Payment Processing Pricing Models
Cost-Plus Pricing vs. Bundled Pricing
Cost-Plus Pricing
- When you choose Payway, you enjoy absolute transparency from our cost-plus pricing model, also called interchange-plus pricing because the resulting cost is the interchange fee plus the merchant services markup.
- Instead of a blended percentage rate, you pay the published interchange rate, a per transaction fee and basis points (one basis point is 0.01%).
- When you run the numbers, cost-plus pricing tends to offer significant savings over bundled pricing.
Bundled Pricing
- Almost all payment gateways offer merchant accounts as part of their services. Most offer an all-in-one blended rate for the gateway and the merchant account service.
- Companies usually advertise 2.9% plus 30 cents per transaction. This model seems pretty straightforward and is convenient.
- However, not all gateways require you to sign up with their merchant in order to get the gateway. These providers are system agnostic and can code their gateway to any acquirer or processor. You can bring your own processor on board if you wish or sign on with one of theirs.