Lower payment processing rates are decided by the merchant account provider you choose. Each custom payment processor is different and has separate pricing models depending on your type of account. Mainstream providers tend to lock in steady pricing to compete with one another, but if you want lower rates you’ll have to meet certain qualifications.
Firstly, it’s important to keep in mind that every payment processor is a business. As such, they want to avoid risk and maximize their revenue streams. Utilize this premise as a negotiating tool to have them focus more attention on your file and offer decreased rates
Compare Businesses – There are numerous merchant account providers out there, and each of them looks at fees through their own lens. Some offer quick approvals at basic rates while others work with merchants to evaluate their specific business and provide the best rates possible when it comes to transaction costs.
Custom payment processing on the other hand can go as low as 0.5% of the total purchase using what’s called interchange pass through pricing. In this model, a merchant pays the exact price for fees imparted upon the card providers. Visa, American Express, and Mastercard have baseline fees that cannot be negotiated. However, interchange pass through pricing is the lowest a merchant can ever get in for their payment processing fees.