The important points on interchange plus pricing

Interchange plus until some time ago was a service available for large businesses only. If you are not familiar with the term interchange stands is kind of credit card processing pricing. The best way to explain [ http://interchangeplus.jimdo.com/ interchange plus pricing] is by explaining what interchange is first. Interchange is a type of credit card processing pricing that is considered to be the base of the credit card processing industry. The rates are determined by three factors: The industry type, how the card is processed and the type of the card processor. The fees are placed in more than 125 categories. However, the processors simplify staff by bundling all of them in three major categories: the hand keyed category, swiped and the biggest one the non – qualified in which category everything that is not part from the two other ones is placed. And if you are a small or medium merchant the bundle rate is what you could get. Well, until recently.

But, with interchange plus that`s not the case. With this service everything is much simpler and easier. With it everything is simplified and it`s by far the most cost worthy credit card transaction method. Aside the fact that you will pay match less for the same service you will be able really to tell what you are paying for. Anybody that had ever something to do with merchant processing statements knows how confusing they can be. That is so because too many people have a problem to figure out what is written in those reports even though they want and they need to do so. On the other hand with the interchange plus pricing everything is transparently shown. Every cost is broken down and showed as part of the three main areas of credit card processing cost. Comprehensive and understandable are the best words to describe this method.

What about the saving? Now when the transparency is well explained it`s time to get to the part on how the saving is done. First of all you need to know that the main cost comes from the interchange fees that go to the banks that issue the credit cards. The interchange plus pricing is a method with which the credit card process is optimized in a way that the transactions are done at the lowest possible price. That way you can effectively cut down the biggest part of the processing cost. This is known as optimizing interchange expense. With it a $29 transaction can go as low as 0.63 cents.