By 
Credit card payments are surely convenient for a lot of businesses out there. Just swipe the card and you have acquired the money from the customer. But, that’s not the whole picture. Whenever a business swipes a card, there’s a price that needs to be paid for the service. Yes! There are 3 different fees that need to be paid – a fee to the bank, fee to the card brand and a fee to the credit card processor. So, that will actually reduce the profits earned significantly and top of that calculating the total fees paid every month can be very frustrating as well.
That is why flat rate credit card processing came into existence. It’s idea is very simple. Regardless of how much a customer shops for, merchants are charged one-single rate. That is why there are no variable charges that need to be paid on every transaction. Is this profitable? How can this help a business? Is ISO agent program can really help? Let’s find out.
What is Flat Rate Credit Card Processing?
In flat rate processing, a merchant will have to pay a fixed percentage of each card transaction that happens in their business. This rate can be anywhere between 2.4% to 3.5% of the total price that has been billed. Flat rate seems to be a more convenient deal especially when you are getting a card reader for free as well. This can facilitate simple and quick transactions. At the same time, you can easily calculate the overall expenses that you have made on credit card processing without too much hassles.
Benefits of Flat Rate Card Processing
Now that you know the details about flat rate card processing, here are the top benefits that you can enjoy due to this policy. Throughout the day, there will be several customers who can make credit card payments on bills that have variable amounts. Some of them will surely make a big purchase and that is when you will need to pay a lot more processing fee as well. Thus, it can decrease your profit margins earned very significantly.
So, when you subscribe to a flat rate credit card processing policy, you will have to pay the same amount of fee every time any customer swipes their card. That is why you don’t have to worry about paying more when the sales are more. Also, when you follow the same processing fee for every card transaction that takes place, it is a lot easier to predict the overall expenses. You will always pay the same rate regardless of how big or small the card transaction has been. This will help you to calculate business expenses and set a more efficient budget at the end of every month.
Flat rate can also reduce human error while calculating the costs which otherwise would have been very volatile every month. So, these are the top advantages of a flat rate credit card processing fee that a business can expect. Subscribe to an ISO agent program and know more about such credit card charges.
And, if you’re seeking new opportunities, consider joining our merchant services agent program. This dynamic initiative opens doors to lucrative partnerships, offering comprehensive training and support to help you thrive in the competitive world of payment processing. Join us today and unlock your potential in the payments industry.
