1880 S Dairy Ashford Rd, Suite 650, Houston, TX 77077

Bring your business into the future with simplified pricing

There are many components to running a business that merchants need to consider to ensure success. From staffing to accounting, as a small business owner, you’re always looking for innovative payment processing solutions that will give you an edge over the competition and ensure your company thrives. Taking a detailed look at transaction fees is a good place to start. Many businesses are unaware of just how much money goes towards card processing or what options are available to make monthly rates more consistent to better predict revenue. Sekure Payment Experts offers simplified payment pricing, or flat-rate pricing, which can be an effective model to help business owners reach their goals.

What is simplified payment pricing, or “flat-rate” pricing?

Flat-rate pricing is a model that utilizes a pre-fixed fee for a particular service, regardless of how much time or resources it takes to complete. This approach may seem like a simple practice, but it has a number of great benefits for small businesses, including increased predictable revenue and reduced merchant processing rates.

Flat-rate pricing for card processing simply means setting a standard for all transactions, regardless of the type of card type. Whether a low markup card, such as a debit card, or a high markup card, like a corporate credit card, is being used, the cost will remain the same for the business. This provides business owners with the ability to confidently calculate their credit card processing fee since the rate is the same month by month. Flate rates are incredibly appealing from a budgeting perspective, as it supports business owners’ predict revenue.

How does flat-rate pricing work

Typically, when a business processes a credit card transaction, it has to pay different fees.  There is an interchange fee that is paid to the card carrier’s issuing bank, an assessment fee from the credit card company, and a markup fee to the credit card processor.

Payment processing rates on a credit card transaction can vary quite a bit depending on the card type, card brand, and processing method. Interchange fees and assessment fees are combined into a flat rate, and the merchant doesn’t know which interchange rate is applied.

With flat-rate pricing, every transaction has the same processing cost, which means no matter what type of credit card is used for a purchase, the cost for processing remains the same. However, under this model, providers would then cover high-cost (corporate cards) and low-cost debit card transaction types. For business owners, this would mean providers charge more for transactions that would cost less on a different plan.

If flat-rate pricing good for my business?

Many small business owners choose flat-rate pricing because of its simplicity and predictability. Flat-rate processing is a straightforward option for merchants who don’t want the headache that comes along with interchange rates and fees and the uncertainty of how much will be paid in processing fees each month.

Flat-rate processing is also an option for new businesses that may qualify for a merchant account, as it has a low barrier to entry. Another option, that also eliminates all credit card transaction rates are dual-pricing solutions.

Flat-rate pricing works best for businesses that either have a low volume of processing on a monthly basis or have small transaction types. For instance, a business like a bistro or coffee shop that sells small items like coffee or baked goods would be able to save under the flat-rate model. For businesses that process a very high volume of transactions, or sell high costing products, then flat rate pricing can end up costing owners more on a monthly basis.

Choosing flat-rate means, you are lumping all transactions into one fee.  Every business requires unique solutions in order to meet its goals. Flat-rate pricing offers a simplistic approach to processing transactions. Being able to predict revenue can be integral to ensuring growth.

Choosing the right model can feel daunting, it takes professionals who are experienced and well-equipped to help make the right decisions. Sekure Payment Experts can help you sort out the details and find the best fit for your business.