you work with us. Contact Y2Payments today to learn more.