flat rate processing


You've probably come across "flat rate" when looking for payment processors. VMS help you understand it and how flat rate processing can help you gain revenues.

You’ve probably definitely come across businesses that advertise themselves as “flat rate”, more specifically “flat rate processing” when looking for a payment processor. So, what exactly is a “flat rate”? A flat rate fee and a flat rate percentage may seem to be the same thing, but they are different. Still confused? VMS will walk you through what this implies for your company and how flat rate processing may help you increase income.

What is Flat rate processing?

Regardless of the changing interchange rate, the credit card processor will charge you a single flat fee for all of your credit card transactions.

The flat fee sustains constant for all kinds of cards, however it may alter depending on the type of transaction. When a card is inserted and chip and PIN is used (a card-present transaction), for example, businesses will often be charged a cheaper flat rate than when the card information is manually input into a POS system. The variety of flat fees are linked to the diversified levels of risk associated with each type of transaction.

So now, you understand somehow the general knowledge of flat rate processing. We are going to move to the next section, we’ll discuss what these two “flat rates” mean and how they affect your company in this blog.

The Percentage of Flat Rate

A flat rate percentage is a fixed amount you must pay for each transaction. While this may seem to be a straightforward solution, it may end up costing you a lot more money in the long run. Because you are constantly paying more than interchange, which is the direct expense of processing.

Moreover, the remaining portion is kept by the merchant services provider. This may be an excellent choice for low-volume businesses or those who don’t take credit cards very often. This payment system, on the other hand, penalizes companies that are attempting to expand and flourish. Since your payment processor profits from each of your transactions, you’ll end up spending more the better as your company does.

flat rate processing

The Fee Of Flat Rate

A flat-rate cost is a fixed amount of money that you pay to a merchant services provider monthly. This is also known as a monthly maintenance charge or a monthly membership fee. A flat-rate cost is designed to cover all elements of your processing, excluding interchange, in a more convenient payment.

This means you’ll never have to worry about extra fees or costs. In addition, you will know precisely how much you’ll have to pay each month, giving you more time to focus on running your company.


VMS provided all necessary information related to flat rate processing and further details of flat rate. Do you still have any questions? Get in touch with us and we’ll provide you a free consultant until you have a good understanding before deciding to use our services.

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