The simplest solution to a problem isn’t always the most sensible. If you’re still using blended rate payment processing because it’s easier to understand, you may be losing a lot of money unnecessarily. While International Payment Gateway is more complicated, it’s also more precise and may be able to save you money on most of your transactions. If you choose optimized interchange plus, automating your billing could save you even more.
When you use blended rate processing, you are charged an average processing fee per transaction, regardless of the type of transaction. This could mean that you are paying too much. When you switch to cost plus, you are charged the necessary interchange fees plus a small amount on each transaction. The potential savings are significant for any business, but even greater if your business does a large volume of small transactions.
Blended rate pricing is relatively simple and easy to comprehend, but that doesn’t make it a good option for your business, for the simple fact that the type of card your customer is using and the costs associated with specific cards make no difference to what you are charged for the transaction, you are charged the same no matter what card your customer pays with. If you accept a variety of cards, switching to cost plus may not save as much. If, however, your company does a significant number of smaller transactions, or you take a lot of debit cards, the simpler blended rate processing translates to paying more than you would with a cost plus solution.
Cost plus processing means that you pay a fixed rate added to the actual cost of processing the card. You never pay more than you have to.
If you do a large volume of transaction, especially if your business does primarily transactions that are less expensive to process, you’ll see tremendous savings from switching to a cost plus plan. Cost plus billing is the only billing plan that offers this type of processing. Not only will you save money over blended processing, automation will ensure that you will pay the lowest possible rate on every transaction.
The savings offered by international payment gateway are not small. For every $100 debit card transaction, you could save a dollar or more.
For a complete payment processing system, consider international payment gateway on the company payment management platform and achieve your payment management objectives. It’s not a difficult concept, every dollar you can save on your bottom line. Stop throwing away money every time you make a transaction.
For more information on International Payment Gateway, contact us today to talk with one of our experts. We’ll explain not only how cost plus billing can save you money over blended process, but we’ll explain all of the other features of international payment gateway’s and how they can benefit your company as well.