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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:

  1. 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.
  2. Plus 0.50%: This is our markup, a flat 0.50% added on top of the interchange fee.

Why Interchange Plus + is Better

  1. 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.
  2. 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.
  3. 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.
  4. 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

The FFL Payments Advantage | A Gun Friendly Solution

  • 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.