It is next to impossible to become an expert on the payment processing ecosystem. What is important is for a business owner to understand the rates, fees, assessment and monthly charges associated with a merchant account. Fortunately, this is actually very simple when you work with Merchant Processing Solutions Inc!
The Card Network: BRANDS (Visa/MasterCard/Discover/American Express) determine "Interchange" it is the universal cost all businesses must pay in order to accept credit card payments. Interchange is set by the card networks (BRANDS) and interchange rates are always made public and can be found online. The reason Interchange is so hard to understand is that each had BRAND issues hundreds of different rates between the various cards networks and issuing banks (DEBIT/CREDIT/REWARDS/POINTS/BUSINESS). The good news is virtually every business pays the same interchange and there is no n egotiating interchange!
In order for a customer to get a credit card, they must work with an entity that has a relationship with one of the BRANDS (Visa/Mastercard/Discover/American Express):
Each of the above examples of credit cards leads to confusion due to their negociated BRANDS Interchange Rates & assessment fees, merchant processing fees and merchant platform transaction fees. So, if every merchant pays the same fees for interchange and association dues, why are merchant processing fees so different? Its because each of the above mentioned cards were negociated at different Interchange Rates
Merchant processing is a necessary evil that ALL BUSINESSES need to deal with. Knowing which of these pricing methods makes most sense for your business like: