Components of Credit Card Processing Costs

Interchange Fees:
  Interchange fees are paid by your processor's bank to the issuing bank of your customers' credit/debit card. They're set by the members of Visa and MasterCard (the banks), and they're the same for all businesses. TSBS, the processor and the card brands (Visa, MasterCard, and Discover, American Express) don't receive any revenue from interchange. There are a couple hundred interchange fees between Visa and MasterCard, The banks consider things like processing method (swiped, keyed, e-commerce), card type (rewards, business, consumer), your business category and a host of other variables to create a long list of interchange fees. Interchange rates are published online: Visa - Mastercard.

Assesments: Visa, MasterCard, Discover and American Express make their money by charging assessments when you accept a credit or debit card branded with their logo. Check out our page on assessments to learn more about the various assessments. You'll notice that some assessments apply only to a specific type of transaction, such as international, while others apply to all transactions.

Processors Markup: The processing markup is any rate or fee beyond the base costs of interchange and assessments, and it's the only area of costs that varies from one merchant service provider to the next.  It is the only component that is negotiable. Our clients are set up with a processors margin of less than one half of one percent.

Would you like us to provide a quote of the markup for your business? Click on this INQUIRY link, provide us some information about your business and we will reply promptly.

Do you already accept credit cards, would you like us to review your current rates and provide you a rate quote? Click here to email or fax us copy of a recent processing statment.
Texas Small Busines Services is an agent for several processors and payment services.
This gives us the ability to  match our clients specific payment needs with a processor and services at competitive fees.
Texas Small Business Services (TSBS) provides interchange pass through pricing to all merchants. Interchange pass through (IPT) means that the actual cost of processing (interchange fees & assessments) set by the banks and card associations are displayed on the merchant's statement along with the processor's markup.

The benefits of true interchange pass through are transparency and lower costs when compared to bundled or tiered pricing models. Large businesses (WalMart, Target, etc) use IPT pricing, we offer IPT pricing to all merchants regardless of their monthly volume.


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