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• Low Cost Merchant Accounts • Point of Sale Systems • Online Payment Gateways • Virtual Transaction Utilities • Mobile Payments • eCommerce • Check Processing |
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20-30 Merchant Account Plan Summary
The 20-30 plan is a merchant account which offers "wholesale cost pass-through" and "interchange plus" pricing. The plan differs from other interchange plus merchant account plans because, in addition to the wholesale interchange rates, all other ancillary costs that are associated with card payment processing are passed through to the merchant at wholesale cost. This means there are no "markups" for any associated payment processing services like card authorizations and address verification service (AVS). Also, there are no additional fees for things like "batch fees", "debit access", "statement fees", "annual fees", "compliance fees", etc.
Qualifying Merchants
The 20-30 Plan is designed primarily for retail merchants that sell goods and services on a business to consumer relationship with the card being presented during a face-to-face sales transaction. The monthly payment processing volume should exceed $5,000. (see 30-FIXED Plan if processing less than $5,000)
Merchants who will benefit from the 20-30 plan include:
- Automotive Repair Shops
- Wine, Liquor, and Beverage Stores
- Dental, Veterinary, Chiropractic, Physical Therapy
- Hair Salons and Day Spas
- Hardware and Home Improvement Stores
- Sporting Goods Stores
- Recreational Facilities
- Clothing, Shoes, and Apparel Shops
- Jewelry Stores
- Appliance Stores
- Carpet and Flooring Shops
- Furniture Stores
20-30 Plan Benefits
The 20-30 plan offers a lean and streamlined approach with less overhead for the payment processor which results in lower overall cost for the merchant. Based on the average interchange rates for Business to Consumer "card present" transactions, the total, bottom-line cost to the merchant will be approximately 2% to 2.5% of the total payment settlement activity. Actual cost will depend on the number of transactions, ticket size, and type of cards presented by the merchant’s customers (debit, personal, corporate, cash back, rewards, etc.).
20-30 Plan Pricing
The 20-30 plan has a simple fee structure. This is the "plus" portion of the "interchange plus" pricing:
- 20 bps* times the payment settlement total or $30.00 per month, whichever is higher.
* 20 bps = 20 basis points = 0.2% = 0.002 x the payment settlement total. This equates to $20.00 for every $10,000 worth of payment processing.
Additional Considerations
Wholesale costs that are "passed through" include:
- Interchange rates for all payment settlements (varies per card type and transaction method - see: interchange rates
- Authorization fee (typically $0.06 to $0.10 per transaction submittal)
- AVS verification fee, if used ($0.01 to $0.05 each)
- NABU - Network Access and Brand Usage fee levied by MasterCard at $0.0185 per transaction.
- APF - Acquirer Processing Fee levied by Visa at $0.0195 per transaction.
- FANF - Fixed Acquirer Network Fee levied by Visa. Amount is dependent on merchant type, number of locations, transaction volume, and transaction method.
- Dues and Assessments, levied by both Visa and Mastercard at 0.11% of processed dollar amount.
- IRS federally mandated 1099-K reporting fee ($4.00 to $6.00 per month)
The merchant is provided with a detailed, monthly merchant account statement by mail. Online transaction reporting is also available.
Note: Merchant's acceptance into the plan is subject to underwriting approval.
Complementary Products and Services
The payment settlement merchant account may be supplemented with additional services for efficient payment transaction processing, including:
- Remote check deposits, paper check conversion, and check verification with guarantee.
- Retail POS (point of sale) software with product management solutions.
- Gateways for online transaction processing via ecommerce or virtual terminal.
- Mobile transaction processing with all types of cell phones.
- Free reprogramming of compatible in-place credit card terminals.
- New, high-quality credit card terminals, magnetic card stripe readers, check readers, and check scanners - all with lifetime guarantee.
- Free detailed savings analysis comparing your current account's fees with a recommended lower cost alternative.
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Services and Extras
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