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CostPlus Merchant Solutions Inc, specializes in Interchange Plus pricing. Interchange Plus pricing is often reserved for very large merchants who have the scale and financial sophistication to insist on Interchange Plus pricing. At CPMS we level the playing field by making this pricing approach available to merchants of all sizes.
The idea behind CostPlus Pricing is simple:
- Get the best pricing;
- Eliminate hidden fees;
- Eliminate teaser rates;
- Qualify for the best rates;
- Eliminate surcharges;
- Total transparency of fees and costs.
CostPlus pricing, also referred to as Interchange Plus Pricing, is considered to be the best type of pricing a merchant can obtain besides Flat Fee Pricing. Interchange Plus takes all of the mystery out of the question that most merchants share, “What am I actually paying for my credit card service and what can I do about it?” This unique pricing will also eliminate all hidden fees and teaser rates.
What is Interchange?
Interchange is publicly published rates from Mastercard and Visa which the card issuing banks are compensated for the use of their particular card by a consumer, which is ultimately paid for by the merchant through the form of fees. In other words, Interchange is basically the Buy-rate. Each interchange rate is derived of numerous different variables including, the type of card presented, type of business, how the transactions are being processed, what information is included with the transaction, and other variables which equate to cover the banks risk and costs for the use of the particular card type.
How and why are rates tiered into groups?
Since there are hundreds of Interchange rates, processors can set up an account in a variety of ways. The most common is grouping the rates into tiers. Processors will create tiers, commonly referred to as Qualified, Rewards, Mid Qualified and Non Qualified, for two purposes. The first is that merchants have become more comfortable with “knowing” what rate they can expect to pay. The second is that tiered rates can produce significantly a very complex and difficult to identify profit generation model for the service provider. While the merchant believes they understand what they are paying, the secret is that the processor has complete control of what card types they put into what tier. It is impossible for a merchant to truly get and apples to apples comparison from one provider to the next because the card types in each tier are completely unregulated, so to compare one providers “qualified” rate to another’s can not be done by just identifying the rate itself. (For Example: if company A has a rate of 1.73% for qualified and Company B has 1.73% for qualified, you are not necessarily getting the same deal because one company may have put certain card types into that group while the other does not.) Talk about hidden fees.
The overall benefit of an Interchange Plus Or CostPlus Pricing.
CostPlus is simply a flat rate above true cost for all the card type that a merchant is presented. All processors pay the same interchange rates and build profit on top of these rates according to their company’s business model. Most processors reserve this type of a rate structure for their largest customers and are very hesitant to set up the general merchants within their portfolio of customers for primarily two reasons. The first is that Interchange Plus does not produce the same amount of profit, and second it is also extremely easy for a merchant who has Interchange Plus pricing to get an apples to apples comparative bid from another merchant services provider. Merchants can finally track true costs, gain complete control of their costs, and identify and evaluate the value for the services their merchant services provider provides vs. what they charge.
At CostPlus Merchant Solutions Inc , we offer Interchange Plus Pricing to all sizes and types of businesses. That is the only pricing we offer to %100 of our merchants - %100 of the time. Our CostPlus Pricing is designed to eliminate hidden fees and teaser rates. So “what is the catch?’ - there is not one. Please contact us and let us tell you about our Flat Fee Pricing which is even better than Interchange Plus Pricing. |
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