Connected Pay has formed strategic relationships with leaders in the payment card industry to offer merchant accounts at "interchange plus" pricing. For an informative post on interchange rates see What are Interchange rates? or view the "Understanding Interchange" label. In summary, Interchange plus means that the Merchant Account Provider (Connected Pay) passes through whatever they are getting charged plus a markup for their services.
Depending on the size/risk of your business, market pricing dictates a markup anywhere from 0.20% to 1.00% plus $0.02-$0.20 / transaction. Historically only the biggest merchants with the most negotiating power were able to get interchange plus pricing but the market is getting increasingly competitive and merchants are becoming better informed due to the internet and smaller companies are now able to negotiate in this way. Since all transactions are electronic, why would you want to pay more under a tiered pricing structure when the transaction run through the same electronic network?
Q: Why would a merchant want to be set up under a tiered pricing structure? A: The structure is simple and it is easier to quote rates on general transactions. However, this structure tends to be a higher cost option.
As Connected Pay was established by CPA's, transparency of information is critical. Merchants must know what terms and conditions they are entering into before signing a contract. With interchange plus pricing all information is available and posted on the internet. Click on this link for Visa Interchange rates. Click on this link for Mastercard Interchange rates.
To take advantage of interchange plus pricing, contact Connected Pay today. Whether you are a prospective merchant or a seasoned veteran, Connected Pay will work to find a solution that works for your business. Call Joe today @ 816.268.0136.
