2 ms·

> The interchange pricing plus fee is just that isn't it, a fee plus the interchange fee? Nope. With Authorize.net resellers, you can either pay a variable per

> The interchange pricing plus fee is just that isn't it, a fee plus the interchange fee? Nope. With Authorize.net resellers, you can either pay a variable percentage (as low as 1.9% on qualified cards or 2.9% on unqualified cards, determined arbitrarily) OR $0.30 + 0.10% if you elect for Interchange Pricing Plus when you set up your Authorize.net account. My previous employer had me spend several hours of development time in contact with our reseller to save cents on each transaction. I don't know if it was worth it.

IkmoIkmo 12y ago
Cool thanks for the info. So I assume you guys were mostly doing <$10 payments to favor the variable pricing? What kind of industry was your employer in? About the qualified cards, what does that mean and how can that be arbitrary? Thanks!
- sarciszewski 12y ago
  He sold textbooks and lab materials to middle school teachers; teachers were reimbursed by the State after attending a workshop he ran every weekend. Most orders were in excess of $100. $100 * 0.10% + $0.30 = $0.40 $100 * 2.90% = $2.90 The trick is, if you don't know to ask for IPP, you get the 2.9% (but some orders will be as low as 1.9%) rate. If you do ask, you can opt for $0.30 + 0.10%. http://www.cardfellow.com/blog/interchange-plus-pricing/ http://www.cardfellow.com/blog/interchange-plus-pricing/ http://www.interchangeplussolutions.com/interchange/interchange-plus-vs-three-tier/ http://www.interchangeplussolutions.com/interchange/intercha... I don't know what sort of behind-the-curtain negotiation it required to get the rates he got, but whether or not it saves you $ depends on your average transaction and expected sales volume. Using my numbers, if your transactions are normally below $11, you'll probably benefit more from the standard three tier.

2 ms·

> The interchange pricing plus fee is just that isn't it, a fee plus the interchange fee? Nope. With Authorize.net resellers, you can either pay a variable per

by sarciszewski 12y ago

IkmoIkmo 12y ago
Cool thanks for the info. So I assume you guys were mostly doing <$10 payments to favor the variable pricing? What kind of industry was your employer in? About the qualified cards, what does that mean and how can that be arbitrary? Thanks!
- sarciszewski 12y ago
  He sold textbooks and lab materials to middle school teachers; teachers were reimbursed by the State after attending a workshop he ran every weekend. Most orders were in excess of $100. $100 * 0.10% + $0.30 = $0.40 $100 * 2.90% = $2.90 The trick is, if you don't know to ask for IPP, you get the 2.9% (but some orders will be as low as 1.9%) rate. If you do ask, you can opt for $0.30 + 0.10%. http://www.cardfellow.com/blog/interchange-plus-pricing/ http://www.cardfellow.com/blog/interchange-plus-pricing/ http://www.interchangeplussolutions.com/interchange/interchange-plus-vs-three-tier/ http://www.interchangeplussolutions.com/interchange/intercha... I don't know what sort of behind-the-curtain negotiation it required to get the rates he got, but whether or not it saves you $ depends on your average transaction and expected sales volume. Using my numbers, if your transactions are normally below $11, you'll probably benefit more from the standard three tier.