The Truth About Mobile POS Stations in Restaurants

The time of the smaller point-of-sale systems is upon us! iPad systems are becoming more popular, and the popularity of mobile point-of-sale stations has continued to leave an impact on the restaurant industry.

But just because it’s trending, doesn’t mean it’s the right solution for your business.

So today let’s look at the pros and cons of mobile point-of-sale systems and let you know if they are the right fit for your restaurant.

The pros of mobile point-of-sale systems

Less expensive

One of the biggest draws to use a mobile-based POS system comes from the price tag. It is an undeniable fact that compared with traditional point-of-sale systems, the sleek mobile models have less of a sticker shock.


Mobile stations are incredibly easy to move around, and it can be simple to bring your credit card reader over to the table for clients when they are ready to pay their bill.

Reduce turnover time

The quicker customers get their orders in and can pay their check, the faster you can turn a table. And this is one of the biggest arguments for adopting mobile stations for your restaurant.

Even if you don’t want to buy one for every table, it still can help you increase turnovers and help your overall operations.

Another perk to this, clients enjoy the freedom a mobile station can provide.

Sure, having a staff member there to answer questions is great. But giving guests the choice to order when they’re ready is a great way to give your guests some control over their experience at your restaurant.

The cons of mobile point-of-sale system

Reduced features

One of the biggest drawbacks of the smaller stations can be how small and sleek in size they are.

That’s not to say they don’t have many similar features as a larger traditional POS system, but many mobile systems lack the extensive tracking tools needed to keep an eye on inventory, wage costs, and prevent theft.

As much as turning tables quickly can add to your profits, subpar inventory and wage management tools can easily make those profits slip away.

Final verdict

To sum everything up, mobile POS systems can be a great solution for smaller restaurants. But a bigger restaurant may need something a little more advanced to service their business in the best way.

If you’re considering purchasing a mobile point-of-sale system, be sure to read about what benefits their software has, to make sure your restaurant isn’t missing and key tools.

And if you’re looking for a mobile point-of-sale system that packs a punch and has all the tools to fit your restaurant?

Check out Restaurant Managers point-of-sale system called RM Duet. It was designed to offer businesses looking for a mobile POS system with the benefits of their traditional RM point-of-sale system.

A Guide to Wireless Credit Card Payment Processing

Wireless Credit Card Processing

A Guide to Wireless Credit Card Payment Processing

Portable card machines are designed to operate via built-in Bluetooth capability, and connect wirelessly through the internet. Once a customer's payment is read by one of these terminals it will then contact their bank in order verify if there are enough funds available for purchase before complete transaction processing.

As more and more businesses explore operations outside of fixed locations, wireless payment processing has gained popularity in recent years.  

Wireless processing is exactly as it sounds; it allows the payment terminal to wirelessly connect to the payment processor each time a card is swiped. Wireless processing uses a Wi-Fi connection or cellular data connection to process payments. This means the merchant doesn't need a landline connection to complete a transaction.  

A secure transaction is complete within a matter of seconds (depending on WiFi speed or wireless coverage) because a wireless terminal communicates between the business, the payment processor, cardholder issuing bank, and the business’ acquiring bank. A secure internet connection from Wi-Fi or a cellular data connection is required instead of a phone line or network. 

How Wireless Credit Card Processing Works

Wireless processing works in much the same way as a traditional fixed-location terminal. 

  1. The merchant slides a customer’s card through a wireless machine and enters the sale amount. Both the card and sale information are securely sent to the merchant services provider. 
  2. The merchant services provider then sends the sale information and credit or debit card details to the customer’s issuing bank where the card is verified. The issuing bank also confirms if funds are available. 
  3. The issuing bank either approves or declines a purchase and communicates with the merchant services provider appropriately. 
  4. Usually in a matter of seconds, the machine then receives transaction information back from the issuing bank. 
  5. The retailer or merchant settles the batches of transactions made from the terminal at the end of the day. After “settling,” the funds are transferred from the issuing bank to the merchant’s account.  

The Differences between Mobile and Wireless Credit Card Processing

Business owners should be cautioned not to confuse mobile processing with wireless capabilities. Both mobile and wireless credit card processing provide a business with location flexibility, but there are differences between wireless and mobile. With either of these options a business essentially has a portable credit card machine; the payment and checkout experience is no longer tied to a fixed location. This is an attractive feature for business owners and consumers alike. While the credit card machine technology sounds similar there are distinct differences. 

Mobile credit card processing utilizes a business owner or employee's mobile device, such as a cell phone or tablet, and an app from the payment processor. A mobile credit card machine accepts mobile payments and sends customer receipts via email or text. A piece of hardware can even attach to a smart phone or mobile device so a retail business can accommodate a wide variety of credit card processing types including chip cards or credit or debit card transactions with a magstripe card reader.  

Wireless processing, on the other hand, involves more. It has the same features as a traditional processor, only it isn't connected with cords. A wireless terminal can also print receipts, and often comes with a credit card reader with a keypad or display screen. Wireless processing is ideal for many business types that do not have fixed locations, but need a credit card reader, like delivery or repair services. These wireless terminals still allow mobile merchants to accept a wide range of payment types, including traditional credit or debit card payments.  

