Merchants reduce your credit card processing costs

Up to 90% of credit card transactions are on reward credit cards.  Your margins are paying for someone else’s perks. IntelliPay’s fee-based payment models re-coup up to 4% of your credit card processing costs by adding a fee to all credit card transactions.

Talk with one of our consultants today and build a solution tailored to your specific needs.

Talk to a Consultant
Cost reduction graphic on IntelliPay's payments models page showing downward cost trend

Service Fee

In the U.S. Region, Service Fees are permitted for Government and Education Merchants.
This model is restricted to educational and government payments - taxes, fines, fees, etc.

Service Fee Rules:

  • Visa Rule ID #0029275 sets out the requirements for a Service Fee at a Government or Education Merchant. 
  • If the Government or Education Merchant qualifies to charge a Service Fee, the Merchant must process the Service Fee as a separate transaction.
  • The amount due is processed on 1 Transaction  (MID #1). This MID deposit the amount due by the citizen or student into the government or educational entity’s bank account. The Service Fee is processed on MID #2. These funds are deposited into the registered Third-Party Processor’s (TPP) bank account. Interchange dues and assessments are billed to the TPP’s bank account and they use the Service Fee Amount to cover the cost of the processing fees. Thus, the Service Fee Model is a no-cost processing solution for the merchants that qualify for this program. There are no state restrictions on the Service Fee Model.

IntelliPay Solution

IntelliPay’s Service Fee Model is 100% compliant with the card brand rules. We offer multiple, configurable, solutions that will fit your needs. We realize that not every government or education entity is the same.

That is why from Online to Card Present to Text Pay, we have a solution that empowers you to control your payment environment.

Site Fee

Our Site Fee Model is an alternative fee-based program that enables IntelliPay to charge a fee (percentage or flat) to the customer for using their software or technology. In this model, IntelliPay bills a separate fee to the customer for software, maintenance, processing, and customer support.

The fees DO NOT go to the merchant.
In this model, there are two MIDs. MID #1 is the merchant’s MID, where the amount owed by the customer is deposited into the merchant’s bank account. MID #2 is Intellipay’s MID, where the fee amount is charged to the customer and deposited into IntelliPay’s custodial pool account. The fees for both MIDs are billed to IntelliPay, making this a revenue-neutral solution for the merchant.

Site Fee Rules:

  • The customer is assessed a modest fee from the technology provider or TPP for USING the software to process online and over-the-phone payments.
  • The program will not be eligible for Card Present Payments.
  • Merchants will NOT receive the fee amount.
  • For government and IRS reporting purposes, Transaction (MID) #1 would be in the merchant’s name with their tax ID, since they are receiving these funds. MID #2 would be in our name with our tax ID as the funds would be deposited into our custodial pool account. This successfully fulfills the IRS tax reporting requirements.
  • DBA naming of the MIDs would be as follows: MID #1: “XYZ Company” and MID #2 “XYX Company Usage Fee.”
  • Fees would be displayed BEFORE the customer makes the payment and will have to check a box to agree to pay the cost of the Site Fee.

IntelliPay Solution

IntelliPay’s Site Fee solution is for merchants that do not wish to receive the convenience fee or surcharging fees into their bank account, or they do not make enough to cover their processing costs, the Site Fee Model is the perfect solution. This “outsourced fee-based management solution” eliminates all card not present processing costs to the merchant.

Allow our technology and accounting system to manage the fee program for you, enabling your entity to receive 100% of the funds without the accounting headaches and hassles.

Utility Fee

Utility companies are considered an emerging market by the card brands. As such, they are eligible to receive a special interchange category for credit and debit card processing.

Not only does IntelliPay enroll our Utility clients into the right MCC/Emerging Market Program, but we also configure a flat convenience fee that IntelliPay charges, making it a no-cost solution for the utility company.

Utility Fee Rules:

  • Utility companies are enrolled and boarded with the correct MCC code for the card brands
  • Utility paying customers will be assessed a flat rate, convenience fee to be determined based on volume and average ticket
  • IntelliPay will use the convenience fee to cover the cost of processing, support, and software, making this program revenue neutral ($0 cost) solution for the Utility Company.

IntelliPay Solution

Our unique, proprietary solution provides the payment technology, processing MIDs, and convenience fee technology, enabling our Utility clients with a revenue neutral ($0 cost) solution for accepting credit/debit cards for utility payments.

Convenience Fee

IntelliPay's Convenience Fee Model is for merchants that want to offset their merchant processing fees. Our solution is 100% compatible with Visa/MC Convenience Fee Processing program.

The Convenience Fee Model enables the merchant to charge a flat fee that is levied for the privilege of paying for a product or service using an alternative payment channel, or a payment method that is not standard for the merchant.

Movie theaters, for example, typically sell tickets face-to-face in the box office. However, if a movie theater gives customers the alternative option of paying by phone or online using a credit card, then that theater could charge a "convenience fee." So technically, you're not paying for using your credit card, but for the privilege of using the pay-by-phone or online option.

