When running a business, accepting credit card payments is essential, but understanding how credit card processing rates work can be complex. At Franpos, we strive to make this as transparent as possible by offering competitive pricing based on the Interchange Plus model. Here’s how it works:

What Is Interchange Plus Pricing?

Interchange Plus pricing is a straightforward and transparent method of charging for credit card processing. This model separates the cost into two main components:

1. Interchange Fees: These are set by the credit card networks (Visa, Mastercard, Discover, American Express) and are non-negotiable. They are the fees paid to the card-issuing bank every time a transaction is processed.
2. Plus Markup: This is an additional fee that includes a small percentage and a fixed amount per transaction, which goes to the payment processor (in this case, Franpos and Global Payments).

At Franpos, our pricing structure is based on the Interchange fee plus a competitive markup of a small percentage + few pennies per transaction. This ensures that you only pay a small fee on top of the base cost, keeping your expenses predictable and aligned with the actual cost of processing payments.

How Interchange Fees Work

Interchange fees vary depending on several factors, such as the type of card used (credit, debit, rewards), the industry your business operates in, and the way the transaction is processed (in-person, online, over the phone, etc.). These fees are set by the credit card networks and are generally reviewed and updated annually.

A critical distinction to note is between card-present and card-not-present transactions:

• Card-Present Transactions: These occur when the card is physically present during the transaction, such as at a retail location. Interchange rates for these transactions tend to be lower due to the reduced risk of fraud.
• Card-Not-Present Transactions: These include e-commerce or over-the-phone orders, where the card is not physically present. Interchange rates for these transactions are typically higher because of the increased risk involved.

While the Interchange rates for card-present and card-not-present transactions will differ, the markup set by Franpos remains consistent. This means that regardless of how the transaction is processed, you benefit from the same competitive pricing structure, ensuring your costs remain manageable.

• Visa: Visa Interchange Rates
• Mastercard: Mastercard Interchange Rates
• Discover: Discover Interchange Rates
• American Express: American Express Interchange Rates

Why Interchange Plus Is Beneficial for Your Business

Unlike other pricing models like tiered or flat-rate pricing, Interchange Plus provides transparency in your processing fees. You pay the actual cost of the transaction (Interchange) plus a consistent markup, allowing you to understand exactly where your money is going. This model is particularly advantageous for businesses that process a high volume of transactions, as it often results in lower overall costs.

How Franpos Ensures Competitive Pricing

At Franpos, we are committed to providing our customers with the most competitive pricing possible. By using the Interchange Plus model, we ensure that your fees are directly tied to the true cost of processing, with no hidden charges or unexpected surcharges. This approach not only saves you money but also builds trust, as you know exactly what you’re paying for.

In conclusion, understanding how credit card processing fees work is crucial for managing your business expenses. With Franpos’s Interchange Plus pricing, you can be confident that you are receiving the best possible rates with complete transparency. If you have any questions or would like to learn more about how our pricing works, feel free to reach out to our support team.