Benefits of Wireless Processing

Without the constraints of cords, payment processing can truly go anywhere. Wireless credit card processing lets small businesses operate anywhere there is cellular coverage with a handheld wireless device so they can meet the needs of their customers who increasingly prefer credit or debit card transactions over cash. The obvious benefit for a mobile merchant with this method of processing is the ability to collect payment immediately with a wireless credit card machine, rather than waiting several business days or weeks after sending an invoice. 

Wireless payment technology maintains security standards, so merchants can safely process transactions on the go. Additionally, this type of technology results in faster processing times. A mobile merchant customer base and staff appreciate a quicker checkout process, and the convenience of the receipt printer, which results in a better overall customer experience. Businesses who spend much of their hours outside of a physical location, even larger businesses, benefit from an affordable device that truly facilitates operating as a mobile credit card terminal with all the capabilities of a brick-and-mortar shop.  

In addition to providing customers with the payment options they prefer, the efficiencies and convenience offered by wireless capabilities can be subtle differentiators for businesses in today's highly competitive retail environment.  

Choosing a Wireless Credit Card Processing Machine 

Due to the variety of credit card machine options and payment processing providers, merchants should closely evaluate the differences, pros and cons of each. Business merchants should consider several factors, including price, customer service expectations, hardware, contracts and more, to gauge if wireless processing will benefit their mobile business: 

Why Have a Processing Fee: The 8 Keys To Making Sense of Our Fees

Processing fees are a standard business practice, but it can be challenging to understand their reasoning. Some people believe processing fees are too high and should be eliminated. Others feel that they're necessary for the bank to cover their costs. Have you ever wondered why credit card companies charge a processing fee? It seems like an extra cost that doesn't benefit the cardholder. But, like most things in life, there is a method to the madness. Here are the eight keys to making sense of our fees. 

What Is a Credit Card Processing Fee 

A credit card processing fee is a charge added to each transaction processed through your merchant account. If you have a business that sells goods or services, this might sound familiar. In the case of online transactions, it's automatically included in the total price if you don't opt-out. It covers things like equipment and software for accepting payments from customers, third-party fees associated with the payment process, and why it exists in the first place. 

What Do You Mean By Transaction? 

A transaction is anything that involves you receiving money for something. This could be a sale of goods or services at your storefront location, online sales through an eCommerce website like Amazon or eBay, phone transactions, or even checks. There are many different ways to process payments. Each has its associated fees because credit card companies have to pay their employees to handle these individual tasks. 

The 8 Secrets to Understanding Credit Card Fees 

It's essential to understand why you're paying a fee in the first place, so here are the top ten secrets to understanding credit card fees. 

  1. The fee helps the bank maintain PCI-compliance standards: PCI refers to the Payment Card Industry. Banks are required by law every quarter to test their systems for security vulnerabilities. The processing fee pays third parties who perform this service to protect customers from identity theft or credit card fraud. 
  1. It helps cover costs associated with providing customer service: Even if you never use your credit card, purchasing involves risks like identity theft or fraud. That's why banks offer 24/hour customer support as a way to help customers should an issue arise when processing any payment. 
  1. The fee also helps cover costs associated with cardholder benefits: Rewards programs, travel insurance, and fraud protection are just a few of the benefits of using a credit card. But these services cost money to provide, so the processing fee goes toward funding them. 
  1. It helps the bank cover costs by providing a card: Even when you don't use your credit card, it has monthly fees for paying things like 24/hour customer service and fraud protection. Banks also have minimum spending requirements to waive annual fees during the first year of usage. 
  1. It pays for merchant account equipment and software: A merchant account must process payments from customers. This comes with equipment used for accepting credit card transactions. A processing fee covers the cost of these items and the software needed to run them. 
  1. The fee helps the bank offset risks associated with lending: The goal of any business is to make money. Those that provide credit cards are no exception, even though the fees associated with them are often hidden from customers for this exact reason. When you pay an annual fee or interest on your balance, it's used as a way to cover losses incurred by lending money out to others who don't always pay it back. 
  1. The fee allows the credit card company to profit: This is probably the most obvious reason. Credit card companies are businesses, and like any other business, they need to turn a profit to stay in operation. The processing fee helps them do just that. 
  1. The fee helps cover costs associated with chargebacks: A chargeback is when a customer disputes a purchase they made and requests their money back. It can happen for many reasons, such as if they never received the product or defective. The processing fee goes toward paying for employees to handle chargebacks and why they happen in the first place. 

There you have it. Eight reasons why the processing fee is necessary for credit card companies (and banks) to cover the costs associated with providing this service. Keep in mind that not all fees are bad, and in some cases, they're worth it. Just be sure to read the fine print before signing up for a new credit card. 

FAQs About Credit Card Processing Fees 

Here are some of the most frequently asked questions about credit card processing fees: 

Is there a processing fee for debit cards? 

Typically, no. Since merchants and banks don't need to cover the costs associated with lending money out for credit card transactions, debit card fees are typically much lower than their counterparts. 

