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A Competitive merchant Rate for every processor

Our dedication to negotiating the lowest rate and eliminating the headaches and hassles for our community businesses remains as steadfast as ever whether you’re accepting credit cards for the first time, or looking to integrate an existing point-of-sale (POS) system.


Interchange Plus Pricing, also known as Cost Plus Pricing or Interchange Pass Through, is a method of pricing merchant account services that charges the merchant the exact Interchange Fees, Plus a fixed mark up for processing services. Interchange Plus Pricing is the lowest cost, most transparent pricing schedule available in the merchant services industry. FYT Services recommends this for 99% of our clients!

Tiered Pricing on the other hand is currently the most common form of pricing for credit card processing services. Tiered pricing is opaque, expensive and is the vehicle for many of the hidden fees that plague the credit card processing industry. A more cost-effective, transparent alternative to tiered merchant account pricing is available to businesses that know enough to request it.

WHAT IS MY RATE?

By: Faiyaz


Merchant Every merchant asks the same question, what is my rate? Today let me explain how a lower rate may actually be a teaser rate and effectively the total processing cost ends up being higher for the merchant. The effective cost is not the rate but the total amount paid for processing verses the amount processed. For Example if merchant has been charged $195.00 for transaction totaling $10,000 then effective rate is 1.95%.


Every processor has a basic cost called “Interchange Rates". This is the cost charged by Visa and MasterCard to process the transactions. The common sense tells us that if Interchange Rate is 1.64% how can a processor charge less than that rate ?The processor is making up the loss from the same merchant as some other Charges. These “charges” are hidden as 3 Tier Pricing, 4 Tier Pricing, Downgrades, Bill Back, Gross-Gross Billing, Access Fees, Monthly Fees, Statement Fees, Authorization Fees, Minimum Fees, Minimum Discount, Annual Fee, Semi-Annual Fees, Compliance Fee, Security Fees, etc. etc.


Beside all the "Charges" mentioned above, the most common place the charges are hidden are in the Interchange Levels. What merchants are not aware of is that there are 100 plus levels in the Interchange Rate tables and the processor is able to basket these 100 plus levels in to 3 categories. These levels are known as "Qualified", "Mid Qualified” and “Non-Qualified". More levels the processor puts in "Non Qualified" more cost is incurred to the merchant it is confusing even to me, Let me give an example how this works. The numbers have been kept simple for better understanding.


Processor A has rates of 1%, 2% and 3% respectively, the merchant process $10,000 per month. Processor B has rates of 0.75%, 2% and 3% respectively.


Which one will merchant pick? Well if it was apples to apples and all other “charges” were equal everybody is going to pick Processor B.


Now comes the tricky part. Processor A has buckets set so 75% of merchanfs volume falls in Qualified, 12.5% in Mid Qualified and 12.5% in Non Qualified. Processor B has the bucket set so 50% volume falls in Qualified, 5% in Mid Qualified and 45% in Non Qualified.


Now let us put numbers in the equation.


Processor A: $7,500 @1%, $1,250 @2% and $1,250@3%. The total processing cost $118.75

Processor B: $5,000@0.75%, $500@2% and $4,500@3%. The total processing cost $195.00


As you can see the question what is my rate becomes redundant. In order to provide a proper analysis it is essential that the Merchant Statement is checked. Many merchants are very reluctant to provide the Merchant Statement.


There are various other ways of savings on processing cost and they need to be discussed so that a proper processing solution is given to the merchant. Just one rate is not enough.

Retail

A retail merchant account gives the merchant the ability to swipe credit cards using a terminal. This is ideal for merchants who deal face to face with their customers and are looking for quick and accessible processing. It also allows for the merchant to take advantage of the growing number of consumers now using credit and debit cards. With just one phone call, FYT Services can help you start saving money now.


Merchant Account Rates             Merchant Services Rates

Check Card Rate (Swiped)                           0.59%

Transaction Fee Retail (Swiped)                  15 cents

Monthly Statement/Service Fee                   $5.00

Setup Fee                                                     Free

Programming Fee                                         Free

Address Verification (AVS) Fee                    Free

Application Fee                                             Free 

FYT Merchant Services
Low Cost Credit Card Processing Solutions and Merchant Services

Smartphone Processing

Take advantage of the newest type of processing with a smartphone merchant account. By being able to process with smartphones such as the iPhone, Droid and Blackberry, the merchant is able to go out and accept credit card payments virtually anywhere without having to carry around an actual terminal. This is perfect for any merchant looking to swipe cards without having a stationary storefront. With just one phone call, FYT Services can help you start saving money now. 


Merchant Account Rates            Merchant Service Rates

Check Card Rate (Swiped)                          0.59%

Transaction Fee(Swiped)                            15 cents

Monthly Statement/Service Fee                  $5.00

Quick Pay Gateway Fee                              $5.00

Setup Fee                                                     Free

Application Fee                                             Free

American Express Setup                              Free


Mail Order

Telephone Order A MOTO merchant account allows for the merchant to manually key in a customer's credit card number. Merchants receiving orders by phone, fax and mail will find this type of account advantageous. With just one phone call, FYT Services can help you start saving money now. Our sales reps are waiting by the phones to help walk you through this process quickly and easily.


Merchant Account Rates                    Merchant Services Rates

Discount Rate Internet/Mail/Phone                      1.99%

Transaction Fee Internet/Mail                              15 cents

Monthly Statement/Service Fee                           $5.00

Application Fee                                                    Free

Setup Fee                                                            Free

Programming Fee                                                Free

American Express Setup                                     Free

Address Verification Fee (AVS)                           Free


Internet Processing

By setting up an Internet merchant account, merchants will have the ability to accept credit card payments through their website and log onto a virtual terminal where they can manually key in their transactions. Allowing customers to pay online ensures that you are always open for business.


Merchant Account Rates              Merchant Services Rates

Discount Rate Internet/Mail/Phone                 1.99%

Transaction Fee Internet/Mail                         15 cents

Monthly Statement/Service Fee                      $5.00

Authorize.net Gateway Service Fee                $15.00

Authorize.net Gateway Setup                          Free

Authorize.net Gateway Transaction Fee         10 cents

Application Fee                                                Free

Setup Fee                                                        Free

Programming Fee                                            Free

American Express Setup                                 Free

Address Verification Fee (AVS)                       Free

tiered pricing is going to cost you...


Which Bucket do most of your transactions fall in?


The 4 tiers set up most often for retail business are as follows:


•Debit


•Qualified


•Mid-Qualified


•Non-Qualified