How Fair Is Your Approach to Card Fees?

It costs an average of 2-4 percent to process a credit card payment, with much of that cost going to the issuing bank and funding cardholder rewards. To make up for this cost, many government and educational institutions choose to pass on a processing fee when consumers make payments by card.

The conventional approach is to assess this fee as a single, flat-percentage rate for all cards — credit and debit. This approach is problematic because different card types have different processing costs. For example, it costs much less to accept debit cards than credit cards with ample rewards. Essentially, a flat-rate service fee forces consumers with a low-cost card to subsidize consumers with a more costly rewards card.

Price Cards at Actual Costs with Intelligent Rate

Intelligent Rate for Government and Education is a payment processing solution built with patent-pending technology from our partner CardX. Intelligent Rate solves the problems that come with a flat-rate fee model by pricing cards at their actual costs.

  • As the consumer types their card information into the payment page, Intelligent Rate calculates the cost of the card the consumer is using in real time.
  • It then automatically prices the service fee in proportion to what each transaction will actually cost.
  • This results in consumers with low-cost cards, such as debit cards and no-frills credit cards, absorbing a lower fee.

Promote Transparency and Fairness

Get ahead of important trends toward improving transparency and fairness in consumer financial transactions. By providing real-time information about savings, Intelligent Rate enables consumers to reduce their service fee by choosing a lower-cost form of payment.

Intelligent Rate Is Only Available In These Merchant Category Codes:

  • MCC 9311 – Tax

  • MCC 9222 – Fines

  • MCC 9211 – Court Costs

  • MCC 9399 – Misc. Gov. Services

  • MCC 8220 – College Tuition

  • MCC 8244 – Business

  • MCC 8249 – Trade Schools

  • MCC 8211 – Elementary and Secondary Schools