What about using a credit card abroad? 

In most cases, you can expect to pay anything from an additional three percent to five percent on top of whatever transaction amount is being charged by the overseas bank or retailer for processing foreign currency payments. But why does it cost so much? This is because most credit cards are issued in the United States. That means that they have to pay a conversion fee for every foreign transaction before charging your card. 

Is there an extra charge when I purchase something online? 

Not always. In some cases, you can expect your bank or retailer to add their processing fees on top of whatever amount is being charged by the credit card company. However, this isn't always the case. Many companies have now eliminated these fees to remain competitive and attract more customers. 

Is there a limit to how much I can spend? 

Yes. Most banks will waive their annual processing fee if you meet a specific spending requirement within a given year. But if you don't meet this threshold, they'll usually charge anywhere to continue using their service. 

How can I avoid paying a processing fee? 

There is no definitive answer to this question. However, you can avoid paying a processing fee by using your debit card instead of your credit card, shopping at retailers that don't charge an extra fee for card payments or looking into a credit card that doesn't have an annual fee. 


The most apparent reason why credit card companies charge fees is that they need to turn a profit and the processing fee helps them do just that. Other causes include helping cover costs associated with chargebacks or providing this service in general. 

Each of these keys provides a different perspective on the fees we charge and why they are essential. The most crucial key is to understand how credit card processing works so that you can decide if our rates make sense for your business. 

We hope this blog post has given you a better understanding of our credit card processing fees and how we work to make sense of them. If you have any questions about the charges imposed by BNG Payments, please don't hesitate to reach out. We are happy to help. 

How To Calculate Total Credit Card Processing Fees

Finding your effective rate is the first step. First, get your credit card statement. Then divide the total processing fee by the percentage of monthly sales paid by credit cards. The outcome is your effective rate. 


Calculate Credit Processing: Mistakes Need To Avoid 

Many people don't think about the cost of credit card processing. It's one thing to know that you'll need a merchant account and an online payments solution. Still, it's another to understand what each service costs and how they can impact your decision. 

The cost of credit card processing can be high, and it is crucial to understand the different charges that apply. This mainly includes the cost of processing payments, which is often a misconception for business owners. It is essential to calculate the costs of these fees to make the right decision about what type of payment acceptance you want your business to offer. This article will discuss how you calculate credit card processing fees and share some common mistakes businesses make when calculating their expenses. 

How Are Credit Fees Calculated? 

Credit card companies calculate fees in a variety of ways. Still, typically they are based on either the total balance or the average daily balance. 

The total credit card balance is the sum of all transactions applied to a particular credit card account during a billing cycle. This figure includes revolvement balances or the total amount of money borrowed on a revolving basis, consisting of cash advances, balance transfers, convenience checks, and unpaid finance charges. 

The average daily balance is calculated by dividing the total credit card balance by the number of days in the billing cycle. This figure takes into account the fact that some days there may be more transactions than others. The calculation gives a more accurate representation of how much money is owed on a day-by-day basis. 

What Are the Common Factors That Affect Your Credit? 

Many factors can affect your credit score. Some of these factors are common, while others are specific to each individual. The knowledge of what can hurt or help your credit score will give you a good idea of what to do and what not to do to maintain healthy credit. 

Here are some of the most common factors that can impact your credit score: 

These are some of the most common factors affecting your credit score. Keep in mind that each individual's credit situation is different, so it's essential to review your credit report and credit score regularly to see where you can make improvements. 

What Are the Common Credit Processing Mistakes? 

Although having credit processing in place is vital to the stability of your business, you need to ensure that it's set up correctly. Find out some of the most common mistakes made when setting up credit processing systems. 

These are a few mistakes that are commonly made when it comes to credit processing: 


An excellent way to avoid mistakes is by learning how to calculate credit processing. As you've seen, there are many different types of credit processing that all have their own rules for calculating rates and fees, making it challenging to stay on top of the details. By understanding the basics and taking the time to learn about your specific processor, you can make sure that you get the best deal possible. 

You may be wondering how much your credit card processing will cost you. This is difficult to answer without knowing too many factors, but we can help. If you need help with this credit processing calculation, let us know at BNG Payments. We offer benefits from an expert opinion and years of experience in the credit card processing industry. 

Tiered Pricing Merchant Accounts for Credit Cards

A bank account allows businesses to accept payments by credit or debit card. The account is set up through a payment processing company, an intermediary between the bank and the business.  

It is a pricing model used by payment processors in which rates are based on the total monthly sales volume processed through the account. This model offers the business the opportunity to negotiate what rate they are willing to pay for credit card processing. 

What Are Tiered Pricing Merchant Accounts? 

Tiered pricing is a fee structure for credit card processing that determines how merchants pay processing companies for each transaction. The three tiers are qualified, mid-qualified, and non-qualified. Each tier has a different rate that the credit card processing company charges the merchant for each transaction. 

Tiered pricing is the different rates applied to merchants based on their average monthly processing volume. Tiered pricing merchant accounts allow you to choose from three or more tiers with corresponding card swipe fees: the higher your average monthly volume, the lower your rate for each interchange category. 


