How Switching To A Cost Plus Billing Platform Saves With Every Transaction

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in Blog
on Wednesday, 11 February 2015 14:22

Sometimes, the simplest solution isn’t the most prudent. If your company uses easy-to-understand blended rate payment processing, you may be able to save money on many transactions with more complex and more precise cost plus billing. Also called interchange plus billing, cost plus billing takes into account the kind of transaction being processed and often reduces your cost. And with optimized interchange plus, automation saves you even more.

With blended rate processing, you pay an average per-transaction processing fee per no matter what kind of transaction it is. In many cases, that means you pay too much. With cost plus, you pay the required interchange fees on every transaction plus just a bit more. The savings can be substantial, particularly if you have a lot of low-cost transactions.

Cost Plus Saves Over Blended Rate

Blended rate pricing is easy to understand, but it may not be a good idea for your company. Since the type of card being presented and the related costs involved aren’t taken into account, you pay the same for every transaction. If your business gets a good variety of cards, changing to a cost plus solution might not save you much. But if many of your transactions involve lower-cost transactions -- like debit cards, for example -- blended rate processing means you’re usually overpaying.

Interchange plus or cost plus processing is completely transparent. You simply pay a fixed rate fee on top of what processing the card through its appropriate association really costs. You’re never charged way too much for a transaction as you are when you agree to blended rate processing.

Cost Plus Could Make Sense For You

If your business has a large number of transactions and, in particular, a large number of cheaper-to-process transactions, you’ll save the most when you switch to an optimized interchange plus solution. Cost Plus Billing is the first and only solution that offers this next generation of interchange plus processing. Not only do you save because the interchange plus model saves you over blended rate processing, automation makes sure your transaction always goes through at the lowest possible interchange rate.

And the savings aren’t mere pennies. On a $100 debit card transaction, your savings when you use Cost Plus Billing can be a dollar or two.

Cost Plus Billing is a complete payment processing solution built on the UniPay payment management platform and can help you reach your payment management goals. For more information, contact us right away. Each member of our team is an expert at explaining how cost plus saves over blended rate processing and how the other features of Cost Plus Billing can benefit your company too.

This much is easy to understand: saving money on every transaction enhances your company’s bottom line, so why give away more money than necessary every time you process a transaction?

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