Interchange Cost Plus Discount Program

Credit card processing typically works under the “tiered” system of fees for sellers. When you are on a tiered merchant account, your transactions are “sorted” into different categories, making you pay different transaction fees depending on the nature of the sale. For many businesses, the tiered system can be confusing or misleading, as card processors often advertise the rates of the lowest tier, which can differ wildly from the charges for higher-tier transactions. Anyone running a modern business under the tier system will be familiar with how overwhelming the different transaction fees can become. Luckily, there are alternative options: Interchange Plus accounts offer companies a way to avoid the more confusing aspects of transaction fees while saving them hundreds or even thousands of dollars every year. At Americard Inc. . we do you one better, offering an excellent Interchange Cost Plus Program, while protecting your account from additional fees and hidden.

How Interchange Plus Works

While the tier system and markups that come with merchant accounts can get frustrating, sellers for corporations, franchises associations, and large banks who work under the Interchange Plus accounts will never have to deal with this. The system is comparatively simple and only consists of two transaction fees:

Interchange fee – This fee is a small percentage of the total sale, as set by the credit card company. Visa debit cards, for instance, might set their fee at 0.8%. In this case, the fee is set to align with the minimum cost of processing a transaction for the company.

Markup fee – this is a second, flat-rate fee charged by the company responsible for processing your payment. This fee does not change based on the size of the transaction but applies during every sale. The fee also allows credit card companies to profit, and the interchange fee only covers their processing costs.

To give an example, if you sell $120.00 worth of sports gear, you could pay 0.8% ($.96), plus the flat rate of 0.15%. Thus your total transaction fee would come out to $1.14 in this case. Compare this to a high-tier purchase of the same value, which could run you upwards of 3%, or $3.60! Not only is the payment system more cost-effective in the long-term, but it is also much more transparent and can help you budget for transaction fees better. Americard Inc.  offers an Interchange Optimization program. This program lowers the cost on some Level 2 and Level 3 transactions. Banks, franchises, and associations cannot do that.

Protecting Your Account

Not only do we offer an excellent program that can save your business thousands of dollars over the years, but we do our best to provide excellent protection from predatory practices. During your contract period, we will protect you from paying any excess profits to the processor, helping you hold onto your hard-earned profits. Reach out today to learn more about the many benefits offered through this program.

Opt Into Interchange Cost Plus Today.

To learn more about our Interchange Cost Plus program, reach out to Americard Inc.  We are happy to discuss the terms and conditions of our program, as well as the potential benefits it will help your corporation, association, franchise or large bank achieve over the long run. We guarantee lower rates, greater transparency, and protection from additional charges; learn (and earn) more today!