November 9, 2018 Alex Gomez

The average business owner is charged a set of fees when accepting credit card payments at their place of business. These fees include, an interchange cost put in place by major credit card brands, a percentage markup on top of the interchange cost and an additional transaction fee.

A basis point is equal to 1/100th of a percentage point. Basis points is a common term processors use to explain their markup percentages for processing a business owner’s payments. An example of this would be Visa’s interchange fee is 1.54% plus a transaction fee of $0.10. In this instance, Visa’s interchange fee is one hundred and fifty-four basis points (1.54% = 154 basis points).

The SimplePayments pricing method is the complete opposite of a typical merchant processor’s pricing structure. Regardless of the quantity and total dollar amount per transaction, SimplePayments charges a flat fee per month, plus the direct interchange cost imposed by major credit card brands such as Visa and MasterCard. Other merchant processors charge the direct interchange cost plus additional basis points and transaction fees.

The reason why the SimplePayments pricing model is so attractive for business owners is the complete transparency in our pricing. With SimplePayments, business owners do not have to worry about predicting what their monthly transaction processing fees are going to be. Every month, merchants can expect to pay a flat fee plus direct interchange costs; monthly fee’s and direct interchange costs will never change or shift.

If you are a business owner that pays for direct interchange costs, additional transaction percentage rates, and transaction fees, you could be saving hundreds of dollars with the SimplePayments pricing method.