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Home UniPay Gateway Payment Advice How to Save on Merchant Services Fees

Merchant Services Fees

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Merchant Services Fees

When a merchant is approached by one or several processors, offering different pricing options, he needs to understand what groups of merchant services fees will represent the most considerable part of the processor’s revenue.

If a merchant processes large transaction volumes, then the major component in the total amount of fees charged will be represented by interchange (or processor’s) fees. These fees are the basis of the processor’s revenue, and represent the percentage of the total volume of transactions processed.

If a merchant processes smaller transaction volumes, then a significant part of merchant services fees charged will be represented by subscription fees. These fees do not depend on processed transaction volumes and represent a fixed amount, charged at regular time intervals.

If a merchant needs to process transactions, which require some special handling (such as chargeback disputing and decline recycling), then a considerable part of merchant services fees will be represented by flat fees. Flat fees are intended to offset the processor’s efforts, associated with specific types of transactions.

 Depending on transaction types and volumes you need to process, you can select the best pricing offering for your business.

 Find more information on how to save on merchant services fees in the respective article on #Paylosophy.

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