Sunday, June 17, 2012

Interchange-Plus Pricing Model for Credit Card Processing

Interchange-Plus Pricing Model for Credit Card ProcessingAt UniBul we have just introduced a new model to our rapidly expanding line-up of pricing structures, based on the interchange-plus type of models and I wanted to share my views about it. The new pricing model is available to both commercial and non-profit organizations that do their credit card processing in card-present as well as card-not-present environment.

Why Did We Design It?

Most merchants name pricing as the single most important factor they use when selecting a merchant services provider. It is totally understandable, as many of us have done precisely the same when we have selected service providers for whatever we may have needed. Nonetheless, offering low pricing is the only way we can be competitive nowadays and it is the reason why we have launched an interchange-plus credit card processing structure.

How Does It Work?

Our interchange-plus credit card processing model works by adding our mark-up to whatever the interchange fee may be (it is set by Visa and MasterCard for each type of card transaction). By making sure that the mark-up is as low as possible, UniBul guarantees that the business is given the lowest possible processing rate.

UniBul Merchant Services' new pricing structure assesses no fixed monthly fees.

Rates and Fees

Here is a list of all applicable rates and fees:
  • Application - $0.
  • Payment account set-up - $0.
  • Terminal set-up or reprogramming - $0.
  • Payment gateway set-up - $0.
  • Payment gateway monthly fee - $0.
  • Monthly maintenance service - $0.
  • UniBul's discount rate – 0.25% + $0.15 above interchange cost.
The card acceptor's ultimate processing rate is the sum of the processor's (e.g. UniBul Merchant Services) fees and whatever Visa or MasterCard charge. With the interchange-plus model, the fee the processor charges is precisely the same for all credit and debit card types, which ensures that the business does not overpay for any transactions that may otherwise have been labelled as "mid-" or "non-qualified." The total processing fee varies by transaction, as the fees charged by Visa and MasterCard vary by card type.

Interchange-Plus Credit Card Processing Pricing Model Benefits

Among the benefits of the new pricing model are:
  • Merchant approval rate at 98% of qualified applicants.
  • No teaser rates, no hidden fees - all charges are fully disclosed in our pricing agreement.
  • Application decision as soon as within hours of submission.
  • Processing of all American and the major European and Asian credit and debit card brands.
  • Wide range of third party non-cash payment services to accommodate customers who cannot use cards.
  • Consolidated, automatic daily ACH deposits for all payment types directly into your bank account.
  • Sales reports, trend analyses, chargeback management and much more online with our client center.
  • Round-the-clock US-based merchant support.

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