Which is better, a flat rate or total cost of payment processing that is less overall?

We think you know the answer to this.

Still, the hook of a flat percentage continues to attract attention.

We cannot even begin to tell you how many times this has confused people and made them question their decisions.

Let’s try it this way instead.

If you agree to pay 3% for processing and you have $10,000 a month in total sales, then you will pay $300 for a month. Simple math right? That would be a flat rate of 3 points on every dollar.

Except, the percentage does not include other fees (or the cost of online processing which is at a higher rate.) We have been asked to look at statements and can easily spot account or statement fees and other charges that show up on the account.

Things that are in the fine print.

Or, non-compliance fees which are unfortunately assessed because the provider does not bring this to the customer’s attention when it happens. These can cost anywhere from $0 to $50 for a monthly account, $3.00 to $8 for a paper statement, and $50 for non compliance.

Other “costs” include the time to deposit, Point of Sale system lease or rental and charge backs. Software integration and upgrades often add more.

The point here is that this can seem simple, but becomes complicated and more costly quite quickly.

Reach out to our team today to learn more and find out what is better for you and your business. If we can’t help you achieve an overall lower total cost, then we will tell you that. We don’t have contracts that tie you to us because we believe transparency is better for our customers (and we sleep better this way.)

PS We did the quick math on that last part and the rate is now over 4%.