There are no state restrictions on the Convenience Fee Model.

Convenience Fee Rules

  • The merchant must charge a flat fee.
  • The fee and the amount due must be combined into one payment
  • The fee is assessed to online, pay-by-phone, or card not present (CNP) payments
  • Merchant must allow customer an alternative payment option that does not charge a fee.

Not a surcharge
The Convenience Fee Model is separate from the Surcharge Fee Model, which charges a fee simply for the privilege of using a credit card. 

IntelliPay Solution

IntelliPay enables merchants with the Convenience Fee Model for their online, over-the-phone, or CNP payments. Additionally, we enable the merchant with an alternative that does not charge a fee and or we enable the merchant to not charge the fee on a case-by-case basis

Shared Fee

Our Shared Fee Model is an alternative fee-based program that enables IntelliPay to charge a fee (percentage or flat) to the customer for using our software or technology and charge a low fee to the merchant.

In this model, IntelliPay bills both the customer and the merchant to “share” in the payment processing fees. There is a low, separate fee charged to the customer for software, maintenance, processing, and customer support and a low interchange + processing fee charged to the merchant.

By sharing the fees between the two parties, both are able to use and accept credit card processing at affordable rates.

Shared Fee Rules:

  • The fees do NOT go to the merchant.
  • In this model, there are two MIDs. MID #1 is the merchant’s MID, where the amount owed by the customer is deposited into the merchant’s bank account. MID #2 is Intellipay’s MID, where the fee amount is charged to the customer and deposited into IntelliPay’s custodial pool account.
  • The fees for MID #1 are billed to the merchant. The fees for MID#2 are billed to IntelliPay.
  • The merchant pays for the processing fees at cost with no markup.
  • IntelliPay uses the money from the customer to pay for MID#2 and to make their margin.

IntelliPay Solution

For merchants that do not want to put all of the costs of technology and processing on to their customers and wish to share in carrying the load, the shared fee program is a perfect match. Merchants can pay their portion of the technology and merchant account, while their customers can cover their portion. This “shared fee-based management solution” reduces all card not present processing costs to the merchant. Allow our alternative fee-based technology to manage the program for you, enabling you and your entity to reduce the expenses of your bottom line without the accounting headaches and hassles.

Surcharging Fee

The Surcharging Model can be complex. However, IntelliPay simplifies the program, making it simple and easy for you to use.

Surcharging is defined as the merchant charging a fee to the customer for using their credit card. This fee is typically a percentage of the amount owed by the customer but may be a flat fee as well.

There are currently seven states that restrict or prohibit merchants from Surcharging: Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, and Oklahoma. California, New York, and Texas used to be on the list; however, due to lawsuits that were imposed against the states, their courts ruled against their law that prohibited surcharging.

Surcharging Rules:

  • Surcharging is only allowed on credit cards. Debit and Prepaid cards are not allowed to be surcharged.
  • The fee and the amount due must be processed on one merchant account.
  • The merchant receives the extra funds and uses them to offset the cost of their merchant account
  • The fee must be the same across all card brands (can’t discriminate)

IntelliPay Solution:

IntelliPay’s Surcharging Program is certified with various processors. We take the management of the program out of your hands and have it all automatically configured for you. We allow the merchant to charge up to 4% on all credit cards, while prohibiting the surcharge on prepaid and debit cards. Additionally, the software will not add a fee if the customer making a payment lives in one of the prohibited states. Our surcharging program allows our merchant to offset their costs of credit card processing, making it an affordable solution.

Traditional Fee

Yes, we can support traditional merchant accounts as well. These accounts are necessary for card present payments and can be combined with some of the fee-based models above to provide multiple strategies and solutions for our clients.

In this model, no fees are assessed to the customer and the merchant is responsible for all interchange, dues, assessments, PCI, and gateway fees.

IntelliPay Solution

While this may not be considered as an alternative fee-based solution, we still want to provide alternative pricing models to fit our client’s needs. We offer the following:

  • One Rate Plans
  • Interchange + cost Plans
  • Tiered based Plans

Contact us today to see what plan and technology fits your needs.

Fee-Based Payment Model Comparison

Model Restrictions

Note 1. Government & Education Merchants. Eligible MCC’s 8211; 8220; 8244; 8249; 9211; 9222; 9311; 9399. Merchant registration with Visa required.

Note 2. Fee cannot exceed 4.00% of the transaction. Notices must be placed at Point of Entry and Point of Sale. Debit and Pre-Paid cards not permitted. Prohibited in CO., CT., FL., KS, ME, MA, OK.  Merchant registration with card associations required.

Note 3. Must be a flat fee combined into one singular payment. For card-not-present transactions, transaction type cannot be customary to industry. Merchant must offer customer an alternative payment option that does not charge a fee.

Note 4. IntelliPay receives the Site Fee and uses the funds to pay the merchant’s processing fees.