PROFITTHEORY

Pricing models

Processing pricing models, surcharging and how to offset card fees

There is no universal 'lowest-fee' processor. Your cost depends on the pricing model, your card mix and how you accept payments. Some businesses also offset fees with surcharging, cash discounting or ACH — each with rules you must follow.

Review my pricing with your financing specialist Calculate your effective rate

Estimates only. Results vary. No guarantee of approval, rates or savings.

The three common models

How you're billed changes what you can compare.

  • Flat rate: one percentage (plus maybe a per-item fee) for most cards. Predictable, can be costly at higher volume.
  • Tiered: transactions sorted into qualified, mid-qualified and non-qualified buckets. Hard to audit.
  • Interchange-plus: network cost passed through, plus a disclosed markup. Easiest to compare across providers.

Ways businesses offset fees

Surcharging adds a fee to credit card transactions and is subject to card-network rules, disclosure requirements and some state laws; it generally can't apply to debit cards. Cash discounting offers a lower price for cash or ACH. Encouraging ACH for large invoices can lower cost. Rules change, so confirm current network and state requirements before launching any program.

Run the numbers

Blue = you enterGreen = calculatedGray = assumptionAmber/red = check this
$

Total card sales on your statement.

$

Add every fee line: discount, interchange, assessments, monthly, PCI, gateway.

Your effective rate

3.25%

Fees per year

$23,400

Avg. fee / sale

$4.88

Avg. ticket

$150.00

Effective rate is a diagnostic, not a savings quote. Card mix, card-present vs. keyed, and network rules change what any provider can offer.

Questions to ask your processor

  • • Is my pricing interchange-plus, tiered or flat-rate?
  • • What is your markup above interchange, in % and per item?
  • • Which monthly, PCI, statement or gateway fees apply?
  • • Is there an early-termination fee or equipment lease?
Request a payment reviewOptional. No statement upload needed here.

Estimates only. Results vary. No guarantee of approval, rates or savings.

Talk with a payments specialist

Common questions

Is surcharging legal?

It's permitted in most states with conditions, restricted in some, and governed by card-network registration and disclosure rules. Check current rules for your state before starting.

Can I surcharge debit cards?

Generally no, even if the debit card is run as credit. Confirm with your provider.

What's the cheapest pricing model?

For many established businesses interchange-plus is the most transparent, but cost depends on the markup and fixed fees. Compare on your real statement.