flat rate merchant services


For certain companies, "flat rate" may mean a same payment structure. VMS will further describe flat rate merchant services and how its impact to your business.

You’ve undoubtedly come across businesses that claim to be “flat rate” in your hunt for a payment processor. But what exactly does it imply? This article will go through what flat rate merchant services are and how they affect your company.

What is Flat Rate?

A flat rate may refer to either a percentage payment or a fixed price. A flat rate percentage and a flat rate charge may seem similar, but they are not the same thing. 

Fee at a Flat Rate

A flat rate charge is a set cash amount paid to a merchant services provider on a monthly basis. This is also known as a monthly membership fee or a monthly maintenance charge. 

A flat rate charge is intended to cover all elements of your processing except exchange in a single simple cost.

Percentage of a Flat Rate

A flat rate % is a set percentage that you must pay for each transaction. While this may seem to be a straightforward solution, it may wind up costing you considerably more money in the long term. This is due to the fact that you are constantly paying more than the exchange rate, which is the direct cost of processing. 

The remainder is pocketed by the flat rate merchant services. This may be an excellent alternative for small-business owners or those who seldom take credit cards. 

With VMS, you’ll never have to worry about hidden fees or costs again. You know precisely how much you’re going to pay each month, giving you more time to operate your company.

flat rate merchant services

How does Flat Rate Processing Work?

Processing a credit card transaction includes paying three different fees:

  • A payment to the card issuer
  • MasterCard, Visa, or Discover assessment charge
  • Credit card processor markup

Flat rate credit card processing typically costs 2.75% to 3.50% and ranges from $0.20 to $0.30 per transaction. For VMS, our flat rate percentage is at 2.9%.

Is Flat Fee Processing a Good Investment?

Of course, the attraction of flat rate credit card processing stems from its simplicity and predictability. Flat rate pricing can result in some savings if your company has a low monthly processing volume or if many of the transactions you process are very modest (think of nail salons). 

When this occurs, payment processors that bill utilizing interchange plus or interchange pass-through pricing may be able to provide you with a greater bang for your money. 

Flat Rate Merchant Services for Vietnamese Businesses

Flat rate merchant services are the most basic and easy choice for merchants that don’t want to deal with the hassle of comprehending interchange costs or the unpredictability of what they will spend in processing fees each month.

Flat rate merchant services is also a viable alternative for new companies that do not meet the requirements for a merchant account since it has a low barrier to entry.

The cost of flat rate processing is predictable and simple to comprehend. Just keep in mind that the ease of flat-rate processing comes at a cost.

Choosing the best price structure is a critical choice. The flat rate merchant services specialists at VMS are here to help you sift through the intricacies and discover the best match for your company. Don’t hesitate to contact us if you need support.

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