Our rates

Dear clients, our goal is to create the most cost-efficient pricing model, designed with both parties in mind. The model we use is the Interchange Plus pricing model, which is comprised of:

1. Interchange rates

Every card issuing bank has a set cost for each card type that cardholders have in their wallets. This is known as the Interchange Cost. Interchange rates are fixed, meaning they are non-negotiable with the banks.

Below, we’ve listed the average Interchange Rates for each business type. Interchange Rates will inevitably vary based on each card type and its rewards.

• Retail sales – 0.05%+ $0.22 – 3.2%+ $0.15
• Bar & Restaurant – 0.05%+ $0.22 – 3.2%+ $0.15
• Service business – 0.05%+ $0.22 – 3.2%+ $0.15

Amex rates. https://www.americanexpress.com/ca/en/merchant/wholesale-discount-rate.html

*If you enter the same card manually instead of physically swiping it, banks add an additional fee for all keyed transactions. This fee ranges from 0.3%-1.2%, depending on the card type. It covers all security related issues that could arise with card-not-present transactions, including stolen cards, fraudulent cards, lost cards, etc.

2. Card Brands, Dues & Assessments

Visa, MasterCard, Discover, Amex and other card brands have their set dues, which are usually anywhere from 0.14% + $0.02 for each transaction.

3. Processing Fees

The third piece of credit card cost is the processing fees charged by the merchant services companies.

Smart Payment Solutions Processing fee schedule

Our processing fees are fixed, meaning they won’t change over time. Though that is the case for us, the reality is that every payment processor has the right to increase the rates within 30-day notice.

*You will secure the best rates by submitting your merchant statement for detailed analysis instead of blindly asking for the best rates. Submitting your merchant statement will give us a chance to thoroughly check your processing settings and make necessary updates to save you money.

Processing Volume

Processing Volume	Rate
$0–50K	Interchange + Dues & Assessments + 1.49% + $0.12
$50–100K	Interchange + Dues & Assessments + 0.79% + $0.10
$100–200K	Interchange + Dues & Assessments + 0.65% + $0.09
$200–500K	Interchange + Dues & Assessments + 0.49% + $0.08
$500K+	Interchange + Dues & Assessments + 0.29% + $0.08

*We never want high processing fees to be a deal breaker. We value our relationship with our customers. Our processing fees can be negotiable on a case-by-case basis.

What comes with our service: Should you sign up with us, you will get our dedicated customer service in addition to the payment processor’s 24/7 service and support channels. We help our clients with monitoring rates, replying to chargebacks, getting necessary forms and documents and we help with performing other administrative tasks.

Flat rate model

While we don’t usually board accounts on flat rate pricing, this is something that is an option on a case-by-case basis. If seeing one consistent flat fee gives you a piece of mind over looking at tons of different interchange rates and other fees, we are willing and able to work out flat rate pricing for your business type. To accomplish this, we will need merchant statements to analyze your sales volume, the average ticket and the card types that people use.

Tips on How to Save Money on Each Transaction

Credit card rates can be very confusing, even for professionals who work in the payment industry. Every card has its own cost set by a card issuing bank. Some cards will have a higher cost depending on what kind of rewards are linked to that card. Businesses that accept cards with more rewards end up paying for cardholders’ rewards. Fortunately, there are a few ways to lower the cost of card acceptance.

• Take more debit cards. Debit cardsare generally cheaper than most credit cards as they have no rewards tied to them. The cost of a debit card is typically 0.05% + 22 cents per transaction, compared to 1.5%-3.2% for a credit card. Twenty-two cents could be a decisive factor depending on your average sale amount. The sale of a $2.00 coffee drink will cost you the same twenty-two cents as selling a car engine replacement for $3,000.
• Take card present transactions. Card-present transactionshave a lower price compared to manually entered transactions. Banks automatically charge a higher rate for manually entered or keyed transactions since there is a higher risk of a stolen card, an unauthorized transaction or a fraudulent transaction. The higher tier bracket is usually 0.3%-1.2%, depending on the card type.
• Use EMV chip readers. Card brands charge a higher transaction fee for merchants that still don’t have chip readers. Having chip card readers will give you peace of mind when it comes to security and fraud. EMV transactions are encrypted, making it more challenging to compromise card data. You won’t automatically lose chargebacks because of being non-compliant and you won’t be held accountable in case of fraud as the liability shifts on the EMV provider that supplied you with the terminals.
• Verify Card Details (Address Verification Service) will come in handy when you enter transactions manually. Banks will charge you a lower price if all the card data is verified during the sale. Your credit card terminal will prompt for the customer’s address and the zip code to approve the sale. This way, banks see that you did your due diligence and did your best to prevent any possible fraud, and they will charge you a lower rate as a result.
• Monitor Your Merchant Statement. In some cases, payment processors will add small fees to each transaction. With us on your side, you can rest assured that we will monitor the account and respond accordingly.

What We Offer

While we can’t guarantee that we will be the cheapest company out there, we are confident in our ability to be the ideal long-term partner for you or your business. With our extensive experience in the payment industry, we offer to set up accounts correctly from the start.

We monitor rates and work with the payment processor of your choice to ensure your customer service issues are addressed and that your account is always in good standing.

When it comes to your next partner, look no further than us. Reach out for a free consultation from top-tier payment professionals or send the merchant statement for analysis! We would love nothing more than to partner with you.