How Many Credit Card Processors Offer Flat Rates

Florence Carpenter

Multiple credit card processors, including Square, Paypal, and Stripe, offer fixed, flat rates with each transaction. When compared with the interchange module, flat rate processing is a predictable solution that is easy to monitor. It is also ideal for small and seasonal businesses looking for a way to avoid monthly subscription fees. 

How Flat Rate Transaction Works

Every time a vendor processes a credit card request, they are required to pay three separate fees:

  • Interchange fee, which is paid to the bank that issued the credit card;
  • Network fee, which is paid to the card’s brand (Mastercard, Visa);
  • Markup, which is the payment that is paid to the credit card processor. 

Other than the markup fee, the merchants have no control over the credit card processing fees. They are preset according to several factors, including the type of card used, type of transaction (online, brick-and-mortar), and the item purchased.

A flat-rate payment system tries to clear up some of the confusion that goes with traditional payment plans and provides a determined rate. This means that you will know the amount you will be paying to the credit card processor in advance. 

What Is An Average Flat Rate Fee?

The flat-rate credit card processing averages around 2.75% to 2.90% for each swiped transaction. In some scenarios, a per-transaction fee is accumulated that typically ranges from 20 to 30 cents for every activity. 

The companies can also specify the amount based on the type of transaction. For example, Square offers three primary payment packages:

  • 2.6% + $0.10 for all mobile, chip cards, and swiped payments.
  • 2.9% + $0.30 for transactions through eCommerce integrations. 
  • 3.5% + $0.15 for all card-not-present transactions.

Similarly, Stripe charges 2.9% + $0.30 for every transaction while PayPal charges 3.49% + $0.49 for every digital payment. 

Is Flat Rate Credit Card Processing The Right Choice?

Flat-rate credit card processing is beneficial for businesses that have low monthly processing volumes, but it can get expensive if you receive more than a few transactions per month. In fact, you will find yourself paying more than interchange after some time.

If that is the case with your business, Processing Card recommends looking at other providers that offer the best credit card processing rates. Check out our guide to the best credit card processing services today.

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