Flat-Fee

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Flat fee credit card processing is a simplified pricing model used by some payment processors for merchant services. In this model, merchants are charged a single, fixed fee for each credit card transaction they process, regardless of the card type, transaction amount, or interchange rate.

The flat fee typically includes all the costs associated with processing the transaction, such as interchange fees, assessment fees, and the processor's markup. Unlike interchange-plus pricing, where interchange fees are passed through at cost and a separate markup is applied, the flat fee bundles all these costs into a single rate.

For example, a payment processor might offer a flat fee of $0.30 per transaction. So, regardless of whether the transaction is for $10 or $100, and regardless of the credit card type used (Visa, Mastercard, Amex, etc.), the merchant will be charged a flat $0.30 for each transaction.

Flat fee credit card processing can be attractive to small and low-volume businesses, as it provides simplicity and predictability in their payment processing costs. However, it may not always be the most cost-effective option for businesses with larger transaction volumes, as interchange-plus pricing might offer better rates for higher-volume merchants.