Factors that affect costs of payment processing services

In general, the cost of payment processing correlates directly with the risk perception of your business, your method of operation, and your preferred method of payment. For instance, a business that operates only by mail or phone order presents a higher risk to a credit card processing company than a business which makes sales face-to-face with a debit or credit card present.

In recent years the card type is a major component of changes in your costs. You are likely to pay different rates on different cards, depending on the actual card type you accept. For example: you will be paying higher rates for corporate cards or rewards cards, even if those cards were swiped.

All the above factors derive mainly from interchange rates which are dictated to our industry by the Visa and MasterCard associations. How we package those rates to merchants varies significantly from one company to another. This is where Nordex excels in bringing you the best value to your payment processing.

Additional criteria that are typically considered in determining the pricing for your credit card payment processing are:

• Your business or personal credit standing

• The number of transactions your company performs remotely vs. face-to-face

• The average amount of a single transaction

• The number of transactions

• The volume of annual sales