If you’re a merchant, you’ve probably heard about interchange fees before.
These are fees which are set by card brands (such as VISA and Mastercard) and can vary depending on the type of transaction, your Merchant Category code and the type of card your customers have used.
But, did you know there are different pricing models for you to choose from?
The two pricing models most commonly used by UK eCommerce merchants are Fixed Pricing and Interchange++.
Here’s what you need to know about fixed pricing.
What is Fixed Pricing?
Fixed pricing is the simplest model to understand as you will only need to pay a single flat rate processing fee for every card transaction, regardless of the brand and category of card your customer pays with.
As the name suggests Fixed Pricing is exactly that, fixed. Regardless of fluctuating interchange fees between each transaction, you can always expect to pay the same overall fee.
It’s a popular choice among merchants looking for a predictable model where you know exactly what to expect from your interchange fees.
Want to know more?
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