Have you ever slowed down to ask what comprises the cost of accepting a card, better known as the Discount Rate? Why does this cost vary from one transaction to the next? To understand best, I encourage you to step into the shoes of your valued customer, the consumer. The average American carries 4-5 bank issued cards in his or her wallet and utilizes them to finance transactions, expedite the transaction at the point of sale, and in many cases, to take advantage of the benefits these plastic cards give back. The consumer’s choice as to which card to draw from his or her wallet is generally based upon the answer to one key question… “What’s in it for me?” The list of incentives made available to the consumer by the card issuing banks is extensive. Ranging from signup bonuses and teaser introductory rates to cash back incentives and airline miles, consumers receive tremendous benefit from the issuing banks for their day to day purchases. Financing these incentives sounds like the issuing banks’ problem, right? Not exactly. The largest component to PaySimple’s competitive discount rate and merchant account is the cost of Interchange, which we collect from you via our discount rate and pay to the issuing banks, in large part to fund the consumer incentives I’ve mentioned. At the end of the day, there is very little that you can do as a small business owner to reduce your cost of credit card acceptance while continuing to satisfy your customers’ need for choice. Just as you provide a breadth of products and services for your customers to choose from, I would encourage you to provide equal choice to them for their form of payment. The PaySimple Solution accepts all of the major card types and allows for alternative payment methods, such as ACH direct-debit, helping you to minimize your overall cost of payment processing. By allowing your customers to make payment with the credit card or other remittance type of their choosing, you’re increasing their convenience. You will attract new customers to your business, build customer loyalty, and potentially increase your customers’ average purchase amount. The impact on your net revenue growth will likely offset the variance in Interchange expense and yield maximum growth to your enterprise.