How to Choose the Best Merchant Account Service Provider
Reported by David John | October 3rd, 2022 @ 05:44 PM
Aside from being expensive, increases in interchange fees are amplified on a tiered structure. When a single interchange category is increased by Visa and MasterCard, merchant service providers compensate by raising the rate of an entire tier.
The end result is that the merchant pays higher costs start a payment processing company on interchange categories that haven't actually been increased by Visa and MasterCard. The across-the-board rate hike also produces larger profits for the merchant service provider.
In the end, the merchant ends up paying more to Visa and MasterCard for the interchange category that actually has been increased and more to their merchant service provider for categories that haven't actually been increased.
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David John