Common credit card processing pricing structures
The simplest pricing structure is flat-rate pricing. In this pricing structure, a flat rate is charged for every transaction. That rate will often include a percentage of the transaction cost and a flat fee—2.5% + 30¢ per transaction, for example.
The next most common pricing structure is interchange-plus pricing. There are a multitude of different interchange fees based on the card used, what is being purchased, and a number of other factors. In this pricing system, those interchange fees are passed on to you directly in addition to a small cut added by your processing company—interchange + 0.5% + 15¢ per transaction, for example.
Some companies will also charge a monthly fee on top of their processing rates. Usually, processing companies with really low rates charge an additional monthly fee. But one thing to look out for with monthly fees is long contracts. If you’ve found a great processing company, a long contract may not be a problem. But you wouldn’t want to get stuck in a three-year contract with a processing provider you don’t like.