Proudly Supporting:
© Three One Payments. All rights reserved. | Privacy Policy | (828) 979-0907 | Website Design by m.e.
Pricing Models
The most common pricing models: interchange plus, flat rate, and tiered.
Interchange Plus
Interchange plus is the most transparent and most cost effective solution for the vast majority of businesses. Interchange fees are set by the card networks. With this model businesses know exactly what they are paying the processor.
Flat Rate
As the name suggests, merchants are charged a flat rate, regardless of the transaction type, card type, or how it is ran. This structure is more attractive to merchants with lower processing volume due to its simplicity and standardization. However, it can be more expensive, because the rates are not optimized for each transaction processed.
Tiered
Tiered pricing is broken down into three categories: qualified, mid-qualified, and non-qualified. Several factors can determine how a transaction is categorized. Things like: card type, how it is ran, and level of security. With this model, processors tend to advertise their qualified rates, which are the lowest and can be hard to qualify for. It lacks transparency and are typically unpredictable. It can be hard to discern the markup from interchange.
Common Forms of Digital Payment
Card Present
A transaction where the card and cardholder are both physically present at the time of sale. Also known as face-to-face transaction.
Payment Terminal
This is the traditional method for accepting card transactions via swipe, dip, tap or can be keyed into the machine.
Point-of-Sale (POS) system
A POS system is similar to a terminal, but it’s generally tailored to meet the needs of each business.
Mobile Payments
Mobile devices can now accept payments in a variety of ways. Hardware plugged into a phone or tablet enables a merchant to accept payments by swipe, dip, or tap.
Virtual Terminals
When paired with a device, virtual terminals are a software or web-based solution that allow merchants to process payments from their computer.
Card Not Present
A transaction where the card and cardholder are not physically present at the time of sale. In this form, virtual terminals allow merchants to process payments from their online stores. These can also be used to key in transactions over the phone.
ACH
ACH (Automated Clearing House) is a type of electronic funds transfer from one bank account to another. In certain situations, ACH is a useful alternative to accepting cards.
High Risk Payment Processing
A high-risk merchant account is a type of business bank account setup by a payment processor that allows merchants to accept credit and debit cards for their business, even though they have been labeled as a high-risk business by a previous processor or payment service provider. A high-risk merchant account means payment processors and card networks view the company as being more likely to default on its payments, suffer high levels of chargebacks, or even commit fraud.
There are several factors in determining whether a merchant is high risk or not. Card not present transactions, charge backs, refunds, and business history all can increase risk. Also the type of industry is a big factor. Adult entertainment, CBD, gambling, travel, firearms, just to name a few, are all considered high risk.
Learn how we help businesses with High Risk digital payments.