Understanding  the fees you need to pay on card transactions can often be complex, especially if you’re a new business or have only recently set yourself up with a payment device.

To begin with it’s important to understand the different fees that you have to pay. The scheme fee is the fee paid to the card brand, i.e. Visa or Mastercard. The interchange fee is paid to your customers bank to cover the risk of the transaction.

Interchange fees

The interchange fee is the bulk of your overall fee and is determined by the type of card, region and entry method. The big banks use Interchange plus, a pricing model where a fixed mark-up is applied directly to interchange fees published by credit brands such as Visa and Mastercard.  Interchange rates are usually determined by the credit brands and the card issuers (the banks). Interchange plus is highly detailed but can be a lot of information to absorb, especially for smaller businesses.

If you are currently with one of the big banks, there’s a good chance your merchant statements are somewhat complicated and many pages in length! It’s not unusual for a bank merchant statement to incorporate up to 20 different fees.

Advantages of simple pricing

At Live eftpos we strive to remove unnecessary complication and provide you with as much simplicity as possible. With our blended pricing structure, you pay the same rate on a transaction of a specific card name regardless of how the transaction was accepted. We remove all the guess work and you’ll know exactly what you’re going to pay for every single transaction.

Banks often have a tiered plan where you pay a fixed monthly fee regardless of your turnover amount, meaning you may often pay for a turnover threshold that you never quite reached. With our simple pricing structure you can be sure you’ll only pay for transactions through your device. It’s quick to set up and easy to understand.

Additional benefits of our simple pricing include:

  • No hidden fees
  • No set-up fees
  • No exit fees
  • No annual fee
  • Rental fee based on transaction volume
  • Processing fees based on transaction volume and history.

Determining a blended rate

To determine a blended rate for your business we look at both your existing interchange and merchant service fees. We’ll also look at other factors such as your businesses transaction volume and business type. We then roll this information into one to create a weighted average which will become the fee that you’ll need to pay on every transaction.

If your business has never previously had a payment device, we will use a range of determining factors to come up with a structure that best suits your business. This will include looking at your average monthly transaction volume, business type, industry and even smaller determining factors such as your business’ location.

If you’re moving from another provider that is already offering a blended rate, then one of our dedicated relationship team will be able to look at your plan and see if there is an opportunity for us to price match or better your current rate.

No more hassle

We believe blended pricing is ideal for small businesses and takes the hassle out of managing fees. You will know what a transaction will cost, every time.

Say goodbye to guess work and hello to Simple Pricing!

Apply now

Sam Edmond

Sam Edmond is Digital Marketing Director for Live group.