Tuesday, June 5, 2012

Flat Rate Merchant Account Lowdown

Flat Rate Merchant Account LowdownPricing is always at the top of the list of factors that merchants tell us weigh in their decisions when choosing a credit card processing vendor. This is hardly surprising, as we all first look at the price when choosing a provider for one item or other. If we like the price, then we will also examine the other features.

This is a fact that of course has not escaped us and we have been working on a pricing model that would be at once simple, so that applicants can right away understand how it operates and cost-effective, so that it does save money for our merchants and convinces them to accept our proposal. It is not as easily done as you may expect, but at last we came up with the flat rate merchant account pricing, which does just that.

Why Don't Simple and Cost-Effective Go Along?

The flat rate pricing model is our latest and best attempt to unite the strengths of the two existing models: the cost-plus and the two- and three-tiered pricing structures, while minimizing their shortcomings. We still offer both of these older structures, in case a business explicitly requests a pricing based on either of them, however we think that the latest one is far better and always tell that to everyone who contacts us.

You know, the problem with either one of the older pricing models is that it is very difficult to predict with any degree of confidence exactly what rate any single transaction will be processed at. Unsurprisingly, merchants find the uncertainty confounding and unacceptable (after all, most of our merchants are not theoretical physicists!). And they tell us straight! Additionally, applicants explicitly let us know us that predictability is at the top of their list of priorities and that they want to be able to estimate with as high a degree of precision the total amount they would be charged for processing each month as possible.

Does Flat Rate Merchant Account Pricing Actually Achieve Predictability?

Yes, the flat rate merchant account pricing model is actually as predictable as it is possible for the really simple reason that it is a model that only has one rate for all type of cards and payment circumstances. That way businesses know precisely what rate any single payment will be receive before it is processed. For the very same reason merchants can't get overcharged. It only makes sense that if you are given a price in advance and have agreed to it, you can't really be overcharged.

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