The world has undoubtedly moved even more towards making all things virtual. That includes billing and collecting payments. What once was seen as easy, processing manual checks and invoices has never seemed more daunting. With increased costs of labor, postage, and less access to staff office hours, electronic collections has never been more valuable.
Interchange is typically between 70% and 95% of your processing bill. This is the “cost” in cost plus pricing and is charged by the banks that issue credit and debit cards. While every business is obligated to pay the same interchange rates, adding data elements to your transaction can move that transaction from one categorization to another.
Sounds complicated right? It is, unless you have the right technology in place and an agent who knows what they’re doing.
Level 1 interchange rates would be 2.95% plus 10¢.
Level 2 interchange rates would be 2.65% plus 10¢.
Level 1 interchange rates would be 1.95% plus 10¢.