How Does It Work? 

Tiered pricing is a strategy used to set a price per unit within a range. Tiered pricing works by lowering the price per unit after each quantity within a tier has been sold. It applies to merchants who process a large volume of transactions in which processing costs are reduced with higher volumes. 

A tiered pricing merchant account usually charges a fixed rate for each transaction, which means that the more transactions you process, the more money it costs. If you have a high monthly credit card processing volume, which makes up a large portion of your business, then tiered pricing could save you money. 

This is how Tiered Pricing Merchant Accounts work: 

What Do You Need To Know About Tiered Pricing Merchant Accounts for Credit Cards? 

Merchant account providers use different pricing models, and one of the most common is tiered pricing. This model offers a few different pricing levels for the merchant to choose from, each with its own set of benefits and drawbacks. 

These are the things you need to know about tiered pricing merchant accounts for credit cards: 

Any Alternatives 

These are other types of merchant accounts to process credit cards: 




This account is a great way to get the most out of your business while ensuring you have all the options available. The different tiers give merchants more flexibility and control over their payment processing needs, which is good for both them and their customers because it ensures they'll always be able to find an account that meets their requirements. 

One of the most important decisions you'll make when setting up your new business is which type of credit card merchant account to get. There are many options for tiered pricing, but one thing remains true across every option available. You need a reliable and trusted partner who can provide you with knowledgeable customer service. BNG Payments can help understand what type of account would be best for your business needs. We also offer competitive rates to never pay too much in fees. Contact us today for more information. 

Master Your Credit Card Merchant Account With Flat Rate Pricing

A credit card merchant account is a contract between you and your bank that allows you to accept credit cards for goods or services. It's essential to have a merchant account that offers flat-rate pricing, which means you're charged a single, fixed percentage fee for every transaction. This type of pricing is ideal for small businesses because it eliminates the need to keep track of different rates for each credit card type. 

With a flat-rate pricing merchant account, you are charged a single fee for each transaction, regardless of the amount. This makes budgeting much easier, as you know what your costs will be from month to month. This blog post will discuss how flat rates can help save your business money and time. 

What Is a Flat Rate Account? 

It is a pricing model for credit card processing becoming increasingly popular. The most common type of this processing is when a company charges its clients a fixed volume percentage. For example, a company might charge a fixed rate for each sale, regardless of size or value. 

A flat-rate pricing model for credit card processing may be one of the best options for small businesses. This type of flat rate usually applies to businesses with lower processing volumes. The fee is a set amount that the business pays each month, regardless of transactions. This pricing model is becoming popular because it is predictable and easy to understand. The transaction fees are affordable and straightforward, making it easy to understand your merchant account statement each month. 

Is Flat Fee Processing a Good Expenditure? 

The merchant account for credit cards is one of the best tools a business can use to improve cash flow and keep expenses low. This type of processing charges a fixed fee per transaction, regardless of the amount. For small businesses that process fewer transactions each month, this can be a great way to reduce costs. 

When looking for a way to reduce your credit card processing expenses and save money on your merchant account, be sure to ask about flat-rate pricing. This type of processing offers a fixed fee per transaction, regardless of the amount. This can be a great way to save money for businesses that process a lower number of transactions each month. Just be sure to ask about any additional fees. 

What Are the Advantages of a Flat Rate Account? 

This merchant account can provide several advantages for businesses that process credit cards. The benefits of flat-rate pricing are that you pay one set monthly fee for the entire account, regardless of how many transactions occur. This means that there is no per-transaction or percentage-based charge like most traditional merchant accounts. You also have access to more tools for budgeting with easier reconciliation processes and more predictable monthly costs. 

Some of the key benefits include: 

What Does A Flat Rate Account Cost? 

Understanding what you will be paying for your account is the first step towards meeting all of your business needs. The cost of a flat-rate merchant account can vary, but there are a few things that you should know before signing up for one. 

The first thing to look at is the monthly fee and any transaction fees, as this will be what you regularly pay every month. On top of the monthly and transaction costs associated with your account, there may also be some additional charges that you need to pay for specific services or transactions on a per-use basis. You know exactly how much it will cost to process credit cards each month with this account. This can help with budgeting and forecasting expenses. 


If you want to maximize your profits and have a simplified credit card processing system, then consider a flat-rate pricing merchant account for credit cards. With this type of system, you pay a set percentage fee every time you process a transaction. Your monthly processing fees will usually be lower than an interchange-plus model, which will allow more flexibility in the long run. 

When looking for a credit card processing solution, it's essential to consider all of your options. With these providers, merchants receive simple credit card processing needs. With this pricing, you can get the best rates in the industry without worrying about surprises down the road. I hope this article has helped you understand the basics of flat-rate pricing and how it can benefit your business. 


Average Credit Card Processing Fees in 2022

A crucial part of achieving maximum profit in a small business is minimizing expenses, and one cost component to keep a particularly sharp eye on is credit card transaction fees. The amount you pay to each company involved in a credit card transaction and how you take payments directly affect how much you spend. 

