9/25/2023 0 Comments Square transaction fee amount![]() For this reason, Interchange is a better deal - there are no non-qualified tiers for different card types the rates are just passed through for each transaction. For most merchants on a tiered plan, the majority of transactions will fall under a mid or non-qualified tier with a higher rate than the low 'qualified' tier. ![]() Other merchant account providers may also bundle rates or quote tiered rates and other rate structures, but the provider always has to cover the costs of various interchange fees and assessments, so tiered rates are usually padded towards the side of covering the processor's costs, meaning they are high enough to ensure profit for the processor. Encrypted card readers are available too for a reasonable price, so if your volume warrants, processing with your own MX merchant account is a good business decision. MX Merchant includes a free cloud-based App for the iPhone or iPad that is freely available in the Apple App Store, and allows you to run transactions at our Interchange rates. If you are considering a service like Square because of the free card reader, consider that they can afford to give everyone free card readers because they charge higher transaction fees. Interchange is the best equivalent of wholesale for credit card processing, and the vast majority of Interchange rates are significantly less than the 2.75% and 3.50% rates charged by Square and others who quote bundled or tiered rates. On a $100 sale, Square would charge $2.75, while our processing would be $2.04 on this transaction. Our standard quote adds 0.20% + $0.10 to this transaction, resulting in a much lower rate. ![]() Square combines these first two components of cost with its own markup, and then bills its customers their single rate of 2.75%. Adding these costs gives us the "wholesale" rate of 1.62% with a $0.1185 transaction fee. Visa makes money by charging an assessment of 0.11% and $0.0185 on the same transaction. These fees are non-negotiable, and there are no discounts for anyone, even huge providers.įor example, banks charge businesses an interchange rate and transaction fee of 1.51% and $0.10 each time a business swipes a particular Visa consumer credit card. MX Merchant is a smart way to accept payments with super-low rates and more features including an Internet gateway for website ordering and payments, email invoicing, free point-of-sale software and recurring billing.Īll credit card processing services, including services provided by Square, PayPal, and any other bank or merchant account provider, are required to pay the Interchange fees charged by card issuing banks and assessments that Visa, MasterCard, and Discover charge. ![]() For most merchants, our pricing and service are going to be a better alternative. We take every step possible to price our plans low, but for some merchants, Square or other providers like PayPal might be better values. Understanding the way credit card issuers, banks, and processors work will help you make an informed decision about what provider / processor is right for you. OUR QUOTES - INTERCHANGE PLUS MERCHANT ACCOUNTSĬredit Card processing rates are admittedly a complicated and boring subject. ![]()
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