What is flat-rate pricing?
One percentage for every card, like 2.9%. Easy to read, but you overpay on cheaper cards like debit.
A debit card costs far less to take than a rewards credit card. A flat rate charges you the same for both, so the rate is set high enough to cover the expensive cards.
For example
At 2.9% flat, a $100 debit sale and a $100 rewards-card sale both cost you $2.90, even though the debit card costs far less to process.
Card processing rates explained →
Related terms
- Interchange-plus pricingYou pay the bank's fee on each card at cost, plus one fixed markup you can see on your statement.
- Tiered pricingA plan that sorts each sale into a cheaper or pricier price level. The processor decides which level each sale lands in.
- Effective rateYour total card fees for the month divided by your total card sales. It's the one number that shows what taking cards really costs you.