This article reviews the average credit card processing fees for businesses in 2022 and what factors determine your rates. 

Average Credit Card Processing Fees In 2022

A credit card transaction fee is a percentage per transaction and a flat fee per transaction. The current average is 2.65% plus $0.10. Prices will vary depending on the entities involved, the pricing model you choose, and other surrounding factors (covered below). As a general overview, the following is the price range per credit card company listed from lowest to highest:   

Each company has a per-transaction flat fee ranging from $0.05 to $0.10 except for American Express, which charges $0.10. 

Understanding Fees for Each Service  

The fees you pay encompass include each entities cost involved in each transaction: 

Interchange fees are the charges from the card-issuing bank—the bank shown on MasterCard and Visa credit cards. Not all credit cards have secondary banks. American Express and Discover work as their own banks. 

The interchange fee is by far the highest amount you pay because it covers credit card risk, encompassing nearly the entirety of the costs.   

Assessment fees are small percentage fees for using the credit card company’s network that sends and receives payment requests. Fees range from 0.12% to 0.15%. 

Markup fees are costs for using a payment processor to send and receive payment authorizations to and from your business, the card-issuing bank, and the merchant account. 

Merchant acquiring bank fees are for the merchant bank account where the credit card payments go before landing in your business account. This fee most often appears as monthly or annual charges and varies by the bank and services you choose. 

How Can You Reduce Your Credit Card Transaction Fees?

The following are ways to save money or keep costs to a minimum: 

Limit the Cards you Offer 

American Express and Discover charge high fees, so some businesses choose not to honor themRememberthis decision will restrict your chances of a sale, so carefully weigh this option. 

Choose a Pricing Model

You can choose from three pricing options: 

This model breaks out each cost in a credit card transaction in detail in the form of a percentage and per-fee transaction by each type of card. You gain a clear understanding of costs for each transaction. Generally speaking, you could experience the most cost savings with this option if your business experiences a high frequency of sales. 


This option is a flat fee for each transaction. This option provides a predictable cost per transaction that is particularly helpful for budgeting. This option most benefits businesses that have a low or medium frequency of sales.   


This option categorizes purchases into different pricing tiers. If you and your customer complete a sale in a low-cost tier, you pay lower than average pricing. Keep in mind that a high tier will work against you. For example, airline mileage cards often come at a higher rate. 

Negotiate with Your Merchant Account Provider

Accepting credit card payments requires a merchant account to receive payments and transfer the funds into your general business bank account, and this type of account can require fees. 

You will save most by opening a merchant account at a bank, and your life will be easier if the merchant account bank and business bank are the same. Still, it is a good idea to shop for different banks to find the lowest rate or suitable combination of pricing and service benefits you need. You can use the information to negotiate a lower rate with your current bank. 

Bank merchant accounts can be difficult and time-consuming to set up because of the amount of information required, so many small businesses enlist the help of a third-party payment processor that offers a merchant account with a faster and easier setup. On average, you will pay more for this service than through a bank.   

Negotiate with Your Payment Processor 

Payment processors do more than offer a merchant account, and their roles are critical. These companies send and receive payment requests and approvals between the customer’s card issuing bank, your terminal, and your merchant account. Any approvals or denials during a purchase are thanks to your payment processor. 

Though some banks may offer processing services, most use a third-party processor, and in either case, this service requires a fee. Like merchant banks, each processor varies in its services and fees, which is why shopping around can uncover savings. 

Other Factors that Influence Your Rate

Business history: If you have a history of unreliable payments, you will pay higher rates. 

Merchant category code (MCC): This code categorizes the goods and services your business sells according to their risks. Note, not all business types have an MCC. 

Card-Present vs. Card-Not-Present Transactions: The way you place a customer’s order can determine your rates. If you are a brick-and-mortar business, you will save most by running card-present transactions with the customer in front of you and manually swiping the card because this is considered low risk of credit card theft and disputes. 

If you are an online business, you can keep pricing down by using a payment gateway to create a more secure connection during internet transactions. 

Debit Cards vs. Credit Cards: Debit cards carry less risk because the funds are confirmed as available in a customer’s bank account.    

Transaction Size: The larger the transaction, the greater the risk and the higher the rate. 

Not sure what is right for your business? Check With Your Merchant Services Provider and Processor

BNG Payments is both a processor and merchant services provider. With deep experience in the payments industry and working with small businesses, we can help you determine the services and rates that work best for your business to maximize profits. Contact BNG Payments to get started. 

What is Interchange-Plus Pricing for Credit Card Processing?

Interchange-plus pricing is a type of credit card processing pricing that helps small business owners understand the costs of processing credit cards. Having a clear understanding of costs from all credit card associations and your credit card processor helps business owners avoid paying unnecessary fees or processing more than they need. 

But interchange-plus pricing isn’t the only pricing model, and it may not be right for you. There is no one-size-fits-all model when choosing a credit card processing pricing structure. The best option for your business will depend on several factors, such as the average ticket amount, processing volume, and interchange rates. It will also depend on the pricing structure offered by the merchant account provider and your processor.  

