Gone are the days when people used to pay for all their transactions through cash. Customers now prefer cashless transactions as they do not have to carry cash and also because it reduces the risk of losing money due to theft. Customers are provided credit and debit cards by the respective banks and they can make payment with the money that is already available in their bank accounts. This makes it important for merchants to utilize the merchant services reseller program so that they do not end up losing customers.

How does flat rate policy work?

One of the famous pricing policies for merchant credit card services is a flat rate. It is charged on every transaction that is made by the customers through a credit card. The merchants who are connected with businesses that provide flat rate services are required to pay only a certain amount of money. They are charged only a fixed percentage.

Percentage of flat rate

Common flat rates vary from 2.75 to 2.9%for all the swiped transactions. Some companies also offer a flat rate of 20 to 30% per transaction.Many times,businessmen face problems in calculating the exact transaction amount that they are supposed to pay, but with flat rate pricing, this becomes easy as there is only one fixed rate to be paid. It becomes easy for businessmen to calculate and they do not have to part with a large sum of money from their hard-earned profits.

Benefits of flat rate policy

Flat rate policy provides certain benefits to Merchant Who are willing to take up the facility and start a relationship with the company. Some of the benefits are as follows:

Increase productivity

It increases productivity.Merchants can now focus on productivity as they do not need to take tension about making payments for card transactions made by their customers. When merchants see that there is a chance of increasing their profit margin and not losing their profits on paying unnecessary fees, they are encouraged to increase their productivity and get the best results with their hard work and determination. An increase in productivity leads to the growth of the business. This is one of the reasons why merchants prefer flat rate policy rather than any other monetary policy offered by merchant account companies.

The transparency

There is transparency in whatever the merchant is paying to the company. The amount that is to be paid is determined by the company and is stated in the contract. Flat rate policy is transparent because Merchants are not required to pay anything extra than what is written in the contracts.Many a time’s merchants face problems while using other monetary policies.They calculate a certain amount that is to be paid to the company, but when they actually go to make the payments, they are in a shock as they are introduced to a totally different amount. This is why many merchants prefer flat rate monetary policy as it is much more transparent and easy.


Flat rate policy has certain Advantages and disadvantages, but if it is used correctly it main help in attracting new customers.