Flat Fee Processing

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Flat Fee Processing: What is it?

Today we’re going to talk about flat fee processing in merchant services.

In your search for a payment processor, you’ve probably come across companies saying that they are “flat rate”. But what does that mean? Flat rate can either be in reference to a percentage charge or a set fee. A flat rate percentage and a flat rate fee sound the same, but they’re actually two very different things. In this blog, we’ll be discussing these two “flat rates”, what they mean, and how they impact your business.

Flat Rate Percentage

A flat rate percentage is a fixed percentage that you pay for every transaction. While this might seem simple, it ends up costing you much more money in the long run. That’s because you are always paying more than interchange, which is the direct cost of processing. The merchant services provider is pocketing the rest. This might be a good option for business owners who are very low volume or ones that rarely accept credit cards. However, this payment structure punishes businesses trying to scale and grow. Since your payment processor is making money off every one of your transactions, you end up paying more the better your business does. Doesn’t make sense, does it?

'using computer to put in credit card info'

Flat Rate Fee

A flat rate fee is a fixed dollar amount that you pay a merchant services provider, usually monthly. This is also referred to as a monthly membership or monthly maintenance fee. A flat rate fee is designed to cover all aspects of your processing other than interchange in one convenient cost. This means you never have to deal with extra fees or surprise charges again. You know exactly what you’re paying every month, leaving you more time to run your business.

Here at Fattmerchant, we charge a flat rate monthly membership in exchange for access to the direct cost of interchange, no hidden fees, and no contract.

If you want to learn more about Fattmerchant and how we could be a fit for your business, fill out the form below!

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