This article looks at the interchange-plus pricing model and its differences from other common pricing models. The good news is, no matter which option you choose, all models work for all types of credit cards, from basic credit cards to business cards/corporate cards, rewards cards, and even debit cards. 

What Is Interchange-Plus Pricing For Credit Card Processing?

Interchange-plus pricing is a credit card processing price structure that separates the components of processing expenses, allowing for transparent reporting and interchange optimization, which frequently results in cheaper costs than alternative pricing structures, such as tiered or bundled.  

When a business is billed via interchange-plus pricing, they are charged for the actual interchange cost incurred on each credit card transaction based on the card type, a per-transaction fee from the credit card processor, and an annual fee. Business owners get a clear picture of the percentage markup for interchange fees (bank card association fees) from all card networks and detailed information, such as the charges for each type of card presence (in-store or card-not-present transactions)—even membership pricing.  

This pricing is favorable to other types of pricing models because it eliminates ambiguity about credit card processing fees. You can do a full card processing cost analysis with a clear view into an often murky and expensive aspect of business. 

In addition, interchange-plus pricing is beneficial for businesses that process a high number of credit card transactions because it allows business owners to negotiate better rates with their payment processor. 

By understanding interchange-plus pricing, you can make more informed decisions about processing payments for your business. Still, it is crucial to understand other credit card processing pricing structures. Again, your needs may require a different option.  

Is There an Alternative to Interchange-Plus Pricing?

There are two pricing models to choose from: flat-rate pricing and tiered pricing.  

Interchange-Plus Pricing vs. Flat Rate or Blended Pricing

With flat-rate pricing, merchants pay a flat monthly fee for every aspect of credit card processing, including transaction fees and equipment costs. This pricing is beneficial because it offers a clear understanding of the credit card processing cost for each transaction you run. 

For a business with a low to medium volume of credit card transactions and debit card transactions, flat pricing may be the best option thanks to lower monthly fees than interchange-plus. They still provide some transparency into the cost of each transaction processed. 

However, for businesses with a high volume of credit card transactionsinterchange-plus earns more significant savings because the processor markup (the amount charged on top of interchange and assessment fees) tends to be lower for larger processors. Businesses that process a high number of transactions have more leverage when negotiating rates with their payment processor. A payment processor knows if it doesn’t offer a competitive rate, a business will go elsewhere. 

Interchange-Plus vs. Tiered Pricing

Interchange-plus is similar to tiered pricing, but it’s a separate pricing structure. Interchange-plus looks at the different interchange rates for all credit cards based on merchant category code (MCC) and creates categories of its own before adding additional fees. 

A tiered card processing pricing model is different in that it typically consists of three tiers—qualified, mid-qualified and non-qualified. Transactions that fall into a qualified interchange category will have the lowest processing charge, while those that fall into the non-qualified tier will have the highest. 

To ensure this option financially works for your business, carefully review the tiered pricing models. Scrutinize hidden costs at each card level because this pricing model is one of the more popular card schemes for collecting higher fees. 

Interchange-plus pricing is a much more transparent way of looking at credit card processing rates, as it’s easy to see where each transaction falls within the pricing structure. It usually results in more predictable credit card processing costs for merchants.  

As a New Business, Fees, Credit Cards and Debit Cards are As Important As Your Business Cards

When first starting your business, achieving profit as soon as possible is the name of the game, and the fee option you choose for credit cards is one of the first decisions to tackle. Each payment model has its benefits and drawbacks, so it’s essential to understand what each entails before making a decision.  

In summary, here are the benefits of each option:  

Advantages of Interchange Pricing 

Advantages of Flat Rate Pricing  

Advantages of Blended Tiered Pricing  

BNG Payments

As a small business owner, every decision you make to achieve profits is integral, including the type of card payment you’ll accept and pricing structure. BNG Payments has extensive experience helping small and medium-sized businesses and merchants accept credit card and debit card sales. We can help you settle on an effective rate and processing strategy. 

We know the credit card processing industry and can provide you with a competitive rate and excellent customer service.  

Contact BNG Payments to get started.

How Credit Card Transaction Processing Works

Each business day, 108 million credit card payments process nationwide, making up 38% of all transactions. If you have an online business, your percentage is most likely higher. You make more money by honoring credit cards than if you don’t. And with the benefit of instant credit for purchasing, these cards lead to higher per-order transactions, helping to compensate for credit card processing fees.

With the continued high demand for credit card purchasing from customers and merchants, today’s technology for merchant service providers makes it even easier for businesses to connect to merchant banks and credit card networks via touchless chip cards and mobile payment systems.

As a small business owner, you may wonder how credit card purchases are processed. What exactly goes into the transaction process? This article lays out each entity and each step in the process.

Understanding Credit Card Processing: How Credit Card Transaction Processing Works

Every time a customer swipes a credit card, several behind-the-scenes actions occur within seconds. Processing involves several parties: the cardholder, the merchant, the acquiring bank, the issuing bank, and the card network. Each party connects in coordinated steps, and the processing is complete the moment the transaction reads approved or declined.

