If your business accepts credit cards, you are probably paying for these services through one of the three most common pricing models: tiered, flat rate, or interchange plus. As a merchant, you should be familiar with all three options in order to determine the best fit for your business.
This method of pricing works on a tiered qualification system. Typically the merchant service provider will divide transactions into several classifications or “buckets” and charge a transaction rate for each tier. You may see tiers listed in several ways. For example, some merchant services divide their tiers into various qualification levels. As such, Qualified transactions might be charged at a rate of 1.XX, Mid-Qualified at 2.XX% and Non-Qualified at 3.XX%. This tiered system works well for merchants if they can get all or most of their transactions in that lowest priced tier.
Paying with a credit card seems quick and easy when you’re the customer. All you do is swipe, insert, or tap to make a purchase or click on a website. However, as the merchant, credit card processing can take on a whole new meaning. Knowing who the players are can help you know your options and determine the best choice of vendors and partners.
Last week, I sat in on a webinar that the PCI Security Standards Council (PCI-SSC) presented to outline the training opportunities they offer to merchants, IT professionals, and auditors. During this event, they mentioned the top five mistakes that they’ve seen that can lead to security vulnerabilities. These resonated with us because of security breaches that we’ve seen over the last year or explanations we’ve given about overall compliance toChargeLogic customers and Dynamics NAV users.