Different companies charge for credit card processing in different ways. The processing fees you pay to accept payments could depend on several factors, such as:

• The pricing model and your processor’s margin
• The interchange rate
• The card and transaction type
• Your business industry

Fair and transparent pricing has been at the heart of what we do since day one. Free For You employs a pricing model called Interchange Plus pricing. It is generally regarded as the industry’s most honest and affordable pricing model, especially for small and medium sized businesses.

Interchange Plus pricing takes the wholesale cost of the transaction – or interchange rate – adds a set margin on top, and passes on the savings directly to our merchants.

Other pricing models, like flat rate pricing, charge you a flat rate despite the real cost of the transaction— often taking a larger margin which ultimately comes out of your pocket.

Processing fees are broken up into two portions: The interchange fee and the processor’s margin.

Interchange Rates for card brands like Visa and Mastercard are determined by the card brands and issuing banks. All credit card processors adhere to the exact same interchange rates. To arrive at this base cost for each transaction, they take into consideration factors such as:

• Type of payment card
• Card brand
• The type of business accepting the card
• The transaction type
• The cost of processing this transaction
• Risk factors such as fraud
• Consumer rewards and perks

The second portion of your processing costs – the processor margin – is made up by your payment processor. How much you pay to accept payments will depend on which pricing model your processor uses and how much they make from their margin.

Unlike many payment processors, Free For You does not charge an added fee for refunds. However, we are not able to return the processing fees for the original transaction. One way to avoid paying processing fees for same-day refunds is to void the original transaction before closing your batch rather than refunding a separate transaction.