Tuesday, December 14, 2010

Credit Card Industry Slang: "Bucket Pricing"

"Bucket Pricing" aka "Tiered Pricing" is a pricing structure commonly used by Merchant Service Providers to simplify interchange* rates while also maximizing profit. In this strategy the more than 300 interchange categories are usually clumped into 3 or 5 tiers. All companies make these distinctions differently however so even if 2 MSPs have the same amount of tiers with the same rates for each tier they may have clumped the 300+ interchange categories into different tiers therefore altering the amount you will end up getting charged at the end of the month.

1 comment:

  1. A credit card is a way of payment. There are many industries offers many so many credit cards.
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