Why Businesses Should Choose Flat Fee Merchant Services


With the amount of risk in credit card processing, businesses are always susceptible to fraud or debt. As you search among potential high-risk payment processors, you’ll note the terms “flat fee” or “flat rate.”

But what does it mean? In this article, you’ll discover what flat fees are and why businesses should choose their merchant services.

What Are Flat Fee Merchant Services?

Flat fee or flat rate merchant services became popular during the height of credit card usage in stores and businesses. These services charge a fixed rate based on the number of cards businesses process.

To better understand flat fee services, there are several factors to consider:

Interchange Fees

Interchange fees are amounts set by the credit card issuing bank. These charges can vary depending on the transaction’s risk. For example, face-to-face transactions in brick-and-mortar establishments tend to have lower interchange fees than online payments.

Assessment Fees

Assessment fees are amounts you would pay toward a specific card brand. These amounts typically are fixed percentages that you wouldn’t be able to negotiate or change.

Markup Fees

Markups are fees credit card processors have control over and set.

Generally, flat fee merchant services will consider interchange fees and require a determined markup on each transaction to establish their predetermined rates.

What Are Two Models Flat Fee Merchant Services Offer?

There are two models for flat fee merchant services that a business owner can expect—the first involves fees calculated as a percentage of monthly processing volume. The second model calculates fees as a percentage of monthly processing volume while including a predetermined fixed rate.

What Are the Advantages?

The advantages of choosing flat fee merchant services are relatively straightforward, starting with less stress and confusion a business owner faces when accepting card payments.

You wouldn’t need to scrutinize your merchant statement and inspect every transaction to determine whether your processor is worth their business. There are no surprises, so you’ll know your exact balance ahead of time.

Businesses should choose flat fee merchant services since they help owners get started with accepting credit card payments. When looking through high-risk merchant account providers, Electronic Transfer has the tools and resources to help you take different forms of payment. We offer lower credit card processing fees and low rates, making us an ideal partner for your business.