Why Tiered Pricing Hurts Credit Card Processing

Tiered pricing may look simple on the surface, but it often leads to higher costs and confusion—especially for those using a credit card merchant account. Transactions are grouped as qualified, mid-qualified, or non-qualified, but most merchants don’t know how these categories are assigned.

This model hides the real credit card processing fees behind bundled rates. Unlike interchange-plus, you can’t see the markup or track how much you're paying over the base network cost. For merchants in sectors like travel, CBD, or adult content, using a high-risk merchant account, most transactions fall under higher-priced tiers.

Worse, processors can shift transactions between tiers without notice, impacting profitability. Tiered pricing rarely rewards growth either—volume discounts are often missing, making it a bad choice for scaling merchants.

Switching to transparent models like interchange-plus or flat-rate pricing gives you more control. If you're ready to move away from unclear pricing, partner with WebPays for smarter solutions.

Read the whole blog to know more.

 




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