Understand Flat Rate Processing:
Is It Right For You?
Flat rate payment processing offers a seemingly simple and predictable fee structure, charging a single percentage for all credit card transactions, often with a small per-transaction fee. While its straightforward nature appeals to many businesses, particularly startups and those with very low volume, it can be significantly more expensive for businesses with higher transaction volumes or those accepting many lower-cost card types. Our analysis clarifies if this model truly benefits your unique business needs.
The Simplicity vs. Cost Trade-off of Flat Rate Pricing
Flat rate pricing models consolidate all the complex interchange fees, assessments, and processor markups into one easy-to-understand percentage. Companies like Square and Stripe popularized this model due to its simplicity, making it attractive for new businesses or those with unpredictable, low monthly processing volumes. However, this simplicity often comes at a premium. Processors offering flat rates build in a buffer to cover the varying costs of different card types (e.g., rewards cards, debit cards). This means you might overpay for transactions that would typically qualify for much lower interchange rates under other pricing models, ultimately eroding your profits as your business grows.
How Our Analysis Determines Your Optimal Pricing Model
We go beyond the surface to analyze whether a flat rate processing model is truly cost-effective for your business. Our merchant statement analysis and consultation include:
Volume
Assessment
Evaluating your monthly transaction volume and average ticket size to project actual costs under a flat rate versus other models.
Card Mix
Analysis
Identifying the types of cards your customers primarily use (e.g., consumer debit, premium rewards, business cards) to see if a flat rate is consistently more expensive.
Hidden Fee Identification
Even with flat rates, some processors may still layer on additional monthly fees or less transparent charges.
Key Considerations for Flat Rate Processing:
We empower you with data to make informed decisions about your payment processing.
Don't let a "simple" pricing model secretly cost you more. Contact us today to schedule your merchant statement analysis. Let us help you evaluate if flat rate processing is truly the right fit for your business or if greater savings await.