In order to determine the cheapest credit card processing program available in the market, it is important to understand the different pricing models used by payment processors to determine your rates. Let’s check them out below and conclude which pricing model is the cheapest.
Tiered pricing: This pricing model charges you progressively higher rates based on the type of card used.
Flat-rate pricing: It charges a flat percentage plus a transaction fee for all credit, debit, or rewards card transactions.
Interchange-Plus pricing: It charges the interchange fee (cost) of the credit card issuer plus a mark-up percentage of the credit card processing company. This pricing model is very common and transparent where you know how much you are paying to the processor and how much is going towards the interchange fees.
Membership-based pricing: It is a fixed monthly or annual membership fee.
Zero fee credit card processing: It eliminates your processing expense by offering customers a cash and a credit price. Much like gas stations have for years. The credit price is slightly higher to cover your cost of processing. This is all done automatically.
So based on the pricing model discussed above, you can clearly conclude that zero fee credit card processing is the cheapest credit card processing solution out there in the market offering the lowest rates with free equipment options for qualified merchants. The best value credit card processing company is the one that provides the features you need at the lowest price for your business.