You just finished a busy week. Your sales were strong. Then your payment processing statement arrives. The fees are staggering. It feels like a tax on your success. You’re not alone. Most business owners just accept these confusing costs as a necessary evil.
But what if you could change that? What if you could understand every charge and, in doing so, unlock massive savings?
The secret isn’t a magic trick. It’s about understanding the pricing model you’re on. Switching to a transparent plan can cut your payment costs significantly. For a small business, that can mean saving thousands of dollars a year. Money that goes straight back into your pocket.
Let’s break down how payment processing really works. And more importantly, how you can take control.
The Two Pricing Models: The Maze vs. The Map
Most providers use one of two ways to charge you. Knowing the difference is the first step to saving money.
1. Tiered Pricing (The Maze): This is the most common and confusing model. Your provider bundles different card types (debit, rewards, corporate) into vague tiers with names like “Qualified,” “Mid-Qualified,” and “Non-Qualified.
- The Problem: They decide which card goes in which tier. That simple debit card swipe? “Qualified” – low fee. A customer’s premium travel rewards card? Suddenly, it’s “Non-Qualified” – with a huge fee. You have no visibility or control. Costs are unpredictable.
2. Interchange-Plus Pricing (The Map): This model is entire transparent. It will reveal to you the very price of each transaction, in two distinct terms:
- Interchange Fee: This is the base rate set by the card networks (like Visa or Mastercard). Every processor pays this. It’s non-negotiable and varies by card type.
- Processor Markup: This is your provider’s fee for their service. With interchange-plus, this is a fixed, transparent percentage and/or a small per-transaction fee.
Think of it like buying a loaf of bread. Tiered pricing gives you one mysterious, inflated price. Interchange-plus shows you the baker’s cost plus the store’s small, fair markup. You see everything.
How Transparency Saves You Real Money
Let’s get practical. How does this transparency turn into savings?
Imagine a $100 sale with a customer’s premium rewards card.
1. With Tiered Pricing: The provider might charge you a “Non-Qualified” rate of 3.5%. Your fee is $3.50. You have no idea why.
2. With Transparent Interchange-Plus:
- Interchange Fee (set by card network): 2.1% + $0.10 = $2.20
- Processor Markup (your provider’s fee): 0.30% + $0.10 = $0.40
- Your Total Fee: $2.60
You just saved $0.90 on a single transaction. Now multiply that by hundreds of transactions a month. The savings become substantial. One of our clients, a local cafe in Ottawa, switched to this model and saved over $4,200 in their first year. That was enough to upgrade their espresso machine. That’s real money for real growth.
Three Steps to Start Saving on Fees Today
You don’t have to feel stuck. Here is a simple action plan.
- Review Your Current Statement. Get your last statement. Look for the summary. Do you see terms like “Qualified,” “Mid-Qualified,” or “Non-Qualified”? If you do, you’re on a tiered plan. This is your signal to start asking questions.
- Ask Your Provider One Simple Question. Call them and ask: “Can you move me to a transparent interchange-plus pricing plan?” Their answer will tell you everything you need to know about their commitment to fairness.
- Get a Quote from a Transparent Provider. Any reputable payment company should be able to give you a clear, line-by-line quote. It should clearly show the interchange costs and their fixed markup. No vague tiers, no hidden fees.
Taking Control of Your Bottom Line
Payment processing is a cost of doing business. But overpaying doesn’t have to be. By demanding transparency, you move from a position of confusion to a position of control. You’re not just accepting fees; you’re understanding them. And when you understand your costs, you can manage them.
Those saved thousands can fund your next big move, a marketing push, new equipment, or a well-deserved bonus.
Are you ready to see what your business could save?
At Bridge Payment, we believe in fair and clear pricing. We provide honest interchange-plus models because we think you deserve to keep more of your hard-earned revenue. Let’s have a conversation about your business. We can help you understand your current fees and show you a clearer, more affordable path forward.