Credit card processing companies cite increases in online purchases and the added card fraud risk as reasons for increasing interchange fees. While true, it is not the whole story. In the background, card issuers have been offering lavish travel perks and cashback bonuses, which, too, carry higher payment processing fees.
Credit cards cost 2x more to process than debit cards due to customer travel perks and cashback. The merchant is paying for all their customer’s rewards.
“The cost of credit card processing has been on the rise in recent years as premium cards, which have heftier fees, grow in popularity among consumers.”
Forbes, February, 14 2020
92% of credit card transactions are on premium/rewards cards, resulting in ever-higher merchant payment fees.
Wall Street Journal, January 18, 2018
You can shift all or some of the payment processing costs to the cardholder. The cardholder is choosing to use their premium credit card for the perks; you can offer them the choice of choosing a lower-cost method to pay without a fee or paying a small fee to use a high-cost credit card. Consumers already pay a fee for using credit at the pump, so why should your POS be any different?
A one-size-fits-all payment solution doesn’t work for all businesses and verticals. Each business and vertical has unique needs and only IntelliPay offers a range of solutions in addition to a low-cost, traditional, merchant-pays-the-fees, processing solution. All our solutions are 100% compliant and in use by thousands of merchants. Each solution will help you reduce costs and improve margins.
An alternative fee-based program for Government and Higher Education institutions enables these organizations to charge a fixed or variable fee on all online or in-person credit or debit transactions.
Your organization gets the invoice amount due, and IntelliPay collects the service fee, pays the processing costs, and manages the merchant account for you.
Please contact a consultant to see how since 2004, IntelliPay has been helping governments of all sizes save even more time and money by using other fee-based options for non-qualifying transactions.
IntelliPay’s Outsourced Website or “Site” Fee Program adds an up to 4% fee to the customer’s amount due, billing them for the customer support, website hosting, software, and processing fees.
Our Site Fee Model bridges the gap for merchants that can’t or don’t want to offer credit cards and customers who are requesting the ability to pay with their credit cards. Site Fee is an alternative fee-based program that enables IntelliPay to charge a separate fee (percentage or flat) to the customer for using our services, software, maintenance, processing, and Level 1 customer support that we provide on behalf of the merchant.
Visit our Site Fee page to learn more about the advantages of Site Fee payment processing.
Start on the road to higher margins with Site Fee; talk with a consultant today.
Stop paying for your customers’ perks and vacations. Use our FairPay program and balance the scales. If your customers pay with a credit card, let them pay for their rewards. If they pay with a debit card, you pay for the processing fees (which is typically 2-3% lower than credit card fees.) FairPay is the fairest, 100% compliant surcharging program in the market!
FairPay doesn’t add the fee when someone uses their debit card that’s tied to a bank account (no rewards).
Stop paying for your customer’s cash back rewards and airline miles with your margins. Get started with FairPay today.
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 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. For example, theatres are selling tickets online versus in their lobby.
To learn how convenience fee payment processing can boost your margins, talk with a consultant today.
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 can use and accept credit card processing at affordable rates.
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. Please talk to a consultant to get started with shared fee processing today.
This is the way most merchants accept payments today. No fees are assessed to the customer, and the merchant is responsible for all interchange, dues, assessments, PCI, and gateway fees on all online and in-person transactions.
While this may not be considered an alternative fee-based solution, we still want to provide alternative pricing models to fit our client’s needs. Please contact a consultant to see how IntelliPay can save you money on all your processing needs.
The choice of a payment solution for your business shouldn’t be overwhelming, although it doesn’t have to be. At IntelliPay, we lay out all your options side by side below to make comparison and the right decision easier. Reach out to our team with questions!