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 Rate is explained in plain sight

     Pass-Through Interchange vs. Tiered Rates vs. False Interchange

 

1. Tiered or Bucket  – Qualified, Mid-Qualified, Non-Qualified, Debit - 4 Tiered Rates or Buckets

    This is the rate structure most small businesses are on

2. False Interchange - Tiered/Interchange Combo, Fake Interchange - Both Bucket & Interchange

    This is what most processors are moving small merchants to, faking Interchange but charging Tiered rates

3. Pure Pass-Through Interchange -See V/MC Interchange Schedule - 125 Rates or Buckets

    Most processors don’t offer Interchange to small & mid-size merchants. We offer Interchange to any size merchant. Pass-

   Through Interchange is the cost a Processor pays and then adds a surcharge to do the processing. That’s what Harbortouch

    offers: Pass-Through Interchange + Small Surcharge

 

    Three factors that determine the category a transaction will fall into:

1. Merchant Industry Type: Traditional Merchant, Fast Food, Gas, Mail Order, Catalog, Internet

2. Type of Card Processed: Traditional Card, Rewards, Corporate, Check Card, Debit Card

3. How card is processed: Swiped, Keyed-in, Present, Not-Present.

 

    Three Phases of all Credit & Debit Transactions

 

1. Authorization    2. Processing     3. Settlement

    We do all three. Many processors farm out some of the phases resulting in higher cost

 

 

   Interchange Rate Formula

 

   Actual                         Actual                       First Data                      First Data

   Interchange               MC/V                        Processor                     Processor                    Final

    Rate                     +   Assessment       +    Surcharge          +       Transaction Fee  =         Fee

 

   (125 Buckets)  + (0.11% or.0011) +  (.10% or .0010) +   ($0.10)       =    Final Fee

 

 

   Examples

     Tiered-Competition                   Interchange-Harbortouch/UBC

   Qualified Rate     1.85%                1.51%

   Transaction Fee    $0.25         $0.10

 

   Rewards Transaction/Mid Qualified  2.40%                            1.65%

   Transaction fees    $0.20- $0.25                $0.10

 

   Corporate or Non Qualified   3.50%               2.20%

   Transaction fees    $0.20 -$0.25                         $0.10

 

   Signature Debit    1.79%                0.05%

   Transaction fees    $0.25- $0.50               $0.22