From the blog Contract Series Week 3: Tips to Protect Your Business

Throughout this series of posts, we’re sharing pointers to protect your company in payment processing terms and contracts. In this week’s edition, we hope you find the information valuable to your business. If you’d like additional information on these blogs, please contact us by clicking here.

Tip 3: Understand bundle rate pricing.

Many payment processing providers strategically combine various fees into bundled rates to make it easier for sales associates to market their services.

These bundled rates create a lack of transparency in the actual costs incurred and typically result in excessive fees for business owners due to detail terms that often allow up-charging for nebulous qualifications set by the sales channel.

Often these bundled rates are sold as “qualified, mid or non-qualified,” or “Tier 1, 2 or 3.” Talus Pay, strongly discourages agreeing to a bundled fee structure. Instead, we point our clients to true cost-plus or Interchange-plus programs that are more transparent and easier to compare. Interchange fees are paid to the card brand (Visa, Mastercard, Amex, etc.), and an interchange-plus program passes through interchange at cost, clearly delineating it on the monthly merchant statements, in detail. The visibility allows interchange to be monitored and optimized; any markup above interchange is separated out and shown on its own.

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