Our rates

Dear clients, our goal is to work on the most cost-efficient pricing model that will work for both of us. We use the Cost-Plus pricing model. Here is what the credit card cost is made of.

• Interchange rates. Every card issuing bank has a set cost for each card type that cardholders have in their wallets. It’ s called the Interchange cost. Interchange rates are non-negotiable with the banks.

Here are the average Interchange rates for each business type. Interchange rates depend on each card type and its rewards.

Retail sales – 1.3% -2.8%

Bar & Restaurant – 1.8% – 2.8%

Service business – 1.4% – 2.8%

Amex. 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 is usually 0.3%-0.7% depending on the card type. It covers all security related issues that could arise with card-not-present transactions. Stolen cards, fraudulent cards, cards found in the street, etc.

• Card brands dues & assessments. Visa, MasterCard, Discover, Amex and other cards brands have their set dues. Their cost is usually 0.14% + $0.02 for each transaction.

• 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 always fixed; however, 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.

Sales volume.

$0-50K                     Interchange rates + Dues & Assessments +    1.49%+12 cents for each transaction

$50-100K                Interchange rates + Dues & Assessments +    0.79%+10 cents for each transaction

$100-200                Interchange rates + Dues & Assessments +    0.65%+9 cents for each transaction

$200-500                Interchange rates + Dues & Assessments +    0.49%+8 cents for each transaction

$500-up                  Interchange rates + Dues & Assessments +    0.29%+8 cents for each transaction

*Our processing fees are negotiable on a case-by-case basis.

What comes with our service: If you sign up with us, you will get our customer service in addition to the payment processors service. We usually help our clients with monitoring rates, replying to chargebacks, getting IRS forms and other administrative requests.

Flat rate model

We don’t typically board accounts on a flat rate pricing however if looking at a one consistent flat fee gives you a piece of mind over looking at tons of different Interchange rates and other fees, we can work out a flat rate pricing for your business type. 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 have a higher cost depending on what kind of rewards are linked to that card. Basically, businesses that accept cards with more rewards end up paying for cardholders’ rewards. Fortunately, there are a few ways to lower the cost of payment card acceptance.

• Debit cards are generally cheaper than any credit cards since debit cards have no rewards added 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.
• Face-to-face entered transactions have a lower fee 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 card type.
• EMV readers will give you peace of mind when it comes to security and fraud. Usually, EMV transactions are encrypted, which makes them more difficult to compromise. You won’t automatically lose chargebacks and you won’t be held accountable in case of fraud since the EMV gateway provider supplied you with secure, up-to-date terminals and technology.
• AVS (Address Verification Service) will come in handy when you enter transactions manually. Banks will charge you a lower tier 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.
• Junk or Miscellaneous Fees. Sometimes payment processors can add small fees to each transaction. We will make sure to monitor the account and respond accordingly.

We don’t promise to be the cheapest company out there, but we will be the best long-term partner. With our extensive experience in the payment industry, we offer to set up accounts correctly from the start.

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

Look no further, reach out for a free consultation from top-tier payment professionals or send the merchant statement for analysis! We would be happy to work with you.