Where Does Your Processing Money Go?
Many businesses use a simple flat or blended rate where the processor charges a published percentage plus a transaction fee. Popular solutions like Square are a common example of this simple blended pricing model, providing predictability for merchants who want to keep things straightforward.
Rates and fees vary by provider, plan, transaction type, and merchant. Examples are for illustration purposes only.
Visual Pricing Example
$100 Sale
2.60% rate
+ Transaction fee
$2.60
$0.15
Processing Cost
$2.75
Cash Discount: Reduce the Processing Expense Coming Out of Your Bottom Line
A properly structured cash-discount program allows merchants to recover some or all of the expense associated with accepting card payments by offering a discount to customers who choose to pay with cash or eligible non-card methods.
Regular/Card Price
$10.40
Cash Discount
-$0.40
$10.00
Customer Cash Price
Monthly Impact Example
$100,000 monthly card sales
At 2.50% processing:
$2,500/month
$30,000 / year total expense
A properly structured cash-discount program may allow the merchant to recover a significant portion of this expense. Savings are illustrative and not guaranteed.
Which Pricing Model Is Right for Your Business?
Availability, pricing, disclosures, and program requirements vary. PPT will review your business and current processing before recommending a program. Examples are for illustration purposes only.
Flat / Blended Pricing
- Simple
- Predictable Monthly Rates
- Merchant Absorbs Costs
Best for businesses wanting simple, predictable pricing. Example: 2.60% + $0.15. The merchant absorbs the full processing expense for simpler bookkeeping.
Interchange-Plus
- Transparent
- Cost-Plus Dynamics
- Component Separation
Best for businesses wanting transparent pricing and to pay underlying card cost plus fixed markup. Formula: Interchange + Network Fees + Processor Markup.
Cash Discount
- Recovery
- Offset Merchant Fees
- Direct Margin Protection
Best for businesses wanting to reduce card-processing expense coming out of their bottom line. Customers paying with cash receive a discount, lowering overall merchant costs.
Let's Find Out What You're Really Paying.
Send us your current processing statement and let PPT Advisor Group break down your costs. We'll show you where your money is going and what options may be available to reduce your processing expense.
We Don't Guess. We Analyze Your Numbers.
REVIEW
We review your current processing statement.
ANALYZE
We identify your actual effective rate, fees, volume, transaction mix, and current costs.
COMPARE
We compare your current program against interchange-plus and cash-discount options when appropriate.
RECOMMEND
We explain which option makes the most sense for your business.
IMPLEMENT
We handle the setup, equipment, POS integration, and transition.
SUPPORT
We continue supporting you after you go live.
Your business is different. Your processing program should be too.