Avoid Credit Card Processing Hikes with Leap Payments
May 14, 2014 (PRLEAP.COM) Business NewsAgoura Hills, CA – While other credit card processing companies are raising rates on their merchant clients, Leap Payments is holding the line, keeping rates low to keep clients happy and continue earning their business.
Credit card processing companies have 2 basic methods of charging clients for their services, 1) Tiered rates or 2) Interchange pass-through rates. Tiered rates are the most misleading pricing plan as the business owner never knows exactly what they are paying or what the true cost of their transaction is from Visa, MasterCard, or Discover.
Leap Payments offers our clients the only transparent pricing plan available called interchange pass-through. With interchange pass-through (also called interchange plus) pricing, the actual costs as set by Visa, MasterCard and Discover are passed-through to the merchant and then the processor adds a minimal markup to cover their services. This way the merchant sees exactly what the processor pays and their exact margin in a completely transparent pricing plan for their merchant account. Customarily the largest businesses exclusively qualify for interchange plus pricing, but Leap Payments offers this pricing plan to all clients.
Visa, MasterCard and Discover typically revise their interchange cost schedules in April and October of each year. In response, accounts on Tiered pricing are hit with price increases as the interchange rates increase and worse yet most processors also tack on a little extra for themselves. So this causes a double whammy price increase to the merchant. In October 2012, for the first time ever, the Federal government set limits under the Durbin Amendment for what the card associations can charge for debit cards. As a result the card brands have not made any significant changes to their interchange rates, presumably in fear that the government will try and regulate credit card rates as well.
So without regular rate increases from Visa, MasterCard and Discover, the card processors have not been able to add fee increases for themselves, so their revenue has remained flat or even fallen. In response, some of the largest processors have announced price increases, simply for the reason that they want to make more money to satisfy their shareholders and line their pockets. These processors are hoping that their clients don't read their monthly statements and don't notice their rate increases. Leap Payments has posted a small sample of these rate increase announcements at our website at www.leappayments.com/bloglink/.
"We believe that greed is exactly the wrong reason to increase your rates" said Will Detterman, CEO of Leap Payments. "We will not be increasing our client's rates. Leap Payments is committed to keeping our fee structure low to allow our clients to keep their prices low. We prefer to grow profits by growing the company's customer base. To that end, we offer our clients an exclusive Lifetime Rate Lock, so they never need to worry about surprise rate increases."
In today's economy, margins are tight and unnecessary expenses such as merchant service rate increases can take a big bite out of merchant profits, particularly those of small businesses. Leap Payments can help keep payment processing costs low, while providing US based, friendly and easily accessible support. We want to talk to our clients, and you'll never press 1 for English and be treated like a number again.
Leap Payments can help businesses large and small find the right payment processing solution to fit their budget and their individual needs. To learn more, visit http://www.leappayments.com/ or call 1-800-993-6300.
About Leap Payments
Leap Payments provides credit card processing merchant services for clients in need of dependable and affordable payment solutions. Leap Payments can provide basic credit card machines, wireless credit card processing equipment and other point of sale solutions. Leap Payments offers dependable services with no hidden fees or expensive equipment leases, and the company works diligently to help clients pay the lowest possible rates.