Interchange fee is a term used in the credit card industry to describe a fee that a merchant’s bank (the “acquiring bank”) pays a customer’s bank (the “issuing bank”) when merchants accept cards using card networks such as Visa and MasterCard for purchases.
Sounds a little confusing, don’t you think?
As a business owner who accepts credit cards, and is considering Rate Lock, what do you need to know? What one really needs to understand that due to rather vague laws on the books it is possible to tack on unnecessary fees and charges. Which is why Rate Lock is so effective. We have a team of interchange experts that monitor you accounts and rearrange them to maximize efficiency and save you money. If you are paying too much in processing fees it s likely that a whole host of these interchange laws may be being violated or simply worked around. You could monitor these transactions yourself, but that would require you studying and understanding over 200 interchange laws. It is possible, of course, but wouldn’t your business be better served by you focusing on what you do best and leave the cost recovery to a team of experts? Your processing accounts will be constantly monitored and when we save you money that is when we get paid. Interchange is confusing, constantly changing and takes dedication in order to keep up with all the developments. The best part is if you do not save money, you do not pay for any services. It’s a good relationship, don’t you think?
So rather than only focus on being assured the lowest rate, let’s focus on making sure you are only being charged for that low rate, not a host of extra fees and add ons. That’s when you really save money, that’s when you truly lower your credit card processing rates, and that’s when you increase your profits.
It’s really pretty simple.
Burton,
Glad you liked it, we will be blogging more now that the holidays are behind us.