What are Wholesale Credit Card Processing Rates?
Wholesale credit card processing rates, often referred to as cost-plus or interchange-plus pricing, allow merchants to access the base costs set by card networks and banks with a transparent processor markup.
Industry benchmarks for these rates typically include the following components:
- Interchange Fees: These are paid to the card-issuing bank and usually range from 1.5% to 3.5%.
- Card Brand Assessments: Non-negotiable fees from networks like Visa or Mastercard that typically range from 0.13% to 0.15% of sales volume.
- Processor Markup: The spread added by the processing company, which often ranges from 0.5% to 1% plus fixed per-transaction fees of $0.10 to $0.30.
To access these wholesale rates, merchants typically must undergo a qualification process that evaluates business details, transaction volume, and risk profiles. Qualified merchants can often achieve lower overall costs compared to standard flat-rate pricing, potentially saving significant amounts on annual transaction fees. Other benefits associated with these plans may include no setup or cancellation fees and integrated POS hardware solutions.
Related FAQs
-
How do I Get Approved for a Merchant Account with Bad Credit?
Read More »: How do I Get Approved for a Merchant Account with Bad Credit?Obtaining a merchant account with bad credit or a high-risk profile is possible by working with specialized providers who understand your industry’s specific challenges. While traditional banks often decline these applications, we focus on helping you navigate the approval process…
-
How do I Qualify for Same-day Deposits on Credit Card Sales?
Read More »: How do I Qualify for Same-day Deposits on Credit Card Sales?To qualify for same-day deposits—also known as same-day funding—you must meet specific prerequisites and adhere to strict daily deadlines. At a minimum, your business needs an active, fully approved merchant account and typically a processing history of 3 to 6…
-
Which Payment Processors Offer Guaranteed Next-day Funding?
Read More »: Which Payment Processors Offer Guaranteed Next-day Funding?We offer next-day funding merchant services that allow you to access your sales proceeds much faster than traditional cycles, which typically take two to three business days. By working with us, you can reinvest your revenue quickly and reduce cash-flow…
-
Can I Get a Free Merchant Account Setup for a New Restaurant?
Read More »: Can I Get a Free Merchant Account Setup for a New Restaurant?Yes, you can secure a merchant account for your new restaurant with no upfront setup costs. Professional merchant services are available that eliminate the traditional barriers for small businesses by waiving activation and application fees. Key features of this service…
-
Which Payment Processors have no Setup or Application Fees?
Read More »: Which Payment Processors have no Setup or Application Fees?ThePOSBrokers offers merchant accounts with no setup or application fees, providing a low-risk entry point for small and growing businesses. Unlike many competitors that charge between $25 and $100 for account activation, this provider eliminates these upfront costs to help…
