EST 2017

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Some cbd pricing structures are much more costeffective than others, but some of the costsaving aspects of the best cbd price models aren’t readily apparent. Knowing which price models are best, and how to utilize them to keep costs low can help you save hundreds of dollars a month in credit card processing fees. Merchant discount rates are based on interchange fees, and interchange costs account for the majority of the expense to processing credit cards. Getting the lowest markup over interchange when selecting a merchant service provider is important, but keeping interchange costs as low as possible will save you more over the life of you cbd .

If your business accepts credit cards, it’s very important for you to have a solid understanding of interchange and how costs can vary substantially depending on which category transactions qualify. Teaching yourself and your staff to adopt processing methods and habits that ensure transactions qualify to interchange categories with the lowest rates and fees will save your business substantial costs. The ability to formulate methodologies that ensure your transactions qualify to a lower interchange category hinges on your ability to see and study actual interchange data on your cbd statements.

Some cbd pricing structures make interchange data know, while other conceal it under generalized rate categories. Interchange plus pricing, which is also referred to as passthrough, is a price model where interchange categories are itemized on the monthly cbd statement. Enhanced recover reduced ERR and tiered price models are less clear, and interchange categories aren’t itemized on the monthly statement for these types of pricing. Aside from the fact that tiered and ERR pricing is often more expensive than interchange plus, sometimes by a margin of or more, these price models carry hidden costs because they hide interchange categories from the merchants that are using them.

For example, a business that sells products online may have an employee that’s unaware of the importance of using address verification when processing transaction.



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