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All of the above fees (transactional, flat, incidental) fall into one of two categories: (1) wholesale fees, and (2) markups.Just remember, markups are negotiable, while wholesale fees are not.These fees are determined by the credit card issuing bank and the credit card associations (Visa, Master Card, etc.).They are consistent regardless of which provider you choose.Although tiered pricing plans aren’t necessarily a bad thing, some dubious merchant account processors will take advantage of this more complicated price plan to charge merchants excessive fees.You may end up paying a lot more than you want to with little way of determining exactly what you are paying for.

However, there’s more than just one incidental fee so keep reading to find out what they are.It may make your statement a bit more difficult to read, but it’s worth it since you’ll know exactly what the difference between your wholesale fees and markups are.Tiered If you aren’t lucky enough to be on interchange plus pricing, chances are you’re tied up in a tiered or ‘bundled’ pricing model.Wholesale Fees I’m using the term “wholesale” to help you picture the meaning behind this type of fee, but it can go by other names as well, like, “base fee” or “pre-markup” etc…Your wholesale fees are exactly like they sound – the wholesale cost of your sales transactions.

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