Which Credit Card Processing Option is Right for My Business?

WPC Merchant Services & Credit Card Processing

The Two Primary Payment Processing Pricing Options

You might have asked yourself “How do I accept credit cards for my business?”. Most business owners hire third-party card processing merchants to set up card payment services and serve as the middlemen between their business and credit card companies. These merchants typically offer two types of credit card processing pricing options:

● Flat Rate

● Interchange Plus

Flat Rate

Flat Rate pricing is a popular credit card pricing option that charges a fixed transaction amount plus a fixed percentage fee on each transaction. For example, a merchant may charge your business 2.9% discount rate plus .20 cents per item. This type of processing is better for low volume businesses.

Advantages of Flat Rate Pricing

If you opt for Flat Rate pricing, the merchant will charge your business the same rate regardless of the credit card company a customer has used. This means your business can accept all major credit cards without worrying about running into various Interchange Rates in the amount the merchant charges you. This makes it easier to predict how much you will need to pay the card processing merchant.

Disadvantages of Flat Range Pricing

Flat range pricing tends to be relatively expensive compared to the Interchange Plus option. This is because merchants must set their charges high enough to account for the interchange charge variation across various credit card companies. Such pricing allows merchants to process payments for credit card companies with high interchange charges without incurring a loss.

Flat range pricing may be simple, but your business will be paying a relatively high cost for this simplicity.

Interchange Plus

Interchange plus pricing consists of two charge components: The Interchange Rate from the issuing credit card company and small Discount fee and per item charge from the credit card processing company.

This setup means your business will pay different rates depending on the interchange fee the credit card company has set.

Advantages of Interchange Plus Pricing

Interchange Plus pricing is cheaper than Flat Rate pricing. This is because the merchant can vary the total charges based on what the credit card company is charging them.

Your business can also see how much of each payment is going to the credit card company and how much is going to the merchant.

Disadvantages of Interchange Plus Pricing

It can be difficult to predict the total amount your business will need to pay if you opt for Interchange Plus pricing. This is because each credit card company sets its own interchange fee. This can make it tricky to predict what your monthly merchant fees will be at the end of each month.

Why Choose Worldwide Products Corp.?

As you can see, Flat Rate pricing and Interchange Plus pricing both offer distinct advantages and disadvantages for businesses. If you’re looking for the best merchant services in Connecticut, consider reaching out to WPC Merchant Services & Credit Card Processing.

We offer affordable merchant service solutions for small business types with no contracts or hidden fees. Contact us to start accepting credit cards at your business today.

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Mobile credit card payment processing solutions provide merchants with a secure and convenient way to accept payments from customers. These solutions are becoming increasingly popular among small businesses, as they allow merchants to accept payments directly through their mobile device. The main advantages of mobile credit card processing solutions include cost savings, increased security, and convenience. Cost Savings: Mobile credit card processing solutions are typically less expensive than traditional merchant accounts. This is because there are typically no setup or termination fees, and the transaction fees are often lower than that of a traditional merchant account. This can help to save businesses money overall. However, the cost of mobile card processing typically varies based on the payment processor and the services that are offered. Some payment processors may charge a monthly fee, while others may charge per-transaction fees. It is important to compare different payment processors to find the one that best meets the needs of your business. Additionally, some payment processors may offer additional services, such as analytics and reporting, for an additional fee. Convenience: Mobile credit card processing solutions are convenient for both customers and merchants. Customers can pay quickly and securely using their mobile devices, while merchants can accept payments without having to be physically present. This makes it easier for businesses to accept payments, even outside of their normal business hours. Some examples of mobile card processing include Apple Pay, Google Pay, PayPal Here, Square, and Stripe. Each of these services allows merchants to accept credit and debit card payments directly through their mobile device. They also provide additional features, such as analytics and reporting, to help merchants better understand their customers. Mobile card processing is becoming increasingly popular among small and medium-sized businesses, as it can help to reduce operational costs and increase sales. There are several distinct types of mobile card processing, including contactless payments, QR code payments, and mobile wallet payments. Contactless payments allow customers to tap their card on the merchant’s mobile device to make a payment. QR code payments allow customers to scan a QR code to make a payment. Mobile wallet payments allow customers to pay using their mobile wallet, such as Apple Pay or Google Pay. Each of these payment methods has its own benefits and drawbacks, so it is important to consider which one is best for your business. Drawbacks to mobile card processing include the potential for fraud and limited payment options. Mobile payments are typically more vulnerable to fraud than traditional payments, as the data is transmitted over a wireless connection. Additionally, some customers may not be comfortable paying with their mobile device, as it can be difficult to verify their identity. Finally, some mobile payment processors may only accept certain types of payment, such as credit or debit cards. These are just some of the advantages of mobile credit card payment processing solutions. By adopting mobile payment processing solutions, businesses can benefit from increased customer satisfaction, cost savings, increased security, and convenience. This can help to improve the customer experience and increase sales for small businesses. WPC Merchant Services & Credit Card Processing is a company that provides credit card processing solutions for all types of businesses. They offer a range of services that help businesses accept credit and debit card payments, including point-of-sale (POS) terminals, virtual terminals, mobile payments, and online payments. WPC also offers additional services, such as charge back management, fraud prevention, and merchant cash advances. These services are designed to help businesses manage their finances and reduce the risk of financial losses due to charge backs or fraudulent transactions. Worldwide Products Corp. provides a convenient and secure way for businesses to accept payments, allowing them to expand their customer base and increase sales. Call (855) 972-2867 or visit wpc.services to schedule a free consultation.
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