FFL Payments Pricing Model: Interchange Plus +
FFL Payments Pricing Model: Interchange Plus +
Transparent, Cost-Effective, and Simple
At FFL Payments, we use an “Interchange Plus +” pricing model. Here’s what that means:
- Interchange Fee: This is the fee set by the card networks (Visa, MasterCard, etc.) and paid to the card-issuing banks. This fee varies based on the type of card used and the transaction.
- Plus 0.50%: This is our markup, a flat 0.50% added on top of the interchange fee.
Why Interchange Plus + is Better
- Transparency: Unlike flat-rate or tiered pricing models, our interchange-plus model clearly separates the interchange fee from our markup. You know exactly what you’re paying and where the money is going.
- Cost Savings:
- Flat-Rate Pricing: Many providers offer flat-rate pricing (e.g., 2.9% + $0.30 per transaction). This rate is often much higher than the actual interchange fees plus a small markup, meaning you end up paying more.
- Tiered Pricing: Tiered models categorize transactions into qualified, mid-qualified, and non-qualified tiers, each with different rates. This complexity often hides the true cost and can lead to higher overall fees.
- Flexibility: Our model adapts to the true cost of transactions. As interchange fees vary, you only pay the 0.50% markup on top of the actual cost, ensuring you don’t overpay during lower-cost transactions.
- Predictability: Even though interchange fees vary, our consistent 0.50% markup ensures a predictable, low-cost structure. This helps with budgeting and financial planning.
Comparing Our Model to the Industry
| Pricing Model | Description | Typical Cost | Transparency | Savings Potential |
|---|---|---|---|---|
| Interchange Plus | Interchange fee + fixed markup (e.g., 0.50%) | Varies, but lower | High | High |
| Flat Rate | Single rate for all transactions (e.g., 2.9% + $0.30) | Often higher | Moderate | Low |
| Tiered Pricing | Categorizes transactions into tiers with different rates | Often higher | Low | Low |
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Real-World Savings Example
Scenario: Monthly transactions totaling $100,000
- Flat Rate (2.9% + $0.30): $2,900 + transaction fees
- Tiered Pricing: Varies, often $3,000+
- FFL Payments (Interchange Plus 0.50%): Let’s assume an average interchange fee of 1.8%:
- Interchange Fees: $1,800
- Markup (0.50%): $500
- Total: $2,300
Real-World Savings Example
Scenario: Monthly transactions totaling $100,000
- Flat Rate (2.9% + $0.30): $2,900 + transaction fees
- Tiered Pricing: Varies, often $3,000+
- FFL Payments (Interchange Plus 0.50%): Let’s assume an average interchange fee of 1.8%:
- Interchange Fees: $1,800
- Markup (0.50%): $500
- Total: $2,300
Lower the Cost of Processing Fees for Credit Cards.
Lower the Cost of Processing Fees for Credit Cards.
The costs associated with running a small business continue to increase and finding creative ways to recoup those costs can be
challenging.
Priority’s proprietary application, MX Merchant – Advantage for Surcharging, provides you with the ability to apply a payment card surcharge — also known as a checkout fee — which is an additional fee added to a customer’s bill when a credit card is used for payment and helps offset the cost of processing fees for credit card acceptance.
Utilize the virtual terminal, Quick Pay and a card reader, or pair Advantage for Surcharging with the Dejavoo Z series, to continue saving by obtaining swiped rates vs. keyed.
Advantage for Surcharging is available on Express. It is also integrated with the following Dejavoo solutions:
- Z3 PIN Pad / Terminal
- Z6 PIN Pad / Terminal
- Z8 – Countertop Ethernet & WiFi
- Z9 – 3G/4G & WiFi
- Z9 – WiFi Only
- Z11 – Countertop
Advantage for Surcharging also integrates seamlessly with these MX features:
- QuickBooks Sync
- Payment Links
- Invoice
The FFL Payments Advantage | A Gun Friendly Payment Gateway
- Save Money: By paying only the actual interchange fees plus our low 0.50% markup, you save significantly compared to other models.
- Stay Informed: Our transparent model means no hidden fees and no surprises. You always know what you’re paying.
- Simplify Your Finances: Our straightforward pricing helps you manage your costs more effectively, making it easier to budget and plan for growth.
Choose FFL Payments for a transparent, cost-effective, and easy-to-understand pricing model. Save money and gain peace of mind with our interchange-plus approach.
