Merchants often ask us how to get the best deal on their merchant services processing rates. We always give the same answer interchange plus pricing and a long term contract.
Here is how it works: Visa, MasterCard, American Express and Discover all charge merchant services processors interchange rates to process transactions. There are the exact same costs and everyone who accepts electronic payments has to pay these. Interchange plus pricing allows your merchant services provider to make a very small profit on accepting your transactions, a .05% markup is fine. Then ask your merchant services provider to guarantee no pricing increase on the plus part of your interchange plus pricing for 3 years. Then you are locked in at a great rate for 3 years. This is merchant services rates done right!
