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Interchange Simpliﬁed What is Interchange? Simply put, Interchange Plus pricing passes along hard costs that are paid to VISA and MasterCard. It also adds a very small markup to those costs to cover the risk associated with each transac?on – the ‘plus’ in the name. When a merchant accepts credit cards, there are many diﬀerent ways those cards can go through the interchange system, each with a speciﬁc cost based on a number of diﬀerent factors. These costs are called interchange fees, dues and assessments. Interchange Dues & Assessments Fees CARD ISSUER (I.E. RBC) CARD ASSOCIATIONS Interchange fees are the amount that is paid to the card issuer, and dues & assessments are paid to the card associa?ons. 2
Introducing Interchange+ Pricing OK...let’s talk Interchange+ Interchange Plus is a new type of merchant pricing program that completely eliminates all Non-‐ Qualiﬁed fees and surcharges associated with premium and high-‐spend credit cards! INTERCHANGE PLUS Interchange+ Cost for processing a credit card + A markup from the Acquirer = Pricing transacNon, paid to card issuer (such as Payﬁrma) to cover risk (ie: Royal Bank Avion associaNon with credit card VISA®) purchase Think of it this way – on a Prime Plus Mortgage, you are the paying the actual cost of the product. The ‘Plus’ is the small mark-‐up added to compensate the loaning bank for any risk. 3
Working for Canadian Merchants Why is Payﬁrma oﬀering Interchange+? Canadian businesses are fed up with hidden fees, excessive surcharges and convoluted billing structures when it comes to payment processing. In May of 2010, the Ministry of Finance released the Code of Conduct to address merchant complaints. The Code’s ﬁrst and most important recommenda?on was: Payﬁrma is oﬀering Interchange Pricing as the simplest, most transparent and cost-‐eﬀec?ve model to ensure merchants are fully aware of the costs. The model also enables these business owners to maximize the proﬁt on each transac?on! 6
What is the BeZer Oﬀer? Interchange+ vs. Interchange DiﬀerenNal If merchant has the choice between these two rates how do they know which one is the beUer oﬀer? We’ll use a $10,000 credit card sales example to compare the same transac?on with Interchange+ Pricing versus Interchange Diﬀeren?al. Let’s compare... 7
How they Compare Now that we’ve compared the cost diﬀerence between Interchange+ and Interchange Diﬀeren?al, it’s easy to see the advantage of Interchange+ Pricing. 8
How Canadian Merchants can beneﬁtFor the majority of businesses, switching to an Interchange+ pricing model will result in signiﬁcant savings, and will eliminate all non-‐qualiﬁed fees moving forward. Other beneﬁts include: COMPLETE TRANSPARENCY TO UNDERSTAND AND MANAGE YOUR COSTS PROPERLY LOW PROCESSING COSTS THAT ARE NORMALLY RESERVED FOR LARGE MERCHANTS ONLY EASY TO READ MONTHLY STATEMENTS WITH CLEAR AND CONCISE RATES NO MORE SURCHARGES BASED ON CARD TYPE USEDTo ﬁnd out what op?on is best for you, contact one of our Interchange Experts and have your account analyzed.You can get started right away! Either call us directly at 1-‐800-‐747-‐6883, or visitpayﬁrma.com/interchange_plus, and one of our friendly Interchange Experts will call you back. 9 7
For more informaNon: Payﬁrma Corpora4on 2002 -‐ 1188 West Georgia Street Vancouver, B.C. V6E 4A2 800.747.6883 toll-‐free 866.649.0050 facsimilePayment Acceptance Simpliﬁed