A Step-by-Step Guide to How Credit Card Processing Works 

The entire process for credit card processing is a multi-step process between numerous entities. Still, approval for a customer order happens in a matter of seconds. All in all, the entire settlement process takes a few days. 

These are the stages and key parties involved in credit card processing:  

Stage 1: It All Starts with the Cardholder

A cardholder is an individual or business with whom the credit card is connected. The individual or business name shows on the card. 

Today, cardholder purchases are made through stationary or mobile payment terminals or online systems for added convenience to cardholders. Still, just as it has been since cards were first offered, the cardholder is expected to place the orders personally and is even required to show ID when buying in person. The credit card companies maintain contracts with cardholders under their name. 

Customers Place Orders with Merchants via a Credit Card Machine or Credit Card Software 

What are the methods for processing credit cards 

Today’s technologies help merchants place orders anywhere they and their customers are located to improve the customer experience. Orders can be placed on terminals by brick-and-mortar merchants using a credit card reader or any number of touchless chip card systems. Cards can also run through a mobile device, online on the merchant website or through an eCommerce merchant site. 

These systems connect to merchant account software for immediate readings on payments, stock changes, and customer histories. A merchant services provider can help set up needed hardware and software and even aid in setting up merchant accounts at merchant banks.  

Payment Goes Through a Payments Gateway

When a customer places an order, the credit card terminal dials up a connection to the credit card gateway. This secure remote computer server lets credit card terminals log on and start a credit card transaction session with the credit card issuer.

The Payment Request is Sent to Your Credit Card Processing Company or Cardholder Bank

With the help of the gateway, the payment request is received by an acquiring bank or a payment processor. 

payment processor is an institution in charge of sending the payment request and feedback to the credit card network and your payment terminal. Any approvals or denial information is a direct result of the payment processor.  

An acquiring bank is a bank that houses your merchant bank account, which is the account used for sending and receiving credit card payments to your business bank account. This account also handles any customer service-related issues regarding card acceptance. In some cases, the acquiring bank acts as the processor. 

Merchants must have an acquiring bank account to receive credit card funds—it can be a bank account at the merchant’s business bank, another bank, or a third-party merchant account 

Communication is Sent to the Card Associations (such as Visa or MasterCard)

The processor (or acquiring bank acting as the processor) sends the fund request to the credit card association, which forwards the request to the credit card’s bank to authorize payment. 

Card Associations (Visa, MasterCard, American Express, Discover) are electronic networks/clearinghouses in charge of communicating between the merchant and credit card banks. It also has other functions like maintaining the networks and offering guidelines for customersmerchants, and financial institutions. They also handle arbitration and overall governance and oversee interchange fees, channel requests, denials, and funds between the banks. In short, each network is an electronic highway used to connect banks and approve or deny funds transfers. 

When the card association receives the communication request from a processor, it forwards it to the issuing bank. What is an issuing bank? 

The Issuing Bank Checks Credit Limits, Funds, and Account Standing 

The issuing bank is not the customer’s personal bank account; rather, it’s the bank that offers credit for the funds. The bank entity, also called the credit card company, is indicated on the card.  

This point in the buying process is the authorization stage. The issuing bank checks that the customer’s account is in good standing, that they have sufficient funds for the purchase and won’t exceed the credit limit, and that payments to the account are current. If all is approved, the bank sends back an approval code through the card association network to the processor and the terminal, stating approval for electronic fund transfers. The same process follows for denials.    

The Credit Card Clearing Stage/Settlement Stage

With an approval code from the processor and a signature from the customer (if a purchase is made in person), the customer’s role in the transaction is complete. All that’s left is for the merchant to settle the payment. At this stage, the merchant sends a “batch” request to the processor. A batch isn’t just one charge, but a group or “batch” of credit card approvals. Typically, a merchant sends one batch per day. Batches can be sent more often, but merchants are charged for each batch submission. 

The processor reconciles the authorizations, sends each batch through the card association networks, and deposits the funds into the acquiring account minus the processing fees of the processor and the card association. The funds are then moved from the acquiring bank and into the merchant business account. Behind the scenes, the issuing bank deposits funds into the cardholder bank. The total movement and authentication stage takes a few days. 

Credit Card Fees: How Much Does Credit Card Processing Cost? 

The fees that merchants pay are a blend of interchange fees from the card issuer (the card’s bank) and credit card processing fees—a markup over interchange fees by the acquiring bank and payment processor. The total price varies based on the association network, the type of card, and the merchant code of the business corresponding to the type of goods and services the business offers. 

Other cost factors come into play as well for business owners. The processing method determines the interchange fee. For instance, an online transaction is more expensive than an in-person transaction due to increased risk. Other fees include late fees, annual membership fees, cash advance fees, and returned payment fees. It’s’ important to note that merchants, as well as customers, can be charged for a customer’s insufficient funds. 

Each entity in the payment process typically charges a percentage per transaction plus a flat fee. When factoring in all interchange rates and processing rates, the percentage ranges from 2.8% to 4.3%.   

