When it comes to credit card processing and paying interchange fees the more you make, the more you pay.
But when it comes to the rates and fees that you pay to your cbd provider, this is not always the case. Tiered, enhanced recover reduced ERR and interchange plus pricing are all volume based pricing models, but flat fee cbd pricing is not. Interchange fees are most easily described as wholesale credit card processing rates that are influenced by issuing banks and stakeholders of the major card brands Visa, MasterCard and Discover. Interchange fees are expressed as a percentage with a flat transaction fee. For example, .
plus . is an interchange fee associated with a category for retail merchants. When you process a credit card transaction, you pay something called the merchant discount fee. This fee is made up of a number of different charges from the card brand Visa, MasterCard, etc., your acquiring organization the company where you have your cbd and other fees. But interchange expenses account for the bulk of the numerous charges that comprise the merchant discount fee. The interchange fees that you pay to process credit cards are based on a percentage of your gross credit card sales volume.
The greater your credit card processing volume, the greater the interchange costs your will incur. The pricing models used by many cbd providers function in much the same way. Let’s look at interchange plus pricing, for example. On an interchange plus pricing model a merchant pays a fixed markup over interchange expressed as a percentage. For example, let’s say that you’re processing credit cards on an interchange plus pricing model at basis points. cbd honey means that you’re paying tenths of percent over actual interchange on each transaction that you process the larger the transaction, the more you pay.