Even today a lot of merchants are still trying to find the answer to the question how to choose a payment processing system which offers the best pricing model. In order not to pay too much you need to understand the structure of payment processing costs.
Merchant services fees include interchange fees (processing fees), flat fees (base costs) and subscription fees. Processing fees consist of two components the interchange fee itself (the percentage from the processed transaction) and the per-item fee (a fixed amount paid for every processed transaction). Credit card processing companies use this approach in order to cover their expenses when they process both low amount transactions and high amount transaction. In the first case they benefit from the per-item fee and in the second case — from the interchange fee.
Flat fees are additional surcharges for processing various transaction types such as chargebacks, ACH returns, declines, etc. Flat fees can be represented as a fixed amount charged by the payment processing platform or as fees applied by the association and passed to the merchant.
The last group is subscription fees. These are recurring fees charged on the monthly basis for specific services, for instance, PCI compliance or merchant account usage.
Merchants with low processing volumes need to pay all the above mentioned types of fees while merchants who process a lot of transactions can expect processing costs to be reduced. For example, they will not have subscription fees, flat fees or both of them.
UniPay Payment Management Platform (visit the site) is a payment processing solution which will provide you with different pricing models depending on the peculiarities of your business so you will not have to pay too much, pricing needs to be reasonable.
Additional information on merchant services fees structure is available at #Paylosophy.