It’s the fairest model out there.
Interchange-plus pricing works by adding a constant, flat margin on top of Interchange. So typically, Interchange-plus pricing models will also be written in the two component format, with a percentage fee and per-transaction fee above Interchange. This allows merchant service providers to price their accounts fairly, because merchants who process at higher volumes will pay more fees, but only proportionately so. The same goes for smaller merchants. By offering a constant margin, smaller merchants are not penalized for processing minimal amounts.
What this also provides is transparency. As a certified Benefit Corporation and B Corp, iMerchant Direct is committed to showing our clients where we’re making money and how. We’re also committed to a fair pricing model that ensures our merchants know what to expect. With Interchange-plus pricing, you’ll get to see exactly how much money was paid to the card-issuing banks, how much went to the card associations, and how much went to iMerchant Direct.
This isn't how everyone operates.
This is a lot different than many other models out there. Most merchant service providers don’t disclose the Interchange rates. Instead, they only disclose the rate at which you’re assessed – meaning there is a lot of incentive to overcharge for services.
If you can’t see how much transactions cost your provider, you can’t know what they’re charging you, or if they’re doing so fairly. It’s unfortunate, but this industry has a negative reputation due to egregious fees, confusing pricing structures, and a predatory mindset towards smaller merchants.
iMerchant Direct was founded on the premise to change all that.
Interchange-plus Pricing Model is the Most Just Model in the Market.
Interchange-plus, one of the simplest models, functions by applying a simple flat fee on above the interchange. Therefore, ideally it is mentioned two different ways – with a percent fee and charges per transaction after Interchange is charged. It enables vendor offering merchant services to levy a charge appropriately as merchants operating at more volumes would give extra fees, however in the correct proportion. It also applicable to vendors with lesser volumes. Hence by providing a consistent margin, small scale businesses are not fined for operating with smallest transactions.
Along with that, it even offers a transparent method of working. Being a certified B Corp, IMD is absolutely dedicated to transparently letting our clients be aware of how our business earns. Plus, we guarantee have tangible and accurate expectations set, and with this pricing model, all the clients would be adequately informed on the amount remunerated to the banks that issued the cards, card associations, and how much at IMD earned.
Not Everybody Operates the Way We Do!
There is a stark difference in the way this and other payment systems work. A majority of providers offering merchant services never reveal the pricing for interchange. On the other hand, only those are revealed at which users are measured; in other words, there are plenty of incentives to charge extra for services rendered.
Obviously, if the provider charges are unknown to you, you would not be able to know whether they are charging you justly or not. Unfortunately, these kinds of bewildering cost models, hidden charges and an exploitive attitude against small-time businesses.
Our business has been germinated to transformed these practices.