Flat Rate or Flat Rate Pricing

Flat Rate Pricing is a pricing model where a uniform percentage rate is applied to all transactions, regardless of the card type or how the transaction is processed. This flat rate typically bundles the interchange rate, the assessment fee, and the processor’s markup into one comprehensive fee.

Flat rate pricing’s primary appeal is its simplicity and ease of comprehension. This straightforward model is often the preferred choice for small businesses and startups who appreciate its predictability and the ease with which they can understand their payment processing costs.

However, the flat rate model’s simplicity can sometimes result in higher costs, particularly for businesses that process a high volume of transactions or deal with a variety of card types. As it doesn’t account for differences between types of cards or transactions, businesses may end up paying more than they would under a more nuanced pricing model.

While flat rate pricing offers simplicity, it’s essential for businesses to evaluate whether it is the most cost-effective solution for their specific circumstances.