There is a new model for processing credit cards coming to the U.S. which is based upon what occurs in Europe and many other countries. The following information simplifies what is a confusing industry to many.
The Old Model
Currently, merchants incur charges of 2.5% to over 3.0% to accept credit and debit cards in what we will call the “effective rate” (what you pay each month, divided by your credit and debit income). At the same time, your customers receive up to 5% in rewards to swipe their credit card in your business.
The New Model
Using simple language and signage, which will be provided to you for free, customers have a choice of using a credit or debit card. If a customer chooses a personal debit card, you as the merchant will pay 1.00% and $0.25 p/transaction. If the customer chooses to use a credit card, they will pay 3.5% with full disclosure of their choice, and you as the merchant will pay nothing.
A small percentage of corporate debit cards are treated as credit cards in the new model and the merchant pays 3.38%. If you need a processing terminal,
there is a $35.00 monthly fee per terminal but, if you process via the internet, there are no additional fees.
It’s that simple! We just took your effective rate from 2.5% plus down to less than 1%. Fairpay can have you set up in a little over a week with a simple application.
Welcome to a new way of accepting credit and debit cards! Enjoy the extra money in your pocket every day. Fairpay is leveling the playing field for the merchant community.