What Is Interchange?
Interchange refers to a fee imposed by the banking system for managing a transaction. It is a commission charged based on the type of transaction, such as credit card, debit card, or international transactions. The percentage of this fee ranges from 0.250% to 0.270%. In addition to the interchange fee, there are two other charges associated with the transaction:What Is Plus 1?
Plus 1 represents the commission charged by payment schemes like Visa and Mastercard for their role in handling the transaction. This fee amounts to 0.175% of the transaction.What Is Plus 2?
Plus 2 refers to the commission charged by the acquiring bank and the ISO (Independent Sales Organization). An example of an ISO is Red Gorilla.
ANY QUESTIONS
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The Dark Element
More and more merchant services companies are offering thirty Day Rolling agreements as we are. People like Dojo and Handepay to name but two. But there are many others. There is a dark element to lots of these deals and anyone who has a terminal from one of these suppliers must look at their bills. There is a lot happening that is not good. Interchange and the first + The scheme fees are set by the banking system and the schemes visa, Mastercard and Amex etc. The problems are with the second plus and the transaction charges. What you need to look out for is that these charges are increased without your knowledge, this is what we have found. We have found that after an initial period of about three months the people that are providing these terminals increase the percentage that you pay per transaction. This means that your monthly charge can do up quite considerably without your knowledge. The latest one that I saw went up from £ an initial amount of £75 to £300.In addition to this where initially there were no extra charges for card holder not present transactions, which is exactly how it should be, These charges have been introduced later.
As well as all of that, the transaction charges have more than doubled.
We have now rescued this customer and they are now a customer of Red Gorilla. We can make no promises about the interchange charge or the scheme fees. They are controlled by the banking system and the schemes. If they put those up, they go up for everybody.
By it’s very nature a 30 day agreement gives the supplier an option to increase their prices, it also gives you the opportunity to leave.
Look at your bill if you are in a thirty day agreement and make sure you are not paying another stealth Tax. I think You’ll be shocked.