When it comes to lower processing rates for credit card processing, merchants still need to find a solution that suits their business needs. Finding the right solution can take time as it often differs depending on the credit card brand used for the purchase. In addition to credit card fees, there may also be payment processing fees depending on the structure of your plan.
Many merchants may opt to add a credit card convenience fee to compensate for these fees. Merchants have the right to levy fees by adding a surcharge to transactions. However, even if the customer selects credit, merchants cannot apply these surcharges to debit cards.
Payment processing fees: Brand-level vs. product-level surcharge
Surcharges within payment processing fees can be identified under two categories. The first is product-level surcharges which apply to specific types of purchases, regardless of the credit card brand used for payments. In this scenario, merchants must use product-level surcharges uniformly for all transactions made for that specific product.
The second category is brand-level surcharges. This type of surcharge applies to all transactions made with a specific kind of credit card. These surcharges cannot exceed the rate of the credit card being used.
For instance, Visa has updated the maximum amount for credit card surcharges of its cards. In the U.S. and the U.S. Territories, the maximum amount for a credit card surcharge will be lowered from 4% to 3%. Suppose a merchant operates stores in multiple states, some allowing surcharges and others prohibiting it entirely. In that case, the Visa network rules allow that merchant to apply surcharges in states where it is permissible.
Many merchants express frustration due to the cycle of rate changes that can often hurt their bottom line. Sekure Payment Experts have programs to help small businesses and their customers save money.
Save up to 100% on your credit card processing costs
Merchants should take the time to identify how much they spend on credit card processing fees each year. Every business could benefit from having a little bit more cash in its pocket. Depending on your business model, Sekure have the perfect solution for business owners who want to avoid surcharges and pesky processing fees.
Surcharge rates continuously fluctuate, and the burden of processing costs can hinder small businesses. The Edge program is the best payment processing solution for putting thousands of dollars back in your pocket.
Edge is not a surcharge or a cash discount program but a dual-price program. Credit card companies encourage the dual price model, which sets a price increase at the item level and keeps the sales volume steady.
Customers paying with cash will pay one price; if they pay by credit card, they get a different price. The credit card terminal handles all the calculations for you, and you end up with the same amount in your bank account on all sales.
Other payment processing solutions apply charges to all customers. Under the Edge, customers can choose what price they want to pay based on their payment method.
The Edge is automatic and transparent. We provide you with clear signage indicating that all items have two prices and that customers have the option to pay with cash and save.
Merchants benefit because there are no added fees. The Edge allows business owners to avoid monthly and annual costs. Sekure will also offer free Payanywhere smart equipment, which helps reduce any PCI compliance fees. The same flat rate is applied to every transaction, and the terminal automatically adjusts the price.
The Edge was built to support merchants in all 50 states and encourage them to follow their specific state's commerce and pricing laws.
When it comes to the Edge program, the merchant stays in control. They have the choice to turn the program off and on at their discretion. You can rest assured knowing that Edge is available for all credit card types and transactions. This also includes mobile wallet options like Apple Pay and Android Pay to name a few. Sekure wants to ensure businesses have the flexibility to take payments in any form. The Edge is fully mobile and compatible with wireless terminals and POS systems.
Contact our Payment Experts today, and we will walk you through the process of setting up the Edge program for your business.