Why Your Processing Rate Isn’t the Whole Story
It’s easy to get drawn in by a great-looking rate—especially when it comes from a processor that isn’t being upfront about the full picture. Some providers highlight only the most favorable scenarios, bury extra fees in the fine print or promote pricing models that sound simpler than they actually are.
These tactics are what we call pricing pitfalls: misleading or incomplete information that can quietly cost your business more than you planned.
At Basys, we take a different approach. We believe transparency isn’t a bonus—it’s a baseline. From your first quote to ongoing reviews, we make sure you understand what you’re paying for and how to keep your costs in check.
Speak the Language: A Quick Guide to Processing Terms
Before we jump in, here are a few terms to help you decode your processing statement:
- Effective Rate – The total percentage of your gross processing volume paid in fees.
- Discount Rate – A percentage-based fee tied to your total processed volume (but not your only fee).
- Interchange – The base cost set by card brands, which varies based on card type and how you accept payments.
- Surcharging – Charging customers a fee for paying by card—regulated and often misunderstood.
- Gateway, PCI & Equipment Fees – These are often billed separately from your processing fees, making them easy to overlook. While your quoted “rate” might sound low, these charges can significantly increase your overall costs if not clearly disclosed.
Pitfall 2: Oversimplifying Interchange Rates
🚩 The red flag: A quoted rate based on the best-case scenario (like a card-present debit transaction) that doesn’t reflect how your business actually accepts payments.
🤔 What they aren’t telling you: Interchange rates vary depending on card type, transaction method and more.
✅ How Basys helps: We educate you on the most cost-effective way to process based on how your business operates—so you’re not surprised later.
Pitfall 3: Confusing or Misleading Terminology
🚩 The red flag: “Your discount rate is 1.5%”—which sounds like you’re saving, when it’s actually just a fee.
🤔 What they aren’t telling you: A full explanation of what you’re paying and why.
✅ How Basys helps: Our team breaks it down in plain English. We don’t use jargon to confuse you—we use it to empower you.
Pitfall 4: Equipment Lease Traps
🚩 The red flag: “Free” equipment—until you try to leave and discover you’re locked into a multi-year lease or face steep cancellation penalties.
🤔 What they aren’t telling you: Disclosure about how equipment costs tie into your contract.
✅ How Basys helps: Our rental program includes a simple 12-month initial term and a small $99 cancellation fee. After that, it switches to a flexible month-to-month structure. Prefer to own your equipment? No problem. No hidden traps.
Pitfall 5: Low Introductory Rates… Followed by Steep Increases
🚩 The red flag: A great deal that suddenly disappears after a few months.
🤔 What they aren’t telling you: Long-term pricing stability.
✅ How Basys helps: We only apply targeted price increases (if needed), not sweeping, across-the-board hikes. Many of our customers stay with us for 3, 5, even 10+ years—and we plan our pricing with that kind of partnership in mind.
Pitfall 6: Surcharging Misconceptions
🚩 The red flag: “You can pass on all your fees to customers with surcharging!”
🤔 What they aren’t telling you: Card brand rules, state regulations, debit card restrictions and potential fines for noncompliance.
✅ How Basys helps: We offer surcharging options, but we’ll first help you understand whether it’s right for your business—and how to implement it correctly and compliantly.
Pitfall 7: Lack of Visibility After You Sign
🚩 The red flag: You don’t know what you’re being charged—or whether you’re getting what was promised.
🤔 What they aren’t telling you: A second look after onboarding.
✅ How Basys helps: We check in at 90 days to confirm your effective rate aligns with expectations. If something looks off, we’ll review your account and recommend adjustments—so you’re never left in the dark.
Final Thought: Know What You’re Really Paying
Your rate is just one piece of the puzzle. Your effective rate—and the structure behind it—can make all the difference.
At Basys, we believe in doing business the right way: with honesty, clarity and a genuine commitment to your long-term success. If you’re ready for a partner who puts transparency first, we’re here to help you process with confidence.
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