In this article, we are going to be discussing the different pricing models of credit cards are. Also, we will discuss what the different payment processing technology given by processors are.
What are the different pricing models?
For a business to process any kind of card payment, the processor will take some money from them. The processor will take fees from every transaction that takes place through their store and where to take card payments. Pricing models are the different kind of money that is taken by the processor for processing transaction. Below mentioned are the different price models for the processing of credit card transactions.
- Percentage markup
In this price model, the processing company will take some percentage on the transaction. The interchange is also there, but it is available on different kinds of cards. This can help you to see how much amount you will be paying every month at its end.
- Flat rate
This is a rate that is like a fluctuating percentage, just like the interchange. This rate makes the card from which they pay for all the same kind of percentage. At this flat rate, you will have to pay %2.9 to the processor.
- Tiered rate
This is the most expensive package, and it charges different cards by a different kind of amount. They will charge more money from the expensive card and less from the easily available card. These kinds of model are charged more and questioned less by the merchants.
- Simple flat-rate subscription
This is the most commonly used price model by the merchants as they have to pay monthly money. This depends on the percentage that is taken upon the total amount of transaction that takes place in a month. No worries about the transaction you do. It is charged on the percentage, which is fixed already.
Which are different kinds of processing technology?
All businesses are unique when it is their time to collect payment from their customers. Also, many businesses use different kinds of technology to collect payments from their customers.
- Online invoicing
Invoices are the most important part of any business as they keep track of the customer purchase. This will tell you the exact amount of money that has to be paid by the customer and is entered automatically.
- EMV smart terminal
Many of the customers still think that coming physically and swiping the card is the best way to pay for anything. So there are many businesses with a smart solution like an EMV or NFC technology card machines.
- Mobile payment solution
This is a perfect option for the on-the-go business owner who is looking for fast transactions. You can either get a card swipe, a reader, and even a QR code that the customer can scan and pay.
- Online shopping cart
These are the online shopping portal powered by the eCommerce solution for a business. Having an online store means that a customer can order from anywhere, and you just need to deliver it to them.
