Merchant Service
Rates
Eliminate Your Credit Card Processing Fees
Our Cash Discount Program is a revolutionary payment platform that allows merchants to eliminate their credit card processing fees. In the past, merchants had to absorb the cost of credit card transactions. Due to changes in card network rules, merchants now have the option to charge different prices for cash and credit card transactions. With MerchantService.com merchants pay a fixed monthly price for unlimited processing.
- Without making any changes to prices, simply notify your customers that the listed price is the cash price.
- Terminal applies the standard adjustment for credit to all purchases.
- Cash and Gift Card payments automatically receive the discount.
- The amount of the discount is predetermined and built into the proprietary software.
Offering the Most Competitive Rates in the Industry
Our Company offers the most competitive program in the industry today Interchange Pass Through. Our program provides the lowest overall cost of service, by passing through the direct cost for Interchange Fees and Assessments with a small markup in order to provide your business with the most reliable service and support.
It is important to understand that comparing quotes from one merchant service provider to the next can be very difficult. Rates will vary depending on the pricing method, type of card, the manner in which the card is processed and your adherence to qualifying criteria associated with the sale.
Interchange Pass Through (IPT)
As a business owner you have enough to do without having to figure out how Credit Card Interchange works. The good news is it's not that complicated. Interchange consists of different percentage and transaction fees that an Issuing Bank (Cardholder's Bank) charges an Acquiring Bank (Merchant's Bank) to process one of their cardholder's credit cards. There are hundreds of different interchange fees, what is important is to understand that interchange is essentially the wholesale rate that banks charge each other in order to process a credit card transaction. In order to pay the lowest fees when processing credit cards, a merchant's goal is to pay as close to interchange as possible.
| Services | Competition | US |
|---|---|---|
| Application Fee | $95 - $250 | Free |
| Setup Fee | Non-Refundable | Free |
| PCI Compliance Fee | $120 - $199 Annual Fee | $10 per month |
| Representative | NO | Dedicated Account Manager |
| Equipment Programming | Handled by Third Parties | 24 - 48 Hrs |
| Average Approval Time | 2 - 4 days | 1 - 2 days |
| Technical Support Hours | 9am-5pm Monday-Friday | 24 x 7 x 365 |
| Retail Discount Rate (Face-to-Face Sales) | 1.69% | 0.35% IPT* |
| Internet/Mail/Phone Order Discount Rate | 2.75% | 0.50% IPT* |
| Transaction Fee | $.25 - $.35 cents per trans | $.10 - $.15 cents per trans |
| Statement Fees | $10 - $20 per month | $10 per month |
| Supporting Bank | ??? | Wells Fargo Bank |
Rate Comparison based on 0.35% over Interchange
| Tiered Example Rates: | I.P.T. Example Rates: |
|---|---|
| Visa Regulated Check Card | Interchange Cost 0.16% with Assessments |
| Example: 1.69% | Our Rate: 0.41% |
| Visa Rewards 1 Card | Interchange Cost 1.76% with Assessments |
| Example: 2.69% | Our Rate: 2.01% |
| Visa Commercial Card Retail | Interchange Cost 2.56% with Assessments |
| Example: 3.19% | Our Rate: 2.76% |
Rates based on April 2021 Visa® Interchange Reimbursement Fees and Assessments
Beware of Tiered Pricing Programs
Most merchant account providers quote a "rate as low as" rate, this rate is generally what they call their Qualified Rate. Most tiered merchant accounts have a base rate plus two additional tiers that carry a surcharge when the type of card or acceptance method does not fall into the qualified tier. In this type of pricing method you are almost always paying well above the interchange cost for all surcharged transactions. Interchange Pass Through Programs only have one discount rate that you pay above the True Cost to accept a card.
| 3-Tier Merchant Rate Structure: | 4-Tier Merchant Rate Structure: |
|---|---|
| Qualified Discount Rate (Base Rate) | Debit Discount Rate (Check Cards Only) |
| Example: 1.69% | Example: 1.29% |
| Mid Qualified Surcharge (Qualified Rate + Mid Qualified Surcharge) | Qualified Discount Rate (Qualified Rate) |
| Example: 1.69% + 1% = 2.69% | Example: 1.69% |
| Non Qualified Surcharge (Qualified Rate + Non Qualified Surcharge) | Mid Qualified Surcharge (Qualified Rate + Mid Qualified Surcharge) |
| Example: 1.69% + 1.5% = 3.19% | Example: 1.69% + 1% = 2.69% |
| Non Qualified Surcharge (Qualified Rate + Non Qualified Surcharge) | |
| Example: 1.69% + 1.5% = 3.19% |