How to Set Up Credit Card Processing through a Merchant Services Provider

Credit card processing doesn’t have to be complicated. Work with a partner, like BNG Payments, who will guide you through the process. Don’t be afraid to shop around, especially when considering a merchant services provider. Keep a sharp eye on the contracts. Some providers organize fees in ways that benefit them most in the end.  

BNG Payments offers competitive rates, clear and understandable contracts and excellent, U.S.-based customer service. Contact us to get started


How to Utilize Cloud Computing with your Point-of-Sale System

All the business benefits of utilizing a point-of-sale (POSsystem multiply when combined with the capabilities and opportunities of cloud computing. This additional software ability can maximize the effectiveness of a POS system for a business and contribute many positive solutions of its own. Customers, business owners, and employees alike will appreciate the features that make cloud computing systems better, faster, and more robust.  

What is Cloud Computing Software?

The cloud is an online-based data storage software thats secure and accessible from anywhere, at any time. The cloud allows for data to be stored, accessed, and analyzed within an online platform, offering more flexibility and options for users. A system or device that utilizes cloud computing provides a way to cut the cord from hardware storage solutions and offers a range of other features that business owners can apply.  

Cloud-Based POS System

A POS system based on cloud computing software abilities opens the door for users with multiple storefronts, both in-person and online, to compile essential data on transactions, inventory, labor, productivity, and much more all in one secure, accessible place. The software analytics of a cloud POS system can develop valuable reports and data insights for business owners to use for informed decision-making.  

Benefits of a Cloud-Based POS System 

For a company that also utilizes cloud computing, a POS system can combine these features with the many helpful attributes of cloud computing software.  


Hardware storage system restraints break down with cloud-based POS computing systems. By storing all data and information in an online cloud center, staff can view insights and reports from any device at any time.  

Cloud-based reports also allow for convenient data and report sharing with approved members of the business or outside sources. Instead of downloading needed information from a hard drive or device, cloud computing allows for easily gated access to specific data or sharing of files when needed.  

Convenient Storage Location

Keeping data straight and organized when a business has multiple locations can be a challenge for business owners. Whether a business has a few locations around an area or even a solid online sales presence, having all the data and insights a POS system can automatically collect stored in one place makes analyzing and using data insights so much easier. Streamlining the data collection process saves both time and money for companies as they grow and move toward increased sales and profits.  


Data and information are some of the greatest assets a business can have, but they can also be challenging to protect. With the rapid growth of cybercrime and online hackers, security must be a top priority. In addition to the threat of cyber theft, data can also fall victim to failed backups and crashes that come with a hardware storage system.  

Safety and security are significant benefits of cloud computing services because of the internet-based location. Since the service doesn’t have a hardware element to store information, your data is safeguarded from hardware crashes or physical damage.  

Cloud computing services’ online nature also provides access to integrated cyber safety applications. Cloud services typically store data over a range of servers, keeping information safer from system failure. Cloud services also typically provide cyber safety measures to counteract threats to your information.  

Cost Savings

There’s a reason we’re no longer storing information on floppy disks or bulky hard drives. There’s a better way now! Businesses could still be struggling with outdated devices or systems that constantly need updates. These updates can take serious time, keeping your system from operating while they download. As these software systems become more advanced, they can require newer hardware to keep running storage systems and collecting POS data. These constant updates start to add up on the budget sheet over time.  

The online nature of cloud computing with a POS system means freedom from costly updates and constant software uploads. Cloud systems can automatically update with the newest technology without costing business owners time and money with each new advancement.  

POS System Updates

In addition to the many software advantages of a cloud computing POS system, this type of setup also allows for additional capabilities and more versatile options for devices on the front end of a transaction. This process can allow more freedom with transactions on devices. Instead of stationary hardware systems that take up space on a counter and typically come with a list of limitations, cloud computing POS software opens up the possibility for mobile devices, tablets, and modern touch screen monitors. Fewer limitations mean employees can be mobile within a store and still perform transactions and clear up the look of a front counter area.  

More than just an esthetic upgrade, POS mobility makes outside sales a real possibility for some businesses. Staff may take the POS transaction device to a trade show or a sales event to broaden the scope of sales and gain new customers in various settings.  

Utilize Cloud Computing

Both POS systems and cloud computing software come with a range of benefits for business owners to utilize. When the capabilities of both systems are combined, the possibilities are endless for growth, productivity, and revenue.  

Some POS systems run seamlessly with cloud computing software—which is the fastest and easiest way to get all the benefits of a cloud computing POS system for a business. Setup is quick, and the services are typically available immediately.  

Suppose a business already has a POS system in place and wants to gain the advantages of cloud computing. In that case, many systems can be equipped to run cloud computing and storage software with the existing hardware system.  

Whether setting up a new system or upgrading an existing one, an investment in a cloud-based POS system can enhance business productivity and security. 

BNG Point-of-Sale

BNG Point-of-Sale has solutions to improve your bottom line. With a full selection of POS systems for various businesses, you’ll find the right tool to grow your business with the personalized support you need.  Connect with us to learn more.