Ready to finally decipher your complicated credit card processing statements and choose the right pricing plan? Arm yourself with knowledge and check out our SlideShare on credit card processing fees and pricing structures.

In this SlideShare, we’ll explore the 3 fees that make up your base cost of processing. Then, we’ll take a look at the 3 most popular pricing structures that credit card processors will offer you, and help you choose the right one for your business.

1. Credit Card Processing 101: How to Choose the Right Pricing Structure

2. Credit card processing fees can seem like a complicated affair. Add pricing structures to the mix, and you might be feeling a little lost.

3. Let’s take it step by step.

4. First, we’ll break down your fees.

5. (approximate values) interchange .05% – 3% assessments .11% – 15% authorizations 10¢ – 50¢ per transaction There are 3 fees that make up your base cost.

6. interchange Falling between .05% and 3%, the interchange makes up the majority of each transaction fee. Each credit card has a unique interchange rate that is static for the most part.

7. interchange Falling between .05% and 3%, the interchange makes up the majority of each transaction fee. Each credit card has a unique interchange rate that is static for the most part. The interchange fee goes to the bank that issued the credit card.

8. Interchange rates are affected by: 1. type of card 2. method you accept the card (in person, telephone, online, etc.) If you want to keep your interchange fees down, be mindful of these two factors.

9. assessmentsYour assessment fee is typically between .11% and .15%.

10. assessmentsYour assessment fee is typically between .11% and .15%. It goes to the card brand.

11. authorizations These per-transaction fees range from about 10¢ to 50¢.

12. authorizations These per-transaction fees range from about 10¢ to 50¢. They go to your credit card network.

13. Now that you’ve seen a breakdown of the fees, let’s go into the 3 basic pricing structures. interchange plus flat rate tiered

14. Remember, interchange rates vary from credit card to credit card. 1% 2.3% 0.8% 2.9% 1.6%

15. Tiered pricing sorts credit cards into tiers based on interchange rates, then uses a collective rate for each tier. .05% to 1% 1% to 2% 2% to 3%

16. ? ? ? Unfortunately, this is the least transparent plan. Processors can set unfair tiers that qualify your cards at the highest possible rates.

17. We don’t recommend tiered pricing structures.

18. Interchange plus consists of base cost (interchange + assessments + authorizations) plus a small markup from your credit card processor, called a discount rate. cost + discount rate = 2.1% cost + discount rate = 1.7% cost + discount rate = 2.8%

19. Your credit card processor is the point of contact of sorts between you and the entities previously mentioned, and the discount rate is used to maintain your account. bank card brand you network processor So what is a discount rate?

20. Wait, why is it called a discount rate if it’s a fee?

21. Wait, why is it called a discount rate if it’s a fee? No one knows. ¯_(ツ)_/¯

22. Interchange plus is the most transparent plan and has the potential for the greatest cost savings. However, it’s the merchant’s responsibility to make sure their cards are qualifying at low rates. Choose this plan if you’re willing to take on that responsibility and monitor your transactions.

23. Flat rate pricing chooses one effective rate for all of your cards, based on your past history of processing. Month 1 Month 2 Month 3 flat rate

24. Flat rate has the least risk involved and is the most straightforward plan. As long as you’ve got a good processor, it’s the only way to guarantee cost savings. Choose this plan to save money while being less involved in monitoring transactions and rates.

25. Those are the basics! Hopefully you understand more about how pricing structures work and are ready to choose the right plan for your credit card processing needs.

26. Check us out at www.centurybizsolutions.com for more information about credit card processing.