As you are browsing the internet for resources on how to accept credit cards for your business, you may stumble upon an ad that looks something like this:
Regardless of how many times you have seen an ad like this on Google, these “Free” credit card merchant accounts don’t exist. When processors advertise “free merchant accounts,” they are usually referring to equipment or application fees. All businesses have to pay interchange fees to card-issuing banks, assessments to the card brands and a markup of some sort to the processor. Therefore, it can’t be entirely free. Don’t waste your time looking for a completely free merchant account; instead use Novera Payment Solutions which offers a unique transparent pricing model unparalleled in the merchant services industry.
Understanding Credit Card Fees
Most processors still prefer to use tiered or a form of cost plus pricing in order to preserve the highest profit margins on merchant accounts. Understanding these pricing forms is key in determining if your paying more than you should be for your merchant account. Twice a year, the credit card brands review and adjust their transactional costs and pass them along to the processors. In turn, the processors use this as an opportunity to raise the entire expense for the merchant. Ultimately, this is what causes the merchant fee to creep upwards over time. It’s not simple, it’s not transparent and it’s not fair pricing.
The Novera Approach
Novera Payment Solutions has developed a unique flat fee credit card pricing format that passes along all the direct transactional costs:
- Interchange
- The processor costs
- A small “flat fixed fee” per month depending on the monthly merchant volume (usually between $19.95 and $99.95 per month). This amount is essentially the gross margin on the account.
Since everyone knows we are in business to make a profit, we are not hesitant to let our merchant clients know what a reasonable profit margin will be.
Over time, the savings can actually increase because unlike the “tiered” and/or other forms of cost plus pricing structures, our program only raises the one line item that is affected rather than increasing each tier when the credit card brands change their rates. This is the only true transparent way of offering merchant processing.
In most cases, Novera Payment Solutions also offers the option of either “Next Day” or “Weekend Funding,” and always with “Gross Deposits.” Unlike many processors who deduct their rates/fees daily from your deposits, fees for our services are not collected until the month after the month you have been processing. This means you get your money faster and it’s easier to reconcile with your bank statements.
