Although I’m not endorsing the company that made this video, it does the best job I’ve ever seen of explaining how merchant fees work. Since merchant fees, meaning processing rates, are by far the most expensive element of accepting credit card payments, it is essential to get the lowest possible rate. To accomplish this, you must understand the difference between tiered pricing (also called “bucket” pricing) and true cost pricing, or what the video simply calls “true pricing” and is also know in the industry as interchange pass-through.

My next post will be about how to negotiate the lowest true pricing merchant fees available so that you can save vast amounts of money on your credit card processing rates. Subscribe to the RSS feed, or go to the "About" page subscribe to my updates via email

Source: http://www.elementps.com/

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